CHARLOTTE, Mich., Aug. 1, 2019 /PRNewswire/ -- Spartan Motors,
Inc. (NASDAQ: SPAR) ("Spartan" or the "Company"), the North
American leader in specialty vehicle manufacturing and assembly for
the commercial and retail vehicle industries (including last mile
delivery, specialty service and vocation-specific upfit segments),
as well as for the emergency response and recreational vehicle
markets, today reported operating results for the second quarter
ending June 30,
2019.
Second Quarter 2019 Highlights
For the second quarter
of 2019 compared to the second quarter of 2018:
- Sales increased $64.0 million,
or 34.8%, to $247.9 million, from
$184.0 million.
- Net income was $3.5 million,
or $0.10 per share, compared to
$3.7 million, or $0.11 per share.
- Adjusted net income improved $0.8
million, or 18.9%, to $5.1
million, or $0.15 per share,
from $4.3 million, or $0.12 per share.
- Adjusted EBITDA increased 6.8% to $9.5 million, or 3.8% of sales, from $8.9 million, or 4.8% of sales.
- Consolidated backlog at June 30,
2019, excluding the one-time multi-year USPS truck body
order, totaled $465.8 million, up
$146.0 million, or 45.7%, compared to
$319.8 million at June 30, 2018. The increase was primarily driven
by strong demand for last mile delivery vehicles.
- Acquired the assets of General Truck Body in Southern California, expanding its vehicle
product line capabilities and footprint to provide coast-to-coast
coverage.
- Launched Detroit Truck Manufacturing (DTM), a vertically
integrated supplier of fabricated aluminum cabs for Spartan fire
trucks providing greater flexibility and cost structure
optimization. Included in the second quarter 2019 operating results
is $0.8 million, or $0.02 per share, of start-up costs relating to
DTM. This compares to $0.3 million,
or $0.01 per share, for the same
period a year ago.
- Appointed Todd A. Heavin, a
seasoned and proven multi-site operations and lean manufacturing
leader with significant Tier 1 automotive supplier experience, as
Chief Operating Officer.
"Spartan's strong second quarter results highlight increasing
demand for last mile delivery and emergency response vehicles and
our team's continued focus on executing efficiencies across our
operations," said Daryl Adams,
President and Chief Executive Officer. "We achieved
broad-based, positive results in each of our business units.
We bolstered our backlog through accelerated order volume and new
market initiatives and, with strong momentum heading into the
second half of the year, our team is energized to build on our
recent successes."
Fleet Vehicles and Services (FVS)
The FVS
business unit continues to grow both organically and through
acquisition fueled by the strength of last mile delivery orders
that will be built in the second half of 2019. During the
second quarter, FVS completed the purchase of the assets of General
Truck Body (GTB) in Southern
California and will begin to manufacture and assemble custom
aluminum and composite-side truck bodies, refrigerated trucks,
stake body trucks, curtain side and moving vans. The addition
of GTB's production, combined with existing FVS plants in
Bristol, Indiana and Ephrata, Pennsylvania, enables coast-to-coast
production and distribution capabilities for FVS truck body
customers. FVS continued to invest in new product development
during the quarter, reintroducing the Utilivan™ truck body on a
General Motors cutaway chassis at the GM Fleet Solutions Summit in
Dallas. This highly customizable commercial truck body is
designed to meet the rigorous and widely varied demands of product
and service delivery.
FVS segment sales increased $62.7
million, or 79.9%, to a record $141.1
million from $78.4 million.
The revenue increase was primarily due to pass-through sales on the
USPS truck body order ($35.7 million)
and last mile delivery vehicle demand.
