8-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED):

May 2, 2006

SUPREME INDUSTRIES, INC.

(Exact name of registrant as specified in its charter)

Delaware	1-8183	75-1670945
(State of incorporation)	(Commission File No.)	(IRS Employer Identification No.)

P.O. Box 237

2581 E. Kercher Road

Goshen, Indiana 46528

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code:  (574) 642-3070

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

oWritten communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

oSoliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

oPre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

oPre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Section 2- Financial Information

Item 2.02 Results of Operations and Financial Condition.

On May 2, 2006, Supreme Industries, Inc. (the “Company”) issued a press release (the “Press Release”) announcing its financial results for the first quarter ended April 1, 2006. A copy of the Press Release is being furnished as Exhibit 99.1 to this Current Report on Form 8-K  and is incorporated by reference into this Item 2.02 and the foregoing description of the Press Release is qualified in its entirety by reference to this exhibit.

On May 2, 2006, the Company held a conference call to discuss its financial results for its first quarter. A transcript of the conference call is being furnished as Exhibit 99.2 to this Current Report on Form 8-K.

The Company also announced in the Press Release a cash dividend on its outstanding Class A and Class B Common Stock. Stockholders of record as of May 15, 2006, will receive $.095 for each share owned on that date, payable on May 22, 2006.

Pursuant to General Instruction B.2 of Form 8-K, the information in this Current Report on Form 8-K, including the exhibits shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liability of that section, and is not incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

Section 9 – Financial Statements and Exhibits

Item 9.01  Financial Statements and Exhibits.

(d)Exhibits.

The following exhibits are furnished with this Form 8-K:

99.1Press Release of the Company dated May 2, 2006.

99.2Transcript of conference call held by the Company on May 2, 2006.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	SUPREME INDUSTRIES, INC.
Date: May 8, 2006	By:	/s/ Jeffery D. Mowery
		Jeffery D. Mowery
		Vice President and Chief Financial Officer
		(Principal Financial and Accounting Officer)
		(Signing on behalf of the Registrant and as Principal
		Financial Officer)

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EX-99.1

Exhibit 99.1

SUPREME INDUSTRIES, INC.

For Immediate Release

Contact:	Robert W. Wilson
	President
	(574) 642-3070

Supreme Industries Reports Revenue and Earnings

for the 2006 First Quarter

Eleventh consecutive quarterly dividend declared

GOSHEN, Ind., May 2, 2006 — Supreme Industries, Inc. — (AMEX:STS), a leading manufacturer of specialized transportation products, including truck bodies and shuttle buses, announced today its financial results for the 2006 first quarter ended April 1, 2006.

The Company recorded net sales of $85.7 million for the quarter ended April 1, 2006, compared to $90.3 million for the same period last year, a decrease of $4.6 million. Net income for the first quarter was $1.4 million, or $0.11 per diluted share, in 2006 compared to $3.1 million, or $0.25 per diluted share, in 2005.

Robert W. Wilson, president, commented “The decrease in net sales relates to both the Company’s major fleet customers having substantially reduced their aggregate truck purchases in 2006 from the levels purchased in 2005 and delays in the delivery of OEM chassis. Increases in bus and armored sales helped to partially offset the decline in truck revenues.”

Gross profit for the first quarter of 2006 decreased to $9.6 million, or 11.2 percent of net sales, versus $11.6 million, or 12.9 percent of net sales, in the same period last year. In addition to the revenue decline, the delays in customer supplied chassis caused the Company to reschedule certain production capacity. As a result, both direct labor and overhead increased as a percentage of net sales as compared with the prior year’s first quarter. Additionally, the Company began to experience upward cost pressures on aluminum, steel and wood component costs during the first quarter. To combat the material cost increases, the Company has implemented price increases ranging from 3 to 5 percent on certain high volume truck division products effective in late-April 2006.

