Spartan Motors Inc. (SPAR, Financial) filed Quarterly Report for the period ended 2011-09-30.
Spartan Motors Inc. has a market cap of $165.3 million; its shares were traded at around $4.95 with a P/E ratio of 29.1 and P/S ratio of 0.3. The dividend yield of Spartan Motors Inc. stocks is 2%. Spartan Motors Inc. had an annual average earning growth of 7.5% over the past 10 years.
Operating expenses increased by $0.8 million or 5.3% to $15.2 million for the quarter ended September 30, 2011, compared to $14.4 million for the same period in 2010. Research and development expenses decreased by $0.7 million, or 18.2% to $3.3 million for the third quarter of 2011 compared to $4.0 million in the third quarter of 2010. This decrease is the result of savings due to our restructuring efforts in the second quarter of 2011 along with reduced spending on development of the Reach, as that product moves into production. Selling, general and administrative expense increased by $1.5 million or 14.4% to $11.9 million for the quarter ended September 30, 2011 compared to $10.4 million in the same period of 2010. This increase was driven by an increase in commissions, sales related costs and additional provisions for certain earn-out payments associated with the increased revenues at our Utilimaster subsidiary. Also contributing to the year over year increase were operating expenses from our Classic Fire subsidiary, which were not present in 2010.
At September 30, 2011, we had $142.8 million in backlog compared to $172.6 million at September 30, 2010, a decrease of $29.8 million or 17.3%, which is attributable to our Specialty Vehicles segment which decreased by $44.7 million or 33.5%. The decrease in our Specialty Vehicles Segment backlog is attributable to the softness in the emergency vehicle market as a result of tightening government budgets. We expect this softness in the emergency vehicle market to continue throughout the remainder of 2011. Also contributing to the decrease in backlog is a reduction in defense related orders for vehicles and aftermarket parts and assemblies. The above decreases were partially offset by an increase in backlog for our Delivery and Service Vehicles segment, which increased by $14.9 million or 38.2% to $53.9 million at September 30, 2011 from $39.0 million at September 30, 2010. The increase in our Delivery and Service Vehicles backlog is a reflection of the recovery in this early cycle market. Although some seasonal drop-off in volumes in our Delivery and Service Vehicles segment is expected, we expect volumes in this segment to remain stronger for the remainder of 2011 than those we experienced in 2010. Certain items, including certain aftermarket parts and assemblies sales related to our Delivery and Service Vehicles segment and revenues related to assembly contracts undertaken by our Specialty Vehicles segment are not reflected in our current backlog. The amounts of these items are not currently material to our overall backlog, but we expect these items to increase over time which could cause them to become material in future periods. Intercompany orders are eliminated from the backlog dollars presented. We anticipate filling our current backlog orders by May 2012.
Sales in our Specialty Vehicles segment decreased by $33.9 million, or 36.4% to $59.1 million in the third quarter of 2011 compared to $93.0 million for the same period of 2010. Emergency response bodies was the only product line in our Specialty Vehicles segment that did not show a sales decline in the third quarter of 2011, as compared to the third quarter of 2010. The decrease in our sales of emergency response chassis of $9.8 million, or 29.5% is a result of the softening of the emergency response market due to tightening government budgets. Our motor home chassis sales declined by $7.4 million or 34.2% as a result of slower market demand for the higher priced motor home market segment that we serve. Sales of aftermarket parts and assemblies related to our Specialty Vehicles segment decreased by $13.4 million or 66.7%, mainly due to a drop off in defense related sales. Our emergency response bodies showed an increase of $2.2 million or 23.1%, mainly due to the inclusion of revenue from Classic Fire, which was not present in 2010. There were no changes in pricing of products sold by our Specialty Vehicles segment that had a significant impact on our financial statements when comparing these periods.
Sales decreased by $88.8 million or 31.7% in the first nine months of 2011 to $191.2 million from $280.0 million in the same period of 2010, with all of the markets served by our Specialty Vehicles segment showing decreases. The largest contributor to the decrease was emergency response chassis, which decreased by $33.9 million or 30.7%, driven by the ongoing government and municipality budget constraints. Also contributing to the lower comparison in this market is the stronger volume in the first half of 2010 as a result of an increase in orders in late 2009 related to the 2010 emissions change. Order intake for our emergency response chassis business has improved as compared with the first nine months of 2010, and as a result we expect a slight improvement in this market for the remainder of 2011. Our sales of motor home chassis also declined significantly, showing a decrease of $21.2 million or 30.5% for the nine months ended September 30, 2011 compared to the same period of 2010. The motor home market that we serve remained soft as demand for higher end diesel engine RV s continues to lag when compared to previous years. Our order intake related to motor home chassis has decreased by approximately 30% for the first nine months of 2011 compared to the same period in 2010, and we expect continued softness in this market for the remainder of 2011. Also contributing to the decrease in our Specialty Vehicles segment sales was a drop off in sales of aftermarket parts and assemblies related to Specialty Vehicles, which decreased by $23.4 million or 52.0% in the first nine months of 2011 as compared with the same period in 2010, due to a decrease in defense related sales. There were no changes in pricing of products sold by our Specialty Vehicles segment that had a significant impact on our financial statements when comparing these periods.
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Spartan Motors Inc. has a market cap of $165.3 million; its shares were traded at around $4.95 with a P/E ratio of 29.1 and P/S ratio of 0.3. The dividend yield of Spartan Motors Inc. stocks is 2%. Spartan Motors Inc. had an annual average earning growth of 7.5% over the past 10 years.
