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GOSHEN, Ind.--(BUSINESS WIRE)--
Supreme Industries, Inc. (NYSE MKT: STS), a leading manufacturer
of specialized commercial vehicles including truck bodies, trolleys and
specialty vehicles, today announced financial results for its fourth
quarter and full year ended December 27, 2014.
2014 Fourth-Quarter Results
Consolidated net sales from continuing operations in the fourth quarter
of 2014 declined to $53.3 million, compared with $64.9 million in the
same quarter last year. In the prior year quarter, net sales reflected
an incremental fleet order of approximately $8.0 million that was placed
unseasonably late during the 2013 calendar year. That account returned
to a more normalized spring delivery pattern in 2014, resulting in the
majority of the year-over-year decline of fourth quarter sales.
Net income was $1.5 million in the quarter, compared with $1.7 million
in 2013's fourth quarter. 2013 results included a $0.5 million net loss
related to discontinued operations. Net income from continuing
operations was $1.5 million or $0.09 per diluted share in the final
quarter of 2014, versus $2.1 million, or $0.13 per diluted share, in
last year's comparable quarter.
"The work truck market reported mixed results versus 2013 for the
quarter; however, our new orders gained momentum," said Mark Weber,
President and Chief Executive Officer. "Our customers are generally
optimistic about future market conditions and are anticipating growth in
2015, which is reflected in our improved order backlog."
Due to the lower net sales, gross profit from continuing operations
declined to $10.0 million in the quarter, versus $11.2 million last
year. However, gross margin improved to 18.8% of sales, compared with
17.2% of sales in the fourth quarter of 2013. The current quarter margin
expansion resulted from overhead cost controls and the lower proportion
of fleet shipments compared with the prior year.
Operating income from continuing operations decreased to $2.4 million
from $3.2 million primarily due to the lower sales level. Interest
expense increased $0.2 million during the quarter as a result of more
chassis on hand to bridge possible OEM delivery delays.
2014 Twelve-Month Results
Consolidated net sales from continuing operations in the twelve-month
period were $236.3 million, compared with $246.8 million last year. The
revenue decline in 2014 was due to softer retail demand, as well as a
chassis shortage and severe weather that hampered first-quarter sales
and profitability. As a result, full-year gross margin contracted to
18.6% of net sales, compared with 19.6% of net sales in the prior year.
Operating income in 2014 was $13.0 million, compared with $17.6 million
in 2013, and income from continuing operations was $8.5 million for the
twelve-months of 2014, down from $11.2 million last year.
The Company's discontinued shuttle bus operations generated a $1.6
million after-tax net loss in 2014 and an after-tax net loss of $4.8
million in 2013. Including the negative impact from discontinued
operations on both years' results, reported net income improved to $6.9
million, or $0.41 per diluted share in 2014, up from reported net income
of $6.4 million, or $0.39 per diluted share, last year.
"During 2014, we actively addressed underperforming business units,
invested capital to enhance growth and efficiency, and elevated customer
focus across the organization. These initiatives and our improved
financial condition have put us in the position to reinstate a quarterly
cash dividend and return capital to shareholders," Weber said. "The
growth in our order backlog also provides evidence that our sales
initiatives are beginning to gain traction. These internal efforts,
combined with positive market momentum, give us optimism as we look
ahead to the coming year."
"Order backlog at the end of 2014 was up approximately 13% to $79.9
million, compared with $70.8 million at the end of the prior year and
the backlog has continued to grow since the beginning of 2015, due to
the receipt of additional fleet orders," he concluded.
Additional financial highlights:
Cash and cash equivalents increased to $11.6 million, up from $3.9
million at December 28, 2013.
Controllable working capital improved to $31.6 million at December 27,
2014 from $38.2 million at December 28, 2013.
Stockholders' equity increased to $81.0 million at December 27, 2014,
compared with $74.1 million at December 28, 2013.
Book value, on a per share basis, grew to $4.94 at year-end versus
$4.59 at the end of 2013.
Conference Call Information
A conference call will be held tomorrow, February 20, 2015, at 9:00 a.m.
ET to review the fourth quarter and twelve-month results. To participate
in the live call, dial 1-888-349-0089 (International: 412-902-4296) 10
minutes before the call begins, or 8:50 a.m. ET. The conference ID is
10060448. The call also will be streamed live and can be accessed at http://www.SupremeInd.com.
Those unable to participate in the live conference call may access a
replay, which will be available on Supreme's website for approximately
30 days.
