Sales Increase 12% and 15% from 2014 in Third
Quarter and Nine-Months, Respectively
Income from Continuing Operations Grows 13% in
the Quarter, and 31% Year-to-Date
Supreme Industries, Inc. (NYSE MKT: STS), a leading
manufacturer of specialized commercial vehicles including truck
bodies, trolleys and specialty vehicles, today announced improved
financial results for its third quarter and nine-months ended
September 26, 2015.
2015 Third Quarter Results
Consolidated net sales in the third quarter grew to $64.8
million, compared with $58.0 million in last year’s third quarter,
an increase of 11.7%. Higher sales of dry freight and insulated
vehicles, compared with last year, accounted for the increase in
consolidated sales.
Third quarter gross profit in 2015 increased to $12.6 million,
up from $11.3 million in 2014 on higher sales. As a percentage of
net sales, third quarter gross margin of 19.5% remained unchanged
from a year ago. Material cost was favorably impacted by decreased
commodity prices including steel and aluminum, while overhead costs
were elevated due to higher group health insurance claims. Income
from continuing operations before taxes increased 11.6%, to $4.1
million in the third quarter of this year, versus $3.7 million in
last year’s third quarter.
Net income grew 13.3%, reaching $2.8 million in the third
quarter, up from $2.5 million in last year’s third quarter. Net
earnings per diluted share increased to $0.16 per share, up from
$0.15 per share in last year’s comparable quarter.
“Strong new order rates allowed us to post double-digit growth
in shipments, income and our quarter ending backlog,” said Mark
Weber, President and Chief Executive Officer. “We are well
positioned as we enter the last quarter of the year.”
2015 Nine Month Results
Consolidated net sales from continuing operations increased
15.2% in the year-to-date period, reaching $210.7 million, up from
$183.0 million in the first nine months of 2014. Higher net sales
in the first nine months of 2015 were the result of increased
retail and fleet truck sales, which more than offset a sales
decline of trolleys and specialty vehicles.
Gross profit for the nine months improved to $39.6 million from
$33.8 million over the 2014 nine months, an increase of 17.0%. As a
percentage of net sales, gross margin expanded from 18.5% last year
to 18.8% in the 2015 nine-month period. The favorable absorption
from the higher sales volume was partially offset by product mix as
the Company shipped a higher proportion of fleet products, which
carry a lower gross margin. Severe weather and a shortage of
available chassis also negatively impacted last year’s results.
Income from continuing operations before taxes increased 29.1% in
2015, up to $13.4 million compared with $10.4 million last
year.
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 $9.1
million, or $0.53 per diluted share, for the nine-month period,
compared with net income of $5.4 million, or $0.32 per diluted
share last year. Excluding the impact from discontinued operations,
net income improved to $9.1 million, or $0.53 per diluted share, in
the nine-months, up from $6.9 million, or $0.41 per diluted share,
in the same period last year.
“The combined performance of our sales and operations teams
resulted in strong third quarter orders for trucks and specialty
vehicles. It is very encouraging to realize notable year-over-year
growth in our backlog,” Weber added.
At the end of the third quarter of 2015 consolidated order
backlog was $74.4 million, 46.7% higher than the $50.8 million
backlog at the end of last year’s third quarter. Compared with last
year, new order intake was stronger in the third quarter of 2015
across both retail and fleet work truck product lines.
Due to the increased sales volume, working capital increased to
$52.4 million at September 26, 2015, compared with $44.4 million at
December 27, 2014. The Company ended the quarter with $8.7 million
in cash and cash equivalents, and $8.5 million in total debt.
Stockholders’ equity increased to $89.5 million at September 26,
2015, compared with $81.0 million at December 27, 2014, increasing
tangible book value per share to $5.38 at quarter end, compared
with $4.94 at the end of last year.
Conference Call Information
A conference call will be held Friday, October 23, 2015, at 9:00
a.m. ET to review the third quarter and nine-month results. To
participate in the live call, please dial 888-349-0089
(International: 412-902-4296) 10 minutes before the call begins, or
8:50 a.m. ET. The conference ID is 10074780. 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 Nine Months
Ended Sept. 26, Sept. 27, Sept. 26,
Sept. 27, 2015 2014 2015 2014
Net sales $ 64,818,118 $ 58,023,699 $ 210,708,719 $ 182,969,324
Cost of sales 52,175,728 46,736,407
171,153,245 149,153,869
Gross profit
12,642,390 11,287,292 39,555,474 33,815,455 Selling, general
and administrative expenses 8,693,633 7,783,492 26,394,787
23,604,955 Other income (110,133 ) (299,148 )
(408,648 ) (398,343 )
Operating income 4,058,890
3,802,948 13,569,335 10,608,843 Interest (income) expense
(72,004 ) 101,983 199,658
255,429
Income from continuing operations
before income taxes
4,130,894 3,700,965 13,369,677 10,353,414 Income tax expense
1,334,000 1,232,000 4,293,000
3,405,000
Income from continuing operations
2,796,894 2,468,965 9,076,677
6,948,414 Discontinued operations: Gain on
sale of discontinued operations, net of tax - - - 87,036 Operating
loss from discontinued operations, net of tax - -
- (1,654,459 ) Loss from discontinued
operations, net of tax - - -
(1,567,423 )
Net income $ 2,796,894 $
2,468,965 $ 9,076,677 $ 5,380,991
Basic income (loss) per share: Income from continuing
operations $ 0.17 $ 0.15 $ 0.54 $ 0.42 Loss from discontinued
operations - - - (0.09 )
Net income $ 0.17 $ 0.15 $ 0.54 $ 0.33
Diluted income (loss) per share: Income from continuing
operations $ 0.16 $ 0.15 $ 0.53 $ 0.41 Loss from discontinued
operations - - - (0.09 )
Net income $ 0.16 $ 0.15 $ 0.53 $ 0.32
Shares used in the computation of income (loss)
per share:
Basic 16,764,923 16,385,403 16,663,607 16,311,598 Diluted
17,062,801 16,762,994 16,984,060 16,714,412
Supreme Industries, Inc. and Subsidiaries Condensed
Consolidated Balance Sheets (Unaudited) Sept.
26, 2015 Dec. 27, 2014 Assets Current
assets $ 72,627,373 $ 63,101,485 Property, plant and equipment, net
47,150,805 46,925,534 Other assets 686,045 914,735
Total assets $ 120,464,223 $ 110,941,754
Liabilities Current liabilities $ 20,247,952 $ 18,652,523
Long-term liabilities 10,682,720 11,256,826
Total
liabilities 30,930,672 29,909,349
Total stockholders'
equity 89,533,551 81,032,405
Total liabilities
and stockholders' equity $ 120,464,223 $ 110,941,754
View source
version on businesswire.com: http://www.businesswire.com/news/home/20151022006438/en/
Investor Relations Contact:Supreme Investor
RelationsMatthew J. Dennis, CFA, 574-228-4130
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