UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): May 4, 2017

SPARTAN MOTORS, INC.
(Exact Name of Registrant as Specified in Its Charter)

Michigan
(State or Other Jurisdiction
of Incorporation)	0-13611
(Commission File No.)	38-2078923
(IRS Employer
Identification No.)	

1541 Reynolds Road, Charlotte, Michigan
(Address of Principal Executive Offices)	48813
(Zip Code)	

517-543-6400
(Registrant's Telephone Number, Including Area Code)

Not Applicable
(Former Name or Former Address, if changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
☐	Written communications pursuant to Rule 425 under the Section Act (17 CFR 230.425)	
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)	
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))	
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))	
 
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.
 
Emerging growth company  ☐
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

 
 
Item 2.02     Results of Operations and Financial Condition
 
On May 4, 2017, Spartan Motors, Inc. issued a press release announcing its financial results for the quarter ended March 31, 2017, along with an accompanying investor presentation. Copies of the press release and investor presentation are attached to this Current Report as Exhibits 99.1 and 99.2.
 
The information in this Item 2.02 and the attached Exhibits 99.1 and 99.2 shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.

 
Item 9.01     Financial Statements and Exhibits
 
(d)      Exhibits
 
 	99.1	Press Release dated May 4, 2017 regarding the financial results for the quarter ended March 31, 2017.	
 	99.2	Investor presentation dated May 4, 2017 regarding the financial results for the quarter ended March 31, 2017.	

 

 

SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 	SPARTAN MOTORS, INC.	 	

Dated: May 4, 2017	 	/S/ Frederick J. Sohm	 	
 	 	By:  Frederick J. Sohm	 	
 	 	Its:   Chief Financial Officer and Treasure	 	

Exhibit 99.1

 
Spartan Motors Reports First Quarter 2017 Results

CHARLOTTE, Mich., May 4, 2017 - Spartan Motors, Inc. (NASDAQ: SPAR) (“Spartan” or the “Company”), a global leader in specialty chassis and vehicle design, manufacturing and assembly, today reported operating results for the first quarter ending March 31, 2017.

FirstQuarter 2017 Highlights
 
For the first quarter of 2017 compared to the first quarter of 2016:
 
●	Sales increased 24.9% to $167.1 million from $133.7 million and reflects $35.2 million in sales from the Smeal Fire Apparatus acquisition, which excludes $5.5 million of Spartan inter-company chassis sales	
 
●	Net income declined $1.6 million to a loss of $1.1 million, or $0.03 per share, from income of $0.5 million, or $0.02 per share, reflecting $2.6 million of acquisition and restructuring related expenses compared to $0.3 million a year ago	
 
●	Adjusted net income rose 142.1% to $1.3 million, or $0.04 per share, from $0.5 million, or $0.02 per share	
 
●	Adjusted EBITDA increased 45.7% to $4.2 million, or 2.5% of sales, from $2.9 million, or 2.1% of sales	
 
●	Backlog increased $101.8 million to $351.3 million at March 31, 2017 from $249.5 million at December 31, 2016 and reflects $78.6 million in backlog from the Smeal Fire Apparatus acquisition	
 
●	Cash increased 10.6% to $35.4 million at March 31, 2017 compared to $32.0 million at December 31, 2016	

“We are very pleased with the operating results achieved for the quarter. On an adjusted basis, this marks our fifth profitable quarter in a row,” said Daryl Adams, President and Chief Executive Officer. “Our solid performance was driven by the continued operational improvements we have made in labor and manufacturing productivity, as a result of implementing the Spartan Production System, lean manufacturing and continuous improvement initiatives.”

Fleet Vehicles and Services (FVS)
 
FVS segment sales decreased 9.1% to $53.9 million from $59.3 million. The revenue decline was primarily due to lower volume at vehicle up-fit centers.
 
Adjusted EBITDA decreased $0.3 million to $6.2 million, or 11.6% of sales, from $6.5 million, or 10.9% of sales, a year ago. Unfavorable mix resulted in the decrease in adjusted EBITDA compared to last year. Despite this decrease, EBITDA margin increased 70 basis points reflecting improved labor and manufacturing productivity.
 
The Segment backlog at March 31, 2017 totaled $114.0 million compared to $89.5 million at December 31, 2016.

