CHARLOTTE, Mich., May 3, 2018 /PRNewswire/ -- Spartan Motors, Inc.
(NASDAQ: SPAR) ("Spartan" or the "Company"), a global leader in
specialty chassis and vehicle design, manufacturing and assembly,
today reported operating results for the first quarter ending
March 31, 2018.
First Quarter 2018 Highlights
For the first quarter of 2018 compared to the first quarter of
2017:
- Sales increased $6.0 million,
or 3.6%, to $173.0 million from
$167.1 million
- Gross profit margin improved 300 basis points to 12.8% of
sales from 9.8% of sales
- Net income improved $5.3
million, or 482.0%, to $4.2
million, or $0.12 per share,
from a loss of $1.1 million, or
$0.03 per share. The previous year
included $2.6 million of acquisition
and restructuring related expenses.
- Adjusted EBITDA increased 33.8% to $5.6 million, or 3.2% of sales, from $4.2 million, or 2.5% of sales
- Adjusted net income improved $2.0
million, or 158.3% to $3.3
million, or $0.09 per share,
from $1.3 million, or $0.04 per share
- Backlog increased $203.3
million to $554.6 million at
March 31, 2018 from $351.3 million at March
31, 2017
Notes: As of January 1, 2018,
the Company has adopted the new Revenue Recognition Standard ("ASC
606") using the modified retrospective transition method. For more
details regarding ASC 606 and its impact on the Company's financial
results, see the Company's quarterly report on Form 10-Q for the
quarter ended March 31, 2018.
"We really hit the ground running in 2018, as we experienced
another strong, consecutive quarter of profitable growth," said
Daryl Adams, President and Chief
Executive Officer. "The robust start to the year was driven
by the ongoing efforts of our entire team to generate continued
operational improvement as well as strong growth in our core
markets."
Fleet Vehicles and Services (FVS)
FVS segment
sales increased 10.7% to $59.7
million from $53.9 million.
The revenue increase was primarily due to sales mix and higher
Reach vehicle and up fit center volumes.
Adjusted EBITDA decreased $1.7
million to $4.6 million, or
7.7% of sales, from $6.2 million, or
11.6% of sales, a year ago. The decrease is primarily due to
start-up costs associated with the new USPS truck body plant in
Ephrata, PA., as well as sales
mix.
The segment backlog at March 31,
2018, totaled $335.3 million,
up 194.2%, compared to $114.0 million
at March 31, 2017 due to the
previously announced multi-year contract with the United States
Postal Service (USPS).
Emergency Response (ER)
ER segment sales
decreased $13.5 million to
$66.7 million, or 16.8%, from
$80.2 million. Included in the
prior year sales is $15.1 million of
revenue that resulted from the timing of revenue relating to the
Smeal acquisition. Excluding these sales, revenue increased
$1.6 million, or 2.5%, over the prior
year, reflecting increased production of complete fire apparatus
and custom cab and chassis.
Adjusted EBITDA improved $2.6
million to a profit of $1.2
million, or 1.9% of sales, from a loss of $1.3 million a year ago. The improvement
was primarily the result of better pricing and operational
improvements.
The segment backlog at March 31,
2018 totaled $189.6 million,
down 11.6%, compared to $214.5
million at March 31,
2017.
Specialty Chassis & Vehicles (SCV)
SCV
segment sales increased 46.4% to $48.2
million from $33.0 million a
year ago. Revenues were driven mainly by a $13.5 million increase in luxury motor coach
chassis sales, resulting from market share gains and continued
strong industry demand.
Adjusted EBITDA increased $1.6
million to $3.1 million, or
6.5% of sales, from $1.5 million, or
4.7% of sales, a year ago, mainly due to strong momentum in
motorhome chassis and operational improvements.
The segment backlog at March 31,
2018 totaled $29.7 million, up
29.8%, compared to $22.8 million at
March 31, 2017.
