CHARLOTTE, Mich., May 5, 2015 /PRNewswire/ -- Spartan Motors,
Inc. (NASDAQ: SPAR) ("Spartan" or the "Company") today reported its
results for the first quarter of 2015. The Company posted a
net loss of $2.9 million or
($0.09) per share on revenue of
$128.4 million versus a net loss of
$2.1 million, or ($0.06) per share in the first quarter of
2014. Results for the first quarter of 2015 include pre-tax
restructuring expenses of $1.2
million in Spartan's Emergency Response (ER) segment.
First Quarter 2015 Overview
For the first quarter of 2015 compared to the first quarter of
2014:
- Net sales of $128.4 million,
up 0.3% from $128.0 million
- Gross margin of 10.7% of sales versus 10.0%
- Operating loss of $4.4 million
versus an operating loss of $3.5
million
- Net loss of $2.9 million, or
($0.09) per share, versus a net loss
of $2.1 million, or ($0.06) per share
- Order backlog increased to $264.0
million at March 31, 2015,
from $243.7 million at December 31, 2014
Daryl Adams, Spartan's Chief
Executive Officer, stated, "Continuous improvement and incremental
progress characterized the first quarter of 2015. Turning
around the performance of the ER segment's body business remains
Spartan's top priority and received most of our attention during
the quarter. The ER segment's revenue increased and body
production improved throughout the quarter as we reduced
bottlenecks in our production processes. More work and
investment is required, but I am encouraged by the progress made
and am confident we have the right plan and team in place.
"The Delivery & Service Vehicles (DSV) and Specialty Chassis
& Vehicles (SCV) segments both performed well during the
quarter, reporting higher profitability compared to the first
quarter of 2014. DSV produced most of a 665-unit walk-in van
order during the first quarter, with the remainder shipped early in
the second quarter. DSV experienced a favorable product mix
in its truck body line, along with higher Aftermarket and Service
revenue versus last year. SCV posted revenue growth due to a
favorable mix of motorhome chassis, along with growth in
Aftermarket Parts revenue. DSV and SCV ended the first
quarter of 2015 with positive momentum heading into the seasonally
stronger second and third quarters."
FIRST QUARTER 2015 SEGMENT RESULTS:
Delivery & Service Vehicles (DSV)
|
(In
thousands)
|
|
First
Quarter
|
|
|
|
2015
|
2014
|
%
Change
|
Delivery and
Service Vehicles
Revenue
|
|
|
|
|
Vehicles
|
|
$ 48,034
|
$ 58,565
|
-18.0%
|
|
Aftermarket &
Service
|
6,857
|
6,611
|
3.7%
|
|
Total
revenue
|
$ 54,891
|
$ 65,176
|
-15.8%
|
|
Operating income
(loss)
|
$ 2,649
|
$ 2,596
|
2.1%
|
|
|
|
|
|
|
- Total revenue declined from the first quarter of 2014 due to
lower vehicle production, partially offset by higher aftermarket
revenue. Vehicle production was constrained by a shortage of
cutaway van chassis as well as an issue with a walk-in van
component supplier. The supplier issue resulted in the shipment of
approximately 120 units of a 665-unit order in the second quarter
of 2015 rather than in the first quarter.
- DSV shipped 1,921 vehicles in the first quarter of 2015
compared to 2,752 vehicles. Sales of aftermarket parts and field
service solutions increased 3.7% to $6.9
million.
- Operating profit was $2.6 million
in the first quarter of 2015, up slightly from the prior year
despite lower revenue. Growth in aftermarket parts and service
revenue, along with a favorable mix in vehicle production, resulted
in a higher operating profit margin compared to last year.
- In March, DSV introduced a new delivery vehicle, the Velocity.
The Velocity is based on the new Ford Transit van that offers
diesel, gasoline, and two alternative-fuel engine options.
Innovative features of the Velocity include a curb-side sliding
door to reduce driver entry/exit time, thereby raising
efficiency.
