CHARLOTTE, Mich., Feb. 28, 2019 /PRNewswire/ -- Spartan
Motors, Inc. (NASDAQ: SPAR) ("Spartan" or the "Company"), the
North American leader in specialty vehicle manufacturing and
assembly for the commercial and retail vehicle industries
(including last-mile delivery, specialty service, and
vocation-specific upfit segments), as well as for the emergency
response and recreational vehicle markets, today reported operating
results for the fourth quarter and full year periods ending
December 31, 2018.
Full Year 2018 Highlights
For the full year 2018 compared to the full year 2017:
- Sales increased $109.1
million, or 15.4%, to $816.2
million from $707.1
million
- Net income declined $0.9
million, or 5.8%, to $15.0
million, or $0.43 per share,
from $15.9 million, or $0.46 per share
- Adjusted EBITDA increased 1.4% to $31.8 million, or 3.9% of sales, from
$31.3 million, or 4.4% of
sales
- Adjusted net income improved 14.2% to $17.0 million, or $0.48 per share, from $14.9 million, or $0.43 per share
- Consolidated backlog, excluding the exclusive
multi-year USPS truck body order at December
31, 2018, totaled $359.2
million, up 11.9%, compared to $321.1
million at December 31, 2017.
Including the USPS order, consolidated backlog totaled $473.0 million compared to $535.1 million a year ago.
Fourth Quarter 2018 Highlights
For the fourth quarter of 2018 compared to the fourth quarter of
2017:
- Sales increased $51.9 million,
or 28.7%, to $233.0 million from
$181.1 million
- Net income declined $0.6
million, or 24.9%, to $1.8
million, or $0.05 per share,
from $2.4 million, or $0.07 per share
- Adjusted EBITDA declined 28.1%, to $6.7 million, or 2.9% of sales, compared to
$9.3 million, or 5.1% of
sales
- Adjusted net income declined 10.9% to $3.4 million, or $0.10 per share, from $3.9
million, or $0.11 per
share
- Acquired Strobes-R-Us, a regional Florida-based vehicle upfitter, expanding the
Company's manufacturing footprint and addressable market in the
southeastern United
States
- To date, repurchased 191,000 shares at an average price of
$7.55 per share, or $1.4 million in the aggregate, since adopting a
10b5-1 trading plan on December 17,
2018, pursuant to the Company's one million share repurchase
authorization
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 the fourth quarter and full year
reported consolidated sales by $7.2
and $12.8 million and net income by
$0.9 million and $0.3 million, respectively, and reduced reported
consolidated backlog by $25.0
million. For more details regarding ASC 606 and its
impact on the Company's financial results, see the Company's annual
report on Form 10-K for the year ended December 31, 2018.
"Spartan generated strong top-line growth in 2018, driven by the
performance of our FVS and SCV segments, despite second-half
industry-wide headwinds that negatively impacted our
profitability," said Daryl Adams,
President and Chief Executive Officer. "I am proud of the
solid efforts from our Spartan team as we worked to mitigate the
impact of these headwinds, which resulted in a better than expected
fourth quarter."
Full Year 2018 Segment Results
For the full
year 2018 compared to the full year 2017:
Fleet Vehicles and Services (FVS)
FVS segment sales increased $136.4
million, or 54.3%, to $387.5
million from $251.1 million.
A substantial portion of the revenue increase was due to
pass-through sales on the USPS truck body order ($64.8 million) in addition to increased volume
relating to Reach® vehicle, and upfits. The adoption
of ASC 606 increased reported segment sales by $2.1 million.
Adjusted EBITDA decreased $0.3
million to $26.7 million, or
6.9% of sales, from $27.0 million, or
10.7% of sales, a year ago. The adjusted EBITDA and EBITDA as
a percent of sales decreased due primarily to unfavorable sales
mix, tariff-driven increases in commodity and component costs,
chassis shortages, supplier component delays, and increased
freight costs and disruptions. Without the pass-through
impact on sales from the USPS order, adjusted EBITDA as a percent
of sales would have been approximately 140 basis points higher, or
8.3%.
The adoption of ASC 606 had minimal impact on reported
segment adjusted EBITDA.
