Spartan Motors Reports Fourth Quarter and Full Year 2012 Results Highlighted by Revenue Growth PR Newswire CHARLOTTE, Mich., Feb. 12, 2013 CHARLOTTE, Mich., Feb. 12, 2013 /PRNewswire/ -- Spartan Motors, Inc. (NASDAQ: SPAR) ("Spartan" or the "Company") today announced operating results for the fourth quarter and full year of 2012. Revenues totaled $124.5 million compared to $111.2 million in the fourth quarter of 2011, an increase of 12.0%. Spartan reported a net loss of $2.5 million in the fourth quarter of 2012, or ($0.07) per diluted share compared to net income of $0.7 million, or $0.02 per diluted share in the fourth quarter of 2011. Excluding pre-tax restructuring charges of $1.4 million and a $1.9 million earn-out accrual related to the 2009 purchase of Utilimaster, Spartan posted an adjusted net income of $0.5 million, or $0.01 per diluted share in the fourth quarter of 2012. For the full year, Spartan posted revenue of $470.6 million, an increase of 10.5% from 2011 revenue of $426.0 million. The Company reported a net loss of $2.5 million, or ($0.07) per diluted share compared to net income of $0.8 million, or $0.02 per diluted share in 2011. Results for 2012 include pre-tax restructuring charges of $9.1 million and an earn-out accrual of $2.9 million while for 2011 Spartan incurred pre-tax restructuring charges of $2.8 million and a $1.0 million earn-out accrual. On an adjusted basis, excluding restructuring charges and the Utilimaster earn-out, Spartan's 2012 earnings were $6.3 million, or $0.19 per diluted share compared to $3.6 million, or $0.11 per diluted share in 2011, an increase of 75.0%. Fourth Quarter 2012 Summary: oNet sales of $124.5 million (an increase of 12% from Q4 2011 sales of $111.2 million): oEmergency Response (ER) sales totaled $44.9 million, an increase of 1.4% from $44.3 million in Q4 2011 oDelivery & Service Vehicle (DSV) sales totaled $52.6 million, an increase of 25.5% from $41.9 million in Q4 2011 oSpecialty Vehicles (SV) sales rose 8.0% to $27.0 million from $25.0 million in Q4 2011 oGAAP results: oGross margin of 10.6% of sales, down from 13.1% in Q4 2011 oOperating loss of $2.8 million and operating margin of (2.2)%, compared to operating income of $1.0 million and operating margin of 0.9% in Q4 2011 oNet loss of $2.5 million, or ($0.07) per diluted share oAdjusted operating results (non-GAAP, excluding restructuring charges and earn-out accrual): oAdjusted gross margin of 11.2% of sales oAdjusted operating income of $0.5 million, or 0.4 % of sales oAdjusted net income of $0.5 million, or $0.01 per diluted share oRestructuring charges (pre-tax) totaled $1.4 million, or $0.03 per diluted share in Q4 2012, mostly related to Utilimaster's move to Bristol, Ind. oThe Utilimaster earn-out accrual totaled $1.9 million, or $0.05 per share in Q4 2012 oEarnings before interest, taxes, depreciation and amortization (EBITDA) excluding restructuring items and the earn-out accrual was $2.6 million in Q4 2012 versus $3.5 million in Q4 2011 oEnding consolidated backlog was $164.4 million at Dec. 31, 2012 versus $137.0 million at Dec. 31, 2011. Backlog at the end of 2012 increased 20.0% from the end of 2011 oCash balance of $21.7 million at Dec. 31, 2012 compared to $31.7 million at Dec. 31, 2011 oSpartan invested $2.8 million in capital during the fourth quarter of 2012, most of which was related to Utilimaster's relocation project. During the quarter the Company also purchased $9.6 million in transitional 2010-spec diesel engines John Sztykiel, Chief Executive Officer of Spartan Motors, Inc., stated, "The fourth quarter and full year 2012 reflected Spartan's diversified growth strategy, with fourth-quarter revenues rising 12% over last year and full-year revenues up 10.5% from 2011. We also posted full-year adjusted earnings growth compared to 2011 and a total order backlog that increased 20.0% from year end 2011. Revenue growth was a result of Spartan's brand strength, new product initiatives and market recovery. In addition to generating revenue growth, we did a very good job of managing operating expenses and the balance sheet. Although we posted sales and adjusted earnings growth in 2012, our results also show that we have more work to do on improving operations, particularly the gross