Spartan Motors (SPAR) Tops Q4 EPS by 2c, Beats on Revenues; Offers FY18 EPS/Revenues Mid-Point Guidance Above Consensus

Note: EPS may not be comparable

Spartan Motors (NASDAQ: SPAR) reported Q4 EPS of $0.11, $0.02 better than the analyst estimate of $0.09. Revenue for the quarter came in at $181.1 million versus the consensus estimate of $174.09 million.

Fourth Quarter 2017 Highlights

For the fourth quarter of 2017 compared to the fourth quarter of 2016:

• Sales increased $35.2 million, or 24.1%, to $181.1 million from $145.9 million
• Gross profit margin improved 130 basis points to 13.6% of sales from 12.3% of sales
• Net income improved $1.5 million, or 158.9%, to $2.4 million, or $0.07 per share, from $0.9 million, or $0.03 per share
• Adjusted EBITDA increased 118.3% to $9.3 million, or 5.1% of sales, compared to $4.3 million, or 2.9% of sales
• Adjusted net income improved 156.4% to $3.9 million, or $0.11 per share from $1.5 million, or $0.04 per share
• Emergency Response segment was profitable – achieving $2.7 million of adjusted EBITDA

2018 Outlook

"We are proud of our financial performance in 2017, which will provide a sound foundation for future long-term growth, increased shareholder value and an acceleration of earnings growth in 2018." said Rick Sohm, Chief Financial Officer of Spartan Motors. "Our strong financial position will enable Spartan to invest in our future growth in 2018 and beyond by expanding R&D efforts for new product innovations and enhancing our operational competencies, exploring alternative fuel technologies and expanding our manufacturing capabilities at our Ephrata, Pennsylvania facility to meet the growing last mile delivery demand. With each of our business segments now profitable, we expect our incremental investments and the new USPS order to drive additional revenues, positioning Spartan to achieve its financial objectives in 2020."

Outlook for full year 2018 is expected to be as follows:

• Revenue to be in the range of $790.0 - $815.0 million
• Net income of $18.8 - $21.0 million
• Adjusted EBITDA of $39.0 - $42.0 million
• Effective tax rate of approximately 28%
• Earnings per share of $0.54 - $0.60, assuming approximately 35.3 million shares outstanding
• Adjusted earnings per share of $0.56 - $0.62

GUIDANCE:

Spartan Motors sees FY2018 EPS of $0.56-$0.62, versus the consensus of $0.56. Spartan Motors sees FY2018 revenue of $790-815 million, versus the consensus of $801.46 million.

For earnings history and earnings-related data on Spartan Motors (SPAR) click here.

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