Raising 2018 Net Income, EPS and Adjusted EPS
Guidance
The Company's first quarter results reflect
strong topline performance on a comparable basis and continued
operational improvements from all three business segments.
Results for the first quarter include a $1.4
million, or $0.04 per share,
tax benefit related to the appreciation in value of equity-based
compensation that vested during the quarter. As a result, the
effective tax rate for 2018 is expected to be approximately
23%.
Looking ahead to the remainder of the year, the Company
reaffirms its previous revenue and adjusted EBITDA guidance, and is
increasing its net income, EPS and adjusted EPS guidance for this
tax benefit. The 2018 outlook is now expected to be as
follows:
- Revenue to be in the range of $790.0 - $815.0
million, unchanged
- Net income of $20.2 -
$22.4 million, up from previous
guidance of $18.8 - $21.0 million
- Adjusted EBITDA of $39.0 -
$42.0 million, unchanged
- Effective tax rate of approximately 23%, down from previous
guidance of 28%
- Earnings per share of $0.58 -
$0.64, up from previous guidance of
$0.54 - $0.60, assuming approximately 35.3 million shares
outstanding
- Adjusted earnings per share of $0.60 - $0.66, up
from previous guidance of $0.56 -
$0.62
"Following our transition year, we remain clearly on the path of
profitable growth. Each segment of Spartan's business posted
strong profitability on an adjusted EBITDA basis. These solid
results create a positive, winning environment that spreads through
our entire team, as we all work together to drive enhanced
performance, greater efficiency and ultimately stronger bottom line
results for the Company and its shareholders," Adams
concluded.
Conference Call, Webcast, Investor Presentation and
Investor Information
Spartan Motors will host a
conference call for analysts and portfolio managers at 10 a.m. EDT today to discuss these results and
current business trends. The conference call and webcast will
be available via:
Webcast: www.spartanmotors.com (Click on "Investor Relations"
then "Webcasts")
Conference Call: 1-844-868-8845 (domestic) or 412-317-6591
(international); passcode: 10119535
For more information about Spartan, please visit
www.spartanmotors.com.
About Spartan Motors
Spartan Motors, Inc. is a leading
designer, engineer, manufacturer and marketer of a broad range of
specialty vehicles, specialty chassis, vehicle bodies and parts for
the fleet and delivery, recreational vehicle (RV), emergency
response, defense forces and contract assembly (light/medium duty
truck) markets. The Company's brand names — Spartan Motors, Spartan
Specialty Vehicles, Spartan Emergency Response, Spartan Parts and
Accessories, Smeal and its family of brands, including Ladder
Tower™ and UST®; and Utilimaster®, a Spartan Motors Company — are
known for quality, durability, performance, customer service and
first-to-market innovation. The Company employs approximately 2,300
associates, and operates facilities in Michigan, Indiana, Pennsylvania, Missouri, Wisconsin, Nebraska, South
Dakota; Saltillo, Mexico;
