Business Combination Disclosure [Text Block]

NOTE

– ACQUISITION ACTIVITIES

2018

Acquisition

December 17, 2018,

the Company acquired the assets and assumed certain liabilities of Strobes-R-Us, Inc. (“SRUS”), a premier provider of up-fit services for government and non-government vehicles. The acquisition will enable the Company to increase its product offerings to both fleet and emergency response customers, while further expanding its manufacturing capabilities into the southeastern U.S. market. As part of this acquisition, Spartan acquired Strobes-R-Us’ state-of-the-art up-fit facility and product showroom in Pompano Beach, Florida.

Purchase Price Allocation

The total purchase price paid for our acquisition of SRUS was

$8,032,

subject to a net working capital adjustment. The consideration paid consisted of

$5,200

in cash, plus a

$2,832

contingency for performance-based earn-out payments. The price paid pursuant to the purchase agreement was the subject of negotiation between SRUS and us.

This acquisition was accounted for using the acquisition method of accounting, which requires the purchase price to be allocated to the assets purchased and liabilities assumed based upon their estimated fair values at the date of acquisition. The excess of the estimated purchase price over the preliminary estimated fair values of the net tangible and intangible assets acquired of

$4,456

was recorded as preliminary estimated goodwill. During the

second

quarter of

2019,

we made a certain adjustment to our purchase price allocation related to the Company stock, which resulted in a

$1,950

decrease in goodwill.

The fair value of the net assets acquired was based on a preliminary valuation and the estimates and assumptions are subject to change within the measurement period. The Company is continuing to evaluate the (i) inventory, (ii) intangible assets, (iii) deferred taxes and liabilities, (iv) income tax and non-income tax accruals and (v) the contingent consideration. The Company will finalize the purchase price allocation as soon as practicable within the measurement period, but in

event later than

one

year following the acquisition date.

The allocation of purchase price to assets acquired and liabilities assumed was as follows:

Accounts receivable	$	1,165
Inventory		893
Other current assets		3
Property, plant and equipment		1,942
Goodwill		4,456
Total assets acquired		8,459

Accounts payable		382
Other current liabilities		45
Total liabilities assumed		427

Total purchase price	$	8,032

Contingent Consideration

Pursuant to the purchase agreement, the former owners of SRUS

may

receive additional consideration through

2021

in the form of certain performance-based earn-out payments, up to an aggregate maximum of

$3,250.

The purchase agreement specifies annual payments for each calendar year beginning in

2019

through and including

2021

as a percentage of and contingent upon EBITDA for that calendar year exceeding predetermined thresholds. In accordance with accounting guidance for business combinations, at the date of sale the Company recorded a contingent liability of

$2,832

for the value of the future consideration based upon its best estimate of the likelihood of the payments, discounted to its present value using a discount rate of

4.7%.

Note 4 - Debt

6 Months Ended

Jun. 30, 2019

Debt Disclosure [Text Block]

NOTE

- DEBT

Long-term debt consists of the following:

	June 30 , 201 9			December 31, 201 8
Line of credit revolver (1)	$	20,460		$	25,460
Capital lease obligations		-			147
Finance lease obligation		667			-
Total debt		21,127			25,607
Less current portion of long-term debt		(213	)		(60	)
Total long-term debt	$	20,914		$	25,547

	( 1 )	On August 8, 2018, we entered into a Credit Agreement (the "Credit Agreement") by and among us and certain of our subsidiaries as borrowers, Wells Fargo Bank, N.A., as administrative agent ("Wells Fargo"), and the lenders party thereto consisting of Wells Fargo, JPMorgan Chase Bank, N.A. and PNC Bank National Association (the "Lenders"). Under the Credit Agreement, we may borrow up to $150,000 from the Lenders under a five -year secured revolving credit facility. The credit facility matures August 8, 2023. We may also request an increase in the facility of up to $75,000 in the aggregate, subject to customary conditions. The credit facility is also available for the issuance of letters of credit of up to $20,000 and swing line loans of up to $15,000, subject to certain limitations and restrictions. This line carries an interest rate of either (i) the highest of prime rate, the federal funds effective rate from time to time plus 0.5%, or the one month adjusted LIBOR plus 1.0%; or (ii) adjusted LIBOR plus margin based upon our ratio of debt to earnings from time to time. The applicable borrowing rate including margin was 3.6875% (or one -month LIBOR plus 1.25% ) at June 30, 2019. The credit facility is secured by security interests in, and liens on, all assets of the borrowers, other than real property and certain other excluded assets.

		On December 1, 2017, we entered into a First Amendment to the Second Amended and Restated Credit Agreement (the "First Credit Agreement") by and among us and certain of our subsidiaries, as borrowers, Wells Fargo, National Association, as agent, and the lenders party thereto consisting of Wells Fargo, National Association, JPMorgan Chase Bank, N.A. and PNC Bank National Association. Under the First Credit Agreement, we were able to borrow up to $100,000 under a three -year unsecured revolving credit facility. The First Credit Agreement was paid off and terminated when the “Credit Agreement” described above was entered into on August 8, 2018. This line carried an interest rate of the higher of either (i) the highest of prime rate, the federal funds effective rate plus 0.5%, or the one month adjusted LIBOR plus 1.00%; or (ii) adjusted LIBOR plus margin based upon our ratio of debt to earnings from time to time.

Under the terms of our Credit Agreement we are required to maintain certain financial ratios and other financial covenants, which limited our available borrowings under our line of credit to a total of approximately

$83,356

and

$86,410

June 30, 2019

and

December 31, 2018,

respectively. The agreement also prohibits us from incurring additional indebtedness; limits certain acquisitions, investments, advances or loans; limits our ability to pay dividends in certain circumstances; and restricts substantial asset sales. At

June 30, 2019

and

December

31,

2018,

we were in compliance with all covenants in our credit agreement.

Note 5 - Revenue

6 Months Ended

Jun. 30, 2019

Revenue from Contract with Customer [Text Block]

NOTE

– REVENUE

Contract assets and liabilities

The tables below disclose changes in contract assets and liabilities as of the periods indicated.

Contract assets
Opening balance (January 1, 2019)	$	36,027
Reclassification of the beginning contract assets to receivables, as the result of rights to consideration becoming unconditional		(41,058	)
Contract assets recognized, net of reclassification to receivables		51,108
Net change		10,050
Ending balance (June 30, 2019)	$	46,077

Contract liabilities
Opening balance (January 1, 2019)	$	22,632
Reclassification of the beginning contract liabilities to revenue, as the result of performance obligations satisfied		(26,768	)
Cash received in advance and not recognized as revenue		23,272
Net change		(3,496	)
Ending balance (June 30, 2019)	$	19,136

The aggregate amount of the transaction price allocated to remaining performance obligations in existing contracts that are yet to be completed are expected to be recognized as revenue in the following annual time-periods:

	1-12 Months (1)		13 Months and beyond (1)		Total
Revenue expected to be recognized as of June 30, 2019:
Fleet Vehicles and Services	$	272,399	$	-	$	272,399
Emergency Response Vehicles		188,938		1,645		190,583
Specialty Chassis and Vehicles		32,453		26		32,479
Total	$	493,790	$	1,671	$	495,461

(

)

Revenue above includes amounts related to extended warranties and roadside assistance contracts of

$246

and

$36

for

one

months and

$621

and

$26

for

months and beyond, respectively.

