CHARLOTTE, Mich., Feb. 11, 2014 /PRNewswire/ -- Spartan Motors,
Inc. (NASDAQ: SPAR) today reported its results for the fourth
quarter and full year 2013.
Fourth Quarter 2013 Overview
For the fourth quarter of
2013 compared to the fourth quarter of 2012:
- Net sales of $126.5 million,
up 1.6%
- Gross margin of 11.8% of sales versus 10.6%
- Reach achieved a positive gross margin in Q4 2013
- Goodwill impairment in Emergency Response segment of
$4.9 million booked during
quarter
- Operating loss of $4.2 million
compared to an operating loss of $2.8
million
- Delivery & Service (DSV) operating profit of
$0.4 million versus operating loss of
$2.1 million
- Emergency Response (ER) operating loss of $6.3 million versus profit of $0.3 million
- Specialty Vehicles (SV) earned operating profit of
$3.2 million compared to $1.2 million
- Fourth quarter and full year 2013 results include
adjustments that increased income tax expense by $0.7 million related to valuation of various
deferred tax assets recorded on our balance sheet.
- Net loss of $3.0 million, or
$0.09 per share, versus a net loss of
$2.5 million, or $0.07 per share
Full Year 2013 Overview
For the full year 2013
compared to the full year 2012:
- Revenue of $469.5 million
versus $470.6 million, down
0.2%
- Cash balance increased to $30.7
million, up 41.5%
- Order intake of $536.3 million
in 2013, up 9.1%
- Consolidated order backlog of $242.7
million, up 49.8%
- Began production of 1,900-unit Reach order for
FedEx
- Received order from Peru
for 70 custom fire trucks worth over $20
million
- Successfully moved half of DSV's production to Bristol facility while maintaining
production
- DSV profitable in second half of 2013 with operating profit
of $1.7 million versus first half
operating loss of ($5.6)
million
- SV revenue increased 25% while operating income rose
356%
- Operating loss of $8.2 million
versus an operating loss of $2.6
million
- Net loss of $6.0 million, or
$0.18 per share, compared to a net
loss of $2.5 million, or $0.07 per share
John Sztykiel, Spartan's Chief
Executive Officer, stated, "We made a great deal of progress during
2013 in improving the operating performance of our Delivery &
Service (DSV) and Specialty Vehicles (SV) businesses. In the
first quarter of 2013, we moved half of DSV's business - walk-in
vans - to Bristol, Ind., while
maintaining production. The launch process presented more
obstacles than we anticipated, resulting in an operating loss of
$5.6 million for the first half of
2013. During the second half of the year, we returned DSV to
profitability, posting operating income of $1.7 million and brought the Reach program closer
to profitability in the fourth quarter. The SV segment was a
star performer in 2013 and its profitability presents a sharp
contrast to that reported in the last two years.
Unfortunately, the progress we made in these two segments was
overshadowed by unsatisfactory performance in the Emergency
Response segment, specifically in the Emergency Response Vehicles
(ERV) unit.
"ERV performed well in terms of generating orders and
backlog. In 2013, ERV received orders for 393 new fire trucks
worth $151.1 million, an increase of
101 trucks and $53.1 million from
2012. But in terms of building quality trucks on time and at
a profit, ERV's performance in 2013 was a major
disappointment. As a result, ERV was unable to convert order
backlog into revenue at the rate required to generate an operating
profit."
Continued Sztykiel, "We are committed to ERV and ensuring it
reaches its full potential as a positive financial contributor to
Spartan. As we have demonstrated with our other businesses, we know
how to turn around underperforming operations. We have intensified
our focus on ERV, made management changes to streamline the
structure and are leveraging our manufacturing base to increase
capacity and improve financial performance. By executing this
plan, we expect to make significant improvements to the ER
segment's financial performance during 2014."
