First Quarter 2024 Earnings Conference Call
April 25, 2024
Forward-Looking Statement
This presentation contains information, including our sales and earnings guidance, all other information provided with respect to our outlook for 2024 and future periods, and other statements concerning our business, strategic position, financial projections, financial strength, future plans, objectives, and the performance of our products and operations that may constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. We intend the forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in those sections. Generally, we have identified such forward-looking statements by using words such as "believe," "expect," "intend," "potential," "future," "may," "will," "should," and similar expressions or by using future dates in connection with any discussion of, among other things, the construction or operation of new or existing facilities, operating performance, trends, events or developments that we expect or anticipate will occur in the future, statements relating to volume changes, share of sales and earnings per share changes, anticipated cost savings, potential capital and operational cash improvements, changes in supply and demand conditions and prices for our products, trade duties and other aspects of trade policy, statements regarding our future strategies, products and innovations, and statements expressing general views about future operating results. However, the absence of these words or similar expressions does not mean that a statement is not forward-looking.Forward-looking statements are not historical facts, but instead represent only the Company's beliefs regarding future events, many of which, by their nature, are inherently uncertain and outside of the Company's control. It is possible that the Company's actual results and financial condition may differ, possibly materially, from the anticipated results and financial condition indicated in these forward-looking statements. Management believes that these forward-looking statements are reasonable as of the time made. However, caution should be taken not to place undue reliance on any such forward-looking statements because such statements speak only as of the date when made. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. In addition, forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from the Company's historical experience and our present expectations or projections. In addition, forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from the Company's historical experience and our present expectations or projections. These risks and uncertainties include, but are not limited to, the risks and uncertainties described in "Item 1A. Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2023, and those described from time to time in our reports filed with the Securities and Exchange Commission (SEC), which are available at www.sec.gov or our website. All forward-looking statements in this presentation are qualified by this paragraph. Investors should not place undue reliance on forward-looking statements as a prediction of actual results. We undertake no obligation to publicly update or revise any forward-looking statements in this presentation, whether as a result of new information, future events, or otherwise.
© THE SHYFT GROUP, INC. | Proprietary & Confidential | 2 |
1Q 2024 Financial Highlights
$198M | $6M |
(19%) decline YoY | 3% of Sales |
Sales | Adjusted EBITDA |
$439M | ($10M) |
7% improvement vs Q4'23 | ($11M) decrease YoY |
Backlog | Free Cash Flow |
- Delivered solid SV adjusted EBITDA margin of 19%
- Achieved sequential growth in consolidated backlog; first sequential order improvement in 2 years for FVS
The Shyft Group's products on display at NTEA Work Truck Week Show
Improved collaboration by our team members to deliver results
© THE SHYFT GROUP, INC. | Proprietary & Confidential | 3 |
1Q 2024 Operational Highlights
OPERATING FRAMEWORK
Review of production processes during Duramag facility visit
Utilimaster Walk-in-Van at NTEA Work Truck Week
- Conducted detailed senior management reviews at key service and truck body facilities
- Executed first 'One Shyft' procurement initiative to consolidate suppliers & drive material savings
- Maintained Blue Arc momentum with targeted second half production
- High level of customer engagement at NTEA Work Truck Week across entire product portfolio
- Customer focused innovation - Announced first Driver Cooling aftermarket order for 5k+ trucks
- Continued to deepen OEM relationships to drive growth - Achieved Ford Pro Upfitter designation
Driving our operating framework to create long-term shareholder value
© THE SHYFT GROUP, INC. | Proprietary & Confidential | 4 |
Blue Arc EV Program Update
Commercial
- Progressing commercial discussions across multiple customers and a range of end-markets
- Positive customer feedback from ride and drives held during NTEA Work Truck Week
Product Development
- Vehicle performing well with Our Next Energy (ONE) battery; working with multiple battery suppliers to mitigate supply chain risk
- Vehicle testing nearing completion with production targeted for late 2024
Blue Arc EV Customer Ride & Drive Event at NTEA Show in Indianapolis
Highly engaged team focused on delivering a world class vehicle
© THE SHYFT GROUP, INC. | Proprietary & Confidential | 5 |
First Quarter 2024 Financial Review and 2024 Outlook
© THE SHYFT GROUP, INC. | Proprietary & Confidential
Shyft Financial Summary - 1Q24
Reported Financials | Adjusted Financials | |
($ million, except EPS) | ($ million, except EPS) |
Sales | |
$243.4 | $197.9 |
(19%) Decrease | |
1Q23 | 1Q24 |
Net Income and EPS
$1.7 |
($4.7) |
1Q23 | 1Q24 | |
EPS | $0.05 | ($0.14) |
Adjusted EBITDA and % of Sales
$10.8 | ||
(44%) Decrease | $6.1 | |
4.4% | 3.1% | |
1Q23 | 1Q24 |
Adjusted Net Income and EPS
$4.3 |
($1.4) |
1Q23 | 1Q24 |
Adj EPS $0.12 | ($0.04) |
Focused on delivering improved results in a challenging operating environment
© THE SHYFT GROUP, INC. | Proprietary & Confidential | 7 |
Segment Results Summary - 1Q24
Sales | Adjusted EBITDA and % of Sales | |
(in millions) | ($ in millions) |
$159.4 | |||
$107.8 | $12.5 | ||
FVS | |||
(32%) Decrease | 7.8% | $0.9 | |
0.9% | |||
1Q23 | 1Q24 | 1Q23 | 1Q24 |
$87.2 | $90.1 |
SV | |
3% Increase | |
1Q23 | 1Q24 |
$13.9 | $17.0 |
15.9% | +23% Increase |
18.8% | |
1Q23 | 1Q24 |
Solid SV performance offset by continued parcel market softness in FVS
© THE SHYFT GROUP, INC. | Proprietary & Confidential | 8 |
2024 Outlook
Revenue | $850 to $900M | • | Progress in 1Q, but remain cautious on timing of parcel market recovery |
~Flat YoY at midpoint | • | No revenue from Blue Arc assumed in outlook | |
Adjusted | $40 to $50M | • | Tightly managing spending |
EBITDA | +13% YoY at midpoint | • | Blue Arc spending of $20 to $25M vs. $33M in 2023 |
Adjusted | $0.28 to $0.51 | • | Assumes share count of ~35M |
EPS | (26%) YoY at midpoint | • | Tax headwind driven by prior year tax benefit |
Free
Cash Flow
$25 to $35M
- ~70% EBITDA conversion
- Continued working capital reduction
- Capex of $20 to $25M
Driving operational rigor to deliver initial 2024 outlook
© THE SHYFT GROUP, INC. | Proprietary & Confidential | 9 |
Why Invest in the Shyft Group?
Attractive End-Markets
Customer Focused
Innovation
Operational Excellence
Financial Strength
Leading positions in last mile delivery
and infrastructure
Solutions focused on our customers and their needs
Leveraging the power of Shyft to return to
historical profitability levels
Ability to generate cash drives flexibility to invest for future growth and return capital
Attractive long-term
value creation
opportunity
© THE SHYFT GROUP, INC. | Proprietary & Confidential
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Shyft Group Inc. published this content on 25 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 April 2024 12:18:09 UTC.