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):  November 14, 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 2.02Results of Operations and Financial Condition.

On November 14, 2006, Supreme Industries, Inc. (the “Company”) issued a press release (the “Press Release”) announcing its financial results for the third quarter and nine-month period ended September 30, 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 Exhibit 99.1.

On November 14, 2006, the Company held a conference call to discuss its financial results for its third quarter and nine-month period ended September 30, 2006.  A transcript of the conference call is being furnished as Exhibit 99.2 to this Current Report on Form 8-K.

Pursuant to General Instruction B.2 of Form 8-K, the information in this Current Report on Form 8-K, including the exhibits hereto, 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 9.01Financial Statements and Exhibits.

(d)           Exhibits.

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

99.1Press Release of the Company dated November 14, 2006.

99.2         Transcript of conference call held by the Company on November 14, 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: November 15, 2006	By:	/s/ Jeffery D. Mowery
		Jeffery D. Mowery
		Vice President and Chief Financial Officer
		(Principal Financial and Accounting Officer)

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EXHIBIT INDEX

Exhibit No.	Description
99.1	Press Release of the Company dated November 14, 2006.
99.2	Transcript of conference call held by the Company on November 14, 2006.

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EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE

Supreme Industries Reports Third-Quarter and Nine-Month 2006 Financial Results

Goshen, Ind.—November 14, 2006—Supreme Industries, Inc. (AMEX: STS), a leading manufacturer of specialized transportation products, including truck bodies and shuttle buses, today announced financial results for the third-quarter and nine-month periods ended September 30, 2006.

The Company generated net sales of $79.7 million for the third quarter of 2006, increasing 3.4 percent from the prior-year third-quarter high of $77.1 million. Net income for the 2006 third quarter of $1.2 million compared with $1.3 million in last year’s third quarter, with diluted earnings per share remaining unchanged at $.10.

Net sales for the first nine months advanced to $264.3 million in 2006 from 2005’s $262.6 million. Net income was $4.2 million, or $.32 per diluted share, versus $7.3 million, or $.57 per diluted share, for the 2005 nine-month period.

The 2006 revenue improvement reflected increased sales of the Company’s core dry freight product line where sales were up for the third quarter and the nine months, versus the respective prior-year periods. This was supported by an increase in sales from the Company’s StarTrans® Bus Division during the most recent nine months, partially offsetting a decrease in fleet sales from levels achieved last year. Sales backlog was $75.4 million at September 30, 2006, versus $69.1 million at 2005’s third-quarter end, an increase of more than nine percent.

Gross profit for the third quarter of 2006 increased 15.7 percent to $9.6 million, or 12.0 percent of net sales, compared with $8.3 million, or 10.7 percent of net sales, for the same quarter last year. For the first nine months of 2006, gross profit decreased 7.5 percent to $29.7 million, versus $32.1 million for the 2005 nine-month period. Gross margin was 11.2 percent of net sales in the current year’s nine-month period, versus 12.2 percent of net sales in last year’s nine months. The gross profit increase for the quarter was primarily due to favorable annual physical inventory adjustments. These adjustments historically have been recorded in the third quarter and resulted in a $1.9 million favorable adjustment this year compared with a $1.1 million unfavorable adjustment last year. Additionally, the Company continued to experience higher raw material costs and increases in its workers compensation costs, repairs and maintenance and utilities, which impacted the financial results.

Supreme Industries, Inc.
2581 East Kercher Road • PO Box 237 • Goshen, IN 46528

Selling, general and administrative (SG&A) expenses were $7.2 million, or 9.0 percent of net sales, in the 2006 third quarter, compared with $6.0 million, or 7.8 percent of net sales, for the same period last year. For the 2006 nine-month period, SG&A expenses were $21.4 million, or 8.1 percent of net sales, compared with $19.7 million, or 7.5 percent of net sales, for the same prior-year period. The increases reflected a reduction in cooperative marketing funds the Company receives from chassis manufacturers, expenses as a result of the February 2006 acquisition of Pony Xpress and the addition of new sales positions to promote the Company’s expanding product line.

