Supreme Industries, Inc.
(NYSE MKT: STS)
, a leading manufacturer of specialized commercial vehicles including truck bodies, shuttle buses, and armored vehicles, today announced significantly improved earnings for its full year ended Dec. 29, 2012.
2012 Fourth-Quarter Results
Consolidated net sales of $57.7 million for the fourth quarter declined 11.8% from $65.5 million in last year’s comparable period. The lower sales related to two large orders in the fourth quarter of 2011 that were not repeated in 2012, along with intense competition and increased discounting in the bus industry on state and municipal bid orders.
Gross margin as a percentage of sales declined slightly to 13.2%, compared with 13.4% in last year’s fourth quarter. Gross profit declined to $7.6 million from last year’s $8.7 million on the lower sales volume and a change in product mix. Other income increased $0.2 million due to a gain on sale of an investment. For the quarter, the Company reported net income of $0.4 million, or $0.02 per diluted share, compared with net income of $1.9 million, or $0.12 per diluted share, in the fourth quarter of 2011.
Supreme’s Chief Financial Officer and Interim Chief Executive Officer Matthew Long said: “We continue to successfully implement the strategy of concentrating on sales and markets that meet or exceed our margin criteria. By enhancing manufacturing efficiencies and better managing costs, we have successfully developed a model that can drive sustainable profits into the future. Entering 2013, we are encouraged by our team’s progress to date, and by the opportunities we see before us to continue satisfying our customers with on-time delivery of specialty vehicles that represent the very best quality, safety and value.”
2012 Full-Year Results
Consolidated net sales decreased 4.7%, to $286.1 million, from $300.4 million last year. Gross profit increased 33.9%, to $43.5 million, from 2011’s $32.5 million. Gross profit, as a percentage of sales, improved dramatically to 15.2%, compared with 10.8% in 2011. The 4.4% increase in gross margin percentage is the result of refined pricing methodologies, improved labor efficiencies and the redesign of certain manufacturing facilities.