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): February 23, 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))	

 
 
Item 2.02     Results of Operations and Financial Condition
 
On February 23, 2017, Spartan Motors, Inc. issued a press release announcing its financial results for the quarter and year ended December 31, 2016, 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 February 23, 2017 regarding the financial results for the quarter and year ended December 31, 2016.	
 	99.2	Investor presentation dated February 23, 2017 regarding the financial results for the quarter and year ended December 31, 2016.	

 

 
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: February 23, 2017 	 	/S/ Frederick J. Sohm                 	 	 	
 	 	By: Frederick J. Sohm	 	 	
 	 	Its: Chief Financial Officer and Treasurer	 	 	

2

Exhibit 99.1

 	
 
Spartan Motors Delivers Strong Fourth Quarter and Full Year 2016 Results
 
 	●	Full Year Net Income Increased 151% to $8.6 Million, or $0.25 Per Share	
 	●	Fourth Quarter Net Income Up 110% to $0.9 Million, or $0.03 Per Share	

CHARLOTTE, Mich., February 23, 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 fourth quarter and full year periods ending December 31, 2016.
 
Full Year 2016 Highlights
 
For the full year 2016 compared to the full year 2015:
 
●	Sales increased $40.4 million, or 7.3%, to $590.8 million from $550.4 million	
 
●	Gross profit margin improved 370 basis points to 12.3% of sales from 8.6% of sales	
 
●	Operating income rose $21.1 million, or 169.1%, to $8.6 million from an operating loss of $12.5 million	
 
●	Adjusted operating income increased 222.1 % to $14.5 million, or 2.5% of sales, from $4.5 million, or 0.8% of sales	
 
●	Net income improved $25.6 million, or 150.7%, to $8.6 million, or $0.25 per share, from a net loss of $17.0 million, or $0.50 per share	
 
●	Adjusted net income improved 68.3% to $11.1 million, or $0.32 per share, from $6.6 million, or $0.20 per share	
 
●	Cash, net of debt increased 15.9% to $32.0 million at December 31, 2016 compared to $27.6 million at December 31, 2015	
 
Fourth Quarter 2016 Highlights
 
For the fourth quarter of 2016 compared to the fourth quarter of 2015:
 
●	Sales increased 3.7% to $145.9 million from $140.6 million	
 
●	Gross profit margin improved 850 basis points to 12.3% of sales from 3.8% of sales	
 
●	Operating income rose $11.0 million, or 109.6%, to $1.0 million from an operating loss of $10.0 million	
 
●	Adjusted operating income increased 182.6% to $1.9 million, or 1.3% of sales, from a loss of $2.3 million	
 
●	Net income improved $10.4 million, or 110.0%, to $0.9 million, or $0.03 per share, from a net loss of $9.5 million, or $0.28 per share	
 
●	Adjusted net income improved 158.9% to $1.5 million, or $0.04 per share from $0.6 million, or $0.02 per share	
 
“Spartan closed 2016, on a high note with a profitable fourth quarter performance, our fourth profitable quarter in a row,” said Daryl Adams, President and Chief Executive Officer. “While 2016 goes in the books as the strongest financial performance Spartan has had since 2009, we are most proud of the progress we have made to date, on behalf of our shareholders. Our performance in 2016 reflects great progress toward key operational milestones as the positive momentum we sparked and fanned in 2015 started to accelerate and deliver on our turnaround initiatives, some well ahead of schedule. Take a look at 2016, and you are looking at a company whose head is squarely in the game, and it is one we intend to win.”

 
Spartan Motors, Inc.

 
 
Full Year 2016 Segment Results
 
For the full year 2016 compared to the full year 2015:
 
Fleet Vehicles and Services (FVS)
 
FVS segment sales increased 22.3% to $278.4 million from $227.7 million. Revenue growth was primarily due to a favorable revenue mix and higher volume at vehicle up-fit centers.
 
Operating income increased $14.2 million, or 97.9%, to $28.7 million, or 10.3% of sales, from $14.5 million, or 6.4% of sales, a year ago. Higher volume and favorable mix resulted in an increase in operating income compared to last year.
 