Adjusted EBITDA decreased $0.5
million to $7.9 million, or
5.6% of sales, from $8.4 million, or
10.7% of sales, a year ago. The adjusted EBITDA decrease is
primarily due to unfavorable sales mix. The decrease in
adjusted EBITDA as a percentage of sales was primarily due to
unfavorable mix related to a 2018 upfit order that did not reoccur,
higher pass-through sales on the USPS truck body order, start-up
costs related to last mile delivery demand at all three of the
Company's upfit centers, as well as relocating truck body
manufacturing to Charlotte,
Michigan from Bristol,
Indiana. Excluding the above factors, normalized
adjusted EBITDA as a percentage of sales would have been 7.5%
compared to 6.3% a year ago.
The segment backlog at June 30,
2019, excluding the one-time multi-year USPS truck body
order, totaled $243.7 million, up
$134.6 million, or 123.4%, compared
to $109.1 million at June 30, 2018 and reflects the strong demand for
last mile delivery vehicles.
Emergency Response (ER)
The ER business unit
launched DTM, a vertically integrated supplier of fabricated
aluminum cabs, to provide improved cost, flexibility and quality,
while mitigating potential risks in its broader supply base, as it
remains focused on optimizing operations and enhancing efficiencies
to drive consistent, profitable growth. Ongoing
investments in new products and focus on meeting the needs of first
responders enabled the ER business to secure several new contracts
in the second quarter, which totaled 30 pumpers and aerials.
The segment also continued to invest in new product innovations to
support long-term revenue and earnings growth by highlighting the
safety-first designed Spartan Rescue Pumper, offering unique safety
features and innovations to improve performance and extend vehicle
life, while reducing long-term operating costs.
ER segment sales increased $8.6
million, or 14.5%, to $68.3
million from $59.6
million. The increase was due to increased volume and
improved pricing.
Adjusted EBITDA improved $0.9
million to $1.1 million, or
1.6% of sales, from $0.2 million a
year ago. The improvement was primarily the result of
pricing, volume and mix, and certain acquisition related
adjustments, partially reduced by higher supplier and other
expenses.
The segment backlog at June 30,
2019, totaled $189.7 million,
up $14.1 million, or 8.0%, compared
to $175.6 million at June 30, 2018.
Specialty Chassis and Vehicles (SCV)
The SCV
business unit remains focused on driving growth and operating
performance within the luxury motor coach segment as well as new
addressable markets for custom chassis and assembly
operations. During the second quarter, SCV entered into an
exclusive U.S.-based assembly agreement with Grande West
Transportation Group to assemble the Grande West Vicinity
model mid-size buses. SCV continued to lead in new technological
innovations in luxury motorhome chassis, unveiling the new E-Z
Steer technology at the 2019 Entegra Coach Homecoming event in
May. This new feature offers adjustable steering wheel
position and tension to help reduce driver fatigue on long trips,
while also improving maneuverability at low speeds and ease of
parking the coach. The strong relationships the SCV team has
built with customers like Entegra Coach continue to pay dividends
in the form of enhanced growth opportunities in key market
segments.
SCV segment sales decreased $5.8
million, or 12.1%, to $41.7
million from $47.5 million a
year ago. The revenue decrease was mainly due to lower luxury
motor coach chassis sales, offset by higher Reach® sales and
contract manufacturing.
Adjusted EBITDA increased $0.7
million to $5.1 million, or
12.2% of sales, from $4.4 million, or
9.2% of sales, a year ago, mainly due to mix and manufacturing
throughput.
The segment backlog at June 30,
2019, totaled $32.4 million,
up 11.2% sequentially, compared to $29.1
million at March 31, 2019.
Second Half 2019 Outlook – Raising
Guidance
"Spartan's first-half revenue and earnings
reflect our continuing operational initiatives to enhance
efficiencies and drive profitability across each business unit,"
said Rick Sohm, Chief Financial
Officer of Spartan Motors. "These internal initiatives
combined with the underlying health of our core markets and product
innovation that drives top-line growth give us confidence for the
remainder of 2019.
