EX-99.1 2 ex_106468.htm EXHIBIT 99.1 ex_106468.htm

Exhibit 99.1

 

 

 

 

Spartan Motors Delivers Strong Fourth Quarter and Full Year 2017 Results

 

 

●

Fourth Quarter EPS up 133% to $0.07, Adjusted EPS up 175% to $0.11

 

 

●

Full Year EPS up 84% to $0.46, Adjusted EPS up 34% to $0.43

 

CHARLOTTE, Mich., March 1, 2018 - Spartan Motors, Inc. (NASDAQ: SPAR) (“Spartan” or the “Company”), a leader in specialty chassis and vehicle design, manufacturing and assembly, today reported operating results for the fourth quarter and full year periods ending December 31, 2017.

 

Full Year 2017 Highlights

 

For the full year 2017 compared to the full year 2016:

 

●

Sales increased $116.3 million, or 19.7%, to $707.1 million from $590.8 million

 

●

Net income improved $7.3 million, or 85.2%, to $15.9 million, or $0.46 per share, from $8.6 million, or $0.25 per share

 

●

Adjusted EBITDA increased 37.0% to $31.3 million, or 4.4% of sales, from $22.9 million, or 3.9% of sales

 

●

Adjusted net income improved 34.5% to $14.9 million, or $0.43 per share, from $11.1 million, or $0.32 per share

 

●

Emergency Response segment was profitable – achieving $3.2 million of adjusted EBITDA

 

Fourth Quarter 2017 Highlights

 

For the fourth quarter of 2017 compared to the fourth quarter of 2016:

 

●

Sales increased $35.2 million, or 24.1%, to $181.1 million from $145.9 million

 

●

Gross profit margin improved 130 basis points to 13.6% of sales from 12.3% of sales

 

●

Net income improved $1.5 million, or 158.9%, to $2.4 million, or $0.07 per share, from $0.9 million, or $0.03 per share

 

●

Adjusted EBITDA increased 118.3% to $9.3 million, or 5.1% of sales, compared to $4.3 million, or 2.9% of sales

 

●

Adjusted net income improved 156.4% to $3.9 million, or $0.11 per share from $1.5 million, or $0.04 per share

●

Emergency Response segment was profitable – achieving $2.7 million of adjusted EBITDA

 

“With our 2017 fourth quarter net income more than doubling, which also marks our eighth consecutive profitable quarter on an adjusted basis, Spartan has successfully completed its turnaround and is now focused on its growth strategy as we move into 2018 and beyond,” said Daryl Adams, Spartan President and Chief Executive Officer. “We can take pride in the strong performance we posted throughout the year, which was based on the actions we took to transition our company to a leader in purpose-built specialty vehicles that is focused on performance and innovation.”

 

Spartan Motors, Inc.

 
 

 

Full Year 2017 Segment Results

 

For the full year 2017 compared to the full year 2016:

 

Fleet Vehicles and Services (FVS)

 

FVS segment sales decreased 9.8% to $251.1 million from $278.4 million. Revenues declined primarily due to the timing of a large last mile delivery upfit order that did not reoccur in 2017.

 

Adjusted EBITDA decreased $4.2 million to $27.0 million, or 10.7% of sales, from $31.2 million, or 11.2% of sales, a year ago, primarily due to the nonrecurring last mile delivery upfit order, which was partially offset by operational improvements.

 

The Segment backlog at December 31, 2017 totaled $267.7 million, up 198.9%, compared to $89.5 million at December 31, 2016 as a result of the previously announced multi-year contract with the United States Postal Service (USPS).

 

Emergency Response (ER)

 

ER segment sales increased 65.5% to $302.9 million from $183.0 million. The sales increase reflects increased product optimization resulting from the successful integration of Smeal and rationalization of the Company’s dealer network.

