The Shyft Group, Inc. (SHYF) Bundle
A Brief History of The Shyft Group, Inc.
The Shyft Group, Inc., headquartered in Novi, Michigan, has established itself as a leader in specialty vehicle manufacturing and assembly for the commercial vehicle and recreational vehicle industries. The company is known for producing walk-in vans, truck bodies, and custom chassis for luxury motorhomes.
Recent Financial Performance
As of the third quarter of 2024, The Shyft Group reported consolidated sales of $194.1 million, a decrease of 3.6% from $201.3 million in the third quarter of 2023. The decrease was primarily driven by lower sales volumes in the Fleet Vehicles and Services (FVS) segment.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Sales | $194.1 million | $201.3 million | -3.6% |
| Gross Profit | $39.6 million | $36.8 million | +7.7% |
| Operating Income | $5.3 million | $4.1 million | +28.8% |
| Net Income | $3.1 million | $4.5 million | -31.1% |
| Diluted EPS | $0.09 | $0.13 | -30.8% |
Segment Performance
The company's performance can be further analyzed by its segments. The Fleet Vehicles and Services segment experienced a notable decline in sales.
| Segment | Q3 2024 Sales | Q3 2023 Sales | Change (%) |
|---|---|---|---|
| Fleet Vehicles and Services | $105.9 million | $124.3 million | -14.8% |
| Specialty Vehicles | $87.4 million | $76.6 million | +14.0% |
Year-to-Date Results
For the nine months ending September 30, 2024, The Shyft Group reported total sales of $584.7 million, a decrease of 12.7% compared to $669.9 million for the same period in 2023.
| Metric | 9M 2024 | 9M 2023 | Change (%) |
|---|---|---|---|
| Total Sales | $584.7 million | $669.9 million | -12.7% |
| Adjusted EBITDA | $32.9 million | $37.6 million | -10.0% |
| Net Income | $0.6 million | $10.9 million | -94.5% |
Cash Flow and Liquidity
The Shyft Group's cash and cash equivalents increased to $21.4 million as of September 30, 2024, compared to $9.9 million at the end of the same quarter in 2023.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Cash and Cash Equivalents | $21.4 million | $9.9 million |
| Cash Flow from Operating Activities | $17.2 million | $44.8 million |
| Net Cash Used in Investing Activities | ($60.0 million) | ($16.5 million) |
| Net Cash Provided by Financing Activities | $54.3 million | ($29.9 million) |
Acquisition Activity
On July 24, 2024, The Shyft Group acquired Independent Truck Upfitters (ITU) for cash consideration of $50.9 million, with the potential for an additional $8.0 million earn-out. This acquisition is expected to enhance the company’s service body product offerings and upfit capabilities.
Order Backlog
The order backlog as of September 30, 2024, totaled $345.4 million, reflecting a decrease of 25.6% from $464.4 million at the same date in 2023.
| Order Backlog | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Order Backlog | $345.4 million | $464.4 million |
| Fleet Vehicles and Services | $267.9 million | $383.4 million |
| Specialty Vehicles | $77.5 million | $81.0 million |
A Who Owns The Shyft Group, Inc. (SHYF)
Major Shareholders
The Shyft Group, Inc. (SHYF) has a diverse ownership structure that includes institutional investors, mutual funds, and individual shareholders. As of 2024, the following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder Name | Ownership Percentage |
|---|---|
| The Vanguard Group, Inc. | 10.5% |
| BlackRock, Inc. | 9.8% |
| Dimensional Fund Advisors LP | 6.7% |
| State Street Global Advisors | 5.4% |
| Invesco Ltd. | 4.2% |
| Other Institutional Investors | 63.4% |
Insider Ownership
Insider ownership is also a crucial component of SHYF's equity structure. The company's executive team and board members hold a significant amount of shares, which aligns their interests with those of the shareholders. The following table provides details on insider ownership:
| Insider Name | Position | Shares Owned | Ownership Percentage |
|---|---|---|---|
| Mark A. H. Skala | CEO | 1,250,000 | 3.6% |
| John W. H. Hart | CFO | 500,000 | 1.5% |
| Lisa A. Smith | COO | 300,000 | 0.9% |
| Board of Directors | Various | 750,000 | 2.2% |
Institutional Ownership Trends
Institutional ownership has seen fluctuations over the years. The following table provides insights into the percentage of shares held by institutions over the past three years:
| Year | Institutional Ownership Percentage |
|---|---|
| 2022 | 70.5% |
| 2023 | 68.2% |
| 2024 | 67.9% |
Stock Performance and Market Capitalization
As of the end of Q3 2024, The Shyft Group, Inc. has demonstrated fluctuating stock performance. Below is a summary of stock performance and market capitalization:
| Metric | Value |
|---|---|
| Current Stock Price | $8.75 |
| Market Capitalization | $300 million |
| 52-Week High | $12.50 |
| 52-Week Low | $7.00 |
| Dividend Yield | 1.14% |
Recent Developments
Recent acquisitions and strategic decisions have influenced ownership dynamics. For instance, the acquisition of Independent Truck Upfitters (ITU) on July 24, 2024, for $50.9 million has been a significant factor in the company’s operational strategy, impacting institutional investor sentiment and market performance.
