Delivery Vehicles Boost Spartan 3Q Revenues
Charlotte, Mich.-based Spartan Motors Inc. today (Oct. 26) announced improved operating results for the third quarter of 2011 reflecting significant gains in its delivery and service vehicles segment and the ongoing benefits of actions taken earlier in the year to realign operations.
Revenues were $120.3 million, up 21% from the second quarter, driven by increased sales in the delivery and service segment ahead of the peak holiday season, which offset softness in other markets Spartan serves. Also contributing to the improvement in third quarter revenues were sizable orders for aftermarket parts and assemblies. Improved product mix and initial cost savings due to Spartan’s operational realignment in the previous quarter resulted in net income of $3.2 million, or $0.10 per diluted share.
Third quarter 2011 results:
• Net sales of $120.3 million (flat with Q3 2010 sales of $120.6 million).
• Gross margin of 17% of sales (up from 16.4% in Q3 2010)
• Operating expense of $15.2 million (up $0.8 million compared to Q3 2010)
• Net income of $3.2 million 10 cents per diluted share), down from $3.3 million (11 cents per diluted share) a year ago
• Cash from continuing operations of $26.4 million (for the first nine months of 2011)
• Ending consolidated backlog of $142.8 million (down 20.4 percent from Q2 2011)
• Total debt of $5.2 million
• Cash balance of $30.5 million (up $16.0 million from Q4 2010)
“Our top line performance highlighted the strength of our diversified business lines as solid growth in Utilimaster’s business drove outstanding results in our delivery and service vehicles segment,” said John Sztykiel, president and CEO of Spartan Motors. “The performance at Utilimaster helped to offset softness in the recreational vehicle, emergency response and defense markets and helped reduce our exposure to government-dependent revenue streams.
“Our net income for the third quarter validates the restructuring actions we have taken over the last several months and demonstrates our ability to drive significant leverage to the bottom line. Our relationship with Isuzu grows stronger as we approach full capacity with production of the N-Series Gas cab and chassis. As we begin generating sales of the Reach commercial van that will also help us achieve a more diversified revenue mix.”
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