The Shyft Group, Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, reflecting a decline in revenue and profitability compared to the same periods in 2023. For the third quarter, total sales reached $194.1 million, a decrease of 3.6% from $201.3 million in Q3 2023. The nine-month sales also fell to $584.7 million from $669.9 million, marking a 12.7% decline. The decrease in revenue was primarily attributed to lower sales volumes in the Fleet Vehicles and Services (FVS) segment, particularly in truck bodies and USPS pass-through chassis sales, although this was partially offset by increased sales in the Specialty Vehicles (SV) segment.
Gross profit for Q3 2024 was $39.6 million, up from $36.8 million in Q3 2023, driven by a favorable product mix despite higher manufacturing costs. Operating income improved to $5.3 million from $4.1 million year-over-year, while net income for the quarter was $3.1 million, down from $4.5 million in Q3 2023. For the nine months, net income plummeted to $618,000 from $10.9 million in the prior year, reflecting significant challenges in maintaining profitability.
The company’s cash and cash equivalents increased to $21.4 million as of September 30, 2024, up from $10.0 million at the end of 2023. However, net cash provided by operating activities decreased significantly to $17.2 million from $44.8 million in the same period last year. The company also reported a substantial increase in net cash used in investing activities, totaling $60.0 million, primarily due to the acquisition of Independent Truck Upfitters (ITU) for $50.9 million on July 24, 2024, which included an additional potential earn-out of up to $8.0 million.
Total assets rose to $569.4 million from $530.0 million at the end of 2023, while total liabilities decreased to $165.1 million from $182.8 million. Long-term debt increased significantly to $110.2 million from $50.1 million, reflecting the financing of the ITU acquisition. The company’s order backlog as of September 30, 2024, was $345.4 million, down 25.6% from $464.4 million a year earlier, indicating a potential slowdown in future sales.
The Shyft Group continues to navigate challenges in the market, including inflationary pressures affecting costs and interest expenses, while focusing on strategic acquisitions to enhance its product offerings and operational efficiencies.
About SHYFT GROUP, INC.
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