Selling, general and administrative (“SG&A”) expenses increased to $6.9 million in the current period versus $6.5 million last year. The SG&A increase was due principally to a reduction in cooperative marketing funds from chassis manufacturers and increased industry show expenses to promote the Company’s extensive product line.

-more-

Interest expense increased from $488,646 in the first quarter of 2005 to $700,925 in the same period of 2006. The increase in interest expense was a result of increased debt incurred for funding of capital expenditures together with increased working capital and higher short-term interest rates in 2006 versus 2005.

Stockholders’ equity totaled $75.5 million, or $5.95 per share, at April 1, 2006. Working capital totaled $68.5 million in the current period compared with $67.7 million last year. The working capital ratio at April 1, 2006 was 3.1 to 1, while long-term debt as a percentage of the Company’s total capitalization was a conservative 34 percent.

Robert W. Wilson, president, stated, “While we are disappointed with the lower earnings in the first quarter as compared with our earnings in the first quarter of 2005, we anticipate that our results in the second quarter are likely to improve as compared with the first quarter in light of our quarter ending backlog of $90.9 million, which is 5.3 percent higher than last year’s backlog of $86.3 million. Additionally, chassis supply issues, which contributed to our decrease in sales and earnings in the first quarter, are being resolved in the second quarter. However, an intensely competitive market environment, rising costs or other factors could adversely impact our results in 2006.”

Mr. Wilson concluded, “We are pleased to announce the acquisition of Pony Xpress, Inc., a manufacturer of highly specialized vehicles presently focused on the race car industry. Though not a material transaction, it provides Supreme with the foundation for its newly formed “Silver Crown” subsidiary. Silver Crown has unique manufacturing expertise that will enable our entry into additional highly specialized vehicles including those used in homeland security. In the second half of 2006, Silver Crown will be introducing higher-end products and broadening the Pony Xpress product line.”

Supreme Industries announced today a cash dividend on its outstanding Class A and Class B Common Stock. Stockholders of record as of May 15, 2006, will receive $.095 for each share owned on that date, payable on May 22, 2006. This cash dividend is the eleventh consecutive quarterly cash dividend since the Company commenced the payment of regular cash dividends in October of 2003.

The Company stated that this regular cash dividend is made in recognition of Supreme Industries’ favorable long-term outlook.

Future cash dividend payments are necessarily subject to business conditions, the Company’s financial position, and requirements for working capital, property, plant, and equipment expenditures and other corporate purposes.

A live webcast of Supreme Industries’ earnings conference call can be heard today at 4:30 p.m. Eastern Time at www.supremeind.com.

Supreme Industries, Inc. is a nationwide manufacturer of specialized truck bodies that are produced to the specifications of its customers. Supreme also manufactures the StarTrans® line

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of special-purpose “shuttle-type” buses. The Company’s transportation equipment products are used by a wide variety of industrial and commercial customers.

The Company’s significant accounting policies are discussed in Note 1 of the Notes to Consolidated Financial Statements included in the Annual Report on Form 10-K for the year ended December 31, 2005. In Management’s opinion, the Company’s critical accounting policies include allowance for doubtful accounts, excess and obsolete inventories, inventory relief, accrued insurance and accrued warranty.

This report contains forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995), other than historical facts, which reflect the view of the Company’s management with respect to future events. When used in this report, words such as “believe,” “expect,” “anticipate,” “estimate,” “intend,” and similar expressions, as they relate to the Company or its plans or operations, identify forward-looking statements. Such forward-looking statements are based on assumptions made by and information currently available to the Company’s management. Although management believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations are reasonable, and it can give no assurance that such expectations will prove to have been correct. Important factors that could cause actual results to differ materially from such expectations include, without limitation, limitations on the availability of chassis on which the Company’s product is dependent, availability of raw materials, raw material cost increases, and severe interest rate increases. Furthermore, the Company can provide no assurance that such raw material cost increases can be passed on to its customers through implementation of price increases for the Company’s products. The forward-looking statements contained herein reflect the current views of the Company’s management with respect to future events and are subject to those factors and other risks, uncertainties and assumptions relating to the operations, results of operations, cash flows and financial position of the Company. The Company assumes no obligation to update the forward-looking statements or to update the reasons actual results could differ from those contemplated by such forward-looking statements.