margin. We underestimated the scope and amount of time required to implement our operational/gross margin improvement efforts in 2012 and are dedicating more time and focus to achieve these goals in 2013. Our plan to improve the gross margin includes the following steps: increasing production efficiency, reducing the bill of materials to offset a shift to lower-priced products and further reductions in Reach™ start-up costs. We expect the plan to lead to improved margin performance in 2013 and beyond." Joe Nowicki, Spartan's Chief Financial Officer, stated, "Spartan demonstrated its commitment to financial discipline during the fourth quarter by cutting adjusted operating expenses to 10.8% of sales compared to 12.2% of sales in the fourth quarter of 2011. We focused attention on cash collection and helped reduce our year end receivables balance by $2.9 million compared to the third quarter of 2012 despite 10%-plus revenue growth. Compared to the third quarter of 2012, we also reduced total inventory levels by $3.2 million. "At the end of November, we renewed our private shelf and note purchase agreement with Prudential Investment Management, Inc. for an additional three-year period, through November 2015 and increased the authorized amount of the note purchase agreement by $5 million, to $50 million. This private shelf agreement provides Spartan with additional flexibility to support future acquisitions or other growth initiatives." Revenue Growth and Operating Expense Control Offset by Material and Manufacturing Cost Pressure oAll of Spartan's operating segments posted revenue growth in the fourth quarter of 2012, with the DSV group showing a 25.5% growth rate over the year-ago fourth quarter. DSV posted fourth quarter 2012 revenue of $52.6 million compared to $41.9 million in the fourth quarter of 2011. Growth in the DSV segment was due to increased demand for walk-in vans and truck bodies. At the end of the fourth quarter of 2012, DSV backlog stood at $39.7 million, down from $47.7 million at the end of 2011. oThe SV segment generated revenue of $27.0 million in the fourth quarter of 2012, an increase of 8.0% from $25.0 million in the year-ago fourth quarter. Most of the revenue gain came from higher sales of recreational vehicle chassis in the fourth quarter of 2012 compared to the fourth quarter of 2011. Demand for custom RV chassis increased during the fourth quarter of 2012, more than offsetting the impact of the departure of a major customer earlier in the year.Orders increased dramatically throughout 2012, with the backlog at year end standing at $26.6 million compared to $15.3 million at the end of 2011, an increase of 73.9%. oThe ER segment reported fourth quarter 2012 revenue of $44.9 million versus $44.3 million in the year-ago fourth quarter. Sales of fire trucks, including two large aerials, rose during the fourth quarter of 2012, more than offsetting a small decline in the number of custom fire chassis sold during the quarter. ER orders increased throughout the year, with the backlog at December 31, 2012 standing at $98.1 million, up 32.6% from $74.0 million at year end 2011. oSpartan's gross margin was adversely impacted by several issues during the fourth quarter. The Company posted a gross margin of 10.6% in the fourth quarter of 2012 compared to 13.1% in the fourth quarter of 2011. Excluding restructuring charges of $0.8 million, the adjusted gross margin in the fourth quarter of 2012 was 11.2% of sales. The gross margin was negatively impacted by higher-than-projected labor costs at DSV due to the relocation to Bristol and higher Emergency Response Vehicles labor costs incurred as production increased rapidly in the fourth quarter of 2012. Product mix in Emergency Response Vehicles during the quarter resulted in a higher material content as a percentage of sales, thereby reducing gross margin. The gross margin at ER was also reduced by recurring commercial chassis shortages that required last-minute production schedule changes and additional labor and material handling. oOperating expenses in the fourth quarter of 2012 rose to $15.9 million, or 12.8% of sales, compared to $13.5 million, or 12.1% of sales, in the fourth quarter of 2011. Excluding restructuring charges of $0.6 million, or 0.5% of sales, and the earn-out expense of $1.9 million, or 1.5% of sales, adjusted operating expenses for the fourth quarter of 2012 amounted to $13.4 million, or 10.8% of sales. Bristol Move Accelerating oUtilimaster's relocation to Bristol, Ind., continues, with most of the physical move to be completed by the end of the first quarter of 2013. Production of walk-in vans is expected to begin at the end of Q1 2013 with the move substantially completed during Q2 2013. While the move is underway, costs are expected to be higher than normal while production will be reduced, negatively impacting Q1 2013 results. As the relocation process nears completion, management expects costs to be significantly reduced. oSpartan closed the sale on 15 of the 16 buildings at its Wakarusa, Ind., complex. The Company retains one building at Wakarusa, currently held for sale. 2012 Highlights: oFull year 2012 revenue at ER reached $162.3 million compared to $154.8 million in 2011, a 4.8% increase. Emergency Response Vehicles posted a $4.8 million increase for the year, primarily during the fourth quarter as production increased to meet order growth. The Emergency Response Chassis unit reported revenue growth of $2.8 million for the year as demand for custom fire chassis also increased throughout the year. oDSV sales rose to $208.2 million in 2012, up 25.8% from $165.5 million in 2011. Sales of truck bodies and walk-in vans rose from 2011 due to improved demand. During the year, DSV sold 577 Reach walk-in vans. Aftermarket parts and field service solutions sales rose to $58.0 million from $46.7 million, an increase of 24.2%. oSV revenue for 2012 declined to $100.0 million from $105.7 million in 2011, a decrease of 5.4%. The decline was due to an 89.0% decrease in Specialty Defense and Government (SDG) vehicle production to $1.3 million in 2012 from $11.8 million in 2011. Partially offsetting this decline was a 10% increase in Recreational and Specialty Chassis (RSC) sales to $72.1 million from $65.8 million in 2011. oConsolidated gross profit in 2012 declined to $58.6 million, or 12.5% of sales, from $60.6 million, or 14.2% of sales in 2011. Restructuring charges reduced gross profit by $6.5 million in 2012 versus $1.7 million in 2011. Adjusted gross margin, excluding restructuring charges, was 13.8% of sales in 2012 compared to 14.6% in 2011. Spartan's 2012 gross profit was reduced by higher material content and labor costs than projected at both ER and DSV, especially during the second half of the year. SV posted higher gross profit and margin despite a reduction in revenue as cost-cutting efforts, lower restructuring costs and improved operating efficiency more than offset higher material content due to sales mix. oOperating expenses for 2012 increased to $61.2 million from $59.3 million, but declined as a percentage of sales to 13.0% from 13.9% in 2011. Operating expenses included restructuring charges of $2.6 million in 2012 versus $1.1 million in 2011. Also included in operating expenses is the Utilimaster earn-out accrual of $2.9 million in 2012 and $1.0 million in 2011. Excluding restructuring charges and the earn-out accrual yields adjusted operating expenses of 11.8% of sales in 2012 and 13.4% in 2011. oSpartan posted an operating loss of $2.6 million or (0.6)% of sales in 2012, compared to operating income of $1.3 million or 0.3% of sales in 2011. Excluding restructuring items and earn-out accruals, Spartan's adjusted operating earnings totaled $9.4 million, or 2.0% of sales, compared to $5.1 million, or 1.2% of sales in 2011, representing an increase of 84.3%. Joe Nowicki, Spartan's Chief Financial Officer, commented on the Company's 2012 performance and outlook for 2013, "Spartan ended 2012 on a sound financial footing and with important initiatives such as Utilimaster's relocation to a more efficient facility on-track and on schedule. We transitioned production of the Reach to the Charlotte campus from Wakarusa and completed our first run of 150 units for UPS. We reduced our base inventory levels, which exclude the purchase of $9.6 million of transitional diesel engines, by $9.0 million from the end of 2011. "In the first quarter of 2013, we expect Utilimaster's move to Bristol to adversely impact production levels at our DSV unit. In