Spartan Motors reported a slight increase in sales for the second quarter ending June 30, going from $170 million compared to last year’s $163 million over the same time.
Net income, however, was $1.1 million compared to $4.4 million the year before, reflecting the $1.2 million of acquisition and restructuring related expenses. The manufacturer also paid down $10 million of acquisition debt going from $32.8 million to $22.8 million.
“We are pleased with the operating results achieved for the quarter, which on an adjusted basis, marks our sixth profitable quarter in a row, despite being up against difficult comparisons from the prior-year period,” said Daryl Adams, president and CEO of Spartan Motors. “As expected, our results for the quarter were impacted by volume and mix, a defense order that did not reoccur in 2017 and the timing of the previously announced reach vehicle order. We anticipate revenues in the second half of 2017 to increase significantly, and as a result of continued operational improvements in labor, manufacturing productivity and synergies from the Smeal acquisition, expect strong growth in profitability for the full year, allowing us to increase our 2017 midpoint adjusted EPS guidance by 28 percent.”
Sales in the specialty chassis and vehicles segment decreased by 5.3 percent to $35.8 million from $37.8 million. Revenues in the second quarter of 2016 included a $4.4 million defense order that did not reoccur in 2017. Adjusted EBITDA decreased 7.7 percent from $3.4 million to $2.8 million primarily due to the defense order that did not reoccur in 2017. The segment backlog at June 30 totaled $26.7 million, which is up 17.1 percent compared to $22.8 million at March 31.
For more information about Spartan, visit www.spartanmotors.com.