The Company reported net income from continuing operations of $11.4 million, or $0.74 per diluted share, for the 2012 nine months, compared with a loss from continuing operations of $0.4 million, or $0.02 per share, in the prior-year nine months. Net income improved to $0.74 per diluted share, reversing the year-ago net loss of $0.07 per share, which included the impact from discontinued operations.As the Company has generated taxable income, it has been reversing the tax valuation allowance previously recorded on its net deferred tax assets, resulting in an effective rate of 14.1% for the three months and 5.4% for the nine months ended Sept. 29, 2012. During the third quarter of 2012, the Company determined it was likely the remaining net deferred tax assets will be realized, based upon sustained profitability and assumed continuing positive operating results. As a result, the Company reversed approximately $0.8 million of the valuation allowance during the nine months ended Sept. 29, 2012, with the reversal recorded as a non-cash income tax credit in the Company’s consolidated statement of operations. Beginning in the first quarter of 2013, Supreme expects to record income taxes at normalized rates. The 2011 results did not include income taxes due to a valuation allowance from prior-years’ incurred losses.
Supreme Industries Reports Improved 2012 Third-Quarter Earnings
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