Supreme Industries Reports 2002 First-Quarter Earnings
GOSHEN, Ind.--April 25, 2002--Supreme Industries, Inc., (AMEX: STS) a leading manufacturer of specialized vehicles including truck bodies and shuttle buses, today announced earnings for its 2002 first quarter ending March 31, 2002.As discussed in the 2001 annual report, the Company was cautious for the short-term and unfortunately that caution was well founded as first-quarter 2002 revenues declined to $49.8 million from $57.3 million for the corresponding period last year. Net income for the quarter was $0.8 million, or $0.07 per diluted share, down from $1.2 million, or $0.11 per diluted share, for first quarter of 2001.
Mr. Omer Kropf, President of Supreme Corporation, Supreme Industries' operating subsidiary stated, "Our diligent efforts to control costs have allowed us to sustain profitability during this economic downturn, although we did experience a slight decrease in gross margin. The first quarter reflects continued industry-wide weakness; the Company's truck body revenues declined approximately 12 percent from last year's depressed levels, while the bus business was down 19 percent, primarily due to the sharp decline in the travel industry. The Company anticipates near-term market weakness, but pent-up demand should gradually lead to more favorable conditions."
The Company is well capitalized with a strong balance sheet and solid cash flow. At March 31, 2002, long-term debt was $12.1 million, down from $13.1 million at December 31, 2001, and stockholders' equity increased to $55.9 million from $55.1 million at the start of the year. Long-term debt-to-capital was 17.8 percent compared to 19.2 percent at December 31, 2001. Capital expenditures for 2002 are estimated to be approximately equivalent to the Company's $4 million anticipated annual depreciation expense.
"We believe that demand for our products will strengthen with a resumption of economic growth," Mr. Kropf added. "We will continue to reduce debt levels and maintain strict cost controls while pursuing available growth opportunities."
A live webcast of Supreme Industries' earnings conference call can be heard today beginning at 4:30 p.m. eastern daylight time 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 realistic, and can give no assurance that such expectations will prove to be correct. Important factors that could cause actual results to differ materially from expectations include, without limitation, limitations on the availability of chassis on which the Company's production is dependent, availability of raw materials, and sharp 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
March 31,
2002 2001
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Revenues............................ $49,843,683 $57,267,419
Costs and expenses:
Cost of sales..................... 42,969,974 49,170,730
Selling, general and
administrative................... 5,316,552 5,461,552
Interest 274,351 742,926
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48,560,877 55,375,208
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Income before income taxes...... 1,282,806 1,892,211
Income taxes........................ 481,000 718,000
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Net income...................... $ 801,806 $ 1,174,211
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Earnings Per Share
Basic............................ $ 0.07 $ 0.11
Diluted.......................... $ 0.07 $ 0.11
Shares used in the computation of
earnings per share:
Basic............................ 10,798,384 10,841,567
Diluted.......................... 10,974,904 10,865,251
Supreme Industries, Inc., and Subsidiaries
Consolidated Balance Sheets
March 31, December 31,
2002 2001
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Assets
Current assets................... $51,902,193 $50,760,940
Property, plant and equipment,
net............................. 38,582,670 38,936,403
Intangible assets, net........... 920,973 938,576
Other assets..................... 965,381 973,139
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Total assets........................ $92,371,217 $91,609,058
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Liabilities and Stockholders' Equity
Current liabilities.............. $22,286,748 $21,349,605
Long-term debt................... 12,099,181 13,075,971
Deferred income taxes............ 1,761,476 1,710,718
Other long-term liabilities...... 277,351 396,834
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Total liabilities................... 36,424,756 36,533,128
Total stockholders' equity.......... 55,946,461 55,075,930
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Total liabilities and stockholders'
equity............................. $92,371,217 $91,609,058
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