Fourth Quarter and Full Year 2013 Segment Results:
Delivery & Service Vehicles (DSV)
(In
thousands)
|
|
|
Fourth
Quarter
|
|
|
Full
Year
|
|
|
|
|
2013
|
2012
|
%
Change
|
2013
|
2012
|
%
Change
|
Delivery &
Service Vehicles
|
|
|
|
|
|
|
|
Vehicles
|
|
$
43,017
|
$
46,496
|
-7.5%
|
$ 157,291
|
$ 150,255
|
4.7%
|
|
Aftermarket &
Service
|
5,195
|
6,109
|
-15.0%
|
21,918
|
57,975
|
-62.2%
|
|
Total
revenue
|
$
48,212
|
$
52,605
|
-8.4%
|
$ 179,209
|
$ 208,230
|
-13.9%
|
|
Operating
income/(loss)
|
$
391
|
$
(2,122)
|
NMF
|
$
(3,942)
|
$
6,035
|
NMF
|
|
|
|
|
|
|
|
|
|
|
- The 7.5% decline in vehicle sales in the fourth quarter of 2013
compared to the fourth quarter of 2012 was a result of slowing
demand for truck bodies and delayed shipments of the Reach due to a
supplier capacity problem. DSV held shipments of the Reach during
the quarter while a new supplier worked to increase component
production. Despite this delay, during the fourth quarter of 2013,
DSV shipped 508 Reach vehicles, bringing the total for the calendar
year to 1,216 units. Sales of aftermarket parts and field service
solutions declined to $5.2 million in
the fourth quarter of 2013, in part due to delayed orders from a
major customer for SafeLoad systems.
- Fourth quarter profitability was favorably impacted by a richer
product mix as well as operating efficiency gains at the
Bristol facility. Partially
offsetting these improvements was a charge of $0.3 million stemming from a reduction in the
carrying value of the Company's remaining facility held for sale in
Wakarusa, Ind.
- For the year, the downturn in DSV reported revenue was due to
lower aftermarket and field service sales in 2013 caused by the end
of a large field service program in mid-2012. Vehicle sales
increased for the year despite lower walk-in van sales due to the
move of production to Bristol. The
increase in sales was due to the shipment of 1,216 Reach vehicles
during 2013 more than offsetting the decline in other vehicle
sales.
- The first quarter 2013 relocation of walk-in van production to
the Bristol facility also had a
negative impact on profitability, especially during the first half
of the year. In the first half of 2013, DSV incurred $1.0 million of move-related costs, plus
$2.0 million in additional labor.
These costs, the revenue disruption resulting from the Bristol move, and losses from Reach sales led
to an operating loss of $5.6 million
during the first half of 2013. As the Bristol launch progressed and walk-in van
production increased, along with reductions in Reach manufacturing
and material costs, DSV returned to profitability during the second
half of the year, posting operating earnings of $1.7 million including a fair value adjustment to
real estate of $0.3 million.
- For 2013, Reach losses totaled approximately $3.7 million, but had been reduced to
approximately $0.6 million in the
fourth quarter of 2013. The Company anticipates an order from a
fleet customer for several hundred Reach vehicles to be produced
during the second half of 2014. Management expects this order to be
profitable due to more favorable pricing and further reductions in
material costs.
- Backlog at the end of Q4 2013 totaled $73.1 million, up from $39.7 million at the end of Q4 2012. Backlog
declined sequentially from $87.5
million at September 30, 2013,
which is typical for the DSV segment as vehicle deliveries are
lower toward the end of the calendar year.
Emergency Response (ER)
(In
thousands)
|
|
|
Fourth
Quarter
|
|
|
Full
Year
|
|
|
|
|
2013
|
2012
|
%
Change
|
2013
|
2012
|
%
Change
|
Emergency
Response
|
|
|
|
|
|
|
|
ERC
|
|
$
21,562
|
$
21,298
|
1.2%
|
$
83,399
|
$
83,576
|
-0.2%
|
|
ERV
|
|
21,891
|
23,633
|
-7.4%
|
81,688
|
78,744
|
3.7%
|
|
Total
revenue
|
$
43,453
|
$
44,931
|
-3.3%
|
$165,087
|
$162,320
|
1.7%
|
|
Operating
income/(loss)
|
$
(6,266)
|
$
306
|
NMF
|
$
(7,664)
|
$
(2,951)
|
NMF
|
|
|
|
|
|
|
|
|
|
|
- ER segment revenue declined 3.3% to $43.5 million in the fourth quarter of 2013. The
revenue decline resulted from lower ERV sales in the fourth quarter
of 2013 compared to 2012 due to reduced production rates at ERV's
Brandon, S.D. production facility.
Production in the fourth quarter of 2013 was reduced as management
worked to eliminate production bottlenecks and improve quality at
Brandon.
