Supreme Industries, Inc. (NYSE MKT: STS) announced that net income in the second quarter was $8.3 million, up 90.9% from $4.3 million in the same quarter of the prior year.
Consolidated net sales increased 12.4% to $92.9 million in the second quarter, compared with $82.6 million in the same quarter last year. Diluted earnings per share rose 84.6% to $0.48 per share, up from $0.26 per share in the second quarter of 2015.
"Demand for medium-duty work trucks remained solid and Supreme's growth rate in the second quarter continued to outpace industry expansion," said Mark Weber, President and Chief Executive Officer. "We remain focused on pursuing organic growth opportunities and further improving both our cost structure and operating performance."
Second-quarter gross margin widened to 24.1%, compared with 18.7% in 2015's second quarter. The 2016 gross margin expansion was the result of a higher mix of retail sales and better overhead absorption, versus the prior year, according to Weber. Selling, general and administrative expenses increased $0.7 million, but declined as a percentage of sales to 10.7% from 11.2% in the prior year period. Operating income increased 94.7% to $12.5 million in the quarter as compared with $6.4 million in the same quarter of 2015.
Consolidated net sales increased 11.3%, to $162.3 million, in the first half of 2016, compared with $145.9 million in the same period of the prior year. Higher net sales in 2016's second quarter and first half were driven by increased sales volume of work trucks-particularly dry freight vans and insulated bodies.
Gross margin in the six-month period expanded to 23.1%, up from 18.4% in 2015's comparable period. First-half operating income in 2016 increased 92.0% to $18.3 million, compared with $9.5 million in last year's first half. Net income grew 92.0% to $12.1 million, up from $6.3 million in the first half of 2015. Diluted earnings per share increased to $0.70 per share in the first half, versus $0.37 per share in the comparable period of 2015.
Sales order backlog at the end of the second quarter stood at $75.5 million, which is up from $74.0 million, at the end of last year's second quarter.
Due to the increased sales volume, working capital increased to $62.8 million at June 25, 2016, compared with $51.6 million at Dec. 26, 2015. The Company ended the quarter with $7.7 million in cash and cash equivalents, and $8.0 million in debt. Stockholders' equity increased to $99.8 million at June 25, 2016, compared with $88.6 million at Dec. 26, 2015, increasing book value per share to $5.93 at quarter end, compared with $5.32 at the end of last year.