SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): February 19, 2015
SUPREME INDUSTRIES, INC.
(Exact name of registrant as specified in its charter)
Delaware |
|
1-8183 |
|
75-1670945 |
(State of incorporation) |
|
(Commission File No.) |
|
(IRS Employer Identification No.) |
P.O. Box 237
2581 E. Kercher Road
Goshen, Indiana 46528
(Address of principal executive offices) (Zip Code)
Registrants telephone number, including area code: (574) 642-3070
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02 Results of Operations and Financial Condition.
On February 19, 2015, Supreme Industries, Inc. (the Company) issued a press release (the Press Release) announcing its financial results for the fourth quarter and full year ended December 27, 2014. A copy of the Press Release is being furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated by reference into this Item 2.02. The foregoing description of the Press Release is qualified in its entirety by reference to Exhibit 99.1.
The Press Release contains a non-GAAP financial measurement, controllable working capital, which is related to working capital. Management believes that this non-GAAP financial measure is helpful to investors to more accurately demonstrate the Companys use of capital year-over-year. A reconciliation of this non-GAAP financial measure is included in the Press Release attached hereto and incorporated herein as Exhibit 99.1.
Pursuant to General Instruction B.2 of Form 8-K, the information in this Current Report on Form 8-K, including the exhibit, shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liability of that section, and it is not incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Pursuant to General Instruction B.2 of Form 8-K, the following exhibit is furnished with this Form 8-K.
99.1 Press Release of the Company dated February 19, 2015.
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
|
SUPREME INDUSTRIES, INC. |
|
|
|
|
Date: February 20, 2015 |
By: |
/s/ Mark D. Weber |
|
|
Mark D. Weber |
|
|
President and Chief Executive Officer |
|
|
|
|
3
EXHIBIT INDEX
Exhibit No. |
|
Description |
|
|
|
99.1 |
|
Press Release of the Company dated February 19, 2015. |
4
Exhibit 99.1
Supreme Industries Reports 2014 Fourth-Quarter Results
Full-Year GAAP Earnings Per Diluted Share Increased to $0.41 Versus $0.39 in Prior Year
Order Backlog Jumps 13% to $79.9 Million at Year-End Compared with $70.8 Million Last Year
Goshen, Ind.February 19, 2015Supreme 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 fourth quarter and full year ended December 27, 2014.
2014 Fourth-Quarter Results
Consolidated net sales from continuing operations in the fourth quarter of 2014 declined to $53.3 million, compared with $64.9 million in the same quarter last year. In the prior year quarter, net sales reflected an incremental fleet order of approximately $8.0 million that was placed unseasonably late during the 2013 calendar year. That account returned to a more normalized spring delivery pattern in 2014, resulting in the majority of the year-over-year decline of fourth quarter sales.
Net income was $1.5 million in the quarter, compared with $1.7 million in 2013s fourth quarter. 2013 results included a $0.5 million net loss related to discontinued operations. Net income from continuing operations was $1.5 million or $0.09 per diluted share in the final quarter of 2014, versus $2.1 million, or $0.13 per diluted share, in last years comparable quarter.
The work truck market reported mixed results versus 2013 for the quarter; however, our new orders gained momentum, said Mark Weber, President and Chief Executive Officer. Our customers are generally optimistic about future market conditions and are anticipating growth in 2015, which is reflected in our improved order backlog.
Due to the lower net sales, gross profit from continuing operations declined to $10.0 million in the quarter, versus $11.2 million last year. However, gross margin improved to 18.8% of sales, compared with 17.2% of sales in the fourth quarter of 2013. The current quarter margin expansion resulted from overhead cost controls and the lower proportion of fleet shipments compared with the prior year.
Operating income from continuing operations decreased to $2.4 million from $3.2 million primarily due to the lower sales level. Interest expense increased $0.2 million during the quarter as a result of more chassis on hand to bridge possible OEM delivery delays.
2014 Twelve-Month Results
Consolidated net sales from continuing operations in the twelve-month period were $236.3 million, compared with $246.8 million last year. The revenue decline in 2014 was due to softer retail demand, as well as a chassis shortage and severe weather that hampered first-quarter sales and profitability. As a result, full-year gross margin contracted to 18.6% of net sales, compared with 19.6% of net sales in the prior year.