The segment backlog, excluding the exclusive multi-year USPS
truck body order at December 31,
2018, totaled $105.0 million,
up 95.5%, compared to $53.7 million
at December 31, 2017. Including
the USPS order, segment backlog totaled $218.8 million compared to $267.7 million a year ago, reflecting the
progress made on the USPS contract. The adoption
of ASC 606 reduced reported segment backlog by $7.3 million.
The integration of the recent strategic acquisition of regional
Florida-based upfitter,
Strobes-R-Us, remains on track and is expected to be accretive to
2019 earnings. The acquisition brings enhanced capabilities to both
Fleet Vehicle and Services and Emergency Response upfits, and
further expands Spartan's manufacturing footprint into the
southeastern United States, which
now covers the entire east coast.
Emergency Response (ER)
ER segment
sales decreased $57.2 million to
$245.6 million, or 18.9%, from
$302.9 million. Included in the
prior year sales is $23.2 million of
revenue that resulted from the timing of revenue related to the
Smeal acquisition. Excluding these sales, revenue decreased
$34.1 million, or 12.2%, over the
prior year, primarily due to lower volume reflecting an
industry-wide decline in fire apparatus sales, the acquisition
disruption and unfavorable sales mix, partially offset by pricing
changes realized in 2018. The adoption of ASC 606
decreased reported segment sales by $14.9
million.
Adjusted EBITDA decreased $2.2
million to $1.0 million, or
0.4% of sales, from $3.2 million, or
1.0% 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, partially offset by pricing.
The adoption of ASC 606 decreased reported segment
adjusted EBITDA by $0.4 million.
Sequentially, segment backlog at December
31, 2018, increased 18.0% to $234.2
million, excluding the impact of ASC 606.
Reported segment backlog at December 31,
2018 totaled $216.5 million
compared to $233.6 million at
December 31, 2017.
The adoption of ASC 606 reduced reported segment backlog
by $17.7 million.
Specialty Chassis & Vehicles
(SCV)
SCV segment sales increased
$34.4 million to $193.2 million, or 21.7%, from $158.8 million a year ago. Revenues were
driven mainly by a $24.9 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 $4.6
million to $18.7 million, or
9.7% of sales, from $14.1 million, or
8.9% 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 December 31,
2018, totaled $37.7 million,
up 11.4%, compared to $33.8 million
at December 31, 2017.
2019 Outlook
"The full-year
performance of each of our business segments reflects the hard work
and dedication of the entire team to overcome the industry-wide
headwinds we faced in 2018," said Rick
Sohm, Chief Financial Officer. "While we are aware a
few of these industry challenges are expected to continue into
2019, we are optimistic about our ability to mitigate most of these
challenges and improve the profitability of all three of our
business segments. We remain encouraged by the strength of
our backlog and the underlying business fundamentals.
Liquidity at year-end was $114
million, which is sufficient to support our strategic growth
initiatives and capital allocation strategy, including the recent
share buy-back."
Outlook for full year 2019 is expected to be as follows:
- Revenue to be in the range of $865.0 to 905.0 million
- Net income of $19.5 -
$22.6 million
- Adjusted EBITDA of $37.1 -
$41.1 million
- Effective tax rate of approximately 23%
- Earnings per share of $0.56 -
$0.64, assuming approximately 35.2
million shares outstanding
- Adjusted earnings per share of $0.57 - $0.65
Adams concluded, "Our long-term view of our business remains
positive, which is reflected in our 2019 adjusted mid-point EPS
guidance, a 27% increase over 2018. We have strong underlying
momentum in all three of our segments that will drive our future
performance, led by last mile delivery in FVS, market share gains
in SCV, and growth in contract manufacturing and aftermarket
parts. With the actions taken over the past year to improve
our leadership team and strengthen our business fundamentals, we
are encouraged in our ability to achieve improved operating results
in the coming year. The entire Spartan team
remains focused on executing our strategic plan to drive
long-term growth and increased 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. ET today to discuss these results and
current business trends. The conference call and webcast will
be available via:
Webcast: www.spartanmotors.com/webcasts or click on
"Investor Relations" then "Webcasts"
Conference Call: 1-844-868-8845 (domestic) or 412-317-6591
(international); passcode: 10128737
For more information about Spartan, please visit
www.spartanmotors.com.
