Supreme President and Chief Executive Officer Kim Korth said: “Given the continuing significant increase in sales compared to 2010, Supreme has remained focused on improving our execution and our ability to drive more of our performance to the bottom line. We have expanded our use of common operating standards for all key processes and we have established in-depth metrics at all of our facilities to better guide our decisions. While I am encouraged that, absent the legal settlement costs incurred in this quarter, Supreme did return to profitability, it still is not at an acceptable level. We need to continue to aggressively review all aspects of our business for profit improvement opportunities while simultaneously meeting or exceeding our customers’ expectations.”
Supreme was in compliance with its minimum EBITDA and its Tangible Net Worth financial covenants under its senior bank loan agreement. Borrowings under this current agreement were $24.2 million as of July 2, 2011 versus $25.5 million on December 25, 2010.
“The truck market has remained very robust although we are obviously being cautious given recent adverse developments in our economy. Our retail truck orders have remained strong and we are focused on deepening our position in a number of key market segments during the remainder of 2011. The bus market was soft for the first half of the year but we anticipate a modest recovery for the second half of 2011. We have taken appropriate steps to structure the bus business for the current economic market conditions while aggressively expanding into new niche sectors. While our armored/specialty vehicle business was negatively impacted by the lengthy budget negotiations in Washington during the first half of this year, its performance has remained relatively steady and we are beginning to see positive new growth opportunities in both our current and targeted customer segments. Supreme is committed to continuous improvement of our key performance measures and to translating these improvements into a sustainable competitive position going forward,” Korth concluded.