Supreme Industries, Inc.
2581 East Kercher Road · PO Box 463 · Goshen, IN 46527
Operating income in 2014 was $13.0 million, compared with $17.6 million in 2013, and income from continuing operations was $8.5 million for the twelve-months of 2014, down from $11.2 million last year.
The Companys discontinued shuttle bus operations generated a $1.6 million after-tax net loss in 2014 and an after-tax net loss of $4.8 million in 2013. Including the negative impact from discontinued operations on both years results, reported net income improved to $6.9 million, or $0.41 per diluted share in 2014, up from reported net income of $6.4 million, or $0.39 per diluted share, last year.
During 2014, we actively addressed underperforming business units, invested capital to enhance growth and efficiency, and elevated customer focus across the organization. These initiatives and our improved financial condition have put us in the position to reinstate a quarterly cash dividend and return capital to shareholders, Weber said. The growth in our order backlog also provides evidence that our sales initiatives are beginning to gain traction. These internal efforts, combined with positive market momentum, give us optimism as we look ahead to the coming year.
Order backlog at the end of 2014 was up approximately 13% to $79.9 million, compared with $70.8 million at the end of the prior year and the backlog has continued to grow since the beginning of 2015, due to the receipt of additional fleet orders, he concluded.
Additional financial highlights:
· Cash and cash equivalents increased to $11.6 million, up from $3.9 million at December 28, 2013.
· Working capital increased to $44.4 million at December 27, 2014, from $36.7 million at December 28, 2013.
· Controllable working capital improved to $31.6 million at December 27, 2014 from $38.2 million at December 28, 2013 (see reconciliation below).
· Stockholders equity increased to $81.0 million at December 27, 2014, compared with $74.1 million at December 28, 2013.
· Book value, on a per share basis, grew to $4.94 at year-end versus $4.59 at the end of 2013.
Conference Call Information
A conference call will be held tomorrow, February 20, 2015, at 9:00 a.m. ET to review the fourth quarter and twelve-month results. To participate in the live call, dial 1-888-349-0089 (International: 412-902-4296) 10 minutes before the call begins, or 8:50 a.m. ET. The conference ID is 10060448. 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 Supremes 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 Companys 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 Supremes product is dependent, availability of raw materials, raw material cost increases and 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 Supremes 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.
CONTACT:
Investor and Media Contact:
Matthew J. Dennis, CFA
Investor Relations
574-228-4130
FINANCIAL RESULTS FOLLOW
Supreme Industries, Inc. and Subsidiaries
Condensed Consolidated Statements of Income
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
|
Dec. 27, 2014 |
|
Dec. 28, 2013 |
|
Dec. 27, 2014 |
|
Dec. 28, 2013 |
|
Net Sales |
|
$ |
53,339,596 |
|
$ |
64,869,470 |
|
$ |
236,308,920 |
|
$ |
246,805,967 |
|
Cost of sales |
|
43,308,212 |
|
53,689,628 |
|
192,462,081 |
|
198,385,642 |
|
Gross profit |
|
10,031,384 |
|
11,179,842 |
|
43,846,839 |
|
48,420,325 |
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses |
|
7,739,249 |
|
8,033,691 |
|
31,344,204 |
|
31,698,954 |
