Spartan Motors, Inc. (NASDAQ: SPAR) posted net income of $1.2 million on revenue of $144.8 million versus net income of $0.2 million in the second quarter of 2014.
Results for the second quarter of 2015 include pre-tax restructuring expenses of $0.8 million in the Emergency Response (ER) segment and a charge of $1.1 million stemming from an agreement with the National Highway Traffic Safety Administration (NHTSA).
For the second quarter of 2015 compared to the second quarter of 2014:
- Net sales of $144.8 million, up 25.1% from $115.8 million
- Gross margin of 12.0% of sales versus 10.9%*
- Operating income of $2.3 million versus operating income of approximately $31,000
- Net income of $1.2 million, or $0.03 per share, versus net income of $0.2 million, or $0.01 per share
- Cash balance of $20.6 million at June 30, 2015, up from $12.0 million at March 31, 2015
- Order backlog increased to $262.7 million at June 30, 2015, from $243.7 million at December 31, 2014 and $246.7 million at June 30, 2014
Daryl Adams, Spartan's Chief Executive Officer, stated, "We are pleased to report growth in revenue and operating profit in the second quarter of 2015. All three of our segments reported improved operating results compared to last year. Operating income for the second quarter totaled $2.3 million, including NHTSA settlement costs of $1.1 million and ER restructuring costs of $0.8 million. Even with these costs included in our results, the company's performance is moving in the right direction.
"Spartan's top priority continues to be turning around the performance of the Emergency Response (ER) segment, especially ER Body operations, where we worked to eliminate production bottlenecks. There are more obstacles to be overcome, but we are making progress and starting to see a positive impact on operating results. The Delivery & Service Vehicles (DSV) and Specialty Chassis & Vehicles (SCV) segments reported higher revenue and operating income resulting from efforts to diversify their customer bases and product offerings. Moving forward, we will work to gain momentum as we implement operational initiatives throughout the company, toward our goal of improved operating performance," concluded Adams.