The Shyft Group (NASDAQ: SHYF) reported Q4 EPS of $0.27, $0.01 better than the analyst estimate of $0.26. Revenue for the quarter came in at $171.6 million versus the consensus estimate of $170.49 million.

Fourth Quarter 2020 Highlights from Continuing Operations

For the fourth quarter of 2020 compared to the fourth quarter of 2019:

• Sales of $171.6 million, a decrease of $8.4 million, or 4.7%, from $180.0 million.
• Income from continuing operations of $8.3 million, or $0.22 per share, compared to $14.3 million, or $0.40 per share.
• Adjusted EBITDA of $16.0 million, or 9.3% of sales, a decrease of $7.6 million, or 32.0%, from $23.6 million, or 13.1% of sales.
• Adjusted net income of $10.1 million, or $0.27 per share, compared to $16.5 million, or $0.47 per share.
• Repurchased 300,000 shares of The Shyft Group common stock for approximately $7.5 million in the aggregate pursuant to the Company's share repurchase authorization.
• Purchased the F3 MFG, Inc. business ("DuraMag"), a leading aluminum service body and accessory manufacturer of the well-recognized DuraMag® and Magnum® brands.

"By all accounts, 2020 proved to be a historic and transformative year for The Shyft Group, as we strategically aligned our product portfolio to take advantage of more profitable growth markets after the sale of the ER business," said Daryl Adams, President and Chief Executive Officer. "I am incredibly proud and appreciative of the tremendous efforts of our entire team. Throughout 2020, we rose to the challenge to overcome the impact of the COVID-19 pandemic and related plant disruptions to meet customer demand, while ending the year with nearly $500 million in backlog. We completed another key acquisition that expanded our product offerings, and we continued our efforts toward greater efficiency and productivity across our operations. We emerge from 2020 in a stronger position, well equipped to drive growth in each of our businesses for years to come."

GUIDANCE:

The Shyft Group sees FY2021 EPS of $1.65-$1.85, versus the consensus of $1.59. The Shyft Group sees FY2021 revenue of $850-900 million, versus the consensus of $792.94 million.

Company guidance for full-year 2021 from continuing operations is 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

"Our record EBITDA margin performance this past year and the strength of our balance sheet reflects the power of our recently transformed company. We effectively replaced a non-strategic ER business with two leading service body companies that generate nearly $100 million of annualized revenue with attractive profitability, said Jon Douyard, Chief Financial Officer. "We generated cash flow well in excess of net income, which we were able to deploy in 2020 to repay debt and return $11 million in cash to our shareholders."

"We look ahead to 2021 with optimism. The actions taken to date to support our growth strategy are aligned to take advantage of the strength of our end markets. During 2021, we will continue to invest in our exclusive VelocityTM line of vehicles, including additional ICE and EV platforms to support our customer demands and we plan to opportunistically pursue acquisitions to penetrate new markets while maintaining a focus on last mile delivery. We emerge from 2020 in an advantageous position, well equipped to drive sustainable, profitable growth in each of our businesses and to drive long-term value for our shareholders," concluded Adams.

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