NOVI, Mich., March 12, 2020 /PRNewswire/ -- Spartan Motors,
Inc. (NASDAQ: SPAR) (the "Company"), the North American leader in
specialty vehicle manufacturing and assembly for the commercial and
fleet vehicle industries (including last mile delivery, specialty
service and vocation-specific upfit markets), as well as for the
recreational vehicle markets, today reported operating results for
the fourth quarter and full-year periods ending December 31, 2019.
As previously announced, the Company divested its Emergency
Response (ER) business effective February
1, 2020. Accordingly, the financial results of ER
have been classified as discontinued operations for all periods
presented. Unless otherwise noted, financial results presented are
based on continuing operations.
Full-Year 2019 Highlights from Continuing Operations
For the full-year 2019 compared to the full-year 2018:
- Sales increased $186.0
million, or 32.6%, to $756.5
million from $570.5
million. Including the discontinued operations, sales
were $1.0 billion compared to
$816.2 million.
- Income from continuing operations increased $18.7 million, or 103.3%, to $36.8 million, or $1.03 per share, from $18.1 million, or $0.52 per share.
- Adjusted EBITDA increased 80.8% to $64.0 million, or 8.5% of sales, from
$35.4 million, or 6.2% of
sales. Including the discontinued operations, adjusted EBITDA
was $57.7 million compared to
$34.4 million. Adjusted EBITDA as a
percent of sales would have been approximately 110 basis points
higher, or 9.6%, excluding the pass-through impact on sales from
the one-time multi-year USPS truck body order.
- Adjusted net income improved 90.9% to $43.9 million, or $1.24 per share, from $23.0 million, or $0.66 per share. Including the discontinued
operations, adjusted net income per share was $1.03 compared to $0.55.
- Consolidated backlog at December 31, 2019, totaled $336.6 million, up $194.0
million, or 136%, compared to $142.6
million at December 31, 2018,
excluding the one-time, multi-year USPS truck body order. The
increase was primarily driven by strong demand for vehicles
across the entire product portfolio and the
acquisitions made throughout the year.
Fourth Quarter 2019 Highlights from Continuing
Operations
For the fourth quarter of 2019 compared to the fourth quarter of
2018:
- Sales increased $6.1 million,
or 3.5%, to $180.0 million from
$173.9 million. Including the
discontinued operations, sales were $247.6
million compared to $233.0
million.
- Income from continuing operations increased $9.9 million, or 225.0%, to $14.3 million, or $0.40 per share, from $4.4
million, or $0.12 per
share.
- Adjusted EBITDA increased 151.1%, to $23.6 million, or 13.1% of sales, compared to
$9.4 million, or 5.4% of
sales. Including the discontinued operations, adjusted
EBITDA was $23.0 million compared to
$7.2 million.
"I'm incredibly pleased with our strong finish to the year, and
I want to thank the entire team for their contributions. Our
results speak to the full organization's focus on long-term
profitable growth, by way of geographic expansion, sustainable
operational improvements, and customer-centric sales and service,
and have well positioned the company for years to come," said
Daryl Adams, President and Chief
Executive Officer. "Today Spartan is more agile and is better
positioned to continue to respond to the macro and micro trends
that have accelerated changes in our markets. In addition to
improving the Company's liquidity, this transformation will
increase profitability, as well as provide us with the speed and
flexibility to accelerate growth in our core markets."
Full-Year 2019 Segment Results from Continuing
Operations
For the full-year 2019 compared to the full-year 2018:
Fleet Vehicles and Services (FVS)
FVS segment sales increased $188.3
million, or 48.6%, to $575.9
million from $387.5
million. This increase was driven by higher unit
volumes and mix. The sales volume increase in 2019 includes
$91.4 million of chassis pass-thru
revenues compared to $65.4 million in
2018.
Adjusted EBITDA increased $34.0
million to $60.7 million, or
10.5% of sales, from $26.7 million,
or 6.9% of sales, a year ago. The improvement was driven by
higher volume, mix and productivity improvements. Adjusted EBITDA
as a percent of sales would have been approximately 200 basis
points higher, or 12.5%, without the pass-through impact on sales
from the USPS order.
