CHARLOTTE, Mich., Oct. 31, 2018 /PRNewswire/ -- Spartan
Motors, Inc. (NASDAQ: SPAR) ("Spartan" or the "Company"), a global
leader in specialty chassis and vehicle design, manufacturing and
assembly, today reported operating results for the third quarter
ended September 30,
2018.
Third Quarter 2018 Overview
For the third quarter of 2018 compared to the third quarter of
2017 the results reflect strong revenue growth and continued
profitability from all three business segments. However, the
results were negatively impacted by industry-wide headwinds,
including tariff-driven increases in commodity and component costs,
chassis shortages, supplier component delays, freight costs and
disruptions, and labor shortages, which resulted in production and
labor inefficiencies and shipment delays.
- Sales increased $37.0 million,
or 19.6%, to $226.2 million, from
$189.2 million.
- Gross profit margin decreased 350 basis points to 11.6% of
sales, from 15.1% of sales.
- Net income decreased $8.3
million, or 61.5%, to $5.2
million, or $0.15 per share,
from $13.5 million, or $0.38 per share. The prior year net income
includes the benefit from a $6.3
million, or $0.18 per share,
tax valuation allowance adjustment due to the Company's improved
financial condition.
- Adjusted EBITDA decreased 17.8% to $10.6 million, or 4.7% of sales, from
$12.9 million, or 6.8% of
sales.
- Adjusted net income decreased $1.4
million, or 18.9%, to $6.0
million, or $0.17 per share,
from $7.4 million, or $0.21 per share, which excludes the $6.3 million, or $0.18 per share, tax valuation allowance
adjustment.
- Consolidated backlog, excluding the multi-year USPS truck
body order at September 30, 2018
totaled $325.9 million, essentially
flat, compared to $323.4 million at
September 30, 2017. Including the
USPS order, consolidated backlog, totaled $484.9 million compared to $537.7 million a year ago.
Notes: As of January 1, 2018,
the Company has adopted the new Revenue Recognition Standard ("ASC
606") using the modified retrospective transition method. The
adoption of ASC 606 decreased third quarter reported consolidated
sales by $4.9 million, decreased net
income by $0.2 million, and reduced
reported consolidated backlog by $32.2
million. For more details regarding ASC 606 and its
impact on the Company's financial results, see the Company's
quarterly report on Form 10-Q for the quarter ended September 30, 2018.
"Our third quarter sales were up significantly year-over-year
and all three of our segments remained profitable. Despite
that progress, unexpected industry-wide headwinds negatively
impacted our profitability for the period," said Daryl Adams, President and Chief Executive
Officer. "As it stands, our results were hindered by multiple
external factors, which resulted in production and labor
inefficiencies and shipment delays. If not for the
significant industry-wide headwinds and the operating issues we
sustained as a result, we would have exceeded our internal
operating plan for the quarter."
Fleet Vehicles and Services (FVS)
FVS segment
sales increased $39.8 million, or
50.6%, to $118.4 million from
$78.6 million. The revenue increase
was primarily due to increased volume relating to USPS truck body,
Reach® vehicle, and upfits. The adoption of ASC 606
increased reported segment sales by $0.9
million.
Adjusted EBITDA decreased $1.6
million to $7.2 million, or
6.1% of sales, from $8.8 million, or
11.2% of sales, a year ago. The adjusted EBITDA decrease is
primarily due to unfavorable sales mix, tariff-driven increases in
commodity and component costs, chassis shortages, supplier
component delays, and increased freight costs and
disruptions. These factors resulted in production and labor
inefficiencies as well as unit shipment delays. The
adoption of ASC 606 had minimal impact on reported segment
adjusted EBITDA.
The segment backlog, excluding the multi-year USPS truck body
order at September 30, 2018, totaled
$116.2 million, up 48.6%, compared to
$78.2 million at September 30, 2017. Including the USPS
order, segment backlog totaled $275.2
million compared to $292.5
million a year ago. The adoption of ASC 606 reduced
reported segment backlog by $9.3
million.
