Supreme Industries Reports Results For Fiscal Q2 1998
28 July 1998
Supreme Industries Reports Improved Financial Results For Fiscal 1998 Second Quarter and First Half; FRP Technology Operational
GOSHEN, Ind.--July 28, 1998--Supreme Industries, Inc., (AMEX:STS) a leading manufacturer of specialized truck bodies and shuttle buses, today announced financial results for its second quarter and six months ended June 30, 1998.For the second quarter, the Company's revenues rose 9.0 percent to $61.3 million from $56.3 million for the same quarter last year. Net income was $3.5 million, or $0.32 per share diluted, a 4.8 percent improvement over the $3.3 million, or $0.30 per share diluted, reported for the year-ago quarter.
For the first six months of 1998, revenues increased 16.3 percent to $116.8 million from $100.4 million for the same period of 1997. First-half net income was up 17.2 percent to $5.9 million, or $0.53 per share diluted, from $5.0 million or $0.46 per share diluted, for the corresponding period in 1997.
Omer Kropf, President of Supreme Corporation, Supreme Industries' operating subsidiary, stated, "The Company's revenues and earnings for the second quarter were in line with our plans, and we are seeing continued strong demand for our products. Order intake increased 9.0 percent for the six months, leaving backlog at the end of the quarter at $47.1 million. While we are on track to report solid revenue and earnings growth for 1998, we are carefully monitoring the strike at General Motors, one of our primary chassis suppliers. We utilize multiple chassis sources, but a prolonged General Motors strike could affect our ability to completely satisfy customer demand for Supreme's truck bodies and shuttle buses. Given our current chassis supply, however, we do not anticipate the strike will affect our revenues adversely unless it continues into September."
Commenting on the progress of the Company's fiberglass-reinforced panel (FRP) facility, Mr. Kropf added, "We have now achieved commercial viability. We are producing high-quality FRP at the rate of four feet per minute on a partial shift basis. While we do not expect to be in full production until the fall of 1998, the panels we are producing are being used in our own manufacturing operations. By the spring of 1999, we expect to utilize our excess capacity to market to other manufacturers of transportation equipment.
"Because this FRP production process is totally innovative, we would not be surprised to encounter additional `debugging' as we increase production. We are enthusiastic about the considerable savings anticipated from the prospective efficiencies from our new FRP capabilities and the prospect of profitable revenues from panels sold to third parties beginning in 1999."
Supreme Industries, Inc., is a nationwide manufacturer of specialized truck bodies which 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
June 30,
____________ ____________
1998 1997
____________ ____________
Revenues $ 61,322,192 $ 56,275,903
Costs and expenses:
Cost of sales 49,605,633 45,879,498
Selling, general and administrative 5,289,083 4,469,788
Interest 489,426 413,380
____________ ____________
55,384,142 50,762,666
____________ ____________
Income before income taxes 5,938,050 5,513,237
Income taxes 2,447,000 2,182,000
____________ ____________
Net income $3,491,050 $3,331,237
____________ ____________
____________ ____________
Earnings per share(a):
Basic $.32 $.31
Diluted $.32 $.30
Shares used in the computation of
earnings per share(a):
Basic 10,941,092 10,876,156
Diluted 11,024,729 10,951,528
Six Months Ended
June 30,
____________ ____________
1998 1997
____________ ____________
Revenues $116,815,537 $100,449,206
Costs and expenses:
Cost of sales 95,726,007 82,916,179
Selling, general and administrative 10,235,308 8,419,166
Interest 906,439 763,225
____________ ____________
106,867,754 92,098,570
____________ ____________
Income before income taxes 9,947,783 8,350,636
Income taxes 4,069,000 3,334,000
____________ ____________
Net income $5,878,783 $5,016,636
____________ ____________
____________ ____________
Earnings per share(a):
Basic $.54 $.46
Diluted $.53 $.46
Shares used in the computation of
earnings per share(a):
Basic 10,916,928 10,874,321
Diluted 11,011,597 10,942,833
Supreme Industries, Inc. and Subsidiaries
Consolidated Balance Sheets
June 30, December 31,
1998 1997
____________ ____________
Assets
Current assets $ 57,224,776 $ 53,528,995
Property, plant and equipment, net 31,311,765 29,560,441
Intangible assets, net 1,603,731 1,705,385
Other assets 1,040,027 1,079,491
____________ ____________
Total Assets $ 91,180,299 $ 85,874,312
____________ ____________
____________ ____________
Liabilities and Stockholders' Equity:
Current liabilities $ 18,543,605 $ 23,165,040
Long-term debt 21,294,241 17,359,703
Deferred income taxes 898,825 898,825
____________ ____________
Total liabilities 40,736,671 41,423,568
Total stockholders' equity 50,443,628 44,450,744
____________ ____________
Total liabilities and
stockholders' equity $ 91,180,299 $ 85,874,312
____________ ____________
____________ ____________
(a) Share data and earnings per share for the prior periods have been
restated for the 5% stock dividend declared May 12, 1998.