The segment backlog at December 31,
2019, totaled $305.9 million,
up 191%, compared to $105.0 million
at December 31, 2018, which reflects
strong demand for vehicles across the Company's entire product
portfolio and excludes the one-time multi-year USPS truck body
order.
Specialty Chassis and Vehicles (SCV)
SCV segment sales decreased $7.3
million to $185.9 million, or
3.8%, from $193.2 million a year
ago. This was primarily due to a decrease in luxury motor
coach chassis sales, partially offset by sales from the Royal Truck
Body (Royal) acquisition.
Adjusted EBITDA increased $2.1
million to $20.7 million, or
11.1% of sales, from $18.6 million,
or 9.6% of sales, a year ago. The improvement was primarily
due to luxury motor coach chassis pricing and the Royal
acquisition, partially offset by lower luxury motor coach chassis
sales and mix.
The segment backlog at December 31,
2019, totaled $30.7 million, a
19% decrease, compared to $37.7
million at December 31,
2018.
Discontinued Operations
On February 1, 2020, the Company
completed the sale of the ER business for $55 million in cash, subject to certain
post-closing adjustments. The ER assets and liabilities have
been reclassified as held-for-sale in the accompanying balance
sheet and ER operating results have been reclassified as
discontinued operations for all periods presented in the
accompanying financial statements.
2020 Outlook
"Our 2019 financial performance reflects the successful
integration of several key acquisitions and the continued momentum
in our core markets. As we look to 2020, we are confident
that the strategic business transformation will bear positive
results and position the Company to provide the industry leading
innovative solutions our customers demand. With the proceeds
from the recent sale of our ER business, we are well positioned to
deploy capital at higher returns that will drive our performance,"
continued Adams.
Company outlook for full-year 2020 from continuing operations is
expected to be as follows:
- Revenue to be in the range of $730.0 to $780.0
million, midpoint $755.0
million
- Net income of $37.0 to
$43.0 million, midpoint $40.0 million
- Adjusted EBITDA of $66.0 -
$74.0 million, midpoint $70.0 million
- Effective tax rate of approximately 22%
- Earnings per share of $1.04 -
$1.20, midpoint $1.12; assuming 35.4 million shares
outstanding
- Adjusted earnings per share of $1.20 - $1.36,
midpoint $1.28
"In 2019, we transformed the company and greatly improved our
focus within our core markets. We have expanded our U.S.
manufacturing presence and have enhanced our product portfolio
across all vehicle classes to meet customer demand. With
increased resources available to capitalize on emerging
opportunities and a strategic eye toward both organic and
acquisitive growth, we are optimistic about this year and the
foreseeable future," concluded Adams.
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: 1-866-652-5200 (domestic) or 412-317-6060
(international); passcode: 10139520
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 markets), as well as for recreational
vehicle markets. The Company is organized into two core business
segments: Spartan Fleet Vehicles and Services and Spartan Specialty
Chassis and Vehicles. Today, its family of brands also include
Utilimaster, Royal Truck Body, Strobes-R-Us, Spartan Chassis,
Spartan Authorized Parts, Spartan Authorized Service Centers, and
Spartan Factory Service Centers. 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 2,900
associates, and operates facilities in Michigan, Indiana, Pennsylvania, South
Carolina, Florida,
Missouri, California, Arizona, Texas, and Saltillo,
Mexico. Spartan reported sales from continuing operations of
$757 million in 2019. 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.
