Supreme Industries Announces Financial Results for 2002 Third Quarter and Nine Months
GOSHEN, Ind.--Oct. 30, 2002--Supreme Industries, Inc. (AMEX:STS), a leading manufacturer of specialized vehicles including truck bodies and shuttle buses, today announced financial results for the third-quarter and nine-months ended September 28, 2002.Revenues for the 2002 third quarter were $51.0 million compared with $53.9 million for the third quarter last year--a decrease of approximately five percent. Net income was $425,000, or $0.04 per diluted share, versus last year's $866,000, or $0.08 per diluted share. The earnings decline was primarily attributable to the lower sales volume and secondarily to increased selling, general and administrative (SG&A) expenses. The SG&A increase related to higher insurance premiums for commercial lines and group health costs as well as expenses associated with the Company's heightened emphasis on its engineering and bills of materials departments.
For the first nine months of 2002, revenues decreased to $160.3 million from $172.0 million for the same period last year. Net income was $3.4 million, or $0.31 per diluted share, versus $3.6 million, or $0.34 per diluted share, for the first nine months of 2001.
"Despite the softer-than-expected economic environment and unusually weak truck body and bus markets, which have restrained revenues, we continue to experience the positive effects of initiatives designed to better position the Company for an expected rebound in the specialized vehicle industry," said Omer Kropf, President of Supreme Corporation, Supreme Industries' operating subsidiary. "Our third-quarter gross margin decreased slightly to 12.3 percent from 12.9 percent for the third quarter of last year. The backlog of orders at September 30, 2002, was $45.9 million compared with $46.9 million at the end of September last year, which we consider to be quite reasonable given existing market conditions.
"Our current focus continues to be directed toward cost containment and asset management," he said, "as reflected by the Company's strengthening balance sheet. At the end of the third quarter, long-term debt declined 38.0 percent to $8.1 million, more than halving interest expenses; and stockholders' equity rose 6.5 percent reaching $58.7 million, increasing book value per share to $5.42.
"Our outlook for the balance of the year and into 2003 is cautious. The soft demand and intense competition in the Company's primary markets are expected to persist into 2003. However, on an intermediate-term basis, we are encouraged by the fact that fleet operators will have considerable pent-up demand arising from their reduced capital expenditures to historically low levels, from which significant increased business should eventually emerge," concluded Kropf.
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 September
----------------------- ------------------------
2002 2001 2002 2001
----------- ----------- ----------- -----------
Revenues $50,977,060 $53,862,738 $160,358,253 $172,020,206
Costs and expenses:
Cost of sales 44,697,538 46,916,199 137,211,203 147,582,501
Selling, general and
administrative 5,384,100 5,145,897 16,859,731 16,596,035
Interest 200,745 428,501 748,336 1,799,626
----------- ----------- ----------- -----------
50,282,383 52,490,597 154,819,270 165,978,162
----------- ----------- ----------- -----------
Income before
income taxes 694,677 1,372,141 5,538,983 6,042,044
Income taxes 270,000 506,000 2,149,000 2,401,000
----------- ----------- ----------- -----------
Net income $424,677 $866,141 $3,389,983 $3,641,044
=========== =========== =========== ===========
Earnings per Share
Basic $0.04 $0.08 $0.31 $0.34
Diluted $0.04 $0.08 $0.31 $0.34
Shares used in
the computation
of earnings per share:
Basic 10,830,523 10,798,384 10,813,598 10,812,758
Diluted 10,996,679 10,875,809 11,018,509 10,881,497
Supreme Industries, Inc., and Subsidiaries
Consolidated Balance Sheets
September 28, December 31,
2002 2001
----------- -----------
Assets (Unaudited) (Audited)
Current assets $50,885,421 $50,760,940
Property, plant and equipment, net 37,353,097 38,936,403
Intangible assets, net 885,767 938,576
Other assets 949,865 973,139
----------- -----------
Total assets $90,074,150 $91,609,058
=========== ===========
Liabilities and Stockholders' Equity
Current liabilities $21,283,902 $21,349,605
Long-term debt 8,101,000 13,075,971
Deferred income taxes 1,769,483 1,710,718
Other long-term liabilities 256,000 396,834
----------- -----------
Total liabilities 31,410,385 36,533,128
Total stockholders' equity 58,663,765 55,075,930
----------- -----------
Total liabilities and
stockholders' equity $90,074,150 $91,609,058
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