CHARLOTTE, Mich., Oct. 31, 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 third quarter ending September 30, 2019.
Third Quarter 2019 Highlights
For the third quarter of 2019 compared to the third quarter of
2018:
- Sales increased $62.8 million,
or 27.8%, to a record $289.0 million
from $226.2 million.
- Gross profit margin improved 300 basis points to 14.6% of
sales from 11.6% of sales.
- Net income increased $5.1
million, or 97.5%, to $10.4
million, or $0.29 per share,
compared to $5.2 million, or
$0.15 per share.
- Adjusted net income increased $6.3
million, or 106.0%, to $12.3
million, or $0.35 per share,
from $6.0 million, or $0.17 per share.
- Adjusted EBITDA increased $8.6
million, or 81.4%, to $19.2
million, or 6.6% of sales, from $10.6
million, or 4.7% of sales.
- Acquired Royal Truck Body (Royal), which further expands
Spartan's geographic coverage with six additional manufacturing
facilities located in California,
Arizona, and Texas.
- Consolidated backlog at September 30,
2019, totaled $458.8 million,
up $132.9 million, or 41%, compared
to $325.9 million at September 30, 2018, which excludes the one-time
multi-year USPS truck body order. The increase was primarily driven
by strong demand for delivery vehicles in all vehicle classes and
the Royal acquisition.
"Spartan's record third-quarter sales led to strong overall
results for the quarter, underscoring our growth strategy through
both organic and acquisitions. The continued demand for delivery
vehicles in all of our vehicle classes is driving our growth," said
Daryl Adams, President and Chief
Executive Officer. "Overall, we expanded margins through
lower material costs and continue to pursue innovation and
optimization within our manufacturing processes.
Additionally, we have added eight manufacturing facilities in the
past 10 months as part of our strategy to offer coast-to-coast
manufacturing and distribution capabilities."
Fleet Vehicles and Services (FVS)
The FVS
business unit continues to be well-positioned for accelerating
eCommerce and last mile delivery growth. Through flexible,
regional facilities located across the nation, FVS has expanded
capacity and increased efficiency. The strong third quarter
includes the completion of the USPS truck body build as well as the
continued strength of delivery vehicles in all vehicle
classes. In addition, FVS was awarded its first Ford chassis
pool at its Ephrata, Pennsylvania
facility.
FVS segment sales increased $61.2
million, or 51.6%, to a record $179.6
million from $118.4 million.
The improvement was primarily due to increased sales of delivery
vehicles in all vehicle classes as well as increased
pricing.
Adjusted EBITDA increased $17.4
million to $24.7 million, or
13.7% of sales, from $7.2 million, or
6.1% of sales, a year ago. The adjusted EBITDA increase is
primarily due to volume and lower material costs, partially offset
by start-up costs related to the Company's upfit centers and the
reconfiguration of all five FVS facilities.
FVS results for the current and year-ago period, include the
USPS truck body order. Excluding the USPS truck body order,
adjusted EBITDA as a percentage of sales was approximately 15.8%
compared to 7.6% a year ago.
The segment backlog at September 30,
2019, totaled $223.8 million,
up $107.6 million, or 93.0%, compared
to $116.2 million at September 30, 2018, which excludes the one-time
multi-year USPS truck body order and reflects the strong demand for
delivery vehicles in all vehicle classes.
Emergency Response (ER)
The ER business unit's
operating improvements are not meeting expectations and are taking
longer than anticipated. ER continues to make progress with
its realigned dealer network as sales quoting activity, order flow,
and backlog continue to grow. Additionally, the launch of
Detroit Truck Manufacturing, the unit's aluminum cab fabrication
facility, continues to ramp-up production and will provide material
cost and quality benefits for ER, while fulfilling other
fabrication needs across the organization.
ER segment sales increased $4.0
million, or 6.6%, to $64.2
million from $60.3
million. The increase was due to increased volume and
improved pricing.
Adjusted EBITDA decreased $1.7
million to a loss of $1.1
million, or 1.7% of sales, from a profit of $0.6 million a year ago. The decline was
primarily the result of mix and higher material costs,
partially offset by pricing and volume.
The segment backlog at September 30,
2019, totaled $195.1 million,
up $19.4 million, or 11.1%, compared
to $175.7 million at September 30, 2018.