About Spartan Motors
Spartan Motors, Inc. is
the North American leader in specialty vehicle manufacturing and
assembly for the commercial and retail vehicle industries
(including last-mile delivery, specialty service, and
vocation-specific upfit segments), as well as for the emergency
response and recreational vehicle markets. The Company is
organized into three core business segments, including Spartan
Fleet Vehicles and Services, Spartan Emergency Response, and
Spartan Specialty Vehicles. Today, its family of brands also
include Spartan Authorized Parts, Spartan Factory Service Centers,
Utilimaster®, Strobes-R-Us™, Smeal, Ladder Tower™, and
UST®. Spartan Motors and its go-to-market brands are
well known in their respective industries for quality, durability,
aftermarket product support, and first-to-market innovation. The
Company employs approximately 2,300 associates, and operates
facilities in Michigan,
Indiana, Pennsylvania, South
Carolina, Florida,
Missouri, Nebraska, South
Dakota; Saltillo, Mexico;
and Lima, Peru. Spartan reported
sales of $816 million in 2018.
Learn more about 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 & Director of Investor Relations
|
|
Spartan Motors,
Inc.
|
|
(517)
543-6400
|
Spartan Motors,
Inc. and Subsidiaries
|
Condensed
Consolidated Balance Sheets
|
(In thousands, except
par value)
|
(Unaudited)
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
2018
|
|
2017
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
27,439
|
|
$
33,523
|
Accounts receivable,
less allowance of $133 and $139
|
106,801
|
|
83,147
|
Contract
assets
|
36,027
|
|
-
|
Inventories
|
69,992
|
|
77,692
|
Other current
assets
|
5,070
|
|
4,425
|
Total current
assets
|
243,269
|
|
198,787
|
|
|
|
|
Property, plant
and equipment, net
|
56,567
|
|
55,177
|
Goodwill
|
33,823
|
|
27,417
|
Intangible assets,
net
|
8,611
|
|
9,427
|
Other
assets
|
2,313
|
|
3,072
|
Net Deferred tax
asset
|
7,141
|
|
7,284
|
TOTAL
ASSETS
|
$
353,784
|
|
$
301,164
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
76,399
|
|
$
40,643
|
Accrued
warranty
|
16,090
|
|
18,268
|
Accrued compensation
and related taxes
|
10,520
|
|
13,264
|
Deposits from
customers
|
22,632
|
|
25,422
|
Other current
liabilities and accrued expenses
|
12,396
|
|
12,071
|
Current portion of
long-term debt
|
60
|
|
64
|
Total current
liabilities
|
138,097
|
|
109,732
|
|
|
|
|
Long-term debt,
less current portion
|
25,547
|
|
17,925
|
Other non-current
liabilities
|
4,058
|
|
5,238
|
Total liabilities
|
167,702
|
|
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; 35,321 and 35,097
outstanding
|
353
|
|
351
|
Additional paid in
capital
|
82,816
|
|
79,721
|
Retained
earnings
|
103,571
|
|
88,855
|
Total Spartan
Motors, Inc. shareholders' equity
|
186,740
|
|
168,927
|
Non-controlling
interest
|
(658)
|
|
(658)
|
Total shareholders'
equity
|
186,082
|
|
168,269
|
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY
|
$
353,784
|
|
$
301,164
|
Spartan Motors,
Inc. and Subsidiaries
|
Condensed
Consolidated Statements of Operations
|
(In thousands, except
per share data)
|
(Unaudited)
|
|
|
Three Months
Ended
December
31,
|
|
Twelve Months
Ended
December
31,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
Sales
|
$ 232,961
|
|
$ 181,068
|
|
$ 816,164
|
|
$ 707,098
|
Cost of products
sold
|
209,150
|
|
156,327
|
|
717,607
|
|
617,655
|
Restructuring
charges
|
277
|
|
52
|
|
302
|
|
208
|
Gross
profit
|
23,534
|
|
24,689
|
|
98,255
|
|
89,235
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development
|
2,009
|
|
1,258
|
|
7,332
|
|
6,523
|
Selling, general and
administrative
|
19,217
|
|
17,336
|
|
73,381
|
|
65,497
|
Restructuring
charges
|
137
|
|
-
|
|
1,429
|
|
1,044
|
Total operating
expenses
|
21,363
|
|
18,594
|
|
82,142
|
|
73,064
|
Operating
income
|
2,171
|
|
6,095
|
|
16,113
|
|
16,171
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest
expense
|
(263)
|
|
(282)
|
|
(1,080)
|
|
(864)
|
Interest and other
income
|
(341)
|
|
277
|
|
2,240
|
|
717
|
Total other income
(expense)
|
(604)
|
|
(5)
|
|
1,160
|
|
(147)
|
Income before
taxes
|
1,567
|
|
6,090
|
|
17,273
|
|
16,024
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit)
|
(266)
|
|
3,651
|
|
2,261
|
|
90
|
|
|
|
|
|
|
|
|
Net Income
|
1,833
|
|
2,439
|
|
15,012
|
|
15,934
|
|
|
|
|
|
|
|
|
Less: net loss
attributable to non-controlling interest
|
-
|
|
-
|
|
-
|
|
(1)
|
|
|
|
|
|
|
|
|
Net income
attributable to Spartan Motors Inc.
