Spartan Motors, a supplier of chassis for the RV industry, today reported operating results for the first quarter ending March 31.
For the first quarter of 2017 compared to the first quarter of 2016:
- Sales increased 24.9 percent to $167.1 million from $133.7 million and reflects $35.2 million in sales from the Smeal Fire Apparatus acquisition, which excludes $5.5 million of Spartan inter-company chassis sales
- Net income declined $1.6 million to a loss of $1.1 million, or $0.03 per share, from income of $0.5 million, or $0.02 per share, reflecting $2.6 million of acquisition and restructuring related expenses compared to $0.3 million a year ago
- Adjusted net income rose 142.1 percent to $1.3 million, or $0.04 per share, from $0.5 million, or $0.02 per share
- Backlog increased $101.8 million to $351.3 million at March 31 from $249.5 million at December 31, 2016 and reflects $78.6 million in backlog from the Smeal Fire Apparatus acquisition
- Cash increased 10.6 percent to $35.4 million at March 31 compared to $32.0 million at December 31, 2016
“We are very pleased with the operating results achieved for the quarter. On an adjusted basis, this marks our fifth profitable quarter in a row,” said Daryl Adams, president and CEO. “Our solid performance was driven by the continued operational improvements we have made in labor and manufacturing productivity, as a result of implementing the Spartan Production System, lean manufacturing and continuous improvement initiatives.”
The Specialty Chassis & Vehicles segment sales remained comparable at $33 million. Revenues were impacted by a defense order that did not reoccur in 2017.
Adjusted EBITDA decreased 3.9 percent to $1.5 million, or 4.7 percent of sales, from $1.6 million, or 4.8 percent of sales, a year ago, mainly due to a defense order that did not reoccur in 2017.
The segment backlog at March 31 totaled $22.8 million compared to $20.1 million at December 31, 2016.
“Our strong first quarter performance reflects the favorable impact of successfully implementing lean manufacturing, continuous improvement initiatives across all production facilities and the Smeal integration that is ahead of schedule,” said Rick Sohm, CFO of Spartan Motors. “Looking ahead to the remainder of the year, we expect to see continued year-over-year operational improvements and additional synergies realized from the Smeal integration, which gives us comfort in raising the 2017 guidance.”