CHARLOTTE, Mich., Jan. 14 /PRNewswire-FirstCall/ — Spartan Motors, Inc.
(Nasdaq: SPAR) reported it has repurchased 250,000 shares of its common stock
in the open market in December 2007, reflecting the Company’s belief that its
stock is undervalued. Spartan also confirmed it expects to report a record
2007 fourth quarter and year-end driven by growth in all three of its primary
product lines – luxury motorhome chassis, emergency rescue and specialty
vehicles.
The Charlotte, Mich.-based manufacturer of custom chassis and specialty
vehicles said it completed the recent share buyback at an average price of
$7.75 per share. In July 2007, Spartan received authorization from its board
of directors to repurchase up to 1 million shares over a 12-month period.
Spartan said it will continue to evaluate its best use of cash, but indicated
continued stock buybacks will remain part of the mix.
“Despite the current uncertain economic conditions in 2008, we have
multiple product lines supporting our diverse business model,” said John
Sztykiel, president and CEO of Spartan Motors. “We are positioned well to
grow our business. Luxury motorhome chassis are less sensitive to increases
in fuel prices than the RV market as a whole. Emergency-rescue vehicles must
still respond to calls for help every 20 seconds, regardless of the economy.
Lastly, with the current backlog and the expectation of additional subcontract
orders in the near future from our MRAP military customers, our specialty
vehicle chassis will see very substantial growth in 2008.
“In addition, the accelerating service/parts business and our expected
improvements in efficiency and return on invested capital place Spartan in a
strong position for 2008 and beyond. Thus, we believe our shares to be
currently undervalued. Based on these foundational platforms, we look forward
to a strong finish in 2007, and we remain comfortable with the range of our
analysts’ earnings estimates for fiscal 2008 of $0.80 to $1.06 per share.”
About Spartan Motors
Spartan Motors, Inc. ( theshyftgroup.com ) designs, engineers and
manufactures custom chassis and vehicles for the recreational vehicle, fire
truck, ambulance, emergency-rescue and specialty vehicle markets. The
Company’s brand names – Spartan(TM), Crimson Fire(TM), Crimson Fire
Aerials(TM), and Road Rescue(TM) – are known for quality, value, service and
being the first to market with innovative products. The Company employs
approximately 1,300 at facilities in Michigan, Pennsylvania, South Carolina,
and South Dakota. Spartan reported sales of $445 million in 2006 and is
focused on becoming the premier manufacturer of specialty vehicles and chassis
in North America.
This release contains forward-looking statements, including, without
limitation, statements concerning our business, future plans and objectives
and the performance of our products. Words and phrases such as “expect” or
“believe,” statements that a particular result or condition is “on track,” or
“improving,” and similar expressions regarding the plans and objectives of the
Company are intended to identify forward-looking statements. These forward-
looking statements involve certain risks and uncertainties that ultimately may
not prove to be accurate. Actual results and future events could differ
materially from those anticipated in such statements. Technical complications
may arise that could prevent the prompt implementation of the plans outlined
above. The Company cautions that these forward-looking statements are further
qualified by other factors including, but not limited to, those set forth in
the Company’s Annual Report on Form 10-K filing and other filings with the
United States Securities and Exchange Commission (available at
http://www.sec.gov ). Government contracts and subcontracts typically involve
long payment and purchase cycles, competitive bidding, qualification
requirements, delays or changes in funding, extensive specification
development and changes, price negotiations and milestone requirements. An
announced award of a governmental contract is not equivalent to a finalized
executed contract and does not assure that orders will be issued and filled.
Government agencies also often retain some portion of fees payable upon
completion of a project and collection of contract fees may be delayed for
long periods, which can negatively impact both prime contractors and
subcontractors. The Company undertakes no obligation to publicly update or
revise any statements in this release, whether as a result of new information,
future events or otherwise, except as required by law.
SOURCE Spartan Motors, Inc.
01/14/2008
CONTACT: Dave Reid of Spartan Motors, Inc., +1-517-543-6400or Ryan
McGrath, [email protected]or Jeff Lambert, both of Lambert,
Edwards & Associates, Inc., +1-616-233-0500
Web site: https://theshyftgroup.com
(SPAR)