Specialty Chassis and Vehicles (SCV)
The SCV
business unit remains focused on driving growth and advancing
operating performance. During the quarter, Spartan purchased
Royal Truck Body, a leading, California-based designer, manufacturer, and
installer of service truck bodies and accessories, with six
facilities located in California,
Arizona and Texas. Royal operating results for the 21 days
ended September 30, 2019, are
included in the consolidated financial statements within the
Specialty Chassis and Vehicles business unit.
SCV segment sales decreased $6.6
million, or 12.7%, to $45.1
million from $51.7 million a
year ago. The revenue decrease was mainly due to lower luxury
motor coach chassis and the completion of the Reach vehicle
order.
Adjusted EBITDA decreased $1.8
million to $4.1 million, or
9.0% of sales, from $5.9 million, or
11.4% of sales, a year ago, mainly due to volume, mix, and
manufacturing disruption due to an OEM strike.
The segment backlog at September 30,
2019, totaled $39.9 million,
up $5.9 million, or 17.5%, compared
to $34.0 million at September 30, 2018.
2019 Outlook – Raising Guidance
"Spartan's
financial performance in the first nine months of the year,
combined with our successful acquisitions, improving backlogs,
enhanced productivity, and low-cost country sourcing
initiatives, gives us confidence that we will exceed our
previous full-year expectations," said Rick
Sohm, Chief Financial Officer of Spartan Motors. "We expect
to see continued year-over-year profitability growth into the
fourth quarter of 2019, driven primarily by delivery vehicle orders
in all vehicle classes and continued margin expansion."
The Company now expects financial results for 2019 as
follows:
- Revenue midpoint up 2% to a range of $990.0 - $1,000.0
million from $960.0 -
$990.0 million
- Net income midpoint up 11% to a range of $27.3 - $28.8
million from $24.1 -
$26.4 million
- Adjusted EBITDA midpoint up 18% to a range of $51.9 - $53.7
million from $43.3 -
$46.2 million
- Earnings per share midpoint up 10% to a range of $0.77 - $0.81 from
$0.68 - $0.75
- Adjusted earnings per share midpoint up 23% to a range of
$0.89 - $0.93 from $0.70 -
$0.77
"Our ability to execute and deliver according to our strategy
gives us the confidence to raise our 2019 midpoint adjusted EPS
guidance by 23 percent," concluded Adams. "We are excited about our
results so far this year and the opportunity to close the year out
strong. We believe we are laying the foundation to drive long-term
profitable growth for Spartan and its shareholders."
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: 10135708
For more information about Spartan, please visit
www.spartanmotors.com/investors.
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: Spartan Fleet Vehicles and Services, Spartan Emergency
Response and Spartan Specialty Vehicles. Today, its family of
brands also includes Spartan Authorized Parts, Spartan Factory
Service Centers, Utilimaster, Royal Truck Body, 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 2,500 associates, and
operates facilities in Michigan,
Indiana, Pennsylvania, South
Carolina, Florida,
Missouri, California, Arizona, Texas, 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 & IR
Spartan Motors, Inc.
