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Apr 20, 2012 10:47 AM

Supreme  Industries, Inc. (NYSE Amex: STS) reported that gross profit improved 67% to  $10.9 million from last year's $6.5 million for the first quarter ending March  31.

  Consolidated  net sales increased 6% to $72.5 million for the quarter, up from $68.4 million  in last year's comparable period. Gross profit, as a percentage of sales,  expanded to 15%, compared with 13.1% in the fourth quarter of 2011, and 9.5% in  the first quarter of 2011. The gross margin expansion is primarily due to the  effects of the favorable product mix and labor efficiencies implemented during  the second half of 2011.

  The company  reported net income from continuing operations of $2.6 million, or $0.17 per  diluted share, for the 2012 quarter, compared with a loss from continuing  operations of $1.0 million, or $0.07 per share, in the prior-year first  quarter. Including the impact from discontinued operations, net income improved  to $0.17 per diluted share, reversing the year-ago net loss of $0.10 per share.  Net income for both periods excluded a tax provision due to the company's  valuation allowance.

  "We  are pleased to report our third consecutive quarter of profitability and are  encouraged by the financial progress our organization has achieved,” said  Supreme's Interim Chief Executive Officer and Chief Financial Officer Matthew  Long. “The momentum that began to take hold during the third quarter of 2011  continued through the first quarter of 2012. We believe these ongoing efforts  should yield benefits as we progress through the year."

  Working  capital was $41.1 million at March 31, 2012, compared with $35.8 million at  Dec. 31, 2011. In addition, the company made strategic investments totaling  $2.6 million in facilities and equipment during the first quarter of 2012.  Total debt was $20.3 million at March 31, 2012, compared with $15.9 million at  Dec. 31, 2011, and $30.1 million at April 2, 2011. Stockholders' equity was  $57.9 million, or $3.82 per share, at March 31, 2012, compared with $55.3  million, or $3.75 per share, at Dec. 31, 2011. Net cash used in operating  activities during the first quarter of 2012 totaled $2.6 million, compared with  net cash used in operating activities of $4.3 million in 2011.

  "Our  nearly 1,900 dedicated employees remain focused on achieving sustained  profitability and consistency of performance in all facets of our  organization," Long concluded.