Emergency Response (ER)
ER segment sales
decreased $5.6 million to
$60.3 million, or 8.5%, from
$65.9 million. The decrease is
primarily due to lower volume and unfavorable sales mix, partially
offset by pricing changes realized in 2018. The adoption
of ASC 606 decreased reported segment sales by $5.8 million.
Adjusted EBITDA decreased $1.9
million to $0.6 million, or
1.0% of sales, from $2.5 million, or
3.8% of sales, a year ago, primarily due to reduced volume,
tariff-driven increases in commodity and component costs and
supplier component delays resulting in production and labor
inefficiencies. The adoption of ASC 606 decreased
reported segment adjusted EBITDA by $0.3
million.
The segment backlog at September 30,
2018, totaled $175.7 million,
down 17.6%, compared to $213.3
million at September 30,
2017. The adoption of ASC 606 reduced reported segment
backlog by $22.8 million.
Specialty Chassis and Vehicles (SCV)
SCV
segment sales increased 5.5% to $51.7
million from $49.0 million a
year ago. Revenues were driven mainly by a $1.9 million increase in luxury motor coach
chassis sales, due to increased unit volume driven by market share
gains and continued industry demand.
Adjusted EBITDA increased $0.8
million to $5.9 million, or
11.4% of sales, from $5.1 million, or
10.5% of sales, a year ago, mainly due to the strong demand for
luxury motor coach chassis, partially offset by tariff-driven
increases in commodity and component costs, increased freight costs
and disruptions, and chassis component and labor shortages,
resulting in production and labor inefficiencies.
The segment backlog at September 30,
2018, totaled $34.0 million,
up 6.6%, compared to $31.9 million at
September 30, 2017.
2018 Outlook
"The underlying business
fundamentals in each of our business segments remain strong, as
indicated by our strong backlog, despite the increased
industry-wide headwinds," said Matt
Long, Interim Chief Financial Officer. "We remain
encouraged by the continued strength of orders across all of our
business segments. As we head into the remainder of the year,
we have taken proactive steps and cost reduction actions to help
mitigate the unfavorable market conditions experienced in the third
quarter."
Based on year-to-date results, the Company is adjusting its
previous guidance for 2018 as follows:
- Revenue to be in the range of $790.0 - $815.0
million, unchanged
- Net income of $14.4 -
$16.4 million, changed from
$20.2 - $22.4
million
- Adjusted EBITDA of $29.3 -
$31.3 million, changed
from $39.0 - $42.0 million
- Effective tax rate of approximately 24.5%
- Earnings per share of $0.41 -
$0.47, changed from $0.58 - $0.64,
assuming approximately 35.3 million shares outstanding
- Adjusted earnings per share of $0.42 - $0.48,
changed from $0.60 - $0.66
"While we expect near-term growth and profitability challenges
from these recent headwinds to impact the fourth quarter, our
long-term expectations have not changed," Adams concluded.
"Our long-term growth strategy, fueled by continued demand for our
last-mile delivery vehicles, remains strong. We see
opportunities for sustained revenue and margin expansion through
2020 and beyond, although it may take longer than originally
anticipated. We remain focused on executing our overall
strategic plan, including our capital allocation strategy, which
prioritizes the funding of our growth initiatives, including
acquisitions, and increasing shareholder value."
Conference Call, Webcast, Investor Presentation and
Investor Information
Spartan Motors will host a
conference call for analysts and portfolio managers at 10 a.m. EDT today to discuss these results and
current business trends. The conference call and webcast will
be available via:
Webcast: www.spartanmotors.com/webcasts
Conference Call: 1-844-868-8845 (domestic) or 412-317-6591
(international); passcode: 10124900
For more information about Spartan, please visit
www.spartanmotors.com.