- The DSV segment's backlog at the end of the first quarter of
2015 totaled $87.5 million compared
to $60.6 million at the end of 2014,
primarily due to an increase in truck body orders.
Emergency Response (ER)
(In
thousands)
|
|
First
Quarter
|
|
|
|
|
2015
|
2014
|
%
Change
|
Emergency
Response
Revenue
|
|
|
|
|
Revenue
|
$ 43,206
|
$ 35,942
|
20.2%
|
|
Operating income
(loss)
|
$ (5,386)
|
$ (3,664)
|
-47.0%
|
|
|
|
|
|
|
- ER segment revenue increased 20.2% to $43.2 million mainly due to higher cab and
chassis sales. Body sales increased slightly from the prior year as
production rates increased throughout the first quarter of 2015.
During the first quarter, a 21-unit export order entered production
and is expected to ship in the second quarter of 2015.
- The ER segment posted an operating loss of $5.4 million in the first quarter of 2015
compared to an operating loss of $3.7
million. Operating losses in the first quarter of 2015
include restructuring charges of $1.2
million plus additional expenses related to turnaround
efforts in the fire truck body business.
- Backlog decreased to $157.5
million at March 31, 2015,
compared to $160.7 million at
December 31, 2014.
Specialty Chassis & Vehicles (SCV)
(In
thousands)
|
|
First
Quarter
|
|
|
|
|
2015
|
2014
|
%
Change
|
Specialty Chassis
& Vehicles
Revenue
|
|
|
|
|
Motorhome &
Bus
|
$ 23,349
|
$ 21,784
|
7.2%
|
|
Parts and
Accessories
|
4,389
|
3,037
|
44.5%
|
|
Other Specialty
Vehicle
|
2,537
|
2,020
|
25.6%
|
|
Total
revenue
|
$ 30,275
|
$ 26,841
|
12.8%
|
|
Operating
income
|
$ 966
|
$ 633
|
52.6%
|
|
|
|
|
|
|
- The SCV segment reported higher revenue and operating income in
the first quarter of 2015 compared to the prior year. Segment
revenue increased 12.8% to $30.3
million from $26.8 million
with sales of motorhome and bus chassis climbing 7.2% to
$23.3 million from $21.8 million. Aftermarket Parts & Assemblies
(APA) revenue rose to $4.4 million
from $3.0 million.
- Operating income increased to $1.0
million in the first quarter of 2015 from $0.6 million. Growth in operating income was
driven by higher APA revenue and favorable motorhome chassis
mix.
- Backlog at March 31, 2015 totaled
$19.1 million versus $22.4 million at December
31, 2014.
Financial Summary and Outlook
Lori Wade, Spartan's Chief
Financial Officer, commented, "Revenue increased slightly during
the first quarter of 2015 despite a difficult comparison to the
prior year. Timing of DSV's walk-in van shipments was
weighted more heavily toward the end of the quarter, resulting in a
higher accounts receivable balance compared to the end of
2014. During the first quarter, the ER segment produced part
of a 21-unit export order that resulted in significant inventory
growth from the end of 2014. This order is expected to ship
late in the second quarter and be recognized as revenue upon
delivery to the customer early in the third quarter of 2015.
Increases in accounts receivable and inventory, net of growth
in accounts payable, resulted in a use of cash of more than
$10.0 million in the first
quarter. During the quarter, we made the last earn-out
payment related to the Utilimaster acquisition, totaling
$1.5 million.
"Gross margin for the first quarter of 2015 improved to 10.7%
from 10.0%. DSV and SCV segments reported higher operating income
compared to the first quarter of 2014, with DSV's favorable product
mix and operating efficiency more than offsetting lower revenue.
Spartan reported an operating loss of $4.4 million compared to a loss of $3.5 million in the first quarter of 2014.
Operating losses in the ER segment, including costs related to
turnaround efforts and restructuring expenses of $1.2 million in the ER body business, more than
offset operating income growth the in DSV and SCV segments," stated
Wade.
