Spartan Motors Inc., parent to Spartan Chassis Inc., reported a 35.2% increase in first-quarter revenue compared with sales in the year-ago period.
“We are pleased with the positive start to the year, as many of the initiatives we pursued last year are gaining traction,” said President and Chief Executive Officer Daryl Adams. “With the hard work and concentrated efforts of our entire team, we were able mitigate continued tariff-related commodity headwinds and post solid operating results to start the year. We also achieved new business wins in several key markets in all three of our business units, which we expect will help drive our results for the remainder of the year.”
• Sales increased $61 million, or 35.2%, to $234.0 million from $173.0 million.
• Net income decreased to $1.4 million, or 4 cents per share, from $4.2 million, or 12 cents per share.
• First-quarter results included incremental tariff-related commodity cost increases and higher component costs totaling $2.3 million, or 5 cents per share, that negatively impacted net income, adjusted net income and adjusted EBITDA.
• Gross profit margin declined 230 basis points to 10.5% of sales from 12.8% of sales. Of the decline, 170 basis points were attributable to $32.5 million of USPS chassis pass-through sales and an additional 100 basis points were due to the tariff-related headwinds, partially offset by pricing and operational improvements.
• Adjusted EBITDA decreased 17.9% to $4.6 million, or 2% of sales, from $5.6 million, or 3.2% of sales.
• Adjusted net income decreased $1.8 million, or 54.5%, to $1.5 million, or 4 cents per share, from $3.3 million, or 9 cents per share.
• Consolidated backlog, excluding the one-time multi-year USPS truck body order at March 31, totaled $359.2 million, up $18.6 million, or 5.5%, compared to $340.6 million at March 31, 2018. Including the USPS order, consolidated backlog totaled $432.3 million compared to $554.6 million a year ago.
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