For performance obligations that are satisfied over time, revenue is expected to be recognized evenly over the time period to complete the contract due to the assembly line nature of the business operations. For performance obligations that are satisfied at a point in time, revenue is expected to be recognized when the customer obtains control of the product, which is generally upon shipment from our facility.

amounts have been excluded from the transaction prices above related to the guidance on constraining estimates of variable consideration.

In the following tables, revenue is disaggregated by primary geographical market and timing of revenue recognition for the

three

and

six

months ended

June 30, 2019.

The tables also include a reconciliation of the disaggregated revenue with the reportable segments.

	Three Months Ended June 30, 2019
	Fleet Vehicles and Services		Emergency Response Vehicles		Specialty Chassis and Vehicles		Total Reportable Segments		Other			Total
Primary geographical markets
United States	$	132,477	$	60,809	$	41,683	$	234,969	$	(3,152	)	$	231,817
Other		8,625		7,454		40		16,119		-			16,119
Total sales	$	141,102	$	68,263	$	41,723	$	251,088	$	(3,152	)	$	247,936

Timing of revenue recognition
Products transferred at a point in time	$	53,651	$	7,642	$	31,256	$	92,549	$	(3,152	)	$	89,397
Products and services transferred over time		87,451		60,621		10,467		158,539		-			158,539
Total sales	$	141,102	$	68,263	$	41,723	$	251,088	$	(3,152	)	$	247,936

	Six Months Ended June 30, 2019
	Fleet Vehicles and Services		Emergency Response Vehicles		Specialty Chassis and Vehicles		Total Reportable Segments		Other			Total
Primary geographical markets
United States	$	250,295	$	115,556	$	93,346	$	459,197	$	(5,280	)	$	453,917
Other		13,456		14,464		62		27,982		-			27,982
Total sales	$	263,751	$	130,020	$	93,408	$	487,179	$	(5,280	)	$	481,899

Timing of revenue recognition
Products transferred at a point in time	$	104,316	$	12,684	$	73,802	$	190,802	$	(5,280	)	$	185,522
Products and services transferred over time		159,435		117,336		19,606		296,377		-			296,377
Total sales	$	263,751	$	130,020	$	93,408	$	487,179	$	(5,280	)	$	481,899

	Three Months Ended June 30, 2018
	Fleet Vehicles and Services		Emergency Response Vehicles		Specialty Chassis and Vehicles		Total Reportable Segments		Other			Total
Primary geographical markets
United States	$	75,818	$	54,149	$	47,431	$	177,398	$	(1,528	)	$	175,870
Other		2,597		5,466		48		8,111		-			8,111
Total sales	$	78,415	$	59,615	$	47,479	$	185,509	$	(1,528	)	$	183,981

Timing of revenue recognition
Products transferred at a point in time	$	22,611	$	4,232	$	40,203	$	67,046	$	-		$	67,046
Products and services transferred over time		55,804		55,383		7,276		118,463		(1,528	)		116,935
Total sales	$	78,415	$	59,615	$	47,479	$	185,509	$	(1,528	)	$	183,981

	Six Months Ended June 30, 2018
	Fleet Vehicles and Services		Emergency Response Vehicles		Specialty Chassis and Vehicles		Total Reportable Segments		Other			Total
Primary geographical markets
United States	$	134,339	$	112,698	$	95,577	$	342,614	$	(3,129	)	$	339,485
Other		3,767		13,630		137		17,534		-			17,534
Total sales	$	138,106	$	126,328	$	95,714	$	360,148	$	(3,129	)	$	357,019

Timing of revenue recognition
Products transferred at a point in time	$	27,793	$	10,608	$	81,470	$	119,871	$	-		$	119,871
Products and services transferred over time		110,313		115,720		14,244		240,277		(3,129	)		237,148
Total sales	$	138,106	$	126,328	$	95,714	$	360,148	$	(3,129	)	$	357,019

Note 6 - Share-based Compensation

6 Months Ended

Jun. 30, 2019

Share-based Payment Arrangement [Text Block]

OTE

– SHARE-BASED COMPENSATION

Performance Units

During the

three

months ended

June 30, 2019,

we granted

218,148

performance units ("PSUs") which are earned over a

three

-year period based on performance conditions and then modified based on a market condition. The expense for these awards is determined based on the probability that the performance conditions will be met and the fair value of the market condition. The PSUs are expensed and recorded in

Additional paid-in capital

on the Condensed Consolidated Balance Sheets.

The total PSU expense and associated tax benefit for all outstanding awards for the

three

and

six

months ended

June 30, 2019

and

June 30, 2018

are as follows:

	Three Months Ended June 30
	201 9		201 8
Expense	$	140	$	-
Tax benefits		17		-

	Six Months Ended June 30
	2019		2018
Expense	$	140	$	-
Tax benefits		17		-

As of

June 30, 2019,

there was

$1.8

of remaining unrecognized compensation cost related to nonvested PSUs, which is expected to be recognized over a remaining weighted-average period of

2.5

years.

The PSU activity for the

six

months ended

June 30, 2019

is as follows:

	Total		Weighted- Average Grant Date Fair Value per Unit
Nonvested as of December 31, 2018		-	$	-
Granted		218 ,148		8.99
Nonvested as of June 30, 2019		218 ,148	$	8.99

Restricted Stock Units

During the

three

months ended

June 30, 2019,

we awarded

988

restricted stock units ("RSUs") to certain employees and Board members. These RSUs have restrictions on transfer which lapse

three

years after the date of grant for employees and

one

year after date of grant for Board members, at which time the units will be issued as unrestricted shares of Common Stock. RSUs are expensed and recorded in

Additional paid-in capital

on the Condensed Consolidated Balance Sheets over the requisite service period based on the value of the underlying shares on the date of grant.

The RSU expense and associated tax benefit for all outstanding awards for the

three

months ended

June 30, 2019

and

June 30, 2018

are as follows:

	Three Months Ended June 30
	201 9		201 8
Expense	$	132	$	-
Tax benefits		25		-

	Six Months Ended June 30
	2019		2018
Expense	$	132	$	-
Tax benefits		25		-

As of

June 30, 2019,

there was

$1.4

of remaining unrecognized compensation cost related to nonvested RSUs, which is expected to be recognized over a weighted-average period of

1.4

years.

The RSU activity for the

six

months ended

June 30, 2019

is as follows:

	Total		Weighted- Average Grant Date Fair Value per Unit
Nonvested as of December 31, 2018		-	$	-
Granted		175,988		8.98
Nonvested as of June 30, 2019		175,988	$	8.98

Note 7 - Leases

6 Months Ended

Jun. 30, 2019

Leases of Lessee Disclosure [Text Block]

OTE

– LEASES

We have operating and finance leases for land, buildings and certain equipment. Our leases have remaining lease terms of

year to

years, some of which include options to extend the leases for up to

years. Our leases do

not

contain residual value guarantees. As of

June 30, 2019,

assets recorded under finance leases were immaterial (See Note

–

Debt

Operating lease expenses are classified as cost of products sold and operating expenses on the Condensed Consolidated Statements of Operations. The components of lease expense were as follows:

	Six months ended June 30, 2019

Operating leases	$	1,727
Short term leases (1)		47
Total lease expense	$	1,774

(

)

Includes expenses for month-to-month equipment leases, which are classified as short-term as the Company is

not

reasonably certain to renew the lease term beyond

one

month.