- The ER segment's fourth quarter operating loss of $6.3 million included an ERV goodwill impairment
charge of $4.9 million and an
additional $0.4 million warranty
accrual. While the ERC unit made a significant contribution to
segment profitability during the quarter, ERV's performance
deteriorated in the fourth quarter of 2013, resulting in an
operating loss for the ER segment.
- Revenue for 2013 increased 1.7% to $165.1 million from $162.3
million in 2012. Revenue growth was driven by higher ERV
production through the first three quarters of 2013. Demand
increased in North America and
export markets due to the strength of the Spartan brand, innovative
products and aggressive marketing efforts.
- For 2013, ER posted a full year operating loss of $7.7 million, including the goodwill impairment
charge of $4.9 million and warranty
accrual of $0.7 million. The ER
segment's operating loss for 2013 was attributable to poor
performance at ERV, while ERC was profitable for the year. To
address ERV's operational issues, management has begun to implement
a turnaround plan that includes these steps:
- Increase pricing as needed to capture costs of options and
additional engineering – process began in 2013
- Leverage Spartan's manufacturing base – run Brandon at optimal rate (complex units),
supplement with Charlotte
(International units) and Ocala (simple custom and commercial
units)
- Enhance operational controls and processes to reduce cost
- Stabilize workforce to concentrate on quality
- Management changes – ER leadership to report to Spartan CEO
John Sztykiel on interim basis
- Backlog increased to $156.5
million at December 31, 2013,
compared to $95.8 million at
December 31, 2012. Growth in
backlog is due to higher order intake combined with production
constraints at our Brandon, S.D.
facility.
Specialty Vehicles (SV)
(In
thousands)
|
|
|
Fourth
Quarter
|
|
|
Full
Year
|
|
|
|
|
2013
|
2012
|
%
Change
|
2013
|
2012
|
%
Change
|
Specialty
Vehicles
|
|
|
|
|
|
|
|
|
Motorhome &
Bus
|
$
28,107
|
$
20,413
|
37.7%
|
$
90,008
|
$
72,127
|
24.8%
|
|
Parts and
Assemblies
|
4,529
|
5,524
|
-18.0%
|
24,556
|
20,474
|
19.9%
|
|
Other Specialty
Vehicle
|
2,153
|
1,016
|
111.9%
|
10,678
|
7,426
|
43.8%
|
|
Total
revenue
|
$
34,789
|
$
26.953
|
29.1%
|
$ 125,242
|
$ 100,027
|
25.2%
|
|
Operating
income
|
$
3,189
|
$
1,204
|
164.9%
|
$
10,030
|
$
2,198
|
356.3%
|
- The SV segment posted improved performance compared to the
prior year. Segment revenue for the fourth quarter of 2013 rose
29.1% to $34.8 million compared to
$27.0 million in the fourth quarter
of 2012. Sales of motorhome chassis climbed 37.7% to $28.1 million in Q4 2013 from $20.4 million a year ago as a major customer
gained market share. Production of Isuzu N-series trucks was higher
in the fourth quarter of 2013 compared to the prior year, largely
driving a year-over-year revenue increase of 111.9%. This offset a
Q4 2013 decline in Aftermarket Parts & Assemblies revenue
compared to the prior year, primarily due to lower commercial
demand.
- Operating income increased to $3.2
million in Q4 2013 from $1.2
million in Q4 2012. Most of the increase in operating income
was due to higher motorhome and bus chassis revenue as well as more
favorable material and manufacturing costs compared to the fourth
quarter of 2012.
- Results for the full year reflected higher sales in all
business with motorhome chassis contributing the bulk of the growth
in dollar terms. Isuzu N-series truck production grew significantly
compared to 2012 and combined with $2.8
million in revenue growth in specialty & defense
vehicles.
- Operating income increased to $10.0
million in 2013 compared to $2.2
million in 2012 and an operating loss of $2.3 million in 2011. The improvement in
operating profit is due to concerted efforts to reduce material and
manufacturing cost, plus revenue growth leveraging fixed
costs.
- Backlog at the end of 2013 totaled $13.0
million versus $26.6 million
at the end of 2012. The decline from the prior year was due to the
absence of specialty defense orders at the end of 2013 and a drop
in order backlog for aftermarket parts and accessories during late
2013.
