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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Spartan Motors Inc., parent to Spartan Chassis Inc, reported lower net income for its second quarter on an increase in revenue, boosted by improved motorhome sales.
The Charlotte, Mich.-based firm posted sales of $120.9 million, up 5.7% from $114.4 million a year ago. Net income totaled $0.7 million, or 2 cents per diluted share, compared to net income of $2.4 million, or 7 cents per diluted share, in the year prior.
For the six months, Spartan reported sales of $270 million versus $233.2 million the previous year while the company incurred a net loss of $3.6 million compared with net income of $0.3 million.
The Specialty Vehicle (SV) segment drove Spartan’s revenue growth for the second quarter. Demand for the company’s custom chassis grew, particularly for RV and bus applications, which led to a revenue increase of 42.9% year-over-year. Operating income for the SV segment rose sharply to $3.9 million from $0.6 million in the second quarter of 2012. Growth in operating income was due to higher revenue in the most recent quarter, as well as the operational improvement actions taken in this segment over the past year.
John Sztykiel, president and CEO of Spartan Motors Inc., stated, “For Spartan, the second quarter of 2013 was about demonstrating operational improvement in every market segment from the first quarter of 2013 and backlog growth, both sequentially and year-over-year. The Company generated improved results by implementing the D (Diversified Growth) and I (Integrated Operational Improvement) in DRIVE. We expect improved results in the third and fourth quarters of 2013 as we execute our DRIVE strategy and deliver on our shareholder commitments.”
He added, “Eighteen months ago, the motorhome and bus chassis business was a serious drag on Spartan’s earnings. In early 2012, we began executing the DRIVE strategy in a disciplined manner, increasing revenue and operating profit. The success we have demonstrated in the SV segment should enhance confidence that we will successfully address the operational challenges we are working through in the Emergency Response Vehicles and Delivery & Service Vehicles units.”
Gross margin for the second quarter of 2013 was 12.9% of sales versus 16.4% for the second quarter of 2012. Operating expenses were reduced by $0.3 million from the second quarter of 2012, to $14.6 million from $14.9 million.
The company also reported on its relocation of Utilimaster operations from Wakarusa, Ind., to nearby Bristol.
John Forbes, president of Utilimaster, noted, “Production launch activities at Bristol continued throughout the second quarter. Production increased from 93 units in the first quarter of 2013 to 914 units in the second quarter. Daily vehicle output continues to increase and we are meeting delivery commitments to our customers. Our team continues to make progress on materials storage and distribution, improving production processes and increasing daily unit volumes in our operations.”
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Spartan Motors Inc., parent to Spartan Chasis Inc., reported a net loss for its first quarter, ended March 31, on a 19% decline in revenue.
Sales during the three-month period totaled $96.1 million versus $118.8 million in the first quarter of 2012 due to a decline in sales in the Delivery & Service (DSV) segment. Spartan posted a net loss of $4.3 million, 13 cents per diluted share, compared to a net loss of $2 million, or 6 cents per diluted share a year ago, primarily due to the impact of lower revenue, an accrual for a product recall and costs related to the move of walk-in van production to Bristol, Ind.
John Sztykiel, president and CEO of Charlotte, Mich.-based Spartan Motors, stated, “As we indicated in our fourth quarter 2012 press release and conference call, we expected an operating loss in the first quarter of 2013. Most of the loss during the quarter was due to lower DSV revenue and expenses incurred to move and start walk-in van production at Bristol. During the first quarter, we moved the bulk of our Utilimaster business 22 miles to a much more efficient plant and began ramping up production. Our relocation plan was aggressive and complex, so it is not surprising that we encountered some growing pains during the launch phase at Bristol.”
He added, “We believe the first quarter will prove to be the most difficult quarter of 2013 and is now behind us. Although meeting our targets for the rest of the year is not without its own challenges, I have confidence in our people, our plan and our ability to turn strong backlog growth of 41.1% from the end of 2012, into a profitable second quarter and full year 2013.”
Sales in the company’s Specialty Vehicle segment, which services the RV industry, totaled $29.3 million in the first quarter of 2013 versus $26.1 million in the first quarter of 2012, an increase of 12.3%. The revenue increase was due to higher sales of recreational vehicle chassis and aftermarket parts and accessories (APA), more than offsetting a net decline in production of other specialty vehicles. Chassis sales rose by $2 million to $20.4 million in the first quarter of 2013 while APA sales totaled $6.9 million, up $2.2 million from the first quarter of 2012.