The weighted average remaining lease term and weighted average discount rate were as follows:

	Six months ended June 30, 2019
Weighted average remaining lease term of operating leases		5.1 years
Weighted average discount rate of operating leases		4.7	%

Supplemental cash flow information related to leases was as follows:

	Six months ended June 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:

Operating cash flow from operating leases	$	1,727

Right of use assets obtained in exchange for lease obligations:

Operating leases	$	3,012

Finance leases	$	-

Maturities of operating lease liabilities as of

June 30, 2019

are as follows:

Years ending December 31:
2019 (1)	$	1,960
2020		3,453
2021		2,793
2022		2,418
2023		2,431
Thereafter		4,611
Total lease payments		17,666
Less: imputed interest		2,519
Total lease liabilities	$	15,147

(

)

Excluding the

six

months ended

June 30, 2019.

The aggregate amount of future minimum annual rental payments applicable to noncancelable leases as of

December 31, 2018

were as follows:

	Future Minimum Lease Payments
Year ending December 31:
2019	$	3,291
2020		2,831
2021		2,193
2022		1,849
2023		1,863
Thereafter		4,149
Total	$	16,176

Note 8 - Commitments and Contingent Liabilities

6 Months Ended

Jun. 30, 2019

Commitments and Contingencies Disclosure [Text Block]

NOTE

- COMMITMENTS AND CONTINGENT LIABILITIES

Under the terms of our credit agreement with our banks, we have the ability to issue letters of credit totaling

$20,000.

June 30, 2019

and

December 31, 2018,

we had outstanding letters of credit totaling

$896

and

$913

related to certain emergency response vehicle contracts and our workers compensation insurance.

June 30, 2019,

we and our subsidiaries were parties, both as plaintiff and defendant, to a number of lawsuits and claims arising out of the normal course of our businesses. In the opinion of management, our financial position, future operating results or cash flows will

not

be materially affected by the final outcome of these legal proceedings.

Warranty Related

We provide limited warranties against assembly/construction defects. These warranties generally provide for the replacement or repair of defective parts or workmanship for a specified period following the date of sale. The end users also

may

receive limited warranties from suppliers of components that are incorporated into our chassis and vehicles.

Certain warranty and other related claims involve matters of dispute that ultimately are resolved by negotiation, arbitration or litigation. Infrequently, a material warranty issue can arise which is beyond the scope of our historical experience. We provide for any such warranty issues as they become known and are estimable. It is reasonably possible that additional warranty and other related claims could arise from disputes or other matters beyond the scope of our historical experience.

Changes in our warranty liability during the

six

months ended

June 30, 2019

and

2018

were as follows:

	201 9			201 8
Balance of accrued warranty at January 1	$	16,090		$	18,268
Warranties issued during the period		5,691			3,168
Cash settlements made during the period		(4,722	)		(5,397	)
Changes in liability for pre-existing warranties during the period, including expirations		52			155
Balance of accrued warranty at June 30	$	17,111		$	16,194

Spartan-Gimaex Joint Venture

February 2015,

Spartan USA and Gimaex Holding, Inc. mutually agreed to begin discussions regarding the dissolution of the Spartan-Gimaex joint venture. In

June 2015,

Spartan USA and Gimaex Holding, Inc. entered into court proceedings to determine the terms of the dissolution. In

February 2017,

by agreement of the parties, the court proceeding was dismissed with prejudice and the judge entered an order to this effect as the parties agreed to seek a dissolution plan on their own.

dissolution terms have been determined as of the date of this Form

-Q.

Costs associated with the wind-down will be impacted by the final dissolution terms. The costs we have accrued so far represent the low end of the range of the estimated total charges that we believe we

may

incur related to the wind-down. While we are unable to determine the final cost of the wind-down with certainty at this time, we

may

incur additional charges, depending on the final terms of the dissolution, and such charges are

not

expected to be material to our results. In the

second

quarter of

2019,

we incurred charges totaling

$216

to write down certain inventory items associated with this joint venture to their estimated fair values.

Note 9 - Taxes on Income	6 Months Ended
Note 9 - Taxes on Income	Jun. 30, 2019
Notes to Financial Statements
Income Tax Disclosure [Text Block]	N OTE 9 – TAXES ON INCOME Our effective income tax rate was 24.4% and 18.2% for the three and six months ended June 30, 2019 compared to 29.1% and 15.8% for the three and six months ended June 30, 2018. The effective tax rate for the three months ended June 30, 2019 reflects the impact of current statutory income tax rates on our Income before taxes. The effective tax rate for the six months ended June 30, 2019 was primarily impacted by the recording of a discrete tax benefit recorded in the first quarter related to additional state tax credits from prior years becoming available for utilization in future tax returns, with a net reduction in income tax expense of $296. Our effective tax rate for the three months ended June 30, 2018 was unfavorably impacted by an adjustment due to a change in expected full year financial performance, as we recorded additional income tax expense of $170 to increase the balance of the tax expense recorded for the first half of 2018 to the Company’s current estimated full year effective tax rate of 27.3% before discrete items. The effective tax rate for the six months ended June 30, 2018 was favorably impacted by a $1,333 discrete tax benefit related to the difference in stock compensation expense recognized for book purposes and tax purposes upon vesting , partially offset by $249 of increases for other discrete items.

Note 11 - Business Segments

6 Months Ended

Jun. 30, 2019

Segment Reporting Disclosure [Text Block]

NOTE

- BUSINESS SEGMENTS

We identify our reportable segments based on our management structure and the financial data utilized by our chief operating decision makers to assess segment performance and allocate resources among our operating units. We have

three

reportable segments: Fleet Vehicles and Services, Emergency Response Vehicles and Specialty Chassis and Vehicles.

We evaluate the performance of our reportable segments based on Adjusted EBITDA. Adjusted EBITDA is defined as earnings before interest, taxes, depreciation and amortization, and other adjustments made in order to present comparable results from period to period. For the periods covered by this Form

-Q, these adjustments include: restructuring charges; accruals and adjustments to prior accruals for product recalls; various items related to business acquisition and litigation activities; and the impact of temporary production disruptions due to severe weather-related flooding surrounding the Company’s facilities. We exclude these items from earnings because we believe they will be incurred infrequently and/or are otherwise

not

indicative of a segment's regular, ongoing operating performance. Adjusted EBITDA is also used as a performance metric for certain of our compensation programs, as discussed in our proxy statement for our

2019

annual meeting of shareholders, which proxy statement was filed with the SEC on

April 19, 2019.

Our Fleet Vehicles and Services segment consists of our operations at our Bristol, Indiana location, and beginning in

2018

certain operations at our Ephrata, Pennsylvania location along with our operations at our up-fit centers in Kansas City, Missouri; North Charleston, South Carolina, Pompano Beach, Florida, Southern California and Saltillo, Mexico. The segment focuses on designing and manufacturing walk-in vans for the parcel delivery, mobile retail, and trades and construction industries, the production of commercial truck bodies, and the distribution of related aftermarket parts and accessories.

Our Emergency Response Vehicles segment consists of the emergency response chassis operations at our Charlotte, Michigan location and our operations at our Brandon, South Dakota; Snyder and Neligh, Nebraska; and Ephrata, Pennsylvania locations. This segment engineers and manufactures emergency response chassis and apparatus and distributes related aftermarket parts and accessories.

Our Specialty Chassis and Vehicles segment consists of our Charlotte, Michigan operations that engineer and manufacture motor home chassis, defense vehicles and other specialty chassis and distribute related aftermarket parts and assemblies.