"We expect to see stronger year-over-year revenue and
profitability growth in the second half of 2019, driven primarily
by last mile delivery vehicle orders. These positive factors
allow us to increase our mid-point EPS guidance by 20% for the rest
of the year."
The Company now expects financial results for 2019 as
follows:
- Revenue midpoint up 10% to a range of $960.0 - $990.0
million from $865.0 -
$905.0 million
- Net income midpoint up 20% to a range of $24.1 - $26.4
million from $19.5 -
$22.6 million
- Adjusted EBITDA midpoint up 14% to a range of $43.3 - $46.2
million from $37.1 -
$41.1 million
- Earnings per share midpoint up 20% to a range of $0.68 - $0.75 from
$0.56 - $0.64, assuming approximately 35.3 million shares
outstanding
- Adjusted earnings per share midpoint up 21% to a range of
$0.70 - $0.77 from $0.57 -
$0.65
"Our strategic focus in the first half of the year delivered
increased revenue and solid profitability to serve as a foundation
for our long-term strategic growth initiatives," concluded Adams.
"The profitable growth achieved in the second quarter, along
with improving backlogs driven by last mile delivery demand,
instills confidence to increase our earnings guidance for the full
year. With recent customer wins and ongoing efforts to build
our business in new and existing market segments, our team will
continue to drive long-term profitable growth for Spartan Motors
and its shareholders."
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/webcasts
Conference Call: 1-844-868-8845 (domestic) or 412-317-6591
(international); passcode: 10133492
For more information about Spartan, please visit
www.spartanmotors.com.
About Spartan Motors
Spartan Motors, Inc. is the North
American leader in specialty vehicle manufacturing and assembly for
the commercial and retail vehicle industries (including last mile
delivery, specialty service, and vocation-specific upfit segments),
as well as for the emergency response and recreational vehicle
markets. The Company is organized into three core business
segments, including Spartan Fleet Vehicles and Services, Spartan
Emergency Response, and Spartan Specialty Vehicles. Today,
its family of brands also include Spartan Authorized Parts, Spartan
Factory Service Centers, Utilimaster®, Strobes-R-Us™, Smeal, Ladder
Tower™, and UST®. Spartan Motors and its go-to-market
brands are well known in their respective industries for quality,
durability, aftermarket product support, and first-to-market
innovation. The Company employs approximately 2,300 associates, and
operates facilities in Michigan,
Indiana, Pennsylvania, South
Carolina, Florida,
Missouri, California, Nebraska, South
Dakota; Saltillo, Mexico;
and Lima, Peru. Spartan reported
sales of $816 million in 2018.
Learn more about 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.
CONTACT:
|
|
Juris
Pagrabs Group Treasurer &
IR Spartan Motors,
Inc. (517)
997-3862
|
Spartan Motors,
Inc. and Subsidiaries
|
Condensed
Consolidated Balance Sheets
|
(In thousands, except
par value)
|
(Unaudited)
|
|
|
June
30,
2019
|
|
December
31,
2018
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