addition, the industry is experiencing a shortage of certain stripped chassis used in walk-in van production. We are working with other chassis manufacturers and our customers to mitigate the impact of the shortage, which we expect to be an issue primarily in the first half of 2013. Our other operating segments are also expected to experience seasonally lower production rates during the first quarter. Because of lower production rates and the costs of the Bristol relocation project, we expect to post an operating loss for the first quarter of 2013. For the remainder of 2013 we expect improved financial results from the completion of the Bristol move, ramp-up of DSV production and our gross margin improvement plan." Margin Improvement is Focus for 2013 John Sztykiel commented on plans for 2013, stating, "As we enter 2013, revenue growth, expense control, the strength of our balance sheet and our strategy are all making an impact. The Reach has been established as a product valued by the market and we are excited about its future. During 2012 we sold 577 units, including to UPS and Fedex, and are very excited about its future. Operational improvement will come as we implement production efficiency initiatives throughout the company and reduce bill of materials costs. We are also putting into place marketing initiatives to shift our product mix to higher-margin products. "The year 2012 was still a year of transformation. We still managed to post revenue, profit and backlog growth in the midst of all of our transformational activities. Spartan ER came into play as the Crimson Fire brand was eliminated. We moved Reach production to Charlotte and saw improvements in efficiency and quality in the fourth quarter. The first quarter of 2013 will still be a transformational quarter as we complete the move of Utilimaster to Bristol. As we look at all of 2013, we see top line growth supported by disciplined execution and operational improvement. In summary, we look for structured growth while positioning Spartan for an even better future." Reconciliation of Non-GAAP Financial Measures This release contains adjusted gross profit, adjusted gross margin, adjusted operating expenses, adjusted operating income, adjusted net earnings (loss) and adjusted earnings per share measures, as well as earnings before interest, taxes, depreciation and amortization (EBITDA), which are all Non-GAAP financial measures. These are calculated by excluding items that we believe to be infrequent or not indicative of our operating performance. For the periods covered by this release such items consist of expenses associated with restructuring actions taken to improve the efficiency and profitability of certain of our manufacturing operations and adjust our cost structure to the current business climate and earn-out accruals related to our 2009 acquisition of Utilimaster Corporation. We present these adjusted Non-GAAP measures because we consider them to be important supplemental measures of our performance and believe them to be useful to show ongoing results from operations distinct from items that are infrequent or not indicative of our operating performance. We define EBITDA as operating income (loss) excluding restructuring and earn-out charges, less depreciation and amortization. We believe EBITDA is a useful tool that allows comparison of financial performance by eliminating the impact of differences in capital structure, restructuring charges and capital spending, among others, between different time periods or industries. The adjusted Non-GAAP measures are not measurements of our financial performance under GAAP and should not be considered as an alternative to gross profit, gross margin, operating expense, operating income (loss), net earnings (loss) or earnings (loss) per share under GAAP. These adjusted Non-GAAP measures have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. In addition, in evaluating the adjusted Non-GAAP measures, you should be aware that in the future we may incur expenses similar to the adjustments in this presentation, despite our assessment that such expenses are infrequent or not indicative of our operating performance. Our presentation of the adjusted Non-GAAP measures should not be construed as an inference