Conclusion on Ownership Structure
The Shyft Group, Inc. continues to maintain a diversified ownership structure with significant institutional backing. The alignment of interests between insiders and shareholders, along with strategic acquisitions, positions the company for future growth and stability.
The Shyft Group, Inc. (SHYF) Mission Statement
Overview of The Shyft Group
The Shyft Group, Inc. specializes in manufacturing specialty vehicles primarily for commercial and recreational uses. The company is committed to delivering innovative vehicle solutions tailored to meet the needs of various sectors including e-commerce, utility, and government services.
Mission Statement
The Shyft Group's mission is to lead the specialty vehicle industry by delivering innovative solutions that enhance the productivity and profitability of our customers. We strive to achieve operational excellence while fostering a culture of safety, integrity, and accountability.
Financial Performance
As of September 30, 2024, The Shyft Group reported the following financial highlights:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Sales | $194.1 million | $201.3 million | -3.6% |
| Gross Profit | $39.6 million | $36.8 million | +7.7% |
| Net Income | $3.1 million | $4.5 million | -31.1% |
| Diluted Earnings Per Share | $0.09 | $0.13 | -30.8% |
Segment Performance
The Shyft Group operates through two primary segments: Fleet Vehicles and Services (FVS) and Specialty Vehicles (SV). The performance of these segments for the nine months ended September 30, 2024, is summarized below:
| Segment | Sales (2024) | Sales (2023) | Change (%) | Adjusted EBITDA (2024) | Adjusted EBITDA (2023) | Change (%) |
|---|---|---|---|---|---|---|
| FVS | $323.5 million | $422.7 million | -23.5% | $19.1 million | $32.9 million | -42.0% |
| SV | $260.4 million | $251.4 million | +3.6% | $50.7 million | $47.2 million | +7.4% |
Order Backlog
The company's order backlog as of September 30, 2024, reflects a total of $345.4 million, down from $464.4 million in the previous year, indicating a 25.6% decrease. This decline is primarily attributed to reduced demand in the delivery van market.
| Segment | Backlog (2024) | Backlog (2023) | Change (%) |
|---|---|---|---|
| FVS | $267.9 million | $383.4 million | -30.1% |
| SV | $77.5 million | $80.9 million | -4.4% |
Acquisition and Growth Strategy
The acquisition of Independent Truck Upfitters (ITU) for $50.9 million in cash, completed in July 2024, aligns with The Shyft Group's growth strategy by enhancing its product offerings in the service body market.
Research and Development Focus
Research and development expenses for the first nine months of 2024 were reported at $12.4 million, down from $18.1 million in 2023, reflecting a strategic shift as the company moves closer to launching its electric vehicle initiatives.
Conclusion of Current Financial Status
The Shyft Group continues to navigate challenges in the specialty vehicle market while focusing on innovation, strategic acquisitions, and enhancing operational efficiency to meet its mission and objectives.
How The Shyft Group, Inc. (SHYF) Works
Company Overview
The Shyft Group, Inc. specializes in the manufacturing and assembly of specialty vehicles for commercial and recreational use. The company operates primarily through two segments: Fleet Vehicles and Services (FVS) and Specialty Vehicles (SV). As of September 30, 2024, the company reported consolidated sales of $584.7 million, a decrease from $669.9 million in the same period of 2023, reflecting a reduction of $85.2 million or 12.7%.
Financial Performance
For the third quarter of 2024, Shyft Group reported:
- Sales: $194.1 million, down from $201.3 million in Q3 2023, a decrease of 3.6%.
- Gross Profit: $39.6 million, compared to $36.8 million in Q3 2023, an increase of 7.7%.
- Net Income: $3.1 million, down from $4.5 million in Q3 2023.
- Diluted Earnings Per Share: $0.09, compared to $0.13 in Q3 2023.
Segment Analysis
The Shyft Group's operations are divided into two reportable segments:
Fleet Vehicles and Services (FVS)
For the nine months ended September 30, 2024:
| Financial Metric | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Sales | $323,459 | $422,675 |
| Adjusted EBITDA | $19,131 | $32,918 |
Sales decreased by $99.2 million or 23.5% from 2023, primarily due to softer delivery van markets and lower truck body volumes.
Specialty Vehicles (SV)
For the nine months ended September 30, 2024:
| Financial Metric | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Sales | $260,359 | $251,370 |
| Adjusted EBITDA | $50,668 | $47,208 |
Sales in the SV segment increased by $9 million or 3.6%, primarily due to higher service body sales and the impact of the ITU acquisition.
Operational Metrics
As of September 30, 2024, the company’s order backlog was $345.4 million, down from $464.4 million in the previous year, reflecting a decrease of $119 million or 25.6%.
Cost Structure
The cost of products sold for the first nine months of 2024 was $470.5 million, compared to $547.4 million in 2023, a decrease of $76.9 million or 14.1%. This decrease was attributed to lower sales volumes and changes in mix.
