Spartan Motors Inc (SPAR) SEC Filing 10-Q Quarterly report for the period ending Sunday, September 30, 2018

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Spartan Motors Inc
Ticker: SPAR CIK: 743238

Exhibit 99.1

Spartan Motors Reports Third Quarter 2018 Results

Sales Up 20% with Continued Strong Backlog

CHARLOTTE, Mich., October 31, 2018 - Spartan Motors, Inc. (NASDAQ: SPAR) (“Spartan” or the “Company”), a global leader in specialty chassis and vehicle design, manufacturing and assembly, today reported operating results for the third quarter ended September 30, 2018.

Third Quarter 2018 Overview

For the third quarter of 2018 compared to the third quarter of 2017 the results reflect strong revenue growth and continued profitability from all three business segments. However, the results were negatively impacted by industry-wide headwinds, including tariff-driven increases in commodity and component costs, chassis shortages, supplier component delays, freight costs and disruptions, and labor shortages, which resulted in production and labor inefficiencies and shipment delays.

●	Sales increased $37.0 million, or 19.6%, to $226.2 million, from $189.2 million.

●	Gross profit margin decreased 350 basis points to 11.6% of sales, from 15.1% of sales.

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Net income decreased $8.3 million, or 61.5%, to $5.2 million, or $0.15 per share, from $13.5 million, or $0.38 per share. The prior year net income includes the benefit from a $6.3 million, or $0.18 per share, tax valuation allowance adjustment due to the Company’s improved financial condition.

●	Adjusted EBITDA decreased 17.8% to $10.6 million, or 4.7% of sales, from $12.9 million, or 6.8% of sales.

●	Adjusted net income decreased $1.4 million, or 18.9%, to $6.0 million, or $0.17 per share, from $7.4 million, or $0.21 per share, which excludes the $6.3 million, or $0.18 per share, tax valuation allowance adjustment.

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Consolidated backlog, excluding the multi-year USPS truck body order at September 30, 2018 totaled $325.9 million, essentially flat, compared to $323.4 million at September 30, 2017. Including the USPS order, consolidated backlog, totaled $484.9 million compared to $537.7 million a year ago.

Notes: As of January 1, 2018, the Company has adopted the new Revenue Recognition Standard ("ASC 606") using the modified retrospective transition method. The adoption of ASC 606 decreased third quarter reported consolidated sales by $4.9 million, decreased net income by $0.2 million, and reduced reported consolidated backlog by $32.2 million. For more details regarding ASC 606 and its impact on the Company's financial results, see the Company's quarterly report on Form 10-Q for the quarter ended September 30, 2018.

“Our third quarter sales were up significantly year-over-year and all three of our segments remained profitable. Despite that progress, unexpected industry-wide headwinds negatively impacted our profitability for the period,” said Daryl Adams, President and Chief Executive Officer. “As it stands, our results were hindered by multiple external factors, which resulted in production and labor inefficiencies and shipment delays. If not for the significant industry-wide headwinds and the operating issues we sustained as a result, we would have exceeded our internal operating plan for the quarter.”

Spartan Motors, Inc

The following information was filed by Spartan Motors Inc (SPAR) on Wednesday, October 31, 2018 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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