 

Adjusted EBITDA increased $10.7 million to $3.2 million, or 1.1% of sales, from an adjusted EBITDA loss of $7.5 million a year ago. The increase was primarily the result of increased sales, improved operational performance and warranty cost reduction. Adjusted EBITDA loss in 2016 included adjustments totaling $3.5 million in legacy product recalls.

 

The Segment backlog at December 31, 2017 totaled $233.6 million, up 67.0%, compared to $139.9 million at December 31, 2016.

 

Specialty Chassis & Vehicles (SCV)

 

SCV segment sales increased 17.9% to $158.8 million from $134.8 million. Sales of motorhome chassis increased 27.1% to $124.6 million from $98.0 million, primarily due to increased motorhome shipments year-over-year as a result of market share gains.

 

Adjusted EBITDA increased $5.8 million to $14.1 million, or 8.9% of sales, from $8.3 million, or 6.2% of sales, a year ago, primarily due to increased sales and improved operational performance.

 

The Segment backlog at December 31, 2017 totaled $33.8 million, up 68.7%, compared to $20.0 million at December 31, 2016, as a result of increased motorhome orders.

 

“The performance of each of our business segments was powerful in 2017, but perhaps the most dramatic performance was the turnaround in ER,” continued Adams. “With the integration of Smeal, we were able to grow top-line ER revenue by 66% while improving adjusted EBITDA by nearly $11 million. We continued to make good progress in SCV, with solid growth in revenues and adjusted EBITDA with the introduction of new innovative products and platforms to expand our addressable market and market share in motorhomes. In the FVS business, we saw some topline headwinds in 2017 relating to the timing of follow-on last-mile delivery orders, but we are encouraged with the prospect of significant growth in 2018 with normalized order flow and the addition of the USPS contract, the largest in Spartan’s history.”   

 

Page 2 of 15
 

 

2018 Outlook

 

“We are proud of our financial performance in 2017, which will provide a sound foundation for future long-term growth, increased shareholder value and an acceleration of earnings growth in 2018,” said Rick Sohm, Chief Financial Officer of Spartan Motors. “Our strong financial position will enable Spartan to invest in our future growth in 2018 and beyond by expanding R&D efforts for new product innovations and enhancing our operational competencies, exploring alternative fuel technologies and expanding our manufacturing capabilities at our Ephrata, Pennsylvania facility to meet the growing last mile delivery demand. With each of our business segments now profitable, we expect our incremental investments and the new USPS order to drive additional revenues, positioning Spartan to achieve its financial objectives in 2020.”

 

Outlook for full year 2018 is expected to be as follows:

 

 

●

Revenue to be in the range of $790.0 - $815.0 million
 

●

Net income of $18.8 - $21.0 million
 

●

Adjusted EBITDA of $39.0 - $42.0 million

 

●

Effective tax rate of approximately 28%
 

●

Earnings per share of $0.54 - $0.60, assuming approximately 35.3 million shares outstanding
 

●

Adjusted earnings per share of $0.56 - $0.62

 

Adams concluded, “It’s an exciting time for Spartan Motors, as we have worked as a team to bring significant change and improved financial performance to our Company. Exceeding our targets for the fourth quarter and full year 2017 is about more than hitting our numbers.  It’s proof positive that the changes we made to execute the turnaround and position Spartan for a future of sustainable, profitable growth continue to pay dividends. We have a formula in place that has successfully driven operational improvements within each of our business units. We will continue to apply this winning formula, as we aggressively take the turn into growth mode. We are confident that the near-term investments we’ll make, coupled with the momentum achieved over the past two years, will have a positive impact in 2018 and beyond.”

 

 

Reconciliation of Non-GAAP Financial Measures

This release contains adjusted EBITDA (earnings before interest, taxes, depreciation and amortization), adjusted net income, adjusted earnings per share, forecasted adjusted EBITDA, and forecasted adjusted earnings per share, which are all non-GAAP financial measures. These non-GAAP measures are 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 items include expenses associated with restructuring actions taken to improve the efficiency and profitability of certain of our manufacturing operations, expenses related to product recall campaigns, non-cash charges related to the impairment of  assets, expenses related to business acquisition activities, the impact of the step-up in inventory value associated with the recent business acquisition, and the impact of the business acquisition on the timing of chassis revenue recognition.

 

Page 3 of 15
 

 

We present the non-GAAP measures adjusted EBITDA, adjusted net income and adjusted earnings per share because we consider them to be important supplemental measures 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. The presentation of adjusted net income and adjusted earnings per share enables investors to better understand our operations by removing the impact of tax adjustments, including the impact that our deferred tax asset valuation allowance that we recorded in 2015 has had on our tax expense and net income in 2015 and subsequent periods, the impact of a tax deduction for the write-off of an investment in a subsidiary, the impact of the Tax Cuts and Jobs Act on tax expense recorded in 2017, and other items that we believe are not indicative of our longer term operating trends. We believe these measures 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 these non-GAAP measures 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 these non-GAAP measures, when considered together with the corresponding GAAP financial measures and the reconciliations to those measures, provides investors with additional understanding of the factors and trends affecting our business than could be obtained in the absence of these disclosures.

 

Our management uses adjusted EBITDA to evaluate the performance of and allocate resources to our segments. In addition, non-GAAP measures are used by management to review and analyze our operating performance and, along with other data, as internal measures for setting annual budgets and forecasts, assessing financial performance, and comparing our financial performance with our peers. Adjusted EBITDA is also used, along with other financial and non-financial measures, for purposes of determining annual and long-term incentive compensation for our management team.

 

Page 4 of 15
 

 

Financial Summary (Non-GAAP)

(In thousands, except per share data)

(Unaudited)

 

   

Three Months Ended December 31,

    

Twelve Months Ended December 31,

  

Spartan Motors, Inc.

  

2017

    

% of

sales

    

2016

    

% of

sales

    

2017

    

% of

sales

    

2016

    

% of

sales

  

Net income

   $ 2,439       1.3 %   $ 942       0.6 %   $ 15,935       2.3 %   $ 8,610       1.5 %

Add (subtract):

                                                                

Restructuring

     52               224               1,252               1,095          

Intercompany chassis impact

     -               -               2,073               -          

Asset impairment

     -               -               -               406          

Acquisition inventory adjustment

     -               -               189               -          

Recall expense

     -               -               (368 )             3,457          

Joint venture expenses

     -               1               1               7          

Acquisition related expenses

     269               723               1,354               882          

Deferred tax asset adjustment

     2,569               (282 )             (3,260 )             (2,932 )        

Tax benefit of stock write-off

     (966 )             -               (966 )             -          

Tax effect of adjustments

     (506 )             (104 )             (1,323 )             (460 )        

Adjusted net income

   $ 3,857       2.1 %   $ 1,504       1.0 %   $ 14,887       2.1 %   $ 11,065       1.9 %
                                                                 

Net income

   $ 2,439       1.3 %   $ 942       0.6 %   $ 15,935       2.3 %   $ 8,610       1.5 %

Add (subtract):

                                                                

Depreciation and amortization

     2,602               2,161               9,937               7,903          

Taxes on income

     3,651               111               90               100          

Interest expense

     282               96               864               410          

EBITDA

   $ 8,974       5.0 %   $ 3,310       2.3 %   $ 26,826       3.8 %   $ 17,023       2.9 %
                                                                 

Add (subtract):

                                                                

Restructuring

     52               224               1,252               1,095          

Intercompany chassis impact

     -               -               2,073               -          

Asset impairment

     -               -               -               406          

Acquisition inventory adjustment

     -               -               189               -          

Recall expense

     -               -               (368 )             3,457          

Joint venture expenses

     -               1               1               7          

Acquisition related expenses

     269               723               1,354               882          

Adjusted EBITDA

   $ 9,295       5.1 %   $ 4,258       2.9 %   $ 31,327       4.4 %   $ 22,870       3.9 %
                                                                 