|
Spartan Motors,
Inc. and Subsidiaries
|
Consolidated
Balance Sheets
|
(In thousands,
except par value)
|
(Unaudited)
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
2019
|
|
2018
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
19,349
|
|
$
27,439
|
Accounts receivable,
less allowance of $228 and $99
|
58,874
|
|
68,009
|
Contract
assets
|
10,898
|
|
9,229
|
Inventories
|
59,456
|
|
39,213
|
Other receivables -
chassis pool agreements
|
8,162
|
|
-
|
Other current
assets
|
5,344
|
|
3,952
|
Current assets held
for sale
|
90,725
|
|
97,487
|
Total current
assets
|
252,808
|
|
245,329
|
|
|
|
|
Property, plant
and equipment, net
|
40,074
|
|
32,485
|
Right of use
assets – operating leases
|
32,147
|
|
-
|
Goodwill
|
43,632
|
|
22,367
|
Intangible assets,
net
|
54,061
|
|
5,011
|
Other
assets
|
2,295
|
|
2,261
|
Net deferred tax
asset
|
25,520
|
|
7,141
|
Noncurrent assets
held for sale
|
-
|
|
39,190
|
TOTAL
ASSETS
|
$
450,537
|
|
$
353,784
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
54,713
|
|
$
73,384
|
Accrued
warranty
|
5,694
|
|
4,407
|
Accrued compensation
and related taxes
|
15,841
|
|
7,678
|
Deposits from
customers
|
2,640
|
|
871
|
Operating lease
liability
|
5,162
|
|
-
|
Other current
liabilities and accrued expenses
|
15,967
|
|
8,620
|
Short-term debt -
chassis pool agreements
|
8,162
|
|
-
|
Current portion of
long-term debt
|
177
|
|
60
|
Current liabilities
held for sale
|
49,601
|
|
43,077
|
Total current
liabilities
|
157,957
|
|
138,097
|
|
|
|
|
Other non-current
liabilities
|
4,922
|
|
4,058
|
Long-term
operating lease liability
|
27,241
|
|
-
|
Long-term debt,
less current portion
|
88,670
|
|
25,547
|
Total
liabilities
|
278,790
|
|
167,702
|
Shareholders'
equity:
|
|
|
|
Preferred stock, no
par value: 2,000 shares authorized (none issued)
|
-
|
|
-
|
Common stock, $0.01
par value; 80,000 shares authorized; 35,343 and 35,321
outstanding
|
353
|
|
353
|
Additional paid in
capital
|
85,148
|
|
82,816
|
Retained
earnings
|
86,764
|
|
103,571
|
Total Spartan
Motors, Inc. shareholders' equity
|
172,265
|
|
186,740
|
Non-controlling
interest
|
(518)
|
|
(658)
|
Total
shareholders' equity
|
171,747
|
|
186,082
|
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY
|
$
450,537
|
|
$
353,784
|
|
|
|
|
|
|
|
|
|
Spartan Motors,
Inc. and Subsidiaries
|
Consolidated
Statements of Operations
|
(In thousands,
except per share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Twelve Months
Ended December 31,
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Sales
|
$
179,960
|
|
$
173,916
|
|
$
756,542
|
|
$
570,527
|
Cost of products
sold
|
142,541
|
|
154,780
|
|
639,509
|
|
497,370
|
Restructuring
charges
|
-
|
|
2
|
|
6
|
|
13
|
Gross
profit
|
37,419
|
|
19,134
|
|
117,027
|
|
73,144
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Research and
development
|
1,389
|
|
919
|
|
4,864
|
|
3,771
|
|
Selling, general and
administrative
|
17,688
|
|
12,333
|
|
64,473
|
|
46,206
|
|
Restructuring
charges
|
46
|
|
-
|
|
76
|
|
649
|
Total operating
expenses
|
19,123
|
|
13,252
|
|
69,413
|
|
50,626
|
|
|
|
|
|
|
|
|
|
Operating
income
|
18,296
|
|
5,882
|
|
47,614
|
|
22,518
|
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
Interest
expense
|
(1,008)
|
|
(262)
|
|
(1,839)
|
|
(1,080)
|
|
Interest and other
income (expense)
|
423
|
|
(344)
|
|
1,370
|
|
12
|
Total
other expense
|
(585)
|
|
(606)
|
|
(469)
|
|
(1,068)
|
Income from
continuing operations before income taxes
|
17,711
|
|
5,276
|
|
47,145
|
|
21,450
|
|
|
|
|
|
|
|
|
|
Income tax
expenses
|
3,426
|
|
860
|
|
10,355
|
|
3,334
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
14,285
|
|
4,416
|
|
36,790
|
|
18,116
|
|
|
|
|
|
|
|
|
Loss from
discontinued operations, net of income taxes
|
(41,952)
|
|
(2,581)
|
|
(49,216)
|
|
(3,104)
|
Net (loss)
income
|
(27,667)
|
|
1,835
|
|
(12,426)
|
|
15,012
|
Less: Net
income attributable to non-controlling interest
|
154
|
|
-
|
|
140
|
|
-
|
|
|
|
|
|
|
|
|
|
Net (loss) income
attributable to Spartan Motors, Inc.
