Spartan Motors Inc. reported a 24.1% increase in sales for its fourth quarter, ended Dec. 31, while net income soared 158.9% during the three-month period. For the full year, revenue improved 19.7%, including a 27.1% increase in motorhome chassis sales.
Fourth-quarter revenue totaled $181.1 million compared with $145.9 million in the prior year period. Fourth-quarter net income rose to $2.4 million, or 7 cents per diluted share, from $0.9 million, or 3 cents per diluted share, a year ago.
Gross profit margin improved 130 basis points to 13.6% of sales from 12.3% of sales and adjusted EBITDA increased 118.3% to $9.3 million, or 5.1% of sales, compared to $4.3 million, or 2.9% of sales. Adjusted net income improved 156.4% to $3.9 million, or 11 cents per share from $1.5 million, or 4 cents per share.
Highlights for the full year 2017 compared to the full year 2016:
• Sales increased $116.3 million, or 19.7%, to $707.1 million from $590.8 million.
• Net income improved $7.3 million, or 85.2%, to $15.9 million, or 46 cents per share, from $8.6 million, or 25 cents per share.
• Adjusted EBITDA increased 37% to $31.3 million, or 4.4% of sales, from $22.9 million, or 3.9% of sales.
• Adjusted net income improved 34.5% to $14.9 million, or $0.43 per share, from $11.1 million, or $0.32 per share.
The Specialty Vehicle & Vehicles (SVC) segment sales increased 17.9% to $158.8 million from $134.8 million. Sales of motorhome chassis increased 27.1% to $124.6 million from $98 million, primarily due to increased motorhome shipments year-over-year as a result of market share gains.
Adjusted EBITDA increased $5.8 million to $14.1 million, or 8.9% of sales, from $8.3 million, or 6.2% of sales, a year ago, primarily due to increased sales and improved operational performance.
The SCV segment backlog at Dec. 31 totaled $33.8 million, up 68.7%, compared to $20 million a year ago, as a result of increased motorhome orders.
“With our 2017 fourth quarter net income more than doubling, which also marks our eighth consecutive profitable quarter on an adjusted basis, Spartan has successfully completed its turnaround and is now focused on its growth strategy as we move into 2018 and beyond,” said Daryl Adams, Spartan president and CEO. “We can take pride in the strong performance we posted throughout the year, which was based on the actions we took to transition our company to a leader in purpose-built specialty vehicles that is focused on performance and innovation.”