Diluted net earnings per share

   $ 0.07             $ 0.03             $ 0.46             $ 0.25          

Add (subtract):

                                                                

Restructuring

     -               -               0.04               0.03          

Intercompany chassis impact

     -               -               0.06               -          

Asset impairment

     -               -               -               0.01          

Acquisition inventory adjustment

     -               -               0.01               -          

Recall expense

     -               -               (0.01 )             0.10          

Acquisition related expenses

     0.01               0.02               0.04               0.03          

Deferred tax asset adjustment

     0.07               (0.01 )             (0.10 )             (0.09 )        

Tax benefit of stock write-off

     (0.03 )             -               (0.03 )             -          

Tax effect of adjustments

     (0.01 )             -               (0.04 )             (0.01 )        

Adjusted Diluted net earnings per share

  $ 0.11             $ 0.04             $ 0.43             $ 0.32          

 

Page 5 of 15
 

 

Financial Summary (Non-GAAP)

(In thousands, except per share data)

(Unaudited)

 

   

Three Months Ended December 31,

    

Twelve Months Ended December 31,

  
   

2017

    

2016

    

2017

    

2016

  
                                 

Total segment adjusted EBITDA

   $ 13,047     $ 6,545     $ 44,208     $ 32,029  

Add (subtract):

                                

Interest expense

     (282 )     (96 )     (864 )     (410 )

Depreciation and amortization

     (2,602 )     (2,162 )     (9,937 )     (7,903 )

Restructuring expense

     (52 )     (224 )     (1,252 )     (1,095 )

Acquisition expense

     (269 )     (723 )     (1,354 )     (882 )

Impact of chassis shipments to Smeal

     -       -       (2,073 )     -  

Recall expense

     -       -       368       (3,457 )

Impact of inventory fair value step-up

     -       -       (189 )     -  

Joint venture expenses

     -       (1 )     (2 )     (14 )

Asset impairment

     -       -       -       (406 )

NHTSA settlement

     -       -       -       -  

Unallocated corporate expenses

     (3,752 )     (2,287 )     (12,881 )     (9,159 )
                                 

Consolidated income before taxes

   $ 6,090     $ 1,052     $ 16,024     $ 8,703  

 

Page 6 of 15
 

 

 

Fleet Vehicles and Services Segment

(In thousands, unaudited)

 

   

Three Months Ended December 31,

  
   

2017

    

% of

sales

    

2016

    

% of

sales

  

Net income attributable to Fleet Vehicles and Services

   $ 4,933       7.6 %   $ 6,823       10.1 %

Add (subtract):

                                

Depreciation and amortization

     743               806          

Interest expense

     80               53          

Earnings before interest, taxes, depreciation and amortization

   $ 5,756       8.9 %   $ 7,682       11.4 %
                                 

Earnings before interest, taxes, depreciation and amortization

   $ 5,756             $ 7,682          

Restructuring charges

     -               -          

Adjusted earnings before interest, taxes, depreciation and amortization

   $ 5,756       8.9 %   $ 7,682       11.4 %

 

Emergency Response Vehicles Segment

(In thousands, unaudited)

 

   

Three Months Ended December 31,

  
   

2017

    

% of

sales

    

2016

    

% of

sales

  

Net income (loss) attributable to Emergency Response

   $ 2,004       2.6 %   $ (3,748 )     -7.9 %

Add (subtract):

                                

Depreciation and amortization

     631               507          

Taxes on income

     -               -          

Earnings (loss) before interest, taxes, depreciation and amortization

   $ 2,635       3.5 %   $ (3,241 )     -6.8 %
                                 

Earnings (loss) before interest, taxes, depreciation and amortization

   $ 2,635             $ (3,241 )        

Restructuring charges

     44               224          

Intercompany chassis impact

     -               -          

Recall expense

     -               -          

JV expenses

     -               1          

Adjusted earnings (loss) before interest, taxes, depreciation and amortization

   $ 2,679       3.5 %   $ (3,016 )     -6.4 %

 