About Spartan Motors
Spartan Motors, Inc. is a leading
designer, engineer, manufacturer and marketer of a broad range of
specialty vehicles, specialty chassis, vehicle bodies and parts for
the fleet and delivery, recreational vehicle (RV), emergency
response, defense forces and contract assembly (light/medium duty
truck) markets. The Company's brand names — Spartan Motors, Spartan
Specialty Vehicles, Spartan Emergency Response, Spartan Parts and
Accessories, Smeal and its family of brands, including Ladder
Tower™ and UST®; and Utilimaster®, a Spartan Motors Company — are
known for quality, durability, performance, customer service and
Second-to-market innovation. The Company employs approximately
2,300 associates, and operates facilities in Michigan, Indiana, Pennsylvania, Missouri, Nebraska, South
Carolina, South Dakota;
Saltillo, Mexico; and Lima, Peru. Spartan reported sales of
$707 million in 2017. Visit Spartan
Motors at www.spartanmotors.com.
This release contains several forward-looking statements that
are not historical facts, including statements concerning our
business, strategic position, financial projections, financial
strength, future plans, objectives, and the performance of our
products and operations. These statements can be identified
by words such as "believe," "expect," "intend," "potential,"
"future," "may," "will," "should," and similar expressions
regarding future expectations. These forward-looking
statements involve various known and unknown risks, uncertainties,
and assumptions that are difficult to predict with regard to
timing, extent, and likelihood. Therefore, actual performance
and results may materially differ from what may be expressed or
forecasted in such forward-looking statements. Factors that could
contribute to these differences include operational and other
complications that may arise affecting the implementation of our
plans and business objectives; continued pressures caused by
economic conditions and the pace and extent of the economic
recovery; challenges that may arise in connection with the
integration of new businesses or assets we acquire or the
disposition of assets; restructuring of our operations, and/or our
expansion into new geographic markets; issues unique to government
contracting, such as competitive bidding processes, qualification
requirements, and delays or changes in funding; disruptions within
our dealer network; changes in our relationships with major
customers, suppliers, or other business partners, including Isuzu;
changes in the demand or supply of products within our markets or
raw materials needed to manufacture those products; and changes in
laws and regulations affecting our business. Other factors
that could affect outcomes are set forth in our Annual Report on
Form 10-K and other filings we make with the Securities and
Exchange Commission (SEC), which are available at www.sec.gov or
our website. All forward-looking statements in this release
are qualified by this paragraph. Investors should not place
undue reliance on forward-looking statements as a prediction of
actual results. We undertake no obligation to publicly update
or revise any forward-looking statements in this release, whether
as a result of new information, future events, or
otherwise.
CONTACT:
Juris Pagrabs
Group Treasurer & IR