Interest expense in the third quarter increased to $.8 million, up from $.5 million for the same period in 2005. For the nine months, interest expense increased to $2.3 million, compared with $1.6 million for same period a year ago. The increases were a result of higher short-term interest rates, finance charges incurred on consigned chassis inventory and, to a lesser extent, additional borrowings.

Stockholders’ equity improved to $75.8 million, or $5.97 per share, at September 30, 2006. At quarter-end, working capital totaled $62.2 million, compared with $60.8 million at last year-end. The working capital ratio at September 30, 2006, was 3.2 to 1, while long-term debt as a percentage of the Company’s total assets was 23.9 percent.

Commenting on the financial results, President Robert W. Wilson said, “We are pleased with the quarter’s strong sales performance; however, when we exclude the positive impact from the physical inventory adjustment, the effect of our previous price increases has yet to be fully realized.

“We have started to see some of the anticipated benefits from pricing adjustments implemented earlier this year, and we expect that margins will improve as we continue to work through the backlog of lower-margin orders. Strategies to mitigate the adverse impact of volatility in raw material costs continue, and we remain committed to reducing their impact as market conditions allow.

“On the volume side of the business, we are optimistic about market-expanding possibilities inherent in our new product offerings.  Among the product expansions and improvements currently being developed is our new high-end StarTrans shuttle bus, which debuted last month to favorable reviews; and our Astro Body, which is Supreme’s joint product-development and marketing project with General Motors.”

Supreme Industries also recently announced a cash dividend on its outstanding Class A and Class B Common Stock. Stockholders of record as of November 13, 2006, will receive $.095 for each share owned on that date, payable on November 20, 2006. This cash dividend is the 13th consecutive quarterly cash dividend since the Company commenced payments of regular cash dividends in October of 2003.

A live webcast of Supreme Industries’ earnings conference call can be heard today, Tuesday, November 14, 2006, at 5:00 p.m. Eastern Time at www.supremeind.com.

Supreme Industries, Inc.
2581 East Kercher Road • PO Box 237 • Goshen, IN 46528

About Supreme
Supreme Industries, Inc. (STS) is a nationwide manufacturer of specialized truck bodies produced to the specifications of its customers. Supreme also manufactures the StarTrans® line of special-purpose “shuttle-type” buses. The Company’s transportation equipment products are used by a wide variety of industrial, commercial, law enforcement and Homeland Security customers.

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.

CONTACT:

Supreme Industries, Inc.

Robert W. Wilson, 574-642-4888
President and Chief Operating Officer

—FINANCIAL TABLES FOLLOW—

Supreme Industries, Inc.
2581 East Kercher Road • PO Box 237 • Goshen, IN 46528

Supreme Industries, Inc. and Subsidiaries
Consolidated Statements of Income (Unaudited)

	Three Months Ended						Nine Months Ended
	Sept. 30, 2006			Sept. 24, 2005			Sept. 30, 2006			Sept. 24, 2005
Revenue:
Net sales	$	79,678,398		$	77,055,374		$	264,289,048		$	262,594,085
Cost of sales	70,122,112			68,797,402			234,596,119			230,464,233
Gross profit	9,556,286			8,257,972			29,692,929			32,129,852
Selling, general and administrative exp.	7,171,292			5,984,152			21,372,025			19,736,568
Other exp. (income)	(202,475		)	(231,583		)	(406,566		)	(531,801		)
Operating income	2,587,469			2,505,403			8,727,470			12,925,085
Interest expense	760,108			510,595			2,295,693			1,567,628
Income before income taxes	1,827,361			1,994,808			6,431,777			11,357,457
Income taxes	585,000			709,000			2,251,000			4,077,000
Net income	$	1,242,361		$	1,285,808		$	4,180,777		$	7,280,457
Earnings per share:
Basic	$	.10		$	.10		$	.33		$	.59
Diluted	.10			.10			.32			.57
Shares used in the computation of EPS:
Basic	12,702,632			12,561,453			12,701,639			12,379,668
Diluted	12,835,523			12,948,791			12,888,703			12,792,411
Cash dividends per share	$	.095		$	.095		$	.285		$	.165