Specialty Chassis and Vehicles Segment

(In thousands, unaudited)

 

   

Three Months Ended December 31,

  
   

2017

    

% of

sales

 

  

2016

    

% of

sales

  

Net income attributable to Specialty Chassis and Vehicles

   $ 4,232       10.3 %   $ 1,659       5.1 %

Add (subtract):

                                

Depreciation and amortization

     373               219          

Earnings before interest, taxes, depreciation and amortization

   $ 4,605       11.2 %   $ 1,878       5.7 %
                                 

Earnings before interest, taxes, depreciation and amortization

   $ 4,605             $ 1,878          

Restructuring charges

     7               -          

Adjusted earnings before interest, taxes, depreciation and amortization

   $ 4,612       11.2 %   $ 1,878       5.7 %

 

 

Page 7 of 15
 

 

Fleet Vehicles and Services Segment

(In thousands, unaudited)

 

   

Twelve Months Ended December 31,

  
   

2017

    

% of

sales

    

2016

    

% of

sales

  

Net income attributable to Fleet Vehicles and Services

   $ 22,797       9.1 %   $ 27,890       10.0 %

Add (subtract):

                                

Depreciation and amortization

     3,361               3,185          

Interest expense

     156               162          

Earnings before interest, taxes, depreciation and amortization

   $ 26,314       10.5 %   $ 31,237       11.2 %
                                 

Earnings before interest, taxes, depreciation and amortization

   $ 26,314             $ 31,237          

Restructuring charges

     644               -          

Adjusted earnings before interest, taxes, depreciation and amortization

   $ 26,958       10.7 %   $ 31,237       11.2 %

 

Emergency Response Vehicles Segment

(In thousands, unaudited)

 

   

Twelve Months Ended December 31,

  
   

2017

    

% of

sales

    

2016

    

% of

sales

  

Net income (loss) attributable to Emergency Response

   $ (1,499 )     -0.5 %   $ (13,720 )     -7.5 %

Add (subtract):

                                

Depreciation and amortization

     2,342               1,143          

Taxes on income

     -               70          

Earnings (loss) before interest, taxes, depreciation and amortization

   $ 843       0.3 %   $ (12,507 )     -6.8 %
                                 

Earnings (loss) before interest, taxes, depreciation and amortization

   $ 843             $ (12,507 )        

Restructuring charges

     454               1,095          

Intercompany chassis impact

     2,073               -          

Asset impairment

     -               406          

Acquisition inventory adjustment

     189               -          

Recall expense

     (368 )             3,457          

JV expenses

     1               7          

Adjusted earnings (loss) before interest, taxes, depreciation and amortization

   $ 3,192       1.1 %   $ (7,542 )     -4.1 %

 

Specialty Chassis and Vehicles Segment

(In thousands, unaudited)

 

   

Twelve Months Ended December 31,

  
   

2017

    

% of

sales

    

2016

    

% of

sales

  

Net income attributable to Specialty Chassis and Vehicles

   $ 12,642       8.0 %   $ 7,545       5.6 %

Add (subtract):

                                

Depreciation and amortization

     1,314               789          

Earnings before interest, taxes, depreciation and amortization

   $ 13,956       8.8 %   $ 8,334       6.2 %
                                 

Earnings before interest, taxes, depreciation and amortization

   $ 13,956             $ 8,334          

Restructuring charges

     102               -          

Adjusted earnings before interest, taxes, depreciation and amortization

   $ 14,058       8.9 %   $ 8,334       6.2 %

 

Page 8 of 15
 

 

Consolidated

(In thousands, except per share data)

(Unaudited)

 

   

Forecast

Year Ending December 31, 2018

  
   

Low

    

Mid

    

High

  

Net income

   $ 18,842     $ 19,903     $ 20,963  

Add:

                        

Depreciation and amortization

     11,672       11,672       11,672  

Interest expense

     427       455       483  

Taxes

     7,309       7,720       8,132  

EBITDA

   $ 38,250     $ 39,750     $ 41,250  
                         

Add (subtract):

                        

Restructuring charges

     750       750       750  

Adjusted EBITDA

   $ 39,000     $ 40,500     $ 42,000  
                         

Earnings per share

   $ 0.54     $ 0.57     $ 0.60  

Add:

                        

Restructuring charges

     0.02       0.02       0.02  

Less tax effect of adjustments

     -       -       -  

Adjusted earnings per share

   $ 0.56     $ 0.59     $ 0.62  

 

 

 

Conference Call, Webcast, Investor Presentation and Investor Information

Spartan Motors will host a conference call for analysts and portfolio managers at 10 a.m. ET today to discuss these results and current business trends. The conference call and webcast will be available via:

 

Webcast: www.spartanmotors.com (Click on “Investor Relations” then “Webcasts”)

Conference Call: 1-844-868-8845 (domestic) or 412-317-6591 (international); passcode: 10116962

 

For more information about Spartan, please visit www.spartanmotors.com.

 

About Spartan Motors

Spartan Motors, Inc. is a leading designer, engineer, manufacturer and marketer of a broad range of specialty vehicles, specialty chassis, vehicle bodies and parts for the fleet and delivery, recreational vehicle (RV), emergency response, defense forces and contract assembly (light/medium duty truck) markets. The Company's brand names — Spartan Motors, Spartan Specialty Vehicles, Spartan Emergency Response, Spartan Parts and Accessories, Smeal and its family of brands, including Ladder Tower™ and UST®; and Utilimaster®, a Spartan Motors Company — are known for quality, durability, performance, customer service and first-to-market innovation. The Company employs approximately 2,300 associates, and operates facilities in Michigan, Indiana, Pennsylvania, Missouri, Wisconsin, Nebraska, South Dakota; Saltillo, Mexico; and Lima, Peru. Spartan reported sales of $707 million in 2017. Visit Spartan Motors at www.spartanmotors.com.

 

Page 9 of 15
 

 

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:

 

Rick Sohm

Chief Financial Officer

Spartan Motors, Inc.

(517) 543-6400

Juris Pagrabs, Group Treasurer &

Director of Investor Relations

Spartan Motors, Inc.

(517) 543-6400

 

Page 10 of 15
 

 

Spartan Motors, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(In thousands, except par value)

(Unaudited)

 

   

December 31,

    

December 31,

  
   

2017

    

2016

  

ASSETS

                

Current assets:

                

Cash and cash equivalents

   $ 33,523     $ 32,041  

Accounts receivable, less allowance of $139 and $487

     83,147       65,441  

Inventories

     77,692       58,896  

Income taxes receivable

     -       1,287  

Other current assets

     4,425       4,526  

Total current assets

     198,787       162,191  
                 

Property, plant and equipment, net

     55,177       53,116  

Goodwill

     27,417       15,961  

Intangible assets, net

     9,427       6,385  

Deferred tax asset, net

     7,284       3,310  

Other assets

     3,072       2,331  

TOTAL ASSETS

   $ 301,164     $ 243,294  
                 

LIABILITIES AND SHAREHOLDERS' EQUITY

                
                 

Current liabilities:

                

Accounts payable

   $ 40,643     $ 31,336  

Accrued warranty

     18,268       19,334  

Accrued compensation and related taxes

     13,264       13,188  

Deposits from customers

     25,422       16,142  

Other current liabilities and accrued expenses

     12,071       7,659  

Current portion of long-term debt

     64       65  

Total current liabilities

     109,732       87,724  
                 

Long-term debt, less current portion

     17,925       74  

Other non-current liabilities

     5,238       2,544  

Total liabilities

     132,895       90,342  

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; 35,097 and 34,383 outstanding