|
$
(27,821)
|
|
$
1,835
|
|
$
(12,566)
|
|
$
15,012
|
|
|
|
|
|
|
|
|
|
Basic earnings
(loss) per share
|
|
|
|
|
|
|
|
|
Continuing
operations
|
$
0.40
|
|
$
0.12
|
|
$
1.03
|
|
$
0.52
|
|
Discontinued
operations
|
$
(1.19)
|
|
$
(0.07)
|
|
$
(1.39)
|
|
$
(0.09)
|
|
Basic (loss)
earnings per share
|
$
(0.79)
|
|
$
0.05
|
|
$
(0.36)
|
|
$
0.43
|
Diluted earnings
(loss) per share
|
|
|
|
|
|
|
|
|
Continuing
operations
|
$
0.40
|
|
$
0.12
|
|
$
1.03
|
|
$
0.52
|
|
Discontinued
operations
|
$
(1.18)
|
|
$
(0.07)
|
|
$
(1.39)
|
|
$
(0.09)
|
|
Diluted (loss)
earnings per share
|
$
(0.78)
|
|
$
0.05
|
|
$
(0.36)
|
|
$
0.43
|
|
|
|
|
|
|
|
|
Basic weighted
average common shares outstanding
|
35,339
|
|
35,210
|
|
35,318
|
|
35,187
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average common shares outstanding
|
35,582
|
|
35,210
|
|
35,416
|
|
35,187
|
|
|
|
Spartan Motors,
Inc. and Subsidiaries
|
Sales and Other
Financial Information by Business Segment
|
(Unaudited)
|
|
Year
Ended December 31, 2019 (in thousands of dollars)
|
|
|
Business
Segments
|
|
|
|
Fleet Vehicles
&
Services
|
|
Specialty
Chassis &
Vehicles
|
|
Other
|
|
Consolidated
|
Fleet vehicle
sales
|
$
504,023
|
|
$
5,278
|
|
$
(5,278)
|
|
$
504,023
|
Motorhome chassis
sales
|
-
|
|
127,130
|
|
-
|
|
127,130
|
Other specialty
chassis and vehicles
|
-
|
|
43,067
|
|
-
|
|
43,067
|
Aftermarket parts and
assemblies
|
71,871
|
|
10,451
|
|
-
|
|
82,322
|
Total
Sales
|
$
575,894
|
|
$
185,926
|
|
$
(5,278)
|
|
$
756,542
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
60,663
|
|
$
20,716
|
|
$
(17,334)
|
|
$
64,045
|
|
|
|
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
|
|
Specialty
Chassis &
Vehicles
|
|
Other
|
|
Consolidated
|
Fleet vehicle
sales
|
$
297,627
|
|
$
10,221
|
|
$
(10,221)
|
|
$
297,627
|
Motorhome chassis
sales
|
-
|
|
149,533
|
|
-
|
|
149,533
|
Other specialty
chassis and vehicles
|
-
|
|
22,570
|
|
-
|
|
22,570
|
Aftermarket parts and
assemblies
|
89,922
|
|
10,875
|
|
-
|
|
100,797
|
Total
Sales
|
$
387,549
|
|
$
193,199
|
|
$
(10,221)
|
|
$
570,527
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
26,680
|
|
$
18,620
|
|
$
(9,915)
|
|
$
35,385
|
|
|
Spartan Motors,
Inc. and Subsidiaries
|
Sales and Other
Financial Information by Business Segment
|
(Unaudited)
|
|
Three Months Ended
December 31, 2019 (in thousands of dollars)
|
|
|
Business
Segments
|
|
|
Fleet Vehicles
&
Services
|
|
Specialty
Chassis &
Vehicles
|
|
Other
|
|
Consolidated
|
Fleet vehicle
sales
|
$
122,593
|
|
$
-
|
|
$
-
|
|
$
122,593
|
