Third Quarter GAAP Earnings Per Diluted Share
Increased to $0.15 Versus $0.09 in Prior Year
Supreme Industries, Inc. (NYSE MKT: STS), a leading
manufacturer of specialized commercial vehicles including truck
bodies, trolleys and specialty vehicles, today announced financial
results for its third quarter ended September 27, 2014.
2014 Third Quarter Results
Consolidated net sales from continuing operations increased to
$58.0 million in the third quarter of 2014, compared with $56.7
million last year. Net income per diluted share improved to $0.15
in the third quarter of 2014, versus $0.09 last year, which
included a $1.0 million after-tax loss related to its discontinued
shuttle bus operations.
“Medium-duty sales are showing continued strength, which is in
line with related industry reports,” said Mark Weber, President and
Chief Executive Officer. “These customers are generally optimistic
concerning their respective market conditions and anticipate
continued growth well into 2015.”
Gross profit from continuing operations in the quarter was $11.3
million, or 19.5% of sales, compared with $11.6 million, or 20.5%
of sales, in the prior-year quarter. The decrease of $0.3 million
is primarily due to product and customer mix.
Operating income from continuing operations was $3.8 million,
compared with $4.0 million in last year’s third quarter. Income tax
expense was unchanged year-over-year at $1.2 million. Net income
from continuing operations was $2.5 million, essentially unchanged
from the same quarter a year ago. On a continuing operations basis,
third quarter net income per diluted share was $0.15 in both
years.
2014 Nine-Month Results
Consolidated net sales from continuing operations in the
nine-month period increased to $183.0 million, up from $181.9
million last year.
Gross margin for the nine-months was 18.5% of sales, compared
with 20.5% in the prior year. The lower margin reflects a chassis
shortage and severe weather impact in the first quarter of 2014,
and a higher mix of sales to fleet customers compared with last
year. Correspondingly, gross profit declined to $33.8 million,
compared with $37.2 million in last year’s comparable nine-month
period.
Operating income was $10.6 million, compared with $14.4 million
in 2013, and income from continuing operations was $6.9 million for
the nine-months of 2014, down from $9.1 million last year.
The Company’s discontinued shuttle bus operations generated a
$1.6 million after-tax net loss during the current year nine-month
period, compared with a loss of $4.3 million last year. Including
the negative impact on 2013’s results from discontinued operations,
reported net income improved to $5.4 million, or $0.32 per diluted
share, up from reported net income of $4.8 million, or $0.29 per
diluted share, in last year’s comparable period.
“Throughout the first three quarters of 2014, we have made
steady progress towards our strategic goals. We have actively
addressed under-performing business units, invested capital to
target growth and efficiency, and elevated customer focus across
the organization. These initiatives have improved our financial
performance allowing us to reinstate a cash dividend to
shareholders for the first time since 2008,” Weber said. “In
addition, our new and innovative products employing our proprietary
FiberPanel™ HC sidewalls are generating interest in the market.
This recently translated into securing orders for trucks built with
these new body panels. These internal efforts, combined with steady
market demand, give us optimism as we close out 2014 and look ahead
to next year.”
Sales order backlog at the end of the quarter was $50.8 million,
compared with $68.7 million at the end of the third quarter 2013. A
major fleet customer ordered in the fall of 2013, elevating the
backlog, but returned to their normal ordering pattern in the
spring of 2014.
Additional financial highlights:
- Cash and cash equivalents increased to
$11.4 million, up from $3.9 million at December 28, 2013.
- Net cash provided by operating
activities during the 2014 nine-months was $6.3 million, compared
with $2.3 million of net cash generated by operations in the same
period of 2013.
- Stockholders’ equity increased to $79.8
million at September 27, 2014, compared with $74.1 million at
December 28, 2013.
- Book value, on a per share basis, grew
to $4.87 at quarter-end versus $4.59 at the end of 2013.
Conference Call Information
A conference call will be held tomorrow, October 24, 2014, at
9:00 a.m. ET to review the third quarter and nine-month results. To
participate in the live call, dial 877-300-8521 (International:
412-317-6026) 10 minutes before the call begins, or 8:50 a.m. ET.
The conference ID is 10054007. The call also will be streamed live
and can be accessed 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.
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.
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 herein, 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.
—FINANCIAL RESULTS FOLLOW—
Supreme Industries, Inc. and Subsidiaries Condensed
Consolidated Statements of Income (Unaudited)
Three Months Ended Nine Months Ended Sept. 27,
2014 Sept. 28, 2013 Sept. 27, 2014
Sept. 28, 2013 Net Sales $ 58,023,699 $ 56,656,038 $
182,969,324 $ 181,936,497 Cost of sales 46,736,407
45,041,492 149,153,869
144,696,014
Gross profit 11,287,292 11,614,546
33,815,455 37,240,483 Selling, general and administrative
expenses 7,783,492 7,733,558 23,604,955 23,665,263 Other income
(299,148 ) (88,908 ) (398,343 )
(812,603 )
Operating income 3,802,948 3,969,896 10,608,843
14,387,823 Interest expense 101,983
289,048 255,429 426,613
Income from continuing operations
before income taxes
3,700,965 3,680,848 10,353,414 13,961,210 Income tax expense
1,232,000 1,189,395 3,405,000
4,885,480
Income from continuing
operations 2,468,965 2,491,453
6,948,414 9,075,730 Discontinued
operations:
Gain on sale of discontinued operations,
net of tax
- - 87,036 - Operating loss from discontinued operations, net of
tax - (960,016 ) (1,654,459 )
(4,315,356 ) Loss from discontinued operations, net of tax -
(960,016 ) (1,567,423 ) (4,315,356 )
Net income
$ 2,468,965 $ 1,531,437 $ 5,380,991 $
4,760,374
Basic income (loss) per share:
Income from continuing operations $ 0.15 $ 0.15 $ 0.42 $ 0.56 Loss
from discontinued operations - (0.06 )
(0.09 ) (0.26 )
Net income
$ 0.15 $ 0.09 $ 0.33 $ 0.30
Diluted income (loss) per share: Income from continuing
operations $ 0.15 $ 0.15 $ 0.41 $ 0.55 Loss from discontinued
operations - (0.06 ) (0.09 )
(0.26 ) Net income $ 0.15 $ 0.09 $ 0.32 $ 0.29
Shares used in the computation of income (loss)
per share: Basic 16,385,403 16,160,518 16,311,598
16,087,864 Diluted 16,762,994 16,546,113 16,714,412 16,425,542
Supreme Industries, Inc. and
Subsidiaries
Condensed Consolidated Balance Sheets Sept.
27, 2014 Dec. 28, 2013 Assets (Unaudited) Current
assets $ 66,875,803 $ 65,923,357 Property, plant and equipment, net
46,164,997 46,387,839 Other assets 990,965 1,219,655
Total assets $ 114,031,765 $ 113,530,851
Liabilities Current liabilities $ 23,344,086 $ 28,343,456
Long-term liabilities 10,867,560 11,107,228
Total
liabilities 34,211,646 39,450,684
Total stockholders'
equity 79,820,119 74,080,167
Total liabilities
and stockholders' equity $ 114,031,765 $ 113,530,851
Supreme Industries, Inc.Investor and Media Contact:Matthew J.
Dennis, CFA, Investor Relations, 574-228-4130
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