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):

February 15, 2007

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):

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

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

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

o Pre-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 February 15, 2007, Supreme Industries, Inc. (the “Company”) issued a press release (the “Press Release”) announcing its financial results for the fourth quarter and full-year ended December 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 February 15, 2007, the Company held a conference call to discuss its financial results for its fourth quarter and full-year ended December 30, 2007.  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 9.01  Financial Statements and Exhibits.

(d)          Exhibits.

	The following exhibits are furnished with this Form 8-K:
99.1		Press Release of the Company dated February 15, 2007.
99.2		Transcript of conference call held by the Company on February 15, 2007.

2

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:	February 20, 2007	By:	/s/ Jeffery D. Mowery
			Jeffery D. Mowery
			Vice President and Chief Financial Officer
			(Principal Financial and Accounting Officer)

3

Exhibit Index

Exhibit No.	Description
99.1	Press Release of the Company dated February 15, 2007.
99.2	Transcript of conference call held by the Company on February 15, 2007.

4

EX-99.1

Exhibit 99.1

Supreme Industries Reports

Fourth-Quarter and Full-Year 2006 Financial Results

Goshen, Ind.—February 15, 2007—Supreme Industries, Inc. (AMEX: STS), a leading manufacturer of specialized transportation products, including truck bodies and shuttle buses, today announced financial results for its fourth quarter and full year ended December 30, 2006.

The Company reported fourth-quarter and full-year 2006 net sales of $76.5 million and $340.7 million, respectively. This compares with last year’s record net sales of $78.7 million and $341.3 million, respectively.

During 2006, an 18 percent reduction in fleet sales was mostly offset by a three percent increase in net sales of the Company’s core dry freight product line, and a six percent increase in net sales of Supreme’s StarTrans® Bus Division. Order backlog at December 30, 2006, was $97.5 million, compared with $90.3 million at 2005 year-end—an increase of eight percent.

Gross profit for the fourth quarter of 2006 decreased to $7.9 million, or 10.3 percent of net sales, compared with $9.0 million, or 11.5 percent of net sales, for the same quarter last year. For the full year, gross profit was $37.6 million, versus $41.1 million a year ago. Gross margin was 11.0 percent of net sales in 2006 versus 12.1 percent of net sales in 2005. The Company continued to experience higher raw material costs and increases in workers’ compensation costs, repairs and maintenance plus utilities, which adversely impacted margins.  Additionally, the fourth quarter and full year results were adversely impacted by product development costs and their corresponding production startup costs.  However, the Company expects to benefit from these investments during 2007.

Net income for the year’s final quarter was $.4 million, or $.03 per diluted share, compared with $1.1 million, or $.08 per diluted share, in the corresponding period of 2005. Full-year net income was $4.6 million, or $.36 per diluted share, versus $8.3 million, or $.65 per diluted share, for 2005.

Commenting on the year, President Robert W. Wilson said, “2006 was a challenging year for the industry and Supreme as higher material costs and the lag in realizing the impact of price increases restrained profit margins. Price increases instituted in the second and third quarters of 2006 have worked their way through our backlog and we expect overall results to improve in 2007.”

Selling, general and administrative (SG&A) expenses were lower in the 2006 fourth quarter and higher for the full year, compared with 2005. Full-year increases reflected the addition of new sales positions to promote the Company’s expanding product line, a reduction in cooperative marketing funds the Company receives from chassis manufacturers and expenses resulting from the February 2006 acquisition of Pony Xpress.

Interest expense rose for the quarter and year versus 2005, reflecting higher short-term interest rates, finance charges incurred on consigned chassis inventory and increased borrowings. Interest expense for the final quarter of 2006 was $.8 million, compared with $.6 million for last year’s fourth quarter. For the full year, interest expense totaled $3.1 million, or 0.9 percent of net sales, versus 2005’s $2.1 million, or 0.6 percent of net sales.

The 2006 fourth-quarter operating results were favorably impacted by a $259,000 income tax benefit, which resulted from the true-up of the Company’s estimated effective federal and state tax rates during the year to the actual effective tax rates for the 2006 fiscal year.

