CHARLOTTE, Mich., Nov. 1, 2017 /PRNewswire/ -- Spartan Motors,
Inc. (NASDAQ: SPAR) ("Spartan" or the "Company") today reported
operating results for the third quarter ending September 30, 2017. The Company reported
net income of $13.5 million, or
$0.38 per share, compared to
$2.7 million, or $0.08 per share, in the third quarter of
2016.
Third Quarter 2017 Highlights
For the third quarter of 2017 compared to the third quarter of
2016:
- Sales increased 27.3% to $189.2
million from $148.7
million.
- Gross margin improved 300 basis points, or 24.8%, to 15.1%
of sales compared to 12.1% of sales.
- Net income rose $10.7 million,
or 390.9%, to $13.5 million, or
$0.38 per share, and reflects the
release of a $6.3 million, or
$0.18 per share, tax valuation
allowance recorded in 2015, as a result of the Company's improved
financial condition. This compares to net income of $2.7 million, or $0.08 per share, in the prior year.
- Adjusted EBITDA increased $5.5
million, or 74.9%, to $12.9
million, or 6.8% of sales, compared to $7.4 million, or 5.0% of sales.
- Adjusted net income rose 119.7% to $7.4 million, or $0.21 per share, which excludes the $6.3 million, or $0.18 per share, tax valuation allowance
adjustment. This compares to adjusted net income of $3.4 million, or $0.10 per share, in the prior year.
- Emergency Response segment was profitable on both a GAAP and
an adjusted basis – achieving $2.5
million of adjusted EBITDA.
- Backlog was up 97.6% to $537.7
million at September 30, 2017,
and reflects the recently announced $214
million USPS order and the acquisition of Smeal in
January 2017. This compares to
$272.1 million at September 30, 2016.
"We are very pleased with the strong operating results achieved
for the quarter," said Daryl Adams,
President and Chief Executive Officer of Spartan Motors. "Not
only does it represent, on an adjusted basis, our seventh
profitable quarter in a row, it also highlights a significant
milestone as our Emergency Response segment returned to
profitability generating $2.5 million
of adjusted EBITDA for the quarter – up $3.7
million from last year. Our strong financial
performance across all business segments reflects a continued focus
on sales growth and operational performance by the entire Spartan
team."
Fleet Vehicles and Services (FVS) Third Quarter
Results
FVS segment sales increased $0.6
million to $78.6 million from
$78.0 million.
Adjusted EBITDA decreased $1.3
million to $8.8 million, or
11.2% of sales, from $10.1 million,
or 13.0% of sales, a year ago, primarily due to a large upfit order
that did not reoccur in 2017, offset by lean manufacturing
activities and the continued implementation of the Spartan
Production System.
Segment backlog at September 30,
2017 totaled $292.5 million,
up 186.2%, and reflects the recently announced $214 million USPS order. This compares to
$102.2 million at September 30, 2016.
Specialty Chassis & Vehicles (SCV) Third Quarter
Results
SCV segment revenue increased $18.2
million, or 59.0%, to $49.0
million from $30.8
million. Sales of motorhome chassis increased 65.7% to
$37.0 million from $22.3 million, due primarily to increased
shipments as a result of market share gains.
Adjusted EBITDA increased $3.8
million, or 287.1%, to $5.1
million, or 10.5% of sales, from $1.3
million, or 4.3% of sales, a year ago, primarily due to
increased sales and improved operational performance.
Segment backlog at September 30,
2017 totaled $31.9 million, up
58.4%, compared to $20.1 million at
September 30, 2016.
Emergency Response (ER) Third Quarter Results
ER segment revenue increased $23.8
million, or 56.4%, to $65.9
million from $42.1
million. Revenues from the Smeal acquisition
contributed to $17.3 million of the
increase, with the remaining increase due to increased shipments of
complete fire apparatus.
Adjusted EBITDA increased $3.7
million to $2.5 million, or
3.8% of sales, from a loss of $1.2
million a year ago. The increase was primarily the
result of increased sales, improved operational performance and
warranty cost reduction. Adjusted EBITDA loss in the 2016
third quarter included an adjustment of $1.7
million relating to a legacy product recall.
Segment backlog at September 30,
2017 totaled $213.3 million,
up 42.4%, compared to $149.8 million
at September 30, 2016.
Acquisition Update
Smeal Fire Apparatus Co. ("Smeal"), which was acquired effective
January 1, 2017, is expected to
generate approximately $105 million
in sales during 2017.
"The tireless efforts of our Spartan integration team are
inspiring as we continue to realize more synergies than originally
anticipated," said Adams. "The integration is running ahead
of schedule and we will complete the process during the current
fourth quarter. We expect the entire Emergency Response
segment to be profitable on both a GAAP and an adjusted basis in
the fourth quarter of 2017, and it remains on track to return to
profitability on an adjusted basis for full year
2017."
Fourth Quarter and 2017 Outlook
"Looking ahead to the fourth quarter of 2017, which typically
has lower sales volumes than the third quarter, we expect to see
continued year-over-year sales growth and improved operational
performance resulting in eight profitable quarters in a row, on an
adjusted basis," said Rick Sohm,
Chief Financial Officer of Spartan Motors.
Based on the Company's improved earnings trend over the past
seven quarters, the valuation allowance recorded in 2015 on certain
deferred tax assets was reversed and, as a result, its effective
tax rate going forward will be more closely aligned with the
statutory rate. This will impact the 2017 fourth quarter and,
accordingly, our adjusted EPS guidance for the full year.
The Company is maintaining its previously stated 2017 revenue
and adjusted EBITDA mid-point guidance and modifying the income tax
expense and adjusted earnings per share guidance as follows:
- Revenue of $690.0 - $710.0
million.
- Adjusted EBITDA of $29.3 - $30.3
million.
- A tax benefit of $3.7 million
recorded in the 2017 third quarter and an expected effective tax
rate of approximately 35% in the 2017 fourth quarter.
- Adjusted earnings per share of $0.40 to
$0.42, which excludes the $6.3
million, or $0.18 per share,
tax valuation allowance adjustment recorded in the 2017 third
quarter and includes the impact of the expected fourth quarter
income tax expense.
Conference Call, Webcast, Investor Presentation 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. 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: 10113640
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 2,200 associates, and operates
facilities in Michigan,
Indiana, Pennsylvania, Missouri, Wisconsin, Nebraska, South
Dakota; Saltillo, Mexico;
and Lima, Peru. Spartan reported
sales of $591 million in 2016. 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)
|
|
|
September
30,
|
|
|
|
2017
|
|
December
31,
|
|
(Unaudited)
|
|
2016
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
21,855
|
|
$
32,041
|
Accounts receivable,
less allowance of $191 and $487
|
93,682
|
|
65,441
|
Inventories
|
95,070
|
|
58,896
|
Income taxes
receivable
|
-
|
|
1,287
|
Other current
assets
|
4,482
|
|
4,526
|
Total current
assets
|
215,089
|
|
162,191
|
|
|
|
|
Property, plant
and equipment, net
|
55,984
|
|
53,116
|
Goodwill
|
27,489
|
|
15,961
|
Intangible assets,
net
|
9,642
|
|
6,385
|
Other
assets
|
2,872
|
|
2,331
|
Net deferred tax
assets
|
9,790
|
|
3,310
|
TOTAL
ASSETS
|
$
320,866
|
|
$
243,294
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
55,000
|
|
$
31,336
|
Accrued
warranty
|
19,786
|
|
19,334
|
Accrued compensation
and related taxes
|
12,043
|
|
13,188
|
Deposits from
customers
|
26,950
|
|
16,142
|
Other current
liabilities and accrued expenses
|
12,461
|
|
7,659
|
Current portion of
long-term debt
|
49
|
|
65
|
Total current
liabilities
|
126,289
|
|
87,724
|
|
|
|
|
Long-term debt,
less current portion
|
22,840
|
|
74
|
Other non-current
liabilities
|
5,103
|
|
2,544
|
Total liabilities
|
154,232
|
|
90,342
|
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; 35,087 and 34,383