Spartan Motors, Inc.
(517) 997-3862
Spartan Motors,
Inc. and Subsidiaries
Condensed
Consolidated Balance Sheets
(In thousands, except
par value)
(Unaudited)
|
|
|
|
|
|
|
|
September 30,
2018
|
|
December 31,
2017
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
15,667
|
|
$
33,523
|
Accounts receivable,
less allowance of $139 and $139
|
109,946
|
|
83,147
|
Contract
assets
|
43,576
|
|
-
|
Inventories
|
75,759
|
|
77,692
|
Other current
assets
|
4,828
|
|
4,425
|
Total current
assets
|
249,776
|
|
198,787
|
|
|
|
|
Property, plant
and equipment, net
|
55,547
|
|
55,177
|
Goodwill
|
27,417
|
|
27,417
|
Intangible assets,
net
|
8,815
|
|
9,427
|
Other
assets
|
2,713
|
|
3,072
|
Net deferred tax
asset
|
5,627
|
|
7,284
|
TOTAL
ASSETS
|
$
349,895
|
|
$
301,164
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
92,598
|
|
$
40,643
|
Accrued
warranty
|
16,243
|
|
18,268
|
Accrued compensation
and related taxes
|
9,236
|
|
13,264
|
Deposits from
customers
|
15,074
|
|
25,422
|
Other current
liabilities and accrued expenses
|
9,946
|
|
12,071
|
Current portion of
long-term debt
|
62
|
|
64
|
Total current
liabilities
|
143,159
|
|
109,732
|
|
|
|
|
Other non-current
liabilities
|
4,452
|
|
5,238
|
Long-term debt,
less current portion
|
18,560
|
|
17,925
|
Total
liabilities
|
166,171
|
|
132,895
|
Commitments and
contingencies
|
|
|
|
Shareholders'
equity:
|
|
|
|
Preferred stock, no
par value: 2,000 shares authorized (none issued)
|
-
|
|
-
|
Common stock, $0.01
par value; 80,000 shares authorized; 35,170 and 35,097
outstanding
|
352
|
|
351
|
Additional paid in
capital
|
80,086
|
|
79,721
|
Retained
earnings
|
103,944
|
|
88,855
|
Total Spartan
Motors, Inc. shareholders' equity
|
184,382
|
|
168,927
|
Non-controlling interest
|
(658)
|
|
(658)
|
Total shareholders'
equity
|
183,724
|
|
168,269
|
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY
|
$
349,895
|
|
$
301,164
|
|
|
|
|
Spartan Motors,
Inc. and Subsidiaries
Condensed
Consolidated Statements of Operations
(In thousands, except
per share data)
(Unaudited)
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
Sales
|
$ 226,183
|
|
$ 189,215
|
|
$
583,203
|
|
$
526,029
|
Cost of products
sold
|
199,965
|
|
160,564
|
|
508,457
|
|
461,327
|
Restructuring
charges
|
25
|
|
-
|
|
25
|
|
156
|
Gross
profit
|
26,193
|
|
28,651
|
|
74,721
|
|
64,546
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development
|
2,117
|
|
1,598
|
|
5,323
|
|
5,265
|
Selling, general and
administrative
|
17,251
|
|
17,057
|
|
54,163
|
|
48,160
|
Restructuring
charges
|
476
|
|
232
|
|
1,292
|
|
1,044
|
Total operating expenses
|
19,844
|
|
18,887
|
|
60,778
|
|
54,469
|
|
|
|
|
|
|
|
|
Operating
income
|
6,349
|
|
9,764
|
|
13,943
|
|
10,077
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest
expense
|
(225)
|
|
(189)
|
|
(817)
|
|
(582)
|
Interest and other
income
|
156
|
|
159
|
|
2,581
|
|
438
|
Total other income
(expense)
|
(69)
|
|
(30)
|
|
1,764
|
|
(144)
|
|
|
|
|
|
|
|
|
Income before
taxes
|
6,280
|
|
9,734
|
|
15,707
|
|
9,933
|
|
|
|
|
|
|
|
|
Taxes
|
1,037
|
|
(3,736)
|
|
2,527
|
|
(3,561)
|
|
|
|
|
|
|
|
|
Net Income
|
5,243
|
|
13,470
|
|
13,180
|
|
13,494
|
|
|
|
|
|
|
|
|
Less: net loss
attributable to non-controlling interest
|
-
|
|
-
|
|
-
|
|
(1)
|
|
|
|
|
|
|
|
|
Net income
attributable to Spartan Motors Inc.