Supreme Industries, Inc. and Subsidiaries
Consolidated Balance Sheets

	Sept. 30, 2006		Dec. 31, 2005
	(Unaudited)
Assets
Current assets	$	89,886,986	$	88,609,777
Property, plant and equipment, net	48,149,186		47,457,713
Intangible assets, net	1,460,569		735,014
Other assets	621,003		549,350
Total assets	$	140,117,744	$	137,351,854
Liabilities
Current liabilities	$	27,684,683	$	27,819,756
Long-term debt	33,538,950		31,378,367
Deferred income taxes	3,053,275		2,988,275
Total liabilities	64,276,908		62,186,398
Total stockholders’ equity	75,840,836		75,165,456
Total liabilities and stockholders’ equity	$	140,117,744	$	137,351,854

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Supreme Industries, Inc.
2581 East Kercher Road • PO Box 237 • Goshen, IN 46528

EX-99.2

Exhibit 99.2

Supreme Industries Q3 2006 Conference Call / Webcast Script

Operator:

Good afternoon and welcome to the Supreme Industries third-quarter and nine-month 2006 conference call. Before we introduce your host, let me remind you that certain statements made on today’s call will be predictive and are intended to be made as “forward-looking” within the safe harbor protections of the Private Securities Litigation Reform Act of 1995. Although the Company believes that its forward-looking statements are based on reasonable assumptions, such statements are subject to risks and uncertainties, which could cause results to differ materially. Important factors that could cause actual results to differ materially from those in the forward-looking statements are set forth in the Company’s reports on Form 10-K and 10-Q, and news releases filed with the Securities and Exchange Commission. All reports and news releases are available on Supreme’s website at www.supremeind.com. Today’s conference call is being broadcast live on Supreme’s website. At the conclusion of the call, it will be archived and available for replay for 30 days. At this time, I’d like to introduce your host for today’s call: Supreme Industries President and Chief Operating Officer Robert Wilson. Please go ahead Mr. Wilson…

Bob Wilson:

Thank you, Ryan. Good afternoon everyone. Thank you for joining us for today’s conference call to discuss Supreme’s 2006 third-quarter and nine-month financial results. The press release was issued earlier today. If you need a copy, please call Supreme Investor Relations at 574-228-4130 and a copy will be forwarded to you.

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I am joining you this afternoon from our Oregon location. Christy Miller, our Vice President of Manufacturing and Jeff Mowery, our CFO, are also on the line from our Corporate Office in Indiana. I will be providing a financial overview of the quarter and a glimpse at the balance of the year. After that, we’ll open up the call to any questions you may have.

Let’s begin with a snapshot of the third-quarter and nine-month highlights:

·Revenues for the seasonally weak third-quarter—as well as those of the first nine months of 2006—eclipsed last year’s record results, reaching new all-time highs.

·Strong demand within the Company’s core dry freight product line for the third quarter and nine-months was supported by a year-over-year increase in sales from our StarTrans Bus Division, which helped to offset a decrease in fleet customer contracts as compared to 2005.

·Our order book is strong, with backlog up more than nine percent from last year’s third-quarter end. A portion of this increase may be related to customers making purchases prior to the more-stringent diesel engine emission standards that take effect in 2007.

·Gross margin improved during the quarter, expanding 127 basis points; however, this was primarily due to a $1.9 million net benefit related to a favorable physical inventory. Gross margin was 12.0 percent of net sales during the quarter, compared with 10.7 percent in last year’s third quarter.

Supreme’s record net sales of $79.7 million for the three months ended September 30, 2006, represented a 3.4 percent increase from last year’s

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third-quarter record of $77.1 million. Net sales for the 2006 nine-months rose $1.7 million to $264.3 million versus the comparable prior-year period.

The sales improvement reflects:

·Increased unit shipments in our StarTrans Bus division for the nine months,

·Increased unit shipments of our Dry Freight Van bodies during the third quarter, possibly due to accelerated purchasing by customers buying 2006 chassis prior to the more stringent diesel engine emission standards becoming effective in 2007, and

·a $2.6 million sales contribution from our newly acquired Pony Xpress operations.