The Segment backlog at December 31, 2016, totaled $89.5 million, compared to $96.1 million at December 31, 2015. In January, 2017, FVS received approximately $37.0 million in new orders, up approximately 20% over new orders received in January 2016.
 
Specialty Chassis & Vehicles (SCV)
 
SCV segment sales remained comparable at $129.4 million. Sales of motorhome chassis decreased to $98.0 million from $103.3 million, primarily due to lower shipments year-over-year. Other Specialty Vehicle revenue increased 52.2% to $21.1 million from $13.8 million, primarily due to increased contract manufacturing.
 
Operating income increased 39.5% to $6.8 million, or 5.3% of sales, from $4.9 million, or 3.8% of sales, a year ago. Favorable mix and increased contract manufacturing resulted in an increase in operating income compared to last year.   
 
The Segment backlog at December 31, 2016, totaled $20.0 million, compared to $18.4 million at December 31, 2015.
 
Emergency Response (ER)
ER segment sales decreased 5.3% to $183.0 million from $193.2 million. Lower revenue resulted from fewer shipments of complete fire apparatus and custom cab and chassis compared to a year ago.
 
Operating loss improved $10.1 million, or 42.4%, to $13.7 million from $23.7 million a year ago. The improvement was primarily the result of improved operating efficiencies and a reduction in charges recorded in 2016, compared to 2015, relating to asset impairment ($1.8 million), restructuring ($1.8 million), product repair campaign and warranty reserves ($1.6 million), and a non-recurring NHTSA fine ($0.7 million).
 
Adjusted operating loss improved $0.9 million, or 9.8%, to $8.7 million from $9.6 million last year.   
 
The Segment backlog at December 31, 2016, totaled $139.9 million, compared to $156.3 million at December 31, 2015.
 
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 2016 revenues of approximately $70 million, which excludes revenues associated with Smeal’s sale of approximately $30 million of chassis purchased from Spartan. In connection with the transaction, the cash consideration paid of approximately $32.5 million was funded primarily through borrowings from the Company’s existing $100 million line of credit.
 
Page 2 of 12

 
 
The Company results for the fourth quarter and full year ended December 31, 2016, include approximately $0.7 million, or $0.02 per share, and $0.9 million, or $0.03 per share, respectively, of acquisition related expenses.
 
“As Spartan shared from the beginning, we expect the transaction to be accretive to 2017 earnings and to further accelerate the turnaround of the Spartan Emergency Response business unit. What we could not measure at the beginning of the acquisition were the benefits we would see from a reinvigorated dealer channel and a motivated workforce,” continued Adams. “We understood immediately how important integrating Smeal and its Ladder Tower and UST brands was going to be for the success of our combined Company. Today, we are happy to report that our dealer channel is excited about our increasingly expanding product portfolio, and our combined employees are happy and optimistic about the expanded employment opportunities a larger publically traded company brings.”   
 
2017 Outlook
“Our balance sheet at year end, with essentially zero long-term debt, remains strong,” said Rick Sohm, Chief Financial Officer of Spartan Motors. “Cash, net of debt, improved $4.4 million year-over-year to end at $32.0 million. Our strong operating results continued to generate cash in excess of our working capital requirements, which enabled us to repay our $5 million senior note and repurchase approximately 422,000 shares at an average price of $4.74 per share, or $2.0 million in the aggregate, during 2016.
 
“As we move into 2017, we will continue with a disciplined working capital management approach, as well as being opportunistic as market conditions dictate, to support future growth and maximize shareholder value. As a result of the Smeal acquisition, our 2017 forecast was adjusted for certain acquisition related costs and adjustments ($0.4 million, net of tax) and the impact from the one-time lag in recognizing sales and gross margin on chassis sales ($2.4 million, net of tax) that are now inter-company.”
 