     351       344  

Additional paid in capital

     79,721       76,837  

Retained earnings

     88,855       76,428  

Total Spartan Motors, Inc. shareholders' equity

     168,927       153,609  

Non-controlling interest

     (658 )     (657 )

Total shareholders' equity

     168,269       152,952  

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

   $ 301,164     $ 243,294  

 

Page 11 of 15
 

 

Spartan Motors, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(In thousands, except per share data)

(Unaudited)

 

   

Three Months Ended

December 31,

    

Twelve Months Ended

December 31,

  
   

2017

    

2016

    

2017

    

2016

  
                                 

Sales

   $ 181,068     $ 145,850     $ 707,098     $ 590,777  

Cost of products sold

     156,327       127,907       617,655       518,113  

Restructuring charges

     52       53       208       136  
                                 

Gross profit

     24,689       17,890       89,235       72,528  
                                 

Operating expenses:

                                

Research and development

     1,258       2,363       6,523       6,772  

Selling, general and administrative

     17,336       14,391       65,497       56,172  

Restructuring charges

     -       171       1,044       959  
                                 

Total operating expenses

     18,594       16,925       73,064       63,903  
                                 

Operating income

     6,095       965       16,171       8,625  
                                 

Other income (expense):

                                

Interest expense

     (282 )     (96 )     (864 )     (410 )

Interest and other income

     277       183       717       488  

Total other income (expense)

     (5 )     87       (147 )     78  
                                 

Income before taxes

     6,090       1,052       16,024       8,703  
                                 

Income tax expense

     3,651       111       90       100  
                                 

Net Income

     2,439       941       15,934       8,603  
                                 

Less: net loss attributable to non-controlling interest

     -       (1 )     (1 )     (7 )
                                 

Net income attributable to Spartan Motors Inc.

   $ 2,439     $ 942     $ 15,935     $ 8,610  
                                 

Basic net earnings per share

   $ 0.07     $ 0.03     $ 0.46     $ 0.25  
                                 

Diluted net earnings per share

   $ 0.07     $ 0.03     $ 0.46     $ 0.25  
                                 

Basic weighted average common shares outstanding

     35,117       34,417       34,949       34,405  
                                 

Diluted weighted average common shares outstanding

     35,117       34,417       34,949       34,405  

 

 

Page 12 of 15
 

 

Spartan Motors, Inc. and Subsidiaries

Sales and Other Financial Information by Business Segment

(Unaudited)

 

Year Ended December 31, 2017 (in thousands of dollars)

  
                                         
   

Business Segments

                  
   

Fleet Vehicles &

Services

    

Emergency

Response

    

Specialty

Chassis &

Vehicles

    

Other

    

Consolidated

  

Fleet vehicle sales

   $ 207,666     $ -     $ 5,657     $ (5,657 )   $ 207,666  

Emergency response vehicle sales

     -       293,559       -       -       293,559  

Motorhome chassis sales

     -       -       124,584       -       124,584  

Other specialty chassis and vehicles

     -       -       18,416       -       18,416  

Aftermarket parts and assemblies

     43,429       9,291       10,153       -       62,873  

Total Sales

   $ 251,095     $ 302,850     $ 158,810     $ (5,657 )   $ 707,098  
                                         

Adjusted EBITDA

   $ 26,958     $ 3,192     $ 14,058     $ (12,881 )   $ 31,327  

 

 

 

Spartan Motors, Inc. and Subsidiaries

Sales and Other Financial Information by Business Segment

(Unaudited)

 

Year Ended December 31, 2016 (in thousands of dollars)

  
                                         
   

Business Segments

                  
   

Fleet Vehicles &

Services

    

Emergency

Response

    

Specialty

Chassis &

Vehicles

    

Other

    

Consolidated

  

