Consolidated Backlog Increases 54.7 Percent, Return on Invested
Capital Improves to 22.2 Percent CHARLOTTE, Mich., July 27
/PRNewswire-FirstCall/ -- Spartan Motors, Inc. (NASDAQ:SPAR) today
reported its second consecutive quarter of record sales and
earnings for the quarter ended June 30, 2006. Spartan also reported
a 95.3 percent increase in net earnings and a 22.3 percent increase
in net sales compared to last year's quarter. Spartan Motors, a
leading manufacturer of custom motorhome chassis, fire truck
chassis, specialty vehicle chassis and emergency-rescue vehicles,
reported net earnings of $5.0 million, or $0.38 per diluted share,
on net sales of $109.2 million for the second quarter of 2006,
compared with net earnings of $2.6 million, or $0.20 per diluted
share, on net sales of $89.3 million for the second quarter of
2005. Through the first six months of 2006, Spartan's sales
increased 19.4 percent compared with the same period of last year,
while earnings increased 105.8 percent compared to six months ended
2005. The company's earnings per diluted share for six months ended
2006 was $0.73 per share, exceeding its earnings for the whole of
2005, which was $0.65 per diluted share. The company attributed its
sixth consecutive quarter of improved quarter- over-quarter
earnings to improvements across the board, including higher sales
of its recreational vehicle (RV) and fire truck chassis, and to
additional sales of military vehicle chassis. Spartan's Crimson
Fire subsidiary returned to profitability in the quarter, helping
the company's EVTeam operating group, consisting of Crimson Fire,
Crimson Fire Aerials and Road Rescue, to narrow its loss and bring
it one-step closer to profitability. "Looking at our record-level
performance, improved return on invested capital and highest-ever
backlog, Spartan's future continues to move in the right
direction," said John Sztykiel, president and CEO of Spartan
Motors. "With our additional military contracts, Spartan is
evolving its business model in line with our vision of becoming
North America's premier manufacturer of specialty vehicles and
chassis. "Though we are pleased with our results this quarter, we
are not satisfied with them. There remain opportunities and issues
that we need to address to continue the growth in shareholder
value. The good news is that there are disciplined initiatives and
positive trends in place that will address both. Our record-level
backlog indicates the growing strength and demand of Spartan's
brands -- Spartan Chassis, Crimson Fire, Crimson Fire Aerials and
Road Rescue -- and bodes well for the future." Spartan's
consolidated backlog was approximately $241.8 million as of June
30, 2006, compared with backlog of $156.3 at the end of last year's
second quarter, a 54.7 percent increase year-over-year and the
highest backlog in Spartan's history. Spartan Motors anticipates
filling 65 to 70 percent of its current backlog orders by December
31, 2006. On a consolidated basis, Spartan posted a return on
invested capital (ROIC) of 22.2 percent in the second quarter of
2006, a 62.0 percent increase compared to ROIC of 13.7 percent for
the same quarter in 2005. (Spartan defines return on invested
capital as operating income, less taxes, on an annualized basis,
divided by total shareholders' equity.) Spartan reported its
balance sheet remains sound, and the company ended the quarter with
$1.3 million in long-term debt and $6.8 million in cash and cash
equivalents. Spartan reported its gross margin improved to 17.1
percent in the second quarter of 2006, compared with 13.8 percent
for the same period in 2005, reflecting improved product mix,
pricing, overhead utilization and labor efficiencies. Operating
margin also improved to 7.4 percent in the second quarter of 2006,
compared with 4.2 percent in the same quarter of 2005. Spartan
Chassis Quarterly net earnings at Spartan Chassis, the company's
largest operating subsidiary, improved 91.8 percent in the quarter
compared to last year's second quarter, while sales increased 31.9
percent. Sales of RV chassis in the quarter increased 24.3 percent
compared to the second quarter of 2005 and sales of fire truck
chassis increased 20.7 percent, reaching a new company record. "We
grew RV chassis sales compared to last year's quarter, despite the
overall downturn in the RV market," said Sztykiel. "This
improvement was due to our market share gains and the increased
number of models that now feature Spartan chassis. Over the short
term, current geopolitical events and economic uncertainty continue
to create challenges for the RV industry. Looking over the long
term, 11,000 people turn the age of 50 each day; this bodes
extremely well for Spartan and the RV industry. "This quarter was
our third consecutive quarter of increased orders for fire truck
chassis, and our backlog for fire truck chassis as of June 30, 2006
increased 160 percent compared to the same date last year. Our
orders for fire truck chassis in the first six months of 2006
exceeded our total shipments for the whole of 2005. We will break
ground in early August 2006 on a 102,000-square-foot manufacturing
facility, which will give us increased capacity for existing fire
truck chassis products and allow us to expand our product offerings
into new markets." Since May 2005, Spartan has been a key supplier
of chassis and other components for the Cougar blast-protected
military vehicle. In July 2006, BAE Systems awarded Spartan a
contract to assist with the production of the Iraqi Light Armored
Vehicle (ILAV), a variant of the Cougar. Both vehicles are designed
to withstand explosions from mines and improvised explosive devices
(IEDs), a leading source of causalities among the U.S. military in
Iraq. Spartan's sales for specialty vehicle chassis, including
chassis for military vehicles, increased six fold in the second
quarter of 2006 compared to last year's second quarter, though the
first Cougar units only started shipping near the end of the second
quarter of 2005. Spartan's specialty vehicle chassis backlog as of
June 30, 2006 increased 50.2 percent compared to the same time last
year. "Spartan Chassis is serving a key role in the production of
IED-resistant vehicles, which are a top priority for the U.S.