that our future results will be unaffected by unusual or infrequent items. We compensate for these limitations by providing equal prominence of our GAAP results and using adjusted Non-GAAP measures only as a supplement. The following tables reconcile gross profit to adjusted gross profit, gross margin to adjusted gross margin, operating income (loss) to adjusted operating income, operating expense to adjusted operating expense, net earnings (loss) to adjusted net earnings, earnings (loss) per share to adjusted earnings per share and operating income (loss) to EBITDA for the periods indicated. Financial Summary (Non-GAAP) (In thousands, except per share data) (Unaudited) Three Months Ended December 31, 2012 % of 2011 % of sales sales Cost of products sold $ 110,583 88.8 $ 96,680 86.9 Less: restructuring charges 754 0.6 - - Adjusted cost of products sold $ 109,829 88.2 $ 96,680 86.9 Gross profit/Gross margin $ 13,152 10.6 $ 14,531 13.1 Add back: restructuring charges 754 0.6 - - Adjusted gross profit/Adjusted gross $ 13,906 11.2 $ 14,531 13.1 margin Operating expenses $ 15,933 12.8 $ 13,499 12.1 Less: restructuring charges 643 0.5 - - Less: expense from changes in fair 1,906 1.5 (54) (0.0) value of contingent consideration Adjusted operating expenses $ 13,384 10.8 $ 13,553 12.2 Operating income (loss)/Operating $ (2,781) (2.2) $ 1,032 0.9 margin Add back: restructuring charges 1,397 1.1 - - Add back: expense from changes in 1,906 1.5 (54) (0.0) fair value of contingent consideration Adjusted operating income/Adjusted $ 522 0.4 $ 0.9 operating margin 978 Net income (loss) (2,466) (2.0) $ 0.6 694 Add back: restructuring charges, net 1,030 0.8 - - of tax Add back: expense from changes in fair value of contingent 1,896 1.5 (54) (0.0) consideration, net of tax Adjusted net income $ 460 0.4 $ 0.6 640 Net earnings (loss) per share - $ (0.07) $ diluted 0.02 Add back: restructuring charges, net 0.03 - of tax Add back: expense from changes in fair value of contingent 0.05 - consideration, net of tax Adjusted net earnings per share - $ 0.01 $ diluted 0.02 Operating income (loss) $ (2,781) $ 1,032 Add back: restructuring charges 1,397 - Add back: expense from changes in 1,906 (54) fair value of contingent consideration Adjusted operating income 522 978 Add back: depreciation and 2,120 2,521 amortization Earnings before interest, taxes, $ 2,642 $ 3,499 depreciation and amortization Financial Summary (Non-GAAP) (In thousands, except per share data) (Unaudited) Year Ended December 31, 2012 % of 2011 % of sales sales Cost of products sold $ 405,455 86.2 $ 363,662 85.4 Less: restructuring charges 6,514 1.4 1,731 0.4 Adjusted cost of products sold $ 398,941 84.8 $ 361,931 85.0 Gross profit/Gross margin $ 58,608 12.5 $ 60,617 14.2 Add back: restructuring charges 6,514 1.4 1,731 0.4 Adjusted gross profit/Adjusted gross $ 65,122 13.8 $ 62,348 14.6 margin Operating expenses $ 61,199 13.0 $ 59,286 13.9 Less: restructuring charges 2,619 0.6 1,050 0.2 Less: expense from changes in fair 2,872 0.6 983 0.2 value of contingent consideration Adjusted operating expenses $ 55,708 11.8 $ 57,253 13.4 Operating income (loss)/Operating $ (2,591) (0.6) $ 1,331 0.3 margin Add back: restructuring charges 9,133 1.9 2,781 0.7 Add back: expense from changes in fair value of contingent 2,872 0.6 983 0.2 consideration Adjusted operating income/Adjusted $ 9,414 2.0 $ 5,095 1.2 operating margin Net income (loss) $ (2,457) (0.5) $ 773 0.2 Add back: restructuring charges, net 5,898 1.3 1,851 0.4 of tax Add back: expense from changes in fair value of contingent 2,862 0.6 983 0.2 consideration, net of tax Adjusted net income $ 6,303 1.3 $ 3,607 0.8 Net earnings per share - basic and $ (0.07) $ 0.02 diluted Add back: restructuring charges, net $ 0.18 0.06 of tax Add back: expense from changes in fair value of contingent $ 0.08 0.03 consideration, net of tax Adjusted net earnings per share - $ 0.19 $ 0.11 diluted Operating income (loss) $ (2,591) $ 1,331 Add back: restructuring charges 9,133 2,781 Add back: expense from changes in fair value of contingent 2,872 983 consideration Adjusted operating income 9,414 5,095 Add back: depreciation and 8,990 10,010 amortization Earnings before interest, taxes, $ 18,404 $ 15,105 depreciation and amortization Conference Call, Webcast