Motorhome chassis
sales
|
-
|
|
25,306
|
|
-
|
|
25,306
|
Other specialty
chassis and vehicles
|
-
|
|
19,371
|
|
-
|
|
19,371
|
Aftermarket parts and
assemblies
|
9,955
|
|
2,735
|
|
-
|
|
12,690
|
Total
Sales
|
$
132,548
|
|
$
47,412
|
|
$
-
|
|
$
179,960
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
21,076
|
|
$
6,608
|
|
$
(4,098)
|
|
$
23,586
|
|
|
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
|
|
Specialty
Chassis &
Vehicles
|
|
Other
|
|
Consolidated
|
Fleet vehicle
sales
|
$
102,710
|
|
$
2,904
|
|
$
(2,904)
|
|
$
102,710
|
Motorhome chassis
sales
|
-
|
|
33,890
|
|
-
|
|
33,890
|
Other specialty
chassis and vehicles
|
-
|
|
6,002
|
|
-
|
|
6,002
|
Aftermarket parts and
assemblies
|
28,299
|
|
3,015
|
|
-
|
|
31,314
|
Total
Sales
|
$
131,009
|
|
$
45,811
|
|
$
(2,904)
|
|
$
173,916
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
6,476
|
|
$
5,301
|
|
$
(2,425)
|
|
$
9,352
|
|
|
|
|
Sales and Other
Financial Information by Business Segment
|
(Unaudited)
|
|
Period End Backlog
(amounts in thousands of dollars)
|
|
|
|
|
|
|
|
|
|
|
|
Dec. 31,
2019
|
|
Sept. 30,
2019
|
|
Jun. 30,
2019
|
|
Mar. 31,
2019
|
|
Dec. 31,
2018
|
|
|
|
|
|
|
|
|
|
|
Fleet Vehicles and
Services*
|
$
305,876
|
|
$
223,753
|
|
$
272,399
|
|
$
188,528
|
|
$
218,775
|
Motorhome Chassis
*
|
20,097
|
|
26,719
|
|
31,852
|
|
28,470
|
|
36,584
|
Other
Vehicles
|
10,062
|
|
11,769
|
|
-
|
|
-
|
|
-
|
Aftermarket
Parts and Accessories
|
575
|
|
1,459
|
|
565
|
|
667
|
|
1,072
|
Total Specialty
Chassis & Vehicles
|
30,734
|
|
39,947
|
|
32,417
|
|
29,137
|
|
37,656
|
|
|
|
|
|
|
|
|
|
|
Total
Backlog
|
$
336,610
|
|
$
263,700
|
|
$
304,816
|
|
$
217,665
|
|
$
256,431
|
|
|
|
|
|
|
|
|
|
|
* Anticipated time to
fill backlog orders at December 31, 2019; two-12 months for Fleet
Vehicles and Services; less than one month to 12 months for
Specialty Chassis and Vehicles.
|
|
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. In the fourth quarter of 2019, in
connection with the divestiture of our ER business, we refined the
definition of adjusted EBITDA as income from continuing operations
before interest, income taxes, depreciation and amortization, as
adjusted to eliminate the impact of restructuring charges,
acquisition related expenses and adjustments, non-cash stock-based
compensation expenses, and other gains and losses not reflective of
our ongoing operations. Adjusted EBITDA for all prior periods
presented have been recast to conform to the current
presentation.
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.