outstanding
|
351
|
|
344
|
Additional paid in
capital
|
78,773
|
|
76,837
|
Retained
earnings
|
88,168
|
|
76,428
|
Total Spartan
Motors, Inc. shareholders' equity
|
167,292
|
|
153,609
|
Non-controlling
interest
|
(658)
|
|
(657)
|
Total shareholders'
equity
|
166,634
|
|
152,592
|
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY
|
$
320,866
|
|
$
243,294
|
Spartan Motors,
Inc. and Subsidiaries
|
Consolidated
Statements of Operations
|
(In thousands,
except per share data)
|
(Unaudited)
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
Sales
|
$ 189,215
|
|
$ 148,664
|
|
$
526,029
|
|
$
444,927
|
Cost of products
sold
|
160,564
|
|
130,571
|
|
461,327
|
|
390,206
|
Restructuring
charge
|
-
|
|
83
|
|
156
|
|
83
|
Gross
profit
|
28,651
|
|
18,010
|
|
64,546
|
|
54,638
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development
|
1,598
|
|
1,377
|
|
5,265
|
|
4,408
|
Selling, general and
administrative
|
17,057
|
|
13,820
|
|
48,160
|
|
41,782
|
Restructuring
charge
|
232
|
|
221
|
|
1,044
|
|
788
|
Total operating
expenses
|
18,887
|
|
15,418
|
|
54,469
|
|
46,978
|
|
|
|
|
|
|
|
|
Operating
income
|
9,764
|
|
2,592
|
|
10,077
|
|
7,660
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest
expense
|
(189)
|
|
(112)
|
|
(582)
|
|
(314)
|
Interest and other
income
|
159
|
|
151
|
|
438
|
|
305
|
Total other income
(expense)
|
(30)
|
|
39
|
|
(144)
|
|
(9)
|
Income before
taxes
|
9,734
|
|
2,631
|
|
9,933
|
|
7,651
|
Taxes
|
(3,736)
|
|
(113)
|
|
(3,561)
|
|
(11)
|
Net Income
|
13,470
|
|
2,744
|
|
13,494
|
|
7,662
|
Less: net loss
attributable to non-controlling interest
|
-
|
|
(1)
|
|
(1)
|
|
(6)
|
|
|
|
|
|
|
|
|
Net income
attributable to Spartan Motors Inc.
|
$
13,470
|
|
$
2,745
|
|
$
13,495
|
|
$
7,668
|
|
|
|
|
|
|
|
|
Basic net earnings
per share
|
$
0.38
|
|
$
0.08
|
|
$
0.39
|
|
$
0.22
|
|
|
|
|
|
|
|
|
Diluted net
earnings per share
|
$
0.38
|
|
$
0.08
|
|
$
0.39
|
|
$
0.22
|
|
|
|
|
|
|
|
|
Basic weighted
average common shares outstanding
|
35,105
|
|
34,439
|
|
34,882
|
|
34,406
|
|
|
|
|
|
|
|
|
Diluted weighted
average common shares outstanding
|
35,105
|
|
34,439
|
|
34,882
|
|
34,406
|
Spartan Motors,
Inc. and Subsidiaries
|
Sales and Other
Financial Information by Business Segment
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30, 2017 (in thousands of dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business
Segments
|
|
|
|
|
|
|
Emergency
Response
|
|
Fleet Vehicles &
Services
|
|
Specialty Chassis
&Vehicles
|
|
Other
|
|
Consolidated
|
Emergency response
vehicle sales
|
$
63,369
|
|
$
-
|
|
$
-
|
|
$
-
|
|
$
63,369
|
Fleet vehicle
sales
|
-
|
|
66,850
|
|
4,312
|
|
(4,312)
|
|
66,850
|
Motorhome chassis
sales
|
-
|
|
-
|
|
37,034
|
|
-
|
|
37,034
|
Other specialty
chassis and vehicles
|
-
|
|
-
|
|
4,738
|
|
-
|
|
4,738
|
Aftermarket parts and
assemblies
|
2,503
|
|
11,787
|
|
2,934
|
|
-
|
|
17,224
|
Total
Sales
|
|
$
65,872
|
|
$
78,637
|
|
$
49,018
|
|
$(4,312)
|
|
$
189,215
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
2,501
|
|
$
8,785
|
|
$
5,149
|
|
$(3,541)
|
|
$
12,894
|
|
|
|
|
|
|
|
|
|
|
|
Spartan Motors,
Inc. and Subsidiaries
|
Sales and Other
Financial Information by Business Segment
|
Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30, 2016 (in thousands of dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business
Segments
|
|
|
|
|
|
|
Emergency
Response
|
|
Fleet Vehicles &
Services
|
|
Specialty Chassis
&Vehicles
|
|
Other
|
|
Consolidated
|
Emergency response
vehicle sales
|
$
40,185
|
|
$
-
|
|
$
-
|
|
$
-
|
|
$
40,185
|
Fleet vehicle
sales
|
-
|
|
57,422
|
|
2,244
|
|
(2,244)
|
|
57,422
|
Motorhome chassis
sales
|
-
|
|
-
|
|
22,344
|
|
-
|
|
22,344
|
Other specialty
chassis and vehicles
|
-
