Spartan Motors, Inc. Q3 2008 Earnings Call Transcript

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2008-11-03 15:24:13.0

Tags: Team, Call Transcript, Earnings, Spartan Motors Inc., Team Management, Strategy, Management, Seeking Alpha, Team, Call Transcript, Earnings, Spartan Motors Inc., Team Management, Strategy, Management, Seeking Alpha

Question-and-Answer Session

Operator

You certainly can. (Operator Instructions) Your first question comes from Frank Magdlen - The Robins Group.

Frank Magdlen - The Robins Group

Going forward, John, what can we look for from the EV team in the road to profitability?

John Sztykiel

Well, in regard to the road to profitability I expect to see quarterly improvement each successive quarter, but more importantly, Frank, look at the EV team not as a separate group but look at our business model from an Emergency Rescue perspective, which includes Spartan Chassis. We internally do not look at the emergency vehicle team as a separately group. We look at the Emergency Rescue team - or I should say the Emergency Rescue business as a business model which is a key part of our strategic foundation today and a key part of our strategic foundation tomorrow.

Fire truck chassis are extremely important. Bodies are extremely important. Have Road Rescue and Crimson Fire Aerials moved the ball in the right direction? Crimson Fire Heads, Road Rescue Heads, Crimson Fire Aerials have not. As we look to the future, I expect to see all business groups improve.

I'm pleased with the progress they've made over the last 12 months. Are they where we want them to be? No. However, I think it's important to note that when we look at the Emergency Rescue business, you must bring the chassis into play as well because Emergency Rescue is a key part of our foundation and we look at everything together as we develop our strategic plans.

Frank Magdlen - The Robins Group

But let's say go back to Road Rescue. How many quarters are we away from profitability there do you think?

John Sztykiel

It's impossible for me to speculate; however, from a trend perspective they're moving the ball in the right direction. As a group, their percent improvement over the last 12 months was 60%. And I don't think it's fair for me to comment specifics relative to Crimson Fire, Crimson Fire Aerials or Road Rescue, but as a group they've improved by 60% over the last 12 months. If they improve by another 60% over the next 12 months, will it be a very positive step in the right direction? Absolutely.

Frank Magdlen - The Robins Group

Have the production rates changed significantly in the last several quarters?

John Sztykiel

Well, I'm not sure if the production rates have changed that much, but the operational execution has changed significantly in the right direction.

 

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