Specialty Chassis & Vehicles (SCV)
 
SCV segment sales remained comparable at $33.0 million. Revenues were impacted by a defense order that did not reoccur in 2017.
 
Adjusted EBITDA decreased 3.9% to $1.5 million, or 4.7% of sales, from $1.6 million, or 4.8% of sales, a year ago, mainly due to a defense order that did not reoccur in 2017.
 
The Segment backlog at March 31, 2017 totaled $22.8 million compared to $20.1 million at December 31, 2016.
 
Spartan Motors, Inc.

 
 
Emergency Response (ER)
 
ER segment sales increased $39.1 million to $80.2 million, or 95.1%, from $41.1 million. The Smeal acquisition contributed $35.2 million of the increase (excludes $5.5 million of Spartan inter-company chassis sales), offset by fewer shipments of complete fire apparatus and custom cab and chassis compared to a year ago, as the Company continues to focus on profitable sales.
 
Adjusted EBITDA improved $1.8 million, to a loss of $1.3 million from a loss of $3.1 million a year ago. The improvement was primarily the result of improved quality, increased labor efficiencies and manufacturing productivity.
 
The Segment backlog at March 31, 2017 totaled $214.5 million compared to $139.9 million at December 31, 2016, and reflects $78.6 million in backlog from Smeal Fire Apparatus.

Acquisition Update
 
As previously announced, the Company completed the acquisition of Smeal Fire Apparatus Co. (“Smeal”) and its subsidiaries effective January 1, 2017. Smeal, an industry-leading innovator and manufacturer of fire apparatus in North America, generated first quarter 2017 revenues of $35.2 million (excludes $5.5 million of Spartan inter-company chassis sales). Smeal is expected to generate approximately $105 million in sales, excluding inter-company shipments, during 2017.
 
The Company results for the 2017 first quarter include approximately $2.6 million, or $0.07 per share of acquisition and restructuring related adjustments and expenses.
 
“Our team has been working tirelessly and our Smeal integration efforts are running ahead of schedule and are already generating positive outcomes,” continued Adams. “Not only have we identified more synergistic opportunities than originally anticipated, we are also experiencing significantly increased interest and excitement in our expanded product portfolio from our dealers and customers. We are excited to share that not only do we have the right team in place to make these integration efforts successful, we’re also applying lessons learned and documenting the process required for future acquisitions. These developments further abbreviate the timeline needed to accelerate the turnaround of the Emergency Response business and it remains on track to return to profitability on an adjusted basis in 2017.”

Raising 2017 Guidance
 
“Our strong first quarter performance reflects the favorable impact of successfully implementing lean manufacturing, continuous improvement initiatives across all production facilities and the Smeal integration that is ahead of schedule,” said Rick Sohm, Chief Financial Officer of Spartan Motors. “Looking ahead to the remainder of the year, we expect to see continued year-over-year operational improvements and additional synergies realized from the Smeal integration, which gives us comfort in raising the 2017 guidance.”
 
Outlook for the full year 2017 is now expected to be as follows:
 
 	●	Revenue of $650.0 - $700.0 million, up from previous guidance of $615.0 - $685.0 million	
 	●	Restructuring, acquisition costs and inter-company chassis impact of approximately $3.2 million, net of tax, up from previous guidance of $2.8 million	
 	●	Adjusted EBITDA of $26.5 - $29.0 million, up from previous guidance of $25.1 - $28.3 million	
 	●	Income tax expense of $1.5 - $2.3 million, down from previous guidance of $1.7 - $2.8 million	
 	●	Interest expense of approximately $0.8 million, down from previous guidance of $1.0 million	
 	●	Adjusted earnings per share of $0.36 - $0.41, up from previous guidance of $0.30 - $0.36, assuming approximately 35.0 million shares outstanding, up from previous guidance of 34.8 million shares	
 
Page 2 of 10

 
 
“The confidence you see from the Spartan team is undeniable. Not only have we made marked improvements toward the Emergency Response business’ turnaround and condensed its associated timeline, we’ve realized additional synergies and in short order have simultaneously managed to improve our base business. There is a drum beat driving this quarter-by-quarter profitability, and it’s not going to stop here. I am incredibly excited to share that confidence with our shareholder community in the form of increased guidance. The progress you see to date as we execute on the Smeal integration plan is only the beginning,” Adams concluded.
 
