Supreme Industries Reports Record Fourth-Quarter and Full-Year 1998
5 February 1999
Supreme Industries Reports Record Performance for Fourth-Quarter and Full-Year 1998
GOSHEN, Ind.--Feb. 4, 1999--Supreme Industries, Inc. (AMEX:STS), a leading manufacturer of specialized truck bodies and shuttle buses, today announced results for the fourth quarter and year ended December 31, 1998. Revenues and earnings from operations for both the fourth quarter and full year were the highest in the Company's history.For the year ended December 31, 1998, revenues increased 13.0 percent to $223.7 million from $198.0 million for the year-ago period. Income before extraordinary item for the year increased 20.3 percent to $10.3 million, or $.89 per diluted share, compared with $8.6 million, or $.74 per diluted share, for 1997. Net income per share after an extraordinary charge of $1.3 million was $9.0 million, or $.78 per share, still 5.0 percent above the previous record high set in 1997. As previously announced, the extraordinary charge related to the Company terminating its Honduran hardwood flooring plant operations as a result of the effects of Hurricane Mitch.
Revenues for the 1998 fourth quarter compared with the same period last year advanced 7.1 percent to $55.5 million from $51.8 million. Income before the $.11 extraordinary charge discussed above rose 46.9 percent to $2.7 million, or $.23 per diluted share, from $1.8 million, or $.16 per diluted share, for the corresponding period in 1997.
"Strong order intake across the breadth of the Company's product lines combined with improving operating efficiencies at our regional manufacturing facilities contributed to our second straight year of record performance," said Omer Kropf, president of Supreme Corporation, Supreme Industries' operating subsidiary. "Sales were driven by favorable economic conditions and a surge in new orders from the truck-leasing industry and specialty niche markets."
Mr. Kropf continued, "We are very pleased with this year's record performance and believe we are well positioned to build on our established momentum. During the year, we completed expansion projects at three of our six plants, which boosted production capacity by about 20 percent. Our Ligonier, Indiana, facility recently added a second shift to more effectively utilize production capacity at our continuous-feed fiberglass-reinforced panel operations. A new mounting station in San Francisco established in the second quarter served to expand our national presence in a market with significant growth opportunity.
"With startup expenses behind us, these efficiency-enhancing capacity expansions are expected to yield higher margins and improvements in operating cash flow as we go forward. We feel confident that our ongoing initiatives to increase sales and improve profitability will continue to support and accelerate our long-term growth," Mr. Kropf concluded.
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.
This press release contains forward-looking statements, other than historical facts, which reflect the view of the Company's management with respect to future events. Although management believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that the expectations reflected in such forward-looking statements are reasonable, and 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 Company assumes no obligation to update the forward-looking statements or to update the reason actual results could differ from those contemplated by such forward-looking statements.
(Financial tables follow)
Supreme Industries, Inc., and Subsidiaries
Consolidated Statements of Income
Three Months Ended Twelve Months Ended
December 31, December 31,
1998 1997 1998 1997
----------- ----------- ------------ ------------
Revenues $55,506,346 $51,827,699 $223,727,921 $197,968,159
Costs and expenses:
Cost of sales 45,736,718 43,633,424 184,628,390 165,197,662
Selling, general
and administrative 5,317,794 4,900,054 20,460,625 17,228,565
Interest 343,673 347,294 1,647,878 1,409,713
----------- ----------- ----------- -----------
51,398,185 48,880,772 206,736,893 183,835,940
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Income before
income taxes and
extraordinary loss 4,108,161 2,946,927 16,991,028 14,132,219
Income taxes 1,409,000 1,109,000 6,700,000 5,577,000
----------- ----------- ----------- -----------
Income before
extraordinary
loss $ 2,699,161 $ 1,837,927 $10,291,028 $ 8,555,219
Extraordinary loss,
net of income tax
benefit of $860,000 1,280,115 0 1,280,115 0
----------- ----------- ----------- -----------
Net income $ 1,419,046 $ 1,837,927 $ 9,010,913 $ 8,555,219
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(a)Earnings Per Share
-- Basic:
Earnings before
extraordinary loss $.23 $.16 $.90 $.75
Extraordinary loss .11 .00 .11 .00
----------- ----------- ----------- -----------
Net income $.12 $.16 $.79 $.75
(a)Earnings Per Share
-- Diluted:
Earnings before
extraordinary loss $.23 $.16 $.89 $.74
Extraordinary loss .11 .00 .11 .00
----------- ----------- ----------- -----------
Net income $.12 $.16 $.78 $.74
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(a)Shares used in
the computation
of earnings per share:
Basic 11,485,135 11,430,904 11,455,739 11,421,251
Diluted 11,542,626 11,532,702 11,577,872 11,516,574
(a)Share data and earnings per share for the prior periods have
been restated for two (2) 5% stock dividends paid in 1998.
Supreme Industries, Inc., and Subsidiaries
Consolidated Balance Sheets
December 31, December 31,
1998 1997
Assets
Current assets $60,275,509 $53,528,995
Property, plant and equipment, net 31,342,322 29,560,441
Intangible assets, net 1,502,076 1,705,385
Other assets 991,947 1,079,491
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Total assets $94,111,854 $85,874,312
----------- -----------
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Liabilities and Stockholders' Equity
Current liabilities $20,789,486 $23,165,040
Long-term debt 18,303,207 17,359,703
Deferred income taxes 1,333,007 898,825
----------- -----------
Total liabilities 40,425,700 41,423,568
Total stockholders' equity 53,686,154 44,450,744
----------- -----------
Total liabilities and stockholders'
equity $94,111,854 $85,874,312
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