(517) 997-3862
Spartan Motors,
Inc. and Subsidiaries
Condensed
Consolidated Balance Sheets
(In thousands, except
par value)
(Unaudited)
|
|
|
September
30,
2019
|
|
December 31,
2018
|
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
15,019
|
|
$
27,439
|
|
Accounts receivable,
less allowance of $409 and $133
|
112,455
|
|
106,801
|
|
Contract
assets
|
49,043
|
|
36,027
|
|
Inventories
|
87,936
|
|
69,992
|
|
Other receivables –
chassis pool agreements
|
16,975
|
|
-
|
|
Other current
assets
|
6,247
|
|
5,070
|
|
Total current
assets
|
287,675
|
|
245,329
|
|
|
|
|
|
|
Property, plant
and equipment, net
|
62,189
|
|
56,567
|
|
Right of use
assets – operating leases
|
37,110
|
|
-
|
|
Goodwill
|
60,333
|
|
33,823
|
|
Intangible assets,
net
|
55,149
|
|
8,611
|
|
Net deferred tax
asset
|
7,463
|
|
7,141
|
|
Other
assets
|
2,693
|
|
2,313
|
|
TOTAL
ASSETS
|
$
512,612
|
|
$
353,784
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
$
83,723
|
|
$
76,399
|
|
Accrued
warranty
|
18,084
|
|
16,090
|
|
Accrued compensation
and related taxes
|
17,362
|
|
10,520
|
|
Deposits from
customers
|
11,369
|
|
22,632
|
|
Operating lease
liability
|
5,133
|
|
-
|
|
Other current
liabilities and accrued expenses
|
14,636
|
|
12,396
|
|
Short-term debt –
chassis pool agreements
|
16,975
|
|
-
|
|
Current portion of
long-term debt
|
213
|
|
60
|
|
Total current
liabilities
|
167,495
|
|
138,097
|
|
|
|
|
|
|
Other non-current
liabilities
|
4,376
|
|
4,058
|
|
Long-term
operating lease liability
|
32,171
|
|
-
|
|
Long-term debt,
less current portion
|
108,944
|
|
25,547
|
|
Total
liabilities
|
312,986
|
|
167,702
|
|
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; 35,333 and
35,321 outstanding
|
353
|
|
353
|
|
Additional paid in
capital
|
83,565
|
|
82,816
|
|
Retained
earnings
|
116,380
|
|
103,571
|
|
Total Spartan
Motors, Inc. shareholders' equity
|
200,298
|
|
186,740
|
|
Non-controlling interest
|
(672)
|
|
(658)
|
|
Total shareholders'
equity
|
199,626
|
|
186,082
|
|
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY
|
$
512,612
|
|
$
353,784
|
|
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,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
Sales
|
$
288,951
|
|
$
226,183
|
|
$
770,850
|
|
$
583,203
|
Cost of products
sold
|
246,769
|
|
199,965
|
|
677,216
|
|
508,457
|
Restructuring
charges
|
6
|
|
25
|
|
60
|
|
25
|
Gross
profit
|
42,176
|
|
26,193
|
|
93,574
|
|
74,721
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development
|
1,869
|
|
2,117
|
|
6,507
|
|
5,323
|
Selling, general and
administrative
|
26,673
|
|
17,251
|
|
68,198
|
|
54,163
|
Restructuring
charges
|
131
|
|
476
|
|
259
|
|
1,292
|
Total operating expenses
|
28,673
|
|
19,844
|
|
74,964
|
|
60,778
|
|
|
|
|
|
|
|
|
Operating
income
|
13,503
|
|
6,349
|
|
18,610
|
|
13,943
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest
expense
|
(144)
|
|
(225)
|
|
(831)
|
|
(817)
|
Interest and other
income
|
480
|
|
156
|
|
1,963
|
|
2,581
|
Total other income
(expense)
|
336
|
|
(69)
|
|
1,132
|
|
1,764
|
|
|
|
|
|
|
|
|
Income before
taxes
|
13,839
|
|
6,280
|
|
19,742
|
|
15,707
|
|
|
|
|
|
|
|
|
Taxes
|
3,424
|
|
1,037
|
|
4,499
|
|
2,527
|
|
|
|
|
|
|
|
|
Net Income
|
10,415
|
|
5,243
|
|
15,243
|
|
13,180
|
|
|
|
|
|
|
|
|
Less: net income
(loss) attributable to non-controlling interest
|
61
|
|
-
|
|
(14)
|
|
-
|
|
|
|
|
|
|
|
|
Net income
attributable to Spartan Motors Inc.
