Supreme Industries Reports Revenues and Earnings for Third Quarter and First Nine Months of 2003
GOSHEN, Ind.--Nov. 4, 2003--Supreme Industries, Inc. (AMEX:STS), a leading manufacturer of specialized vehicles including truck bodies and shuttle buses, today announced financial results for the 2003 third quarter and nine month period ended September 27, 2003.Gradually improving economic conditions in the commercial truck and transportation industries resulted in higher revenues in the third quarter of 2003. The Company recorded revenues of $58.1 million for the quarter ended September 27, 2003, compared to $51.0 million for the same period last year. This brings the nine months revenues to $168.6 million, compared to $160.4 million for the same period in 2002.
Improved revenue and a favorable inventory adjustment contributed to the gross profit margin which increased to 14.9% from 12.3% for the same quarter a year ago.
Net income for 2003's third quarter was $1.8 million or $0.15 per share compared to $0.4 million or $0.04 per share in 2002's third quarter. The Company's 2003 nine months net income was $3.5 million or $0.29 per share, compared to $3.4 million or $0.28 per share for the same period in 2002.
The Company's balance sheet at the end of third quarter, compared with the prior year end, continued to strengthen as stockholders' equity improved 5.3% to $62.2 million. In addition, working capital increased to $34.7 million with the principal contributing factors being an increase in accounts receivable associated with higher revenues, and an increase in inventories principally relating to the purchase of chassis required to fill bus orders. The Company continues to aggressively manage its working capital assets.
Because of the improving outlook and the Company's strong balance sheet, the Board of Directors approved a 10% stock dividend and a $0.025 cash dividend on the post dividend shares both of which were paid in October 2003. The cash dividend represents the first of what is intended to become a continuing series of quarterly cash dividends, business conditions permitting.
Omer Kropf, President of Supreme Corporation, Supreme Industries' operating subsidiary stated, "Our business trends are beginning to show signs of improvement. Based on incoming order rates and scheduled shipments, financial results should be higher in the fourth quarter compared with the same period last year. If business trends remain firm, the new year should be off to a good start."
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 Nine Months Ended
------------------------- ---------------------------
Sept. 27, Sept. 28, Sept. 27, Sept. 28,
2003 2002 2003 2002
------------ ------------ ------------- -------------
Revenues $58,061,838 $50,977,060 $168,635,307 $160,358,253
Costs and
expenses:
Cost of sales 49,404,552 44,697,538 145,994,520 137,211,203
Selling,
general and
administrative 5,557,003 5,384,100 16,412,993 16,859,731
Interest 164,683 200,745 606,535 748,336
------------ ------------ ------------- -------------
55,126,238 50,282,383 163,014,048 154,819,270
------------ ------------ ------------- -------------
Income before
income taxes 2,935,600 694,677 5,621,259 5,538,983
Income taxes 1,127,000 270,000 2,157,000 2,149,000
------------ ------------ ------------- -------------
Net income $1,808,600 $424,677 $3,464,259 $3,389,983
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Earnings
per share:
Basic $0.15 $0.04 $0.29 $0.28
Diluted $0.15 $0.04 $0.29 $0.28
Shares used in
the computation
of earnings
per share:
Basic 11,916,728 11,913,575 11,912,717 11,894,958
Diluted 12,130,509 12,092,533 12,078,801 12,115,743
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Supreme Industries, Inc. and Subsidiaries
Consolidated Balance Sheets
Sept. 27, Dec. 28,
2003 2002
------------ ------------
Assets
Current assets $57,424,445 $47,815,309
Property, plant and equipment, net 34,791,471 35,602,888
Intangible assets, net 829,508 868,164
Other assets 3,276,238 3,061,733
------------ ------------
Total assets $96,321,662 $87,348,094
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Liabilities and Stockholders' Equity
Current liabilities $22,766,662 $18,914,671
Long-term debt 9,444,264 7,366,858
Deferred income taxes 1,902,241 1,844,894
Other long-term liabilities 58,436 209,348
------------ ------------
Total liabilities 34,171,603 28,335,771
Total stockholders' equity 62,150,059 59,012,323
------------ ------------
Total liabilities and stockholders' equity $96,321,662 $87,348,094
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