Other highlights included:
• Emergency Response (ER) revenue rose 2.9% to $34.9 million from $33.9 million.
• Delivery & Service (DSV) revenue declined 45.7% to $31.9 million from $58.8 million.
• Gross margin of 6.6% of sales versus 11.6% in the first quarter of 2012.
• Operating loss of $6.8 million compared to an operating loss of $3.4 million in Q1 2012.
• Consolidated order backlog at March 31, 2013, increased 41.1% to $228.6 million versus $162.0 million at December 31, 2012, and up 64.5% from $135.7 million at March 31, 2012.
• Cash balance of $16.6 million at March 31, 2013, compared to $21.7 million at December 31, 2012.
Looking forward, Spartan’s interim CFO Lori Wade noted, “We expect the company to be modestly profitable in the second quarter of 2013, with improving profitability during the second half of 2013. We expect Spartan to be profitable for the year as a whole. For the year, we expect to realize mid-single-digit revenue growth.
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Spartan Motors Inc., parent to Spartan Chassis Inc., today (March 6) announced that Joseph M. Nowicki is stepping down as CFO and treasurer to accept a position with another company. Lori L. Wade has been named Interim CFO and treasurer, effective March 22.
“Joe Nowicki was instrumental in building our finance team and in leading our business transformation,” said John Sztykiel, CEO of Spartan Motors, Inc. “Due to Joe’s financial leadership, Spartan has a solid balance sheet with great liquidity. We wish him the very best in his new position.
“I am pleased that Lori Wade has agreed to take on the additional duties of interim CFO. She knows our business well and has the support of the entire company in her new role, and particularly the support of a tremendous finance team.”
Wade has served as the company’s executive director of finance since February 2008. Prior to joining Spartan, she spent more than 21 years at Eaton Corp. where she served as worldwide Sarbanes-Oxley manager, logistics center controller and other financial management positions.
Charlotte, Mich.-based Spartan Motors Inc. reported a net loss on higher revenue for its fourth quarter.
The company, parent to Spartan Chassis Inc., said fourth-quarter revenue totaled $124.5 million compared to $111.2 million a year ago, an increase of 12.0%. For the three-month period, Spartan reported a net loss of $2.5 million, or 7 cents per diluted share, compared to net income of $0.7 million, or 2 cents per diluted share.
Excluding pre-tax restructuring charges of $1.4 million and a $1.9 million earn-out accrual related to the 2009 purchase of Utilimaster Corp., Spartan posted an adjusted net income of $0.5 million, or 1 cent per diluted share, in the fourth quarter of 2012.
For the full year, Spartan posted revenue of $470.6 million, an increase of 10.5% from 2011 revenue of $426 million. The company reported a net loss of $2.5 million, or 7 cents per diluted share, compared to net income of $0.8 million, or 2 cents per diluted share, in 2011.
Results for 2012 include pre-tax restructuring charges of $9.1 million and an earn-out accrual of $2.9 million, while for 2011 Spartan incurred pre-tax restructuring charges of $2.8 million and a $1.0 million earn-out accrual. On an adjusted basis, excluding restructuring charges and the Utilimaster earn-out, Spartan’s 2012 earnings were $6.3 million, or $0.19 per diluted share compared to $3.6 million, or $0.11 per diluted share in 2011, an increase of 75.0%.
CEO John Sztykiel stated, “The fourth quarter and full year 2012 reflected Spartan’s diversified growth strategy, with fourth-quarter revenues rising 12% over last year and full-year revenues up 10.5% from 2011. We also posted full-year adjusted earnings growth compared to 2011 and a total order backlog that increased 20.0% from year end 2011. Revenue growth was a result of Spartan’s brand strength, new product initiatives and market recovery. In addition to generating revenue growth, we did a very good job of managing operating expenses and the balance sheet.
“Although we posted sales and adjusted earnings growth in 2012, our results also show that we have more work to do on improving operations, particularly the gross margin.”
Spartan also reported that Utilimaster’s relocation from Wakarusa, Ind., to Bristol continues, with most of the physical move to be completed by the end of the first quarter of 2013. Production of walk-in vans is expected to begin at the end of the first quarter of 2013 with the move substantially completed during the second quarter.
Spartan closed the sale on 15 of the 16 buildings at its Wakarusa, Ind., complex to Forest River Inc. The company retains one building at Wakarusa, currently held for sale.
