CHARLOTTE — Spartan Motors Inc.’s January acquisition of Smeal Fire Apparatus resulted in a nearly 25-percent increase in first quarter sales for the chassis manufacturer.
Spartan Motors (Nasdaq: SPAR) generated sales of $167.1 million in its first quarter, which ended March 31, compared to the $133.7 million the company reported in the same period a year ago. Of that growth, approximately $35.2 million was attributed to the Smeal Fire Apparatus acquisition, which executives hope will drive financial performance in coming years.
“Our team has been working tirelessly and our Smeal integration efforts are running ahead of schedule and are already generating positive outcomes,” Daryl Adams, president and CEO of Spartan Motors, said in a statement. “Not only have we identified more synergistic opportunities than originally anticipated, we are also experiencing significantly increased interest and excitement in our expanded product portfolio from our dealers and customers.”
Executives expect Smeal will contribute approximately $105 million in sales in 2017.
Spartan Motors reported a $1.1 million loss in net income — or 3 cents per share — compared to a net income gain of $500,000 — or 2 cents per share — during the same period the previous year. The company attributes the loss to approximately $2.6 million in acquisition and restructuring costs as a result of the Smeal acquisition.
Spartan Motors executives expect to close 2017 ahead of previous years, according to updated guidance released in its first quarter.
The company plans to reach annual revenues of between $650 million and $700 million, an increase from its previous guidance for annual revenues between $615 million and $685 million. Spartan Motors generated $590.8 million in sales for 2016.
“Looking ahead to the remainder of the year, we expect to see continued year-over-year operational improvements and additional synergies realized from the Smeal integration, which gives us comfort in raising the 2017 guidance,” said Rick Sohm, CFO of Spartan Motors, in a statement.