Outlook for full year 2017 is expected to be as follows (which includes the Smeal acquisition):
 
 	●	Revenue to be in the range of $615.0 - $685.0 million	
 	●	Acquisition costs and inter-company chassis impact of approximately $2.8 million, net of tax	
 	●	Adjusted EBITDA of $25.1 - $28.3 million	
 	●	Income tax expense of $1.7 - $2.8 million	
 	●	Interest expense of approximately $1.0 million	
 	●	Adjusted earnings per share of $0.30 - $0.36, assuming approximately 34.8 million shares outstanding	
 
“Progress like Spartan has experienced in such a short amount of time took a great deal of hard work and a commitment to excellence, across the organization. Implementing key process improvement methodologies and keenly focusing on enhancing our products has gone a long way to help us ensure this success will continue. That said, we are incredibly optimistic that 2017 will bring increasingly positive outcomes to shareholders and customers alike,” Adams concluded.
 
Reconciliation of Non-GAAP Financial Measures
This release contains adjusted operating income, adjusted net income attributable to Spartan Motors, Inc., forecasted EBITDA (earnings before interest, taxes, depreciation and amortization), forecasted adjusted EBITDA, and adjusted earnings per share, which are all Non-GAAP financial measures. These 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, accruals for product recalls and regulatory settlements, non-cash asset impairment charges, expenses related to a recent business acquisition and a non-cash deferred tax asset valuation allowance. 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 show ongoing results from operations distinct from items that are infrequent or not indicative of our operating performance.
 
Page 3 of 12

 
 
The adjusted Non-GAAP measures are not measurements of our financial performance under GAAP and should not be considered as an alternative to operating income, 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 operating income (loss) to adjusted operating income (loss), net income (loss) attributable to Spartan Motors to adjusted net income (loss) attributable to Spartan Motors, forecasted net income to EBITDA and adjusted EBITDA and forecasted earnings (loss) per share to adjusted earnings (loss) per share for the periods indicated.
 
Page 4 of 12

 
 
Financial Summary (Non-GAAP)
(In thousands, except per share data)
(Unaudited)
 
