Supreme Industries Inc., a manufacturer of specialized commercial vehicles including truck bodies, trolleys and specialty vehicles, today announced financial results for its third quarter ended Sept. 27.
Consolidated net sales from continuing operations increased to $58 million in the third quarter of 2014, compared with $56.7 million last year. Net income from continuing operations was $2.5 million, essentially unchanged from the same quarter a year ago.
“Medium-duty sales are showing continued strength, which is in line with related industry reports,” said Mark Weber, president and CEO. “These customers are generally optimistic concerning their respective market conditions and anticipate continued growth well into 2015.”
Gross profit from continuing operations in the quarter was $11.3 million, or 19.5% of sales, compared with $11.6 million, or 20.5% of sales, in the prior-year quarter. The decrease of $0.3 million is primarily due to product and customer mix. Operating income from continuing operations was $3.8 million, compared with $4.0 million in last year’s third quarter.
For the nine months, sales from continuing operations increased to $183 million, up from $181.9 million last year.
The Goshen, Ind.-base company’s discontinued shuttle bus operations generated a $1.6 million after-tax net loss during the current year nine-month period, compared with a loss of $4.3 million last year. Including the negative impact on 2013’s results from discontinued operations, reported net income improved to $5.4 million, or $0.32 per diluted share, up from reported net income of $4.8 million, or $0.29 per diluted share, in last year’s comparable period.
Gross margin for the nine-months was 18.5% of sales, compared with 20.5% in the prior year. The lower margin reflects a chassis shortage and severe weather impact in the first quarter of 2014, and a higher mix of sales to fleet customers compared with last year. Correspondingly, gross profit declined to $33.8 million, compared with $37.2 million in last year’s comparable nine-month period.