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 motorhome supplier Spartan Chassis Inc., will announce its second-quarter results prior to the market opening on Aug. 1.
The company will also host a webcast of its conference call on the same day at 10 a.m. EDT to discuss its financial results with analysts and institutional investors.
To access the conference call go to www.spartanmotors.com and click on “Shareholders,” then “Webcasts.” If unable to participate during the live webcast, the call will be archived on the company’s website.
The ongoing move of Utilimaster Corp. from Wakarusa, Ind., to nearby Bristol dragged down earnings of parent company Spartan Motors Inc. for the first quarter of 2013. But, according to a report by the Elkhart Truth, the company expects the move to pay off in the long run and is expanding Utilimaster’s product offerings.
“We completed the move of Utilimaster’s walk-in van business from Wakarusa to Bristol,” during the quarter, wrote John Sztykiel, president and chief executive of Spartan. “Our high-volume line is now running at expected rates. Now we are adding the lower-volume, mixed-model line, which should ramp up to expected rates during the second quarter. We are excited to see more than 12 months of hard work come to fruition in the form of a high-quality product coming off the line, 100% complete,” he wrote in the company’s quarterly results announcement May 8.
Company revenues were down 19.1% from the same quarter last year and the company posted a net loss of 13 cents per share, much of that attributed to the Utilimaster move.
John Forbes, Utilimaster president, said production in Bristol started in mid-February, moving from a “sprawling, 16-building campus with a 2 1/2-mile-long production line and outdoor inventory storage to one, efficient, self-contained facility.”
The company has figured out better ways to produce vehicles, an effort it expects to save $4 million a year when all is said and done. “The Bristol project represents a shift in culture as well as production methods and location,” Forbes said in the company announcement.
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Spartan Motors Inc., parent to Spartan Chassis Inc., announced that its board has declared a cash dividend of 5 cents per share of common stock.
The Charlotte, Mich.-based manufacturer of custom chassis, emergency response and delivery and service vehicles reported its semi-annual dividend will be payable on June 27 to shareholders of record at the close of business on May 23.
“The approval of this semi-annual dividend reflects the board’s confidence in Spartan’s operations, financial strength and strategic direction. This marks the 20th consecutive year that Spartan has paid a cash dividend to shareholders, a record we are very proud of,” said John Sztykiel, CEO of Spartan Motors. “The board is committed to providing shareholders a consistent return component for their investment and builds the dividend into its annual capital plan.”
Spartan Motors on Wednesday (May 8) reported a net loss for its first quarter on a 19% decline in sales.
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 industry supplier Spartan Chassis Inc., will announce its first quarter results prior to the market opening on May 8.
The Charlotte, Mich.-based company will also host a webcast of its conference call on the same day at 10 a.m. ET to discuss its financial results with analysts and institutional investors.
To access the conference call go to www.spartanmotors.com and click on “Shareholders,” then “Webcasts.” If you are unable to participate during the live webcast, the call will be archived at www.spartanmotors.com.
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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Charlotte, Mich.-based Spartan Motors Inc., parent to Spartan Chassis Inc., will announce its fourth quarter and full year 2012 results prior to the market opening on Feb. 12.
According to a press release, the company will also host a webcast of its conference call on the same day at 10 a.m. Eastern to discuss its financial results with analysts and institutional investors.
To access the live webcast visit www.spartanmotors.com. For those unable to participate during the live webcast, the call will be archived on Spartan’s website (click on “Shareholders,” then “Webcasts”).