Financial Summary and 2014 Outlook
Lori Wade, Spartan's Interim
Chief Financial Officer, stated regarding Q4 2013 results, "Our
fourth quarter results included a few non-recurring items that
warrant clarification. First, we incurred a $4.9 million non-cash impairment charge for
goodwill related to Emergency Response acquisitions made in
previous years. Second, we wrote down the value of our
remaining building in Wakarusa to
its estimated fair value, resulting in a non-cash charge of
$0.3 million. Finally, we
reported incremental tax expense of $0.7
million related to valuation of various deferred tax assets
recorded on our balance sheet. Note that the operating loss
of $4.2 million includes the
$5.2 million in non-cash charges I
mentioned, while the net loss of $3.0
million also includes $0.7
million of tax valuation adjustments."
Wade commented on Spartan's outlook for 2014, stating,
"Management expects 2014 revenue of approximately $500 - $525 million due to the following factors,
among others:
- 2013 order intake of $536.3
million and backlog of $242.7
million at December 31,
2013
- DSV will have a full year of production at Bristol in addition to expected recovery in
truck body market
- Reach shipments totaling approximately $14 million in the first half of 2014
- Expansion of ER capacity in Ocala
- A $20+ million fire truck order from Peru to be produced in Charlotte, Mich. during 2014
- Strong motorhome and bus chassis demand
- Reduced demand for defense- related aftermarket parts
"Both SV and DSV are expected to be profitable during 2014, but
SV's operating income is expected to be lower than in 2013 due to
planned investments to develop new motorhome chassis and expand its
distribution network. ER is projected to generate operating losses
in the first half of 2014, but be profitable in the second half and
for the year as a whole. As a result we expect Spartan to report an
operating loss in the first quarter of 2014, with a modest
operating loss in the second quarter. We expect Spartan to be
profitable in the second half of 2014 and for the year. Operating
income as a percentage of sales is projected to be in the range of
1.0 – 1.5% for the year. Expectations for operating income margins
are heavily dependent on the progress we make in improving ERV's
performance. As we make progress in these efforts, we plan to
provide updates on our projections for the year. "
Business Summary
Sztykiel commented, "Spartan enters 2014 with great brands and
innovative products, as reflected in our order intake and backlog.
We demonstrated operational improvement in DSV with approximately
$6.7 million in Bristol launch and Reach-related costs now
behind us. The Bristol launch
process has been completed, operating efficiency is greatly
improved and the Reach should become profitable in 2014. In
SV, particularly our motorhome chassis business, we have turned the
business around and are now on offense, developing new chassis to
expand our presence in more market segments. DSV and SV both
enter 2014 in a stronger position than at the beginning of 2013 and
are on an upward trajectory."
"ERV is our remaining operational challenge and its results are
unacceptable. We absolutely can fix the operational issues in our
ERV group. First, some parts are performing very well. Products,
sales, marketing, and distribution are currently capable of
generating revenue of $200 million
per year, including chassis. As we outlined earlier, the plan to
fix the operational portion will be methodical, focused and
effective. During the fourth quarter the pace of change accelerated
to achieve profitability. The good news is the intensified focus is
already showing results - for January ERV achieved its production
targets at Brandon. We expect ERV to show sequential
improvement each quarter over 2013 but profitability will be a late
Q4 2014 event and that is still a challenge as we have a
substantial amount of ground to make up. We will fix the
business first and improved financial results will follow, just as
we did with DSV and SV. "
"In closing, when it comes to ERV, I will quote the motto of one
of our larger shareholders, 'Slow and steady wins the race.'
We will do it right and over time deliver the shareholder value
everyone expects. As we execute our DRIVE strategy across all
of our businesses, 2014 will be an important year for Spartan's
growth and long-term success," concluded Sztykiel.
