Supreme Industries Inc (STS, Financial) filed Quarterly Report for the period ended 2012-06-30.
Supreme Industries, Inc. has a market cap of $62.7 million; its shares were traded at around $4.02 with a P/E ratio of 9 and P/S ratio of 0.2.
Gross profit increased by $5.4 million, or 68%, to $13.5 million for the three months ended June 30, 2012, as compared with $8.1 million for the three months ended July 2, 2011. Gross profit increased by $9.9 million, or 68%, to $24.3 million for the six months ended June 30, 2012, as compared with $14.5 million for the six months ended July 2, 2011. The following table presents the components of cost of sales as a percentage of net sales and the changes from period to period:
Selling, general and administrative (G&A) expenses increased by $1.3 million, or 19.3%, to $8.2 million for the three months ended June 30, 2012, as compared with $6.9 million for the three months ended July 2, 2011. Selling and G&A expenses increased by $2.9 million, or 20.7%, to $16.8 million for the six months ended June 30, 2012, as compared with $13.9 million for the six months ended July 2, 2011. The following table presents selling and G&A expenses as a percentage of net sales and the changes from period to period:
At December 31, 2011, the Company had a tax valuation allowance for net deferred tax assets of $4.6 million, the utilization of which was uncertain as of that date. In the second quarter of 2012, the Company determined it was likely the net deferred tax assets would be realized based upon sustained profitability and forecasted future operating results. As a result, the Company reversed $0.4 million of its $0.8 million valuation allowance, with the reversal recorded as a non-cash income tax benefit for the three and six months ended June 30, 2012. The Company expects that the remaining valuation allowance will be utilized during the second half of 2012 consistent with the Companys expected tax position. As the Company has generated taxable income and the release of a portion of the valuation allowance, the Company recorded a tax provision of $0.1 million (effective tax rate of 1.5%) for the three and six months ended June 30, 2012. Net income for the 2011 period excluded a tax provision due to the tax valuation allowance. The tax rate for 2013 and beyond could be significantly higher than 2012.
Net income from continuing operations increased by $6.2 million to $5.4 million (6.4% of net sales) for the three months ended June 30, 2012, from a net loss of $0.8 million (0.8% of net sales) for the three months ended July 2, 2011. Net income from continuing operations increased by $9.8 million to $7.9 million (5.0% of net sales) for the six months ended June 30, 2012, from a net loss of $1.9 million (1.2% of net sales) for the six months ended July 2, 2011. Despite lower net sales, net income improved significantly due to product price increases, stable commodity pricing, favorable product mix, and labor improvements.
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Supreme Industries, Inc. has a market cap of $62.7 million; its shares were traded at around $4.02 with a P/E ratio of 9 and P/S ratio of 0.2.
Highlight of Business Operations:
Net sales for the three months ended June 30, 2012 decreased $10.1 million, or 10.7%, to $84.6 million as compared with $94.7 million for the three months ended July 2, 2011. Net sales for the six months ended June 30, 2012 decreased $5.4 million, or 3.3%, to $156.7 million as compared with $162.1 million for the six months ended July 2, 2011. The following table presents the components of net sales and the changes from period to period:Gross profit increased by $5.4 million, or 68%, to $13.5 million for the three months ended June 30, 2012, as compared with $8.1 million for the three months ended July 2, 2011. Gross profit increased by $9.9 million, or 68%, to $24.3 million for the six months ended June 30, 2012, as compared with $14.5 million for the six months ended July 2, 2011. The following table presents the components of cost of sales as a percentage of net sales and the changes from period to period:
Selling, general and administrative (G&A) expenses increased by $1.3 million, or 19.3%, to $8.2 million for the three months ended June 30, 2012, as compared with $6.9 million for the three months ended July 2, 2011. Selling and G&A expenses increased by $2.9 million, or 20.7%, to $16.8 million for the six months ended June 30, 2012, as compared with $13.9 million for the six months ended July 2, 2011. The following table presents selling and G&A expenses as a percentage of net sales and the changes from period to period:
At December 31, 2011, the Company had a tax valuation allowance for net deferred tax assets of $4.6 million, the utilization of which was uncertain as of that date. In the second quarter of 2012, the Company determined it was likely the net deferred tax assets would be realized based upon sustained profitability and forecasted future operating results. As a result, the Company reversed $0.4 million of its $0.8 million valuation allowance, with the reversal recorded as a non-cash income tax benefit for the three and six months ended June 30, 2012. The Company expects that the remaining valuation allowance will be utilized during the second half of 2012 consistent with the Companys expected tax position. As the Company has generated taxable income and the release of a portion of the valuation allowance, the Company recorded a tax provision of $0.1 million (effective tax rate of 1.5%) for the three and six months ended June 30, 2012. Net income for the 2011 period excluded a tax provision due to the tax valuation allowance. The tax rate for 2013 and beyond could be significantly higher than 2012.
Net income from continuing operations increased by $6.2 million to $5.4 million (6.4% of net sales) for the three months ended June 30, 2012, from a net loss of $0.8 million (0.8% of net sales) for the three months ended July 2, 2011. Net income from continuing operations increased by $9.8 million to $7.9 million (5.0% of net sales) for the six months ended June 30, 2012, from a net loss of $1.9 million (1.2% of net sales) for the six months ended July 2, 2011. Despite lower net sales, net income improved significantly due to product price increases, stable commodity pricing, favorable product mix, and labor improvements.
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