GuruFocus Premium Membership

Serving Intelligent Investors since 2004. Only 96 cents a day.

Free Trial

Free 7-day Trial
All Articles and Columns »

Spartan Motors Inc. Reports Operating Results (10-Q)

August 08, 2012 | About:
10qk

10qk

18 followers
Spartan Motors Inc. (SPAR) filed Quarterly Report for the period ended 2012-06-30.

Spartan Motors Inc has a market cap of $174.4 million; its shares were traded at around $5.28 with a P/E ratio of 21.5 and P/S ratio of 0.4. The dividend yield of Spartan Motors Inc stocks is 1.9%. Spartan Motors Inc had an annual average earning growth of 4.8% over the past 10 years.

Highlight of Business Operations:

Cost of products sold increased by $9.0 million or 10.4%, to $95.7 million in the second quarter of 2012 compared to $86.7 million in the second quarter of 2011, driven by the increase in sales volumes. As a percentage of sales, cost of products sold decreased to 83.6% in the second quarter of 2012, compared to 87.2% in the second quarter of 2011. This decrease is due to a favorable product mix that included a higher proportion of aftermarket parts and assemblies sales in 2012 in our Delivery and Service Vehicles segment, along with a decrease in restructuring charges in the second quarter of 2012, as compared with the prior year. Excluding restructuring charges, our adjusted cost of products sold increased by $10.1 million or 11.9% to $95.1 million or 83.1% of sales in the second quarter of 2012, compared to $85.0 million or 85.5% of sales in the second quarter of 2011, driven by the increase in revenue compared with the second quarter of 2011.

Gross profit increased by $6.0 million, or 47.2%, to $18.7 million for the quarter ended June 30, 2012 from $12.7 million for the same period in 2011. Consolidated gross margin increased to 16.4% from 12.7% over the same time period, impacted by the favorable product mix that included a higher proportion of aftermarket parts and assemblies and lower restructuring charges as discussed above. Excluding restructuring charges, our adjusted gross profit increased by $4.9 million, or 34.0% to $19.3 million in the second quarter of 2012 from $14.4 million in the second quarter of 2011, while our adjusted gross margin increased to 16.9% in the second quarter of 2012 compared to 14.5% for the same period in 2011, driven by the favorable sales mix in the second quarter of 2012.

Cost of products sold increased by $31.8 million or 18.8%, to $200.7 million for the six months ended June 30, 2012 compared to $168.9 million in 2011. As a percentage of sales, cost of products sold decreased to 86.1% in 2012, compared to 86.8% in 2011. This decrease is mainly due to a favorable product mix that included a higher proportion of higher margin aftermarket parts and assemblies sales in the six months ended June 30, 2012 in our Delivery and Service Vehicles segment, partially offset by higher restructuring charges incurred in the six months ended June 30, 2012 compared with the same period in 2011. We incurred restructuring charges of $4.2 million within cost of products sold during the six months ended June 30, 2012 as a result of the planned moves of our Utilimaster operations to Bristol, Indiana and our Reach manufacturing to Charlotte, Michigan, along with restructuring actions undertaken in our specialty vehicles operations, compared to $1.7 million incurred in the six months ended June 30, 2011 to align our structure and operating expenses with expected revenue levels. Excluding restructuring charges, our adjusted cost of products sold increased by $29.3 million or 17.5% to $196.5 million in the six months ended June 30, 2012 from $167.2 million in the same period of 2011, driven by the increase in revenue.

Gross profit increased by $6.9 million, or 27.0%, to $32.5 million in the six months ended June 30, 2012 from $25.6 million in the same period in 2011. The increase was the result of the higher sales volumes and favorable product mix, partially offset by restructuring charges, as discussed above. Consolidated gross margin increased to 13.9% from 13.2% over the same time period, impacted by product mix and restructuring charges as discussed above. Excluding restructuring charges, our adjusted gross profit increased by $9.3 million, or 33.9% to $36.7 million during the six months ended June 30, 2012 from $27.4 million during the six months ended June 30, 2011, while our adjusted gross margin increased to 15.7% for the first six months of 2012 compared to 14.1% for the same period in 2011.

Operating expenses increased by $1.4 million or 4.6% to $32.0 million or 13.7% of sales for the six month period end June 30, 2012, compared to $30.6 million or 15.7% of sales for the same period in 2011, mainly driven by higher restructuring expense incurred in 2012 related to the planned moves of our Utilimaster operations to Bristol, Indiana, along with restructuring activities undertaken in our Specialty Vehicles segment. Also contributing were higher Selling, general and administrative expenses incurred in the six months ended June 30, 2012 compared to the same period of 2011 due to additional provisions for certain earn-out payments associated with the increased revenues at our Utilimaster subsidiary, along with spending on our new ERP system. Excluding restructuring charges, our adjusted operating expense increased by $0.5 million, or 1.7% to $30.1 million or 12.9% of sales during the six months ended June 30, 2012, from $29.6 million or 15.2% of sales during the same period of 2011 due to the factors discussed above.

Read the The complete Report

About the author:

10qk
GuruFocus - Stock Picks and Market Insight of Gurus

Rating: 0.0/5 (0 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK