The Shyft Group (SHYF) Tops Q1 EPS by 3c, Revenues Beat; Offers FY21 EPS/Revenues Guidance

The Shyft Group (NASDAQ: SHYF) reported Q1 EPS of $0.36, $0.03 better than the analyst estimate of $0.33. Revenue for the quarter came in at $197.9 million versus the consensus estimate of $192.66 million.

For the first quarter of 2021 compared to the first quarter of 2020:

• Sales of $197.9 million, an increase of $21.0 million, or 11.8%, from $176.9 million.
• Income from continuing operations of $11.5 million, or $0.32 per share, compared to $11.7 million, or $0.33 per share. Prior year results include a $2.6 million, or $0.08 per share, income tax gain. Excluding this tax gain, income from continuing operations increased 26.3%.
• Adjusted EBITDA of $19.2 million, or 9.7% of sales, an increase of $0.8 million, or 4.3%, from $18.4 million, or 10.4% of sales.
• Adjusted net income of $12.8 million, or $0.36 per share, an increase of $1.4 million, or 12.4%, from $11.4 million, or $0.32 per share.
• Consolidated backlog at March 31, 2021, totaled a record $666.5 million, up $321.8 million, or 93.4%, compared to $344.7 million at March 31, 2020, reflecting continued strong demand across all business units.
• Repurchased 100,000 shares of The Shyft Group common stock for approximately $3.3 million in the aggregate, pursuant to the Company's share repurchase authorization.

"We are excited with the strong start to the year, as parcel delivery and luxury motor coach continues to exceed our expectations – fueled by innovative products designed to meet our customers' needs – and ultimately resulted in our backlog increasing over 90%, to a record $667 million," said Daryl Adams, President and Chief Executive Officer. "We continue to receive robust orders for Velocity, including our first 350 unit order for our exclusive Velocity M3 walk-in-van vehicle. Operationally, our ongoing focus and investment in manufacturing capability continues to have an impact, as we set a new production record in Bristol and successfully launched the new Velocity plant in Michigan."

GUIDANCE:

The Shyft Group sees FY2021 EPS of $1.65-$1.85, versus the consensus of $1.78. The Shyft Group sees FY2021 revenue of $850-900 million, versus the consensus of $874.46 million.

"We are pleased with our first quarter results and the continued strength of our operations. Cash flow generated from operations increased 92% over the same period a year ago," said Jon Douyard, Chief Financial Officer. "Our current liquidity position remains strong at $136.0 million, while our leverage ratio stands 0.6 times adjusted EBITDA. While backlog is more robust today than we anticipated going into 2021, we continue to monitor the supply chain uncertainty and chassis availability due to the semi-conductor shortage. Weighing the impact of these factors, we remain confident in maintaining our guidance for the year," concluded Douyard.

Guidance for full-year 2021 from continuing operations remains as follows:

• Revenue to be in the range of $850 to $900 million
• Net income of $51 to $58 million
• Adjusted EBITDA of $95 to $105 million
• Effective tax rate of approximately 26%
• Earnings per share of $1.42 - $1.62
• Adjusted earnings per share of $1.65 - $1.85

"We continue to invest in our future by expanding manufacturing capacity and developing new products and technologies, including electric vehicles, to meet emerging customer demand across vocations. The accelerating growth of our recent acquisitions demonstrates the benefits of our strategy from both a product mix and a distribution footprint, and we plan to continue to seek additional opportunities to enhance growth," concluded Adams.

For earnings history and earnings-related data on The Shyft Group (SHYF) click here.

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