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Supreme Industries Reports Significantly Higher First-Quarter Gross Margin and Pre-Tax Income



  Supreme Industries Reports Significantly Higher First-Quarter Gross Margin
  and Pre-Tax Income

                    Gross Margin Expands 230 Basis Points

                 Pre-Tax Income Up 37%, Reaches $3.4 Million

Business Wire

GOSHEN, Ind. -- April 25, 2013

Supreme Industries, Inc. (NYSE MKT: STS), a leading manufacturer of
specialized commercial vehicles including truck bodies, shuttle buses and
armored vehicles, today announced improved pre-tax earnings for its first
quarter ended March 30, 2013.

2013 First-Quarter Results

Consolidated net sales of $65.9 million for the first quarter declined 8.7%
from $72.2 million in last year’s comparable period. The truck division, which
represented 76% of total net sales, recorded higher sales in the quarter
compared with the prior year as the Company increased its retail sales
offsetting the industry-wide decline in rental fleet orders during the first
quarter of 2013. Bus sales declined $7.4 million during the first quarter of
2013 due to persisting competitive pressure and discounting incentives,
particularly on state and municipal orders.

Gross margin as a percentage of sales increased to 17.3%, compared with 15.0%
in last year’s comparable period. Despite lower net sales volume,
first-quarter gross profit rose to $11.4 million, up from $10.8 million, in
2012. The significant gross margin improvement reflected a favorable product
mix, pricing disciplines and efficiency improvements at the Company’s
manufacturing facilities.

Supreme reported that pre-tax income increased 37.2% to $3.4 million compared
with $2.5 million in 2012’s first quarter. For the first quarter of 2013, the
Company recorded income tax expense at an effective tax rate of 32.3%. Supreme
reported no tax provision in the first quarter of 2012 resulting from the
utilization of previously unrecognized net operating loss carryforwards.

Net income for the first quarter of 2013 was $2.3 million, or $0.15 per
diluted share, compared with net income of $2.5 million, or $0.16 per diluted
share, last year. Applying the 2013 effective tax rate to results in the first
quarter of 2012, would have resulted in net income of $1.7 million, or $0.11
per diluted share.

Supreme’s Chief Financial Officer and Interim Chief Executive Officer Matthew
Long said: “The truck division’s strong performance was a significant
highlight during the year’s opening quarter. By responding to softer demand
from fleet operators and increasing retail sales, we not only achieved higher
year-over-year sales of trucks, but also substantial margin improvement. In
addition to the 230 basis points of margin expansion versus last year’s first
quarter, margins widened more than 400 basis points sequentially since the
fourth quarter of 2012.”

Working capital was $41.7 million at March 30, 2013, up from $38.6 million at
Dec. 29, 2012. The working capital ratio was 2.4 to 1 versus 2.7 to 1 for the
respective dates. During the quarter, Supreme invested $1.7 million in
facilities and equipment primarily to complete capital projects initiated in
2012. Total debt increased to $14.8 million at quarter end, compared with
$14.1 million at Dec. 29, 2012. Stockholders’ equity increased 3.6% to $69.6
million, or book value of $4.55 per share, at March 30, 2013, compared with
$67.2 million, or book value of $4.41 per share, at Dec. 29, 2012. Net cash
used by operating activities for the first quarter of 2013 totaled $0.3
million, compared with $2.6 million in the first quarter of 2012.

As disclosed in 2012’s second quarter, the Company self-identified an
immaterial error related to revenue recognition. Accordingly, its first
quarter consolidated financial statements reflect the correction of the
immaterial error.

Conference Call Information

A conference call will be held tomorrow, April 26, 2013, at 9 a.m. ET to
review the first-quarter results. To participate in the live call, dial
877-317-6789 (International: 412-317-6789) 10 minutes before the call begins,
or 8:50 a.m. ET. The conference ID is 10027941. The call also will be streamed
live and can be accessed at http://www.SupremeInd.com. Those unable to
participate in the live conference call may access a replay, which will be
available on Supreme’s website for approximately 30 days.