The accounting policies of the segments are the same as those described, or referred to, in Note

General and Summary of Accounting Policies

. Assets and related depreciation expense in the column labeled “Eliminations and Other” pertain to capital assets maintained at the corporate level. Eliminations for inter-segment sales are shown in the column labeled “Eliminations and Other”. Appropriate expense amounts are allocated to the

three

reportable segments and are included in their reported operating income or loss. Segment loss from operations in the “Eliminations and Other” column contains corporate related expenses

not

allocable to the operating segments. Interest expense and Taxes on income are

not

included in the information utilized by the chief operating decision makers to assess segment performance and allocate resources, and accordingly, are excluded from the segment results presented below.

Three Months Ended

une

201

	Fleet Vehicles and Services		Emergency Response Vehicles		Specialty Chassis and Vehicles		Eliminations and Other			Consolidated

Fleet vehicle sales	$	111,230	$	-	$	3,152	$	(3,152	)	$	111,230
Emergency response vehicle sales		-		64,668		-		-			64,668
Motor home chassis sales		-		-		28,653		-			28,653
Other specialty vehicle sales		-		-		7,315		-			7,315
Aftermarket parts and accessories sales		29,872		3,595		2,603		-			36,070

Total sales	$	141,102	$	68,263	$	41,723	$	(3,152	)	$	247,936

Depreciation and amortization expense	$	556	$	708	$	394	$	857		$	2,515
Adjusted EBITDA		7,920		1,113		5,083		(4,630	)		9,486
Segment assets		149,793		137,254		34,306		73,455			394,808
Capital expenditures		552		154		74		1,007			1,787

Three Months Ended

June 30

201

	Fleet Vehicles and Services		Emergency Response Vehicles		Specialty Chassis and Vehicles		Eliminations and Other			Consolidated

Fleet vehicle sales	$	53,107	$	-	$	1,528	$	(1,528	)	$	53,107
Emergency response vehicle sales		-		56,935		-		-			56,935
Motor home chassis sales		-		-		37,184		-			37,184
Other specialty vehicle sales		-		-		5,748		-			5,748
Aftermarket parts and accessories sales		25,308		2,680		3,019		-			31,007

Total sales	$	78,415	$	59,615	$	47,479	$	(1,528	)	$	183,981

Depreciation and amortization expense	$	570	$	628	$	369	$	1,019		$	2,586
Adjusted EBITDA		8,374		193		4,391		(4,073	)		8,885
Segment assets		103,812		111,255		31,772		82,845			329,684
Capital expenditures		761		29		41		1,215			2,046

Six

Months Ended

June 30,

201

	Fleet Vehicles and Services		Emergency Response Vehicles			Specialty Chassis and Vehicles		Eliminations and Other			Consolidated

Fleet vehicle sales	$	207,549	$	-		$	5,280	$	(5,280	)	$	207,549
Emergency response vehicle sales		-		123,236			-		-			123,326
Motor home chassis sales		-		-			68,939		-			68,939
Other specialty vehicle sales		-		-			14,173		-			14,173
Aftermarket parts and accessories sales		56,202		6,784			5,016		-			68,002

Total sales	$	263,751	$	130,020		$	93,408	$	(5,280	)	$	481,899

Depreciation and amortization expense	$	1,154	$	1,415		$	747	$	1,724		$	5,040
Adjusted EBITDA		14,895		(1,179	)		10,047		(9,645	)		14,118
Segment assets		149,793		137,254			34,306		73,455			394,808
Capital expenditures		698		208			306		2,509			3,721

Six

Months Ended

June 30,

201

	Fleet Vehicles and Services		Emergency Response Vehicles		Specialty Chassis and Vehicles		Eliminations and Other			Consolidated

Fleet vehicle sales	$	102,932	$	-	$	3,129	$	(3,129	)	$	102,932
Emergency response vehicle sales		-		121,043		-		-			121,043
Motor home chassis sales		-		-		76,751		-			76,751
Other specialty vehicle sales		-		-		11,115		-			11,115
Aftermarket parts and accessories sales		35,174		5,285		4,719		-			45,178

Total sales	$	138,106	$	126,328	$	95,714	$	(3,129	)	$	357,019

Depreciation and amortization expense	$	1,176	$	1,252	$	735	$	1,875		$	5,038
Adjusted EBITDA		12,961		1,435		7,513		(7,418	)		14,491
Segment assets		103,812		111,255		31,772		82,845			329,684
Capital expenditures		1,565		154		97		2,267			4,083

SPARTAN MOTORS, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollar amounts in thousands, except per share data)

The table below presents the reconciliation of our consolidated income before taxes to total segment Adjusted EBITDA. Adjusted EBITDA is

not

a measurement of our financial performance under GAAP and should

not

be considered as an alternative to net income. Adjusted EBITDA

may

have limitations as an analytical tool and should

not

be considered in isolation or as a substitute for analysis of our results as reported under GAAP. In addition, although we have excluded certain charges in calculating Adjusted EBITDA, we

may

in the future incur expenses similar to these adjustments, despite our assessment that such expenses are infrequent and/or

not

indicative of our regular, ongoing operating performance. Our presentation of Adjusted EBITDA should

not

be construed as an inference that our future results will be unaffected by unusual or infrequent items.

	Three Months Ended June 30, 2019			Three Months Ended June 30, 2018			Six Months Ended June 30, 2019			Six Months Ended June 30, 2018
Total segment adjusted EBITDA	$	14,116		$	12,958		$	23,763		$	21,909
Add (subtract):
Interest expense		(313	)		(270	)		(687	)		(592	)
Depreciation and amortization expense		(2,515	)		(2,586	)		(5,040	)		(5,038	)
Restructuring expense		(71	)		(797	)		(183	)		(817	)
Acquisition related expenses including stock compensation		(745	)		(373	)		(790	)		(535	)
Litigation expense		(9	)		-			(52	)		-
Nebraska flooding expenses		-			-			(123	)		-
Recall expense		(777	)		443			(777	)		443
Long-term strategic planning expense		-			(718	)		-			(718	)
Executive compensation plan expense		(273	)		-			(273	)		-
Impact of acquisition adjustments for net working capital and contingent liability		-			693			-			2,193
Joint venture inventory adjustment		(216	)		-			(216	)		-
Unallocated corporate expenses		(4,845	)		(4,073	)		(9,720	)		(7,418	)
Consolidated income before taxes	$	4,352		$	5,277		$	5,902		$	9,427

SPARTAN MOTORS, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollar amounts in thousands, except per share data)

