Spartan Reporting 11.7% Growth in 3Q Revenue
Spartan Motors Inc., parent to industry supplier Spartan Chassis Inc., reported an 11.7% increase in revenue during its third quarter, ended Sept. 30.
Sales during the period totaled $126.1 million compared to $112.9 million a year ago. After an income tax provision of $1.3 million to adjust income tax expense for 2013 to a projected 20% rate for the year, Spartan reported net income of $0.6 million, or 2 cents per diluted share, versus a net loss of $0.3 million, or 1 cent per diluted share, in the third quarter of 2012.
Third-quarter operating income totaled $1.8 million compared with an operating loss of $0.3 million the year prior. Spartan reported a cash balance of $20 million as of September 30, up from $15.6 million at June 30, 2013.
Spartan CEO John Sztykiel noted, “The third quarter was another quarter in which we executed the plan, the “I” in DRIVE (Integrated Operational Improvement), and delivered improved operating results. All three of our segments, Emergency Response (ER), Delivery and Service (DSV), and Specialty Vehicles (SV), posted operating income, a reflection that DRIVE is delivering positive results across Spartan Motors. Our backlog grew by 37.8% compared to Q3 2012, and we improved our cash position by $4.4 million from June 30, 2013, both positive indicators as we close out 2013.
“DRIVE is working, and we are moving forward. This progress is expected to lead to better operating performance in the fourth quarter of 2013 and into 2014. With our major operational initiatives showing positive results and our greatest challenges behind us, we are shifting more attention to generating diversified growth.”
For the first nine months, Spartan reported revenue of $343.1 million versus $346.1 million in the same period of 2012. The decline in revenue from the prior year was due to the disruption caused by Utilimaster’s move of walk-in van production to Bristol, Ind., in the first quarter of 2013 and the completion of a large field service solutions program in mid-2012. Spartan booked an operating loss of $3.9 million for 2013 year-to-date, compared to operating income of $0.2 million for the first three quarters of 2012.
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