Spartan Motors has reported operating results for the third quarter ending Sept. 30, showing sales increased $62.8 million, or 27.8 percent, to a record $289 million from $226.2 million. Net income increased $5.1 million, or 97.5 percent, to $10.4 million
“Spartan’s record third-quarter sales led to strong overall results for the quarter, underscoring our growth strategy through both organic and acquisitions,” said Daryl Adams, president and CEO. “The continued demand for delivery vehicles in all of our vehicle classes is driving our growth. … Overall, we expanded margins through lower material costs and continue to pursue innovation and optimization within our manufacturing processes. Additionally, we have added eight manufacturing facilities in the past 10 months as part of our strategy to offer coast-to-coast manufacturing and distribution capabilities.”
The specialty chassis and vehicles business unit remained focused on driving growth and advancing operating performance. During the quarter, Spartan bought Royal Truck Body, a California-based designer, manufacturer, and installer of service truck bodies and accessories, with six facilities located in California, Arizona and Texas.
Royal operating results for the 21 days ended Sept. 30 are included in the consolidated financial statements within the specialty chassis and vehicles business unit.
Specialty chassis and vehicles segment sales decreased $6.6 million, or 12.7 percent, to $45.1 million from $51.7 million a year ago. The revenue decrease was mainly due to lower luxury motorcoach chassis and the completion of the Reach vehicle order.
“Spartan’s financial performance in the first nine months of the year, combined with our successful acquisitions, improving backlogs, enhanced productivity, and low-cost country sourcing initiatives, gives us confidence that we will exceed our previous full-year expectations,” said Rick Sohm, CFO of Spartan Motors. “We expect to see continued year-over-year profitability growth into the fourth quarter of 2019, driven primarily by delivery vehicle orders in all vehicle classes and continued margin expansion.
“Our ability to execute and deliver according to our strategy gives us the confidence to raise our 2019 midpoint adjusted EPS guidance by 23 percent,” continued Adams. “We are excited about our results so far this year and the opportunity to close the year out strong. We believe we are laying the foundation to drive long-term profitable growth for Spartan and its shareholders.”