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Spartan Motors Inc. reported a net loss for its third quarter on a 6% decline in sales while RV revenues improved 20.9%.
The Charlotte, Mich.-based company, parent to Spartan Chassis Inc., posted third-quarter revenues of $112.9 million compared to $120.3 million a year ago. Spartan reported a net loss of $0.3 million for the third quarter, or 1 cent per diluted share, compared to net income of $3.2 million, or 10 cents per diluted share in the third quarter of 2011.
Excluding pre-tax restructuring charges of $1.6 million, Spartan posted adjusted operating earnings for the quarter of 2 cents per diluted share.
CEO John Sztykiel noted, “Spartan continued its trend of generating an adjusted operating profit through the third quarter of 2012 as our Emergency Response and Specialty Vehicles units posted growth in revenue and order backlog compared to the third quarter of 2011.
“The improved performance of these units underscores the importance of our diversification strategy as the growth in these segments partially offset a slower quarter in our Delivery & Service Vehicles unit. We are executing our plan and continuing our momentum in returning our ER and Specialty Vehicles units to growth and taking action to improve our operations.”
A breakdown by division showed:
• The Specialty Vehicles segment generated revenue of $23.9 million in the third quarter of 2012, up 0.8% from $23.8 million in the year-ago third quarter. Most of the increase came from higher sales of recreational vehicle chassis, which totaled $17.1 million for the third quarter of 2012, an increase of $3 million, or 20.9%, over the third quarter of 2011. RV chassis sales increased as RV manufacturers using Spartan’s custom chassis increased their sales and market share during the third quarter of 2012.
• Spartan’s Emergency Response Vehicles segment, which includes both the Emergency Response Chassis and Emergency Response Bodies operations, posted a sales gain of $4.6 million, or 12.9%, in the third quarter of 2012 compared to the prior year. Sales of Spartan’s custom chassis accounted for most of the increase, as the market gradually recovered and responded favorably to Spartan’s new product offerings. During the quarter, Spartan shipped the first few ER chassis equipped with the Spartan APS advanced airbag restraint system.
• The Delivery & Service Vehicles segment posted third quarter 2012 revenue of $49.0 million, down from $61.2 million in the third quarter of 2011. The revenue decline was largely due to the decline in aftermarket accessory sales during the most recent third quarter. Vehicle sales in Q3 2012 were adversely affected to a lesser extent by a decline in walk-in van sales compared to Q3 2011 when DSV shipped a record number of units to a major customer. Shortages of some materials also pushed out production of some walk-in van units beyond Q3 2012.
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Spartan Motors Inc. today (Aug. 2) announced operating results for the second quarter of 2012. Revenues totaled $114.4 million, up 15% from the second quarter of 2011. Spartan reported net income for the second quarter of $2.4 million, or $0.07 per diluted share, compared to a net loss of $2.2 million, or $0.07 per diluted share, in the second quarter of 2011. Excluding restructuring charges of $0.7 million, Spartan posted adjusted operating earnings of $0.08 per diluted share in the second quarter of 2012, versus an adjusted net loss of $0.01 per diluted share in the second quarter of 2011.
CEO John Sztykiel noted, “Our strategy of blended growth combined with improved operating performance is the right plan for Spartan. Our quarterly results showed the progress we have made on both fronts. We expect to make further progress in operational improvements as we relocate Utilimaster’s operations to Bristol (Ind.) and the Reach to Charlotte (Mich.), among other operational initiatives.”
A breakdown by segment showed:
• The Delivery & Service Vehicles (“DSV”) unit posted second quarter 2012 revenue of $47.8 million, up 23.2% from $38.8 million in the second quarter of 2011. Sales of walk-in vans, truck bodies and aftermarket products including keyless entry, all rose from the prior-year second quarter. Vehicles sales rose to $25.0 million from $22.9 million the previous year while aftermarket parts and field service solutions revenue totaled $22.7 million compared to $15.8 million.
• Spartan’s Emergency Response (“ERC”) and Recreational & Specialty (“RSC”) chassis businesses posted higher sales during the second quarter of 2012 compared to the prior-year period. Sales at the ERC unit totaled $28 million in the most recent quarter, up from $22.2 million in the second quarter of 2011. Revenue for RSC increased to $16.2 million in the second quarter of 2012 versus $15.2 million in the prior-year second quarter.