|
|
-
|
|
4,091
|
|
-
|
|
4,091
|
Aftermarket parts and
assemblies
|
1,934
|
|
20,537
|
|
2,151
|
|
-
|
|
24,622
|
Total
Sales
|
|
$
42,119
|
|
$
77,959
|
|
$
30,830
|
|
$ (2,244)
|
|
$
148,664
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
(1,166)
|
|
$
10,118
|
|
$
1,330
|
|
$ (2,909)
|
|
$
7,373
|
|
|
|
|
|
|
|
|
|
|
|
Sales and Other
Financial Information by Business Segment
|
|
|
(Unaudited)
|
|
|
|
|
|
Period End Backlog
(amounts in thousands of dollars)
|
|
|
|
Sept. 30,
2017
|
|
June 30,
2017
|
|
Mar. 31,
2017
|
|
Dec. 31,
2016
|
|
Sept. 30,
2016
|
|
|
Emergency Response
Vehicles*
|
$
213,334
|
|
$
214,794
|
|
$
214,463
|
|
$
139,870
|
|
$
149,753
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fleet Vehicles and
Services*
|
292,540
|
|
131,280
|
|
113,960
|
|
89,549
|
|
102,218
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Motorhome Chassis *
|
31,179
|
|
25,823
|
|
21,772
|
|
18,749
|
|
19,114
|
|
|
Aftermarket Parts and Accessories
|
694
|
|
892
|
|
1,075
|
|
1,288
|
|
1,012
|
|
|
Total Specialty
Chassis & Vehicles
|
31,873
|
|
26,715
|
|
22,847
|
|
20,037
|
|
20,126
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Backlog
|
$
537,747
|
|
$
372,789
|
|
$
351,270
|
|
$
249,546
|
|
$
272,097
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Anticipated time to
fill backlog orders at September 30, 2017; 12 months or less for
emergency response vehicles; 3 months or less for motorhome
chassis; 4 months or less for fleet vehicles and services, except
for the USPS truck body order which will be fulfilled throughout
2018 and 2019; 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. Our management uses Adjusted EBITDA to
evaluate the performance of and allocate resources to our segments.
These non-GAAP measures are calculated by excluding items that we
believe to be infrequent or not indicative of our operating
performance. For the periods covered by this release such items
consist of expenses associated with restructuring actions taken to
improve the efficiency and profitability of certain of our
manufacturing operations, expenses related to a recent business
acquisition, the impact of the step-up in inventory value
associated with the recent business acquisition, and the impact of
the business acquisition on the timing of chassis revenue
recognition. We present these adjusted Non-GAAP measures because we
consider them to be important supplemental measures of our
performance and believe them 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
operating performance.
The adjusted Non-GAAP measures are not measurements of our
financial performance under GAAP and should not be considered as an
alternative to net income or earnings per share under GAAP. These
adjusted Non-GAAP measures have limitations as analytical tools and
should not be considered in isolation or as a substitute for
analysis of our results as reported under GAAP. In addition, in
evaluating the adjusted Non-GAAP measures, you should be aware that
in the future we may incur expenses similar to the adjustments in
this presentation, despite our assessment that such expenses are
infrequent or not indicative of our operating performance.
Our presentation of the adjusted Non-GAAP measures should not be
construed as an inference that our future results will be
unaffected by unusual or infrequent items. We compensate for these
limitations by providing equal prominence of our GAAP results and
using adjusted Non-GAAP measures only as a supplement.
The following tables reconcile net income to Adjusted EBITDA,
net income to adjusted net income, earnings per share to adjusted
earnings per share, forecasted net income to Adjusted EBITDA and
forecasted earnings per share to adjusted earnings per share for
the periods indicated.
