Supreme Industries, Inc. Announces Extraordinary Charge
8 December 1998
Supreme Industries, Inc. Announces Extraordinary Charge
GOSHEN, Ind.--Dec. 7, 1998--Supreme Industries, Inc. (AMEX:STS) announced today that it plans to close its Honduran hardwood flooring manufacturing facility primarily as a result of significant damage to the Honduran infrastructure caused by Hurricane Mitch. This damage to the Honduran roads and bridges will restrict the Company's ability to purchase raw materials cost effectively for the processing plant and export the finished products to the United States. The time to rebuild the infrastructure adequately for the Company's purposes is currently not determinable. The Company anticipates that the closing of its Honduran operations will result in Supreme recognizing an estimated extraordinary after-tax charge of approximately $1.4 million, or $0.13 per diluted share, in the Company's fourth-quarter and year-end financial statements. The closing of the Honduran facility will not have an effect on the Company's main business operations as other hardwood flooring is plentiful and available at favorable prices.The Company continues to anticipate achieving record revenues and earnings for the fourth quarter and full year (before the extraordinary charge) and currently enjoys a $50.1 million backlog.
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 and trolleys as well as a line of armored trucks. The Company's transportation equipment products are used by a wide-variety of industrial and commercial customers.