|
2019
|
% of
sales
|
|
2018
|
% of
sales
|
|
2019
|
% of
sales
|
|
2018
|
% of
sales
|
Income from
continuing operations
|
$
14,285
|
7.9%
|
|
$
4,416
|
2.5%
|
|
$
36,790
|
4.9%
|
|
$
18,116
|
3.2%
|
Net (income) loss
attributable to non-controlling interest
|
(154)
|
|
|
-
|
|
|
(140)
|
|
|
-
|
|
Add
(subtract):
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring and
other related charges
|
46
|
|
|
152
|
|
|
316
|
|
|
662
|
|
Acquisition related
expenses and adjustments
|
1,544
|
|
|
1,150
|
|
|
3,531
|
|
|
1,952
|
|
Non-cash stock-based
compensation expense
|
1,403
|
|
|
949
|
|
|
5,281
|
|
|
4,027
|
|
Deferred tax asset
adjustment
|
-
|
|
|
(14)
|
|
|
135
|
|
|
(313)
|
|
Tax effect of
adjustments
|
(619)
|
|
|
(440)
|
|
|
(2,056)
|
|
|
(1,433)
|
|
Adjusted net
income
|
$
16,505
|
9.2%
|
|
$
6,213
|
3.6%
|
|
$
43,857
|
5.8%
|
|
$
23,011
|
4.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
$
14,285
|
7.9%
|
|
$
4,416
|
2.5%
|
|
$
36,790
|
4.9%
|
|
$
18,116
|
3.2%
|
Net (income) loss
attributable to non-controlling interest
|
(154)
|
|
|
-
|
|
|
(140)
|
|
|
-
|
|
Add
(subtract):
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
2,028
|
|
|
1,562
|
|
|
6,073
|
|
|
6,214
|
|
Taxes on
income
|
3,426
|
|
|
860
|
|
|
10,355
|
|
|
3,334
|
|
Interest
expense
|
1,008
|
|
|
263
|
|
|
1,839
|
|
|
1,080
|
|
EBITDA
|
$
20,593
|
11.4%
|
|
$
7,101
|
4.1%
|
|
$
54,917
|
7.3%
|
|
$
28,744
|
5.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
Add
(subtract):
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring and
other related charges
|
46
|
|
|
152
|
|
|
316
|
|
|
$
662
|
|
Acquisition related
expenses and adjustments
|
1,544
|
|
|
1,150
|
|
|
3,531
|
|
|
1,952
|
|
Non-cash stock-based
compensation expense
|
1,403
|
|
|
949
|
|
|
5,281
|
|
|
4,027
|
|
Adjusted
EBITDA
|
$
23,586
|
13.1%
|
|
$
9,352
|
5.4%
|
|
$
64,045
|
8.5%
|
|
$
35,385
|
6.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net earnings
per share
|
$
0.40
|
|
|
$
0.12
|
|
|
$
1.03
|
|
|
$
0.52
|
|
Add
(subtract):
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring and
other related charges
|
-
|
|
|
-
|
|
|
-
|
|
|
0.02
|
|
Acquisition related
expenses and adjustments
|
0.04
|
|
|
0.03
|
|
|
0.11
|
|
|
0.06
|
|
Non-cash stock-based
compensation expense
|
0.05
|
|
|
0.03
|
|
|
0.15
|
|
|
0.11
|
|
Deferred tax asset
adjustment
|
-
|
|
|
-
|
|
|
-
|
|
|
(0.01)
|
|
Tax effect of
adjustments
|
(0.02)
|
|
|
(0.01)
|
|
|
(0.05)
|
|
|
(0.04)
|
|
Adjusted diluted net
earnings per share
|
$
0.47
|
|
|
$
0.17
|
|
|
$
1.24
|
|
|
$
0.66
|
|
|
|
|
Financial Summary
(Non-GAAP)
|
Consolidated
|
(In thousands, except
per share data)
|
(Unaudited)
|
|
Forecast
|
|
Year Ending
December 31, 2020
|
|
Low
|
|
Mid
|
|
High
|
Income from
continuing operations
|
$
36,978
|
|
$
39,786
|
|
$
42,594
|
Add:
|
|
|
|
|
|
Depreciation and
amortization
|
11,098
|
|
11,098
|
|
11,098
|
Interest
expense
|
1,048
|
|
1,048
|
|
1,048
|
Taxes
|
10,428
|
|
11,220
|
|
12,012
|
|
|
|
|
|
|
Add
(subtract):
|
|
|
|
|
|
Non-cash stock-based
compensation and other charges
|
6,800
|
|
6,800
|
|
6,800
|
Adjusted
EBITDA
|
$
66,352
|
|
$
69,952
|
|
$
73,552
|
|
|
|
|
|
|
Earnings per
share
|
$
1.04
|
|
$
1.12
|
|
$
1.20
|
Add:
|
|
|
|
|
|
Non-cash stock-based
compensation and other charges
|
0.19
|
|
0.19
|
|
0.19
|
Less tax effect of
adjustments
|
(0.03)
|
|
(0.03)
|
|
(0.03)
|
Adjusted earnings per
share
|
$
1.20
|
|
$
1.28
|
|
$
1.36
|
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SOURCE Spartan Motors, Inc.