17,897
|
|
$
27,439
|
|
Accounts receivable,
less allowance of $409 and $133
|
122,083
|
|
106,801
|
|
Contract
assets
|
46,077
|
|
36,027
|
|
Inventories
|
82,065
|
|
69,992
|
|
Other current
assets
|
5,664
|
|
5,070
|
|
Total current
assets
|
273,786
|
|
245,329
|
|
|
|
|
|
|
Property, plant
and equipment, net
|
55,595
|
|
56,567
|
|
Right of use
assets – operating leases
|
14,953
|
|
-
|
|
Goodwill
|
31,874
|
|
33,823
|
|
Intangible assets,
net
|
8,203
|
|
8,611
|
|
Net deferred tax
asset
|
7,759
|
|
7,141
|
|
Other
assets
|
2,638
|
|
2,313
|
|
TOTAL
ASSETS
|
$
394,808
|
|
$
353,784
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
$
105,580
|
|
$
76,399
|
|
Accrued
warranty
|
17,111
|
|
16,090
|
|
Accrued compensation
and related taxes
|
11,836
|
|
10,520
|
|
Deposits from
customers
|
19,136
|
|
22,632
|
|
Operating lease
liability
|
3,511
|
|
-
|
|
Other current
liabilities and accrued expenses
|
12,645
|
|
12,396
|
|
Current portion of
long-term debt
|
213
|
|
60
|
|
Total current
liabilities
|
170,032
|
|
138,097
|
|
|
|
|
|
|
Other non-current
liabilities
|
4,640
|
|
4,058
|
|
Long-term
operating lease liability
|
11,636
|
|
-
|
|
Long-term debt,
less current portion
|
20,914
|
|
25,547
|
|
Total
liabilities
|
207,222
|
|
167,702
|
|
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; 35,316 and
35,321 outstanding
|
353
|
|
353
|
|
Additional paid in
capital
|
81,940
|
|
82,816
|
|
Retained
earnings
|
106,026
|
|
103,571
|
|
Total Spartan
Motors, Inc. shareholders' equity
|
188,319
|
|
186,740
|
|
Non-controlling interest
|
(733)
|
|
(658)
|
|
Total shareholders'
equity
|
187,586
|
|
186,082
|
|
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY
|
$
394,808
|
|
$
353,784
|
|
Spartan Motors,
Inc. and Subsidiaries
|
Condensed
Consolidated Statements of Operations
|
(In thousands, except
per share data)
|
(Unaudited)
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
Sales
|
$ 247,936
|
|
$ 183,981
|
|
$
481,899
|
|
$
357,019
|
Cost of products
sold
|
221,059
|
|
157,612
|
|
430,446
|
|
308,492
|
Restructuring
charges
|
6
|
|
-
|
|
55
|
|
-
|
Gross
profit
|
26,871
|
|
26,369
|
|
51,398
|
|
48,527
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development
|
2,265
|
|
1,817
|
|
4,638
|
|
3,205
|
Selling, general and
administrative
|
21,023
|
|
19,040
|
|
41,525
|
|
36,911
|
Restructuring
charges
|
65
|
|
797
|
|
128
|
|
817
|
Total operating expenses
|
23,353
|
|
21,654
|
|
46,291
|
|
40,933
|
|
|
|
|
|
|
|
|
Operating
income
|
3,518
|
|
4,715
|
|
5,107
|
|
7,594
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest
expense
|
(313)
|
|
(270)
|
|
(687)
|
|
(592)
|
Interest and other
income
|
1,147
|
|
832
|
|
1,482
|
|
2,425
|
Total other income
(expense)
|
834
|
|
562
|
|
795
|
|
1,833
|
Income before
taxes
|
4,352
|
|
5,277
|
|
5,902
|
|
9,427
|
|
|
|
|
|
|
|
|
Taxes
|
1,063
|
|
1,537
|
|
1,076
|
|
1,490
|
|
|
|
|
|
|
|
|
Net Income
|
3,289
|
|
3,740
|
|
4,826
|
|
7,937
|
|
|
|
|
|
|
|
|
Less: net loss
attributable to non-controlling interest
|
(215)
|
|
-
|
|
(75)
|
|
-
|
|
|
|
|
|
|
|
|
Net income
attributable to Spartan Motors Inc.