military effort. Spartan designs its chassis and components to
break off and deflect safely away from the Cougar and ILAV's
occupants during an explosion. This design, coupled with Force
Protection's V-shaped hull that absorbs the blast, has helped the
Cougar serve in hundreds of operations in Iraq without a single
fatality." Emergency Vehicle Team (EVTeam) Spartan's EVTeam, which
consists of its Crimson Fire, Crimson Fire Aerials and Road Rescue
subsidiaries, posted a loss for the second quarter of 2006. The
EVTeam's net sales decreased less than one percent compared to the
prior year's second quarter. Improved pricing and a more
disciplined cost structure among the EVTeam subsidiaries and an
improved net profit at Crimson Fire helped the EVTeam narrow its
net loss by 7.3 percent compared to the second quarter of 2005.
Crimson Fire also increased its sales in the second quarter by 18.1
percent compared to the same period of last year and Crimson Fire
Aerials increased its sales by 93.5 percent compared to the second
quarter of 2005. Road Rescue reported a decrease in sales for the
quarter of 41.6 percent compared to last year's quarter. "We are
very pleased with the progress of the EVTeam," Sztykiel said. "Road
Rescue continues to have challenges with controlling labor costs
and working through its backlog of lower-priced units. At the same
time, the increased sales at Crimson Fire and Crimson Fire Aerials,
along with their expanding market share, significantly increased
pull-through sales of Spartan fire truck chassis. The performance
of Spartan Chassis did not occur overnight, and the EVTeam
continues to move in the right direction." Conference Call, Webcast
and Presentation 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
http://www.spartanmotors.com/webcasts.asp . About Spartan Motors
Spartan Motors, Inc. (http://www.spartanmotors.com/ ) designs,
engineers and manufactures custom chassis and vehicles for the
recreational vehicle, fire truck, ambulance, emergency-rescue and
specialty vehicle markets. The Company's brand names --
Spartan(TM), Crimson Fire(TM), Crimson Fire Aerials(TM), and Road
Rescue(TM) -- are known for quality, value, service and being the
first to market with innovative products. The Company employs
approximately 900 at facilities in Michigan, Pennsylvania, South
Carolina, and South Dakota. Spartan reported sales of $343.0
million in 2005 and is focused on becoming the premier manufacturer
of specialty vehicles and chassis in North America. This release
contains forward-looking statements, including, without limitation,
statements concerning our business, future plans and objectives and
the performance of our products. These forward-looking statements
involve certain risks and uncertainties that ultimately may not
prove to be accurate. Actual results and future events could differ
materially from those anticipated in such statements. Technical
complications may arise that could prevent the prompt
implementation of the plans outlined above. The company cautions
that these forward-looking statements are further qualified by
other factors including, but not limited to, those set forth in the
company's Annual Report on Form 10-K filing and other filings with
the United States Securities and Exchange Commission (available at
http://www.sec.gov/ ). Government contracts and subcontracts
typically involve long payment and purchase cycles, competitive
bidding, qualification requirements, delays or changes in funding,
extensive specification development and changes, price negotiations
and milestone requirements. An announced award of a governmental
contract is not equivalent to a finalized executed contract and
does not assure that orders will be issued and filled. Government
agencies also often retain some portion of fees payable upon
completion of a project and collection of contract fees may be
delayed for long periods, which can negatively impact both prime
