Company lost money last year and expects to lose more this quarter while Utilimaster moves to Bristol, but hopes to become profitable later this year.
BRISTOL — Spartan Motors, the Michigan-based parent company of Utilimaster Corp., reported increased sales for the fourth quarter and for the full year of 2012, but said Tuesday, Feb. 12, that it lost money in both the quarter and the year.
Much of that is due to the move of Utilimaster from its Wakarusa campus to its new Bristol building, a move happening this quarter and expected to finished by mid-year.
“Spartan ended 2012 on a sound financial footing and with important initiatives such as Utilimaster’s relocation to a more efficient facility on track and on schedule,” said Joe Nowicki, chief financial officer of Charlotte, Mich.-based Spartan.
“In the first quarter of 2013, we expect Utilimaster’s move to Bristol to adversely impact production levels at our DSV (delivery and service vehicle) unit,” he said in the written earnings announcement.
“In addition, the industry is experiencing a shortage of certain stripped chassis used in walk-in van production. We are working with other chassis manufacturers and our customers to mitigate the impact of the shortages, which we expect to be an issue primarily in the first quarter,” Nowicki said.
“Because of lower production rates and the costs of the Bristol relocation project, we expect to post an operating loss for the first quarter of 2013. For the remainder of 2013 we expect improved financial results from the completion of the Bristol move, ramp-up of DSV production and our gross-margin-improvement plan,” he added.
FOURTH QUARTER 2012 SUMMARY
Spartan showed net sales of $124.5 million, up from $111.2 million in the fourth quarter of 2011. Emergency response sales were $44.9 million, up 1.4 percent from the same quarter in 2011, while delivery and service vehicles, at $52.6 million, were up 25.5 percent from the previous year’s fourth quarter. The specialty vehicle unit saw sales rise 8 percent to $27 million.
Gross margin was 10.6 percent of sales, down from 13.1 percent in the same quarter of 2011.
The company posted a net loss of $2.5 million or 7 cents per diluted share.
Spartan had $21.7 million in cash as of Dec. 31, 2012, compared to $31.7 million one year earlier.
HIGHLIGHTS OF 2012
For the year, Spartan listed sales of $470.6 million, up 10.5 percent from $426 million in 2011. Emergency response revenue was $162.3 million, up 4.8 percent over 2011’s $154.8 million. Delivery and service vehicle sales were $208.2 million, up 25.8 percent from 2011’s $165.5 million. Specialty vehicle revenue dropped to $100 million, down 5.4 percent compared to 2011’s $105.7 million. Defense sales were down, but recreational vehicle chassis sales were up.
The company posted a net loss for the year of $2.5 million or 7 cents per share. That compares to net income of $773,000 in 2011 with income of 2 cents per share.