|
$
3,504
|
|
$
3,740
|
|
$
4,901
|
|
$
7,937
|
|
$
0.10
|
|
$
0.11
|
|
$
0.14
|
|
$
0.23
|
Basic net earnings
per share
|
|
|
|
|
$
0.10
|
|
$
0.11
|
|
$
0.14
|
|
$
0.23
|
Diluted net
earnings per share
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted
average common shares outstanding
|
35,349
|
|
35,260
|
|
35,308
|
|
35,177
|
|
|
|
|
|
|
|
|
Diluted weighted
average common shares outstanding
|
35,368
|
|
35,260
|
|
35,312
|
|
35,177
|
Spartan Motors,
Inc. and Subsidiaries
|
Sales and Other
Financial Information by Business Segment
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30, 2019 (in thousands of dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business
Segments
|
|
|
|
|
|
|
Fleet
Vehicles and
Services
|
|
Emergency
Response
|
|
Specialty
Chassis and
Vehicles
|
|
Other
|
|
Consolidated
|
Fleet vehicle
sales
|
$
111,230
|
|
$
-
|
|
$
3,152
|
|
$
(3,152)
|
|
$
111,230
|
Emergency response
vehicle sales
|
-
|
|
64,668
|
|
-
|
|
-
|
|
64,668
|
Motorhome chassis
sales
|
-
|
|
-
|
|
28,653
|
|
-
|
|
28,653
|
Other specialty
chassis and vehicles
|
-
|
|
-
|
|
7,315
|
|
-
|
|
7,315
|
Aftermarket parts and
assemblies
|
29,872
|
|
3,595
|
|
2,603
|
|
-
|
|
36,070
|
Total
sales
|
|
$
141,102
|
|
$
68,263
|
|
$
41,723
|
|
$
(3,152)
|
|
$
247,936
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
7,920
|
|
$
1,113
|
|
$
5,083
|
|
$
(4,630)
|
|
$
9,486
|
Spartan Motors,
Inc. and Subsidiaries
|
Sales and Other
Financial Information by Business Segment
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30, 2018 (in thousands of dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business
Segments
|
|
|
|
|
|
|
Fleet
Vehicles and
Services
|
|
Emergency
Response
|
|
Specialty
Chassis and
Vehicles
|
|
Other
|
|
Consolidated
|
Fleet vehicle
sales
|
$
53,107
|
|
$
-
|
|
$
1,528
|
|
$
(1,528)
|
|
$
53,107
|
Emergency response
vehicle sales
|
-
|
|
56,935
|
|
-
|
|
-
|
|
56,935
|
Motorhome chassis
sales
|
-
|
|
-
|
|
37,184
|
|
-
|
|
37,184
|
Other specialty
chassis and vehicles
|
-
|
|
-
|
|
5,748
|
|
-
|
|
5,748
|
Aftermarket parts and
assemblies
|
25,308
|
|
2,680
|
|
3,019
|
|
-
|
|
31,007
|
Total
sales
|
|
$
78,415
|
|
$
59,615
|
|
$
47,479
|
|
$
(1,528)
|
|
$
183,981
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
8,374
|
|
$
193
|
|
$
4,391
|
|
$
(4,073)
|
|
$
8,885
|
Spartan Motors,
Inc. and Subsidiaries
|
|
|
Sales and Other
Financial Information by Business Segment
|
|
|
(Unaudited)
|
|
|
|
|
|
Period End
Backlog (amounts in thousands of
dollars)
|
|
|
|
June 30,
2019
|
|
Mar. 31,
2019
|
|
Dec. 31,
2018
|
|
Sept. 30,
2018
|
|
June 30,
2018
|
|
|
Fleet Vehicles and
Services*
|
$
272,399
|
|
$
188,528
|
|
$
218,775
|
|
$
275,216
|
|
$
313,374
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Emergency Response
Vehicles*
|
189,716
|
|
214,659
|
|
216,526
|
|
175,699
|
|
175,603
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Motorhome Chassis *
|
31,852
|
|
28,470
|
|
36,584
|
|
32,137
|
|
33,511
|
|
|
Other Vehicles
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
Aftermarket Parts and Assemblies
|
565
|
|
667
|
|
1,072
|
|
1,861
|
|
1,612
|
|
|
Total Specialty
Chassis and Vehicles
|
32,417
|
|
29,137
|
|
37,656
|
|
33,998
|
|
35,123
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Backlog
|
$
494,532
|
|
$
432,324
|
|
$
472,957
|
|
$
484,913
|
|
$
524,100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Anticipated time to
fill backlog orders at June 30, 2019; 9 months or less for
emergency response vehicles; 3 months or less for motorhome
chassis; 6 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), which is a non-GAAP financial
measure. This non-GAAP measure is 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 include expenses associated with restructuring actions
taken to improve the efficiency and profitability of our
manufacturing operations, various items related to business
acquisition and litigation activities, and the impact of temporary
production disruptions due to severe weather-related flooding
surrounding the Company's Nebraska
facilities.