"Our revenue outlook for 2015 calls for mid-single-digit growth
from 2014, consistent with our prior outlook," stated Wade.
"Revenue growth should be concentrated in the second and third
quarters, with the third quarter expected to report the highest
revenue for the year. We anticipate second quarter operating
income just above breakeven with the third quarter projected to be
more profitable than the second quarter. For the full year,
we estimate restructuring expenses in the ER segment of
$3.2 million. At this time, we
expect a modest operating profit, including ER segment-related
restructuring expenses, for 2015."
Conference Call, Webcast and Investor
Information
Spartan Motors will host a conference call for
analysts and portfolio managers at 10 a.m.
ET today to discuss these results and current business
trends. To listen to a live webcast of the call, please visit
www.spartanmotors.com, click on "Shareholders," and then on
"Webcasts." For more information about Spartan, please visit
www.spartanmotors.com.
About Spartan Motors
Spartan Motors, Inc. designs,
engineers and manufactures specialty chassis, specialty vehicles,
truck bodies and aftermarket parts for the recreational vehicle
(RV), emergency response, government services, defense, and
delivery and service markets. The Company's brand names – Spartan™,
Spartan Chassis™, Spartan ER™, Spartan ERV™ and Utilimaster® - are
known for quality, performance, service and first-to-market
innovation. The Company employs approximately 1,600 associates at
facilities in Michigan,
Pennsylvania, South Dakota and Indiana. Spartan reported sales of
$507 million in 2014 and is focused
on becoming a global leader in the design, engineering and
manufacture of specialty vehicles and chassis. Visit Spartan Motors
at www.spartanmotors.com.
This release contains several forward-looking statements that
are not historical facts, including statements concerning our
business, strategic position, financial projections, financial
strength, future plans, objectives, and the performance of our
products and operations. These statements can be identified by
words such as "believe," "expect," "intend," "potential," "future,"
"may," "will," "should," and similar expressions regarding future
expectations. These forward-looking statements involve
various known and unknown risks, uncertainties, and
assumptions that are difficult to predict with regard to
timing, extent, and likelihood. Therefore, actual performance
and results may materially differ from what may be expressed or
forecasted in such forward-looking statements. Factors that
could contribute to these differences include operational and other
complications that may arise affecting the implementation of our
plans and business objectives; continued pressures caused by
economic conditions and the pace and extent of the economic
recovery; challenges that may arise in connection with the
integration of new businesses or assets we acquire or the
disposition of assets; restructuring of our operations, and/or our
expansion into new geographic markets; issues unique to government
contracting, such as competitive bidding processes, qualification
requirements, and delays or changes in funding; disruptions within
our dealer network; changes in our relationships with major
customers, suppliers, or other business partners, including Isuzu;
changes in the demand or supply of products within our markets or
raw materials needed to manufacture those products; and changes in
laws and regulations affecting our business. Other
factors that could affect outcomes are set forth in our Annual
Report on Form 10-K and other filings we make with the Securities
and Exchange Commission (SEC), which are available at
www.sec.gov or our website. All forward-looking
statements in this release are qualified by this paragraph.
Investors should not place undue reliance on forward-looking
statements as a prediction of actual results. We undertake no
obligation to publicly update or revise any forward-looking
statements in this release, whether as a result of new information,
future events, or otherwise.
