The Recreation Vehicle Industry Association commissioned an Economic Impact Study on the RV industry, released on June 7, 2016. The study found that the RV industry contributes about $49.7 billion in economic output or 0.28 percent of the Gross Domestic Product. Through its production and distribution linkages, the industry impacts firms in 426 of the 440 sectors of the United States economy.
Nationwide, the industry is responsible for 216,170 jobs, both directly and inderectly, creating an economic impact of $37.5 billion. The full study results, along with each individual state and congressional district's economic impact is available on the website by clicking here .
Thu May 4, 2017
CHARLOTTE, Michigan - Spartan Motors, Inc. has reported operating results for the first quarter ending March 31, of a sales increase of 24.9 percent, but a net income decrease of $1.6 million.
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
Adjusted EBITDA increased 45.7 percent to $4.2 million, or 2.5 percent of sales, from $2.9 million, or 2.1 percent of sales
Backlog increased $101.8 million to $351.3 million at March 31 from $249.5 million at Dec. 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 million at Dec. 31, 2016
"We are very pleased with the operating results achieved for the quarter," Spartan Motors President and CEO Daryl Adams says. "On an adjusted basis, this marks our fifth profitable quarter in a row. 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."
Fleet Vehicles and Services (FVS)
FVS segment sales decreased 9.1 percent to $53.9 million from $59.3 million. The revenue decline was primarily due to lower volume at vehicle up-fit centers.
Adjusted EBITDA decreased $0.3 million to $6.2 million, or 11.6 percent of sales, from $6.5 million, or 10.9 percent of sales, a year ago. Unfavorable mix resulted in the decrease in adjusted EBITDA compared to last year. Despite this decrease, EBITDA margin increased 70 basis points reflecting improved labor and manufacturing productivity.
The Segment backlog at March 31 totaled $114 million compared to $89.5 million at Dec. 31, 2016.
Specialty Chassis & Vehicles (SCV)
SCV 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 Dec. 31, 2016.
Emergency Response (ER)
ER segment sales increased $39.1 million to $80.2 million, or 95.1 percent, from $41.1 million. The Smeal acquisition contributed $35.2 million of the increase (excludes $5.5 million of Spartan inter-company chassis sales), offset by fewer shipments of complete fire apparatus and custom cab and chassis compared to a year ago, as the company continues to focus on profitable sales.
Adjusted EBITDA improved $1.8 million, to a loss of $1.3 million from a loss of $3.1 million a year ago. The improvement was primarily the result of improved quality, increased labor efficiencies and manufacturing productivity.
The Segment backlog at March 31 totaled $214.5 million compared to $139.9 million at Dec. 31, 2016, and reflects $78.6 million in backlog from Smeal Fire Apparatus.
As previously announced, the company completed the acquisition of Smeal Fire Apparatus Co. and its subsidiaries effective Jan. 1. Smeal, an industry-leading innovator and manufacturer of fire apparatus in North America, generated first quarter 2017 revenues of $35.2 million (excludes $5.5 million of Spartan inter-company chassis sales). Smeal is expected to generate about $105 million in sales, excluding inter-company shipments, during 2017.
The company results for the 2017 first quarter include about $2.6 million, or $0.07 per share of acquisition and restructuring related adjustments and expenses.
"Our team has been working tirelessly and our Smeal integration efforts are running ahead of schedule and are already generating positive outcomes," Adams says. "Not only have we identified more synergistic opportunities than originally anticipated, we are also experiencing significantly increased interest and excitement in our expanded product portfolio from our dealers and customers. We are excited to share that not only do we have the right team in place to make these integration efforts successful, we're also applying lessons learned and documenting the process required for future acquisitions. These developments further abbreviate the timeline needed to accelerate the turnaround of the Emergency Response business and it remains on track to return to profitability on an adjusted basis in 2017."