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): April 25, 2013
SUPREME INDUSTRIES, INC.
(Exact name of registrant as specified in its charter)
Delaware |
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1-8183 |
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75-1670945 |
(State of incorporation) |
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(Commission File No.) |
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(IRS Employer Identification No.) |
P.O. Box 237
2581 E. Kercher Road
Goshen, Indiana 46528
(Address of principal executive offices) (Zip Code)
Registrants 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))
Item 2.02 Results of Operations and Financial Condition.
On April 25, 2013, Supreme Industries, Inc. (the Company) issued a press release (the Press Release) announcing its financial results for the first quarter of 2013. 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. The foregoing description of the Press Release is qualified in its entirety by reference to Exhibit 99.1.
Pursuant to General Instruction B.2 of Form 8-K, the information in this Current Report on Form 8-K, including the exhibit, 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 it 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.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Pursuant to General Instruction B.2 of Form 8-K, the following exhibit is furnished with this Form 8-K.
99.1 Press Release of the Company dated April 25, 2013.
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.
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SUPREME INDUSTRIES, INC. | |
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Date: April 26, 2013 |
By: |
/s/ Matthew W. Long |
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Matthew W. Long |
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Interim CEO and Chief Financial Officer |
Exhibit 99.1
FOR IMMEDIATE RELEASE
Supreme Industries Reports Significantly Higher
First-Quarter Gross Margin and Pre-Tax Income
Gross Margin Expands 230 Basis Points
Pre-Tax Income Up 37%, Reaches $3.4 Million
Goshen, Ind.Apr. 25, 2013Supreme Industries, Inc. (NYSE MKT: STS), a leading manufacturer of specialized commercial vehicles including truck bodies, shuttle buses and armored vehicles, today announced improved pre-tax earnings for its first quarter ended March 30, 2013.
2013 First-Quarter Results
Consolidated net sales of $65.9 million for the first quarter declined 8.7% from $72.2 million in last years comparable period. The truck division, which represented 76% of total net sales, recorded higher sales in the quarter compared with the prior year as the Company increased its retail sales offsetting the industry-wide decline in rental fleet orders during the first quarter of 2013. Bus sales declined $7.4 million during the first quarter of 2013 due to persisting competitive pressure and discounting incentives, particularly on state and municipal orders.
Gross margin as a percentage of sales increased to 17.3%, compared with 15.0% in last years comparable period. Despite lower net sales volume, first-quarter gross profit rose to $11.4 million, up from $10.8 million, in 2012. The significant gross margin improvement reflected a favorable product mix, pricing disciplines and efficiency improvements at the Companys manufacturing facilities.
Supreme reported that pre-tax income increased 37.2% to $3.4 million compared with $2.5 million in 2012s first quarter. For the first quarter of 2013, the Company recorded income tax expense at an effective tax rate of 32.3%. Supreme reported no tax provision in the first quarter of 2012 resulting from the utilization of previously unrecognized net operating loss carryforwards.
Net income for the first quarter of 2013 was $2.3 million, or $0.15 per diluted share, compared with net income of $2.5 million, or $0.16 per diluted share, last year. Applying the 2013 effective tax rate to results in the first quarter of 2012, would have resulted in net income of $1.7 million, or $0.11 per diluted share.
Supremes Chief Financial Officer and Interim Chief Executive Officer Matthew Long said: The truck divisions strong performance was a significant highlight during the years opening quarter. By responding to softer demand from fleet operators and increasing retail sales, we not only achieved higher year-over-year sales of trucks, but also substantial margin improvement. In addition to the 230 basis points of margin expansion versus last years first quarter, margins widened more than 400 basis points sequentially since the fourth quarter of 2012.
Working capital was $41.7 million at March 30, 2013, up from $38.6 million at Dec. 29, 2012. The working capital ratio was 2.4 to 1 versus 2.7 to 1 for the respective dates. During the quarter, Supreme invested $1.7 million in facilities and equipment primarily to complete capital projects initiated in 2012. Total debt increased to $14.8 million at quarter end, compared with $14.1 million at
Supreme Industries, Inc.
2581 East Kercher Road · PO Box 463 · Goshen, IN 46527
Dec. 29, 2012. Stockholders equity increased 3.6% to $69.6 million, or book value of $4.55 per share, at March 30, 2013, compared with $67.2 million, or book value of $4.41 per share, at Dec. 29, 2012. Net cash used by operating activities for the first quarter of 2013 totaled $0.3 million, compared with $2.6 million in the first quarter of 2012.