Conference Call, Webcast, Investor Presentation and Investor Information
Spartan Motors will host a conference call for analysts and portfolio managers at 10 a.m. EDT today to discuss these results and current business trends. The conference call and webcast will be available via:
Webcast: www.spartanmotors.com (Click on “Investor Relations” then “Webcasts”)
Conference Call: 1-844-868-8845 (domestic) or 412-317-6591 (international); passcode: 10105698
 
For more information about Spartan, please visit www.spartanmotors.com.
 
About Spartan Motors
Spartan Motors, Inc. is a leading designer, engineer, manufacturer and marketer of a broad range of specialty vehicles, specialty chassis, vehicle bodies and parts for the fleet and delivery, recreational vehicle (RV), emergency response, defense forces and contract assembly (light/medium duty truck) markets. The Company's brand names - Spartan Motors, Spartan Specialty Vehicles, Spartan Emergency Response, Spartan Parts and Accessories, Smeal and its family of brands, including Ladder Tower and UST®; and Utilimaster®, a Spartan Motors Company - are known for quality, durability, performance, customer service and first-to-market innovation. The Company employs approximately 2,200 associates, and operates facilities in Michigan, Indiana, Pennsylvania, Missouri, Wisconsin, Nebraska, South Dakota; Saltillo, Mexico; and Lima, Peru. Spartan reported sales of $591 million in 2016. Visit Spartan Motors at  www.spartanmotors.com .
 
This release contains several forward-looking statements that are not historical facts, including statements concerning our business, strategic position, financial projections, financial strength, future plans, objectives, and the performance of our products and operations. These statements can be identified by words such as "believe," "expect," "intend," "potential," "future," "may," "will," "should," and similar expressions regarding future expectations. These forward-looking statements involve various known and unknown risks, uncertainties, and assumptions that are difficult to predict with regard to timing, extent, and likelihood. Therefore, actual performance and results may materially differ from what may be expressed or forecasted in such forward-looking statements. Factors that could contribute to these differences include operational and other complications that may arise affecting the implementation of our plans and business objectives; continued pressures caused by economic conditions and the pace and extent of the economic recovery; challenges that may arise in connection with the integration of new businesses or assets we acquire or the disposition of assets; restructuring of our operations, and/or our expansion into new geographic markets; issues unique to government contracting, such as competitive bidding processes, qualification requirements, and delays or changes in funding; disruptions within our dealer network; changes in our relationships with major customers, suppliers, or other business partners, including Isuzu; changes in the demand or supply of products within our markets or raw materials needed to manufacture those products; and changes in laws and regulations affecting our business. Other factors that could affect outcomes are set forth in our Annual Report on Form 10-K and other filings we make with the Securities and Exchange Commission (SEC), which are available at www.sec.gov  or our website. All forward-looking statements in this release are qualified by this paragraph. Investors should not place undue reliance on forward-looking statements as a prediction of actual results. We undertake no obligation to publicly update or revise any forward-looking statements in this release, whether as a result of new information, future events, or otherwise.
 
CONTACT:
 
Rick Sohm
Chief Financial Officer
Spartan Motors, Inc.
(517) 543-6400	Juris Pagrabs
Group Treasurer & IR
Spartan Motors, Inc.
(517) 997-3862	
 
Page 3 of 10

 
 
Spartan Motors, Inc. and Subsidiaries
Consolidated Balance Sheets
(In thousands, except per share data)
 
 	 	March 31, 2017	 	 	December 31,	 	
 	 	(Unaudited)	 	 	2016	 	
ASSETS	 	 	 	 	 	 	 	 	
Current assets:	 	 	 	 	 	 	 	 	
Cash and cash equivalents	 	$	35,412	 	 	$	32,041	 	
Accounts receivable, less allowance of $300 and $487	 	 	64,189	 	 	 	65,441	 	
Inventories	 	 	109,153	 	 	 	58,896	 	
Income taxes receivable	 	 	-	 	 	 	1,287	 	
Other current assets	 	 	5,318	 	 	 	4,526	 	
Total current assets	 	 	214,072	 	 	 	162,191	 	
 	 	 	 	 	 	 	 	 	