Significant Accounting Policies (Policies)	6 Months Ended
Significant Accounting Policies (Policies)	Jun. 30, 2019
Accounting Policies [Abstract]
New Accounting Pronouncements, Policy [Policy Text Block]	New Accounting Standards In June 2016, the FASB issued Accounting Standards Update 2016 - 13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments (“ASU 2016 - 13” ). ASU 2016 - 13 is intended to introduce a revised approach to the recognition and measurement of credit losses, emphasizing an updated model based on expected losses rather than incurred losses. The provisions of this standard are effective for reporting periods beginning after December 15, 2019 and early adoption is permitted. We believe that the adoption of the provisions of ASU 2016 - 13 will not have a material impact on our consolidated financial position, results of operations or cash flows. In February 2016, the FASB issued Accounting Standards Update No. 2016 - 02, Leases (“ASU 2016 - 02” ). The new standard establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees with capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. We adopted ASU 2016 - 02 as of January 1, 2019 using the modified retrospective approach. See the “ Adoption of Lease Accounting Policy ” section below and Note 7 – Leases for a description of the impact of the adoption of the provisions of ASU 2016 - 02 on our consolidated financial position, results of operations and cash flows Except for the changes below, we have consistently applied the accounting policies to all periods presented in these condensed consolidated financial statements. Adoption of Lease Accounting Policy We applied ASU 2016 - 02 and all related amendments (“ASC 842” ) using the modified retrospective method by recognizing the cumulative effect of adoption as an adjustment to the opening balance of retained earnings at January 1, 2019. Therefore, the comparative information has not been adjusted and continues to be reported under prior leasing guidance. In addition, we elected to apply the following package of practical expedients on a consistent basis permitting entities not to reassess: (i) whether any expired or existing contracts are or contain a lease; (ii) lease classification for any expired or existing leases and (iii) whether initial direct costs for any expired or existing leases qualify for capitalization under the amended guidance. As a result, in the first quarter of 2019 we recorded ROU assets of $13,582 for operating leases and $675 for financing leases. We also recorded operating lease liabilities of $13,716 and finance lease liabilities of $696. The decrease to retained earnings was $113, net of the tax effect of $42 reflecting the cumulative impact of the accounting change. The standard did not have a material effect on consolidated net income or cash flows. We determine if an arrangement is a lease at inception. Operating leases are included in ROU assets – operating leases, Operating lease liability, and Long-term operating lease liability on our Condensed Consolidated Balance Sheets. Finance leases are included in Other assets, Other current liabilities and accrued expenses and Other non-current liabilities on our Condensed Consolidated Balance Sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives and initial direct costs incurred. We include options to extend or terminate the lease in our lease term when it is reasonably certain that we will exercise that option. Lease expense for lease payments on operating leases is recognized on a straight-line basis over the lease term. We do not record a ROU asset or lease liability for leases with an expected term of 12 months or less. Expenses for these leases are recognized on a straight-line basis over the lease term. We have lease agreements with lease and non-lease components, which are accounted for separately for leases related to real property. For leases related to personal property we account for lease and non-lease components associated with a lease as a single lease component.
Revenue from Contract with Customer [Policy Text Block]	Revenue Recognition Accounting Policy Essentially all of our revenue is generated through contracts with our customers. We may recognize revenue over time or at a point in time when or as obligations under the terms of a contract with our customer are satisfied, depending on the terms and features of the contract and the products supplied. Our contracts generally do not have any significant variable consideration. The collectability of consideration on the contract is reasonably assured before revenue is recognized. On certain vehicles, payment may be received in advance of us satisfying our performance obligations. Such payments are recorded in Customer deposits on the Condensed Consolidated Balance Sheets. The corresponding performance obligations are generally satisfied within one year of the contract inception. In such cases, we have elected to apply the practical expedient to not adjust the promised amount of consideration for the effects of a significant financing component. The financing impact on contracts that contain performance obligations that are not expected to be satisfied within one year are expected to be immaterial to our condensed consolidated financial statements. We have elected to utilize the practical expedient to recognize the incremental costs of obtaining a contract as an expense when incurred because the amortization period for the prepaid costs that would have otherwise been deferred and amortized is one year or less. Revenue recognized in a current period from performance obligations satisfied in a prior period, if any, is immaterial to our condensed consolidated financial statements. We use an observable price to allocate the stand-alone selling price to separate performance obligations within a contract or a cost-plus margin approach when an observable price is not available. The estimated costs to fulfill our base warranties are recognized as expense when the products are sold (see “ Note 8 – Commitments and Contingent Liabilities ” for further information on warranties). Our contracts with customers do not contain a provision for product returns, except for contracts related to certain parts sales. Revenue for parts sales for all segments is recognized at the time that control and risk of ownership has passed to the customer, which is generally when the ordered part is shipped to the customer. Historical return rates on parts sales have been immaterial. Accordingly, no return reserve has been recorded. Instead, returns are recognized as a reduction of revenue at the time that they are received. For certain of our vehicles and chassis, we sell separately priced service contracts that provide roadside assistance or extend certain warranty coverage beyond our base warranty agreements. These separately priced contracts range from 1 to 6 years from the date of the shipment of the related vehicle or chassis. We receive payment with the shipment of the related vehicle or at the inception of the extended service contract, if later, and recognize revenue over the coverage term of the agreement, generally on a straight-line basis, which approximates the pattern of costs expected to be incurred in satisfying the obligations under the contract. Distinct revenue recognition policies for our segments are as follows: Fleet Vehicles and Services Our walk-in vans and truck bodies are generally built on a chassis that is owned and controlled by the customer. Due to the customer ownership of the chassis, the performance obligation for these walk-in vans and truck bodies is satisfied as the vehicles are built. Accordingly, the revenue and corresponding cost of products sold associated with these contracts are recognized over time based on the inputs completed for a given performance obligation during the reporting period. Certain contracts will specify that a walk-in van or truck body is to be built on a chassis that we purchase and subsequently sell to the customer. The revenue on these contracts is recognized at the time that the performance obligation is satisfied and control and risk of ownership has passed to the customer, which is generally upon shipment of the vehicle from our manufacturing facility to the customer or receipt of the vehicle by the customer, depending on contract terms. We have elected to treat shipping and handling costs subsequent to transfer of control as fulfillment activities and, accordingly, recognize these costs as the revenue is recognized. Revenue for up-fit and field service contracts is recognized over time, as equipment is installed in the customer’s vehicle or as repairs and enhancements are made to the customer’s vehicles. Revenue and the corresponding cost of products sold is estimated based on the inputs completed for a given performance obligation. Our performance obligation for up-fit and field service contracts is satisfied when the equipment installation or repairs and enhancements of the customer’s vehicle has been completed. Payment on our fleet vehicles and services performance obligations is received an average of 35 days after revenue is recognized. Emergency Response Vehicles Our emergency response chassis and apparatuses are generally manufactured to order based on customer-supplied specifications. Due to the custom nature of the products and the attributes of the contracts, we do not have a ready alternative use for our emergency response chassis and apparatuses and we have an enforceable right to payment on the contracts. Accordingly, performance obligations for these custom ordered chassis and apparatuses are satisfied as the apparatuses and chassis are built. We recognize revenue and the corresponding cost of products sold on these contracts over time based on the inputs completed for a given performance obligation during the reporting period. We have elected to treat shipping and handling costs subsequent to transfer of control as fulfillment activities and, accordingly, recognize these costs as the revenue is recognized. Payment is received an average of 48 days following the recognition of revenue for chassis and 103 days for complete apparatuses. Revenue on certain emergency response chassis and apparatuses that are sold from stock or utilized as demonstration units is recognized at the point in time that the contract is received. Revenue related to modifications made to trucks sold from stock or that were utilized as demonstration units is recognized over time as the modifications are completed. Payment is received an average of 60 days following the recognition of revenue for stock or demonstration units. Specialty Chassis and Vehicles We recognize revenue and the corresponding cost of products sold on the sale of motor home chassis when the performance obligation is completed and control and risk of ownership of the chassis has passed to our customer, which is generally upon shipment of the chassis to the customer. Revenue and the corresponding cost of products sold associated with other specialty chassis is recognized over time based on the inputs completed for a given performance obligation during the reporting period. The performance obligations for other specialty chassis contracts are satisfied as the products are assembled. Payment is received an average of 24 days following the recognition of revenue for other specialty chassis.

