Spartan Motors Q1 2009 Earnings Call Transcript

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2009-04-28 13:49:11.0

Tags: Call Transcript, Order, Earnings, Sales Strategy, Operational Accounting, Sales, Finance, Seeking Alpha, Spartan Motors Inc.

Question-and-Answer Session

Operator

Thank you, sir. (Operator Instructions). And our first question comes from Ned Borland with Next Generation Equity Research.

Ned Borland - Next Generation Equity Research

Hi. Good morning, guys.

John Sztykiel

Good morning, Ned.

Ned Borland - Next Generation Equity Research

Can you give us the spare parts contribution to the other product sales for the first quarter?

James Knapp

It was -- we had a rich mix of spare parts, Ned. But, that's not something that would be disclosed publicly.

Ned Borland - Next Generation Equity Research

Okay, alright. I thought you guys disclosed it last quarter. But, okay. What about the EVTeam backlog? It looks like you saw some sequential decline there. I was just wondering, did you step up your production rates there, given that you achieved profitability this year, or were orders slowing? What -- can you help us out there?

John Sztykiel

Ned, this is John speaking. The biggest reason for the sequential decline in the backlog was just that there was a slowing of the order intake primarily, at the a Crimson Fire perspective.

The order intake in Q4 was substantially higher at Crimson, and I think for the industry as a whole than what's been on the past. And so in Q1, there orders were significant below the normal order intake rate, which isn't surprising. I would expect to see order intake increase in Q2 versus Q1. I'm not sure if it's going to be at Q4, 2008 level. But, that's the number one reason, because there was just less order intake in the Q1 of this year.

Ned Borland - Next Generation Equity Research

Okay. And then, the backlog in fire chassis grew substantially, probably due to the standard change. Given that you'd standard change at the beginning of the year, and then you've got potential pre-buy activity at the back half of the year, I am just trying to ballpark a kind of a run rate for sales per quarter here. Do you think that it stays consistent with where it was in the first quarter, throughout the year?

James Knapp

From a, you mean from an order intake perspective or a revenue perspective?

Ned Borland - Next Generation Equity Research

Revenue perspective.

James Knapp

Oh, I would think from a revenue perspective you could probably look at the Q1 run rate, and say that could be a good average for fourth quarter of this year. From a top-line, or from an order intake perspective, I think what you will see is Q2 will be a little bit better than Q1. You will probably see Q3 be a little bit better than Q2. And then you will probably see again a significant increase in Q4 versus Q3, as people start to realize they have to make a decision.

 

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