 	 	Three Months Ended December 31,	 	 	Twelve Months Ended December 31,	 	
Spartan Motors, Inc.	 	2016	 	 	% of
sales	 	 	2015	 	 	% of
sales	 	 	2016	 	 	% of
sales	 	 	2015	 	 	% of
sales	 	
Operating income (loss)	 	$	965	 	 	 	0.7	%	 	$	(10,008	)	 	 	-7.1	%	 	$	8,625	 	 	 	1.5	%	 	$	(12,478	)	 	 	-2.3	%	
Add (subtract):	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Restructuring charges	 	 	224	 	 	 	 	 	 	 	427	 	 	 	 	 	 	 	1,095	 	 	 	 	 	 	 	2,855	 	 	 	 	 	
Asset impairment	 	 	-	 	 	 	 	 	 	 	-	 	 	 	 	 	 	 	406	 	 	 	 	 	 	 	2,234	 	 	 	 	 	
Product recall	 	 	-	 	 	 	 	 	 	 	6,300	 	 	 	 	 	 	 	3,457	 	 	 	 	 	 	 	8,600	 	 	 	 	 	
NHTSA settlement	 	 	-	 	 	 	 	 	 	 	-	 	 	 	 	 	 	 	-	 	 	 	 	 	 	 	2,269	 	 	 	 	 	
Joint venture expenses	 	 	1	 	 	 	 	 	 	 	982	 	 	 	 	 	 	 	13	 	 	 	 	 	 	 	1,015	 	 	 	 	 	
Acquisition related expenses	 	 	723	 	 	 	 	 	 	 	-	 	 	 	 	 	 	 	882	 	 	 	 	 	 	 	-	 	 	 	 	 	
Adjusted operating income (loss)	 	$	1,913	 	 	 	1.3	%	 	$	(2,299	)	 	 	-1.6	%	 	$	14,478	 	 	 	2.5	%	 	$	4,495	 	 	 	0.8	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss) attributable to Spartan Motors, Inc.	 	$	942	 	 	 	0.6	%	 	$	(9,450	)	 	 	-6.7	%	 	$	8,610	 	 	 	1.5	%	 	$	(16,972	)	 	 	-3.1	%	
Add (subtract):	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Restructuring charges	 	 	224	 	 	 	 	 	 	 	427	 	 	 	 	 	 	 	1,095	 	 	 	 	 	 	 	2,855	 	 	 	 	 	
Asset impairment	 	 	-	 	 	 	 	 	 	 	-	 	 	 	 	 	 	 	406	 	 	 	 	 	 	 	2,234	 	 	 	 	 	
Product recall	 	 	-	 	 	 	 	 	 	 	6,300	 	 	 	 	 	 	 	3,457	 	 	 	 	 	 	 	8,600	 	 	 	 	 	
NHTSA settlement	 	 	-	 	 	 	 	 	 	 	-	 	 	 	 	 	 	 	-	 	 	 	 	 	 	 	2,269	 	 	 	 	 	
Joint venture expenses	 	 	1	 	 	 	 	 	 	 	491	 	 	 	 	 	 	 	7	 	 	 	 	 	 	 	508	 	 	 	 	 	
Acquisition related expenses	 	 	723	 	 	 	 	 	 	 	-	 	 	 	 	 	 	 	882	 	 	 	 	 	 	 	-	 	 	 	 	 	
Deferred tax asset valuation allowance	 	 	(282	)	 	 	 	 	 	 	3,928	 	 	 	 	 	 	 	(2,932	)	 	 	 	 	 	 	9,472	 	 	 	 	 	
Tax effect of adjustments	 	 	(104	)	 	 	 	 	 	 	(1,115	)	 	 	 	 	 	 	(460	)	 	 	 	 	 	 	(2,392	)	 	 	 	 	
Adjusted net income (loss) attributable to Spartan Motors, Inc.	 	$	1,504	 	 	 	1.0	%	 	$	581	 	 	 	0.4	%	 	$	11,065	 	 	 	1.9	%	 	$	6,574	 	 	 	1.2	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Diluted net earnings (loss) per share	 	$	0.03	 	 	 	 	 	 	$	(0.28	)	 	 	 	 	 	$	0.25	 	 	 	 	 	 	$	(0.50	)	 	 	 	 	
Add (subtract):	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Restructuring charges	 	 	-	 	 	 	 	 	 	 	0.01	 	 	 	 	 	 	 	0.03	 	 	 	 	 	 	 	0.08	 	 	 	 	 	
Asset impairment	 	 	-	 	 	 	 	 	 	 	-	 	 	 	 	 	 	 	0.01	 	 	 	 	 	 	 	0.07	 	 	 	 	 	
Product recall	 	 	-	 	 	 	 	 	 	 	0.19	 	 	 	 	 	 	 	0.10	 	 	 	 	 	 	 	0.25	 	 	 	 	 	
NHTSA settlement	 	 	-	 	 	 	 	 	 	 	-	 	 	 	 	 	 	 	-	 	 	 	 	 	 	 	0.07	 	 	 	 	 	
Joint venture expenses	 	 	-	 	 	 	 	 	 	 	0.01	 	 	 	 	 	 	 	-	 	 	 	 	 	 	 	0.02	 	 	 	 	 	
Acquisition related expenses	 	 	0.02	 	 	 	 	 	 	 	-	 	 	 	 	 	 	 	0.03	 	 	 	 	 	 	 	-	 	 	 	 	 	
Deferred tax asset valuation allowance	 	 	(0.01	)	 	 	 	 	 	 	0.12	 	 	 	 	 	 	 	(0.09	)	 	 	 	 	 	 	0.28	 	 	 	 	 	
Tax effect of adjustments	 	 	-	 	 	 	 	 	 	 	(0.03	)	 	 	 	 	 	 	(0.01	)	 	 	 	 	 	 	(0.07	)	 	 	 	 	
Adjusted Diluted net earnings (loss) per share	 	$	0.04	 	 	 	 	 	 	$	0.02	 	 	 	 	 	 	$	0.32	 	 	 	 	 	 	$	0.20	 	 	 	 	 	
 
