Supreme Industries, Inc. (NYSEMKT:STS), a leading manufacturer of specialized commercial vehicles including truck bodies and specialty vehicles, today announced improved financial results for its third quarter and nine-months ended September 24, 2016.

2016 Third-Quarter Results

Consolidated net sales grew 15.4%, in the third quarter, to $74.8 million, compared with $64.8 million in last year’s third quarter. Higher sales volume in the quarter improved capacity utilization, enhancing margins in addition to a favorable mix. Gross margin expanded to 23.0% of sales in the third quarter of 2016, compared with 19.5% of sales in the same quarter of 2015. Operating income improved 95.5% in the quarter, reaching $7.9 million, versus $4.1 million in last year’s third quarter.

Net income was up 78.7%, increasing to $5.0 million in the third quarter of 2016, versus net income of $2.8 million in the same quarter of 2015. Net earnings per diluted share increased to $0.29 per share, up from $0.16 per share in last year’s comparable quarter.

“Higher sales of dry freight vans, insulated bodies and Spartan service bodies helped achieve meaningful year-over-year sales growth in the third quarter of this year,” said Mark Weber, President and Chief Executive Officer.

2016 Nine-Months Results

Consolidated net sales increased 12.5% in the year-to-date period, reaching $237.1 million, and up from $210.7 million during the first nine months of 2015. The sales growth for the nine-month period was the result of core market expansion in the first half of the year and continued growth in target account medium duty sales.

As a percentage of net sales, gross margin expanded from 18.8% last year to 23.1% in the 2016 nine-month period. Operating income increased 93.0% to $26.2 million in 2016, compared with $13.6 million last year. Net income was $17.1 million, or $0.99 per diluted share in the nine-months, which was up from $9.1 million, or $0.53 per diluted share, in last year’s comparable period.

At the end of the third quarter of 2016, order backlog was $58.1 million, which was down from the $74.4 million in order backlog at the end of last year’s same quarter. The timing of several large orders increased the backlog at the end of the third quarter 2015.

“During the first nine months of 2016, we increased sales with support from customers who value our customer-centric approach to optimized solutions, product durability and best-in-class lead times,” Weber added, “However, industry-wide growth in commercial truck sales decelerated during the summer months, suggesting moderate order activity through year end.”

Working capital increased to $67.6 million at September 24, 2016, compared with $51.6 million at December 26, 2015. Cash flow from operating activities improved to $15.7 million from $1.2 million in 2015. The Company ended the quarter with $23.0 million in cash and cash equivalents, and with $7.8 million in total debt. Stockholders’ equity increased to $104.5 million at September 24, 2016, compared with $88.6 million at December 26, 2015, increasing book value per share to $6.20 per share at quarter end, compared with $5.32 per share at the end of 2015.

Conference Call Information

A conference call will be held at 9:00 a.m. ET on Friday, October 21, 2016, to review the third quarter and nine-month results. To participate in the live call, please dial 888-349-0089 (International: 412-902-4296) 10 minutes before the call begins, or at 8:50 a.m. ET. The conference ID is 10094147. The call also will be streamed live and can be accessed at www.supremecorp.com. Those unable to participate in the live conference call may access a replay, which will be available on Supreme’s website for approximately 30 days.

About Supreme Industries

Supreme Industries, Inc. (NYSE MKT: STS), is a nationwide manufacturer of truck bodies and specialty vehicles produced to the specifications of its customers. The Company’s transportation equipment products are used by a wide variety of industrial, commercial and law enforcement customers.