Property, plant and equipment, net	 	 	58,134	 	 	 	53,116	 	
Goodwill	 	 	25,630	 	 	 	15,961	 	
Intangible assets, net	 	 	10,071	 	 	 	6,385	 	
Other assets	 	 	2,675	 	 	 	2,331	 	
Net deferred tax asset	 	 	3,227	 	 	 	3,310	 	
TOTAL ASSETS	 	$	313,809	 	 	$	243,294	 	
 	 	 	 	 	 	 	 	 	
LIABILITIES AND SHAREHOLDERS' EQUITY	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	
Current liabilities:	 	 	 	 	 	 	 	 	
Accounts payable	 	$	35,890	 	 	$	31,336	 	
Accrued warranty	 	 	20,191	 	 	 	19,334	 	
Accrued compensation and related taxes	 	 	8,353	 	 	 	13,188	 	
Deposits from customers	 	 	48,692	 	 	 	16,142	 	
Other current liabilities and accrued expenses	 	 	11,143	 	 	 	7,659	 	
Current portion of long-term debt	 	 	63	 	 	 	65	 	
Total current liabilities	 	 	124,332	 	 	 	87,724	 	
 	 	 	 	 	 	 	 	 	
Other non-current liabilities	 	 	4,908	 	 	 	2,544	 	
Long-term debt, less current portion	 	 	32,860	 	 	 	74	 	
Total liabilities	 	 	37,768	 	 	 	90,342	 	
Commitments and contingencies	 	 	 	 	 	 	 	 	
Shareholders' equity:	 	 	 	 	 	 	 	 	
Preferred stock, no par value: 2,000 shares authorized (none issued)	 	 	-	 	 	 	-	 	
Common stock, $0.01 par value; 40,000 shares authorized; 35,123 and 34,383 outstanding	 	 	351	 	 	 	344	 	
Additional paid in capital	 	 	76,686	 	 	 	76,837	 	
Retained earnings	 	 	75,330	 	 	 	76,428	 	
Total Spartan Motors, Inc. shareholders’ equity	 	 	152,367	 	 	 	153,609	 	
Non-controlling interest	 	 	(658	)	 	 	(657	)	
Total shareholders’ equity	 	 	151,709	 	 	 	152,952	 	
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	 	$	313,809	 	 	$	243,294	 	
 
Page 4 of 10

 
 
Spartan Motors, Inc. and Subsidiaries
Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
 
 	 	Three Months Ended March 31,	 	
 	 	2017	 	 	% of
sales	 	 	2016	 	 	% of
sales	 	
Sales	 	$	167,075	 	 	 	 	 	 	$	133,726	 	 	 	 	 	
Cost of products sold	 	 	150,531	 	 	 	90.1	 	 	 	117,906	 	 	 	88.2	 	
Restructuring charges	 	 	150	 	 	 	0.1	 	 	 	-	 	 	 	0.0	 	
Gross profit	 	 	16,394	 	 	 	9.8	 	 	 	15,820	 	 	 	11.8	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating expenses:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Research and development	 	 	2,142	 	 	 	1.3	 	 	 	1,224	 	 	 	0.9	 	
Selling, general and administrative	 	 	14,602	 	 	 	8.7	 	 	 	13,566	 	 	 	10.1	 	
Restructuring charges	 	 	492	 	 	 	0.3	 	 	 	339	 	 	 	0.3	 	
Total operating expenses	 	 	17,236	 	 	 	10.3	 	 	 	15,129	 	 	 	11.3	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating income (loss)	 	 	(842	)	 	 	(0.5	)	 	 	691	 	 	 	0.5	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other income (expense):	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest expense	 	 	(264	)	 	 	(0.2	)	 	 	(114	)	 	 	(0.1	)	
Interest and other income	 	 	90	 	 	 	0.1	 	 	 	59	 	 	 	0.0	 	
Total other income (expense)	 	 	(174	)	 	 	(0.1	)	 	 	(55	)	 	 	0.0	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income (loss) before taxes	 	 	(1,016	)	 	 	(0.6	)	 	 	636	 	 	 	0.5	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Taxes	 	 	83	 	 	 	0.0	 	 	 	93	 	 	 	0.1	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss)	 	 	(1,099	)	 	 	(0.7	)	 	 	543	 	 	 	0.4	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Less: Net income (loss) attributable to non-controlling interest	 	 	(1	)	 	 	0.0	 	 	 	-	 	 	 	0.0	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss) attributable to Spartan Motors, Inc.	 	$	(1,098	)	 	 	(0.7	)	 	$	543	 	 	 	0.4	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic and diluted net income (loss) per share	 	$	( 0.03	)	 	 	 	 	 	$	0.02	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic and diluted weighted average common shares outstanding	 	 	33,725	 	 	 	 	 	 	 	34,280	 	 	 	 	 	
 