Financial Summary
(Non-GAAP)
|
Consolidated
|
(In thousands, except
per share data)
|
(Unaudited)
|
|
|
Three Months Ended
September 30,
|
Spartan Motors,
Inc.
|
|
2017
|
% of
sales
|
|
2016
|
% of
sales
|
Net income
|
|
$
13,470
|
7.1%
|
|
$
2,744
|
1.8%
|
Add
(subtract):
|
|
|
|
|
|
|
Restructuring
|
|
232
|
|
|
304
|
|
Intercompany chassis
impact
|
|
108
|
|
|
-
|
|
Asset
impairment
|
|
-
|
|
|
406
|
|
Recall
expense
|
|
(368)
|
|
|
1,742
|
|
Acquisition related
expenses
|
|
354
|
|
|
-
|
|
Deferred tax asset
valuation allowance
|
|
(6,295)
|
|
|
(1,716)
|
|
Tax effect of
adjustments
|
|
(98)
|
|
|
(111)
|
|
Adjusted net
income
|
|
$
7,403
|
3.9%
|
|
$
3,369
|
2.3%
|
|
|
|
|
|
|
|
Net income
|
|
$
13,470
|
7.1%
|
|
$
2,744
|
1.8%
|
Add
(subtract):
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
2,645
|
|
|
2,178
|
|
Taxes on
income
|
|
(3,736)
|
|
|
(113)
|
|
Interest
expense
|
|
189
|
|
|
112
|
|
EBITDA
|
|
$
12,568
|
6.6%
|
|
$
4,921
|
3.3%
|
Add
(subtract):
|
|
|
|
|
|
|
Restructuring
|
|
232
|
|
|
304
|
|
Intercompany chassis
impact
|
|
108
|
|
|
-
|
|
Asset
impairment
|
|
-
|
|
|
406
|
|
Recall
expense
|
|
(368)
|
|
|
1,742
|
|
Acquisition related
expenses
|
|
354
|
|
|
-
|
|
Adjusted
EBITDA
|
|
$
12,894
|
6.8%
|
|
$
7,373
|
5.0%
|
|
|
|
|
|
|
|
Diluted net earnings
per share
|
|
$
0.38
|
|
|
$
0.08
|
|
Add
(subtract):
|
|
|
|
|
|
|
Restructuring
|
|
0.01
|
|
|
0.01
|
|
Intercompany chassis
impact
|
|
-
|
|
|
-
|
|
Asset
impairment
|
|
-
|
|
|
0.01
|
|
Recall
expense
|
|
(0.01)
|
|
|
0.05
|
|
Acquisition related
expenses
|
|
0.01
|
|
|
-
|
|
Deferred tax asset
valuation allowance
|
|
(0.18)
|
|
|
(0.05)
|
|
Tax effect of
adjustments
|
|
-
|
|
|
-
|
|
Adjusted Diluted net
earnings per share
|
|
$
0.21
|
|
|
$
0.10
|
|
|
|
|
|
|
|
|
Emergency Response
Vehicles Segment
|
(In thousands,
unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
|
|
2017
|
% of sales
|
|
2016
|
% of sales
|
|
Net income (loss)
attributable to Emergency Response
|
|
$
2,186
|
3.3%
|
|
$
(3,835)
|
-9.1%
|
|
Add
(subtract):
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
575
|
|
|
217
|
|
|
Taxes on
income
|
|
-
|
|
|
-
|
|
|
Earnings before
interest, taxes, depreciation and amortization
|
|
$
2,761
|
4.2%
|
|
$
(3,618)
|
-8.6%
|
|
|
|
|
|
|
|
|
|
Earnings before
interest, taxes, depreciation and amortization
|
|
$
2,761
|
4.2%
|
|
$
(3,618)
|
-8.6%
|
|
Restructuring
charges
|
|
-
|
|
|
304
|
|
|
Intercompany chassis
impact
|
|
108
|
|
|
-
|
|
|
Recall
expense
|
|
(368)
|
|
|
1,742
|
|
|
Asset
impairment
|
|
-
|
|
|
406
|
|
|
Adjusted earnings
before interest, taxes, depreciation and amortization
|
|
$
2,501
|
3.8%
|
|
$
(1,166)
|
-2.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fleet Vehicles and
Services Segment
|
(In thousands,
unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
|
|
2017
|
% of sales
|
|
2016
|
% of sales
|
|
