Yahoo Finance The Shyft Group Inc (SHYF) Q1 2024 Earnings Call Transcript Highlights: Navigating Challenges ...
Revenue: $197.9 million, down 18.7% from $243.4 million in the prior year quarter.
Net Loss: $4.7 million, or $0.14 per share compared to net income of $1.7 million or $0.05 per share in the previous year.
Adjusted EBITDA: $6.1 million or 3.1% of sales, down from $10.8 million or 4.4% of sales in the first quarter of 2023.
Adjusted Net Loss: $1.4 million.
Adjusted EPS: Decreased to a loss of $0.04 per share.
Free Cash Flow Guidance: Affirmed at $25 million to $35 million for the year.
2024 Sales Outlook: Expected to be in the range of $850 million to $900 million.
2024 Adjusted EBITDA Outlook: Projected to be between $40 million and $50 million.
Release Date: April 25, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: Can you discuss where the strength in order flow is coming from for FES, and what are the expectations for fleet customers for the remainder of this year? A: (Jon Douyard - CFO) The strength in order flow for FES primarily came from utilities and food and beverage sectors, marking a shift from the historical dominance of parcel services. The company anticipates some pickup in parcel service orders by mid-year, although significant activity may not materialize until the third quarter.
Q: Regarding the Blue Arc EV program, is the battery supplier issue resolved, and what are the expectations for production and order flow? A: (John Dunn - President & CEO) The battery from the current supplier, Our Next Energy, is meeting all requirements and performing well. The company is close to finalizing orders and expects to start production by the end of 2024. Discussions with potential customers are ongoing, and the company is optimistic about securing orders soon.
Q: What are the gating items to getting to production for the Blue Arc EV, and what capital investments are planned for this year? A: (Jon Douyard - CFO) The company has already incurred significant capital costs, with some additional tooling needed in the factory. Operational expenses for the Blue Arc EV were $5.5 million this quarter, with a total of $20 million to $25 million expected for the year. The final development and production setup are on track, with no significant step-up in costs anticipated.
Q: Can you provide insights into the strategy for the infrastructure segment of the business? A: (John Dunn - President & CEO) The infrastructure segment continues to see strong demand. The company plans to expand its national footprint, leveraging the success of the new plant in Nashville and replicating this model to grow the business across the country.
Q: How is Shyft Group managing its operational footprint and exploring new expansion opportunities? A: (John Dunn - President & CEO) The company is focusing on utilizing its existing facilities more effectively before considering new sites. This strategy involves flexing additional products into the current footprint to optimize resources and reduce costs.
Q: What macro factors need to align for an uptick in Final Mile vehicle demand? A: (John Dunn - President & CEO) The recovery in Final Mile vehicle demand hinges on major fleet operators resolving their internal strategies and investment plans. There is an inherent need for fleet replacement which should eventually drive demand, positioning Shyft well for when market conditions improve.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