and Lima, Peru. Spartan reported
sales of $707 million in 2017. 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
|
Condensed
Consolidated Balance Sheets
|
(In thousands, except
par value)
|
(Unaudited)
|
|
|
March
31,
2018
|
|
December 31,
2017
|
|
|
|
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
29,407
|
|
$
33,523
|
Accounts receivable,
less allowance of $148 and $139
|
83,388
|
|
83,147
|
Contract
assets
|
41,051
|
|
-
|
Inventories
|
48,517
|
|
77,692
|
Other current
assets
|
4,822
|
|
4,425
|
Total current
assets
|
207,185
|
|
198,787
|
|
|
|
|
Property, plant
and equipment, net
|
54,966
|
|
55,177
|
Goodwill
|
27,417
|
|
27,417
|
Intangible assets,
net
|
9,223
|
|
9,427
|
Other
assets
|
3,097
|
|
3,072
|
Net deferred tax
asset
|
6,312
|
|
7,284
|
TOTAL
ASSETS
|
$
308,200
|
|
$
301,164
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
49,978
|
|
$
40,643
|
Accrued
warranty
|
17,358
|
|
18,268
|
Accrued compensation
and related taxes
|
9,008
|
|
13,264
|
Deposits from
customers
|
20,349
|
|
25,422
|
Other current
liabilities and accrued expenses
|
13,727
|
|
12,071
|
Current portion of
long-term debt
|
59
|
|
64
|
Total current
liabilities
|
110,479
|
|
109,732
|
|
|
|
|
Other non-current
liabilities
|
5,353
|
|
5,238
|
Long-term debt,
less current portion
|
17,911
|
|
17,925
|
Total
liabilities
|
133,743
|
|
132,895
|
Commitments and
contingencies
|
|
|
|
Shareholders'
equity:
|
|
|
|
Preferred stock, no
par value: 2,000 shares authorized (none issued)
|
-
|
|
-
|
Common stock, $0.01
par value; 80,000 shares authorized; 35,291 and 35,097
outstanding
|
353
|
|
351
|
Additional paid in
capital
|
78,045
|
|
79,721
|
Retained
earnings
|
96,717
|
|
88,855
|
Total Spartan
Motors, Inc. shareholders' equity
|
175,115
|
|
168,927
|
Non-controlling interest
|
(658)
|
|
(658)
|
Total shareholders'
equity
|
174,457
|
|
168,269
|
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY
|
$
308,200
|
|
$
301,164
|
|
|
|
|
Spartan Motors,
Inc. and Subsidiaries
|
Condensed
Consolidated Statements of Operations
|
(In thousands, except
per share data)
|
(Unaudited)
|
|
|
|
Three Months Ended
March 31,
|
|
|
2018
|
|
2017
|
Sales
|
$
173,038
|
|
$
167,075
|
Cost of products
sold
|
150,880
|
|
150,531
|
Restructuring
charges
|
-
|
|
150
|
Gross
profit
|
22,158
|
|
16,394
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
Research and
development
|
1,389
|
|
2,142
|
|
Selling, general and
administrative
|
17,873
|
|
14,602
|
|
Restructuring
charges
|
20
|
|
492
|
Total operating
expenses
|
19,282
|
|
17,236
|
|
|
|
|
|
Operating income
(loss)
|
2,876
|
|
(842)
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
Interest
expense
|
(323)
|
|
(264)
|
|
Interest and other
income
|
1,593
|
|
90
|
Total other income
(expense)
|
1,270
|
|
(174)
|
|
|
|
|
|
Income (loss) before
taxes
|
4,146
|
|
(1,016)
|
|
|
|
|
|
Taxes
|
(48)
|
|
83
|
|
|
|
|
|
Net income
(loss)
|
4,194
|
|
(1,099)
|
|
|
|
|
|
Less: Net
income (loss) attributable to non-controlling interest
|
-
|
|
(1)
|
|
|
|
|
|
Net income (loss)
attributable to Spartan Motors, Inc.