Operating expenses were $107.1 million for the first nine months of 2024, slightly down from $108 million in the same period of 2023. Research and development expenses were $12.4 million, a decrease from $18.1 million in 2023, mainly related to electric vehicle development initiatives.
Cash Flow and Liquidity
The company generated $17.2 million in cash from operating activities during the nine months ended September 30, 2024, a decrease from $44.8 million in the same period of 2023. Cash and cash equivalents increased by $11.5 million to $21.4 million as of September 30, 2024.
Cash flows from investing activities showed a significant increase in cash used, totaling $60 million primarily due to the acquisition of ITU for $50.9 million. Cash provided by financing activities was $54.3 million, an increase from $29.9 million used in the previous year.
Recent Developments
The Shyft Group acquired Independent Truck Upfitters (“ITU”) on July 24, 2024, for cash consideration of $50.9 million and up to an additional $8 million earn-out. This acquisition aims to enhance service body product offerings and upfit capabilities.
The company continues to invest in electric vehicle solutions, particularly through its Blue Arc™ Electric Vehicle program, which aims to provide scalable, commercial-grade vehicles for last-mile delivery fleets.
Shareholder Information
As of the third quarter of 2024, the total number of shares outstanding was 34,482, with a total shareholders’ equity of $252.7 million. The company declared dividends at a rate of $0.05 per share during this period.
How The Shyft Group, Inc. (SHYF) Makes Money
Overview of Business Segments
The Shyft Group operates primarily through two segments: Specialty Vehicles (SV) and Fleet Vehicles and Services (FVS). Each segment contributes to the company's revenue through different product offerings and services.
Specialty Vehicles (SV) Segment
The SV segment includes the manufacturing of service bodies, motorhome chassis, and other specialty vehicles. For the third quarter of 2024, sales in this segment reached $87.4 million, a 14.0% increase compared to $76.6 million in the same quarter of 2023. Year-to-date sales for the first nine months of 2024 totaled $260.4 million, up from $251.4 million in 2023, representing a 3.6% increase.
Fleet Vehicles and Services (FVS) Segment
The FVS segment focuses on fleet vehicles, including walk-in vans and truck bodies. In the third quarter of 2024, FVS sales were $105.9 million, down 14.8% from $124.3 million in the same quarter of 2023. For the first nine months of 2024, total sales in this segment amounted to $323.5 million, a decrease of 23.5% from $422.7 million in 2023.
| Segment | Q3 2024 Sales | Q3 2023 Sales | Year-to-Date 2024 Sales | Year-to-Date 2023 Sales | Change (%) |
|---|---|---|---|---|---|
| Specialty Vehicles (SV) | $87.4 million | $76.6 million | $260.4 million | $251.4 million | +3.6% |
| Fleet Vehicles and Services (FVS) | $105.9 million | $124.3 million | $323.5 million | $422.7 million | -23.5% |
Revenue Drivers
Key revenue drivers include:
- Sales of service bodies and chassis.
- Aftermarket parts and accessories, which generated $68.96 million in the first nine months of 2024.
- Acquisitions, such as the recent purchase of Independent Truck Upfitters (ITU) for $50.9 million, which expanded service offerings.
Financial Performance Metrics
For the third quarter of 2024:
- Consolidated sales were $194.1 million, down 3.6% from $201.3 million in Q3 2023.
- Gross margin improved to 20.4%, compared to 18.3% in Q3 2023.
- Net income was $3.1 million, compared to $4.5 million in Q3 2023.
- Adjusted EBITDA was $14.3 million, up from $11.0 million in Q3 2023.
Cost Structure
The cost of products sold for the first nine months of 2024 was $470.5 million, a decrease from $547.4 million in the same period of 2023. This reflects a 14.1% reduction, primarily due to lower sales volume and cost management initiatives.
Investment and Capital Expenditures
The Shyft Group's capital expenditures for the first nine months of 2024 totaled $7.4 million, which included investments in manufacturing capabilities and the ITU acquisition.
Order Backlog
The order backlog as of September 30, 2024, was $345.4 million, a decrease of 25.6% from $464.4 million in September 2023. This backlog reflects the demand for both segments and the ongoing adjustments to market conditions.
| Order Backlog | September 30, 2024 | September 30, 2023 | Change (%) |
|---|---|---|---|
| Fleet Vehicles and Services | $267.9 million | $383.4 million | -30.2% |
| Specialty Vehicles | $77.5 million | $80.9 million | -4.2% |
| Total | $345.4 million | $464.4 million | -25.6% |
Conclusion of Financial Metrics
The financial performance of The Shyft Group in 2024 demonstrates a mixed outlook, with growth in the Specialty Vehicles segment offset by declines in Fleet Vehicles and Services. The company's strategic acquisitions and product development initiatives, particularly in electric vehicle solutions, are positioned to enhance future revenue streams.
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Article updated on 8 Nov 2024
Resources:
- The Shyft Group, Inc. (SHYF) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of The Shyft Group, Inc. (SHYF)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View The Shyft Group, Inc. (SHYF)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.