Supreme Industries, Inc. (NYSE Amex: STS) announced that gross profit was up 176% for 2011 ($32.4 million versus $18.4 million in 2010) and 254% for the fourth quarter ($8.6 million versus $2.4 million).
Consolidated net sales increased 20% to $65.5 million for the quarter, up from $54.5 million in last year's comparable period. Gross profit, as a percentage of sales, increased to 13.09%, compared with 4.44% in the fourth quarter of 2010, primarily due to increased sales, improved product mix and pricing, along with better management of labor and overhead costs.
The company reported net income from continuing operations of $1.9 million which included a tax benefit of $0.4 million, or $0.12 per diluted share, for the 2011 quarter, compared with a loss from continuing operations of $7.2 million, or $0.50 per share, in the prior-year fourth quarter. Including the impact from discontinued operations, net income improved to $0.11 per diluted share, reversing the year-ago net loss of $0.61 per share. Net income for the quarter and 2011 excluded a tax provision due to the company's valuation allowance.
Supreme President and Chief Executive Officer Kim Korth said: "It is very gratifying to report a second consecutive quarter of profitability for Supreme. While we still have work to do to ensure sustained profitability for the company, we are beginning to see increased consistency in our performance."
Full-year sales increased 36% to $300.8 million from $220.9 million in 2010. The sales order backlog at year end was $100 million, compared with $102 million a year ago. For the full-year 2011, income from continuing operations was $1.6 million, or $0.11 per diluted share, compared with a loss of $8.6 million, or $0.61 per share, in 2010. Including discontinued operations, net income improved to $0.05 per diluted share, reversing the year-ago net loss of $0.81 per share.
Net cash provided by operating activities during full-year 2011 totaled $14.5 million, compared with $1.3 million in 2010. Working capital was $35.8 million at Dec. 31, 2011, compared with $19.6 million at Dec. 25, 2010 which included $25.5 million outstanding under the bank line of credit classified as a current liability. Stockholders' equity was $55.3 million, or $3.75 per share, at Dec. 31, 2011, compared with $51.9 million, or $3.62 per share, at Dec. 25, 2010.
"While we had a difficult first half of the year, we finished 2011 with significantly improved performance in all aspects of our business. We were particularly gratified to see the increase in sales in the fourth quarter, a quarter that historically has been soft for Supreme," Korth added. "Entering 2012, we believe we can leverage the strong foundation built in 2011 to make further improvements in our performance."
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