|
$
4,194
|
|
$
(1,098)
|
|
|
|
|
|
Basic and diluted
net income (loss) per share
|
$
0.12
|
|
$
(0.03)
|
|
|
|
|
|
Basic and diluted
weighted average common shares outstanding
|
35,094
|
|
33,725
|
|
|
|
|
|
Spartan Motors,
Inc. and Subsidiaries
|
|
Sales and Other
Financial Information by Business Segment
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31, 2018 (in thousands of dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business
Segments
|
|
|
|
|
|
|
|
Fleet Vehicles and
Services
|
|
Emergency
Response
|
|
Specialty Chassis
& Vehicles
|
|
Other
|
|
Consolidated
|
|
Emergency response
vehicle sales
|
$
-
|
|
$
64,107
|
|
$
-
|
|
$
-
|
|
$
64,107
|
|
Fleet vehicle
sales
|
49,825
|
|
-
|
|
1,601
|
|
(1,601)
|
|
49,825
|
|
Motorhome chassis
sales
|
-
|
|
-
|
|
39,567
|
|
-
|
|
39,567
|
|
Other specialty
chassis and vehicles
|
-
|
|
-
|
|
5,367
|
|
-
|
|
5,367
|
|
Aftermarket parts and
assemblies
|
9,866
|
|
2,605
|
|
1,701
|
|
-
|
|
14,172
|
|
Total
sales
|
|
$
59,691
|
|
$
66,712
|
|
$
48,236
|
|
$
(1,601)
|
|
$
173,038
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
4,590
|
|
$
1,242
|
|
$
3,121
|
|
$
(3,350)
|
|
$
5,603
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Spartan Motors,
Inc. and Subsidiaries
|
|
Sales and Other
Financial Information by Business Segment
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31, 2017 (in thousands of dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business
Segments
|
|
|
|
|
|
|
Fleet
Vehicles and
Services
|
|
Emergency
Response
|
|
Specialty Chassis
& Vehicles
|
|
Other
|
|
Consolidated
|
Emergency response
vehicle sales
|
$
-
|
|
$
77,985
|
|
$
-
|
|
$
-
|
|
$
77,985
|
Fleet vehicle
sales
|
43,142
|
|
-
|
|
-
|
|
-
|
|
43,142
|
Motorhome chassis
sales
|
-
|
|
-
|
|
26,084
|
|
-
|
|
26,084
|
Other specialty
chassis and vehicles
|
-
|
|
-
|
|
4,822
|
|
-
|
|
4,822
|
Aftermarket parts and
assemblies
|
10,778
|
|
2,217
|
|
2,047
|
|
-
|
|
15,042
|
Total
sales
|
|
$
53,920
|
|
$
80,202
|
|
$
32,953
|
|
$
-
|
|
$
167,075
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
6,244
|
|
$
(1,337)
|
|
$
1,533
|
|
$ (2,251)
|
|
$
4,189
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Spartan Motors,
Inc. and Subsidiaries
|
|
|
Sales and Other
Financial Information by Business Segment
|
|
|
(Unaudited)
|
|
|
|
|
Period End
Backlog (amounts in thousands of
dollars)
|
|
|
|
Mar. 31,
2018
|
|
Dec. 31,
2017
|
|
Sept. 30,
2017
|
|
June 30,
2017
|
|
Mar. 31,
2017
|
|
|
Fleet Vehicles and
Services*
|
$
335,325
|
|
$
267,698
|
|
$
292,540
|
|
$
131,280
|
|
$
113,960
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Emergency Response
Vehicles*
|
189,627
|
|
233,583
|
|
213,334
|
|
214,794
|
|
214,463
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Motorhome Chassis *
|
28,463
|
|
33,191
|
|
31,179
|
|
25,823
|
|
21,772
|
|
|
Other Vehicles
|
36
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
Aftermarket Parts and
Assemblies
|
1,164
|
|
615
|
|
694
|
|
892
|
|
1,075
|
|
|
Total Specialty
Chassis & Vehicles
|
29,663
|
|
33,806
|
|
31,873
|
|
26,715
|
|
22,847
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Backlog
|
$
554,615
|
|
$
535,087
|
|
$
537,747
|
|
$
372,789
|
|
$
351,270
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Anticipated time to
fill backlog orders at March 31, 2018; 12 months or less for
emergency response vehicles; 3 months or less for motorhome
chassis; 10 months or less for fleet vehicles and services; and 1
month or less for other products.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Non-GAAP Financial Measures
This
release contains adjusted EBITDA (earnings before interest, taxes,
depreciation and amortization), adjusted net income, adjusted
earnings per share, forecasted adjusted EBITDA, and forecasted
adjusted earnings per share, which are all non-GAAP financial
measures. These non-GAAP measures are calculated by excluding items
that we believe to be infrequent or not indicative of our
continuing operating performance. For the periods covered by this
release such items include expenses associated with restructuring
actions taken to improve the efficiency and profitability of
certain of our manufacturing operations, expenses related to
business acquisition activities, the impact of the step-up in
inventory value associated with a recent business acquisition, the
impact of the business acquisition on the timing of chassis revenue
recognition, and the impact that our deferred tax asset valuation
allowance that we recorded in 2015 has had on our tax expense and
net income in 2017.
