GOSHEN, Ind.--(BUSINESS WIRE)--Supreme Industries, Inc. (NYSE Amex: STS), a leading manufacturer of specialized commercial vehicles, including truck bodies, shuttle buses and armored vehicles, today announced improved financial results for its first quarter ended March 31, 2012.
Consolidated net sales increased 6.0% to $72.5 million for the quarter, up from $68.4 million in last year’s comparable period. Gross profit improved 67% to $10.9 million from last year’s $6.5 million. Gross profit, as a percentage of sales, expanded to 15.0%, compared with 13.1% in the fourth quarter of 2011, and 9.5% in the first quarter of 2011. The gross margin expansion is primarily due to the effects of the favorable product mix and labor efficiencies implemented during the second half of 2011.
The Company reported net income from continuing operations of $2.6 million, or $0.17 per diluted share, for the 2012 quarter, compared with a loss from continuing operations of $1.0 million, or $0.07 per share, in the prior-year first quarter. Including the impact from discontinued operations, net income improved to $0.17 per diluted share, reversing the year-ago net loss of $0.10 per share. Net income for both periods excluded a tax provision due to the Company’s valuation allowance.
Supreme’s Interim Chief Executive Officer and Chief Financial Officer Matthew Long said: “We are pleased to report our third consecutive quarter of profitability and are encouraged by the financial progress our organization has achieved. The momentum that began to take hold during the third quarter of 2011 continued through the first quarter of 2012. We believe these ongoing efforts should yield benefits as we progress through the year.”
Working capital was $41.1 million at March 31, 2012, compared with $35.8 million at Dec. 31, 2011. In addition, the Company made strategic investments totaling $2.6 million in facilities and equipment during the first quarter of 2012. Total debt was $20.3 million at March 31, 2012, compared with $15.9 million at Dec. 31, 2011, and $30.1 million at April 2, 2011. Stockholders’ equity was $57.9 million, or $3.82 per share, at March 31, 2012, compared with $55.3 million, or $3.75 per share, at Dec. 31, 2011. Net cash used in operating activities during the first quarter of 2012 totaled $2.6 million, compared with net cash used in operating activities of $4.3 million in 2011.
“Our nearly 1,900 dedicated employees remain focused on achieving sustained profitability and consistency of performance in all facets of our organization,” Long concluded.
A live webcast of Supreme Industries' earnings conference call can be heard tomorrow at 9 a.m. Eastern Time at http://www.SupremeInd.com. Those unable to participate in the live conference call may access a replay, which will be available on Supreme’s website for approximately 30 days.
To be added to Supreme Industries’ email distribution list, please click on the link below:
http://www.clearperspectivegroup.com/clearsite/sts/emailoptin.html.
About Supreme Industries
Supreme Industries, Inc. (NYSE Amex: STS), is a nationwide manufacturer of specialized truck bodies produced to the specifications of its customers. Supreme also manufactures special-purpose “shuttle-type” buses and armored vehicles. The Company's transportation equipment products are used by a wide variety of industrial, commercial and law enforcement customers.
News releases and other information on the Company are available on the Internet at: http://www.supremeind.com or http://www.b2i.us/irpass.asp?BzID=1482&to=ea&s=0
Other than historical facts contained, the matters set forth in this news release are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act, as amended, and reflect the view of management with respect to future events. When used in this report, words such as “believe,” “expect,” “anticipate,” “estimate,” “intend,” “plan,” and similar expressions, as they relate to Supreme or its plans or operations, identify forward-looking statements. Such forward-looking statements are based on assumptions made by, and information currently available to management. Although management believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that the expectations reflected in such forward-looking statements are reasonable, and it can give no assurance that such expectations will prove to be correct. Important factors that could cause actual results to differ materially from such expectations include, without limitation, an economic slowdown in the specialized vehicle industry, limitations on the availability of chassis on which Supreme’s product is dependent, availability of raw materials, raw material cost increases and severe interest rate increases. Furthermore, Supreme can provide no assurance that any raw material cost increases can be passed on to its customers through implementation of price increases for Supreme’s products. The forward-looking statements contained herein reflect the current view of management with respect to future events and are subject to those factors and other risks, uncertainties, and assumptions relating to the operations, results of operations, cash flows and financial position of Supreme. Supreme assumes no obligation to update the forward-looking statements or to update the reasons actual results could differ from those contemplated by such forward-looking statements.
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Supreme Industries, Inc. and Subsidiaries |
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| Consolidated Statements of Operations (Unaudited) | |||||||||||
| Three Months Ended | |||||||||||
| March 31, 2012 | April 2, 2011 | ||||||||||
| Net sales | $ | 72,519,627 | $ | 68,399,974 | |||||||
| Cost of sales | 61,627,719 | 61,876,822 | |||||||||
| Gross profit | 10,891,908 | 6,523,152 | |||||||||
| Selling, general and administrative expenses | 8,548,390 | 6,997,964 | |||||||||
| Legal settlement and related costs | - | 313,443 | |||||||||
| Other income | (478,948 | ) | (60,753 | ) | |||||||
| Operating income (loss) | 2,822,466 | (727,502 | ) | ||||||||
| Interest expense | 264,749 | 279,858 | |||||||||
| Income (loss) from continuing operations before income taxes | 2,557,717 | (1,007,360 | ) | ||||||||
| Income tax expense | - | - | |||||||||
| Income (loss) from continuing operations | 2,557,717 | (1,007,360 | ) | ||||||||
| Discontinued operations: | |||||||||||
| Operating loss of discontinued Oregon operations, net of tax | - | (357,139 | ) | ||||||||
| Net income (loss) | $ | 2,557,717 | $ | (1,364,499 | ) | ||||||
| Basic and diluted income (loss) per share: | |||||||||||
| Income (loss) from continuing operations | $ | 0.17 | $ | (0.07 | ) | ||||||
| Loss from discontinued operations | - | (0.03 | ) | ||||||||
| Net income (loss) per share | $ | 0.17 | $ | (0.10 | ) | ||||||
| Shares used in the computation of income (loss) per share: | |||||||||||
| Basic | 15,161,149 | 14,360,917 | |||||||||
| Diluted | 15,380,960 | 14,360,917 | |||||||||
| Supreme Industries, Inc. and Subsidiaries | |||||||||||
| Consolidated Balance Sheets | |||||||||||
| March 31, 2012 | Dec. 31, 2011 | ||||||||||
| (Unaudited) | (Audited) | ||||||||||
| Assets | |||||||||||
| Current assets | $ | 78,863,842 | $ | 69,483,071 | |||||||
| Property, plant and equipment, net | 35,352,167 | 33,530,057 | |||||||||
| Other assets | 1,506,269 | 1,683,718 | |||||||||
| Total assets | $ | 115,722,278 | $ | 104,696,846 | |||||||
| Liabilities | |||||||||||
| Current liabilities | $ | 37,745,610 | $ | 33,683,888 | |||||||
| Long-term debt | 20,035,242 | 15,702,467 | |||||||||
| Total liabilities | 57,780,852 | 49,386,355 | |||||||||
| Total stockholders' equity | 57,941,426 | 55,310,491 | |||||||||
| Total liabilities and stockholders' equity | $ | 115,722,278 | $ | 104,696,846 | |||||||