The Shyft (US:SHYF)2021-08-05 20:32Financial Performance - Revenue for the second quarter of 2021 was $244.0 million, a 96.8% increase from $124.0 million in the second quarter of 2020[90] - Gross profit for the second quarter of 2021 was $51.9 million, up 116.2% from $24.0 million in the second quarter of 2020[95] - Operating income for the second quarter of 2021 was $22.2 million, compared to a loss of $1.7 million in the second quarter of 2020[90] - Consolidated Adjusted EBITDA for Q2 2021 was $28.6 million, a 205.6% increase from $9.4 million in Q2 2020[101] - Consolidated sales for the first six months of 2021 were $441.9 million, a 46.8% increase from $300.9 million in the same period of 2020[105] - Gross profit for the first six months of 2021 was $91.9 million, a 52.4% increase from $60.3 million in the same period of 2020[107] - Income from continuing operations for the first six months of 2021 increased by $17.9 million, or 168.5%, to $28.5 million compared to $10.6 million in the same period of 2020[112] - Adjusted EBITDA for the first six months of 2021 was $47.7 million, a 72.2% increase from $27.7 million in the same period of 2020[114] Order Backlog - Order backlog reached $751.4 million as of June 30, 2021, an increase of 122.6% from $337.5 million at June 30, 2020[90] - Total consolidated backlog as of June 30, 2021, was $751.4 million, up 122.6% from $337.5 million in June 2020[102] - Fleet Vehicles and Services backlog increased by $374.0 million, or 130.3%, reflecting strong demand[103] Product Development - The company introduced the Velocity F2™, a Class 2 walk-in van, enhancing flexibility for parcel delivery fleets[90] - The company launched the Velocity M3™ walk-in cargo van, featuring improved fuel efficiency and a game-changing automatic access system[90] - The company is expanding into the equipment upfit market, targeting vehicles used in parcel delivery and construction industries[90] Expenses and Costs - Research and development expenses were $0.9 million in the second quarter of 2021, down from $1.1 million in the second quarter of 2020[96] - Cost of products sold for the first six months of 2021 was $350.0 million, up 45.5% from $240.6 million in the first six months of 2020[106] Segment Performance - Sales in the Fleet Vehicles and Services segment for Q2 2021 were $168.3 million, a 73.1% increase from $97.2 million in Q2 2020[123] - Adjusted EBITDA in the Fleet Vehicles and Services segment for Q2 2021 was $28.3 million, a 107.2% increase from $13.7 million in Q2 2020[124] - Adjusted EBITDA for the FVS segment for the six months ended June 30, 2021, was $46.5 million, an increase of $11.1 million or 31.4% compared to the same period in 2020[126] - Sales in the SV segment for the second quarter of 2021 were $75.7 million, an increase of $49.0 million or 183.2% compared to $26.7 million in the second quarter of 2020[128] - Adjusted EBITDA for the SV segment for the second quarter of 2021 was $8.6 million, an increase of $7.4 million or 608.5% compared to $1.2 million in the second quarter of 2020[129] - Sales in the SV segment for the six months ended June 30, 2021, were $141.9 million, an increase of $73.9 million or 108.7% compared to $68.0 million in the same period in 2020[130] - Adjusted EBITDA for the SV segment for the six months ended June 30, 2021, was $15.7 million, an increase of $10.7 million or 216.9% compared to $4.9 million in the same period in 2020[131] Cash Flow and Liquidity - Cash and cash equivalents decreased by $16.8 million to $4.2 million at June 30, 2021, compared to $21.0 million at December 31, 2020[132] - Cash generated from operating activities during the six months ended June 30, 2021, was $3.2 million, an increase of $14.9 million from cash used in the same period in 2020[133] - The company used $12.0 million for investing activities during the six months ended June 30, 2021, a decrease of $61.2 million from cash provided in the same period in 2020[135] - At June 30, 2021, the company had available borrowings of $115.8 million under its Credit Agreement, which matures on August 8, 2023[142] - As of June 30, 2021, the company had $22.4 million in outstanding variable rate short-term and long-term debt[147] Market Risks - A hypothetical increase of 100 basis points in interest rates would result in an additional annual interest expense of $0.2 million[147] - The company is exposed to changes in raw material prices, primarily steel and aluminum, and does not typically use derivative instruments to manage these exposures[149] - The company engages in pre-buys of components affected by commodity price fluctuations to mitigate risks[149] - Prevailing interest rates and commodity costs are determined by market factors beyond the company's control[151] - There has been no material change in the nature or categories of primary market risk exposures as of the report date[150]