Supreme Industries, Inc.
(NYSE MKT: STS)
, a leading manufacturer of specialized commercial vehicles including truck bodies, shuttle buses, and armored vehicles, today announced strong year-over-year earnings growth for its third quarter ended Sept. 29, 2012.
2012 Third-Quarter Results
Consolidated net sales decreased 1.6% to $71.7 million for the third quarter, down from $72.8 million in last year’s comparable period. Gross profit improved 25% to $11.6 million from last year’s $9.3 million. Gross profit, as a percentage of sales, increased to 16.1%, compared with 12.7% in the third quarter of 2011, and 16.0% in the second quarter of 2012. The substantial year-over-year gross margin improvement reflects better pricing, favorable product mix and efficiency improvements.
For the quarter, the Company reported net income of $3.6 million, or $0.23 per diluted share, compared with net income of $1.5 million, or $0.10 per diluted share, in the third quarter of 2011.
Interest expense of $0.1 million compared with $1.2 million in third-quarter 2011, which included the writeoff of capitalized bank fees.
Supreme’s Chief Financial Officer and Interim Chief Executive Officer Matthew Long said: “We believe these results are a reflection of the effective implementation of our business strategy combined with improved market conditions. Our business strategies, which emphasize better pricing disciplines and manufacturing efficiencies, continue to produce gross margin improvements while driving increased profits to the bottom line. This positive trend supports our focus on profitable orders, which has resulted in increased profits, notwithstanding a slight decrease in sales.”
2012 Nine-Month Results
Consolidated net sales decreased 2.8% to $228.4 million for the 2012 nine months, down from $234.9 million in last year’s comparable period. Gross profit improved 51% to $35.9 million from last year’s $23.8 million. Gross profit, as a percentage of sales, increased to 15.7%, compared with 10.1% for the 2011 nine-month period.