Highlight of Business Operations:
We reported sales of $120.3 million for the third quarter of 2011, which was flat with the previous year s third quarter and represents an increase of 21.1% from the revenue of $99.4 million that we recorded in the second quarter of 2011. We reported net income of $3.2 million, or $0.10 per diluted share for the three months ended September 30, 2011, compared to income from continuing operations of $3.5 million, or $0.11 per diluted share, and net income of $3.3 million or $0.10 per diluted share, for the same period in 2010. Our third quarter net income represents an increase of $5.4 million over the net loss of $2.2 million we reported for the second quarter of 2011.Operating expenses increased by $0.8 million or 5.3% to $15.2 million for the quarter ended September 30, 2011, compared to $14.4 million for the same period in 2010. Research and development expenses decreased by $0.7 million, or 18.2% to $3.3 million for the third quarter of 2011 compared to $4.0 million in the third quarter of 2010. This decrease is the result of savings due to our restructuring efforts in the second quarter of 2011 along with reduced spending on development of the Reach, as that product moves into production. Selling, general and administrative expense increased by $1.5 million or 14.4% to $11.9 million for the quarter ended September 30, 2011 compared to $10.4 million in the same period of 2010. This increase was driven by an increase in commissions, sales related costs and additional provisions for certain earn-out payments associated with the increased revenues at our Utilimaster subsidiary. Also contributing to the year over year increase were operating expenses from our Classic Fire subsidiary, which were not present in 2010.
At September 30, 2011, we had $142.8 million in backlog compared to $172.6 million at September 30, 2010, a decrease of $29.8 million or 17.3%, which is attributable to our Specialty Vehicles segment which decreased by $44.7 million or 33.5%. The decrease in our Specialty Vehicles Segment backlog is attributable to the softness in the emergency vehicle market as a result of tightening government budgets. We expect this softness in the emergency vehicle market to continue throughout the remainder of 2011. Also contributing to the decrease in backlog is a reduction in defense related orders for vehicles and aftermarket parts and assemblies. The above decreases were partially offset by an increase in backlog for our Delivery and Service Vehicles segment, which increased by $14.9 million or 38.2% to $53.9 million at September 30, 2011 from $39.0 million at September 30, 2010. The increase in our Delivery and Service Vehicles backlog is a reflection of the recovery in this early cycle market. Although some seasonal drop-off in volumes in our Delivery and Service Vehicles segment is expected, we expect volumes in this segment to remain stronger for the remainder of 2011 than those we experienced in 2010. Certain items, including certain aftermarket parts and assemblies sales related to our Delivery and Service Vehicles segment and revenues related to assembly contracts undertaken by our Specialty Vehicles segment are not reflected in our current backlog. The amounts of these items are not currently material to our overall backlog, but we expect these items to increase over time which could cause them to become material in future periods. Intercompany orders are eliminated from the backlog dollars presented. We anticipate filling our current backlog orders by May 2012.
Sales in our Specialty Vehicles segment decreased by $33.9 million, or 36.4% to $59.1 million in the third quarter of 2011 compared to $93.0 million for the same period of 2010. Emergency response bodies was the only product line in our Specialty Vehicles segment that did not show a sales decline in the third quarter of 2011, as compared to the third quarter of 2010. The decrease in our sales of emergency response chassis of $9.8 million, or 29.5% is a result of the softening of the emergency response market due to tightening government budgets. Our motor home chassis sales declined by $7.4 million or 34.2% as a result of slower market demand for the higher priced motor home market segment that we serve. Sales of aftermarket parts and assemblies related to our Specialty Vehicles segment decreased by $13.4 million or 66.7%, mainly due to a drop off in defense related sales. Our emergency response bodies showed an increase of $2.2 million or 23.1%, mainly due to the inclusion of revenue from Classic Fire, which was not present in 2010. There were no changes in pricing of products sold by our Specialty Vehicles segment that had a significant impact on our financial statements when comparing these periods.
Sales decreased by $88.8 million or 31.7% in the first nine months of 2011 to $191.2 million from $280.0 million in the same period of 2010, with all of the markets served by our Specialty Vehicles segment showing decreases. The largest contributor to the decrease was emergency response chassis, which decreased by $33.9 million or 30.7%, driven by the ongoing government and municipality budget constraints. Also contributing to the lower comparison in this market is the stronger volume in the first half of 2010 as a result of an increase in orders in late 2009 related to the 2010 emissions change. Order intake for our emergency response chassis business has improved as compared with the first nine months of 2010, and as a result we expect a slight improvement in this market for the remainder of 2011. Our sales of motor home chassis also declined significantly, showing a decrease of $21.2 million or 30.5% for the nine months ended September 30, 2011 compared to the same period of 2010. The motor home market that we serve remained soft as demand for higher end diesel engine RV s continues to lag when compared to previous years. Our order intake related to motor home chassis has decreased by approximately 30% for the first nine months of 2011 compared to the same period in 2010, and we expect continued softness in this market for the remainder of 2011. Also contributing to the decrease in our Specialty Vehicles segment sales was a drop off in sales of aftermarket parts and assemblies related to Specialty Vehicles, which decreased by $23.4 million or 52.0% in the first nine months of 2011 as compared with the same period in 2010, due to a decrease in defense related sales. There were no changes in pricing of products sold by our Specialty Vehicles segment that had a significant impact on our financial statements when comparing these periods.
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