Page 5 of 12

 

Financial Summary (Non-GAAP)
(In thousands, except per share data)
(Unaudited)
 
 	 	Three Months Ended December 31,	 	 	Twelve Months Ended December 31,	 	
Emergency Response Segment	 	2016	 	 	% of sales	 	 	2015	 	 	% of sales	 	 	2016	 	 	% of sales	 	 	2015	 	 	% of sales	 	
ER segment operating (loss)	 	$	(3,750	)	 	 	-7.9	%	 	$	(12,051	)	 	 	-28.7	%	 	$	(13,660	)	 	 	-7.5	%	 	$	(23,723	)	  	 	-12.3	%	
Add (subtract):	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Restructuring charges	 	 	224	 	 	 	 	 	 	 	427	 	 	 	 	 	 	 	1,095	 	 	 	 	 	 	 	2,855	 	 	 	 	 	
Asset impairment	 	 	-	 	 	 	 	 	 	 	-	 	 	 	 	 	 	 	406	 	 	 	 	 	 	 	2,234	 	 	 	 	 	
Product recall	 	 	-	 	 	 	 	 	 	 	5,900	 	 	 	 	 	 	 	3,457	 	 	 	 	 	 	 	7,300	 	 	 	 	 	
NHTSA settlement	 	 	-	 	 	 	 	 	 	 	-	 	 	 	 	 	 	 	-	 	 	 	 	 	 	 	684	 	 	 	 	 	
Joint venture expenses	 	 	1	 	 	 	 	 	 	 	982	 	 	 	 	 	 	 	13	 	 	 	 	 	 	 	1,015	 	 	 	 	 	
Adjusted ER segment operating (loss)	 	$	(3,525	)	 	 	-7.4	%	 	$	(4,742	)	 	 	-10.3	%	 	$	(8,689	)	 	 	-4.7	%	 	$	(9,635	)	 	 	-5.0	%	

 
 
 	 	Forecast
Year Ending December 31, 2017	 	
Spartan Motors, Inc	 	Low	 	 	Mid	 	 	High	 	
Net income	 	$	7,755	 	 	$	8,775	 	 	$	9,800	 	
Add:	 	 	 	 	 	 	 	 	 	 	 	 	
Depreciation and amortization	 	 	11,131	 	 	 	11,131	 	 	 	11,131	 	
Interest expense	 	 	1,000	 	 	 	1,000	 	 	 	1,000	 	
Taxes	 	 	1,700	 	 	 	2,250	 	 	 	2,800	 	
EBITDA	 	$	21,586	 	 	$	23,156	 	 	$	24,731	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Add (subtract):	 	 	 	 	 	 	 	 	 	 	 	 	
Acquisition related expenses	 	 	426	 	 	 	426	 	 	 	426	 	
Chassis shipment delay	 	 	3,125	 	 	 	3,125	 	 	 	3,125	 	
Adjusted EBITDA	 	$	25,137	 	 	$	26,707	 	 	$	28,282	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Earnings per share	 	$	0.22	 	 	$	0.25	 	 	$	0.28	 	
Add:	 	 	 	 	 	 	 	 	 	 	 	 	
Acquisition related expenses	 	 	0.01	 	 	 	0.01	 	 	 	0.01	 	
Chassis shipment delay	 	 	0.09	 	 	 	0.09	 	 	 	0.09	 	
Less tax effect of adjustments	 	 	(0.02	)	 	 	(0.02	)	 	 	(0.02	)	
Adjusted earnings per share	 	$	0.30	 	 	$	0.33	 	 	$	0.36	 	
 
Page 6 of 12

 
 
Conference Call, Webcast, Investor Presentation and Investor Information
Spartan Motors will host a conference call for analysts and portfolio managers at 10 a.m. ET 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: 10101442
 
