First Half Operating Income Advances 40% on 17%
Net Sales Growth
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 second quarter ended June 27, 2015.
2015 Second Quarter Results
Benefiting from strong demand for medium-duty trucks,
consolidated net sales from continuing operations increased 15.4%
to $82.6 million in the second quarter, compared with $71.6 million
during same quarter last year. Diluted earnings per share increased
to $0.26 per share, up from $0.25 per share in the second quarter
of 2014. Net income of $4.3 million was unchanged from last
year.
As a result of the higher sales volume, second quarter gross
profit in 2015 increased to $15.5 million, up from $14.6 million in
2014. As a percentage of sales, second quarter gross margin was
18.7%, compared with 20.5% in last year’s second quarter. The
margin contraction was due to product mix and a higher proportion
of fleet sales in the current year which yield a lower gross margin
percentage. Second quarter operating income was $6.4 million for
both 2015 and 2014.
“As expected, sales of medium-duty work trucks accelerated in
the second quarter,” said Mark Weber, President and Chief Executive
Officer. “As our restructured sales organization gains momentum,
Supreme has begun to increase market share with targeted national
accounts. This positive customer reaction reinforces our strategy
of implementing a more customer-centric value proposition.”
2015 First Half Results
In the first half of 2015, consolidated net sales from
continuing operations increased 16.8% to $145.9 million, compared
with $124.9 million in the prior year. Higher net sales in 2015
were the result of increased truck sales, which more than offset a
sales decline of trolleys and specialty vehicles.
Gross margin, as a percentage of sales, expanded to 18.4% in the
six month period, compared with 18.0% in 2014’s first half. This,
combined with the higher sales volume, resulted in first half gross
profit increasing more than 19.5% to $26.9 million, compared with
$22.5 million in last year’s comparable period. Severe weather and
a shortage of available chassis negatively impacted last year’s
results and these factors did not repeat in 2015. First half
operating income increased 39.7% to $9.5 million in 2015, compared
with $6.8 million in 2014.
The Company’s discontinued shuttle bus business was sold in the
first quarter of 2014 and generated a $1.6 million after-tax net
loss in that period. Including the impact from discontinued
operations on last year’s results, net income improved to $6.3
million, or $0.37 per diluted share, in the first half of 2015,
compared with net income of $2.9 million, or $0.17 per diluted
share last year. Excluding the impact from discontinued operations,
net income improved to $6.3 million, or $0.37 per diluted share, up
from $4.5 million, or $0.26 per diluted share in 2014’s first
half.
“Compared with last year, new order intake was stronger in the
second quarter of 2015 across both retail and fleet work truck
segments. We are optimistic as we enter the second half of the year
with an improved backlog and positive order intake trends, ” Weber
said.
Sales order backlog at the end of the second quarter stood at
$74.0 million, up more than 30% compared with $56.8 million, at the
end of last year’s second quarter.
Due to the increased sales volume, working capital increased to
$49.3 million at June 27, 2015, compared with $44.4 million at
December 27, 2014. The Company ended the quarter with $3.1 million
in cash and cash equivalents, and $8.7 million in debt.
Stockholders’ equity increased to $87.0 million at June 27, 2015,
compared with $81.0 million at December 27, 2014, increasing book
value per share to $5.25 at quarter end, compared with $4.94 at the
end of last year.
Conference Call Information
A conference call will be held Friday, July 24, 2015, at 9:00
a.m. ET to review the second quarter and first half results. To
participate in the live call, dial 888-349-0089 (International:
412-902-4296) 10 minutes before the call begins, or 8:50 a.m. ET.
The conference ID is 10069497. 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.
News releases and other information on the company are available
online at: www.supremecorp.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 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 Six Months
Ended June 27, June 28, June 27,
June 28, 2015 2014 2015 2014 Net
sales $ 82,595,230 $ 71,552,068 $ 145,890,601 $ 124,945,625 Cost of
sales 67,127,172 56,914,412 118,977,517
102,417,462
Gross profit 15,468,058
14,637,656 26,913,084 22,528,163 Selling, general and
administrative expenses 9,280,504 8,301,473 17,701,154 15,821,463
Other income (220,357 ) (61,970 ) (298,515 )
(99,195 )
Operating income 6,407,911 6,398,153 9,510,445
6,805,895 Interest expense 28,247 77,335
271,662 153,446
Income from continuing operations
before income taxes
6,379,664 6,320,818 9,238,783 6,652,449 Income tax expense
2,033,000 2,065,386 2,959,000
2,173,000
Income from continuing operations
4,346,664 4,255,432 6,279,783
4,479,449 Discontinued operations: Gain on
sale of discontinued operations, net of tax - - - 87,036 Operating
loss of discontinued operations, net of tax - -
- (1,654,459 ) Loss of discontinued Bus
operations, net of tax - - -
(1,567,423 )
Net income $ 4,346,664 $
4,255,432 $ 6,279,783 $ 2,912,026
Basic income (loss) per share: Income from continuing
operations $ 0.26 $ 0.26 $ 0.38 $ 0.27 Loss from discontinued
operations - - - (0.09 )
Net income $ 0.26 $ 0.26 $ 0.38 $ 0.18
Diluted income (loss) per share: Income from continuing
operations $ 0.26 $ 0.25 $ 0.37 $ 0.26 Loss from discontinued
operations - - - (0.09 )
Net income $ 0.26 $ 0.25 $ 0.37 $ 0.17
Shares used in the computation of
income (loss) per share:
Basic 16,641,955 16,341,887 16,586,469 16,258,466 Diluted
16,992,259 16,757,781 16,912,433 16,705,887
Supreme Industries, Inc. and
Subsidiaries
Condensed Consolidated Balance Sheets (Unaudited)
Jun. 27, 2015 Dec. 27, 2014
Assets Current assets $ 67,923,794 $ 63,101,485 Property,
plant and equipment, net 47,906,952 46,925,534 Other assets
762,275 914,735
Total assets $ 116,593,021 $
110,941,754
Liabilities Current liabilities $
18,652,137 $ 18,652,523 Long-term liabilities 10,891,475
11,256,826
Total liabilities 29,543,612 29,909,349
Total stockholders' equity 87,049,409
81,032,405
Total liabilities and stockholders' equity $
116,593,021 $ 110,941,754
View source
version on businesswire.com: http://www.businesswire.com/news/home/20150723006406/en/
Supreme Investor RelationsMatthew J. Dennis, CFA,
574-228-4130
Supreme (AMEX:STS)
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