Supreme Industries Reports First-Quarter 2011 Financial Results

Supreme Industries, Inc. (NYSE Amex: STS), a leading manufacturer of specialized commercial vehicles, including truck bodies, shuttle buses, and armored vehicles, today announced financial results for its first quarter ended April 2, 2011.

First-quarter 2011 consolidated net sales were $68.4 million, an increase of approximately 49% over the $46 million in net sales in the same period a year ago. Gross profit was $6.5 million, or 9.5% of net sales, up by approximately 71% from last year’s $3.8 million or 8.4%. Selling, general and administrative expenses were $7.3 million for the first quarter of 2011. At 10.7% of sales, these expenses were lower than the 12.1% recorded for the same period in 2010. Interest expense was also lower, at $0.3 million compared to $0.5 million in first quarter 2010.

For the quarter, the Company experienced an operating loss from continuing operations of $0.7 million, versus a $1.5 million loss in the first quarter of 2010. The Company reported a net loss from continuing operations of $1 million or $0.07 per share, in the first quarter of 2011, compared to the loss from continuing operations of $2 million or $0.14 per share in the same quarter of 2010.

The sales order backlog continued to grow during the first quarter and totaled a record $133 million at quarter end compared with $68 million a year ago. Major fleet customers have returned to the market and Supreme was awarded a larger share of their business.

Supreme President and Chief Executive Officer Kim Korth said: “As our business has experienced dramatic growth from the depths of the recession, we have been very focused on successfully managing that ramp-up and driving improvements throughout our operations. By managing to metrics and sharing best practices across our manufacturing facilities, we are working to improve bottom-line financial performance while we deliver customers the high-value, high-quality products that they have come to expect from Supreme.”

Supreme was in compliance with its minimum EBITDA and its Tangible Net Worth financial covenants under its senior bank loan agreement. Borrowings were $25.1 million as of April 2, 2011 versus $25.5 million on December 25, 2010.

“We believe that the truck market will remain strong as we finish out this year’s fleet run and we concentrate our energies on our retail truck business in the second half of the year. While the bus market is likely to experience some softening in 2012 due to the financial stress of many local and state governments, we are using this slowdown to expand our efforts with niche private sector customers. We are also encouraged by the continued growth opportunities in our Armored/Specialty Vehicles business. Supreme is positioning itself to improve its competitive position in all of its key markets and to establish consistent performance at an efficiency that rewards the Company, our employees, and stakeholders,” Korth concluded. “We look forward to continuing to make advancements in our results.”

A live webcast of Supreme Industries' earnings conference call can be heard tomorrow 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 Supreme’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.

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.

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
 
 

Supreme Industries, Inc. and Subsidiaries
Consolidated Statements of Income (Unaudited)
 
        Three Months Ended
April 2, 2011     March 27, 2010
Net sales $ 68,399,974 $ 46,042,270
Cost of sales   61,876,822     42,195,969  
Gross profit 6,523,152 3,846,301
 
Selling, general and administrative expenses 7,311,407 5,560,620
Other income   (60,753 )   (188,363 )
Operating loss (727,502 ) (1,525,956 )
 
Interest expense   279,858     493,772  
Loss from continuing operations before income taxes (1,007,360 ) (2,019,728 )
 
Income taxes   -     -  
Loss from continuing operations (1,007,360 ) (2,019,728 )
 
Discontinued operations
Operating loss of discontinued Oregon operations (357,139 ) (393,884 )
Operating income of discontinued motorhome operations   -     5,204  
Net loss $ (1,364,499 ) $ (2,408,408 )
Loss per share:
Loss from continuing operations, net of tax $ (0.07 ) $ (0.14 )
Loss from discontinued operations, net of tax   (0.03 )   (0.03 )
Net loss $ (0.10 ) $ (0.17 )
Shares used in the computation of loss per share:
Basic 14,360,917 14,256,540
Diluted 14,360,917 14,256,540
 
 

Supreme Industries, Inc. and Subsidiaries
Consolidated Balance Sheets
 
April 2, 2011 Dec. 25, 2010
(Unaudited) (Audited)
Assets
Current assets $ 95,441,341 $ 68,443,939
Property, plant and equipment, net 32,595,633 33,054,891
Other assets   36,438     38,624  
Total assets $ 128,073,412   $ 101,537,454  
Liabilities
Current liabilities $ 76,585,949 $ 48,833,930
Long-term debt   754,525     770,847  
Total liabilities 77,340,474 49,604,777
Total stockholders' equity   50,732,938     51,932,677  
Total liabilities and stockholders' equity $ 128,073,412   $ 101,537,454  
 

Copyright Business Wire 2010

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