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, and Utilimaster®, a Spartan Motors Company- are known for quality, durability, performance, customer service and first-to-market innovation. The Company operates facilities in Michigan, Indiana, Pennsylvania, Kansas, 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 & Director of Investor Relations
Spartan Motors, Inc.
(517) 543-6400	
 
Page 7 of 12

 
 
Spartan Motors, Inc. and Subsidiaries
Consolidated Balance Sheets
(In thousands, except par value)
 
 	 	 	 	 	 	December 31,	 	 	 	 	 	
 	 	 	 	 	 	2016	 	 	December 31,	 	
 	 	 	 	 	 	(Unaudited)	 	 	2015	 	
ASSETS	 	 	 	 	 	 	 	 	 	
Current assets:	 	 	 	 	 	 	 	 	 	
Cash and cash equivalents	 	$	32,041	 	 	$	32,701	 	
Accounts receivable, less allowance of $487 and $130	 	 	65,441	 	 	 	56,617	 	
Inventories	 	 	58,896	 	 	 	60,558	 	
Income taxes receivable	 	 	1,287	 	 	 	1,755	 	
Other current assets	 	 	4,526	 	 	 	3,506	 	
Total current assets	 	 	162,191	 	 	 	155,137	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Property, plant and equipment, net	 	 	53,116	 	 	 	47,320	 	
Goodwill	 	 	15,961	 	 	 	15,961	 	
Intangible assets, net	 	 	6,385	 	 	 	7,093	 	
Deferred income taxes, net	 	 	3,310	 	 	 	644	 	
Other assets	 	 	2,331	 	 	 	1,996	 	
TOTAL ASSETS	 	$	243,294	 	 	$	228,151	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
LIABILITIES AND SHAREHOLDERS' EQUITY	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Current liabilities:	 	 	 	 	 	 	 	 	 	
Accounts payable	 	$	31,336	 	 	$	27,318	 	
Accrued warranty	 	 	19,334	 	 	 	16,610	 	
Accrued compensation and related taxes	 	 	13,188	 	 	 	8,684	 	
Deposits from customers	 	 	16,142	 	 	 	13,095	 	
Other current liabilities and accrued expenses	 	 	7,659	 	 	 	6,603	 	
Current portion of long-term debt	 	 	65	 	 	 	63	 	
Total current liabilities	 	 	87,724	 	 	 	72,373	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Long-term debt, less current portion	 	 	74	 	 	 	5,124	 	
Other non-current liabilities	 	 	2,544	 	 	 	2,163	 	
Total liabilities	 	 	90,342	 	 	 	79,660	 	
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; 34,383 and 34,271 outstanding	 	 	344	 	 	 	343	 	
Additional paid in capital	 	 	76,837	 	 	 	76,472	 	
Retained earnings	 	 	76,428	 	 	 	72,326	 	
Total Spartan Motors, Inc. shareholders' equity	 	 	153,609	 	 	 	149,141	 	
Non-controlling interest	 	 	(657	)	 	 	(650	)	
Total shareholders' equity	 	 	152,952	 	 	 	148,491	 	
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	 	$	243,294	 	 	$	228,151	 	
 
Page 8 of 12

 

 
Spartan Motors, Inc. and Subsidiaries
Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
 
