Goshen, ind.-based Supreme Industries Inc., a builder of specialized commercial vehicles, reported that consolidated net sales from continuing operations in 2014 were $236.3 million, compared with $246.8 million in 2013.
The revenue decline in 2014 was due to softer retail demand, as well as a chassis shortage and severe weather that hampered first-quarter sales and profitability. As a result, full-year gross margin contracted to 18.6% of net sales, compared with 19.6% of net sales in the prior year.
Operating income in 2014 was $13 million, compared with $17.6 million in 2013, and income from continuing operations was $8.5 million for 2014, down from $11.2 million the year before.
The company’s discontinued shuttle bus operations generated a $1.6 million after-tax net loss in 2014 and an after-tax net loss of $4.8 million in 2013. Including the negative impact from discontinued operations on both years’ results, reported net income improved to $6.9 million, or 41 cents per diluted share in 2014, up from reported net income of $6.4 million, or 39 cents per diluted share, last year.
Fourth-quarter net income was $1.5 million, down 2% from $1.7 million for the same period a year ago.
Consolidated net sales from continuing operations in the fourth quarter of 2014 declined to $53.3 million, compared with $64.9 million in the same quarter last year. In the prior year quarter, net sales reflected an incremental fleet order of approximately $8 million that was placed unseasonably late during the 2013 calendar year. That account returned to a more normalized spring delivery pattern in 2014, resulting in the majority of the year-over-year decline of fourth quarter sales.
“The work truck market reported mixed results versus 2013 for the quarter; however, our new orders gained momentum,” said Weber. “Our customers are generally optimistic about future market conditions and are anticipating growth in 2015, which is reflected in our improved order backlog.”