Page 5 of 10

 
 
 Spartan Motors, Inc. and Subsidiaries	
Sales and Other Financial Information by Business Segment	
(Unaudited)	
 
Three Months Ended March 31, 2017 (in thousands of dollars)	
 
 	 	Business Segments	 	 	 	 	 	 	 	 	 	
 	 	Emergency
Response	 	 	Fleet
Vehicles
and
Services	 	 	Specialty
Chassis
&Vehicles	 	 	Other	 	 	Consolidated	 	
Emergency response vehicle sales	 	$	77,985	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	77,985	 	
Fleet vehicle sales	 	 	-	 	 	 	43,142	 	 	 	-	 	 	 	-	 	 	 	43,142	 	
Motorhome chassis sales	 	 	-	 	 	 	-	 	 	 	26,084	 	 	 	-	 	 	 	26,084	 	
Other specialty chassis and vehicles	 	 	-	 	 	 	-	 	 	 	4,822	 	 	 	-	 	 	 	4,822	 	
Aftermarket parts and assemblies	 	 	2,217	 	 	 	10,778	 	 	 	2,047	 	 	 	-	 	 	 	15,042	 	
Total Sales	 	$	80,202	 	 	$	53,920	 	 	$	32,953	 	 	$	-	 	 	$	167,075	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Adjusted EBITDA	 	$	(1,337	)	 	$	6,244	 	 	$	1,533	 	 	$	(2,251	)	 	$	4,189	 	

Spartan Motors, Inc. and Subsidiaries	
Sales and Other Financial Information by Business Segment	
(Unaudited)	
 
Three Months Ended March 31, 2016 (in thousands of dollars)	
 
 	 	Business Segments	 	 	 	 	 	 	 	 	 	
 	 	Emergency
Response	 	 	Fleet
Vehicles
and
Services	 	 	Specialty
Chassis
&Vehicles	 	 	Other	 	 	Consolidated	 	
Emergency response vehicle sales	 	$	39,384	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	39,384	 	
Fleet vehicle sales	 	 	-	 	 	 	40,305	 	 	 	-	 	 	 	-	 	 	 	40,305	 	
Motorhome chassis sales	 	 	-	 	 	 	-	 	 	 	26,431	 	 	 	-	 	 	 	26,431	 	
Other specialty chassis and vehicles	 	 	-	 	 	 	-	 	 	 	4,405	 	 	 	-	 	 	 	4,405	 	
Aftermarket parts and assemblies	 	 	1,754	 	 	 	18,987	 	 	 	2,460	 	 	 	-	 	 	 	23,201	 	
Total Sales	 	$	41,138	 	 	$	59,292	 	 	$	33,296	 	 	$	-	 	 	$	33,726	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Adjusted EBITDA	 	$	(3,119	)	 	$	6,462	 	 	$	1,595	 	 	$	(2,063	)	 	$	2,875	 	
 
Page 6 of 10

 
 
Spartan Motors, Inc. and Subsidiaries	
Sales and Other Financial Information by Business Segment	
(Unaudited)	
 
Period End Backlog (amounts in thousands of dollars) 	
 
 	 	Mar. 31,
2017	 	 	Dec. 31,
2016	 	 	Sept. 30,
2016	 	 	June 30,
2016	 	 	Mar. 31,
2016	 	
Emergency Response Vehicles*	 	$	214,463	 	 	$	139,870	 	 	$	149,752	 	 	$	152,177	 	 	$	160,392	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Fleet Vehicles and Services*	 	 	113,960	 	 	 	89,549	 	 	 	102,218	 	 	 	139,655	 	 	 	137,717	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Motorhome Chassis *	 	 	21,772	 	 	 	18,749	 	 	 	19,114	 	 	 	11,197	 	 	 	16,235	 	
Other Vehicles	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	 	 	3,737	 	
Aftermarket Parts and Assemblies	 	 	1,075	 	 	 	1,288	 	 	 	1,012	 	 	 	1,005	 	 	 	815	 	
Total Specialty Chassis & Vehicles	 	 	22,847	 	 	 	20,037	 	 	 	20,126	 	 	 	12,202	 	 	 	20,787	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Backlog	 	$	351,270	 	 	$	249,546	 	 	$	272,096	 	 	$	304,034	 	 	$	318,896	 	
 