As disclosed in 2012s second quarter, the Company self-identified an immaterial error related to revenue recognition. Accordingly, its first quarter consolidated financial statements reflect the correction of the immaterial error.
Conference Call Information
A conference call will be held tomorrow, April 26, 2013, at 9 a.m. ET to review the first-quarter results. To participate in the live call, dial 877-317-6789 (International: 412-317-6789) 10 minutes before the call begins, or 8:50 a.m. ET. The conference ID is 10027941. The call also will be streamed live and can be accessed at http://www.SupremeInd.com. Those unable to participate in the live conference call may access a replay, which will be available on Supremes website for approximately 30 days.
To be added to Supreme Industries email distribution list, please click on the link below:
http://www.clearperspectivegroup.com/clearsite/sts/emailoptin.html.
About Supreme Industries
Supreme Industries, Inc. (NYSE MKT: STS), is a nationwide manufacturer of specialized truck bodies produced to the specifications of its customers. Supreme also manufactures special-purpose shuttle-type buses and armored vehicles. The Companys transportation equipment products are used by a wide variety of industrial, commercial and law enforcement customers.
News releases and other information on the Company are available on the Internet at:
http://www.supremeind.com or http://www.b2i.us/irpass.asp?BzID=1482&to=ea&s=0
Other than historical facts contained herein, the matters set forth in this news release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act, as amended, and reflect the view of management with respect to future events. When used in this report, words such as believe, expect, anticipate, estimate, intend, plan and similar expressions, as they relate to Supreme or its plans or operations, identify forward-looking statements. Such forward-looking statements are based on assumptions made by, and information currently available to, management. Although management believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that the expectations reflected in such forward-looking statements are reasonable, and it can give no assurance that such expectations will prove to be correct. Important factors that could cause actual results to differ materially from such expectations include, without limitation, an economic slowdown in the specialized vehicle industry, limitations on the availability of chassis on which Supremes product is dependent, availability of raw materials, raw material cost increases and severe interest rate increases. Furthermore, Supreme can provide no assurance that any raw material cost increases can be passed on to its customers through implementation of price increases for Supremes products. The forward-looking statements contained herein reflect the current view of 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 Supreme. Supreme 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:
Investor and Media Contact:
Matthew J. Dennis, CFA
Supreme Investor Relations
574-228-4130
# # #
FINANCIAL RESULTS FOLLOW
Supreme Industries, Inc. and Subsidiaries
Consolidated Statements of Income
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Three Months Ended |
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March 30, |
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March 31, |
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2013 |
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2012 |
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Net sales |
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$ |
65,880,891 |
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$ |
72,166,821 |
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Cost of sales |
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54,472,790 |
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61,351,104 |
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Gross profit |
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11,408,101 |
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10,815,717 |
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Selling, general and administrative expenses |
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8,575,760 |
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8,548,390 |
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Other income |
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(713,391 |
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(478,948 |
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Operating income |
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3,545,732 |
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2,746,275 |
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Interest expense |
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142,318 |
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264,749 |
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Income before income tax |
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3,403,414 |
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2,481,526 |
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Income tax expense* |
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1,099,608 |
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Net income |
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$ |
2,303,806 |
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$ |
2,481,526 |
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Income per share: |
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Basic |
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$ |
0.15 |
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$ |
0.16 |
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Diluted |
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0.15 |
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0.16 |
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Shares used in the computation of income per share: |
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Basic |
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15,250,784 |
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15,161,149 |
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Diluted |
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15,544,353 |
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15,380,960 |
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* The Company reported no tax provision in the first quarter of 2012, resulting from the utilization of previously unrecognized net operating loss carryforwards.
Supreme Industries, Inc. and Subsidiaries
Consolidated Balance Sheets
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March 30, |
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December 29, |
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2013 |
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2012 |
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Assets |
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Current assets |
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$ |
71,747,864 |
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$ |
61,007,286 |
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Property, plant and equipment, net |
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43,750,476 |
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42,937,988 |
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Other assets |
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1,127,242 |
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1,142,809 |
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Total assets |
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$ |
116,625,582 |
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$ |
105,088,083 |
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Liabilities |
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Current liabilities |
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$ |
30,005,346 |
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$ |
22,363,408 |
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Long-term liabilities |
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17,036,320 |
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15,561,793 |
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Total liabilities |
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47,041,666 |
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37,925,201 |
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Total stockholders equity |
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69,583,916 |
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67,162,882 |
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Total liabilities and stockholders equity |
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$ |
116,625,582 |
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$ |
105,088,083 |
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