As we take a closer look at gross profit, it’s apparent that without the favorable inventory adjustment, only a portion of which belongs in the third quarter, we did not achieve our desired levels of profit margin.  Significantly higher material, labor and overhead costs were experienced during the third quarter of 2006 versus the third quarter of 2005.  As we mentioned during last quarter’s conference call, we implemented price increases in late April and again in August and, although we began to benefit from these price increases in the third quarter, the benefit certainly was not enough to overcome these higher costs.  We continue our efforts to monitor and manage all of our costs knowing full-well that there is not unlimited price elasticity in our marketplace, and we must continue to distinguish ourselves from the competition with superior quality, timely delivery, and outstanding service. We will continue to work through lower margin orders during the fourth quarter and must reduce operating costs to successfully return to expected profit margins.

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Selling, general and administrative expenses increased to $7.2 million in the 2006 third quarter from $6.0 million for the same period last year. For the 2006 nine-month period, SG&A rose to $21.4 million from $19.7 million for the same prior-year period. The increases reflected a reduction in cooperative marketing funds we received from our chassis manufacturers, expenses as a result of the February 2006 acquisition of Pony Xpress, and the addition of new sales positions to promote our expanding product line.

In the third quarter, interest expense was $.8 million versus $.5 million in the same prior-year period; and for the nine-months, increased to $2.3 million from $1.6 million a year ago. The higher interest expense resulted from higher short-term interest rates, finance charges incurred on our consigned chassis inventory and, to a lesser extent, additional borrowings.

Supreme’s effective income tax rate was 35.0 percent for the nine months just ended, slightly lower than the 35.9 percent for the year-ago nine-month period.

Net income was $1.2 million in the most recent quarter, down from $1.3 million in 2005. Diluted earnings per share were flat at $.10. For the nine months, net income was $4.2 million versus the $7.3 million reported for the first nine months of 2005.  The primary reason for the lower earnings was due to higher operating costs and the delay in realizing the benefit of our selling price increases, as previously discussed.

Capital expenditures of $3.9 million for the nine-months included the purchase of a manufacturing plant located in White Pigeon, Michigan, for the expansion of the recently acquired operations of Pony Xpress and the purchase of an additional manufacturing facility in Ligonier, Indiana. Capital

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expenditures are expected to be down modestly this year compared with 2005.

Turning to the balance sheet, shareholders’ equity improved to $75.8 million, or $5.97 per share, at September 30, 2006. At quarter-end, working capital totaled $62.2 million compared with $60.8 million last year. The working capital ratio at September 30, 2006, was approximately 3.2 to 1, while long-term debt as a percentage of total capitalization was about 24 percent.

Product development highlights include significant progress on our fiberglass “Astro Body” prototype, a joint project with General Motors. The Astro Body passed a crash test at the end of October, and all required product validations have now been achieved. Additionally, a durability test at the Bosch Test Track, which was conducted for warranty purposes, has been successfully completed.  Production of the Astro Body is anticipated to begin in late 2006 / early 2007.

Supreme presented two new bus products at a large show in Chicago last month—our “Tourliner” and our cross-functional “Activity” bus. Attendance at the show was strong and our products were not only well received, but generated $1.9 million in sales orders as a direct result of the show.

Additionally, Supreme has partnered with John Deere and GMICT, producers of the General Motors Isuzu Low Cab-Forward chassis, to launch the “John Deere Collection”, a collection of truck bodies for the landscaping and Green Industry. Supreme’s VanScaper, Landscaper, and Stake bodies have been specially upfitted and painted “John Deere Green” for this program, which runs through the first quarter of 2007. Launched just a few weeks ago at the Green Industry Expo show, the John Deere program is being supported via GMICT commercial truck dealers, direct marketing to potential buyers, and a special truck-buying program for John Deere dealers.

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We are enthusiastic about the excellent reception for our recently introduced products, which bodes well for future sales.

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