Net income (loss)
attributable to Fleet Vehicles and Services
|
|
$
7,671
|
9.8%
|
|
$
9,262
|
11.9%
|
|
Add
(subtract):
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
855
|
|
|
813
|
|
|
Interest
expense
|
|
27
|
|
|
43
|
|
|
Earnings before
interest, taxes, depreciation and amortization
|
|
$
8,553
|
10.9%
|
|
$
10,118
|
13.0%
|
|
|
|
|
|
|
|
|
|
Earnings before
interest, taxes, depreciation and amortization
|
|
$
8,553
|
10.9%
|
|
$
10,118
|
13.0%
|
|
Restructuring
charges
|
|
232
|
|
|
-
|
|
|
Adjusted earnings
before interest, taxes, depreciation and amortization
|
|
$
8,785
|
11.2%
|
|
$
10,118
|
13.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Specialty Chassis
and Vehicles Segment
|
(In thousands,
unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
|
|
2017
|
% of sales
|
|
2016
|
% of sales
|
|
Net income (loss)
attributable to Specialty Chassis and Vehicles
|
|
$
4,781
|
9.8%
|
|
$
1,144
|
3.7%
|
|
Add
(subtract):
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
368
|
|
|
186
|
|
|
Earnings before
interest, taxes, depreciation and amortization
|
|
$
5,149
|
10.5%
|
|
$
1,330
|
4.3%
|
|
|
|
|
|
|
|
|
|
Earnings before
interest, taxes, depreciation and amortization
|
|
$
5,149
|
10.5%
|
|
$
1,330
|
4.3%
|
|
Restructuring
charges
|
|
-
|
|
|
-
|
|
|
Adjusted earnings
before interest, taxes, depreciation and amortization
|
|
$
5,149
|
10.5%
|
|
$
1,330
|
4.3%
|
|
|
FINANCIAL SUMMARY
(Non-GAAP)
|
CONSOLIDATED
|
(In thousands, except
per share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Forecast
Year Ending December 31, 2017
|
|
|
Low
|
|
Mid
|
|
High
|
Net income
|
|
$
17,000
|
|
$
17,200
|
|
$
17,500
|
Add:
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
10,200
|
|
10,200
|
|
10,200
|
Interest
expense
|
|
600
|
|
600
|
|
600
|
Tax
benefit
|
|
(2,800)
|
|
(2,500)
|
|
(2,300)
|
EBITDA
|
|
$
25,000
|
|
$
25,500
|
|
$
26,000
|
Add
(subtract):
|
|
|
|
|
|
|
Restructuring
|
|
1,200
|
|
1,200
|
|
1,200
|
Acquisition related
expenses
|
|
1,300
|
|
1,300
|
|
1,300
|
Recall
expense
|
|
(300)
|
|
(300)
|
|
(300)
|
Chassis shipment
delay
|
|
2,100
|
|
2,100
|
|
2,100
|
Adjusted
EBITDA
|
|
$
29,300
|
|
$
29,800
|
|
$
30,300
|
|
|
|
|
|
|
|
Earnings per
share
|
|
$
0.48
|
|
$
0.49
|
|
$
0.50
|
Add
(subtract):
|
|
|
|
|
|
|
Restructuring
|
|
0.03
|
|
0.03
|
|
0.03
|
Acquisition related
expenses
|
|
0.04
|
|
0.04
|
|
0.04
|
Recall
expense
|
|
(0.01)
|
|
(0.01)
|
|
(0.01)
|
Chassis shipment
delay
|
|
0.07
|
|
0.07
|
|
0.07
|
Valuation allowance
adjustment
|
|
(0.18)
|
|
(0.18)
|
|
(0.18)
|
Less tax effect of
adjustments
|
|
(0.03)
|
|
(0.03)
|
|
(0.03)
|
Adjusted earnings per
share
|
|
$
0.40
|
|
$
0.41
|
|
$
0.42
|
View original
content:http://www.prnewswire.com/news-releases/spartan-motors-reports-third-quarter-net-income-of-135-million-increases-391-on-27-sales-growth-300546914.html
SOURCE Spartan Motors, Inc.