|
$
1,833
|
|
$
2,439
|
|
$
15,012
|
|
$
15,935
|
|
|
|
|
|
|
|
|
Basic net earnings
per share
|
$
0.05
|
|
$
0.07
|
|
$
0.43
|
|
$
0.46
|
|
|
|
|
|
|
|
|
Diluted net
earnings per share
|
$
0.05
|
|
$
0.07
|
|
$
0.43
|
|
$
0.46
|
|
|
|
|
|
|
|
|
Basic weighted
average common shares outstanding
|
35,210
|
|
35,117
|
|
35,187
|
|
34,949
|
|
|
|
|
|
|
|
|
Diluted weighted
average common shares outstanding
|
35,210
|
|
35,117
|
|
35,187
|
|
34,949
|
Spartan Motors,
Inc. and Subsidiaries
|
Sales and Other
Financial Information by Business Segment
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31, 2018 (in thousands of dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business
Segments
|
|
|
|
|
|
|
Fleet Vehicles
&
Services
|
|
Emergency
Response
|
|
Specialty
Chassis &
Vehicles
|
|
Other
|
|
Consolidated
|
Fleet vehicle
sales
|
$
297,627
|
|
$
-
|
|
$
10,221
|
|
$
(10,221)
|
|
$
297,627
|
Emergency response
vehicle sales
|
-
|
|
235,059
|
|
-
|
|
-
|
|
235,059
|
Motorhome chassis
sales
|
-
|
|
-
|
|
149,533
|
|
-
|
|
149,533
|
Other specialty
chassis and vehicles
|
-
|
|
-
|
|
22,570
|
|
-
|
|
22,570
|
Aftermarket parts and
assemblies
|
89,922
|
|
10,578
|
|
10,875
|
|
-
|
|
111,375
|
Total
Sales
|
|
$
387,549
|
|
$
245,637
|
|
$
193,199
|
|
$
(10,221)
|
|
$
816,164
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
26,680
|
|
$
1,030
|
|
$
18,732
|
|
$
(14,683)
|
|
$
31,759
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Spartan Motors,
Inc. and Subsidiaries
|
Sales and Other
Financial Information by Business Segment
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31, 2017 (in thousands of dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business
Segments
|
|
|
|
|
|
|
Fleet Vehicles
&
Services
|
|
Emergency
Response
|
|
Specialty
Chassis &
Vehicles
|
|
Other
|
|
Consolidated
|
Fleet vehicle
sales
|
$
207,666
|
|
$
-
|
|
$
5,657
|
|
$
(5,657)
|
|
$
207,666
|
Emergency response
vehicles sales
|
-
|
|
293,559
|
|
-
|
|
-
|
|
293,559
|
Motorhome chassis
sales
|
-
|
|
-
|
|
124,584
|
|
-
|
|
124,584
|
Other specialty
chassis and vehicles
|
-
|
|
-
|
|
18,416
|
|
-
|
|
18,416
|
Aftermarket parts and
assemblies
|
43,429
|
|
9,291
|
|
10,153
|
|
-
|
|
62,873
|
Total
Sales
|
|
$
251,095
|
|
$
302,850
|
|
$
158,810
|
|
$
(5,657)
|
|
$
707,098
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
26,958
|
|
$
3,192
|
|
$
14,058
|
|
$(12,881)
|
|
$
31,327
|
|
|
|
|
|
|
|
|
|
|
|
Spartan Motors,
Inc. and Subsidiaries
|
|
Sales and Other
Financial Information by Business Segment
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31, 2018 (in thousands of dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business
Segments
|
|
|
|
|
|
|
|
Fleet
Vehicles &
Services
|
|
Emergency
Response
|
|
Specialty
Chassis &
Vehicles
|
|
Other
|
|
Consolidated
|
|
Fleet vehicle
sales
|
$
102,710
|
|
$
-
|
|
$
2,904
|
|
$
(2,904)
|
|
$
102,710
|
|
Emergency response
vehicles sales
|
-
|
|
56,467
|
|
-
|
|
-
|
|
56,467
|
|
Motorhome chassis
sales
|
-
|
|
-
|
|
33,890
|
|
-
|
|
33,890
|
|
Other specialty
chassis and vehicles
|
-
|
|
-
|
|
6,002
|
|
-
|
