Wed Aug 2, 2017
CHARLOTTE, Mich. - Spartan Motors, Inc. has reported operating results for the second quarter ending June 30, of an increase of $7.2 million.
For the second quarter of 2017 compared to the second quarter of 2016:
-Sales of $169.7 million compared to $162.5 million
-Net income of $1.1 million, or $0.03 per share, compared to $4.4 million, or $0.13 per share, reflecting $1.2 million of acquisition and restructuring related expenses compared to $0.2 million a year ago
-Adjusted net income of $2.4 million, or $0.07 per share, compared to $6.3 million, or $0.19 per share
-Adjusted EBITDA of $4.9 million, or 2.9 percent of sales, compared to $8.2 million, or 5 percent of sales
-Backlog of $372.8 million at June 30, compared to $351.3 million at March 31, 2017
-Paid down $10 million of acquisition debt to $22.8 million from $32.8 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," Spartan Motors President and CEO Daryl Adams says. "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."
"Looking ahead to the remainder of the year, we expect to see stronger year-over-year revenue growth, primarily driven by last-mile delivery vehicle orders, including Reach and walk-in vans, motorhomes and production ramp-up from the new Isuzu F-Series," Spartan Motors CFO Rick Sohm says. "This revenue growth, together with strong first-half and year-over-year operational improvements, as well as continued synergies from the Smeal acquisition, give us comfort in significantly raising our 2017 financial guidance."
Outlook for the full year 2017 is now expected to be as follows:
-Revenue of $680 - $720 million, up from previous guidance of $650 - $700 million
-Adjusted EBITDA of $28.3 - $31.3 million, up from previous guidance of $26.5 - $29 million
-Restructuring, acquisition costs and inter-company chassis impact of about $3.7 million, up from previous guidance of $3.2 million
-Income tax expense of $0.7 - $2.2 million, down from previous guidance of $1.5 - $2.3 million
-Interest expense of $0.6 million, down from previous guidance of $0.8 million
-Adjusted earnings per share of $0.48 - $0.52, up 28 percent from previous guidance of $0.36 - $0.41, based on 35 million shares outstanding, unchanged from previous guidance
"With our continued market share gains and growing backlog, together with our earnings momentum evidenced by the increased guidance, we are confident about our projected 2017 second half performance," Adams says.