Spartan Motors Reports Fourth Quarter and Full Year 2012 Results Highlighted by Revenue Growth

 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
 
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