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 second quarter and first half ended June 26, 2010.

During the second quarter, the Company experienced improved demand for all major product lines including truck, bus and armored vehicles. Sales order backlog at June 26, 2010, was up 35% to $91.7 million, versus $68.1 million at year-end 2009, and up 50% from $61.2 million a year ago.

Net sales for the 2010 second quarter increased 27% to $60.5 million, compared with $47.6 million in the prior-year quarter. For the first six months of 2010, net sales increased 13% to $109.0 million, versus $96.2 million in 2009’s first half.

Compared with last year’s second quarter, sales in Supreme’s core dry-freight and armored vehicle divisions improved 39% and 52%, respectively. The Company’s bus division posted a 5% sales increase versus the prior-year period. Net sales also improved in each of the Company’s primary product lines during the first half of 2010, with dry-freight and armored vehicles reporting 10% and 11% gains, respectively. Bus sales increased 24% versus the first six months of 2009.

The second-quarter loss from continuing operations before income taxes was $18,000, compared with the pre-tax loss of $1.5 million for the year-ago quarter. For the first half of 2010, the Company reported a loss from continuing operations before income taxes of $2.4 million, versus the 2009 pre-tax loss of $4.4 million. The Company did not record an income tax benefit for the three and six months ended June 26, 2010, due to having fully utilized its loss carryback benefits in 2009. This resulted in a valuation allowance for the potential future tax benefits of the net operating loss. Accordingly, the after-tax loss from continuing operations was $18,000, or breakeven on a per-share basis, compared with an after-tax loss of $0.9 million, or $0.07 per share, in 2009’s second quarter. For the first six months of 2010, the after-tax loss from continuing operations was $2.4 million, or $0.17 per share, compared with an after-tax loss of $2.1 million, or $0.15 per share, in 2009’s comparable period.

Supreme’s President and Chief Operating Officer Robert W. Wilson commented: “Improving truck markets allowed Supreme to realize revenue growth in its major truck product categories, but such growth has to be viewed in the context of the severely depressed levels of truck sales in 2009. We believe that, as a result of the above-average fleet age, an increasing freight tonnage index and our improving performance, as well as other economic indicators, the market for our core truck products should continue to gradually recover.”

Second-quarter gross profit increased 55%, or more than $2.1 million, to $5.9 million, up from $3.8 million last year. Gross profit margin as a percentage of net sales improved to 9.7% for the 2010 second quarter and 8.6% for the first half of 2010. That compares with 8.1% in the second quarter of 2009 and 7.0% in the first half of 2009. The year-over-year gross margin increases for both periods were primarily the result of higher unit volume.

Selling, general and administrative expenses increased $0.5 million, or 10%, to $5.7 million for the second quarter and, for the first half, were up 5% to $11.3 million. This compares with SG&A of $5.2 million and $10.8 million for the respective periods in 2009. The increases were primarily attributable to higher selling expenses as a result of increased sales volumes. As a percentage of net sales, SG&A declined to 9%, compared with 11% of sales in the second quarter of 2009. For the first half, SG&A expense was 10% of sales, versus 11% in last year’s first half.

Interest expense was $0.4 million and $0.9 million for the second quarter and first half of 2010, respectively, compared with $0.5 million and $1.0 million for the corresponding periods in 2009.

Net cash used for operating activities during the first half of 2010 totaled $2.2 million and primarily reflected increased inventory to support higher sales levels and backlog. Working capital was $21.1 million at June 26, 2010, compared with $21.5 million at year-end 2009, and the working capital ratio was 1.4 to 1 versus 1.5 to 1. Total debt was relatively flat at $28.8 million at June 26, 2010, and as a percentage of total assets, stood at 25.2%, versus 25.0% at Dec. 26, 2009. Stockholders’ equity was $60.5 million, or $4.23 per share, at the end of the second quarter, compared with $62.6 million, or $4.40 per share, at Dec. 26, 2009.

Wilson concluded: “Actions taken during the economic downturn contributed to meaningful improvements in our second-quarter operating performance. Our efforts have positioned us to benefit from a gradually recovering economic environment, as pent-up demand is starting to translate into orders. Although certain signals point to an improving market for our products, we remain cautious and continue to focus on managing costs, enhancing revenue opportunities at higher margins and further reducing debt as we restore profitability.”

A live webcast of Supreme Industries' earnings conference call can be heard Thursday, Aug. 12, 2010, at 9 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 for approximately 30 days.

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
     
 
Three Months Ended Six Months Ended
June 26, June 27, June 26, June 27,
2010 2009 2010 2009
Revenue:
Net sales $ 60,544,185 $ 47,582,740 $ 109,041,002 $ 96,204,729
Cost of sales 54,665,742   43,740,823   99,654,089   89,458,736  
 
Gross profit 5,878,443 3,841,917 9,386,913 6,745,993
 
Selling, general and administrative expenses 5,716,945 5,196,414 11,336,875 10,842,867
Other income (179,837 ) (374,548 ) (397,005 ) (674,287 )
 
Operating income (loss) 341,335 (979,949 ) (1,552,957 ) (3,422,587 )
 
Interest expense 359,430   519,552   878,750   976,878  
 
Loss from continuing operations before income taxes (18,095 ) (1,499,501 ) (2,431,707 ) (4,399,465 )
 
Income tax benefit -   (573,416 ) -   (2,288,622 )
 
Loss from continuing operations (18,095 ) (926,085 ) (2,431,707 ) (2,110,843 )
Discontinued operations
Operating loss of discontinued
motorhome operations (143,970 ) (180,961 ) (138,766 ) (394,180 )

Net Loss
$ (162,065 ) $ (1,107,046 ) $ (2,570,473 ) $ (2,505,023 )

Loss Per Share
Loss from continuing operations $ (0.00 ) $ (0.07 ) $ (0.17 ) $ (0.15 )
Loss from discontinued operations (0.01 ) (0.01 ) (0.01 ) (0.03 )
Net Loss $ (0.01 ) $ (0.08 ) $ (0.18 ) $ (0.18 )

Shares used in the computation of loss per share:
Basic 14,292,955 14,185,065 14,274,747 14,165,215
Diluted 14,292,955 14,185,065 14,274,747 14,165,215
Supreme Industries, Inc. and Subsidiaries

Consolidated Condensed Balance Sheets
   
 
June 26, Dec. 26,
2010 2009
 
Assets
Current assets $ 72,716,432 $ 66,002,138
Property, plant and equipment, net 41,074,669 42,237,084
Other assets 567,712 1,181,357
 
Total assets   $114,358,813 $109,420,579
 
Liabilities
Current liabilities $ 51,618,705 $ 44,508,269
Long-term debt 991,308 1,115,410
Deferred income taxes 1,211,262 1,211,262
Total liabilities 53,821,275 46,834,941
Total stockholders’ equity 60,537,538 62,585,638
 
Total liabilities and stockholders’ equity   $114,358,813 $109,420,579

Copyright Business Wire 2010

More from Press Releases

NFL Pushes for Regulation Following Supreme Court's Sports Gambling Ruling

NFL Pushes for Regulation Following Supreme Court's Sports Gambling Ruling

21st Century Fox Scoops Up Local News Stations

21st Century Fox Scoops Up Local News Stations

Walmart CEO: 'We Are Transforming Globally' With Flipkart

Walmart CEO: 'We Are Transforming Globally' With Flipkart

Three-Part FREE Webinar Series

Three-Part FREE Webinar Series

March 24 Full-Day Course Offering: Professional Approach to Trading SPX

March 24 Full-Day Course Offering: Professional Approach to Trading SPX