Supreme Industries Reports Financial Results For 1999 Second Quarter and First Half
29 July 1999
Supreme Industries Reports Financial Results For 1999 Second Quarter and First Half
GOSHEN, Ind.--July 29, 1999--Supreme Industries, Inc., (AMEX:STS) a leading manufacturer of specialized vehicles, including truck bodies and shuttle buses, today announced financial results for the second quarter and six months, which ended June 30, 1999.Second-quarter revenues rose 8.4 percent to $66.5 million from $61.3 million for the same quarter last year. Net income was $2.8 million, or $0.25 per diluted share, compared with $3.5 million, or $0.29 per diluted share, for last year's second quarter.
For the first six months of 1999, Supreme's revenues increased 5.2 percent to $122.9 million from $116.8 million for the same period of 1998. First-half net income was $5.2 million, or $0.45 per diluted share, compared with $5.9 million, or $0.48 per diluted share, for the corresponding period last year.
Earnings per share have been adjusted for the Company's five percent stock dividends paid on July 19, 1999 and November 20, 1998.
The second quarter experienced a tight labor market, particularly in Indiana, with increased labor costs. "We have initiated various pricing strategies in the third quarter that should improve our gross margins in the fourth quarter and help to mitigate the effects of the second quarter's higher labor costs," said Omer Kropf, President of Supreme Corporation, Supreme Industries' operating subsidiary. "Additionally, late chassis deliveries and specification changes on some of the larger fleet orders caused approximately $10 million in shipments to be delayed into the third quarter."
"Regarding specific products," Mr. Kropf continued, "our Spartan Service Van continued to gain momentum as bookings were up 77 percent in the first half. Our Iner-City(R) Cutaway and "EZ Access" vans are receiving good early reviews, and we will be starting production of both these new products in the third quarter."
"We are pleased to announce that a new 23,000 sq. ft. manufacturing facility is operational in Griffin, Georgia, adding 10 percent to our production capacity in the Southeast." Mr. Kropf added. "Our continuous-feed fiberglass-reinforced plywood (FRP) facility is operating on a three shift basis and producing paneling at 4.5 feet per minute. All production is being used internally for fleet orders, Iner-City(R) and Spartan(R) product lines. We are scheduled to have excess production capacity of laminated product for sale by the end of the third quarter to a growing list of prospective industrial customers."
"Overall, our business outlook is good," Mr. Kropf said. "Our backlog at the end of June 1999 was approximately $60 million, which is 28 percent higher than it was a year ago. The backlog and our favorable order rate should result in double-digit revenue growth over the next several quarters, enabling Supreme's 1999 earnings to exceed 1998's $0.85 earnings per diluted share before extraordinary losses."
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.
(Table follows)
Supreme Industries, Inc. and Subsidiaries
Consolidated Statements of Income
Three Months Ended Six Months Ended
June 30, June 30,
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1999 1998 1999 1998
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Revenues $66,485,606 $61,322,192 $122,861,648 $116,815,537
Costs and expenses:
Cost of sales 55,654,732 49,605,633 102,489,130 95,726,007
Selling, general
and administrative 5,563,377 5,289,083 10,718,152 10,235,308
Interest 599,618 489,426 938,622 906,439
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61,817,727 55,384,142 114,145,904 106,867,754
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Income before
income taxes 4,667,879 5,938,050 8,715,744 9,947,783
Income taxes 1,825,000 2,447,000 3,475,000 4,069,000
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Net income $2,842,879 $3,491,050 $5,240,744 $5,878,783
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(1) Earnings per share:
Basic $.26 $.29 $.45 $.49
Diluted $.25 $.29 $.45 $.48
(1) Shares used in the
computation of
earnings per share:
Basic 11,061,863 12,062,554 11,529,466 12,035,913
Diluted 11,153,076 12,154,764 11,622,465 12,140,286
(1) All per share amounts have been restated for all common stock
dividends paid.
Supreme Industries, Inc. and Subsidiaries
Consolidated Balance Sheets
June 30, December 31,
1999 1998
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Assets
Current assets $74,841,210 $60,234,709
Property, plant and equipment, net 33,133,007 31,342,322
Intangible assets, net 1,400,421 1,502,076
Other assets 936,367 991,947
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Total assets $110,311,005 $94,071,054
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Liabilities and Stockholders' Equity:
Current liabilities $27,198,756 $20,948,765
Long-term debt 40,035,702 18,303,207
Deferred income taxes 1,333,007 1,333,007
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Total liabilities 68,567,465 40,584,979
Total stockholders' equity 41,743,540 53,486,075
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Total liabilities and stockholders' equity $110,311,005 $94,071,054
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