* Anticipated time to fill backlog orders at March 31, 2017; 13 months or less for emergency response vehicles; 3 months or less for motorhome chassis; 7 months or less for fleet vehicles and services; and 1 month or less for other products.	
 
Reconciliation of Non-GAAP Financial Measures
This release contains Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization), adjusted net income attributable to Spartan Motors, Inc., adjusted earnings per share, forecasted Adjusted EBITDA, and forecasted adjusted earnings per share, which are all Non-GAAP financial measures. Our management uses Adjusted EBITDA to evaluate the performance of and allocate resources to our segments. These non-GAAP measures are calculated by excluding items that we believe to be infrequent or not indicative of our operating performance. For the periods covered by this release such items consist of expenses associated with restructuring actions taken to improve the efficiency and profitability of certain of our manufacturing operations, expenses related to a recent business acquisition, the impact of the step-up in inventory value associated with the recent business acquisition, and the impact of the business acquisition on the timing of chassis revenue recognition. We present these adjusted Non-GAAP measures because we consider them to be important supplemental measures of our performance and believe them to be useful to improve the comparability of our results from period to period and with our competitors, as well as to show ongoing results from operations distinct from items that are infrequent or not indicative of our operating performance.
 
The adjusted Non-GAAP measures are not measurements of our financial performance under GAAP and should not be considered as an alternative to net income attributable to Spartan Motors, Inc. or earnings per share under GAAP. These adjusted Non-GAAP measures have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. In addition, in evaluating the adjusted Non-GAAP measures, you should be aware that in the future we may incur expenses similar to the adjustments in this presentation, despite our assessment that such expenses are infrequent or not indicative of our operating performance. Our presentation of the adjusted Non-GAAP measures should not be construed as an inference that our future results will be unaffected by unusual or infrequent items. We compensate for these limitations by providing equal prominence of our GAAP results and using adjusted Non-GAAP measures only as a supplement.
 
The following tables reconcile net income (loss) attributable to Spartan Motors, Inc. to Adjusted EBITDA, net income (loss) attributable to Spartan Motors, Inc. to adjusted net income (loss) attributable to Spartan Motors Inc., earnings (loss) per share to adjusted earnings per share, forecasted net income attributable to Spartan Motors, Inc. to Adjusted EBITDA and forecasted earnings (loss) per share to adjusted earnings (loss) per share for the periods indicated.
 
Page 7 of 10

 
 
Financial Summary (Non-GAAP)	
Consolidated	
(In thousands, except per share data)	
(Unaudited)	
 
 	 	Three Months Ended March 31,	 	
Spartan Motors, Inc.	 	2017	 	 	% of
sales	 	 	2016	 	 	% of
sales	 	
Net income (loss) attributable to Spartan Motors, Inc.	 	$	(1,098	)	 	 	-0.7	%	 	$	543	 	 	 	0.4	%	
Add (subtract):	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Restructuring charges	 	 	642	 	 	 	 	 	 	 	339	 	 	 	 	 	
Impact of acquisition on timing of chassis revenue recognition	 	 	1,112	 	 	 	 	 	 	 	-	 	 	 	 	 	
Impact of step-up in inventory value resulting from acquisition	 	 	189	 	 	 	 	 	 	 	-	 	 	 	 	 	
Acquisition related expenses	 	 	672	 	 	 	 	 	 	 	 	 	 	 	 	 	
Deferred tax asset valuation allowance	 	 	466	 	 	 	 	 	 	 	(235	)	 	 	 	 	
Tax effect of adjustments	 	 	(719	)	 	 	 	 	 	 	(125	)	 	 	 	 	
Adjusted net income attributable to Spartan Motors, Inc.	 	$	1,264	 	 	 	0.8	%	 	$	522	 	 	 	0.4	%	

