STS Supreme Industries, Inc. (delisted)

First-Quarter Net Income Increases 94% to $3.8 Million, Versus $1.9 Million in 2015

Diluted Earnings per Share Doubles to $0.22, Compared with $0.11 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 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.

News releases and other information on the Company are available online at: www.supremecorp.com or www.b2i.us/irpass.asp?BzID=1482&to=ea&s=0

—FINANCIAL RESULTS FOLLOW—

  Supreme Industries, Inc. and Subsidiaries Condensed Consolidated Statements of Income (Unaudited)     Three Months Ended Mar. 26, 2016     Mar. 28, 2015 Net Sales $ 69,449,903 $ 63,295,371 Cost of sales   54,289,246     51,850,345   Gross profit 15,160,657 11,445,026   Selling, general and administrative expenses 9,414,951 8,420,650 Other income   (36,476 )   (78,158 ) Operating income 5,782,182 3,102,534   Interest expense   182,829     243,415   Income before income taxes 5,599,353 2,859,119   Income tax expense   1,840,000     926,000   Net Income $ 3,759,353   $ 1,933,119  

 

Income per share:

Basic $ 0.23 $ 0.12 Diluted 0.22 0.11

 

Shares used in the computation of income per share:

Basic 16,682,812 16,569,115 Diluted 17,127,836 16,905,228    

Supreme Industries, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets (Unaudited)         Mar. 26, 2016 Dec. 26, 2015 Assets Current assets $ 79,071,843 $ 74,933,534 Property, plant and equipment, net 45,789,560 46,186,364 Other assets   533,585   609,815 Total assets $ 125,394,988 $ 121,729,713   Liabilities Current liabilities $ 24,129,020 $ 23,335,811 Long-term liabilities   9,361,153   9,805,473 Total liabilities 33,490,173 33,141,284 Total stockholders' equity   91,904,815   88,588,429 Total liabilities and stockholders' equity $ 125,394,988 $ 121,729,713  

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Investor Relations:Supreme Investor RelationsMatthew J. Dennis, CFA574-228-4130