About Supreme Industries
Supreme Industries, Inc. (NYSE MKT: STS), is a nationwide
manufacturer of truck bodies, trolleys and specialty vehicles produced
to the specifications of its customers. The Company's transportation
equipment products are used by a wide variety of industrial, commercial
and law enforcement customers.
Other than historical facts contained herein, the matters set forth
in this news release are "forward-looking statements" within the meaning
of Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act, as amended, and reflect the view of
management with respect to future events. When used in this report,
words such as "believe," "expect," "anticipate," "estimate," "intend,"
"plan" and similar expressions, as they relate to Supreme or its plans
or operations, identify forward-looking statements. Such forward-looking
statements are based on assumptions made by, and information currently
available to, management. 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 it can give no
assurance that such expectations will prove to be correct. Important
factors that could cause actual results to differ materially from such
expectations include, without limitation, an economic slowdown in the
specialized vehicle industry, limitations on the availability of chassis
on which Supreme's product is dependent, availability of raw materials,
raw material cost increases and interest rate increases. Furthermore,
Supreme can provide no assurance that any raw material cost increases
can be passed on to its customers through implementation of price
increases for Supreme's products. The forward-looking statements
contained herein reflect the current view of management with respect to
future events and are subject to those factors and other risks,
uncertainties and assumptions relating to the operations, results of
operations, cash flows and financial position of Supreme. Supreme
assumes no obligation to update the forward-looking statements or to
update the reasons actual results could differ from those contemplated
by such forward-looking statements.
—FINANCIAL RESULTS FOLLOW—
Supreme Industries, Inc. and Subsidiaries
Condensed Consolidated Statements of Income
Three Months Ended
Twelve Months Ended
Dec. 27, 2014
Dec. 28, 2013
Dec. 27, 2014
Dec. 28, 2013
Net Sales
$
53,339,596
$
64,869,470
$
236,308,920
$
246,805,967
Cost of sales
43,308,212
53,689,628
192,462,081
198,385,642
Gross profit
10,031,384
11,179,842
43,846,839
48,420,325
Selling, general and administrative expenses
7,739,249
8,033,691
31,344,204
31,698,954
Other income
(95,542
)
(92,475
)
(493,885
)
(905,078
)
Operating income
2,387,677
3,238,626
12,996,520
17,626,449
Interest expense
270,482
78,215
525,911
504,828
Income from continuing operations before income taxes
2,117,195
3,160,411
12,470,609
17,121,621
Income tax expense
595,655
1,037,879
4,000,655
5,923,359
Income from continuing operations
1,521,540
2,122,532
8,469,954
11,198,262
Discontinued operations:
Gain on sale of discontinued operations, net of tax
-
-
87,036
-
Operating loss from discontinued operations, net of tax
-
(457,030
)
(1,654,459
)
(4,772,386
)
Loss from discontinued operations, net of tax
-
(457,030
)
(1,567,423
)
(4,772,386
)
Net income
$
1,521,540
$
1,665,502
$
6,902,531
$
6,425,876
Basic income (loss) per share:
Income from continuing operations
$
0.09
$
0.13
$
0.52
$
0.69
Loss from discontinued operations
-
(0.03
)
(0.10
)
(0.29
)
Net income
$
0.09
$
0.10
$
0.42
$
0.40
Diluted income (loss) per share:
Income from continuing operations
$
0.09
$
0.13
$
0.50
$
0.68
Loss from discontinued operations
-
(0.03
)
(0.09
)
(0.29
)
Net income
$
0.09
$
0.10
$
0.41
$
0.39
Shares used in the computation of income (loss) per share:
Basic
16,443,139
16,180,874
16,350,561
16,113,136
Diluted
16,778,870
16,581,208
16,744,066
16,487,804
Supreme Industries, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
Dec. 27, 2014
Dec. 28, 2013
Assets
Current assets
$
63,101,485
$
65,923,357
Property, plant and equipment, net
46,925,534
46,387,839
Other assets
914,735
1,219,655
Total assets
$
110,941,754
$
113,530,851
Liabilities
Current liabilities
$
18,652,523
$
28,343,456
Long-term liabilities
11,256,826
11,107,228
Total liabilities
29,909,349
39,450,684
Total stockholders' equity
81,032,405
74,080,167
Total liabilities and stockholders' equity
$
110,941,754
$
113,530,851
Supreme Industries, Inc. Investor and Media Contact: Matthew
J. Dennis, CFA, Investor Relations, 574-228-4130
