Supreme Industries Reports Third-Quarter Earnings
GOSHEN, Ind.--Oct. 31, 2001--Supreme Industries, Inc., (AMEX:STS) a leading manufacturer of specialized vehicles including truck bodies and shuttle buses, today announced earnings for its third quarter, which ended September 30, 2001.Third-quarter net income for 2001 was $0.9 million, or $0.08 per share, on revenues of $52.6 million. Last year's third-quarter net income was $1.2 million, or $0.11 per share, on revenues of $56.8 million.
Net income for the first nine months of 2001 was $3.7 million, or $0.34 per share, on revenues of $167.8 million. For the comparable period last year, net income was $6.2 million, or $0.55 per share, on revenues of $201.3 million.
"Although we began the third quarter with an increase in quote activity, it did not translate into firm orders. The weakened economic conditions, which were accelerated by the events of September 11, appear to have delayed order commitments from our customers," said Omer Kropf, President of Supreme Corporation, Supreme Industries' operating subsidiary. "The bus division continued to perform well, but was less robust than the first six months. Our overall backlog at the end of the third quarter was $46.9 million, compared with $61.9 million at September 30, 2000."
The Company's balance sheet continued to improve, with long-term debt at $15.5 million, stockholders' equity at $53.6 million, and book value per share of $4.97 at September 30, 2001. The comparable figures at December 31, 2000, were $25.9 million for long-term debt, $50.8 million for stockholders' equity, and $4.56 for book value per share.
"During this challenging economic period, we used our strong cash flow to further improve our balance sheet and will continue to focus on improving Supreme's operational performance and on reducing costs," Mr. Kropf added. "Declining interest rates and strong chassis-manufacturer buying-incentives should help stimulate product demand. Assuming these positive factors remain in place, we expect to realize the full potential benefits beginning in the second half of 2002, notwithstanding the existing economic uncertainty. Our reputation for outstanding product quality, customer service, and custom manufacturing capabilities should allow us to advance our industry market position during this economic downturn. Near-term visibility of business prospects and financial results, however, has become exceedingly limited and we are proceeding cautiously."
Supreme Industries, Inc., is a nationwide manufacturer of specialized truck bodies that are produced to the specifications of its customers. Supreme also manufactures the StarTrans(R) line of special-purpose "shuttle-type" buses. The Company's transportation equipment products are used by a wide variety of industrial and commercial customers.
This press release contains forward-looking statements, other than historical facts, that reflect the view of the Company's management with respect to future events. 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 can give no assurance that such expectations will prove to have been correct. Important factors that could cause actual results to differ materially from such expectations include, without limitation, limitations on the availability of chassis on which the Company's product is dependent, availability of raw materials, and severe interest rate increases. The Company assumes no obligation to update the forward-looking statements or to update the reason actual results could differ from those contemplated by such forward-looking statements.
(Tables follow)
Supreme Industries, Inc., and Subsidiaries
Consolidated Statements of Income
Three Months Ended Nine Months Ended
September 30, September 30,
----------- ----------- ------------ ------------
2001 2000 2001 2000
----------- ----------- ------------ ------------
Revenues $52,580,066 $56,760,638 $167,790,621 $201,290,743
Costs and expenses:
Cost of sales 45,228,641 47,741,214 142,125,546 168,903,235
Selling,
general
and
administrative 5,550,783 6,319,055 17,823,405 19,687,176
Interest 428,501 752,483 1,799,626 2,414,410
----------- ----------- ------------ ------------
51,207,925 54,812,752 161,748,577 191,004,821
----------- ----------- ------------ ------------
Income before
income taxes 1,372,141 1,947,886 6,042,044 10,285,922
Income taxes 506,000 776,000 2,401,000 4,129,000
----------- ----------- ------------ ------------
Net income $ 866,141 $ 1,171,886 $ 3,641,044 $ 6,156,922
=========== =========== ============ ============
(a)Earnings Per
Share
Basic $.0.08 $.0.11 $.0.34 $.0.55
Diluted $.0.08 $.0.11 $.0.34 $.0.55
(a)Shares used in
the computation
of earnings per
share:
Basic 10,798,384 11,105,846 10,812,758 11,187,470
Diluted 10,878,340 11,105,846 10,884,082 11,191,361
(a)All per share amounts have been restated for all common stock
dividends paid.
Supreme Industries, Inc., and Subsidiaries
Consolidated Balance Sheets
September 30, December 31,
2001 2000
---------------- -----------------
Assets
Current assets $53,165,086 $59,551,413
Property, plant and
equipment, net 39,405,570 41,394,132
Intangible assets, net 977,796 1,095,456
Other assets 976,060 932,514
---------------- -----------------
Total assets $94,524,512 $102,973,515
================ =================
Liabilities and Stockholders'
Equity
Current liabilities $ 23,392,728 $24,316,266
Long-term debt 15,535,693 25,859,972
Deferred income taxes 1,984,466 1,984,466
---------------- -----------------
Total liabilities 40,912,887 52,160,704
Total stockholders' equity 53,611,625 50,812,811
---------------- -----------------
Total liabilities and
stockholders' equity $94,524,512 $102,973,515
================ =================