Spartan Motors (SPAR) Reports In-Line Q2 EPS, Revenues Miss; Maintains FY18 Guidance

Spartan Motors (NASDAQ: SPAR) reported Q2 EPS of $0.12, in-line with the analyst estimate of $0.12. Revenue for the quarter came in at $184 million versus the consensus estimate of $190.85 million.

For the second quarter of 2018 compared to the second quarter of 2017:

• Sales increased $14.3 million, or 8.4%, to $184.0 million, from $169.7 million.
• Gross profit margin improved 280 basis points to 14.3% of sales, from 11.5% of sales. Commodity cost increases in 2018 resulted in a $1.0 million reduction to gross profit, primarily in Fleet Vehicles and Services, offset by operational and organizational improvements.
• Net income improved $2.6 million, or 232.7%, to $3.7 million, or $0.11 per share, from $1.1 million, or $0.03 per share.
• Adjusted EBITDA increased 79.6% to $8.9 million, or 4.8% of sales, from $4.9 million, or 2.9% of sales.
• Adjusted net income improved $1.9 million, or 82.6%, to $4.3 million, or $0.12 per share, from $2.4 million, or $0.07 per share.
• Backlog increased $151.3 million to $524.1 million at June 30, 2018, from $372.8 million at June 30, 2017.

"Spartan's second quarter results underscore our team\'s exceptional performance in the face of challenging conditions that are impacting the entire industry," said Daryl Adams, President and Chief Executive Officer. "Our team's continued focus on Spartan's core markets and their unwavering commitment to maximizing operational and organizational efficiencies, despite escalating commodity costs, have been essential in achieving our profitable growth this quarter."

"We drove growth in the second quarter through our investment in continued operational and organizational efficiencies at our existing facilities, and a sharp focus on our key product offerings, further affirming that our strategy is yielding strong returns," concluded Adams. "These results inspire additional confidence as we work hard to mitigate the effect of commodity cost increases expected in the back half of 2018. Fueled by these recent successes, and further building on the momentum of this year, our team will continue to drive meaningful, positive results for the Company and its shareholders."

GUIDANCE:

Spartan Motors sees FY2018 EPS of $0.60-$0.66, versus the consensus of $0.64. Spartan Motors sees FY2018 revenue of $790-815 million, versus the consensus of $808.67 million.

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

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