Financial Tables Follow…

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Supreme Industries, Inc. and Subsidiaries

Consolidated Statements of Income (Unaudited)

	Three Months Ended
	April 1,		March 26,
	2006		2005
Revenue:
Net sales	$	85,747,138	$	90,322,304
Other income	107,240		161,304
	85,854,378		90,483,608
Costs and expenses:
Cost of sales	76,141,452		78,696,536
Selling, general and administrative	6,858,966		6,458,082
Interest	700,925		488,646
	83,701,343		85,643,264
Income before income taxes	2,153,035		4,840,344
Income taxes	780,000		1,746,000
Net income	$	1,373,035	$	3,094,344
Earnings per share:
Basic	$	.11	$	.25
Diluted	.11		.25
Shares used in the computation of earnings per share:
Basic	12,689,654		12,184,495
Diluted	12,919,433		12,535,450
Cash dividend per common share	$	.095	$	.035

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Supreme Industries, Inc. and Subsidiaries

Consolidated Balance Sheets

	April 1,		December 31,
	2006		2005
	(Unaudited)
Assets
Current assets	$	101,610,721	$	88,609,777
Property, plant and equipment, net	47,764,364		47,457,713
Goodwill and intangible assets, net	1,426,833		735,014
Other assets	777,157		549,350
Total assets	$	151,579,075	$	137,351,854
Liabilities and Stockholders’ Equity
Current liabilities	$	33,128,732	$	27,819,756
Long-term debt	39,890,866		31,378,367
Deferred income taxes	3,074,675		2,988,275
Total liabilities	76,094,273		62,186,398
Stockholders’ equity	75,484,802		75,165,456
Total liabilities and stockholders’ equity	$	151,579,075	$	137,351,854

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EX-99.2

Exhibit 99.2

Bob Wilson

Good afternoon everyone.  Thank you for joining us for today’s conference call to discuss Supreme’s first quarter 2006 financial results.  The press release was issued this morning.  If you have not received a copy, please call Supreme’s offices at 574.642.3070 and one will be faxed to you.  Joining me today are Supreme’s Vice Presidents: Christy Miller, Manufacturing, Barry Lown, Sales and Marketing and Jeff Mowery, CFO.  I will provide a financial overview and additional details on the quarter.  After that, the team will be available to answer any questions that you may have.  Before we begin, I must remind you that during our conversation today you may hear some forward-looking statements.  Although we believe that the expectations reflected in the forward-looking statements are reasonable and that those statements are based on reasonable assumptions, we cannot guarantee that we will meet any expectations that might arise from these forward-looking statements and their underlying assumptions.  Some of the important factors that could cause Supreme’s results to differ materially from such expectations include:  limitations on the availability and cost of chassis for its products, the availability and cost of raw material, severe interest rate increases and other factors that are detailed in our SEC filings.

For the first quarter of 2006, Supreme reported net sales of $85.7 million compared to $90.3 million for the same period last year, a decrease of $4.6 million.  The decrease in net sales was a result of the Company’s major fleet customers substantially reducing their truck purchases in 2006 from the levels

purchased in 2005 and delays in the delivery of OEM chassis from their scheduled date.  Increases in bus and armored sales as well as the acquisition of Pony Xpress, a manufacturer of custom luxury totor homes principally for the race car industry, helped to partially offset the decline in truck revenues.  Increases in bus and armored sales accounted for roughly 23 percent of net sales during the first quarter of 2006, which is up substantially from 15 percent of net sales during the first quarter of 2005.