To be added to Supreme Industries’ email distribution list, please click on
the link below:
http://www.clearperspectivegroup.com/clearsite/sts/emailoptin.html.

About Supreme Industries

Supreme Industries, Inc. (NYSE MKT: STS), is a nationwide manufacturer of
specialized truck bodies produced to the specifications of its customers.
Supreme also manufactures special-purpose “shuttle-type” buses and armored
vehicles. The Company's transportation equipment products are used by a wide
variety of industrial, commercial and law enforcement customers.

News releases and other information on the Company are available on the
Internet at: http://www.supremeind.com or
http://www.b2i.us/irpass.asp?BzID=1482&to=ea&s=0

Other than historical facts contained herein, the matters set forth in this
news release are “forward-looking statements” within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act, as amended, and reflect the view of management with
respect to future events. When used in this report, words such as “believe,”
“expect,” “anticipate,” “estimate,” “intend,” “plan” and similar expressions,
as they relate to Supreme or its plans or operations, identify forward-looking
statements. Such forward-looking statements are based on assumptions made by,
and information currently available to, management. Although management
believes that the expectations reflected in such forward-looking statements
are reasonable, it can give no assurance that the expectations reflected in
such forward-looking statements are reasonable, and it can give no assurance
that such expectations will prove to be correct. Important factors that could
cause actual results to differ materially from such expectations include,
without limitation, an economic slowdown in the specialized vehicle industry,
limitations on the availability of chassis on which Supreme’s product is
dependent, availability of raw materials, raw material cost increases and
severe interest rate increases. Furthermore, Supreme can provide no assurance
that any raw material cost increases can be passed on to its customers through
implementation of price increases for Supreme’s products. The forward-looking
statements contained herein reflect the current view of management with
respect to future events and are subject to those factors and other risks,
uncertainties and assumptions relating to the operations, results of
operations, cash flows and financial position of Supreme. Supreme assumes no
obligation to update the forward-looking statements or to update the reasons
actual results could differ from those contemplated by such forward-looking
statements.

                          —FINANCIAL RESULTS FOLLOW—

Supreme Industries, Inc. and Subsidiaries
Consolidated Statements of Income
                                              
                                               Three Months Ended
                                               March 30,        March 31,
                                               2013             2012
Net sales                                      $ 65,880,891     $ 72,166,821
Cost of sales                                    54,472,790       61,351,104  
Gross profit                                     11,408,101       10,815,717
                                                                 
Selling, general and administrative expenses     8,575,760        8,548,390
Other income                                     (713,391   )     (478,948   )
Operating income                                 3,545,732        2,746,275
                                                                 
Interest expense                                 142,318          264,749     
Income before income tax                         3,403,414        2,481,526
                                                                 
Income tax expense*                              1,099,608        -           
Net income                                     $ 2,303,806      $ 2,481,526   
                                                                 
Income per share:
Basic                                          $ 0.15           $ 0.16
Diluted                                          0.15             0.16
                                                                 
Shares used in the computation of income per
share:
Basic                                            15,250,784       15,161,149
Diluted                                          15,544,353       15,380,960
                                                                              

* The Company reported no tax provision in the first quarter of 2012,
resulting from the utilization of previously unrecognized net operating loss
carryforwards.

Supreme Industries, Inc. and Subsidiaries
Consolidated Balance Sheets
                                                            
                                             March 30,       December 29,
                                             2013            2012
                                                              
Assets
Current assets                               $ 71,747,864    $ 61,007,286
Property, plant and equipment, net             43,750,476      42,937,988
Other assets                                   1,127,242       1,142,809
Total assets                                 $ 116,625,582   $ 105,088,083
                                                              
Liabilities
Current liabilities                          $ 30,005,346    $ 22,363,408
Long-term liabilities                          17,036,320      15,561,793
Total liabilities                              47,041,666      37,925,201
Total stockholders' equity                     69,583,916      67,162,882
Total liabilities and stockholders' equity   $ 116,625,582   $ 105,088,083
                                                                

Contact:

Supreme Industries, Inc.
Investor and Media Contact:
Matthew J. Dennis, CFA, Supreme Investor Relations, 574-228-4130
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