D.R.I.V.E. is Spartan's operating strategy based on five
tenets:
- Diversified Growth
- Redefining New Technologies
- Integrated Operational Improvement
- Vibrant Culture
- Extend Our Core … Spartan Chassis
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 1,700 associates at
facilities in Michigan,
Pennsylvania, South Dakota, Indiana, Florida and Texas. Spartan reported sales of $470 million in 2013 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 Statements of Operations
(In thousands, except per share data)
(Unaudited)
|
|
Three Months Ended
December 31,
|
|
|
2013
|
|
% of
sales
|
|
2012
|
|
% of
sales
|
Sales
|
$
126,454
|
|
|
|
$
124,489
|
|
|
Cost of products
sold
|
111,494
|
|
88.2
|
|
110,583
|
|
88.8
|
Restructuring
charges
|
-
|
|
-
|
|
754
|
|
0.6
|
Gross
profit
|
14,960
|
|
11.8
|
|
13,152
|
|
10.6
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Research and
development
|
2,487
|
|
2.0
|
|
2,971
|
|
2.4
|
|
Selling, general and
administrative
|
11,867
|
|
9.4
|
|
12,319
|
|
9.9
|
|
Goodwill
impairment
|
4,855
|
|
3.8
|
|
-
|
|
-
|
|
Restructuring
charges
|
-
|
|
-
|
|
643
|
|
0.5
|
Total operating
expenses
|
19,209
|
|
15.2
|
|
15,933
|
|
12.8
|
|
|
|
|
|
|
|
|
|
Operating
loss
|
(4,249)
|
|
(3.4)
|
|
(2,781)
|
|
(2.2)
|
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
Interest
expense
|
(76)
|
|
(0.1)
|
|
(81)
|
|
(0.1)
|
|
Interest and other
income
|
226
|
|
0.2
|
|
134
|
|
0.1
|
Total other
income
|
150
|
|
0.1
|
|
53
|
|
0.0
|
|
|
|
|
|
|
|
|
|
Loss before
taxes
|
(4,099)
|
|
(3.2)
|
|
(2,728)
|
|
(2.2)
|
|
|
|
|
|
|
|
|
|
Taxes
|
(1,131)
|
|
(0.9)
|
|
(262)
|
|
(0.2)
|
|
|
|
|
|
|
|
|
|
Net loss including
non-controlling interest
|
(2,968)
|
|
(2.3)
|
|
(2,466)
|
|
(2.0)
|
|
|
|
|
|
|
|
|
|
Less: Net
income attributable to non-controlling interest
|
2
|
|
-
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
Net loss
attributable to Spartan Motors, Inc.
|
(2,970)
|
|
(2.3)
|
|
(2,466)
|
|
(2.0)
|
|
|
|
|
|
|
|
|
|
Basic and diluted
net loss per share
|
$
(0.09)
|
|
|
|
$
(0.07)
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
weighted average common shares outstanding
|
33,695
|
|
|
|
33,251
|
|
|
|
|
|
|
|
|
|
|
|
Spartan Motors, Inc. and Subsidiaries
Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
|
|
|
Year Ended
December 31,
|
|
|
|
2013
|
|
% of
sales
|
|
2012
|
|
% of
sales
|
Sales
|
|
$
469,538
|
|
|
|
$
470,577
|
|
|
Cost of products
sold
|
|
416,475
|
|
88.7
|
|
405,455
|
|
86.2
|
Restructuring
charges
|
|
-
|
|
-
|
|
6,514
|
|
1.4
|
Gross
profit
|
|
53,063
|
|
11.3
|
|
58,608
|
|
12.5
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
Research and
development
|
|
10,911
|
|
2.3
|
|
12,873
|
|
2.7
|
|
Selling, general and
administrative
|
|
45,495
|
|
9.7
|
|
45,707
|
|
9.7
|
|
Goodwill
impairment
|
|
4,855
|
|
1.0
|
|
-
|
|
-
|
|
Restructuring
charges
|
|
-
|
|
-
|
|
2,619
|
|
0.6
|
Total operating
expenses
|
|
61,261
|
|
13.0
|
|
61,199
|
|
13.0
|
|
|
|
|
|
|
|
|
|
|
Operating
loss
|
|
(8,198)
|
|
(1.7)
|
|
(2,591)
|
|
(0.6)
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
(311)
|
|
(0.1)
|
|
(335)
|
|
(0.1)
|
|
Interest and other
income
|
|
659
|
|
0.1
|
|
569
|
|
0.1
|
Total other
income
|
|
348
|
|
0.1
|
|
234
|
|
0.0
|
|
|
|
|
|
|
|
|
|
|
Loss before
taxes
|
|
(7,850)
|
|
(1.7)
|
|
(2,357)
|
|
(0.5)
|
|
|
|
|
|
|
|
|
|
|
Taxes
|
|
(1,881)
|
|
(0.4)
|
|
100
|
|
0.0
|
|
|
|
|
|
|
|
|
|
|
Net loss including
non-controlling interest
|
|
(5,969)
|
|
(1.3)
|
|
(2,457)
|
|
(0.5)
|
|
|
|
|
|
|
|
|
|
|
Less: Net
income attributable to non-controlling interest
|
|
2
|
|
-
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Net loss
attributable to Spartan Motors, Inc.