|
$
5,243
|
|
$
13,470
|
|
$
13,180
|
|
$
13,495
|
|
$
0.15
|
|
$
0.38
|
|
$
0.37
|
|
$
0.39
|
Basic net earnings
per share
|
|
|
|
|
$
0.15
|
|
$
0.38
|
|
$
0.37
|
|
$
0.39
|
Diluted net
earnings per share
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted
average common shares outstanding
|
35,182
|
|
35,105
|
|
35,179
|
|
34,882
|
|
|
|
|
|
|
|
|
Diluted weighted
average common shares outstanding
|
35,182
|
|
35,105
|
|
35,179
|
|
34,882
|
Spartan Motors,
Inc. and Subsidiaries
|
Sales and Other
Financial Information by Business Segment
|
(Unaudited)
|
|
Three Months Ended
September 30, 2018 (in thousands of dollars)
|
|
|
|
Business
Segments
|
|
|
|
|
|
|
Fleet
Vehicles and
Services
|
|
Emergency
Response
|
|
Specialty
Chassis and
Vehicles
|
|
Other
|
|
Consolidated
|
Fleet vehicle
sales
|
$
91,984
|
|
$
-
|
|
$
4,188
|
|
$
(4,188)
|
|
$
91,984
|
Emergency response
vehicle sales
|
-
|
|
57,549
|
|
-
|
|
-
|
|
57,549
|
Motorhome chassis
sales
|
-
|
|
-
|
|
38,892
|
|
-
|
|
38,892
|
Other specialty
chassis and vehicles
|
-
|
|
-
|
|
5,453
|
|
-
|
|
5,453
|
Aftermarket parts and
assemblies
|
26,449
|
|
2,714
|
|
3,142
|
|
-
|
|
32,305
|
Total
sales
|
|
$
118,433
|
|
$
60,263
|
|
$
51,675
|
|
$
(4,188)
|
|
$
226,183
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
7,243
|
|
$
601
|
|
$
5,919
|
|
$
(3,180)
|
|
$
10,583
|
|
|
Spartan Motors,
Inc. and Subsidiaries
|
Sales and Other
Financial Information by Business Segment
|
(Unaudited)
|
|
Three Months Ended
September 30, 2017 (in thousands of dollars)
|
|
|
|
Business
Segments
|
|
|
|
|
|
|
Fleet
Vehicles and
Services
|
|
Emergency
Response
|
|
Specialty
Chassis and
Vehicles
|
|
Other
|
|
Consolidated
|
Fleet vehicle
sales
|
$
66,850
|
|
$
-
|
|
$
4,312
|
|
$
(4,312)
|
|
$
66,850
|
Emergency response
vehicle sales
|
-
|
|
63,369
|
|
-
|
|
-
|
|
63,369
|
Motorhome chassis
sales
|
-
|
|
-
|
|
37,034
|
|
-
|
|
37,034
|
Other specialty
chassis and vehicles
|
-
|
|
-
|
|
4,738
|
|
-
|
|
4,738
|
Aftermarket parts and
assemblies
|
11,787
|
|
2,503
|
|
2,934
|
|
-
|
|
17,224
|
Total
sales
|
|
$
78,637
|
|
$
65,872
|
|
$
49,018
|
|
$
(4,312)
|
|
$
189,215
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
8,785
|
|
$
2,501
|
|
$
5,149
|
|
$
(3,541)
|
|
$
12,894
|
|
|
|
|
|
|
|
|
|
|
|
|
Spartan Motors,
Inc. and Subsidiaries
|
|
Sales and Other
Financial Information by Business Segment
|
|
(Unaudited)
|
|
|
|
|
Period End
Backlog (amounts in thousands of
dollars)
|
|
|
Sep. 30,
2018
|
|
June 30,
2018
|
|
Mar. 31,
2018
|
|
Dec. 31,
2017
|
|
Sept. 30,
2017
|
|
|
Fleet Vehicles and
Services*
|
$
275,216
|
|
$
313,374
|
|
$
335,325
|
|
$
267,698
|
|
$
292,540
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Emergency
Response
Vehicles*
|
175,699
|
|
175,603
|
|
189,627
|
|
233,583
|
|
213,334
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Motorhome Chassis *
|
32,137
|
|
33,511
|
|
28,463
|
|
33,191
|
|
31,179
|
|
|
Other Vehicles
|
-
|
|
-
|
|
36
|
|
-
|
|
-
|
|
|
Aftermarket Parts and
Assemblies
|
1,861
|
|
1,612
|
|
1,164
|
|
615
|
|
694
|
|
|
Total Specialty
Chassis and
Vehicles
|
33,998
|
|
35,123
|
|
29,663
|
|
33,806
|
|
31,873
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Backlog
|
$
484,913
|
|
$
524,100
|
|
$
554,615
|
|
$
535,087
|
|
$
537,747
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Anticipated time to
fill backlog orders at September 30, 2018; 12 months or less for
emergency response vehicles; 3 months or less for motorhome
chassis; 8 months or less for fleet vehicles and services; and 1
month or less for other products.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Non-GAAP Financial Measures
This
release contains adjusted EBITDA (earnings before interest, taxes,
depreciation and amortization), adjusted net income, adjusted
earnings per share, forecasted adjusted EBITDA, and forecasted
adjusted earnings per share, which are all non-GAAP financial
measures. These non-GAAP measures are calculated by excluding items
that we believe to be infrequent or not indicative of our
continuing operating performance. For the periods covered by this
release such items include expenses associated with restructuring
actions taken to improve the efficiency and profitability of
certain of our operations, various items related to business
acquisition and strategic planning activities, and the impact that
our deferred tax asset valuation allowance that we recorded in 2015
has had on our tax expense and net income in 2017.