Fleet vehicle sales

   $ 206,248     $ -     $ 5,347     $ (5,347 )   $ 206,248  

Emergency response vehicles sales

     -       175,730       -       -       175,730  

Motorhome chassis sales

     -       -       97,999       -       97,999  

Other specialty chassis and vehicles

     -       -       21,074       -       21,074  

Aftermarket parts and assemblies

     72,141       7,251       10,334       -       89,726  

Total Sales

   $ 278,389     $ 182,981     $ 134,754     $ (5,347 )   $ 590,777  
                                         

Adjusted EBITDA

   $ 31,237     $ (7,542 )   $ 8,334     $ (9,159 )   $ 22,870  

 

Page 13 of 15
 

 

Spartan Motors, Inc. and Subsidiaries

Sales and Other Financial Information by Business Segment

(Unaudited)

 

Three Months Ended December 31, 2017 (in thousands of dollars)

  
                                         
   

Business Segments

                  
   

Fleet

Vehicles &

Services

    

Emergency

Response

   

Specialty

Chassis &

Vehicles

    

Other

    

Consolidated

  

Fleet vehicle sales

   $ 53,488     $ -     $ 918     $ (918 )   $ 53,488  

Emergency response vehicles sales

     -       73,448       -       -       73,448  

Motorhome chassis sales

     -       -       33,303       -       33,303  

Other specialty chassis and vehicles

     -       -       4,663       -       4,663  

Aftermarket parts and assemblies

     11,520       2,480       2,166       -       16,166  

Total Sales

   $ 65,008     $ 75,928     $ 41,050     $ (918 )   $ 181,068  
                                         

Adjusted EBITDA

   $ 5,756     $ 2,679     $ 4,612     $ (3,752 )   $ 9,295  

 

 

 

Spartan Motors, Inc. and Subsidiaries

Sales and Other Financial Information by Business Segment

(Unaudited)

 

Three Months Ended December 31, 2016 (in thousands of dollars)

  
                                         
   

Business Segments

                  
   

Fleet

Vehicles &

Services

    

Emergency

Response

    

Specialty

Chassis &

Vehicles

    

Other

    

Consolidated

  

Fleet vehicle sales

   $ 51,475     $ -     $ 1,667     $ (1,667 )   $ 51,475  

Emergency response vehicle sales

     -       45,651       -       -       45,651  

Motorhome chassis sales

     -       -       24,745       -       24,745  

Other specialty chassis and vehicles

     -       -       4,351       -       4,351  

Aftermarket parts and assemblies

     15,848       1,696       2,084       -       19,628  

Total Sales

   $ 67,323     $ 47,347     $ 32,847     $ (1,667 )   $ 145,850  
                                         

Adjusted EBITDA

   $ 7,682     $ (3,016 )   $ 1,878     $ (2,286 )   $ 4,258  

 

Page 14 of 15
 

 

Sales and Other Financial Information by Business Segment

(Unaudited)

 

Period End Backlog (amounts in thousands of dollars)

 
   

Dec 31,

2017

    

Sept. 30,

2017

    

Jun. 30,

2017

    

Mar. 31,

2017

    

Dec. 31,

2016

  

Fleet Vehicles and Services*

   $ 267,698     $ 292,540     $ 131,280     $ 113,960     $ 89,549  
                                         

Emergency Response Vehicles*

     233,583       213,334       214,794       214,463       139,870  
                                         

Motorhome Chassis *

     33,191       31,179       25,823       21,772       18,749  

Aftermarket Parts and Accessories

     615       694       892       1,075       1,288  

Total Specialty Chassis & Vehicles

     33,806       31,873       26,715       22,847       20,037  
                                         

Total Backlog

   $ 535,087     $ 537,747     $ 372,789     $ 351,270     $ 249,456  

 

 

* Anticipated time to fill backlog orders at December 31, 2017; 4 months or less for fleet vehicles and services, except for the USPS truck body order which will be fulfilled throughout 2018 and 2019; 12 months or less for emergency response vehicles; 3 months or less for motorhome chassis; and 1 month or less for other products.

 

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