Supreme Industries Reports Record Revenues
4 May 1999
Supreme Industries Reports Record Revenues and Continued Strong Backlog for 1999 First Quarter
GOSHEN, Ind.--May 4, 1999--Supreme Industries, Inc. (AMEX:STS) a leading manufacturer of specialized vehicles, including truck bodies and shuttle buses, today announced revenues which grew 1.6 percent to a first-quarter record of $56.4 million from $55.5 million for 1998's first quarter. Net income was up marginally to $2.4 million, resulting in diluted earnings per share of $0.21 for both the first-quarter of 1999 and 1998."Having started the year with approximately $70 million in backlog, first quarter revenues, though a record, were less than anticipated due to delays in chassis deliveries and specification changes on large fleet orders, both of which restrained deliveries during the quarter," said Omer Kropf, President of Supreme Corporation, Supreme Industries' operating subsidiary.
Gross profit during the quarter was 16.9% unchanged from the quarter ended March 31, 1998. An improvement in material cost as a percentage of revenues was offset by slight increases in labor and overhead. It is anticipated that labor and overhead as a percentage of revenues will improve as the Company delivers its backlog.
"Our continuous-feed FRP operations are improving," Mr. Kropf noted. "Currently, all paneling produced by the facility is dedicated to internal requirements for fleet orders and other uses. We plan to sell the excess capacity as it becomes available in the third quarter. We have identified external markets for our laminated products and have uncovered considerable interest."
"With our balance sheet in excellent condition, we initiated a `Dutch Auction' on April 12, 1999, to purchase up to 2 million of our common shares at a price not greater than $10 or less than $8.75 per share," Mr. Kropf said. "The number and price of shares to be repurchased will be determined when the offer closes on May 10, 1999. We are confident in the Company's future and believe our common stock is an excellent long-term investment for us at this time."
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 press release contains forward-looking statements, other than historical facts, that 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.
(Tables follow)
Supreme Industries, Inc. and Subsidiaries
Consolidated Statements of Income
Three Months Ended
March 31,
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1999 1998
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Revenues $56,376,042 $55,493,345
Costs and expenses:
Cost of sales 46,834,398 46,120,374
Selling, general and administrative 5,154,775 4,946,225
Interest 339,004 417,013
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52,328,177 51,483,612
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Income before income taxes 4,047,865 4,009,733
Income taxes 1,650,000 1,622,000
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Net income $2,397,865 $2,387,733
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(a) Earnings Per Share:
Basic $.21 $.21
Diluted $.21 $.21
(a) Shares used in the computation of
earnings per share:
Basic 11,427,133 11,447,338
Diluted 11,509,333 11,549,796
Supreme Industries, Inc. and Subsidiaries
Consolidated Balance Sheets
March 31, December 31,
1999 1998
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Assets
Current assets $65,564,122 $60,234,709
Property, plant and equipment, net 31,942,096 31,342,322
Intangible assets, net 1,451,248 1,502,076
Other assets 977,434 991,947
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Total assets $99,934,900 $94,071,054
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Liabilities and Stockholders' Equity:
Current liabilities $23,071,336 $20,948,765
Long-term debt 19,649,592 18,303,207
Deferred income taxes 1,333,007 1,333,007
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Total liabilities 44,053,935 40,584,979
Total stockholders' equity 55,880,965 53,486,075
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Total liabilities and stockholders'
equity $99,934,900 $94,071,054
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(a) Share data and earnings per share for the prior periods have been
restated for two (2) 5% stock dividends paid in 1998.