John Sztykiel, President and CEO of Charlotte, Michigan-based Spartan Motors Inc. (NASDAQ: SPAR), said in yesterday’s webcast Earning’s Call that he remained bullish about Spartan’s future prospects in spite of the company recording a Q2 adjusted net loss of $424,000 ($0.01 per diluted share) in Q2, 2011. The loss came on the back of $2.8 million in restructuring charges and a dramatic 14 percent drop in sales which cost the company some $16 million in lost revenue.
Sztykiel – who expects growth in both company revenue and earnings in the second half of the year – was upbeat about Spartan’s performance in the recreational vehicle (RV) market where – in spite of a slight improvement in the RV market as a whole – Spartan experienced a 26 percent fall in chassis sales. The Spartan CEO noted that the motorhome sales mix has shifted from high end diesel to less expensive models in the Class A and Class C markets with some existing customers downsizing and new customers opting for smaller sized motor homes.
In 2012, Spartan Motors Inc (SMI) is relocating their motorhome chassis manufacturing operation from Charlotte, Michigan to Wakarusa, Indiana. Northern Indiana – the motorhome production capital of America – is home to many of Spartan’s chassis customers. Indeed, more than 70% of all RV’s and 58% of all Class A motorhomes are manufactured in the Hoosier State. Sztykiel reiterated that Spartan’s current focus will remain on motorized RVs principally because of the size of the RV market from a dollar perspective and the RV market’s continued popularity amongst vacationers. An “RV is not only…inexpensive but it gives you the freedom to go wherever you want whenever you want. Thus as we look to the future we’re still very, very excited about it,” he said.
SMI is the parent company of four subsidiaries:
- Spartan Chassis™
- Crimson Fire™
- Crimson Fire Aerials™
Key Q2 Financials:
- Net sales of $99.4 million (down 14.1 percent from Q2 2010)
- Adjusted gross margin of 14.6 percent of sales (down from 15.1 percent in Q2 2010)
- Adjusted operating expense of $15.3 million (down $0.2 million compared to Q2 2010)
- Restructuring charges of $1.8 million, net of tax, or $0.06 per diluted share
- Net loss of $2.2 million ($0.07 per diluted share), or adjusted net loss of $0.4 million ($0.01 per diluted share) before restructuring charges
- Cash from continuing operations of $8.4 million
- Ending consolidated backlog of $179.3 million (up 8.0 percent from Q1 2011)
- Total debt of $5.2 million
- Cash balance of $30.6 million (up $16.1 million from Q4 2010)
Source: Spartan Motors Inc