Note 3 - Inventories (Tables)

6 Months Ended

Jun. 30, 2019

Schedule of Inventory, Current [Table Text Block]

	June 30, 2019			December 31, 2018
Finished goods	$	16,307		$	14,696
Work in process		10,920			5,926
Raw materials and purchased components		58,938			52,474
Reserve for slow-moving inventory		(4,100	)		(3,104	)
Total inventory	$	82,065		$	69,992

Note 4 - Debt (Tables)

6 Months Ended

Jun. 30, 2019

Schedule of Long-term Debt Instruments [Table Text Block]

	June 30 , 201 9			December 31, 201 8
Line of credit revolver (1)	$	20,460		$	25,460
Capital lease obligations		-			147
Finance lease obligation		667			-
Total debt		21,127			25,607
Less current portion of long-term debt		(213	)		(60	)
Total long-term debt	$	20,914		$	25,547

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28541-108399

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21506-112644

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28551-108399

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21521-112644

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21538-112644

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=75038535&loc=d3e64711-112823

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=114775985&loc=d3e28878-108400

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21475-112644

+ Details

Note 5 - Revenue (Tables)

6 Months Ended

Jun. 30, 2019

Contract with Customer, Asset and Liability [Table Text Block]

Contract assets
Opening balance (January 1, 2019)	$	36,027
Reclassification of the beginning contract assets to receivables, as the result of rights to consideration becoming unconditional		(41,058	)
Contract assets recognized, net of reclassification to receivables		51,108
Net change		10,050
Ending balance (June 30, 2019)	$	46,077

Contract liabilities
Opening balance (January 1, 2019)	$	22,632
Reclassification of the beginning contract liabilities to revenue, as the result of performance obligations satisfied		(26,768	)
Cash received in advance and not recognized as revenue		23,272
Net change		(3,496	)
Ending balance (June 30, 2019)	$	19,136

Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Table Text Block]

	1-12 Months (1)		13 Months and beyond (1)		Total
Revenue expected to be recognized as of June 30, 2019:
Fleet Vehicles and Services	$	272,399	$	-	$	272,399
Emergency Response Vehicles		188,938		1,645		190,583
Specialty Chassis and Vehicles		32,453		26		32,479
Total	$	493,790	$	1,671	$	495,461

Disaggregation of Revenue [Table Text Block]

	Three Months Ended June 30, 2019
	Fleet Vehicles and Services		Emergency Response Vehicles		Specialty Chassis and Vehicles		Total Reportable Segments		Other			Total
Primary geographical markets
United States	$	132,477	$	60,809	$	41,683	$	234,969	$	(3,152	)	$	231,817
Other		8,625		7,454		40		16,119		-			16,119
Total sales	$	141,102	$	68,263	$	41,723	$	251,088	$	(3,152	)	$	247,936

Timing of revenue recognition
Products transferred at a point in time	$	53,651	$	7,642	$	31,256	$	92,549	$	(3,152	)	$	89,397
Products and services transferred over time		87,451		60,621		10,467		158,539		-			158,539
Total sales	$	141,102	$	68,263	$	41,723	$	251,088	$	(3,152	)	$	247,936

	Six Months Ended June 30, 2019
	Fleet Vehicles and Services		Emergency Response Vehicles		Specialty Chassis and Vehicles		Total Reportable Segments		Other			Total
Primary geographical markets
United States	$	250,295	$	115,556	$	93,346	$	459,197	$	(5,280	)	$	453,917
Other		13,456		14,464		62		27,982		-			27,982
Total sales	$	263,751	$	130,020	$	93,408	$	487,179	$	(5,280	)	$	481,899

Timing of revenue recognition
Products transferred at a point in time	$	104,316	$	12,684	$	73,802	$	190,802	$	(5,280	)	$	185,522
Products and services transferred over time		159,435		117,336		19,606		296,377		-			296,377
Total sales	$	263,751	$	130,020	$	93,408	$	487,179	$	(5,280	)	$	481,899

	Three Months Ended June 30, 2018
	Fleet Vehicles and Services		Emergency Response Vehicles		Specialty Chassis and Vehicles		Total Reportable Segments		Other			Total
Primary geographical markets
United States	$	75,818	$	54,149	$	47,431	$	177,398	$	(1,528	)	$	175,870
Other		2,597		5,466		48		8,111		-			8,111
Total sales	$	78,415	$	59,615	$	47,479	$	185,509	$	(1,528	)	$	183,981

Timing of revenue recognition
Products transferred at a point in time	$	22,611	$	4,232	$	40,203	$	67,046	$	-		$	67,046
Products and services transferred over time		55,804		55,383		7,276		118,463		(1,528	)		116,935
Total sales	$	78,415	$	59,615	$	47,479	$	185,509	$	(1,528	)	$	183,981

	Six Months Ended June 30, 2018
	Fleet Vehicles and Services		Emergency Response Vehicles		Specialty Chassis and Vehicles		Total Reportable Segments		Other			Total
Primary geographical markets
United States	$	134,339	$	112,698	$	95,577	$	342,614	$	(3,129	)	$	339,485
Other		3,767		13,630		137		17,534		-			17,534
Total sales	$	138,106	$	126,328	$	95,714	$	360,148	$	(3,129	)	$	357,019

Timing of revenue recognition
Products transferred at a point in time	$	27,793	$	10,608	$	81,470	$	119,871	$	-		$	119,871
Products and services transferred over time		110,313		115,720		14,244		240,277		(3,129	)		237,148
Total sales	$	138,106	$	126,328	$	95,714	$	360,148	$	(3,129	)	$	357,019

Note 6 - Share-based Compensation (Tables)

6 Months Ended

Jun. 30, 2019

Share-based Payment Arrangement, Activity [Table Text Block]

	Three Months Ended June 30
	201 9		201 8
Expense	$	140	$	-
Tax benefits		17		-

	Six Months Ended June 30
	2019		2018
Expense	$	140	$	-
Tax benefits		17		-

	Total		Weighted- Average Grant Date Fair Value per Unit
Nonvested as of December 31, 2018		-	$	-
Granted		218 ,148		8.99
Nonvested as of June 30, 2019		218 ,148	$	8.99

	Three Months Ended June 30
	201 9		201 8
Expense	$	132	$	-
Tax benefits		25		-

	Six Months Ended June 30
	2019		2018
Expense	$	132	$	-
Tax benefits		25		-

	Total		Weighted- Average Grant Date Fair Value per Unit
Nonvested as of December 31, 2018		-	$	-
Granted		175,988		8.98
Nonvested as of June 30, 2019		175,988	$	8.98

Note 7 - Leases (Tables)

6 Months Ended

Jun. 30, 2019

Lease, Cost [Table Text Block]

	Six months ended June 30, 2019

Operating leases	$	1,727
Short term leases (1)		47
Total lease expense	$	1,774

	Six months ended June 30, 2019
Weighted average remaining lease term of operating leases		5.1 years
Weighted average discount rate of operating leases		4.7	%

	Six months ended June 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:

Operating cash flow from operating leases	$	1,727

Right of use assets obtained in exchange for lease obligations:

Operating leases	$	3,012

Finance leases	$	-

Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]

Years ending December 31:
2019 (1)	$	1,960
2020		3,453
2021		2,793
2022		2,418
2023		2,431
Thereafter		4,611
Total lease payments		17,666
Less: imputed interest		2,519
Total lease liabilities	$	15,147

Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block]

	Future Minimum Lease Payments
Year ending December 31:
2019	$	3,291
2020		2,831
2021		2,193
2022		1,849
2023		1,863
Thereafter		4,149
Total	$	16,176

Note 11 - Business Segments (Tables)

6 Months Ended

Jun. 30, 2019

Schedule of Segment Reporting Information, by Segment [Table Text Block]

	Fleet Vehicles and Services		Emergency Response Vehicles		Specialty Chassis and Vehicles		Eliminations and Other			Consolidated

Fleet vehicle sales	$	111,230	$	-	$	3,152	$	(3,152	)	$	111,230
Emergency response vehicle sales		-		64,668		-		-			64,668
Motor home chassis sales		-		-		28,653		-			28,653
Other specialty vehicle sales		-		-		7,315		-			7,315
Aftermarket parts and accessories sales		29,872		3,595		2,603		-			36,070

Total sales	$	141,102	$	68,263	$	41,723	$	(3,152	)	$	247,936

Depreciation and amortization expense	$	556	$	708	$	394	$	857		$	2,515
Adjusted EBITDA		7,920		1,113		5,083		(4,630	)		9,486
Segment assets		149,793		137,254		34,306		73,455			394,808
Capital expenditures		552		154		74		1,007			1,787

	Fleet Vehicles and Services		Emergency Response Vehicles		Specialty Chassis and Vehicles		Eliminations and Other			Consolidated

Fleet vehicle sales	$	53,107	$	-	$	1,528	$	(1,528	)	$	53,107
Emergency response vehicle sales		-		56,935		-		-			56,935
Motor home chassis sales		-		-		37,184		-			37,184
Other specialty vehicle sales		-		-		5,748		-			5,748
Aftermarket parts and accessories sales		25,308		2,680		3,019		-			31,007

Total sales	$	78,415	$	59,615	$	47,479	$	(1,528	)	$	183,981

Depreciation and amortization expense	$	570	$	628	$	369	$	1,019		$	2,586
Adjusted EBITDA		8,374		193		4,391		(4,073	)		8,885
Segment assets		103,812		111,255		31,772		82,845			329,684
Capital expenditures		761		29		41		1,215			2,046

	Fleet Vehicles and Services		Emergency Response Vehicles			Specialty Chassis and Vehicles		Eliminations and Other			Consolidated

Fleet vehicle sales	$	207,549	$	-		$	5,280	$	(5,280	)	$	207,549
Emergency response vehicle sales		-		123,236			-		-			123,326
Motor home chassis sales		-		-			68,939		-			68,939
Other specialty vehicle sales		-		-			14,173		-			14,173
Aftermarket parts and accessories sales		56,202		6,784			5,016		-			68,002

Total sales	$	263,751	$	130,020		$	93,408	$	(5,280	)	$	481,899

Depreciation and amortization expense	$	1,154	$	1,415		$	747	$	1,724		$	5,040
Adjusted EBITDA		14,895		(1,179	)		10,047		(9,645	)		14,118
Segment assets		149,793		137,254			34,306		73,455			394,808
Capital expenditures		698		208			306		2,509			3,721

	Fleet Vehicles and Services		Emergency Response Vehicles		Specialty Chassis and Vehicles		Eliminations and Other			Consolidated

Fleet vehicle sales	$	102,932	$	-	$	3,129	$	(3,129	)	$	102,932
Emergency response vehicle sales		-		121,043		-		-			121,043
Motor home chassis sales		-		-		76,751		-			76,751
Other specialty vehicle sales		-		-		11,115		-			11,115
Aftermarket parts and accessories sales		35,174		5,285		4,719		-			45,178

Total sales	$	138,106	$	126,328	$	95,714	$	(3,129	)	$	357,019

Depreciation and amortization expense	$	1,176	$	1,252	$	735	$	1,875		$	5,038
Adjusted EBITDA		12,961		1,435		7,513		(7,418	)		14,491
Segment assets		103,812		111,255		31,772		82,845			329,684
Capital expenditures		1,565		154		97		2,267			4,083

Schedule of Earnings Before Interest, Taxes, Depreciation and Amortization [Table Text Block]

	Three Months Ended June 30, 2019			Three Months Ended June 30, 2018			Six Months Ended June 30, 2019			Six Months Ended June 30, 2018
Total segment adjusted EBITDA	$	14,116		$	12,958		$	23,763		$	21,909
Add (subtract):
Interest expense		(313	)		(270	)		(687	)		(592	)
Depreciation and amortization expense		(2,515	)		(2,586	)		(5,040	)		(5,038	)
Restructuring expense		(71	)		(797	)		(183	)		(817	)
Acquisition related expenses including stock compensation		(745	)		(373	)		(790	)		(535	)
Litigation expense		(9	)		-			(52	)		-
Nebraska flooding expenses		-			-			(123	)		-
Recall expense		(777	)		443			(777	)		443
Long-term strategic planning expense		-			(718	)		-			(718	)
Executive compensation plan expense		(273	)		-			(273	)		-
Impact of acquisition adjustments for net working capital and contingent liability		-			693			-			2,193
Joint venture inventory adjustment		(216	)		-			(216	)		-
Unallocated corporate expenses		(4,845	)		(4,073	)		(9,720	)		(7,418	)
Consolidated income before taxes	$	4,352		$	5,277		$	5,902		$	9,427

Note 1 - General and Summary of Accounting Policies (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Jun. 30, 2019	Dec. 31, 2018
Operating Lease, Right-of-Use Asset		$ 14,953
Operating Lease, Liability, Total		15,147
Finance Lease, Liability, Total		$ 667
Accounting Standards Update 2016-02 [Member]
Operating Lease, Right-of-Use Asset	$ 13,582
Finance Lease, Right-of-Use Asset	675
Operating Lease, Liability, Total	13,716
Finance Lease, Liability, Total	696
Cumulative Effect of New Accounting Standard In Period Of Adoption	(113)
Cumulative Effect on Retained Earnings, Tax	$ 42

Note 2 - Acquisition Activities (Details Textual) - USD ($) $ in Thousands		3 Months Ended
	Dec. 17, 2018	Jun. 30, 2019	Dec. 31, 2018
Goodwill, Ending Balance		$ 31,874	$ 33,823
Strobes-R-Us Inc. [Member]
Business Combination, Consideration Transferred, Total	$ 8,032
Payments to Acquire Businesses, Gross	5,200
Business Combination, Consideration Transferred, Liabilities Incurred	2,832
Goodwill, Ending Balance	4,456
Goodwill, Purchase Accounting Adjustments		$ (1,950)
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High	3,250
Business Combination, Contingent Consideration, Liability, Total	$ 2,832
Business Combination, Contingent Consideration, Liability, Discount Rate	4.70%

Note 2 - Acquisition Activities - Purchase Price Allocation (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018	Dec. 17, 2018
Goodwill, Ending Balance	$ 31,874	$ 33,823
Strobes-R-Us Inc. [Member]
Accounts receivable			$ 1,165
Inventory			893
Other current assets			3
Property, plant and equipment			1,942
Goodwill, Ending Balance			4,456
Total assets acquired			8,459
Accounts payable			382
Other current liabilities			45
Total liabilities assumed			427
Total purchase price			$ 8,032

Note 3 - Inventories - Summary of Inventories (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Finished goods	$ 16,307	$ 14,696
Work in process	10,920	5,926
Raw materials and purchased components	58,938	52,474
Reserve for slow-moving inventory	(4,100)	(3,104)
Total inventory	$ 82,065	$ 69,992

