Supreme Industries Reports Fourth-Quarter and Full-Year Earnings for 2002
GOSHEN, Ind.--Feb. 4, 2003--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 ended December 2002.Fourth-quarter revenues for 2002 declined $4.8 million to $49.8 million from $54.6 million for 2001. The sharply lower revenues, competitive pricing pressure and the fixed nature of certain expenses resulted in net income of $0.2 million, or $0.02 per diluted share, down from $1.3 million, or $0.12 per diluted share, for the corresponding period last year.
For 2002, revenues were $210.1 million compared with last year's $226.7 million. Net income for the year declined to $3.6 million, or $0.33 per diluted share, from $4.9 million, or $0.45 per diluted share, last year. The decrease in gross profit margin from 14.0 percent in 2001 to 13.7 percent in 2002 was due largely to competitive pricing pressures and the lower revenue base.
The Company continued to generate strong cash flow in 2002, resulting in further improvement to the balance sheet. Long-term debt at year-end 2002 had declined by 44 percent to $7.4 million from $13.1 million at December 31, 2001, and stockholders' equity rose seven percent to $59.0 million from $55.1 million at the prior year's close. Inventory declined by $2.9 million, or 10.9 percent, as a result of improved inventory management efforts and reduced manufacturing activity.
Omer Kropf, President of Supreme Corporation, Supreme Industries' operating subsidiary, commented: "Although 2002 was a very challenging year, Supreme delivered a solidly profitable performance. In a difficult economic and competitive environment, particularly for the manufacturing sector, we improved operating efficiencies, adjusted expenses to match business conditions and strengthened our balance sheet.
"To the best of our knowledge," he continued, "no major competitor has been able to maintain a level of profitability comparable to Supreme's during these trying conditions. In addition, based on available industry data, we believe our truck body market share increased during 2002.
"Soft demand and intense competition in the Company's primary markets are expected to linger into at least the first quarter of 2003 and possibly longer. However, the inevitable rebound in truck-body demand after several years of low order rates, along with our continuing strong market share position and new-product introductions, point to the possibility of improving business conditions in the intermediate term. Though we can provide no assurance, if this improvement should come to pass by the second quarter, we would expect to see our full-year revenues and earnings exceed those of 2002," Kropf concluded.
A live webcast of Supreme Industries' earnings conference call can be heard today at 4:30 p.m. Eastern at www.supremeind.com.
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 be 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 Twelve Months Ended
December December
2002 2001 2002 2001
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Revenues $ 49,773,894 $ 54,633,574 $210,132,147 $226,653,780
Costs and expenses:
Cost of sales 44,139,334 47,396,881 181,350,538 194,979,382
Selling,
general and
administrative 5,104,589 4,855,822 21,964,321 21,451,857
Interest 247,187 368,733 995,523 2,168,359
------------ ------------ ------------ ------------
49,491,110 52,621,436 204,310,382 218,599,598
------------ ------------ ------------ ------------
Income before
income taxes 282,784 2,012,138 5,821,765 8,054,182
Income taxes 92,381 741,000 2,241,381 3,142,000
------------ ------------ ------------ ------------
Net income $ 190,403 $ 1,271,138 $ 3,580,384 $ 4,912,182
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Earnings Per Share
Basic $ 0.02 $ 0.12 $ 0.33 $ 0.45
Diluted $ 0.02 $ 0.12 $ 0.33 $ 0.45
Shares used in the
computation of
earnings per share:
Basic 10,848,220 10,798,384 10,822,177 10,809,135
Diluted 10,965,220 10,869,330 10,995,981 10,878,980
Supreme Industries, Inc., and Subsidiaries
Consolidated Balance Sheets
December December
2002 2001
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Assets
Current assets $47,815,309 $50,760,940
Property, plant and equipment, net 35,602,888 38,936,403
Intangible assets, net 868,164 938,576
Other assets 3,061,733 973,139
----------- -----------
Total assets $87,348,094 $91,609,058
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Liabilities
Current liabilities $18,914,671 $21,349,605
Long-term debt 7,366,858 13,075,971
Deferred income taxes 1,844,894 1,710,718
Other long-term liabilities 209,348 396,834
----------- -----------
Total liabilities 28,335,771 36,533,128
Total stockholders' equity 59,012,323 55,075,930
----------- -----------
Total liabilities and
stockholders' equity $87,348,094 $91,609,058
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