Spartan Motors Inc. (NASDAQ:SPAR) Q4 2019 Earnings Conference Call - Final Transcript

Mar 12, 2020 • 10:00 am ET

Previous

Spartan Motors Inc. (NASDAQ:SPAR) Q4 2019 Earnings Conference Call - Final Transcript

Share
Close

Loading Event

Loading Transcript

Presentation
Operator
Operator

Good day, and welcome to the Spartan Motor's Fourth Quarter 2019 Earnings Results Conference Call. [Operator instructions].

I would like to turn the conference over to Juris Pagrabs, Group Treasurer and Director of Investor Relations. Please, go ahead.

Executive
Juris Pagrabs

Thank you, Alisa. Good morning, everyone, and welcome to the Spartan Motors 2019 fourth quarter and full year earnings call. Joining me on the call today are Daryl Adams, our President and Chief Executive Officer; and Rick Sohm, our Chief Financial Officer. For today's call, we've included a presentation deck which will be filed with the SEC and is also available on our website at spartanmotors.com. You may download the deck from the Investor Relations section of our website to follow along with our presentation during the call.

Before we start today's call, please turn to Slide 2 of the presentation for our Safe Harbor statement. You should be aware that certain statements made during today's conference call, which may include management's current outlook, viewpoint, predictions and projections regarding Spartan Motors and its operations may be considered forward-looking statements under the Private Securities Litigation Reform Act of 1995. I caution you that as with any prediction or projection, there are a number of factors that could cause Spartan's actual results to differ materially from projections.

All known risks that management believes could materially affect the results are identified in our Forms 10-K and 10-Q filed with the SEC. However, there may be other risks that we cannot anticipate. On the call today, we will provide an overview of the full year, along with a brief business update, followed by a more detailed review of the fourth quarter results and an update of our outlook for 2020 before proceeding to the question and answer portion of the call.

I would like to remind everyone that with the divestiture of the ER segment on February 1, 2020, the revenues and expenses associated with the ER group as well as the assets and liabilities have been reclassified as discontinued operations for all periods presented. With this reclassification of the ER segment to discontinued operation, the results discussed today will refer to continuing operations unless otherwise noted.

At this time, I'm pleased to turn the call over to Daryl for his opening remarks which begin on Slide 3.

Executive
Daryl Adams

Thank you, Juris. Good morning, everyone and thank you for joining us on our fourth quarter and full year conference call.

I'll just start by acknowledging the team's incredible effort and hard work transforming our business. For the past year, Spartan has integrated three acquisitions and completed divestiture of our ER segment. The strategic changes allow us to significantly improve our focus within our core markets by expanding our national footprint and product portfolio. This has positioned us in the growth markets that will allow us to accelerate top-line growth and profitability.

For the full year 2019, our sales increased 33% to $757 million, while our gross margins improved 270 basis points to 15.5%, which drove the 103% improvement