In the first quarter, gross profit decreased to 11.2 percent of net sales compared to 12.9 percent of net sales in the prior year first quarter.  This decrease was attributed to the decline in revenues and the delay in OEM supplied chassis.   The chassis delays caused the Company to temporarily shut down production lines which negatively affected direct labor efficiencies and overhead absorption.  Also, the previously mentioned shift in product mix to additional bus sales contributed to a higher material cost as a percentage of net sales. The Company also began to experience upward cost pressures on aluminum, steel and wood component costs during in the first quarter.  To combat the material cost increases, the Company has implemented price increases ranging from 3 to 5 percent on certain high volume truck division products effective in late-April 2006.

Selling, general and administrative expenses increased by $401,000 over last year and as a percentage of net sales, SG&A was 8.0 percent in the 2006 first quarter compared to 7.2 percent in last year’s first quarter.  Supreme experienced an increase in selling expenses primarily due to a reduction in cooperative marketing

funds received from chassis manufacturers and an increase in industry show expenses to promote the Company’s extensive product line.

Interest expense for the current quarter was $701,000 compared to $489,000 in last year’s first quarter.  The increase in interest expense was a result of increased debt incurred for funding of capital expenditures together with increased working capital and higher short-term interest rates in 2006 versus 2005.  Supreme experienced an increase in inventories as a result of higher levels of finished goods related to the advanced production of units to fulfill two large fleet contracts within a short delivery time frame, the delay in receving customer supplied chassis and higher levels of purchased chassis in our bus and armored divisions.

Supreme’s effective tax rate for the current quarter was 36.2 percent versus 36.1 percent in the prior-year period.

Net income in the quarter was $1.4 million, or $0.11 cents per diluted share, compared to $3.1 million, or $0.25 cents per diluted share, in the first quarter of 2005.

Capital expenditures totaled $1.4 million in the first quarter of 2006 compared to $1.6 million in the same period last year.  Major capital expenditures in the three months ended April 1, 2006 related to the purchase of a manufacturing facility

located in White Pigeon, Michigan, for the expansion of the recently acquired operations of Pony Xpress.  We are in the process of broadening  the Pony Xpress product line under our new Silver Crown subsidiary, and in the second half of 2006,  Silver Crown will be introducing higher-end products to the market. Silver Crown has unique manufacturing expertise that should  enable our entry into additional  highly specialized vehicle markets including those used in homeland security. While the company intends fewer additions to property, plant and equipment in 2006 as compared with 2005,  we will consider strategic opportunities for growth and expansion should they present themselves.  In total for 2006, capital expenditures are expected to approximate $4 million.

Turning to the balance sheet, stockholders’ equity continued to improve to $75.5 million, up 6.7 percent over last year’s first quarter.  Our book value was $5.95 per share, and long-term debt-to-total-capital was 34 percent.

Today, the company’s eleventh consecutive quarterly dividend was declared.  The nine and one half cent cash dividend will be payable on May 22^nd , 2006 and the record date is May 15^th, 2006.

While we are not satisfied with the sales and earnings results from the first quarter, we remain optimistic about our future prospects.  Our backlog at April 1, 2006, stood at $90.9 million, up 5.3 percent from $86.3 million in the same period last year.  The truck division’s backlog is up 2 percent which is comprised of an

increase in retail related business and a decrease in fleet related business, while our armored business remains strong with a backlog that is 95% above last year.  Rounding out the details on our backlog is our bus division which has a backlog that is 8 percent higher than last year.

To support our  backlog  in the second quarter of 2006, working capital totaled $68.5 million in the current period, up slightly from $67.7 million in the same period last year.  Our working capital ratio was 3.1 to 1.

With a healthy sales backlog at the end of the first quarter, we have turned our attention to revenues for the second half of 2006.  The competitive landscape remains challenging and the price increases recently announced could negatively impact second half revenues.

However, we remain committed to achieving better results in 2006 versus the results produced in 2005.  We continue to believe our extensive product offerings, new product introductions and superior service to customers will afford us opportunities for continued profitability.

With that being the conclusion of our formal remarks, we would now like to open the call for any questions you may have.

The end