|
$
10,354
|
|
$
5,243
|
|
$
15,257
|
|
$
13,180
|
|
Basic net earnings
per share
|
$
0.29
|
|
$
0.15
|
|
$
0.43
|
|
$
0.37
|
|
Diluted net
earnings per share
|
$
0.29
|
|
$
0.15
|
|
$
0.43
|
|
$
0.37
|
|
|
|
|
|
|
|
|
Basic weighted
average common shares outstanding
|
35,317
|
|
35,182
|
|
35,311
|
|
35,179
|
|
|
|
|
|
|
|
|
Diluted weighted
average common shares outstanding
|
35,463
|
|
35,182
|
|
35,355
|
|
35,179
|
Spartan Motors,
Inc. and Subsidiaries
|
Sales and Other
Financial Information by Business Segment
|
(Unaudited)
|
|
Three Months Ended
September 30, 2019 (in thousands of dollars)
|
|
|
Business
Segments
|
|
|
|
|
Fleet
Vehicles and
Services
|
|
Emergency
Response
|
|
Specialty
Chassis and
Vehicles
|
|
Other
|
|
Consolidated
|
Fleet vehicle
sales
|
$
179,594
|
|
$
-
|
|
$
-
|
|
$
-
|
|
$
179,594
|
Emergency response
vehicle sales
|
-
|
|
60,874
|
|
-
|
|
-
|
|
60,874
|
Motorhome chassis
sales
|
-
|
|
-
|
|
33,038
|
|
-
|
|
33,038
|
Other specialty
chassis and vehicles
|
-
|
|
-
|
|
9,377
|
|
-
|
|
9,377
|
Aftermarket parts and
assemblies
|
-
|
|
3,367
|
|
2,701
|
|
-
|
|
6,068
|
Total
sales
|
$
179,594
|
|
$
64,241
|
|
$
45,116
|
|
$
-
|
|
$
288,951
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
24,689
|
|
$
(1,063)
|
|
$
4,079
|
|
$
(8,507)
|
|
$
19,198
|
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)
|
|
Period End
Backlog (amounts in thousands of
dollars)
|
|
Sep. 30,
2019
|
|
Jun. 30,
2019
|
|
Mar. 31,
2019
|
|
Dec. 31,
2018
|
|
Sep. 30,
2018
|
Fleet Vehicles and
Services*
|
$
223,753
|
|
$
272,399
|
|
$
188,528
|
|
$
218,775
|
|
$
275,216
|
|
|
|
|
|
|
|
|
|
|
Emergency Response
Vehicles*
|
195,139
|
|
189,716
|
|
214,659
|
|
216,526
|
|
175,699
|
|
|
|
|
|
|
|
|
|
|
Motorhome Chassis *
|
26,719
|
|
31,852
|
|
28,470
|
|
36,584
|
|
32,137
|
Other Vehicles
|
11,769
|
|
-
|
|
-
|
|
-
|
|
-
|
Aftermarket Parts and Assemblies
|
1,459
|
|
565
|
|
667
|
|
1,072
|
|
1,861
|
Total Specialty
Chassis and Vehicles
|
39,947
|
|
32,417
|
|
29,137
|
|
37,656
|
|
33,998
|
|
|
|
|
|
|
|
|
|
|
Total
Backlog
|
$
458,839
|
|
$
494,532
|
|
$
432,324
|
|
$
472,957
|
|
$
484,913
|
|
|
|
|
|
|
|
|
|
|
* Anticipated time to
fill backlog orders at September 30, 2019; 9 months or less for
emergency response vehicles; 3 months or less for motorhome
chassis; 6 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), 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 include expenses associated with restructuring actions
taken to improve the efficiency and profitability of our
manufacturing operations, various items related to business
acquisition and litigation activities, and the impact executive
severance and stock based compensation.
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 certain 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.
|
|
2019
|
|
2018
|
Net income
attributable to Spartan Motors, Inc.
|
|
$
10,354
|
|
$
5,243
|
Add
(subtract):
|
|
|
|
|
Restructuring
charges
|
|
137
|
|
501
|
Acquisition related
expenses, including stock compensation
|
|
1,684
|
|
267
|
Recall
expense
|
|
-
|
|
112
|
Long-term strategic
planning expenses
|
|
-
|
|
277
|
Litigation
settlement
|
|
-
|
|
321
|
Executive
compensation plan
|
|
531
|
|
-
|
Severance
costs
|
|
234
|
|
-
|
DTA valuation
allowance
|
|
-
|
|
(373)
|
Tax effect of
adjustments
|
|
(605)
|
|
(360)
|
Adjusted net income
attributable to Spartan Motors, Inc.
|
|
$
12,335
|
|
$
5,988
|
|
|
|
|
|
Net income
attributable to Spartan Motors, Inc.
