Spartan Motors has reported operating results for the fourth quarter and full-year periods ending Dec. 31, 2019, showing that sales increased $186 million, or 32.6 percent, to $756.5 million from $570.5 million in 2018. Including the discontinued operations, sales in 2019 were $1 billion compared to $816.2 million in 2018.
Fourth quarter sales for 2019 increased $6.1 million, or 3.5 percent, to $180 million from $173.9 million in 2018. Including the discontinued operations, sales were $247.6 million compared to $233 million.
“I’m incredibly pleased with our strong finish to the year, and I want to thank the entire team for their contributions,” said Daryl Adams, president and CEO. “Our results speak to the full organization’s focus on long-term profitable growth, by way of geographic expansion, sustainable operational improvements, and customer-centric sales and service, and have well positioned the company for years to come. … Today Spartan is more agile and is better positioned to continue to respond to the macro and micro trends that have accelerated changes in our markets. In addition to improving the company’s liquidity, this transformation will increase profitability, as well as provide us with the speed and flexibility to accelerate growth in our core markets.”
The specialty chassis and vehicles segment sales decreased $7.3 million to $185.9 million, or 3.8 percent, from $193.2 million a year ago. This was primarily due to a decrease in luxury motor coach chassis sales, partially offset by sales from the Royal Truck Body (Royal) acquisition.
The segment backlog at Dec. 31, 2019, totaled $30.7 million, a 19 percent decrease, compared to $37.7 million at Dec. 31, 2018.
“Our 2019 financial performance reflects the successful integration of several key acquisitions and the continued momentum in our core markets,” said Adams. “As we look to 2020, we are confident that the strategic business transformation will bear positive results and position the company to provide the industry leading innovative solutions our customers demand. With the proceeds from the recent sale of our ER business, we are well positioned to deploy capital at higher returns that will drive our performance.”
Company outlook for full-year 2020 from continuing operations is expected to be as follows:
- Revenue to be in the range of $730 to $780 million, midpoint $755.0 million
- Net income of $37 to $43 million, midpoint $40 million