We present the non-GAAP measures adjusted EBITDA, adjusted net
income and adjusted earnings per share because we consider them to
be important supplemental measures of our performance. The
presentation of adjusted EBITDA enables investors to better
understand our operations by removing items that we believe are not
representative of our continuing operations and may distort our
longer term operating trends. The presentation of adjusted net
income and adjusted earnings per share enables investors to better
understand our operations by removing the impact of tax
adjustments, including the impact that our deferred tax asset
valuation allowance that we recorded in 2015 has had on our tax
expense and net income in 2017, and other items that we believe are
not indicative of our longer term operating trends. We believe
these measures to be useful to improve the comparability of our
results from period to period and with our competitors, as well as
to show ongoing results from operations distinct from items that
are infrequent or not indicative of our continuing operating
performance. We believe that presenting these non-GAAP measures is
useful to investors because it permits investors to view
performance using the same tools that management uses to budget,
make operating and strategic decisions, and evaluate our historical
performance. We believe that the presentation of these non-GAAP
measures, when considered together with the corresponding GAAP
financial measures and the reconciliations to those measures,
provides investors with additional understanding of the factors and
trends affecting our business than could be obtained in the absence
of these disclosures.
Our management uses adjusted EBITDA to evaluate the performance
of and allocate resources to our segments. In addition, non-GAAP
measures are used by management to review and analyze our operating
performance and, along with other data, as internal measures for
setting annual budgets and forecasts, assessing financial
performance, and comparing our financial performance with our
peers. Adjusted EBITDA is also used, along with other financial and
non-financial measures, for purposes of determining annual and
long-term incentive compensation for our management team.
Financial Summary
(Non-GAAP)
|
Consolidated
|
(In thousands, except
per share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
Spartan Motors,
Inc.
|
|
2018
|
|
|
2017
|
|
|
Net income (loss)
attributable to Spartan Motors, Inc.
|
|
$
4,194
|
|
|
$
(1,098)
|
|
|
Add
(subtract):
|
|
|
|
|
|
|
|
Restructuring
charges
|
|
20
|
|
|
642
|
|
|
Impact of acquisition
on timing of chassis revenue recognition
|
|
-
|
|
|
1,112
|
|
|
Impact of step-up in
inventory value resulting from acquisition
|
|
-
|
|
|
189
|
|
|
Impact of acquisition
adjustment for net working capital
|
|
(1,500)
|
|
|
-
|
|
|
Acquisition related
expenses
|
|
162
|
|
|
672
|
|
|
Deferred tax asset
valuation allowance
|
|
74
|
|
|
466
|
|
|
Tax effect of
adjustments
|
|
315
|
|
|
(719)
|
|
|
Adjusted net income
attributable to Spartan Motors, Inc.
|
|
$
3,265
|
|
|
$
1,264
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Spartan Motors, Inc.