|
|
(5,971)
|
|
(1.3)
|
|
(2,457)
|
|
(0.5)
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
net loss per share
|
|
$
(0.18)
|
|
|
|
$
(0.07)
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
weighted average common shares outstanding
|
|
33,550
|
|
|
|
33,165
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Spartan Motors, Inc. and Subsidiaries
Consolidated Balance Sheets
(In thousands, except par value)
|
(Unaudited)
|
|
|
|
December
31,
|
|
December
31,
|
|
2013
|
|
2012
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
30,707
|
|
$
21,748
|
Accounts receivable,
less allowance of $769 and $1,021
|
47,560
|
|
47,139
|
Inventories
|
81,419
|
|
67,591
|
Deferred income tax
assets
|
8,206
|
|
6,291
|
Income taxes
receivable
|
1,641
|
|
3,011
|
Assets held for
sale
|
373
|
|
716
|
Other current
assets
|
2,291
|
|
6,027
|
Total current
assets
|
172,197
|
|
152,523
|
|
|
|
|
Property, plant
and equipment, net
|
54,278
|
|
59,122
|
Goodwill
|
15,961
|
|
20,815
|
Intangible assets,
net
|
10,094
|
|
11,052
|
Other
assets
|
2,222
|
|
1,639
|
TOTAL
ASSETS
|
$
254,752
|
|
$
245,151
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
30,525
|
|
$
23,000
|
Accrued
warranty
|
7,579
|
|
6,062
|
Accrued customer
rebates
|
2,190
|
|
2,299
|
Accrued compensation
and related taxes
|
6,440
|
|
7,748
|
Deposits from
customers
|
18,006
|
|
6,386
|
Other current
liabilities and accrued expenses
|
5,333
|
|
8,113
|
Current portion of
long-term debt
|
79
|
|
82
|
Total current
liabilities
|
70,152
|
|
53,690
|
|
|
|
|
Other non-current
liabilities
|
3,109
|
|
3,071
|
Long-term debt,
less current portion
|
5,261
|
|
5,207
|
Deferred income
tax liabilities
|
4,679
|
|
4,454
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
Preferred stock, no
par value: 2,000 shares authorized (none issued)
|
-
|
|
-
|
Common stock, $0.01
par value; 40,000 shares authorized; 34,210 and 33,862
outstanding
|
342
|
|
339
|
Additional paid in
capital
|
75,075
|
|
72,873
|
Retained
earnings
|
96,132
|
|
105,517
|
Total Spartan
Motors, Inc. shareholders' equity
|
171,549
|
|
178,729
|
Non-controlling
interest
|
2
|
|
-
|
Total
shareholders' equity
|
171,551
|
|
178,729
|
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY
|
$
254,752
|
|
$
245,151
|
|
|
|
|
Spartan Motors,
Inc. and Subsidiaries
|
Sales and Other
Financial Information by Business Segment
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31, 2013 (in thousands of dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business
Segments
|
|
|
|
|
|
|
Emergency
Response
|
|
Delivery &
Service Vehicles
|
|
Specialty
Vehicles
|
|
Other
|
|
Consolidated
|
|
|
|
|
|
|
|
|
|
|
|
Emergency Response
Chassis Sales
|
$
21,562
|
|
|
|
|
|
|
|
$
21,562
|
Emergency Response
Vehicle Sales
|
21,891
|
|
|
|
|
|
|
|
21,891
|
Utilimaster Vehicle
Sales
|
|
|
43,017
|
|
|
|
|
|
43,017
|
Motorhome Chassis
Sales
|
|
|
|
|
28,107
|
|
|
|
28,107
|
Other Specialty
Vehicles
|
|
|
|
|
2,153
