GOSHEN, Ind.--(BUSINESS WIRE)--Supreme Industries, Inc. (NYSE MKT: STS), a leading manufacturer of specialized commercial vehicles including truck bodies, trolleys and specialty vehicles, today announced improved net income for its first quarter ended March 26, 2016.
Net sales in the first quarter increased 10% to $69.4 million, compared with $63.3 million in the previous year. First-quarter net income increased to $3.8 million, up from $1.9 million in last year’s same period — an increase of 94%. Earnings per diluted share doubled to $0.22, compared with $0.11 in the first quarter of 2015.
Due to ongoing strategic marketing and sales efforts, order backlog at March 26, 2016, increased to $102 million, compared with $98 million at the end of the most recent quarter; and, $94 million at the end of last year’s first quarter.
“With positive momentum continuing in the medium duty work truck sector, 2016 is off to a great start at Supreme,” said Mark Weber, President and Chief Executive Officer. “In addition, our sales and operations teams continue to gain positive momentum, and our financial results reflect the hard work and customer commitment demonstrated by our entire organization.”
Gross margin expanded 375 basis points in the first quarter of 2016 to 21.8% of sales, compared with 18.1% of sales in the first quarter of 2015. Improved overhead utilization from increased volume and a more favorable mix of retail sales as compared with last year, drove the margin improvement. This resulted in gross profit increasing 32.5%, to $15.2 million, up from $11.4 million in the comparable year-ago period.
Operating income improved 86%, to $5.8 million, versus $3.1 million in the first quarter of 2015.
Working capital at March 26, 2016 increased modestly, to $54.9 million, compared with $51.6 million at the end of December 2015, to support higher sales volumes and inventory associated with spring fleet orders. Stockholders’ equity increased to $91.9 million at quarter end, compared with $88.6 million at Dec. 26, 2015. Book value per share grew to $5.49 at March 26, 2016, versus $5.32 at the end of 2015.
Conference Call Information
A conference call will take place tomorrow, April 22, 2016, at 9:00 a.m. ET to review the 2016 first quarter results. To participate in the live call, dial 888-349-0089 (International: 412-902-4296) 10 minutes before the call begins, or at 8:50 a.m. ET. The conference ID is 10084621. The call also will be streamed live and can be accessed at www.supremecorp.com. Those unable to participate in the live conference call may access a replay, which will be available on Supreme’s website for approximately 30 days.
About Supreme Industries
Supreme Industries, Inc. (NYSE MKT: STS), is a nationwide manufacturer of truck bodies, trolleys and specialty vehicles produced to the specifications of its customers. The Company’s transportation equipment products are used by a wide variety of industrial, commercial and law enforcement customers.
—FINANCIAL RESULTS FOLLOW—
|Supreme Industries, Inc. and Subsidiaries|
|Condensed Consolidated Statements of Income (Unaudited)|
|Three Months Ended|
|Mar. 26, 2016||Mar. 28, 2015|
|Cost of sales||54,289,246||51,850,345|
|Selling, general and administrative expenses||9,414,951||8,420,650|
|Income before income taxes||5,599,353||2,859,119|
|Income tax expense||1,840,000||926,000|
Income per share:
Shares used in the computation of income per share:
Supreme Industries, Inc. and Subsidiaries
|Condensed Consolidated Balance Sheets (Unaudited)|
|Mar. 26, 2016||Dec. 26, 2015|
|Property, plant and equipment, net||45,789,560||46,186,364|
|Total stockholders' equity||91,904,815||88,588,429|
|Total liabilities and stockholders' equity||$||125,394,988||$||121,729,713|