Supreme Reports 1Q Gains Over 2010

Supreme Industries, Inc. (NYSE Amex: STS) announced that first-quarter 2011 consolidated net sales were $68.4 million, an increase of approximately 49% over the $46 million in net sales in the same period a year ago. Gross profit was $6.5 million, or 9.5% of net sales, up by approximately 71% from last year's $3.8 million or 8.4%.

Selling, general and administrative expenses were $7.3 million for the first quarter of 2011. At 10.7% of sales, these expenses were lower than the 12.1% recorded for the same period in 2010. Interest expense was also lower, at $0.3 million compared to $0.5 million in first quarter 2010.

For the quarter, the company experienced an operating loss from continuing operations of $0.7 million, versus a $1.5 million loss in the first quarter of 2010. The company reported a net loss from continuing operations of $1 million or $0.07 per share, in the first quarter of 2011, compared to the loss from continuing operations of $2 million or $0.14 per share in the same quarter of 2010.

The sales order backlog continued to grow during the first quarter and totaled a record $133 million at quarter end compared with $68 million a year ago. Major fleet customers have returned to the market and Supreme was awarded a larger share of their business.

"As our business has experienced dramatic growth from the depths of the recession, we have been very focused on successfully managing that ramp-up and driving improvements throughout our operations,” said Supreme President and Chief Executive Officer Kim Korth. “By managing to metrics and sharing best practices across our manufacturing facilities, we are working to improve bottom-line financial performance while we deliver customers the high-value, high-quality products that they have come to expect from Supreme."

Supreme was in compliance with its minimum EBITDA and its Tangible Net Worth financial covenants under its senior bank loan agreement. Borrowings were $25.1 million as of April 2, 2011 versus $25.5 million on December 25, 2010.

"We believe that the truck market will remain strong as we finish out this year's fleet run and we concentrate our energies on our retail truck business in the second half of the year. While the bus market is likely to experience some softening in 2012 due to the financial stress of many local and state governments, we are using this slowdown to expand our efforts with niche private sector customers. We are also encouraged by the continued growth opportunities in our Armored/Specialty Vehicles business. Supreme is positioning itself to improve its competitive position in all of its key markets and to establish consistent performance at an efficiency that rewards the company, our employees, and stakeholders.”

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