Spartan Motors Inc. today (Feb. 15) announced improved net sales and profitability for its 2010 fourth quarter.
Increased sales volumes, from service and delivery vehicles, aftermarket parts and assemblies (APA) and specialty vehicles, were driven by management’s focus on top-line growth and market diversification, according to a news release from the Charlotte, Mich.-based chassis builder.
In addition, aggressive management of costs and working capital allowed operating income from continuing operations to exceed $4 million, and generate cash from continuing operations of $9.6 million. Backlog declined to $134.5 million reflecting the challenging market conditions the Company will face in the first half of 2011.
In the RV sector, annual motorhome chassis sales were $89 million in 2010, an improvement of 150% year-over-year from 2009. Although still below historical levels, motorhome chassis sales volume improvement reflects the gradual industry recovery.
Fourth quarter 2010 highlights, compared to the same quarter of 2009:
- Net sales of $126.9 million (up 31.4%).
- Gross margin of 15.3% (down from 15.5%).
- Operating expenses of 11.7% of sales (down from 14.7%).
- Net earnings from continuing operations of $3.7 million (up from $100,000).
- Consolidated backlog of $134.5 million (down from $234 million).
- Cash from continuing operations of $9.6 million (up from $5 million).
Full year highlights:
- Net sales of $480.7 million (up 17.4%).
- Gross margin of 15.1% (down from 19.8%).
- Operating expenses of 12.9% of sales (down from 14.7%).
- Net earnings from continuing operations of $7.2 million (down from $13.2 million).
- Cash from continuing operations of $38.4 million (up from $34.3 million).
- Debt of $5.2 million (down $41.1 million or 89% since year-end 2009).
- Cash balance of $14.5 million (down $4.0 million since year-end 2009).
“In 2010 we continued to implement the strategic initiatives that we started in the second half of 2009,” said John Sztykiel, president and CEO of Spartan Motors. “Although we have already begun to see positive financial and operating results from those actions, we are even more optimistic about the opportunities and longer-term growth potential that we have. We did expect some margin compression in this year’s results because of the addition of the service and delivery vehicle business. However, this addition effectively diversified our revenue stream by 23%, further reducing Spartan’s industry-specific market exposure. Our 2010 four-part plan was simple, focused and successful: driving growth in profitable markets, creating compelling products, effectively managing costs and strengthening our balance sheet. We remain committed to this strategy as we move forward in 2011.”