Spartan Motors Inc. today (Oct. 28) reported improved sales and solid profitability for its 2010 third quarter.
The results also included the sale of the assets of its Road Rescue ambulance business for approximately $8 million. Spartan’s third quarter performance was highlighted by increased sales of specialty vehicles and motorhome products, and substantially reduced operating expense as a percentage of sales compared to the same quarter of 2009.
Third quarter highlights:
- Net sales of $120.6 million (up 39.7% from Q3 2009, which did not include Utilimaster).
- Gross margin of 16.4% of sales (down from 18.8% in Q3 2009).
- Operating expenses of 11.9% of sales (down from 15.8% in Q3 2009).
- Net earnings from continuing operations of $3.5 million (up 112.1% from Q3 2009).
- Cash balance of $16.7 million (up $6.5 million from Q2 2010).
- Debt of $15.3 million (down $5 million from Q2 2010).
- Consolidated backlog of $172.6 million (down from $205.7 million in Q2 2010).
- Motorhome sales show continued stability with sales in the quarter up 94% from the same quarter of 2009, and sequentially up 3% from the second quarter of 2010.
“We are pleased with our accomplishments in the quarter. Our focus on creating compelling products and driving growth in profitable markets continues to serve us well. Our profitable results were complemented by the sale of Road Rescue, which was completed well ahead of expectations. The improvements made to our cost structure earlier in the year – while very difficult – contributed greatly to our performance in the quarter,” said John Sztykiel, president and CEO of Spartan Motors.
“Innovation is a core element of our culture, which continues to prove vital to our success at creating products for transforming markets and driving profitable market share. Our progress is evident as we recently showcased our 2010 emergency-response cab and chassis at the Fire-Rescue International Conference (FRI) with a 2010 EPA-certified Cummins diesel engine. In addition, the next-generation commercial vehicle and the N-Series gasoline chassis, generated through our new partnership with Isuzu, strategically position Spartan for significant long-term growth as we look to the delivery and service market.”