Spartan Motors, Inc. (NASDAQ: SPAR) reported that net income improved $25.6 million, or 150.7%, to $8.6 million, in 2016.
In the fourth quarter, net income improved $10.4 million, or 110%, to $900,000, from a net loss of $9.5 million.
"Spartan closed 2016, on a high note with a profitable fourth-quarter performance, our fourth profitable quarter in a row," said Daryl Adams, President and Chief Executive Officer. "While 2016 goes in the books as the strongest financial performance Spartan has had since 2009, we are most proud of the progress we have made to date, on behalf of our shareholders.
“Our performance in 2016 reflects great progress toward key operational milestones as the positive momentum we sparked and fanned in 2015 started to accelerate and deliver on our turnaround initiatives, some well ahead of schedule. Take a look at 2016, and you are looking at a company whose head is squarely in the game, and it is one we intend to win."
Other highlights for the year:
- Sales increased $40.4 million, or 7.3%, to $590.8 million from $550.4 million
- Gross profit margin improved 370 basis points to 12.3% of sales from 8.6% of sales
- Operating income rose $21.1 million, or 169.1%, to $8.6 million from an operating loss of $12.5 million
- Adjusted operating income increased 222.1 % to $14.5 million, or 2.5% of sales, from $4.5 million, or 0.8% of sales
- Net income improved $25.6 million, or 150.7%, to $8.6 million, or $0.25 per share, from a net loss of $17.0 million, or $0.50 per share
- Adjusted net income improved 68.3% to $11.1 million, or $0.32 per share, from $6.6 million, or $0.20 per share
- Cash, net of debt increased 15.9% to $32.0 million at December 31, 2016 compared to $27.6 million at December 31, 2015
For the full year 2016 compared to the full year 2015:
Fleet Vehicles and Services (FVS)
FVS segment sales increased 22.3% to $278.4 million from $227.7 million. Revenue growth was primarily due to a favorable revenue mix and higher volume at vehicle up-fit centers.
Operating income increased $14.2 million, or 97.9%, to $28.7 million, or 10.3% of sales, from $14.5 million, or 6.4% of sales, a year ago. Higher volume and favorable mix resulted in an increase in operating income compared to last year.
The Segment backlog at December 31, 2016, totaled $89.5 million, compared to $96.1 million at December 31, 2015. In January, 2017, FVS received approximately $37.0 million in new orders, up approximately 20% over new orders received in January 2016.
Specialty Chassis & Vehicles (SCV)
SCV segment sales remained comparable at $129.4 million. Sales of motorhome chassis decreased to $98.0 million from $103.3 million, primarily due to lower shipments year-over-year. Other Specialty Vehicle revenue increased 52.2% to $21.1 million from $13.8 million, primarily due to increased contract manufacturing.
Operating income increased 39.5% to $6.8 million, or 5.3% of sales, from $4.9 million, or 3.8% of sales, a year ago. Favorable mix and increased contract manufacturing resulted in an increase in operating income compared to last year.
The Segment backlog at December 31, 2016, totaled $20.0 million, compared to $18.4 million at December 31, 2015.
Emergency Response (ER)
ER segment sales decreased 5.3% to $183.0 million from $193.2 million. Lower revenue resulted from fewer shipments of complete fire apparatus and custom cab and chassis compared to a year ago.
Operating loss improved $10.1 million, or 42.4%, to $13.7 million from $23.7 million a year ago. The improvement was primarily the result of improved operating efficiencies and a reduction in charges recorded in 2016, compared to 2015, relating to asset impairment ($1.8 million), restructuring ($1.8 million), product repair campaign and warranty reserves ($1.6 million), and a non-recurring NHTSA fine ($0.7 million).
Adjusted operating loss improved $0.9 million, or 9.8%, to $8.7 million from $9.6 million last year.
The Segment backlog at December 31, 2016, totaled $139.9 million, compared to $156.3 million at December 31, 2015.