Supreme Industries' 2002 Second-Quarter Earnings Per Share Increase 27%
GOSHEN, Ind.--Aug. 1, 2002--Supreme Industries, Inc., (AMEX:STS) a leading manufacturer of specialized vehicles including truck bodies and shuttle buses, today announced earnings for its second quarter, which ended June 30, 2002.Second-quarter net income for 2002 increased 35 percent to $2.2 million, or $0.19 per diluted share, from $1.6 million, or $0.15 per share, for the corresponding period last year. Revenues for the quarter declined 2.2 percent to $59.5 million from $60.9 million in last year's second quarter. The second-quarter earnings per share included a net $0.02 per share favorable adjustment ("Adjustment") principally attributable to the results of a physical inventory at the Company's main plant facility in Indiana.
Net income for the first six months of 2002 advanced 6.9 percent to $3.0 million, or $0.27 per diluted share, from $2.8 million, or $0.26 per share, for last year's six-month period. Revenues for the first half of 2002 declined 7.4 percent to $109.4 million from last year's $118.2 million.
"We are pleased to report a strong improvement in earnings during a very challenging market environment," said Omer Kropf, President of Supreme Corporation, Supreme Industries' operating subsidiary. "Cost control measures, the favorable Adjustment, and a better product mix contributed to the increase in second-quarter gross profit margin. We continue to generate strong cash flow, which has allowed us to reduce debt by $2.5 million, or 14 percent, during the first six-months. This has permitted a significant reduction in interest expense. Based on second quarter orders, our truck body business is showing signs of modest improvement. However, the bus operations remain soft due to the decline nationally in travel related industries. Total backlog at June 30, 2002 was $48.3 million compared to $51.1 million at June 30, 2001."
The Company's balance sheet improved substantially, with long-term debt of $9.1 million at June 30, 2002 compared with $13.1 million at year-end 2001. Stockholders' equity increased to $58.2 million and book value per share was $5.37 at June 30, 2002 compared with $55.1 million and $5.10 at December 31, 2001.
"In order to improve our plant and asset utilization rates, we announced the closing of our North Carolina manufacturing facility," added Mr. Kropf. "We are intent on streamlining our cost structure and improving operational efficiencies in the current economic climate. We will move the manufacturing of those affected products to other facilities that can economically serve customers in that geographic market."
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 Six Months Ended
June 30, June 30,
2002 2001 2002 2001
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Revenues $ 59,537,510 $ 60,890,049 $109,381,193 $118,157,468
Costs and expenses:
Cost of sales 49,543,691 51,495,572 92,513,665 100,666,302
Selling, general
and administrative 6,159,079 5,988,587 11,475,631 11,450,138
Interest 273,240 628,199 547,591 1,371,125
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55,976,010 58,112,358 104,536,887 113,487,565
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Income before
income taxes 3,561,500 2,777,691 4,844,306 4,669,903
Income taxes 1,398,000 1,177,000 1,879,000 1,895,000
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Net income $ 2,163,500 $ 1,600,691 $ 2,965,306 $ 2,774,903
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Earnings Per Share
Basic $ 0.20 $ 0.15 $ 0.27 $ 0.26
Diluted $ 0.19 $ 0.15 $ 0.27 $ 0.26
Shares used in the
computation of
earnings per share:
Basic 10,811,533 10,798,796 10,804,995 10,820,063
Diluted 11,105,010 10,867,778 11,029,284 10,876,689
Supreme Industries, Inc., and Subsidiaries
Consolidated Balance Sheets
June 30, December 31,
2002 2001
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Assets
Current assets $52,329,255 $50,760,940
Property, plant and equipment, net 38,170,992 38,936,403
Intangible assets, net 903,370 938,576
Other assets 957,623 973,139
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Total assets $92,361,240 $91,609,058
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Liabilities and Stockholders' Equity
Current liabilities $23,056,828 $21,349,605
Long-term debt 9,067,991 13,075,971
Other long-term liabilities 296,207 396,834
Deferred income taxes 1,754,406 1,710,718
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Total liabilities 34,175,432 36,533,128
Total stockholders' equity 58,185,808 55,075,930
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Total liabilities and stockholders' equity $92,361,240 $91,609,058
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