|
|
$
4,194
|
|
|
$
(1,098)
|
|
|
Add
(subtract):
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
2,452
|
|
|
2,325
|
|
|
Taxes on
income
|
|
(48)
|
|
|
83
|
|
|
Interest
expense
|
|
323
|
|
|
264
|
|
|
EBITDA
|
|
$
6,921
|
|
|
$
1,574
|
|
|
|
|
|
|
|
|
|
|
Add
(subtract):
|
|
|
|
|
|
|
|
Restructuring
charges
|
|
20
|
|
|
642
|
|
|
Impact of acquisition
on timing of chassis revenue recognition
|
|
-
|
|
|
1,112
|
|
|
Impact of step-up in
inventory value resulting from acquisition
|
|
-
|
|
|
189
|
|
|
Impact of acquisition
adjustment for net working capital
|
|
(1,500)
|
|
|
-
|
|
|
Acquisition related
expenses
|
|
162
|
|
|
672
|
|
|
Adjusted
EBITDA
|
|
$
5,603
|
|
|
$
4,189
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net earnings
(loss) per share
|
|
$
0.12
|
|
|
$
(0.03)
|
|
|
Add
(subtract):
|
|
|
|
|
|
|
|
Restructuring
charges
|
|
-
|
|
|
0.02
|
|
|
Impact of acquisition
on timing of chassis revenue recognition
|
|
-
|
|
|
0.03
|
|
|
Impact of step-up in
inventory value resulting from acquisition
|
|
-
|
|
|
0.01
|
|
|
Impact of acquisition
adjustment for net working capital
|
|
(0.04)
|
|
|
-
|
|
|
Acquisition related
expenses
|
|
-
|
|
|
0.02
|
|
|
Deferred tax asset
valuation allowance
|
|
-
|
|
|
0.01
|
|
|
Tax effect of
adjustments
|
|
0.01
|
|
|
(0.02)
|
|
|
Adjusted diluted net
earnings per share
|
|
$
0.09
|
|
|
$
0.04
|
|
|
Financial Summary
(Non-GAAP)
|
(In
thousands)
|
(Unaudited)
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
Total segment
adjusted EBITDA
|
|
$
8,953
|
|
$
6,440
|
|
Add
(subtract):
|
|
|
|
|
|
|
Interest
expense
|
|
|
(323)
|
|
(264)
|
|
Depreciation and
amortization
|
|
(2,452)
|
|
(2,325)
|
|
Restructuring
expense
|
|
|
(20)
|
|
(642)
|
|
Acquisition
expense
|
|
|
(162)
|
|
(672)
|
|
Impact of acquisition
on timing of chassis revenue recognition
|
|
-
|
|
(1,112)
|
|
Impact of step-up in
inventory value resulting from acquisition
|
-
|
|
(189)
|
|
Impact of acquisition
adjustment for net working capital
|
1,500
|
|
-
|
|
Joint venture
expenses
|
|
|
-
|
|
(1)
|
|
Unallocated corporate
expenses
|
|
(3,350)
|
|
(2,251)
|
|
Consolidated income
(loss) before taxes
|
$
4,146
|
|
$
(1,016)
|
Fleet Vehicles and
Services Segment (Non-GAAP)
|
(In thousands,
unaudited)
|
|
|
Three Months Ended
March 31,
|
|
|
|
2018
|
% of sales
|
|
2017
|
% of sales
|
|
Net income
|
|
$
3,781
|
6.3%
|
|
$
5,225
|
9.7%
|
|
Add
(subtract):
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
607
|
|
|
876
|
|
|
Taxes on
income
|
|
-
|
|
|
-
|
|
|
Interest
expense
|
|
202
|
|
|
38
|
|
|
Earnings before
interest, taxes, depreciation and amortization
|
|
$
4,590
|
7.7%
|
|
$
6,139
|
11.4%
|
|
|
|
|
|
|
|
|
|
Earnings before
interest, taxes, depreciation and amortization
|
|
$
4,590
|
7.7%
|
|
$
6,139
|
11.4%
|
|
Restructuring
|
|
-
|
|
|
105
|
|
|
Adjusted earnings
before interest, taxes, depreciation and amortization
|
|
$
4,590
|
7.7%
|
|
$
6,244
|
11.6%
|
|
|
|
Emergency Response
Segment (Non-GAAP)
|
|
(In thousands,
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
2018
|
% of sales
|
|
2017
|
% of sales
|
|
Net income
(loss)
|
|
$
601
|
0.9%
|
|
$
(3,589)
|
(4.5%)
|
|
Add
(subtract):
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
624
|
|
|
552
|
|
|
Taxes on
income
|
|
-
|
|
|
-
|
|
|
Interest
expense
|
|
-
|
|
|
-
|
|
|
Earnings before
interest, taxes, depreciation and amortization
|
|
$
1,225
|
1.8%
|
|
$
(3,037)
|
(3.8%)
|
|
|
|
|
|
|
|
|
|
Earnings before
interest, taxes, depreciation and amortization
|
|
$
1,225
|
1.8%
|
|
$
(3,037)
|
(3.8%)
|
|
Restructuring
|
|
17
|
|
|
399
|
|
|
Impact of acquisition
on timing of chassis revenue recognition
|
|
-
|
|
|
1,112
|
|
|
Impact of step-up in
inventory value resulting from acquisition
|
|
-
|
|
|
189
|
|
|
Adjusted earnings
before interest, taxes, depreciation and amortization
|
|
$
1,242
|
1.9%
|
|
$
(1,337)
|
(1.7%)
|
|
|
|
|
|
|
|
|
|
Specialty Chassis
and Vehicles Segment (Non-GAAP)
|
|
(In thousands,
unaudited)
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
2018
|
% of sales
|
|
2017
|
% of sales
|
|
Net income
|
|
$
2,752
|
5.7%
|
|
$
1,127
|
3.4%
|
|
Add
(subtract):
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
366
|
|
|
310
|
|
|
Taxes on
income
|
|
-
|
|
|
-
|
|
|
Interest
expense
|
|
-
|
|
|
-
|
|
|
Earnings before
interest, taxes, depreciation and amortization
|
|
$
3,118
|
6.5%
|
|
$
1,437
|
4.4%
|
|
|
|
|
|
|
|
|
|
Earnings before
interest, taxes, depreciation and amortization
|
|
$
3,118
|
6.5%
|
|
$
1,437
|
4.4%
|
|
Restructuring
|
|
3
|
|
|
96
|
|
|
Adjusted earnings
before interest, taxes, depreciation and amortization
|
|
$
3,121
|
6.5%
|
|
$
1,533
|
4.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Summary
(Non-GAAP)
|
|
|
Consolidated
|
|
(In thousands, except
per share data)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Forecast
Year Ending December 31, 2018
|
|
|
|
Low
|
|
Mid
|
|
High
|
|
Net income
attributable to Spartan Motors, Inc.
|
|
$
20,242
|
|
$
21,303
|
|
$
22,363
|
|
Add:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
11,672
|
|
11,672
|
|
11,672
|
|
Interest
expense
|
|
427
|
|
455
|
|
483
|
|
Taxes
|
|
5,909
|
|
6,320
|
|
6,732
|
|
EBITDA
|
|
38,250
|
|
39,750
|
|
41,250
|
|
|
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
|
|
Restructuring
charges
|
|
750
|
|
750
|
|
750
|
|
Adjusted
EBITDA
|
|
$
39,000
|
|
$
40,500
|
|
$
42,000
|
|
|
|
|
|
|
|
|
|
Earnings per
share
|
|
$
0.58
|
|
$
0.61
|
|
$
0.64
|
|
Add:
|
|
|
|
|
|
|
|
Restructuring
charges
|
|
0.02
|
|
0.02
|
|
0.02
|
|
Less tax effect of
adjustments
|
|
-
|
|
-
|
|
-
|
|
Adjusted earnings per
share
|
|
$
0.60
|
|
$
0.63
|
|
$
0.66
|
View original
content:http://www.prnewswire.com/news-releases/spartan-motors-reports-strong-first-quarter-2018-results-300641527.html
SOURCE Spartan Motors, Inc.