|
|
$
10,354
|
|
$
5,243
|
Add
(subtract):
|
|
|
|
|
Depreciation and
amortization
|
|
2,691
|
|
2,600
|
Taxes on
income
|
|
3,423
|
|
1,037
|
Interest
expense
|
|
144
|
|
225
|
EBITDA
|
|
$
16,612
|
|
$
9,105
|
|
|
|
|
|
Add
(subtract):
|
|
|
|
|
Restructuring
charges
|
|
137
|
|
501
|
Acquisition related
expenses, including stock compensation
|
|
1,684
|
|
267
|
Recall
expense
|
|
-
|
|
112
|
Long-term strategic
planning expenses
|
|
-
|
|
277
|
Litigation
settlement
|
|
-
|
|
321
|
Executive
compensation plan
|
|
531
|
|
-
|
Severance
costs
|
|
234
|
|
-
|
Adjusted
EBITDA
|
|
$
19,198
|
|
$
10,583
|
|
|
|
|
|
Diluted net earnings
per share
|
|
$
0.29
|
|
$
0.15
|
Add
(subtract):
|
|
|
|
|
Restructuring
charges
|
|
-
|
|
0.01
|
Acquisition related
expenses, including stock compensation
|
|
0.05
|
|
0.01
|
Long-term strategic
planning expenses
|
|
-
|
|
0.01
|
Litigation
settlement
|
|
-
|
|
0.01
|
Executive
compensation plan
|
|
0.02
|
|
-
|
Severance
costs
|
|
0.01
|
|
-
|
DTA valuation
allowance
|
|
-
|
|
(0.01)
|
Tax effect of
adjustments
|
|
(0.02)
|
|
(0.01)
|
Adjusted diluted net
earnings per share
|
|
$
0.35
|
|
$
0.17
|
Financial Summary
(Non-GAAP)
|
(In
thousands)
|
(Unaudited)
|
|
|
Three Months
Ended
September 30,
|
|
|
2019
|
|
2018
|
|
|
|
|
|
|
Total segment
adjusted EBITDA
|
$
27,705
|
|
$
13,763
|
|
Add
(subtract):
|
|
|
|
|
Interest
expense
|
(144)
|
|
(225)
|
|
Depreciation and
amortization expense
|
(2,691)
|
|
(2,600)
|
|
Restructuring
expense
|
(371)
|
|
(501)
|
|
Acquisition related
expenses, including stock compensation
|
(1,684)
|
|
(267)
|
|
Litigation
settlement
|
-
|
|
(321)
|
|
Recall
expense
|
-
|
|
(112)
|
|
Long-term strategic
planning expenses
|
-
|
|
(277)
|
|
Executive
compensation plan
|
(531)
|
|
-
|
|
Unallocated corporate
expenses
|
(8,445)
|
|
(3,180)
|
|
Consolidated income
before taxes
|
$
13,839
|
|
$
6,280
|
Financial Summary
(Non-GAAP)
|
Consolidated
|
(In thousands, except
per share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Forecast
Year Ending
December 31, 2019
|
|
|
|
Low
|
|
Mid
|
|
High
|
Net income
|
|
|
$
27,314
|
|
$
28,037
|
|
$
28,759
|
Add:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
9,885
|
|
9,885
|
|
9,885
|
Interest
expense
|
|
|
2,518
|
|
2,518
|
|
2,518
|
Taxes
|
|
|
6,800
|
|
7,000
|
|
7,200
|
EBITDA
|
|
|
$
46,517
|
|
$
47,440
|
|
$
48,362
|
|
|
|
|
|
|
|
|
Add
(subtract):
|
|
|
|
|
|
|
|
Restructuring,
acquisition and other charges
|
|
|
5,362
|
|
5,362
|
|
5,362
|
Adjusted
EBITDA
|
|
|
$
51,879
|
|
$
52,802
|
|
$
53,724
|
|
|
|
|
|
|
|
|
Earnings per
share
|
|
|
$
0.77
|
|
$
0.79
|
|
$
0.81
|
Add:
|
|
|
|
|
|
|
|
Restructuring,
acquisition and other charges
|
|
|
0.15
|
|
0.15
|
|
0.15
|
Less tax effect of
adjustments
|
|
|
(0.03)
|
|
(0.03)
|
|
(0.03)
|
Adjusted earnings per
share
|
|
|
$
0.89
|
|
$
0.91
|
|
$
0.93
|
View original
content:http://www.prnewswire.com/news-releases/spartan-motors-reports-strong-third-quarter-2019-results-300948648.html
SOURCE Spartan Motors, Inc.