Stockholders’ equity was $75.2 million, or $5.92 per share, at December 30, 2006. At year-end, working capital totaled $67.5 million, compared with $60.8 million at year-end 2005. The working capital ratio at December 30, 2006, was 3.7 to 1, while long-term debt as a percentage of the Company’s total assets was 27.2 percent.

Wilson added: “While industry challenges persist, we are optimistic regarding Supreme’s outlook. Increased breadth of product line, exposure to faster growing markets, and our expanding relationship with General Motors through our new fiberglass “Astro Body” product all bode well for the future.”

Supreme Industries yesterday announced a cash dividend on its outstanding Class A and Class B Common Stock. Stockholders of record as of February 27, 2007, will receive $.095 for each share owned on that date, payable on March 5, 2007. This cash dividend is the 14th consecutive quarterly cash dividend since the Company commenced the payment of regular cash dividends in October of 2003.

A live webcast of Supreme Industries’ earnings conference call can be heard today, Thursday, February 15, 2007, at 4:30 p.m. Eastern Time at http://www.supremeind.com. Those unable to participate in the live conference call may access a replay available on the Company’s website for 30 days, or until March 16, 2007.

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. and Subsidiaries

Consolidated Statements of Income

	Three Months Ended						Year Ended
	December 30,			December 31,			December 30,			December 31,
	2006			2005			2006			2005
Revenue:
Net sales	$	76,457,741		$	78,658,767		$	340,746,789		$	341,252,852
Cost of sales	68,586,130			69,650,522			303,182,249			300,114,755
Gross profit	7,871,611			9,008,245			37,564,540			41,138,097
Selling, general and administrative expenses	7,111,066			7,401,005			28,483,091			27,137,573
Other income, net	(153,479		)	(274,204		)	(560,045		)	(806,005		)
Operating income	914,024			1,881,444			9,641,494			14,806,529
Interest expense	759,033			561,521			3,054,726			2,129,149
Income before income taxes	154,991			1,319,923			6,586,768			12,677,380
Income taxes (benefit)	(259,000		)	259,000			1,992,000			4,336,000
Net income	$	413,991		$	1,060,923		$	4,594,768		$	8,341,380
Earnings per share (EPS):
Basic	$	.03		$	.08		$	.36		$	.67
Diluted	.03			.08			.36			.65
Shares used in the computation of EPS:
Basic	12,705,211			12,667,949			12,696,598			12,455,818
Diluted	12,834,133			12,987,505			12,872,638			12,835,405
Cash dividends per share	$	.095		$	.095		$	.38		$	.26

Supreme Industries, Inc. and Subsidiaries

Consolidated Condensed Balance Sheets

	December 30,		December 31,
	2006		2005
Assets
Current assets	$	92,636,513	$	88,609,777
Property, plant and equipment, net	48,389,483		47,457,713
Intangible assets, net	1,420,260		735,014
Other assets	620,064		549,350
Total assets	$	143,066,320	$	137,351,854
Liabilities
Current liabilities	$	25,129,594	$	27,819,756
Long-term debt	38,863,229		31,378,367
Deferred income taxes	3,864,816		2,988,275
Total liabilities	67,857,639		62,186,398
Total stockholders’ equity	75,208,681		75,165,456
Total liabilities and stockholders’ equity	$	143,066,320	$	137,351,854

EX-99.2

Exhibit 99.2

Supreme Industries Q4 2006 Conference Call Script

Operator:

Good afternoon and welcome to the Supreme Industries fourth-quarter and full-year 2006 conference call. Before we begin let me remind you that some 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:

Good afternoon and thank you for joining us for today’s conference call to discuss Supreme’s fourth-quarter and full-year 2006 financial results. The press release was issued earlier today. If you need a copy please call Supreme Investor Relations at 574-228-4130 and one will be forwarded to you.

I’ll start with a brief discussion of the year’s product highlights, after which I’ll provide a financial overview of the 2006 closing quarter and full year, and a look at the year ahead. We will then open up the call for your questions.

A major highlight of 2006 was Supreme’s joint project with General Motors. GM discontinued the Astro Van and wanted to explore a replacement product for their commercial users.  Thus the “Astro Body”, Supreme’s aerodynamic fiberglass body, was

developed and put into production this past November. The “Astro Body” is mounted on either a Chevrolet Colorado chassis or a GMC Canyon chassis and has already attracted the attention of large commercial users as well as GM dealers, and we are looking forward to benefiting from our first full year of sales from this product in 2007.