We present the non-GAAP measure adjusted EBITDA because we
consider it to be an important supplemental measure 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. We believe this measure
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 this non-GAAP measure 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 this non-GAAP
measure, when considered together with the corresponding GAAP
financial measures and the reconciliations to that measure,
provides investors with additional understanding of the factors and
trends affecting our business than could be obtained in the absence
of this disclosure.
Our management uses adjusted EBITDA to evaluate the performance
of and allocate resources to our segments. Adjusted EBITDA is also
used, along with other financial and non-financial measures, for
purposes of determining certain incentive compensation for our
management team.
Financial Summary
(Non-GAAP)
|
|
Consolidated
|
|
(In thousands, except
per share data)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
|
|
Spartan Motors,
Inc.
|
|
2019
|
|
|
2018
|
|
|
Net income
attributable to Spartan Motors, Inc.
|
|
$
3,504
|
|
|
$
3,740
|
|
|
Add
(subtract):
|
|
|
|
|
|
|
|
Restructuring
charges
|
|
71
|
|
|
797
|
|
|
Impact of acquisition
adjustments for net working capital
|
|
-
|
|
|
(693)
|
|
|
Joint venture
expenses
|
|
9
|
|
|
-
|
|
|
Joint venture
inventory adjustment
|
|
216
|
|
|
-
|
|
|
Acquisition related
expenses, including stock compensation
|
|
745
|
|
|
373
|
|
|
Recall
expense
|
|
777
|
|
|
(443)
|
|
|
Long-term strategic
planning expenses
|
|
-
|
|
|
718
|
|
|
Executive
compensation plan
|
|
273
|
|
|
-
|
|
|
DTA valuation
allowance
|
|
33
|
|
|
-
|
|
|
Tax effect of
adjustments
|
|
(499)
|
|
|
(178)
|
|
|
Adjusted net income
attributable to Spartan Motors, Inc.
|
|
$
5,129
|
|
|
$
4,314
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Spartan Motors, Inc.
|
|
$
3,504
|
|
|
$
3,740
|
|
|
Add
(subtract):
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
2,515
|
|
|
2,586
|
|
|
Taxes on
income
|
|
1,063
|
|
|
1,537
|
|
|
Interest
expense
|
|
313
|
|
|
270
|
|
|
EBITDA
|
|
$
7,395
|
|
|
$
8,133
|
|
|
|
|
|
|
|
|
|
|
Add
(subtract):
|
|
|
|
|
|
|
|
Restructuring
charges
|
|
71
|
|
|
797
|
|
|
Impact of acquisition
adjustments for net working capital
|
|
-
|
|
|
(693)
|
|
|
Joint venture
expenses
|
|
9
|
|
|
-
|
|
|
Joint venture
inventory adjustment
|
|
216
|
|
|
-
|
|
|
Acquisition related
expenses, including stock compensation
|
|
745
|
|
|
373
|
|
|
Recall
expense
|
|
777
|
|
|
(443)
|
|
|
Long-term strategic
planning expenses
|
|
-
|
|
|
718
|
|
|
Executive
Compensation Plan
|
|
273
|
|
|
0
|
|
|
Adjusted