Note 4 - Debt (Details Textual) - USD ($) $ in Thousands			6 Months Ended
Note 4 - Debt (Details Textual) - USD ($) $ in Thousands	Aug. 08, 2018	Dec. 01, 2017	Jun. 30, 2019	Dec. 31, 2018
Line of Credit Facility, Current Borrowing Capacity			$ 83,356	$ 86,410
Letter of Credit [Member]
Line of Credit Facility, Maximum Borrowing Capacity			$ 20,000
Lenders [Member] \| Revolving Credit Facility [Member]
Line of Credit Facility, Maximum Borrowing Capacity	$ 150,000
Debt Instrument, Term	5 years
Line of Credit Facility, Potential Increase Borrowing Capacity	$ 75,000
Debt Instrument Reference Rate Term	30 days
Debt Instrument, Interest Rate During Period			3.6875%
Lenders [Member] \| Revolving Credit Facility [Member] \| Fed Funds Effective Rate Overnight Index Swap Rate [Member]
Debt Instrument, Basis Spread on Variable Rate	0.50%
Lenders [Member] \| Revolving Credit Facility [Member] \| London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument, Basis Spread on Variable Rate	1.00%		1.25%
Lenders [Member] \| Letter of Credit [Member]
Line of Credit Facility, Maximum Borrowing Capacity	$ 20,000
Lenders [Member] \| Swing Line Loans [Member]
Line of Credit Facility, Maximum Borrowing Capacity	$ 15,000
Wells Fargo, JPMorgan Chase Bank, N.A.and PNC Bank [Member] \| Revolving Credit Facility [Member]
Line of Credit Facility, Maximum Borrowing Capacity		$ 100,000
Debt Instrument, Term		3 years
Debt Instrument, Basis Spread on Variable Rate	0.50%
Wells Fargo, JPMorgan Chase Bank, N.A.and PNC Bank [Member] \| Revolving Credit Facility [Member] \| London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument, Basis Spread on Variable Rate	1.00%

Note 4 - Debt - Schedule of Long-term Debt (Details) - USD ($)
$ in Thousands

Jun. 30, 2019

Dec. 31, 2018

Line of credit revolver (1)

^[1]

$ 20,460

$ 25,460

Capital lease obligations

147

Finance Lease, Liability, Total

667

Total debt

21,127

25,607

Less current portion of long-term debt

(213)

(60)

Total long-term debt

$ 20,914

$ 25,547

[1]

On August 8, 2018, we entered into a Credit Agreement (the "Credit Agreement") by and among us and certain of our subsidiaries as borrowers, Wells Fargo Bank, N.A., as administrative agent ("Wells Fargo"), and the lenders party thereto consisting of Wells Fargo, JPMorgan Chase Bank, N.A. and PNC Bank National Association (the "Lenders"). Under the Credit Agreement, we may borrow up to $150,000 from the Lenders under a five-year secured revolving credit facility. The credit facility matures August 8, 2023. We may also request an increase in the facility of up to $75,000 in the aggregate, subject to customary conditions. The credit facility is also available for the issuance of letters of credit of up to $20,000 and swing line loans of up to $15,000, subject to certain limitations and restrictions. This line carries an interest rate of either (i) the highest of prime rate, the federal funds effective rate from time to time plus 0.5%, or the one month adjusted LIBOR plus 1.0%; or (ii) adjusted LIBOR plus margin based upon our ratio of debt to earnings from time to time. The applicable borrowing rate including margin was 3.6875% (or one-month LIBOR plus 1.25%) at June 30, 2019. The credit facility is secured by security interests in, and liens on, all assets of the borrowers, other than real property and certain other excluded assets. On December 1, 2017, we entered into a First Amendment to the Second Amended and Restated Credit Agreement (the "First Credit Agreement") by and among us and certain of our subsidiaries, as borrowers, Wells Fargo, National Association, as agent, and the lenders party thereto consisting of Wells Fargo, National Association, JPMorgan Chase Bank, N.A. and PNC Bank National Association. Under the First Credit Agreement, we were able to borrow up to $100,000 under a three-year unsecured revolving credit facility. The First Credit Agreement was paid off and terminated when the "Credit Agreement" described above was entered into on August 8, 2018. This line carried an interest rate of the higher of either (i) the highest of prime rate, the federal funds effective rate plus 0.5%, or the one month adjusted LIBOR plus 1.00%; or (ii) adjusted LIBOR plus margin based upon our ratio of debt to earnings from time to time.

- Definition

The carrying value as of the balance sheet date of the current and noncurrent portions of long-term obligations drawn from a line of credit, which is a bank's commitment to make loans up to a specific amount. Examples of items that might be included in the application of this element may consist of letters of credit, standby letters of credit, and revolving credit arrangements, under which borrowings can be made up to a maximum amount as of any point in time conditional on satisfaction of specified terms before, as of and after the date of drawdowns on the line. Includes short-term obligations that would normally be classified as current liabilities but for which (a) postbalance sheet date issuance of a long term obligation to refinance the short term obligation on a long term basis, or (b) the enterprise has entered into a financing agreement that clearly permits the enterprise to refinance the short-term obligation on a long term basis and the following conditions are met (1) the agreement does not expire within 1 year and is not cancelable by the lender except for violation of an objectively determinable provision, (2) no violation exists at the BS date, and (3) the lender has entered into the financing agreement is expected to be financially capable of honoring the agreement.

+ References + Details

Note 5 - Revenue (Details Textual)
$ in Thousands

Jun. 30, 2019

USD ($)

Short-term Contract with Customer [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-07-01

$ 495,461

Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period

$ 493,790

^[1]

1 year

Extended Warranties [Member] | Short-term Contract with Customer [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-07-01

Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period

$ 246

1 year

Extended Warranties [Member] | Short-term Contract with Customer [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-07-01

Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period

$ 621

1 year

Roadside Assistance Contract [Member] | Short-term Contract with Customer [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-07-01

Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period

$ 36

1 year

Roadside Assistance Contract [Member] | Short-term Contract with Customer [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-07-01

Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period

$ 26

1 year

[1]	Revenue above includes amounts related to extended warranties and roadside assistance contracts of $246 and $36 for one to 12 months and $621 and $26 for 13 months and beyond, respectively.

Note 5 - Revenue - Contract Assets and Liabilities (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2019 USD ($)
Opening balance, contract assets	$ 36,027
Reclassification of the beginning contract assets to receivables, as the result of rights to consideration becoming unconditional	(41,058)
Contract assets recognized, net of reclassification to receivables	51,108
Net change, contract assets	10,050
Ending balance, contract assets	46,077
Opening balance, contract liabilities	22,632
Reclassification of the beginning contract liabilities to revenue, as the result of performance obligations satisfied	(26,768)
Cash received in advance and not recognized as revenue	23,272
Net change, contract liabilities	(3,496)
Ending balance, contract liabilities	$ 19,136

Note 5 - Revenue - Revenue Expected to Be Recognized 2 (Details)
$ in Thousands

Jun. 30, 2019

USD ($)

Short-term Contract with Customer [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-07-01

$ 495,461

Long-term Contract with Customer [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-07-01

493,790

^[1]

Fleet Vehicles and Services [Member]

1,671

^[1]

Fleet Vehicles and Services [Member] | Short-term Contract with Customer [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-07-01

272,399

Fleet Vehicles and Services [Member] | Long-term Contract with Customer [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-07-01

272,399

^[1]

Emergency Response Vehicles [Member]

^[1]

Emergency Response Vehicles [Member] | Short-term Contract with Customer [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-07-01

190,583

Emergency Response Vehicles [Member] | Long-term Contract with Customer [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-07-01

188,938

^[1]

Specialty Chassis and Vehicles [Member]

1,645

^[1]

Specialty Chassis and Vehicles [Member] | Short-term Contract with Customer [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-07-01

32,479

Specialty Chassis and Vehicles [Member] | Long-term Contract with Customer [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-07-01

32,453

^[1]