Spartan Motors Inc., parent to motorhome supplier Spartan Chassis Inc., reported solid first-quarter results highlighted by a 482% increase in net income.
Sales during the three-month period increased 3.6% to $173.0 million from $167.1 million the year prior while gross profit margin improved 300 basis points to 12.8% of sales from 9.8% of sales. Net income improved to $4.2 million, or 12 cents per share, from a loss of $1.1 million, or 3 cents per share a year ago. The company noted that the previous year included $2.6 million of acquisition and restructuring related expenses.
Other highlights included:
- Adjusted EBITDA increased 33.8% to $5.6 million, or 3.2% of sales, from $4.2 million, or 2.5% of sales.
- Adjusted net income improved $2 million, or 158.3% to $3.3 million, or 9 cents per share, from $1.3 million, or 4 cents per share.
- Backlog increased $203.3 million to $554.6 million at March 31 from $351.3 million a year ago.
“We really hit the ground running in 2018, as we experienced another strong, consecutive quarter of profitable growth,” said President and Chief Executive Officer Daryl Adams. “The robust start to the year was driven by the ongoing efforts of our entire team to generate continued operational improvement as well as strong growth in our core markets.”
Specialty Chassis & Vehicles (SCV) segment sales increased 46.4% to $48.2 million from $33 million a year ago. Revenues were driven mainly by a $13.5 million increase in luxury motor coach chassis sales, resulting from market share gains and continued strong industry demand.
Adjusted EBITDA increased $1.6 million to $3.1 million, or 6.5% of sales, from $1.5 million, or 4.7% of sales, a year ago, mainly due to strong momentum in motorhome chassis and operational improvements.
The segment backlog at March 31 totaled $29.7 million, up 29.8% compared to $22.8 million a year ago.