Spartan Motors,
Inc. and Subsidiaries
Consolidated
Balance Sheets
(In thousands,
except par value)
|
|
|
(Unaudited)
|
|
|
|
March
31,
|
|
December
31,
|
|
2015
|
|
2014
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
11,958
|
|
$
28,570
|
Accounts receivable,
less allowance of $142 and $144
|
70,252
|
|
48,362
|
Inventories
|
85,070
|
|
71,163
|
Deferred income tax
assets
|
7,799
|
|
7,799
|
Income taxes
receivable
|
3,143
|
|
1,696
|
Other current
assets
|
3,552
|
|
3,661
|
Total current
assets
|
181,774
|
|
161,251
|
|
|
|
|
Property, plant
and equipment, net
|
50,162
|
|
50,417
|
Goodwill
|
15,961
|
|
15,961
|
Intangible assets,
net
|
8,782
|
|
8,958
|
Other
assets
|
2,348
|
|
2,226
|
TOTAL
ASSETS
|
$ 259,027
|
|
$ 238,813
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
46,274
|
|
$
22,762
|
Accrued
warranty
|
9,577
|
|
9,237
|
Accrued customer
rebates
|
2,436
|
|
2,166
|
Accrued compensation
and related taxes
|
9,080
|
|
8,226
|
Deposits from
customers
|
10,398
|
|
11,524
|
Other current
liabilities and accrued expenses
|
5,518
|
|
6,646
|
Current portion of
long-term debt
|
60
|
|
59
|
Total current
liabilities
|
83,343
|
|
60,620
|
|
|
|
|
Other non-current
liabilities
|
2,498
|
|
2,365
|
Long-term debt,
less current portion
|
5,186
|
|
5,202
|
Deferred income
tax liabilities
|
2,008
|
|
2,008
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
Preferred stock, no
par value: 2,000 shares authorized (none issued)
|
-
|
|
-
|
Common stock, $0.01
par value; 40,000 shares authorized; 34,288 and 34,094
outstanding
|
343
|
|
341
|
Additional paid in
capital
|
75,962
|
|
75,695
|
Retained
earnings
|
89,844
|
|
92,724
|
Total Spartan
Motors, Inc. shareholders' equity
|
166,149
|
|
168,760
|
Non-controlling
interest
|
(157)
|
|
(142)
|
Total shareholders'
equity
|
165,992
|
|
168,618
|
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY
|
$ 259,027
|
|
$ 238,813
|
|
|
|
|
Spartan Motors,
Inc. and Subsidiaries
Consolidated
Statements of Operations
(In thousands,
except per share data)
(Unaudited)
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
2015
|
|
% of
sales
|
|
2014
|
|
% of
sales
|
Sales
|
|
$ 128,372
|
|
|
|
$ 127,959
|
|
|
Cost of products
sold
|
|
114,332
|
|
89.1
|
|
115,214
|
|
90.0
|
Restructuring
charges
|
|
335
|
|
0.3
|
|
-
|
|
|
Gross
profit
|
|
13,705
|
|
10.7
|
|
12,745
|
|
10.0
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
3,641
|
|
2.8
|
|
2,859
|
|
2.2
|
|
Selling, general and
administrative
|
|
13,602
|
|
10.6
|
|
13,428
|
|
10.5
|
|
Restructuring
charges
|
|
820
|
|
0.6
|
|
-
|
|
0.0
|
Total operating
expenses
|
|
18,063
|
|
14.1
|
|
16,287
|
|
12.7
|
|
|
|
|
|
|
|
|
|
|
Operating
loss
|
|
(4,358)
|
|
(3.4)
|
|
(3,542)
|
|
(2.8)
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
(90)
|
|
(0.1)
|
|
(94)
|
|
(0.1)
|
|
Interest and other
income
|
|
127
|
|
0.1
|
|
128
|
|
0.1
|
Total other
income
|
|
37
|
|
0.0
|
|
34
|
|
0.0
|
|
|
|
|
|
|
|
|
|
|
Loss before
taxes
|
|
(4,321)
|
|
(3.4)
|
|
(3,508)
|
|
(2.7)
|
|
|
|
|
|
|
|
|
|
|
Taxes
|
|
(1,426)
|
|
(1.1)
|
|
(1,367)
|
|
(1.1)
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
(2,895)
|
|
(2.3)
|
|
(2,141)
|
|
(1.7)
|
|
|
|
|
|
|
|
|
|
|
Less: Net loss
attributable to non-controlling interest
|
|
(15)
|
|
0.0
|
|
(1)
|
|
0.0
|
|
|
|
|
|
|
|
|
|
|
Net loss
attributable to Spartan Motors, Inc.
