Supreme Industries, Inc.
(NYSE MKT: STS)
, a leading manufacturer of specialized commercial vehicles including truck bodies and specialty vehicles, today announced financial results for its second quarter ended June 28, 2014. The Company divested its unprofitable shuttle bus operations in March 2014, which have been reclassified as discontinued operations in its financial statements.
2014 Second-Quarter Results
Consolidated net sales from continuing operations grew to $71.6 million in the second quarter, reflecting a 3.8% increase compared with $68.9 million during the second quarter of last year. Net income per diluted share was $0.25 versus $0.06 during the second quarter of 2013; on a continuing operations basis, net income per diluted share was $0.25 and $0.24 for the respective periods.
Gross profit from continuing operations was $14.6 million, or 20.5% of sales, compared with $14.5 million, or 21.1% of sales, in the second quarter of 2013. The current quarter margin percentage contraction was primarily due to customer and product mix. Additionally, prior year margins benefited from a greater proportion of higher-margin retail truck sales with fleet orders being placed later than normal in 2013. This year, fleet ordering patterns have returned to normal and as a result, the second quarter of 2014 included a higher percentage of fleet business versus the prior year.
Supreme settled a lawsuit in the second quarter of 2013 that contributed to a $3.0 million after-tax net loss being recorded in its discontinued shuttle bus operations for that quarter. Including the negative impact from discontinued operations on 2013’s results, reported net income improved to $4.3 million in the quarter, or $0.25 per diluted share, up from reported net income of $0.9 million, or $0.06 per diluted share, in last year’s comparable quarter.
Operating income from continuing operations in the second quarter of 2014 was $6.4 million, equal to last year’s second quarter operating income. Income tax expense declined in the second quarter to $2.1 million, from $2.4 million in the same quarter last year, due to lower effective tax rates. Net income from continuing operations improved to $4.3 million, or $0.25 per diluted share during the second quarter of 2014, up from $4.0 million, or $0.24 per diluted share in the same quarter of 2013.