|
6,002
|
|
Aftermarket parts and
assemblies
|
28,299
|
|
2,579
|
|
3,014
|
|
-
|
|
33,892
|
|
Total
Sales
|
|
$
131,009
|
|
$
59,046
|
|
$
45,810
|
|
$
(2,904)
|
|
$
232,961
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
6,475
|
|
$
(1,008)
|
|
$
5,301
|
|
$
(4,082)
|
|
$
6,686
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Spartan Motors,
Inc. and Subsidiaries
|
Sales and Other
Financial Information by Business Segment
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31, 2017 (in thousands of dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business
Segments
|
|
|
|
|
|
|
Fleet
Vehicles &
Services
|
|
Emergency
Response
|
|
Specialty
Chassis &
Vehicles
|
|
Other
|
|
Consolidated
|
Fleet vehicle
sales
|
$
53,488
|
|
$
-
|
|
$
918
|
|
$
(918)
|
|
$
53,488
|
Emergency response
vehicle sales
|
-
|
|
73,448
|
|
-
|
|
-
|
|
73,448
|
Motorhome chassis
sales
|
-
|
|
-
|
|
33,303
|
|
-
|
|
33,303
|
Other specialty
chassis and vehicles
|
-
|
|
-
|
|
4,663
|
|
-
|
|
4,663
|
Aftermarket parts and
assemblies
|
11,520
|
|
2,480
|
|
2,166
|
|
-
|
|
16,166
|
Total
Sales
|
|
$
65,008
|
|
$
75,928
|
|
$
41,050
|
|
$
(918)
|
|
$
181,068
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
5,756
|
|
$
2,679
|
|
$
4,612
|
|
$
(3,752)
|
|
$
9,295
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and Other
Financial Information by Business Segment
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Period End Backlog
(amounts in thousands of dollars)
|
|
|
Dec 31,
2018
|
|
Sept. 30,
2018
|
|
Jun. 30,
2018
|
|
Mar. 31,
2018
|
|
Dec. 31,
2017
|
Fleet Vehicles and
Services*
|
$
218,775
|
|
$
275,216
|
|
$
313,374
|
|
$
335,325
|
|
$
267,698
|
|
|
|
|
|
|
|
|
|
|
Emergency Response
Vehicles*
|
216,526
|
|
175,699
|
|
175,603
|
|
189,627
|
|
233,583
|
|
|
|
|
|
|
|
|
|
|
Motorhome Chassis
*
|
36,584
|
|
32,137
|
|
33,511
|
|
28,463
|
|
33,191
|
Other
Vehicles
|
-
|
|
-
|
|
-
|
|
36
|
|
-
|
Aftermarket
Parts and Accessories
|
1,072
|
|
1,861
|
|
1,612
|
|
1,164
|
|
615
|
Total Specialty
Chassis & Vehicles
|
37,656
|
|
33,998
|
|
35,123
|
|
29,663
|
|
33,806
|
|
|
|
|
|
|
|
|
|
|
Total
Backlog
|
$
472,957
|
|
$
484,913
|
|
$
524,100
|
|
$
554,615
|
|
$
535,087
|
|
|
|
|
|
|
|
|
|
|
* Anticipated time to
fill backlog orders at December 31, 2018; 6 months or less for
fleet vehicles and services, except for the USPS truck body order
which will be fulfilled throughout 2018 and 2019; 10 months or less
for emergency response vehicles; 3 months or less for motorhome
chassis; 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), which is a non-GAAP
financial measure. This non-GAAP measure is 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 manufacturing operations, expenses related to
product recall campaigns, litigation settlements, long-term
strategic planning expenses, non-cash charges related to the
impairment of assets, expenses related to a recent business
acquisition, the impact of the step-up in inventory value
associated with the recent business acquisition, and the impact of
the business acquisition on the timing of chassis revenue
recognition.