and Roadcast® 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. To listen to a live webcast of the call, please visit www.spartanmotors.com, click on "Shareholders," and then on "Webcasts." For more information about Spartan, please view the Company's Roadcast "digital roadshow" designed for investors. To launch the Spartan Motors Roadcast, please visit www.spartanmotors.com and look for the "Virtual Road Show" link on the right side of the page. About Spartan Motors Spartan Motors, Inc. designs, engineers and manufactures specialty chassis, specialty vehicles, truck bodies and aftermarket parts for the recreational vehicle (RV), emergency response, government services, defense, and delivery and service markets. The Company's brand names – Spartan™, Spartan Chassis™, Spartan ER™, Spartan ERV™ and Utilimaster® - are known for quality, performance, service and first-to-market innovation. The Company employs approximately 1,800 associates at facilities in Michigan, Pennsylvania, South Dakota, Indiana, Florida and Texas. Spartan reported sales of $471 million in 2012 and is focused on becoming a global leader in the design, engineering and manufacture of specialty vehicles and chassis. Visit Spartan Motors at www.spartanmotors.com. This release contains several forward-looking statements that are not historical facts, including statements concerning our business, strategic position, financial strength, future plans, objectives, and the performance of our products. 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 assumptionsthat 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. Spartan Motors, Inc. and Subsidiaries Consolidated Statements of Operations (In thousands, except per share data) (Unaudited) Three Months Ended December 31, 2012 % of 2011 % of sales sales Sales $ 124,489 $ 111,211 Cost of products sold 110,583 88.8 96,680 86.9 Restructuring charges 754 0.6 - - Gross profit 13,152 10.6 14,531 13.1 Operating expenses: Research and development 2,971 2.4 3,445 3.1 Selling, general and 12,319 9.9 10,054 9.0 administrative Restructuring charges 643 0.5 - - Total operating expenses 15,933 12.8 13,499 12.1 Operating income (loss) (2,781) (2.2) 1,032 0.9 Other income (expense): Interest expense (81) (0.1) (67) (0.1) Interest and other income 134 0.1 191 0.2 (expense) Total other income (expense) 53 0.0 124 0.1 Income (loss) before taxes (2,728) (2.2) 1,156 1.0 Taxes (262) (0.2) 462 0.4 Net earnings (loss) (2,466) (2.0) 694 0.6 Basic net earnings (loss) per share $ $ (0.07) 0.02 Diluted net earnings (loss) per $ $ share (0.07) 0.02 Basic weighted average common shares 33,251 33,596 outstanding Diluted weighted average common 33,251 33,613 shares outstanding Spartan Motors, Inc. and Subsidiaries Consolidated Statements of Operations (In thousands, except per share data) (Unaudited) Year Ended December 31, 2012 % of 2011 % of sales sales Sales $ 470,577 $ 426,010 Cost of products sold 405,455 86.2 363,662 85.4 Restructuring charges 6,514 1.4 1,731 0.4 Gross profit 58,608 12.5 60,617 14.2 Operating expenses: Research and development 12,873 2.7 13,931 3.3 Selling, general and 45,707 9.7 44,305 10.4 administrative Restructuring charges 2,619 0.6 1,050 0.2 Total operating expenses 61,199 13.0 59,286 13.9 Operating income (loss) (2,591) (0.6) 1,331 0.3 Other income (expense): Interest expense (335) (0.1) (324) (0.1) Interest and other income 569 0.1 276 0.1 (expense) Total other income (expense) 234 0.0 (48) (0.0) Income (loss) before taxes (2,357) (0.5) 1,283 0.3 Taxes 100 0.0 510 0.1 Net earnings (loss) (2,457) (0.5) 773 0.2 Basic net earnings (loss) per share $ $ (0.07) 0.02 Diluted net earnings (loss) per share $ $ (0.07) 0.02 Basic weighted average common shares 33,165 33,438 outstanding Diluted weighted average common shares 33,165 33,488 outstanding Spartan Motors, Inc. and Subsidiaries Consolidated Balance Sheets (In thousands, except par value) (Unaudited) December 31, December 31, 2012 2011 ASSETS Current assets: Cash and cash equivalents $ 21,748 $ 31,677 Accounts receivable, less allowance of 47,139 40,042 $1,021 and $749 Inventories 67,591 66,991 Deferred income tax assets 6,291 6,425 Income taxes receivable 3,011 1,479 Assets held for sale 716 - Other current assets 6,027 2,455 Total current assets 