Supreme Industries, Inc., reported that net income for 2007’s final quarter improved 113 percent to $900,000, or $.07 per diluted share, up from $400,000, or $.03 per diluted share, a year ago. Full-year net income was $4.2 million, or $.32 per diluted share, versus $4.6 million, or $.36 per diluted share, for 2006.
Due principally to the slowing economy and related reduction in demand in the truck manufacturing industry, fourth-quarter and full-year 2007 net sales decreased 4 percent and 8 percent, to $73.7 million and $313.3 million, respectively. This compares with net sales of $76.5 million and $340.7 million in the like periods of 2006. Year-over-year sales in the company’s largest segment-dry freight vehicles-declined 23 percent. Partially offsetting this decline were sales increases of Supreme’s luxury motorcoach and armored products.
Gross profit margin as a percentage of net sales for the year improved slightly to 11.2 percent from 11.0 percent in 2006. Selling, general and administrative expenses declined for the fourth quarter and full year by 5 percent and 2 percent, respectively, compared with the same periods in 2006. The decline in SG&A reflected increased cooperative marketing funds from chassis manufacturers and lower commission-related expenses, partially offset by Sarbanes-Oxley compliance costs.
"As predicted, 2007 proved to be challenging for the truck manufacturing industry," said Supreme President and Chief Operating Officer Robert W. Wilson. "However, management’s ongoing strategy of developing products for high-growth markets, such as the hybrid vehicle and homeland security sectors, pursuing incremental market opportunities derived from existing products and enhancing productivity and efficiency helped to mitigate the effects of the downturn on Supreme during the year.
"Industry analysts are predicting down-cycle persistence through at least the first half of 2008, with the supply/demand dynamic for our core product group possibly tipping in our favor later in the year. Our strategy was validated in 2007 and Supreme is well positioned for the industry’s recovery."
The Supreme Industries Board of Directors recently approved a cash dividend on its outstanding Class A and Class B Common Stock, based upon the company’s financial condition and business prospects. Stockholders of record as of
Feb. 25 will receive $0.095 for each share owned on that date, payable on March 3. This cash dividend is the eighteenth consecutive quarterly cash dividend since the Company commenced payment of regular cash dividends in 2003. Future cash dividend payments are necessarily subject to business conditions.