We present the non-GAAP measure adjusted EBITDA because we
consider it to be an important supplemental measure 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. We believe this measure
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 this non-GAAP measure 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 this non-GAAP
measure, when considered together with the corresponding GAAP
financial measures and the reconciliations to that measure,
provides investors with additional understanding of the factors and
trends affecting our business than could be obtained in the absence
of this disclosure.
Our management uses adjusted EBITDA to evaluate the performance
of and allocate resources to our segments. 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)
|
|
(In thousands, except
per share data)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Twelve Months
Ended December 31,
|
Spartan Motors,
Inc.
|
2018
|
% of sales
|
|
2017
|
% of sales
|
|
2018
|
% of sales
|
|
2017
|
% of sales
|
Net income
|
$
1,832
|
0.8%
|
|
$
2,439
|
1.3%
|
|
$
15,012
|
1.8%
|
|
$
15,935
|
2.3%
|
Add
(subtract):
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
|
564
|
|
|
52
|
|
|
1,881
|
|
|
1,252
|
|
Intercompany chassis
impact
|
-
|
|
|
-
|
|
|
-
|
|
|
2,073
|
|
Acquisition inventory
adjustment
|
-
|
|
|
-
|
|
|
-
|
|
|
189
|
|
Recall
expense
|
285
|
|
|
-
|
|
|
(46)
|
|
|
(368)
|
|
Joint venture
expenses
|
-
|
|
|
-
|
|
|
-
|
|
|
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition related
expenses
|
1,150
|
|
|
269
|
|
|
1,952
|
|
|
1,354
|
|
Long-term strategic
planning expenses
|
-
|
|
|
|
|
|
995
|
|
|
-
|
|
Litigation
settlement
|
126
|
|
|
|
|
|
447
|
|
|
-
|
|
Purchase accounting –
net working capital
|
-
|
|
|
|
|
|
(2,193)
|
|
|
-
|
|
Deferred tax asset
adjustment
|
-
|
|
|
2,569
|
|
|
(313)
|
|
|
(3,260)
|
|
Tax benefit of stock
write-off
|
(14)
|
|
|
(966)
|
|
|
-
|
|
|
(966)
|
|
Tax effect of
adjustments
|
(506)
|
|
|
(506)
|
|
|
(729)
|
|
|
(1,323)
|
|
Adjusted net
income
|
$
3,437
|
1.5%
|
|
$
3,857
|
2.1%
|
|
$
17,006
|
2.1%
|
|
$
14,887
|
2.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
1,832
|
0.8%
|
|
$
2,439
|
1.3%
|
|
$
15,012
|
1.8%
|
|
$
15,935
|
2.3%
|
Add
(subtract):
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
2,732
|
|
|
2,602
|
|
|
10,370
|
|
|
9,937
|
|
Taxes on
income
|
(266)
|
|
|
3,651
|
|
|
2,261
|
|
|
90
|
|
Interest
expense
|
263
|
|
|
282
|
|
|
1,080
|
|
|
864
|
|
EBITDA
|
$
4,561
|
2.0%
|
|
$
8,974
|
5.0%
|
|
$
28,723
|
3.5%
|
|
$
26,826
|
3.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
Add
(subtract):
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
|
564
|
|
|
52
|
|
|
1,881
|
|
|
1,252
|
|
Intercompany chassis
impact
|
-
|
|
|
-
|