Net income (loss) attributable to Spartan Motors, Inc.	 	$	(1,098	)	 	 	-0.7	%	 	$	543	 	 	 	0.4	%	
Add (subtract):	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Depreciation and amortization	 	 	2,325	 	 	 	 	 	 	 	1,786	 	 	 	 	 	
Taxes on income	 	 	83	 	 	 	 	 	 	 	93	 	 	 	 	 	
Interest expense	 	 	264	 	 	 	 	 	 	 	114	 	 	 	 	 	
EBITDA	 	$	1,574	 	 	 	0.9	%	 	$	2,536	 	 	 	1.9	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Add (subtract):	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Restructuring charges	 	 	642	 	 	 	 	 	 	 	339	 	 	 	 	 	
Impact of acquisition on timing of chassis revenue recognition	 	 	1,112	 	 	 	 	 	 	 	-	 	 	 	 	 	
Impact of step-up in inventory value resulting from acquisition	 	 	189	 	 	 	 	 	 	 	-	 	 	 	 	 	
Acquisition related expenses	 	 	672	 	 	 	 	 	 	 	-	 	 	 	 	 	
Adjusted EBITDA	 	$	4,189	 	 	 	2.5	%	 	$	2,875	 	 	 	2.1	%	

Diluted net earnings (loss) per share	 	$	(0.03	)	 	 	 	 	 	$	0.02	 	 	 	 	 	
Add (subtract):	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Restructuring charges	 	 	0.02	 	 	 	 	 	 	 	0.01	 	 	 	 	 	
Impact of acquisition on timing of chassis revenue recognition	 	 	0.03	 	 	 	 	 	 	 	-	 	 	 	 	 	
Impact of step-up in inventory value resulting from acquisition	 	 	0.01	 	 	 	 	 	 	 	-	 	 	 	 	 	
Acquisition related expenses	 	 	0.02	 	 	 	 	 	 	 	-	 	 	 	 	 	
Deferred tax asset valuation allowance	 	 	0.01	 	 	 	 	 	 	 	(0.01	)	 	 	 	 	
Tax effect of adjustments	 	 	(0.02	)	 	 	 	 	 	 	-	 	 	 	 	 	
Adjusted Diluted net earnings per share	 	$	0.04	 	 	 	 	 	 	$	0.02	 	 	 	 	 	
 
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Emergency Response Vehicles Segment (Non-GAAP)	
(In thousands, unaudited)	
 
 	 	Three Months Ended March 31,	 	
 	 	2017	 	 	% of
sales	 	 	2016	 	 	% of
sales	 	
Net income (loss) attributable to Emergency Response	 	$	(3,589	)	 	 	-4.5	%	 	$	(3,664	)	 	 	-8.9	%	
Add (subtract):	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Depreciation and amortization	 	 	552	 	 	 	 	 	 	 	206	 	 	 	 	 	
Taxes on income	 	 	-	 	 	 	 	 	 	 	-	 	 	 	 	 	
Interest expense	 	 	-	 	 	 	 	 	 	 	-	 	 	 	 	 	
Earnings before interest, taxes, depreciation and amortization	 	$	(3,037	)	 	 	-3.8	%	 	$	(3,458	)	 	 	-8.4	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Earnings before interest, taxes, depreciation and amortization	 	$	(3,037	)	 	 	-3.8	%	 	$	(3,458	)	 	 	-8.4	%	
Restructuring	 	 	399	 	 	 	 	 	 	 	339	 	 	 	 	 	
Impact of acquisition on timing of chassis revenue recognition	 	 	1,112	 	 	 	 	 	 	 	-	 	 	 	 	 	
Impact of step-up in inventory value resulting from acquisition	 	 	189	 	 	 	 	 	 	 	-	 	 	 	 	 	
Adjusted earnings before interest, taxes, depreciation and amortization	 	$	(1,337	)	 	 	-1.7	%	 	$	(3,119	)	 	 	-7.6	%	

Fleet Vehicles and Services Segment (Non-GAAP)	
(In thousands, unaudited)	
 
