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Supreme Industries, Inc.
(NYSE MKT: STS), a leading manufacturer of specialized commercial vehicles including truck bodies, shuttle buses, and specialty vehicles, today announced earnings for its third quarter ended Sept. 28, 2013. All earnings per share and share figures have been adjusted for the 5% stock dividend paid in the second quarter of 2013.
2013 Third-Quarter Results
Supreme reported strong order intake in the third quarter led by significant fleet business and improved retail demand for the Company’s truck bodies. Backlog at the end of the quarter increased 36% to $85.6 million, compared with $63.0 million at the end of last year’s third quarter.
Consolidated net sales for the third quarter declined 6.1%, to $67.3 million, compared with $71.7 million last year. The revenue decrease was attributable to lower sales volume in the bus and specialty vehicle divisions along with OEM chassis delays in the truck division.
Gross margin declined to 15.9%, or $10.7 million, compared with 16.1%, or $11.6 million, in the third quarter of 2012, primarily due to lower sales during the quarter on fixed overhead expenses. Additionally, the truck division experienced incremental training costs associated with the startup of the fleet business.
Income tax expense of $0.6 million was recorded in the quarter due to the Company’s return to normalized tax rates. In last year’s comparable period, the Company recorded income tax expense of $0.1 million which included the reversal of a deferred tax valuation allowance due to improved profitability.
Net income for the third quarter was $1.5 million, or $0.09 per diluted share, compared with net income of $3.6 million, or $0.22 per diluted share, last year. On a proforma basis, adjusting for the 2012 legal costs associated with the King County lawsuit and normalizing the 2012 income tax expense, last year’s earnings per share would have been $0.17 per diluted share. A supplemental reconciliation of net income and net income per share is included with this press release.