Spartan Motors Inc., parent company to Spartan Chassis Inc., reported a 34.8% increase in second-quarter revenue to $64 million while net income during the period was $3.5 million, or 10 cents per share, compared to $3.7 million, or 11 cents per share.
“Spartan’s strong second-quarter results highlight the increasing demand for last-mile delivery and emergency response vehicles and our team’s continued focus on executing efficiencies across our operations,” said Daryl Adams, president, and chief executive officer. “We achieved broad-based, positive results in each of our business units.”
Other highlights include:
• Adjusted net income improved $0.8 million, or 18.9%, to $5.1 million, or $0.15 per share, from $4.3 million, or $0.12 per share.
• Adjusted EBITDA increased 6.8% to $9.5 million, or 3.8% of sales, from $8.9 million, or 4.8% of sales.
• Consolidated backlog at June 30, 2019, excluding the one-time multi-year USPS truck body order, totaled $465.8 million, up $146.0 million, or 45.7%, compared to $319.8 million at June 30, 2018. The increase was primarily driven by strong demand for last mile delivery vehicles.
Spartan’s Specialty Chassis and Vehicles (SCV) business unit remains focused on driving growth and operating performance within the luxury motor coach segment as well as new addressable markets for custom chassis and assembly operations, according to the company.
SCV continued to lead in new technological innovations in luxury motorhome chassis, unveiling the new E-Z Steer technology at the 2019 Entegra Coach Homecoming event in May. This new feature offers adjustable steering wheel position and tension to help reduce driver fatigue on long trips, while also improving maneuverability at low speeds and ease of parking the coach.
The strong relationships the SCV team has built with customers like Entegra Coach continue to pay dividends in the form of enhanced growth opportunities in key market segments, the company stated.
SCV segment sales decreased $5.8 million, or 12.1%, to $41.7 million from $47.5 million a year ago. The revenue decrease was mainly due to lower luxury motor coach chassis sales, offset by higher Reach sales and contract manufacturing.
To view the full report click here.