Not to be outdone, our StarTrans® Bus Division introduced two exciting new products during 2006: the “TourLiner”, a luxury tour bus seating up to 39 passengers, and the “Activity Bus”, a mini-shuttle bus with a wide variety of multi-purpose applications.

Hybrid electric buses represent the next step in our product-development activities. We have partnered with Azure Dynamics, an industry leader in developing hybrid electric and electric power trains for commercial vehicles. The initial product from this partnership is the CitiBus Hybrid Senator HD, or more simply, the “CitiBus.”

Moving on to the year’s financial review, frankly we were disappointed with our overall performance, which reflected the effect of persistent margin pressures on profitability and a lag in realizing the effects of price increases.  Additionally, the development costs for the previously mentioned new products coupled with the corresponding production start-up costs adversely impacted 2006. However, we expect to benefit from these product investments as we move into 2007.

Revenues for 2006 were essentially flat compared to 2005’s record high of $341 million, with gross margin coming in lower at 11 percent of net sales versus 2005’s 12.1 percent.  Net income was $4.6 million, compared with last year’s $8.3 million.

Our order backlog entering 2007 was stable. At December 31, backlog stood at $97.5 million, including $5.9 million in orders for our new Silver Crown motor home product line.

Continuing our financial review, gross profit for the fourth quarter of 2006 decreased to $8.0 million, or 10.3 percent of net sales, compared with $9.0 million, or 11.5 percent of net sales for the same quarter in 2005. For full-year 2006, gross profit was $37.6 million, down from $41.1 million a year ago.

Selling, general and administrative expenses were $7.1 million, or 9.3 percent of net sales, in the fourth quarter, versus $7.4 million, or 9.4 percent of net sales in the fourth quarter of 2005. For the full year, SG&A expenses totaled $28.5 million, or 8.4 percent of net sales, compared with $27.1 million, or 8.0 percent of net sales a year ago. This increase reflected the addition of new sales positions to promote the Company’s expanding product line, less cooperative marketing funds the Company receives from chassis manufacturers, plus expenses resulting from the acquisition of Pony Xpress, known as our Silver Crown subsidiary.

Interest expense rose in the fourth quarter and for the full-year versus the same periods in 2005. These increases reflected higher short-term interest rates, finance charges incurred on consigned chassis inventory and, to a lesser extent, additional borrowings. 2006 interest expense for the year’s final quarter was $.8 million, compared with $.6 million for last year’s fourth quarter, and for the full year, reached $3.1 million versus 2005’s $2.1 million.

The Company’s effective income tax rate was 30.2 percent for 2006, compared with 34.2 percent for 2005. The reduction in our effective income tax rate was due to the tax benefits from our captive insurance subsidiary, the domestic production deduction and higher levels of research and development tax credits.

Turning to the balance sheet, stockholders’ equity was $75.2 million, or $5.92 per share, at December 30, 2006. Working capital at year-end totaled $67.5 million, compared with $60.8 million at year-end 2005. The working capital ratio at December 30, 2006, was 3.7 to 1, while long-term debt as a percentage of the Company’s total assets was 27.5 percent.

Capital expenditures were $5.2 million in 2006, down from $6.4 million in the prior year. Significant expenditures during 2006 included $1.1 million to purchase and equip a manufacturing facility for the Company’s Silver Crown subsidiary, $0.4 million to expand the Company’s Fiberglass Reinforced production facility, and $0.5 million to acquire 23 acres of land adjacent to our Indiana manufacturing facilities. The balance of capital expenditures was expended throughout the organization primarily to replace or upgrade manufacturing equipment.

Looking ahead into 2007, we expect the business environment will remain competitive and challenging. However, our product lines are well diversified and our geographic presence is broad, helping to mitigate volatility in any one segment of our business. We believe that, barring unforeseen fluctuations in raw material costs, our overall performance in 2007 will improve versus this past year due to implementation of our cost containment and cost reduction initiatives, and further realization of the price increases implemented during 2006.

This concludes our formal remarks. We would now like to open the call for any questions you may have.