Supreme Industries, Inc. (NYSE Amex: STS), a leading manufacturer of specialized commercial vehicles, including truck bodies, shuttle buses, armored vehicles and homeland response vehicles, today announced financial results for its first quarter ended March 27, 2010.

First-quarter 2010 consolidated net sales were essentially unchanged at $48.5 million, compared with $48.6 million in the same period a year ago. Gross profit improved to 7.2% from last year’s 6.0%, reflecting a higher proportion of specialty products sold and cost reductions. Selling, general and administrative expenses were flat at $5.6 million year over year, as was interest expense of $0.5 million. For the quarter, operating loss narrowed to $1.9 million from the loss of $2.4 million a year ago. The Company did not record an income tax benefit for the three months ended March 27, 2010, due to having recorded a valuation allowance for the net operating losses incurred in the quarter. This resulted in the reported net loss from continuing operations of $2.4 million, or $0.17 per share, in the first quarter of 2010 versus the loss from continuing operations of $1.2 million, or $0.08 per share, in the comparable quarter in 2009, during which the Company recorded a tax benefit of $1.7 million, or $0.12 per share. Supreme noted that, in the fourth quarter of 2009, its Silver Crown luxury motorhome business was terminated and prior-period operating results have been reclassified as discontinued operations.

The sales order backlog at March 27, 2010 was $69.4 million, up slightly from the $68.1 million reported at Dec. 26, 2009. By the end of April 2010, backlog had increased by more than $20 million, reaching $89.7 million and marking the highest level of backlog for the Company since 2006.

Supreme President and Chief Operating Officer Robert W. Wilson commented: “We improved our gross profit on continued recessionary-level sales volume and we realized a significant increase in order activity in April, particularly in our armored and bus divisions. Additionally, truck dealers began to experience increased customer orders, which led to improved demand for our core product categories. Orders for armored trucks rose 52%, reflecting a $10 million order from the U.S. Department of State and an increase in orders for cash-in-transit vehicles. Backlog for our core truck and bus divisions increased 24% and 11%, respectively, at the end of April 2010 as compared to year-end. The increased backlog reinforces the recent signs of improvement we have been seeing across the industries we serve and we are encouraged by these developments. Additionally, we continue to execute our plan to make operations leaner and have implemented additional cost reductions that will be realized during the remainder of 2010.”

Cash provided by operating activities during the quarter increased to $6.2 million—up from $5.8 million in first-quarter 2009. At March 27, 2010, working capital totaled $20.5 million and the working capital ratio was 1.5 to 1. The Company continues to improve its inventory management practices, which resulted in higher inventory turns—an increase of more than 22% quarter over quarter. Total debt was reduced by $6.6 million to $20.7 million and, as a percentage of total assets, improved to 19.5% from 24.9% at the end of 2009. Stockholders’ equity was $60.4 million, or $4.24 per share, compared with $62.6 million, or $4.40 per share, at the end of last year.

“We believe Supreme is poised to rebound from the economic downturn as one of the strongest companies in our industry. Investments in market-expanding opportunities and product enhancements, as well as our cost reductions and improvements in asset management, made during the recession should augment the Company’s performance in a recovering industry environment. With significant pent-up demand for trucks and recent order activity, management is cautiously optimistic about the prospects for improving sales of our re-designed Signature core truck product,” Wilson concluded.

A live webcast of Supreme Industries' earnings conference call can be heard tomorrow, May 13, 2010, at 9:00 a.m. Eastern Time at http://www.SupremeInd.com. Those unable to participate in the live conference call may access a replay, which will be available on the Company’s website.

To be added to Supreme Industries’ e-mail distribution list, please click on the link below:

http://www.clearperspectivegroup.com/clearsite/sts/emailoptin.html

News releases and other information on the Company are available on the Internet at:

http://www.SupremeInd.com or http://www.b2i.us/irpass.asp?BzID=1482&to=ea&s=0

About Supreme Industries

Supreme Industries, Inc. ( NYSE Amex: STS), is a nationwide manufacturer of specialized truck bodies produced to the specifications of its customers. Supreme also manufactures special-purpose “shuttle-type” buses, armored vehicles and homeland response vehicles. The Company's transportation equipment products are used by a wide variety of industrial, commercial, law enforcement and homeland security customers.

This report contains forward-looking statements, other than historical facts, which reflect the view of management with respect to future events. When used in this report, words such as “believe,” “expect,” “anticipate,” “estimate,” “intend,” and similar expressions, as they relate to the Company or its plans or operations, identify forward-looking statements. Such forward-looking statements are based on assumptions made by, and information currently available to, management. Although management believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that the expectations reflected in such forward-looking statements are reasonable, and it can give no assurance that such expectations will prove to be correct. Important factors that could cause actual results to differ materially from such expectations include, without limitation, an economic slowdown in the specialized vehicle industry, limitations on the availability of chassis on which the Company’s product is dependent, availability of raw materials, raw material cost increases and severe interest rate increases. Furthermore, the Company can provide no assurance that such raw material cost increases can be passed on to its customers through implementation of price increases for the Company’s products. The forward-looking statements contained herein reflect the current view of management with respect to future events and are subject to those factors and other risks, uncertainties, and assumptions relating to the operations, results of operations, cash flows and financial position of the Company. The Company assumes no obligation to update the forward-looking statements or to update the reasons actual results could differ from those contemplated by such forward-looking statements.

─FINANCIAL TABLES FOLLOW─

Supreme Industries, Inc. and Subsidiaries

Consolidated Statements of Operations (Unaudited)
 
Three Months Ended
March 27,   March 28,
2010 2009
 
Net sales $ 48,496,817 $ 48,621,989
Cost of sales 44,988,347   45,717,913  
Gross profit 3,508,470 2,904,076
 
Selling, general and administrative expenses 5,619,930 5,646,453
Other income (217,168 ) (299,739 )
Operating loss (1,894,292 ) (2,442,638 )
 
Interest expense 519,320   457,326  
Loss from continuing operations before
income taxes (2,413,612 ) (2,899,964 )
 
Income tax benefit -   (1,715,206 )
Loss from continuing operations (2,413,612 ) (1,184,758 )
 
Discontinued operations
Operating income (loss) of discontinued motorhome
operations, net of tax 5,204   (213,219 )
Net loss $ (2,408,408 ) $ (1,397,977 )
 
Loss Per Share:
Loss from continuing operations $ (0.17 ) $ (0.08 )
Loss from discontinued operations -   (0.02 )
Net loss $ (0.17 ) $ (0.10 )
 
Shares used in the computation of
loss per share:
Basic 14,256,540 14,156,657
Diluted 14,256,540 14,156,657
Supreme Industries, Inc. and Subsidiaries

Consolidated Condensed Balance Sheets
  March 27,   December 26,
2010 2009
(Unaudited)
Assets
 
Current assets $ 63,757,408 $ 66,002,138
Property, plant and equipment, net 41,690,764 42,237,084
Other assets 569,898 1,181,357
 
Total assets $ 106,018,070 $ 109,420,579
 
Liabilities
Current liabilities 43,281,252 44,508,269
Long-term debt 1,103,402 1,115,410
Deferred income taxes 1,211,262 1,211,262
Total liabilities 45,595,916 46,834,941
Stockholders' equity 60,422,154 62,585,638
 
Total liabilities and stockholders' equity $ 106,018,070 $ 109,420,579

Copyright Business Wire 2010

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