|
|
(2,880)
|
|
(2.2)
|
|
(2,140)
|
|
(1.7)
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
net loss per share
|
|
$
(0.09)
|
|
|
|
$
(0.06)
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
weighted average common shares outstanding
|
|
33,661
|
|
|
|
33,728
|
|
|
|
|
|
|
|
|
|
|
|
|
Spartan Motors,
Inc. and Subsidiaries
|
Sales and Other
Financial Information by Business Segment
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31, 2015 (in thousands of dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business
Segments
|
|
|
|
|
|
|
Emergency
Response
|
|
Delivery &
Service Vehicles
|
|
Specialty Chassis
&Vehicles
|
|
Other
|
|
Consolidated
|
Emergency Response
Vehicle Sales
|
$ 43,206
|
|
$
-
|
|
$
-
|
|
$
-
|
|
$ 43,206
|
Utilimaster Vehicle
Sales
|
|
|
48,034
|
|
|
|
|
|
48,034
|
Motorhome Chassis
Sales
|
|
|
|
|
23,349
|
|
|
|
23,349
|
Other Specialty
Vehicles
|
|
|
|
|
2,537
|
|
|
|
2,537
|
Aftermarket Parts and
Assemblies
|
|
|
6,857
|
|
4,389
|
|
|
|
11,246
|
Total
Sales
|
|
$ 43,206
|
|
$ 54,891
|
|
$ 30,275
|
|
$ -
|
|
$ 128,372
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
Amortization Expense
|
$
195
|
|
$ 912
|
|
$ 98
|
|
$ 564
|
|
$
1,769
|
Operating Income
(Loss)
|
(5,386)
|
|
2,649
|
|
966
|
|
(2,587)
|
|
(4,358)
|
Segment
Assets
|
|
95,035
|
|
85,223
|
|
29,110
|
|
49,659
|
|
259,027
|
|
|
|
|
|
|
|
|
|
|
|
|
Spartan Motors,
Inc. and Subsidiaries
|
|
Sales and Other
Financial Information by Business Segment
|
|
Unaudited
|
|
|
|
Period End Backlog
(amounts in thousands of dollars)
|
|
|
March 31,
2015
|
|
Dec. 31,
2014
|
|
Sept. 30,
2014
|
|
June 30,
2014
|
|
March 31,
2014
|
|
Emergency Response
Vehicles*
|
157,486
|
|
160,743
|
|
155,968
|
|
165,144
|
|
176,350
|
|
|
|
|
|
|
|
|
|
|
|
|
Delivery &
Service Vehicles Backlog *
|
87,485
|
|
60,630
|
|
54,789
|
|
62,994
|
|
83,356
|
|
|
|
|
|
|
|
|
|
|
|
|
Motorhome Chassis
*
|
13,980
|
|
16,436
|
|
20,972
|
|
15,761
|
|
12,866
|
|
Other
Vehicles*
|
3,268
|
|
3,994
|
|
-
|
|
-
|
|
-
|
|
Aftermarket Parts and
Assemblies
|
1,830
|
|
1,932
|
|
1,676
|
|
2,803
|
|
1,438
|
|
Total Specialty
Chassis & Vehicles Backlog
|
19,078
|
|
22,362
|
|
22,648
|
|
18,564
|
|
14,304
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Backlog
|
$264,049
|
|
$243,735
|
|
$233,405
|
|
$246,702
|
|
$274,010
|
|
|
|
|
|
|
|
|
|
|
|
|
* Anticipated time to
fill backlog orders at March 31, 2015; 13 months or less for
emergency response vehicles; 2 months or less for motorhome
chassis; 6 months or less for delivery and service vehicles; and 2
month or less for other products.
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/spartan-motors-reports-first-quarter-2015-results-300077271.html
SOURCE Spartan Motors, Inc.