Operating income surged to $2.8 million, up 387%, from the $0.6 million reported in last year’s third quarter.
To support future growth, Supreme entered into a new four-year credit agreement during the quarter with Wells Fargo Capital Finance, LLC, which includes a revolving line of credit of up to $45 million. Interest expense during the quarter included approximately $0.8 million from accelerated amortization of capitalized bank refinancing fees related to the Company’s previous credit agreement. As a result, reported interest expense was $1.2 million during the third quarter, compared with $0.3 million last year.
Excluding non-recurring charges and the above-mentioned bank refinancing fees, the Company would have achieved third-quarter net income from continuing operations of approximately $2.5 million, or $0.17 per diluted share, versus $0.7 million, or $0.05 per diluted share, in the third quarter of 2010. Last year’s results from continuing operations were negatively impacted by approximately $0.4 million of non-recurring legal settlement and related costs.
“Our internal efforts have positioned Supreme to capitalize on the recovering core truck market and will also support our growth strategies in the bus and armored divisions,” Korth added. “With the recent closing of our new credit agreement with Wells Fargo, we now have the foundation in place to make on going improvements in our business and to continue our efforts to enhance shareholder value.”A live webcast of Supreme Industries' earnings conference call can be heard tomorrow at 9 a.m. Eastern Time at http://www.SupremeInd.com. Those unable to participate in the live conference call may access a replay, which will be available on Supreme’s website for approximately 30 days. To be added to Supreme Industries’ email distribution list, please click on the link below: http://www.clearperspectivegroup.com/clearsite/sts/emailoptin.html. About Supreme Industries Supreme Industries, Inc. (NYSE Amex: STS), is a nationwide manufacturer of specialized truck bodies produced to the specifications of its customers. Supreme also manufactures special-purpose “shuttle-type” buses and armored vehicles. The Company's transportation equipment products are used by a wide variety of industrial, commercial and law enforcement customers.