152,523 149,069 Property, plant and equipment, net 59,122 65,399 Goodwill 20,815 20,815 Intangible assets, net 11,052 11,943 Other assets 1,639 1,383 TOTAL ASSETS $ 245,151 $ 248,609 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 23,000 $ 21,649 Accrued warranty 6,062 5,802 Accrued customer rebates 2,299 1,546 Accrued compensation and related taxes 7,748 5,670 Deposits from customers 6,386 7,902 Other current liabilities and accrued 8,113 7,772 expenses Current portion of long-term debt 82 55 Total current liabilities 53,690 50,396 Other non-current liabilities 3,071 2,932 Long-term debt, less current portion 5,207 5,084 Deferred income tax liabilities 4,454 7,359 Shareholders' equity: Preferred stock, no par value: 2,000 shares authorized (none issued) - - Common stock, $0.01 par value; 40,000 shares authorized; 33,862 and 33,596 339 336 outstanding Additional paid in capital 72,873 71,145 Retained earnings 105,517 111,357 Total shareholders' equity 178,729 182,838 TOTAL LIABILITIES AND SHAREHOLDERS' $ 245,151 $ 248,609 EQUITY Spartan Motors, Inc. and Subsidiaries Sales and Other Financial Information by Business Segment Unaudited Three Months Ended December 31, 2012 (amounts in thousands of dollars) Delivery & Emergency Specialty Response Service Vehicles Other Consolidated Vehicles Emergency $ $ Response Chassis 21,298 21,298 Sales Emergency Response Vehicle 23,633 23,633 Sales Utilimaster 46,496 46,496 Vehicle Sales Motorhome Chassis 20,413 20,413 Sales Other Specialty 1,016 1,016 Vehicles Aftermarket Parts 6,109 5,524 11,633 and Assemblies Total Sales $ $ $ 26,953 $ $ 124,489 44,931 52,605 - Depreciation and $ $ $ $ Amortization 391 623 441 $ 665 2,120 Expense Operating Income 306 (2,122) 1,204 (2,169) (2,781) (Loss) Segment Assets 77,806 73,567 27,565 66,213 245,151 Year Ended December 31, 2012 (amounts in thousands of dollars) Delivery & Emergency Specialty Response Service Vehicles Other Consolidated Vehicles Emergency $ $ $ $ $ Response Chassis 83,576 - - - 83,576 Sales Emergency Response Body 78,744 - - - 78,744 Sales Utilimaster - 150,255 - - 150,255 Vehicle Sales Motorhome Chassis - - 72,127 - 72,127 Sales Other Specialty - - 7,426 - 7,426 Vehicles Aftermarket Parts - 57,975 20,474 - 78,449 and Assemblies Total Sales $ 162,320 $ 208,230 $ 100,027 $ $ 470,577 - Depreciation and $ $ $ $ Amortization 1,711 2,648 1,945 $ 2,686 8,990 Expense Operating Income (2,951) 6,035 2,198 (7,873) (2,591) (Loss) Segment Assets 77,806 73,567 27,565 66,213 245,151 Spartan Motors, Inc. and Subsidiaries Sales and Other Financial Information by Business Segment Unaudited Period End Backlog (amounts in thousands of dollars) Dec. 31, March 31, June 30, Sept.30, Dec. 2012 2012 2012 31, 2011 2012 Emergency $ $ $ $32,454 $ Response Chassis* 34,057 34,644 31,323 37,005 Emergency 39,942 47,517 51,979 53,458 61,133 Response Vehicles* Total Emergency 73,999 82,161 83,302 85,912 98,138 Response Backlog Motorhome 10,018 10,712 10,885 12,863 13,453 Chassis * Other Vehicles* 2,287 150 - - 3,968 Aftermarket 2,955 2,610 3,989 4,536 9,179 Parts and Assemblies Total Specialty 15,260 13,472 14,874 17,399 26,600 Vehicles Backlog Delivery & 47,694 40,032 75,116 65,026 39,656 Service Vehicles * Total Backlog $ $ 173,292 168,337 164,394 136,953 135,665 * Anticipated time to fill backlog orders at December 31, 2012; 5 months or less for emergency response chassis; 7 months or less for emergency response vehicles; 2 months or less for motorhome chassis; 3 months or less for delivery and service vehicles; and 6 month or less for other products. Note: Effective with Q4 2012, eliminations for intercompany orders of emergency response chassis are reflected in the emergency response chassis sales and backlog figures. Previously these eliminations were reflected in the emergency response vehicles sales and backlog figures. Amounts for prior quarters have been adjusted to reflect this change. SOURCE Spartan Motors, Inc. Website: http://www.spartanmotors.com Contact: Joseph Nowicki, CFO, Spartan Motors, Inc., +1-517-543-6400 or Greg Salchow, Director IR & Treasury, Spartan Motors, Inc., +1-517-543-6400
Spartan Motors Reports Fourth Quarter and Full Year 2012 Results Highlighted by Revenue Growth
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