EBITDA
|
|
$
9,486
|
|
|
$
8,885
|
|
|
|
|
|
|
|
|
|
|
Diluted net earnings
per share
|
|
$
0.10
|
|
|
$
0.11
|
|
|
Add
(subtract):
|
|
|
|
|
|
|
|
Restructuring
charges
|
|
-
|
|
|
0.02
|
|
|
Impact of acquisition
on timing net working capital
|
|
-
|
|
|
(0.02)
|
|
|
Joint venture
inventory adjustment
|
|
0.01
|
|
|
-
|
|
|
Acquisition related
expenses, including stock compensation
|
|
0.02
|
|
|
0.01
|
|
|
Recall
expense
|
|
0.02
|
|
|
(0.01)
|
|
|
Long-term strategic
planning expenses
|
|
-
|
|
|
0.02
|
|
|
Executive
compensation plan
|
|
0.01
|
|
|
-
|
|
|
Tax effect of
adjustments
|
|
(0.01)
|
|
|
(0.01)
|
|
|
Adjusted diluted net
earnings per share
|
|
$
0.15
|
|
|
$
0.12
|
|
|
Financial Summary
(Non-GAAP)
|
(In
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
|
|
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
|
Total segment
adjusted EBITDA
|
|
$
14,116
|
|
$
12,958
|
|
Add
(subtract):
|
|
|
|
|
|
|
Interest
expense
|
|
|
(313)
|
|
(270)
|
|
Depreciation and
amortization expense
|
|
(2,515)
|
|
(2,586)
|
|
Restructuring
expense
|
|
|
(71)
|
|
(797)
|
|
Acquisition related
expenses, including stock compensation
|
|
|
(745)
|
|
(373)
|
|
Litigation
settlement
|
|
(9)
|
|
-
|
|
Joint venture
inventory adjustment
|
|
(216)
|
|
-
|
|
Recall
expense
|
|
(777)
|
|
443
|
|
Long-term strategic
planning expenses
|
|
-
|
|
(718)
|
|
Executive
compensation plan
|
|
(273)
|
|
-
|
|
Impact of acquisition
adjustments for net working capital and contingent
liability
|
-
|
|
693
|
|
Unallocated corporate
expenses
|
|
|
(4,845)
|
|
(4,073)
|
|
Consolidated income
before taxes
|
$
4,352
|
|
$
5,277
|
Financial Summary
(Non-GAAP)
|
Consolidated
|
(In thousands, except
per share data)
|
(Unaudited)
|
|
|
|
|
Forecast
Year Ending
December 31, 2019
|
|
|
|
Low
|
|
Mid
|
|
High
|
Net income
|
|
|
$
24,135
|
|
$
25,288
|
|
$
26,441
|
Add:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
10,610
|
|
10,610
|
|
10,610
|
Interest
expense
|
|
|
1,229
|
|
1,229
|
|
1,229
|
Taxes
|
|
|
6,648
|
|
6,965
|
|
7,281
|
EBITDA
|
|
|
$
42,622
|
|
$
44,092
|
|
$
45,561
|
|
|
|
|
|
|
|
|
Add
(subtract):
|
|
|
|
|
|
|
|
Restructuring
charges
|
|
|
653
|
|
653
|
|
653
|
Adjusted
EBITDA
|
|
|
$
43,275
|
|
$
45,745
|
|
$
46,214
|
|
|
|
|
|
|
|
|
Earnings per
share
|
|
|
$
0.68
|
|
$
0.72
|
|
$
0.75
|
Add:
|
|
|
|
|
|
|
|
Restructuring
charges
|
|
|
0.02
|
|
0.02
|
|
0.02
|
Less tax effect of
adjustments
|
|
|
-
|
|
-
|
|
-
|
Adjusted earnings per
share
|
|
|
$
0.70
|
|
$
0.74
|
|
$
0.77
|
View original
content:http://www.prnewswire.com/news-releases/spartan-motors-delivers-strong-second-quarter-2019-results-300894614.html
SOURCE Spartan Motors, Inc.