Spartan Motors Inc., parent to Spartan Chassis Inc., reported an 8.4% increase in second-quarter sales, rising to $184 million from $169.7 million.
Net income during the period, ending June 30, improved $2.6 million, or 232.7%, to $3.7 million, or 11 cents per share, from $1.1 million, or 3 cents per share.
Other highlights showed:
- Gross profit margin improved 280 basis points to 14.3% of sales, from 11.5% of sales. Commodity cost increases in 2018 resulted in a $1.0 million reduction to gross profit, primarily in Fleet Vehicles and Services, offset by operational and organizational improvements.
- Adjusted EBITDA increased 79.6% to $8.9 million, or 4.8% of sales, from $4.9 million, or 2.9% of sales.
- Adjusted net income improved $1.9 million, or 82.6%, to $4.3 million, or $0.12 per share, from $2.4 million, or $0.07 per share.
- Backlog increased $151.3 million to $524.1 million at June 30, 2018, from $372.8 million at June 30, 2017.
SCV segment sales increased 32.7% to $47.5 million from $35.8 million a year ago. Revenues were driven mainly by a $9 million increase in luxury motorcoach chassis sales, due to increased unit volume driven by market share gains and continued strong industry demand.
Adjusted EBITDA increased $1.6 million to $4.4 million, or 9.2% of sales, from $2.8 million, or 7.7% of sales, a year ago, mainly due to the strong momentum in luxury motor coach chassis.
The segment backlog at June 30, 2018, totaled $35.1 million, up 31.5%, compared to $26.7 million at June 30, 2017.
“The company’s first-half performance reflects solid top-line growth and an acceleration in profitability, despite inflationary commodity costs,” said Matt Long, interim CFO of Spartan Motors. “Our commitment and ability to achieve profitable growth continues to reflect operational and organizational improvements across all production facilities.
“Although we expect to see stronger year-over-year revenue growth in the second half of 2018, driven primarily by last-mile delivery vehicle orders, which include USPS truck body, Reach and walk-in vans, we do foresee continued headwinds from rising commodity costs.”