|
|
|
|
2,153
|
Aftermarket Parts and
Assemblies
|
|
|
5,195
|
|
4,529
|
|
|
|
9,724
|
|
|
|
|
|
|
|
|
|
|
|
Total
Sales
|
|
$
43,453
|
|
$
48,212
|
|
$ 34,789
|
|
$
-
|
|
$
126,454
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
Amortization Expense
|
$
307
|
|
$
1,067
|
|
$
311
|
|
$
611
|
|
$
2,296
|
Operating Income
(Loss)
|
(6,266)
|
|
391
|
|
3,189
|
|
(1,563)
|
|
(4,249)
|
Segment
Assets
|
|
80,540
|
|
78,654
|
|
24,399
|
|
71,159
|
|
254,752
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31, 2013 (in thousands of dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business
Segments
|
|
|
|
|
|
|
Emergency
Response
|
|
Delivery &
Service Vehicles
|
|
Specialty
Vehicles
|
|
Other
|
|
Consolidated
|
|
|
|
|
|
|
|
|
|
|
|
Emergency Response
Chassis Sales
|
$
83,399
|
|
|
|
|
|
|
|
$
83,399
|
Emergency Response
Body Sales
|
81,688
|
|
|
|
|
|
|
|
81,688
|
Utilimaster Vehicle
Sales
|
|
|
$
157,291
|
|
|
|
|
|
157,291
|
Motorhome Chassis
Sales
|
|
|
|
|
$
90,008
|
|
|
|
90,008
|
Other Specialty
Vehicles
|
|
|
|
|
10,678
|
|
|
|
10,678
|
Aftermarket Parts and
Assemblies
|
|
|
21,918
|
|
24,556
|
|
|
|
46,474
|
|
|
|
|
|
|
|
|
|
|
|
Total
Sales
|
|
$
165,087
|
|
$
179,209
|
|
$125,242
|
|
$
-
|
|
$
469,538
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
Amortization Expense
|
$
1,390
|
|
$
3,781
|
|
$
1,498
|
|
$
2,569
|
|
$
9,238
|
Operating Income
(Loss)
|
(7,664)
|
|
(3,942)
|
|
10,030
|
|
(6,622)
|
|
(8,198)
|
Segment
Assets
|
|
80,540
|
|
78,654
|
|
24,399
|
|
71,159
|
|
254,752
|
Spartan Motors,
Inc. and Subsidiaries
|
|
Sales and Other
Financial Information by Business Segment
|
|
Unaudited
|
|
Period End Backlog
(amounts in thousands of dollars)
|
|
|
|
|
|
|
|
|
Dec. 31,
2013
|
|
Sept. 30,
2013
|
|
June 30,
2013
|
|
March 31,
2013
|
|
Dec. 31,
2012
|
|
|
|
|
|
|
|
|
|
|
Emergency Response
Chassis*
|
$ 25,598
|
|
$ 27,137
|
|
$ 28,388
|
|
$ 34,053
|
|
$
37,005
|
Emergency Response
Vehicles*
|
130,891
|
|
92,556
|
|
86,760
|
|
70,023
|
|
58,764
|
Total Emergency
Response Backlog
|
156,489
|
|
119,693
|
|
115,148
|
|
104,076
|
|
95,769
|
|
|
|
|
|
|
|
|
|
|
Motorhome Chassis
*
|
11,370
|
|
22,104
|
|
14,166
|
|
13,736
|
|
13,453
|
Other
Vehicles*
|
-
|
|
-
|
|
-
|
|
3,056
|
|
3,968
|
Aftermarket Parts and
Assemblies
|
1,654
|
|
2,635
|
|
3,437
|
|
7,319
|
|
9,179
|
Total Specialty
Vehicles Backlog
|
13,024
|
|
24,739
|
|
17,603
|
|
24,111
|
|
26,600
|
|
|
|
|
|
|
|
|
|
|
Delivery & Service
Vehicles *
|
73,148
|
|
87,492
|
|
100,399
|
|
100,394
|
|
39,656
|
Total
Backlog
|
$242,661
|
|
$231,924
|
|
$233,150
|
|
$228,581
|
|
$162,025
|
|
|
|
|
|
|
|
|
|
|
* Anticipated time to
fill backlog orders at December 31, 2013; 4 months or less for
emergency response chassis; 15 months or less for emergency
response vehicles; 2 months or less for motorhome chassis; 5 months
or less for delivery and service vehicles; and 1 month or less for
other products.
|
|
|
|
|
|
SOURCE Spartan Motors, Inc.