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.
Working capital was $41.4 million at Sept. 29, 2012, compared with $35.4 million at Dec. 31, 2011. The Company made investments totaling $5.4 million in facilities and equipment during the 2012 nine months. Total debt declined to $12.3 million at Sept. 29, 2012, compared with $15.9 million at Dec. 31, 2011, and $17.1 million at Oct. 1, 2011. Stockholders’ equity increased 21% to $66.7 million, or $4.39 per share, at Sept. 29, 2012, compared with $54.9 million, or $3.71 per share, at Dec. 31, 2011. Net cash provided by operating activities during the nine months of 2012 totaled $7.9 million, compared with net cash provided by operating activities of $10.0 million in 2011.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV