Supreme Industries Reports First-Quarter 2003 Financial Results
GOSHEN, Ind.--April 24, 2003--Supreme Industries, Inc. (AMEX:STS), a leading manufacturer of specialized vehicles including truck bodies and shuttle buses, today announced revenues and earnings for its first quarter ended March 29, 2003.First-quarter 2003 revenues of $49.8 million were flat compared with the opening three months of the prior year. Gross profit margin was 11.9 percent versus 13.8 percent last year. Contributing to the decline in gross profit were increases in commercial and health insurance costs as well as increased delivery expenses related to higher fuel prices during the period. Selling, general and administrative expense improved as the Company spent less on advertising and promotions in the quarter. Depreciation expense was also significantly less in the quarter as the Company's operating software is now fully depreciated. Net income of $418,421, or $0.04 per diluted share, was down from $801,806, or $0.07 per diluted share, for the corresponding period of 2002, reflecting the aforementioned factors and competitive pricing pressure.
The Company continued to generate positive cash flow in 2003's opening three months, resulting in further improvement to the balance sheet. Long-term debt at March 29, 2003, declined 8.7 percent to $6.7 million compared with $7.4 million at December 28, 2002, and stockholders' equity rose to $59.3 million from $59.0 million at the prior year's close.
Omer Kropf, President of Supreme Corporation, Supreme Industries' operating subsidiary, commented: "The persisting soft demand and intense competition in our markets continued to restrain profitability in the year's first three months. Although year-to-year comparisons are disappointing, we are, however, encouraged by the improvement in results versus the previous quarter on similar revenues. Compared with fourth-quarter 2002, net income and earnings per share, aided by continuing SG&A cost reductions, more than doubled. Despite a challenging economic and manufacturing environment, we not only maintained profitability, but did so while paying down debt and repurchasing 45,366 of our common shares."
He continued, "Furthermore, we have confirmed that, according to the most recent data published by the National Truck Equipment Association (NTEA), Supreme did, in fact, increase market share in each of its two largest product categories--Dry Freight and Parcel Vans--in 2002 compared with the prior year.
"Looking toward the balance of the current year, the industry outlook appears to be improving. However, the pace and robustness of a recovery are difficult to pinpoint. The combination of a low-interest-rate environment, an aging fleet and low inventory levels in the channel bode well for a rebound and should produce increased business for both replacement purposes and to meet underlying market growth. Furthermore, we expect to see continuing contributions from ongoing cost-reduction, branding initiatives, continuing product innovation and new-product introductions," 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.
Supreme Industries, Inc., and Subsidiaries
Consolidated Statements of Income
Three Months Ended
March
2003 2002
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Revenues $49,824,210 $49,843,683
Costs and expenses:
Cost of sales 43,896,932 42,969,974
Selling, general and administrative 5,016,071 5,316,552
Interest 230,786 274,351
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49,143,789 48,560,877
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Income before income taxes 680,421 1,282,806
Income taxes 262,000 481,000
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Net income $418,421 $801,806
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Earnings per share:
Basic $0.04 $0.07
Diluted $0.04 $0.07
Shares used in the computation of earnings per
share:
Basic 10,831,333 10,798,384
Diluted 10,924,465 10,974,904
Supreme Industries, Inc., and Subsidiaries
Consolidated Balance Sheets
March 29, December 28,
2003 2002
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Assets
Current assets $50,146,349 $47,815,309
Property, plant and equipment, net 35,278,822 35,602,888
Intangible assets, net 855,278 868,164
Other assets 3,291,755 3,061,733
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Total assets $89,572,204 $87,348,094
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Liabilities and Stockholders' Equity
Current liabilities $21,547,859 $18,914,671
Long-term debt 6,723,950 7,366,858
Deferred income taxes 1,868,391 1,844,894
Other long-term liabilities 147,513 209,348
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Total liabilities 30,287,713 28,335,771
Total stockholders' equity 59,284,491 59,012,323
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Total liabilities and stockholders' equity $89,572,204 $87,348,094
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