 	 	Three Months Ended March 31,	 	
 	 	2017	 	 	% of
sales	 	 	2016	 	 	% of
sales	 	
Net income (loss) attributable to Fleet Vehicles and Services	 	$	5,225	 	 	 	9.7	%	 	$	5,544	 	 	 	9.4	%	
Add (subtract):	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Depreciation and amortization	 	 	876	 	 	 	 	 	 	 	873	 	 	 	 	 	
Taxes on income	 	 	-	 	 	 	 	 	 	 	-	 	 	 	 	 	
Interest expense	 	 	37	 	 	 	 	 	 	 	45	 	 	 	 	 	
Earnings before interest, taxes, depreciation and amortization	 	$	6,139	 	 	 	11.4	%	 	$	6,462	 	 	 	10.9	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Earnings before interest, taxes, depreciation and amortization	 	$	6,139	 	 	 	11.4	%	 	$	6,462	 	 	 	10.9	%	
Restructuring	 	 	105	 	 	 	 	 	 	 	-	 	 	 	 	 	
Adjusted earnings before interest, taxes, depreciation and amortization	 	$	6,244	 	 	 	11.6	%	 	$	6,462	 	 	 	10.9	%	

Specialty Chassis and Vehicles Segment (Non-GAAP)	
(In thousands, unaudited)	
 
 	 	Three Months Ended March 31,	 	
 	 	2017	 	 	% of
sales	 	 	2016	 	 	% of
sales	 	
Net income (loss) attributable to Specialty Chassis and Vehicles	 	$	1,127	 	 	 	3.4	%	 	$	1,480	 	 	 	4.4	%	
Add (subtract):	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Depreciation and amortization	 	 	310	 	 	 	 	 	 	 	115	 	 	 	 	 	
Taxes on income	 	 	-	 	 	 	 	 	 	 	-	 	 	 	 	 	
Interest expense	 	 	-	 	 	 	 	 	 	 	-	 	 	 	 	 	
Earnings before interest, taxes, depreciation and amortization	 	$	1,437	 	 	 	4.4	%	 	$	1,595	 	 	 	4.8	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Earnings before interest, taxes, depreciation and amortization	 	$	1,437	 	 	 	4.4	%	 	$	1,595	 	 	 	4.8	%	
Restructuring	 	 	96	 	 	 	 	 	 	 	-	 	 	 	 	 	
Adjusted earnings before interest, taxes, depreciation and amortization	 	$	1,533	 	 	 	4.7	%	 	$	1,595	 	 	 	4.8	%	
 
Page 9 of 10

 
 
FINANCIAL SUMMARY (Non-GAAP)	
CONSOLIDATED	
(In thousands, except per share data)	
(Unaudited)	
 
 	 	Forecast
Year Ending December 31, 2017	 	
 	 	Low	 	 	Mid	 	 	High	 	
Net income	 	$	10,300	 	 	$	11,150	 	 	$	12,000	 	
Add:	 	 	 	 	 	 	 	 	 	 	 	 	
Depreciation and amortization	 	 	10,741	 	 	 	10,741	 	 	 	10,741	 	
Interest expense	 	 	800	 	 	 	800	 	 	 	800	 	
Taxes	 	 	1,500	 	 	 	1,900	 	 	 	2,300	 	
EBITDA	 	 	23,341	 	 	 	24,591	 	 	 	25,841	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Add (subtract):	 	 	 	 	 	 	 	 	 	 	 	 	
Acquisition related expenses	 	 	672	 	 	 	672	 	 	 	672	 	
Chassis shipment delay	 	 	2,487	 	 	 	2,487	 	 	 	2,487	 	
Adjusted EBITDA	 	$	26,500	 	 	$	27,750	 	 	$	29,000	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Earnings per share	 	$	0.29	 	 	$	0.32	 	 	$	0.34	 	
Add:	 	 	 	 	 	 	 	 	 	 	 	 	
Acquisition related expenses	 	 	0.02	 	 	 	0.02	 	 	 	0.02	 	
Chassis shipment delay	 	 	0.07	 	 	 	0.07	 	 	 	0.07	 	
Less tax effect of adjustments	 	 	(0.02	)	 	 	(0.02	)	 	 	(0.02	)	
Adjusted earnings per share	 	$	0.36	 	 	$	0.39	 	 	$	0.41	 	
 
###

Page 10 of 10

Exhibit 99.2