• Sales at Spartan’s Emergency Response Vehicles (“ERV”) group rose to $15.6 million in the second quarter of 2012, from $13.9 million in the second quarter of 2011. ERV sales grew from the prior year despite a short-term lack of commercial chassis availability during the quarter. One of the two suppliers affected returned to more normal chassis production toward the end of the second quarter of 2012, thereby alleviating most of the chassis shortage. The shortage of commercial chassis negatively impacted second quarter 2012 revenue by approximately $1.2 million.
Spartan’s gross margin excluding restructuring items was 16.9% in the second quarter of 2012 versus 14.5% in the second quarter of 2011. Positively impacting gross profit and gross margin were higher chassis production volumes, favorable mix at Utilimaster due to higher aftermarket parts sales, plus improved operating efficiency throughout the Company. Including restructuring items of $0.6 million in the second quarter of 2012 and $1.7 million in the second quarter of 2011, gross margin was 16.4% and 12.7% for the second quarter of 2012 and 2011, respectively. Restructuring charges in the second quarter of 2012 were mainly related to the relocation of DSV’s Utilimaster operations to Bristol, Ind.
Operating expenses in the second quarter of 2012 totaled $14.8 million, or 12.9% of sales, excluding restructuring charges, compared to $15.3 million, or 15.4% of sales, in the second quarter of 2011. Restructuring charges in the second quarter of 2012 were $0.1 million, or 0.1% of sales, versus $1.1 million, or 1.1% of sales in the second quarter of 2011. Restructuring charges for the most recent quarter were due primarily to the transfer of Reach walk-in van production to Spartan’s Charlotte, Mich. facility. Including restructuring charges, operating expense in the second quarter of 2012 was $14.9 million or 13.0% of sales, compared to $16.3 million or 16.4% of sales in the prior-year second quarter.
Regarding the company’s outlook, CFO Joe Nowicki stated, “Our expectations for the year remain largely unchanged. We expect 2012 revenue to increase from 2011 in the mid- to upper-single digits, a slight increase from our last update. We are adjusting our projected gross margin for the year down slightly, to the 14.5 – 15% range, with operating expenses of 12 – 12.5%. For the year, we expect revenue growth in our Emergency Response businesses as well as at Utilimaster, but remind investors that Utilimaster’s margins will be negatively impacted by the completion of our keyless entry program in July and less efficient vehicle production until the relocation to Bristol is complete. We continue to move forward with our initiatives and expect to generate continued profitability in future quarters.”
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Charlotte, Mich.-based Spartan Motors Inc. today (May 1) reported a 25% increase in revenue for its first quarter while the company incurred a net loss, primarily due to restructuring costs from its Utilimaster Corp. subsidiary.
Revenue during the period totaled $118.8 million, an increase of 25% from $95.1 million in the first quarter of 2011. Revenue growth was led by the delivery and service vehicles segment, which posted sales of $58.8 million, up 149.2% from $23.6 million the previous year. Motorhome chassis sales generated by the Spartan Chassis Inc. subsidiary were $18.5 million.
Spartan reported a net loss for the first quarter of $2.0 million, or 6 cents per diluted share, compared to a net loss of $898,000, or 3 cents per diluted share, the year prior. Excluding restructuring charges of $5.4 million, Spartan posted adjusted operating earnings of 4 cents per diluted share.
Most of the restructuring cost resulted from the impaired asset value of Utilimaster’s Wakarusa, Ind., production complex. Management expects annual cost reductions of $4 million or more after Utilimaster’s relocation to Bristol, Ind., is complete.
John Sztykiel, president and CEO of Spartan Motors, noted, “Our blended growth strategy consists of organic growth, alliances and acquisitions, and Spartan’s improved results for the first quarter illustrate our strategy is sound. Beginning in late 2009, the acquisition of Utilimaster diversified our revenue stream. We then generated organic growth by developing new products for Utilimaster. Now, with the steps we recently announced with new partners Gimaex and Renault, we intend to strengthen the Spartan brand further and drive additional revenue growth through alliances.”
Adjusted gross profit for the first quarter of 2012 was $17.4 million, excluding a previously disclosed restructuring charge of $3.6 million. Excluding the restructuring charge, Spartan posted an adjusted gross margin of 14.6% of sales compared to 13.6% in the first quarter of 2011. On a GAAP basis, Spartan reported gross profit of $13.7 million, compared to gross profit of $13.0 million a year ago.