We present the non-GAAP measures adjusted EBITDA, adjusted net
income and adjusted earnings per share because we consider them to
be important supplemental measures of our performance. The
presentation of adjusted EBITDA enables investors to better
understand our operations by removing items that we believe are not
representative of our continuing operations and may distort our
longer term operating trends. The presentation of adjusted net
income and adjusted earnings per share enables investors to better
understand our operations by removing the impact of tax
adjustments, including the impact that our deferred tax asset
valuation allowance that we recorded in 2015 has had on our tax
expense and net income in 2017, and other items that we believe are
not indicative of our longer term operating trends. We believe
these measures to be useful to improve the comparability of our
results from period to period and with our competitors, as well as
to show ongoing results from operations distinct from items that
are infrequent or not indicative of our continuing operating
performance. We believe that presenting these non-GAAP measures is
useful to investors because it permits investors to view
performance using the same tools that management uses to budget,
make operating and strategic decisions, and evaluate our historical
performance. We believe that the presentation of these non-GAAP
measures, when considered together with the corresponding GAAP
financial measures and the reconciliations to those measures,
provides investors with additional understanding of the factors and
trends affecting our business than could be obtained in the absence
of these disclosures.
Our management uses adjusted EBITDA to evaluate the performance
of and allocate resources to our segments. In addition, non-GAAP
measures are used by management to review and analyze our operating
performance and, along with other data, as internal measures for
setting annual budgets and forecasts, assessing financial
performance, and comparing our financial performance with our
peers. Adjusted EBITDA is also used, along with other financial and
non-financial measures, for purposes of determining annual and
long-term incentive compensation for our management team.
Financial Summary
(Non-GAAP)
|
Consolidated
|
(In thousands, except
per share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September
30,
|
|
Spartan Motors,
Inc.
|
|
2018
|
|
|
2017
|
|
Net income
attributable to Spartan Motors, Inc.
|
|
$
5,243
|
|
|
$
13,470
|
|
Add
(subtract):
|
|
|
|
|
|
|
Restructuring
charges
|
|
501
|
|
|
232
|
|
Impact of acquisition
on timing of chassis revenue recognition
|
|
-
|
|
|
108
|
|
Acquisition related
expenses
|
|
267
|
|
|
354
|
|
Recall
expense
|
|
112
|
|
|
(368)
|
|
Long-term strategic
planning expenses
|
|
277
|
|
|
-
|
|
Litigation
settlement
|
|
321
|
|
|
-
|
|
Deferred tax asset
valuation allowance
|
|
(373)
|
|
|
(6,295)
|
|
Tax effect of
adjustments
|
|
(360)
|
|
|
(98)
|
|
Adjusted net income
attributable to Spartan Motors, Inc.
|
|
$
5,988
|
|
|
$
7,403
|
|
|
|
|
|
|
|
|
Net income
attributable to Spartan Motors, Inc.
