Supreme Industries Reports Revenues and Earnings for Second-Quarter and First-Half 2003
GOSHEN, Ind.--July 29, 2003--Supreme Industries, Inc. (AMEX:STS), a leading manufacturer of specialized vehicles including truck bodies and shuttle buses, today announced revenues and earnings for the 2003 second quarter and first half ended June 28, 2003.Second-quarter 2003 revenues of $60,749,000 were up two percent from $59,537,000 for 2002's comparable period. Gross profit margin declined to 13.3 percent during the quarter. Last year's second-quarter gross margin of 16.8 percent was aided by a favorable physical inventory adjustment. Other factors restraining gross margin during this year's second quarter included competitive pricing pressures, higher material and insurance costs, and increased delivery expenses related to higher fuel prices during the period. The five percent reduction in selling, general and administrative expense was attributable to tighter cost controls and lower depreciation expense. Net income of $1,237,238, or $0.11 per diluted share, was down from $2,163,500, or $0.19 per diluted share, for the corresponding period of 2002, reflecting the aforementioned factors.
First-half 2003 revenues were up one percent versus the year-ago period, reaching $110,573,000 from 2002's $109,381,000. Net income was $1,655,659, or $0.15 per diluted share, down from $2,965,306, or $0.27 per diluted share for last year's first half.
Since the beginning of the year, the Company had further improvement in its balance sheet with stockholders' equity increasing three percent to $60,600,000.
Omer Kropf, President of Supreme Corporation, Supreme Industries' operating subsidiary, commented: "Overall demand remains slightly above depressed year-earlier levels but below our expectations. Competition in our markets continues to restrain profitability and shows little sign of abating in the near term. Despite a difficult economic, manufacturing and competitive environment, we are meeting those challenges through product line updates, tighter quality control, improved lead times and more aggressive marketing.
"As we enter second-half 2003, industry volume, particularly in the bus segment, appears to be improving. However, the pace of recovery continues to be somewhat listless, and competitive pressures have intensified in many of our markets. Programs to meet the many competitive challenges are well underway, and our ongoing cost reductions should aid margin improvement when the expected volume recovery accelerates. Lastly, during the first half of the year, we repurchased 45,366 shares of our common stock," 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 report contains forward-looking statements, other than historical facts, that reflect the views of Company management with respect to future events. When used in this report, words such as "believe," "expect," "anticipate," "estimate," "intend" and similar expressions, as they relate to the Company or its plans or operations, identify forward-looking statements. Such forward-looking statements are based on assumptions made by, and information currently available to, the Company's management. Although management believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations are reasonable, and it 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 forward-looking statements contained herein reflect the current views of Company management with respect to future events and are subject to those factors and other risks, uncertainties and assumptions relating to the operations, results of operations, cash flows and financial position of the Company. The Company assumes no obligation to update the forward-looking statements or to update the reasons 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 28, June 30, June 28, June 30,
2003 2002 2003 2002
----------- ----------- ------------ -------------
Revenues $60,749,259 $59,537,510 $110,573,469 $109,381,193
Costs and expenses:
Cost of sales 52,693,036 49,543,691 96,589,968 92,513,665
Selling, general
and administrative 5,839,919 6,159,079 10,855,990 11,475,631
Interest 211,066 273,240 441,852 547,591
----------- ----------- ------------ -------------
58,744,021 55,976,010 107,887,810 104,536,887
----------- ----------- ------------ -------------
Income before
income taxes 2,005,238 3,561,500 2,685,659 4,844,306
Income taxes 768,000 1,398,000 1,030,000 1,879,000
----------- ----------- ------------ -------------
Net income $1,237,238 $2,163,500 $1,655,659 $2,965,306
=========== =========== ============ =============
Earnings per share:
Basic $0.11 $0.20 $0.15 $0.27
Diluted $0.11 $0.19 $0.15 $0.27
Shares used in the
computation of
earnings per share:
Basic 10,817,940 10,811,533 10,824,637 10,804,995
Diluted 10,951,312 11,105,010 10,936,747 11,029,284
----------------------------------------------------------------------
Supreme Industries, Inc., and Subsidiaries
Consolidated Balance Sheets
June 28, December 28,
2003 2002
------------ ------------
Assets
Current assets $55,739,063 $47,815,309
Property, plant and equipment, net 34,962,272 35,602,888
Intangible assets, net 842,393 868,164
Other assets 3,283,996 3,061,733
------------ ------------
Total assets $94,827,724 $87,348,094
============ ============
Liabilities and Stockholders' Equity
Current liabilities $23,962,426 $18,914,671
Long-term debt 8,280,988 7,366,858
Deferred income taxes 1,887,564 1,844,894
Other long-term liabilities 97,058 209,348
------------ ------------
Total liabilities 34,228,036 28,335,771
Total stockholders' equity 60,599,688 59,012,323
------------ ------------
Total liabilities and stockholders' equity $94,827,724 $87,348,094
============ ============