“Spartan continued to follow its operating plan during the first quarter, which translated into improved operating performance,” said Joe Nowicki, CFO of Spartan Motors. “Our Utilimaster business was particularly strong during the quarter, both in vehicle sales and aftermarket parts. We also believe we outperformed major competitors in the emergency response market and continued to gain share during the first quarter of 2012. While our results for the quarter showed progress compared to last year, we recognize that we still have much room for improvement. As we increase our focus on improving our operational efficiency, we expect to drive margins higher.”
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Spartan Chassis Inc., a subsidiary of Spartan Motors Inc., announced that its Supplier Performance And Review Committee (SPARC) recently recognized 12 top-performing suppliers during the 10th Annual Supplier Conference held March 21 near the company’s headquarters in Charlotte, Mich.
According to a press release, rhe suppliers honored consistently embody Spartan Chassis’ values and maintain an unwavering commitment to quality, on-time delivery and excellent customer support.
“Spartan Motors is committed to providing value to our customers on a consistent basis,” said Jeremy Wilson, vice president of supply chain management. “Our supply base plays a critical role as they consistently deliver high quality products and do so together with reliable service which enhances the value of our product portfolio.”
The companies recognized include: Allison Transmission, Indianapolis; F.B. Wright Co., Kentwood, Mich.; Formed Solutions Inc., Holland, Mich.; Harris Battery Co. Inc., Bolivar, Ohio; Indiana Mills & MFG, Westerfield, Ind.; JWB Components, Kentwood, Mich.; Kissling Electrotec Inc., Fairfax, Va.; Molded Plastic Industries, Holt, Mich.; Parker Hannifin Corp., Portland, Mich.; Precision Cable Assemblies LLC, Brookfield, Wis.; Professional Metal Works, East Lansing, Mich.; TriMark Corp., New Hampton, Iowa.
Spartan Chassis Inc. exhibited two concept chassis at the recently completed National RV Trade Show in Louisville, Ky, that unwrap a growing trend in motorhomes: American RV buyers are starting to think smaller is better.
According to Torque News, this is because motorhome manufacturers have been aggressively seeking ways to improve their wheels that can drive demand. Current owners are looking to downsize their RVs and prospective buyers are interested in purchasing entry-level units.
“There are several key factors that are driving change in both the Class A and Class C motorhome markets,” said Dave Snitgen, vice president of recreational and specialty chassis at Charlotte, Mich.-based Spartan Chassis, a subsidiary of Spartan Motors Inc. “Given the various forces at work within our economy, such as higher fuel prices, a trend has emerged towards downsizing by both first-time and repeat buyers. Spartan Chassis has created two chassis concepts that we are confident will define the future design direction of the marketplace.”
Both concepts, a 32-foot Class A chassis and a 25-foot Class C chassis, capture key design features such as flexibility and adaptability, a Spartan spokesman said.
32-foot Concept Chassis
Torque News reported that a 2010 study by Harris Interactive indicates strong interest in smaller and more fuel-efficient RVs. To target this growth within the Class A segment, Spartan developed a 32-foot concept truck that is a lightweight, maneuverable mid-size, diesel-pusher chassis. The concept features improved fuel efficiency and a smaller carbon footprint, as well as the traditional benefits of a rear diesel engine chassis such as low engine noise, increased power options, and carrying capacity, according to a statement from Spartan.
Additional features include a Navistar MaxxForce 7 turbo-diesel engine, Allison 1000MH electronic transmission, Cummins Onan 6k generator, 22,000-pound GVWR, high-strength, low-alloy steel construction with 50,000 psi minimum yield, hydraulic disc brakes and a polymer diesel fuel tank.
25-foot Concept Chassis
With more than 40 million disabled adults living in the United States and a growing baby boomer generation, there is a need for a purpose-built, low-floor platform design that offers ease of entry and exit with the option of including an ADA-compliant ramp.
The concept incorporates front and rear self-leveling air suspensions with 4-corner kneeling. The kneeling feature, available at the touch of a single switch, reduces entry step height to a level never before seen on an RV. This concept chassis provides manufacturers with the opportunity to expand their business to include RVs for customers with mobility and health concerns.
Additional features include a Chevrolet G4500 gas and diesel chassis, air-ride suspension with sway bars (front and rear), electronic control kneeling (front and rear), a premium air dryer system with spin-on eco-friendly filtration and a three-year/50,000 mile limited chassis warranty.
“Since 1985, Spartan Chassis has developed significant technological innovations that have changed the RV industry,” said John Sztykiel, president and CEO of Spartan. “We continue that history of innovation with the presentation of our vision of chassis design. We are excited.”