|
|
$
5,243
|
|
|
$
13,470
|
|
Add
(subtract):
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
2,600
|
|
|
2,645
|
|
Taxes on
income
|
|
1,037
|
|
|
(3,736)
|
|
Interest
expense
|
|
225
|
|
|
189
|
|
EBITDA
|
|
$
9,105
|
|
|
$
12,568
|
|
|
|
|
|
|
|
|
Add
(subtract):
|
|
|
|
|
|
|
Restructuring
charges
|
|
501
|
|
|
232
|
|
Impact of acquisition
on timing of chassis revenue recognition
|
|
-
|
|
|
108
|
|
Acquisition related
expenses
|
|
267
|
|
|
354
|
|
Recall
expense
|
|
112
|
|
|
(368)
|
|
Long-term strategic
planning expenses
|
|
277
|
|
|
-
|
|
Litigation
settlement
|
|
321
|
|
|
-
|
|
Adjusted
EBITDA
|
|
$
10,583
|
|
|
$
12,894
|
|
|
|
|
|
|
|
|
Diluted net earnings
per share
|
|
$
0.15
|
|
|
$
0.38
|
|
Add
(subtract):
|
|
|
|
|
|
|
Restructuring
charges
|
|
0.01
|
|
|
0.01
|
|
Litigation
settlement
|
|
0.01
|
|
|
-
|
|
Acquisition related
expenses
|
|
0.01
|
|
|
0.01
|
|
Recall
expense
|
|
-
|
|
|
(0.01)
|
|
Long-term strategic
planning expenses
|
|
0.01
|
|
|
-
|
|
Deferred tax asset
valuation allowance
|
|
(0.01)
|
|
|
(0.18)
|
|
Tax effect of
adjustments
|
|
(0.01)
|
|
|
-
|
|
Adjusted diluted net
earnings per share
|
|
$
0.17
|
|
|
$
0.21
|
|
Financial Summary
(Non-GAAP)
|
(In
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
|
|
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
Total segment
adjusted EBITDA
|
|
$
13,763
|
|
$
16,435
|
|
Add
(subtract):
|
|
|
|
|
|
|
Interest
expense
|
|
|
(225)
|
|
(189)
|
|
Depreciation and
amortization expense
|
|
(2,600)
|
|
(2,645)
|
|
Restructuring
expense
|
|
|
(501)
|
|
(232)
|
|
Acquisition
expense
|
|
|
(267)
|
|
(354)
|
|
Recall
expense
|
|
(112)
|
|
368
|
|
Litigation
Settlement
|
|
(321)
|
|
-
|
|
Long-term strategic
planning expenses
|
|
(277)
|
|
-
|
|
Impact of acquisition
on timing of chassis revenue recognition
|
|
-
|
|
(108)
|
|
Unallocated corporate
expenses
|
|
|
(3,180)
|
|
(3,541)
|
|
Consolidated income
before taxes
|
|
|
$
6,280
|
|
$
9,734
|
|
Financial Summary
(Non-GAAP)
|
|
Consolidated
|
|
|
|
(In thousands, except
per share data)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Forecast
Year Ending December 31, 2018
|
|
|
|
Low
|
|
Mid
|
|
High
|
|
Net income
attributable to Spartan Motors, Inc.
|
|
$
14,448
|
|
$
15,448
|
|
$
16,448
|
|
Add:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
10,310
|
|
10,310
|
|
10,310
|
|
Interest
expense
|
|
967
|
|
967
|
|
967
|
|
Taxes
|
|
2,609
|
|
2,609
|
|
2,609
|
|
EBITDA
|
|
28,334
|
|
29,334
|
|
30,334
|
|
|
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
|
|
Restructuring
charges
|
|
966
|
|
966
|
|
966
|
|
Adjusted
EBITDA
|
|
$
29,300
|
|
$
30,300
|
|
$
31,300
|
|
|
|
|
|
|
|
|
|
Earnings per
share
|
|
$
0.41
|
|
$
0.44
|
|
$
0.47
|
|
Add:
|
|
|
|
|
|
|
|
Restructuring
charges
|
|
0.03
|
|
0.03
|
|
0.03
|
|
Less tax effect of
adjustments
|
|
(0.02)
|
|
(0.02)
|
|
(0.02)
|
|
Adjusted earnings per
share
|
|
$
0.42
|
|
$
0.45
|
|
$
0.48
|
View original
content:http://www.prnewswire.com/news-releases/spartan-motors-reports-third-quarter-2018-results-300740906.html
SOURCE Spartan Motors, Inc.