|
|
-
|
|
|
2,073
|
|
Asset
impairment
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Acquisition inventory
adjustment
|
-
|
|
|
-
|
|
|
-
|
|
|
189
|
|
Recall
expense
|
285
|
|
|
-
|
|
|
(46)
|
|
|
(368)
|
|
Joint venture
expenses
|
-
|
|
|
-
|
|
|
-
|
|
|
1
|
|
Acquisition related
expenses
|
1,150
|
|
|
269
|
|
|
1,952
|
|
|
1,354
|
|
Long-term strategic
planning expenses
|
-
|
|
|
-
|
|
|
995
|
|
|
-
|
|
Litigation
settlement
|
126
|
|
|
-
|
|
|
447
|
|
|
-
|
|
Purchase accounting –
net working capital
|
-
|
|
|
-
|
|
|
(2,193)
|
|
|
-
|
|
Adjusted
EBITDA
|
$
6,686
|
2.9%
|
|
$
9,295
|
5.1%
|
|
$
31,759
|
3.9%
|
|
$
31,327
|
4.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net earnings
per share
|
$
0.05
|
|
|
$
0.07
|
|
|
$
0.43
|
|
|
$
0.46
|
|
Add
(subtract):
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
|
0.02
|
|
|
-
|
|
|
0.05
|
|
|
0.04
|
|
Intercompany chassis
impact
|
-
|
|
|
-
|
|
|
-
|
|
|
0.06
|
|
Acquisition inventory
adjustment
|
-
|
|
|
-
|
|
|
-
|
|
|
0.01
|
|
Recall
expense
|
0.01
|
|
|
-
|
|
|
-
|
|
|
(0.01)
|
|
Acquisition related
expenses
|
0.03
|
|
|
0.01
|
|
|
0.06
|
|
|
0.04
|
|
Long-term strategic
planning expenses
|
-
|
|
|
-
|
|
|
0.03
|
|
|
-
|
|
Litigation
settlement
|
-
|
|
|
-
|
|
|
0.01
|
|
|
-
|
|
Purchase accounting –
net working capital
|
-
|
|
|
-
|
|
|
(0.06)
|
|
|
-
|
|
Deferred tax asset
adjustment
|
-
|
|
|
0.07
|
|
|
(0.01)
|
|
|
(0.10)
|
|
Tax benefit of stock
write-off
|
-
|
|
|
(0.03)
|
|
|
-
|
|
|
(0.03)
|
|
Tax effect of
adjustments
|
(0.01)
|
|
|
(0.01)
|
|
|
(0.02)
|
|
|
(0.04)
|
|
Adjusted Diluted net
earnings per share
|
$
0.10
|
|
|
$
0.11
|
|
|
$
0.48
|
|
|
$
0.43
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
|
(In thousands, except
per share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Forecast
Year Ending
December 31, 2019
|
|
|
|
Low
|
|
Mid
|
|
High
|
Net income
|
|
|
$
19,539
|
|
$
21,085
|
|
$
22,630
|
Add:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
10,405
|
|
10,405
|
|
10,405
|
Interest
expense
|
|
|
1,281
|
|
1,281
|
|
1,281
|
Taxes
|
|
|
5,649
|
|
6,096
|
|
6,542
|
EBITDA
|
|
|
$
36,874
|
|
$
38,867
|
|
$
40,858
|
|
|
|
|
|
|
|
|
Add
(subtract):
|
|
|
|
|
|
|
|
Restructuring
charges
|
|
|
200
|
|
200
|
|
200
|
Adjusted
EBITDA
|
|
|
$
37,074
|
|
$
39,067
|
|
$
41,058
|
|
|
|
|
|
|
|
|
Earnings per
share
|
|
|
$
0.56
|
|
$
0.60
|
|
$
0.64
|
Add:
|
|
|
|
|
|
|
|
Restructuring
charges
|
|
|
0.01
|
|
0.01
|
|
0.01
|
Less tax effect of
adjustments
|
|
|
-
|
|
-
|
|
-
|
Adjusted earnings per
share
|
|
|
$
0.57
|
|
$
0.61
|
|
$
0.65
|
View original
content:http://www.prnewswire.com/news-releases/spartan-motors-reports-fourth-quarter-and-full-year-2018-results-300804075.html
SOURCE Spartan Motors, Inc.