Spartan Motors Inc., parent to Spartan Chassis Inc., today (May 5) reported a net loss of $2.9 million or 9 cents per share on revenue of $128.4 million versus a net loss of $2.1 million, or 6 cents per share in the first quarter of 2014. Results for the first quarter of 2015 include pre-tax restructuring expenses of $1.2 million in Spartan’s Emergency Response (ER) segment.
Other first-quarter results showed:
• Net sales of $128.4 million, up 0.3% from $128.0 million.
• Gross margin of 10.7% of sales versus 10%.
• Operating loss of $4.4 million versus an operating loss of $3.5 million.
• Order backlog increased to $264.0 million at March 31 from $243.7 million at December 31, 2014.
The company said that total revenue declined from the first quarter of 2014 due to lower vehicle production, partially offset by higher aftermarket revenue. Vehicle production was constrained by a shortage of cutaway van chassis as well as an issue with a walk-in van component supplier. The supplier issue resulted in the shipment of approximately 120 units of a 665-unit order in the second quarter of 2015 rather than in the first quarter.
Spartan CEO Daryl Adams stated, “Continuous improvement and incremental progress characterized the first quarter of 2015. Turning around the performance of the ER segment’s body business remains Spartan’s top priority and received most of our attention during the quarter. The ER segment’s revenue increased and body production improved throughout the quarter as we reduced bottlenecks in our production processes. More work and investment is required, but I am encouraged by the progress made and am confident we have the right plan and team in place.
“The Delivery & Service Vehicles (DSV) and Specialty Chassis & Vehicles (SCV) segments both performed well during the quarter, reporting higher profitability compared to the first quarter of 2014. DSV produced most of a 665-unit walk-in van order during the first quarter, with the remainder shipped early in the second quarter. DSV experienced a favorable product mix in its truck body line, along with higher Aftermarket and Service revenue versus last year. SCV posted revenue growth due to a favorable mix of motorhome chassis, along with growth in Aftermarket Parts revenue. DSV and SCV ended the first quarter of 2015 with positive momentum heading into the seasonally stronger second and third quarters.”
The SCV segment, which includes motorhome chassis production, reported higher revenue and operating income in the first quarter of 2015 compared to the prior year. Segment revenue increased 12.8% to $30.3 million from $26.8 million with sales of motorhome and bus chassis climbing 7.2% to $23.3 million from $21.8 million. Aftermarket Parts & Assemblies (APA) revenue rose to $4.4 million from $3.0 million.
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