contractors and subcontractors. The company undertakes no
obligation to publicly update or revise any statements in this
release, whether as a result of new information, future events or
otherwise, except as required by law. Spartan Motors, Inc. and
Subsidiaries Condensed Consolidated Statements of Operations Three
Months Ended June 30, 2006 and 2005 June 30, 2006 June 30, 2005
$-000- % $-000- % Sales 109,227 89,341 Cost of Products Sold 90,553
76,969 Gross Profit 18,674 17.1 12,372 13.8 Operating Expenses:
Research and Development 2,966 2.7 2,212 2.5 Selling, General and
Administrative 7,673 7.0 6,398 7.1 Total Operating Expenses 10,639
9.7 8,610 9.6 Operating Income 8,035 7.4 3,762 4.2 Other Income
(Expense): Interest Expense (30) (0.0) (31) (0.0) Interest and
Other Income 211 0.1 178 0.2 Total Other Income (Expense) 181 0.1
147 0.2 Earnings before Taxes on Income 8,216 7.5 3,909 4.4 Taxes
on Income 3,223 2.9 1,352 1.5 Net Earnings 4,993 4.6 2,557 2.9
Basic Net Earnings per Share 0.39 0.20 Diluted Net Earnings per
Share 0.38 0.20 Basic Weighted Average Common Shares Outstanding
12,829 12,492 Diluted Weighted Average Common Shares Outstanding
13,155 12,737 Spartan Motors, Inc. and Subsidiaries Condensed
Consolidated Statements of Operations Six Months Ended June 30,
2006 and 2005 June 30, 2006 June 30, 2005 $-000- % $-000- % Sales
212,893 178,242 Cost of Products Sold 177,451 154,136 Gross Profit
35,442 16.6 24,106 13.5 Operating Expenses: Research and
Development 5,811 2.7 4,466 2.5 Selling, General and Administrative
14,729 6.9 12,718 7.1 Total Operating Expenses 20,540 9.6 17,184
9.6 Operating Income 14,902 7.0 6,922 3.9 Other Income (Expense):
Interest Expense (86) (0.0) (77) (0.0) Interest and Other Income
515 0.2 340 0.1 Total Other Income (Expense) 429 0.2 263 0.1
Earnings before Taxes on Income 15,331 7.2 7,185 4.0 Taxes on
Income 5,857 2.7 2,582 1.4 Net Earnings 9,474 4.5 4,603 2.6 Basic
Net Earnings per Share 0.74 0.37 Diluted Net Earnings per Share
0.73 0.36 Basic Weighted Average Common Shares Outstanding 12,765
12,506 Diluted Weighted Average Common Shares Outstanding 12,970
12,760 Spartan Motors, Inc. and Subsidiaries Condensed Consolidated
Balance Sheets June 30, 2006 December 31, 2005 $-000 $-000 ASSETS
Current assets: Cash and cash equivalents $6,849 $9,702 Marketable
securities 1,988 Accounts receivable, net 54,991 37,017 Inventories
50,905 44,265 Deferred income tax assets 3,745 3,745 Taxes
receivable 464 990 Other current assets 6,031 1,949 Total current
assets 122,985 99,656 Property, plant and equipment, net 19,716
18,478 Goodwill 4,543 4,543 Other assets 556 531 Total assets
$147,800 $123,208 LIABILITIES AND SHAREHOLDERS' EQUITY Current
liabilities: Accounts payable $31,659 $20,746 Accrued warranty
4,719 4,503 Accrued compensation and related taxes 4,589 4,241
Accrued vacation 1,401 1,189 Deposits from customers 11,823 13,640
Other current liabilities and accrued expenses 5,389 4,608 Current
portion of long-term debt 54 53 Total current liabilities 59,634
48,980 Long-term debt, less current portion 1,290 1,317 Deferred
income tax liabilities 309 309 Shareholders' equity: Preferred
stock -- -- Common stock 133 126 Additional paid in capital 42,941
37,040 Retained earnings 43,493 35,448 Accumulated other
comprehensive loss -- (12) Total shareholders' equity 86,567 72,602
Total liabilities and shareholders' equity $147,800 $123,208
DATASOURCE: Spartan Motors, Inc. CONTACT: John Sztykiel, CEO, or
Jim Knapp, CFO, of Spartan Motors, Inc., +1-517-543-6400; or Ryan
McGrath, , or Jeff Lambert of Lambert, Edwards & Associates,
Inc., +1-616-233-0500, for Spartan Motors, Inc. Web site:
http://www.spartanmotors.com/
http://www.spartanmotors.com/webcasts.asp
Copyright
Spartan Motors (NASDAQ:SPAR)
Gráfica de Acción Histórica
De Jun 2024 a Jul 2024
Spartan Motors (NASDAQ:SPAR)
Gráfica de Acción Histórica
De Jul 2023 a Jul 2024