|
Other income |
|
(95,542 |
) |
(92,475 |
) |
(493,885 |
) |
(905,078 |
) |
Operating income |
|
2,387,677 |
|
3,238,626 |
|
12,996,520 |
|
17,626,449 |
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
270,482 |
|
78,215 |
|
525,911 |
|
504,828 |
|
Income from continuing operations before income taxes |
|
2,117,195 |
|
3,160,411 |
|
12,470,609 |
|
17,121,621 |
|
|
|
|
|
|
|
|
|
|
|
Income tax expense |
|
595,655 |
|
1,037,879 |
|
4,000,655 |
|
5,923,359 |
|
Income from continuing operations |
|
1,521,540 |
|
2,122,532 |
|
8,469,954 |
|
11,198,262 |
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations: |
|
|
|
|
|
|
|
|
|
Gain on sale of discontinued operations, net of tax |
|
|
|
|
|
87,036 |
|
|
|
Operating loss from discontinued operations, net of tax |
|
|
|
(457,030 |
) |
(1,654,459 |
) |
(4,772,386 |
) |
Loss from discontinued operations, net of tax |
|
|
|
(457,030 |
) |
(1,567,423 |
) |
(4,772,386 |
) |
Net income |
|
$ |
1,521,540 |
|
$ |
1,665,502 |
|
$ |
6,902,531 |
|
$ |
6,425,876 |
|
|
|
|
|
|
|
|
|
|
|
Basic income (loss) per share: |
|
|
|
|
|
|
|
|
|
Income from continuing operations |
|
$ |
0.09 |
|
$ |
0.13 |
|
$ |
0.52 |
|
$ |
0.69 |
|
Loss from discontinued operations |
|
|
|
(0.03 |
) |
(0.10 |
) |
(0.29 |
) |
Net income |
|
$ |
0.09 |
|
$ |
0.10 |
|
$ |
0.42 |
|
$ |
0.40 |
|
|
|
|
|
|
|
|
|
|
|
Diluted income (loss) per share: |
|
|
|
|
|
|
|
|
|
Income from continuing operations |
|
$ |
0.09 |
|
$ |
0.13 |
|
$ |
0.50 |
|
$ |
0.68 |
|
Loss from discontinued operations |
|
|
|
(0.03 |
) |
(0.09 |
) |
(0.29 |
) |
Net income |
|
$ |
0.09 |
|
$ |
0.10 |
|
$ |
0.41 |
|
$ |
0.39 |
|
|
|
|
|
|
|
|
|
|
|
Shares used in the computation of income (loss) per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
16,443,139 |
|
16,180,874 |
|
16,350,561 |
|
16,113,136 |
|
Diluted |
|
16,778,870 |
|
16,581,208 |
|
16,744,066 |
|
16,487,804 |
|
Supreme Industries, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
|
|
Dec. 27, 2014 |
|
Dec. 28, 2013 |
|
Assets |
|
|
|
|
|
Current assets |
|
$ |
63,101,485 |
|
$ |
65,923,357 |
|
Property, plant and equipment, net |
|
46,925,534 |
|
46,387,839 |
|
Other assets |
|
914,735 |
|
1,219,655 |
|
Total assets |
|
$ |
110,941,754 |
|
$ |
113,530,851 |
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
Current liabilities |
|
$ |
18,652,523 |
|
$ |
28,343,456 |
|
Long-term liabilities |
|
11,256,826 |
|
11,107,228 |
|
Total liabilities |
|
29,909,349 |
|
39,450,684 |
|
Total stockholders equity |
|
81,032,405 |
|
74,080,167 |
|
Total liabilities and stockholders equity |
|
$ |
110,941,754 |
|
$ |
113,530,851 |
|
Supreme Industries, Inc. and Subsidiaries
Reconciliation of Working Capital and Controllable Working Capital
|
|
December 27, 2014 |
|
December 28, 2013 |
|
Net Accounts Receivable |
|
$ |
17.9 |
|
$ |
21.6 |
|
Net Inventories |
|
22.7 |
|
32.5 |
|
Accounts Payable |
|
(9.0 |
) |
(15.9 |
) |
Controllable Working Capital |
|
31.6 |
|
38.2 |
|
|
|
|
|
|
|
Cash and Equivalents |
|
11.6 |
|
3.9 |
|
Other Current Assets |
|
10.9 |
|
7.9 |
|
Other Current Liabilities |
|
(9.7 |
) |
(12.4 |
) |
Working Capital |
|
$ |
44.4 |
|
$ |
37.6 |
|
The Company believes controllable working capital is a meaningful measurement of the effectiveness of its working capital management. Controllable working capital is defined as accounts receivable plus inventory less accounts payable.
Supreme (AMEX:STS)
Historical Stock Chart
From Aug 2024 to Sep 2024
Supreme (AMEX:STS)
Historical Stock Chart
From Sep 2023 to Sep 2024