Supreme Industries, Inc. (NYSE Amex: STS), a leading manufacturer of specialized commercial vehicles, including truck bodies, shuttle buses and armored vehicles, today announced improved financial results for its third quarter ended Oct. 1, 2011.
Consolidated net sales increased 19% to $72.8 million in the third quarter, up from $61.5 million in last year’s comparable period. The Company reported net income from continuing operations of $1.5 million, or $0.10 per diluted share, for the 2011 quarter, compared with income from continuing operations of $0.3 million, or $0.02 per diluted share, in the prior year. Including the impact from discontinued operations, net income improved to $0.10 per diluted share, reversing the year-ago net loss of $0.01 per share.
Supreme President and Chief Executive Officer Kim Korth said: “We are pleased to report a positive quarter for Supreme. We have been working aggressively on multiple fronts to improve our performance, and it is gratifying to see these efforts begin to show up on the bottom line. The strategy of deploying robust and integrated metrics for managing all aspects of the business has resulted in much tighter organizational alignment which, in turn, enables us to further lever Supreme’s national presence and scale. In addition to new practices and procedures, we are making strategic investments in our facilities designed to yield added enhancements to future productivity and flexibility.”
Gross profit rose 55% to $9.3 million from last year’s $6.0 million. Gross margin, as a percentage of sales, expanded 303 basis points to 12.79%, compared with 9.76% in the third quarter of 2010, primarily due to improved product mix, better management of labor and overhead, and increased sales. The Company said order levels remained strong during the quarter. The sales order backlog at quarter end was $90 million, compared with $89 million a year ago.
Selling, general and administrative expenses were $6.7 million in the third quarter of 2011, compared with $5.2 million in 2010. The increase was due to higher commissions associated with increased sales volume and marketing programs, as well as approximately $0.2 million of non-recurring general and administrative expenses from investments aimed at improving operations and severance costs.