Supreme Industries Reports Fourth-Quarter and Annual Earnings For 2001
GOSHEN, Ind.--Feb. 6, 2002--Supreme Industries, Inc. (AMEX:STS), a leading manufacturer of specialized vehicles including truck bodies and shuttle buses, today announced earnings for its fourth quarter and full year ending December 31, 2001.Fourth-quarter revenues for 2001 declined to $54.6 million from $57.0 million for 2000. Net income was $1.3 million, or $0.12 per diluted share, down from $1.8 million, or $0.17 per share, in the corresponding period last year.
For 2001, revenues declined to $226.7 million from last year's record high $263.5 million. Net income for the year declined to $4.9 million, or $0.45 per diluted share, from $8.0 million, or $0.71 per diluted share, last year. Gross profit margin for the twelve-month period decreased slightly to 14.0 percent from 14.8 percent in 2000 due principally to competitive pricing pressures and revenues declining faster than expenses.
The Company continues to generate strong cash flow and has used it to further improve the balance sheet. At December 31, 2001, long-term debt declined to $13.1 million from $25.9 million at December 31, 2000, and stockholders' equity increased to $54.9 million. Inventory also declined by $5.1 million as a result of improved inventory management efforts and reduced manufacturing activity.
"The fourth quarter and full-year revenue decline was largely due to a significant reduction in business capital spending, which led to an industry-wide decrease in truck body demand," said Mr. Omer Kropf, President of Supreme Corporation, Supreme Industries' operating subsidiary. "We also had a consolidation among truck rental companies that caused a reduction in their fleet sizes. During this challenging economic period, we are focused on controlling costs and improving our operational efficiency while maintaining a strong balance sheet. We are also pleased to have exceeded our goal of reducing selling, general and administrative ("SG&A") expenses by $1.0 million in 2001 as SG&A expenses declined $1.4 million to $21.5 million from $22.9 million last year.
"We are cautiously optimistic about 2002, subject to an improvement in the economy. Relatively low inventory levels at truck dealers and distributors, a slowing of consolidation in the truck rental industry, and several years of low order rates from fleet customers point toward a rebound in truck-body demand. Our strong market share position along with our portfolio of new products place us in a solid position to improve sales and earnings in the coming year."
A live webcast of Supreme Industries' earnings conference call can be heard today at 4:30 p.m. at www.supremeind.com.
Supreme Industries, Inc., is a nationwide manufacturer of specialized vehicles including 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.
Supreme Industries, Inc., and Subsidiaries
Consolidated Statements of Income
Three Months Ended Twelve Months Ended
December 31, December 31,
2001 2000 2001 2000
----------------------------------------------------
Revenues $54,633,575 $56,997,518 $226,653,780 $263,457,690
Costs and
expenses:
Cost of sales 47,396,881 48,262,151 194,979,382 224,355,674
Selling,
general and
administrative 4,855,823 5,225,138 21,451,857 22,891,454
Interest 368,733 705,177 2,168,359 3,119,588
----------- ----------- ------------ ------------
52,621,437 54,192,466 218,599,598 250,366,716
----------- ----------- ------------ ------------
Income before
income taxes 2,012,138 2,805,052 8,054,182 13,090,974
Income taxes 741,000 977,000 3,142,000 5,106,000
----------- ----------- ------------ ------------
Net income $ 1,271,138 $ 1,828,052 $ 4,912,182 $ 7,984,974
=========== =========== ============ ============
Earnings Per
Share
Basic $ 0.12 $ 0.17 $ 0.45 $ 0.72
Diluted $ 0.12 $ 0.17 $ 0.45 $ 0.71
Shares used in
the computation
of earnings
per share:
Basic 10,798,384 10,991,494 10,809,135 11,132,967
Diluted 10,869,330 10,991,494 10,878,980 11,265,935
Supreme Industries, Inc., and Subsidiaries
Consolidated Balance Sheets
December 31, December 31,
2001 2000
------------ ------------
Assets
Current assets $ 50,760,940 $ 59,551,413
Property, plant and equipment, net 38,936,403 41,394,132
Intangible assets, net 938,576 1,095,456
Other assets 973,139 932,514
------------ ------------
Total assets $ 91,609,058 $102,973,515
============ ============
Liabilities and Stockholders' Equity
Current liabilities $ 21,349,605 $ 24,316,266
Long-term debt 13,075,971 25,859,972
Deferred income taxes 1,865,483 1,984,466
Other long-term liabilities 396,834 --
------------ ------------
Total liabilities 36,687,893 52,160,704
Total stockholders' equity 54,921,165 50,812,811
------------ ------------
Total liabilities and
stockholders' equity $ 91,609,058 $102,973,515
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