 	 	Three Months Ended
December 31,	 	 	Twelve Months Ended
December 31,	 	
 	 	2016	 	 	2015	 	 	2016	 	 	2015	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Sales	 	$	145,850	 	 	$	140,647	 	 	$	590,777	 	 	$	550,414	 	
Cost of products sold	 	 	127,907	 	 	 	135,262	 	 	 	518,113	 	 	 	502,783	 	
Restructuring charge	 	 	53	 	 	 	56	 	 	 	136	 	 	 	519	 	
Gross profit	 	 	17,890	 	 	 	5,329	 	 	 	72,528	 	 	 	47,112	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating expenses:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Research and development	 	 	2,363	 	 	 	1,473	 	 	 	6,772	 	 	 	4,560	 	
Selling, general and administrative	 	 	14,391	 	 	 	13,493	 	 	 	56,172	 	 	 	52,695	 	
Restructuring charge	 	 	171	 	 	 	371	 	 	 	959	 	 	 	2,336	 	
Total operating expenses	 	 	16,925	 	 	 	15,337	 	 	 	63,903	 	 	 	59,591	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating income (loss)	 	 	965	 	 	 	(10,008	)	 	 	8,625	 	 	 	(12,479	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other income (expense):	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest expense	 	 	(96	)	 	 	(72	)	 	 	(410	)	 	 	(365	)	
Interest and other income	 	 	183	 	 	 	123	 	 	 	488	 	 	 	244	 	
Total other income (expense)	 	 	87	 	 	 	51	 	 	 	78	 	 	 	(121	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income (loss) before taxes	 	 	1,052	 	 	 	(9,957	)	 	 	8,703	 	 	 	(12,600	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Taxes	 	 	111	 	 	 	(16	)	 	 	100	 	 	 	4,880	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Income (loss)	 	 	941	 	 	 	(9,941	)	 	 	8,603	 	 	 	(17,480	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Less: net loss attributable to non-controlling interest	 	 	(1	)	 	 	(491	)	 	 	(7	)	 	 	(508	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss) attributable to Spartan Motors Inc.	 	$	942	 	 	$	(9,450	)	 	$	8,610	 	 	$	(16,972	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic net earnings (loss) per share	 	$	0.03	 	 	$	(0.28	)	 	$	0.25	 	 	$	(0.50	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Diluted net earnings (loss) per share	 	$	0.03	 	 	$	(0.28	)	 	$	0.25	 	 	$	(0.50	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic weighted average common shares outstanding	 	 	34,417	 	 	 	33,886	 	 	 	34,405	 	 	 	33,826	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Diluted weighted average common shares outstanding	 	 	34,417	 	 	 	33,886	 	 	 	34,405	 	 	 	33,826	 	
 
Page 9 of 12

 
 
Spartan Motors, Inc. and Subsidiaries
Sales and Other Financial Information by Business Segment
Unaudited
 
Year Ended December 31, 2016 (in thousands of dollars)	
 
 	 	Business Segments	 	 	 	 	 	 	 	 	 	
 	 	Emergency Response	 	 	Fleet Vehicles & Services	 	 	Specialty Chassis & Vehicles	 	 	Other	 	 	Consolidated	 	
Emergency response vehicle sales	 	$	175,730	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	175,730	 	
Fleet vehicle sales	 	 	-	 	 	 	206,248	 	 	 	-	 	 	 	-	 	 	 	206,248	 	
Motorhome chassis sales	 	 	-	 	 	 	-	 	 	 	97,999	 	 	 	-	 	 	 	97,999	 	
Other specialty chassis and vehicles	 	 	-	 	 	 	-	 	 	 	21,074	 	 	 	-	 	 	 	21,074	 	
Aftermarket parts and assemblies	 	 	7,251	 	 	 	72,141	 	 	 	10,334	 	 	 	-	 	 	 	89,726	 	
Total Sales	 	$	182,981	 	 	$	278,389	 	 	$	129,407	 	 	$	-	 	 	$	590,777	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating Income (Loss)	 	$	(13,660	)	 	$	28,740	 	 	$	6,846	 	 	$	(13,301	)	 	$	8,625	 	

 
 
Spartan Motors, Inc. and Subsidiaries
Sales and Other Financial Information by Business Segment
Unaudited
 
Year Ended December 31, 2015 (in thousands of dollars)	
 
 	 	Business Segments	 	 	 	 	 	 	 	 	 	
 	 	Emergency Response	 	 	Fleet Vehicles & Services	 	 	Specialty Chassis & Vehicles	 	 	Other	 	 	Consolidated	 	
Emergency response vehicle sales	 	$	187,127	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	187,127	 	
Fleet vehicle sales	 	 	-	 	 	 	193,772	 	 	 	 	 	 	 	 	 	 	 	193,772	 	
Motorhome chassis sales	 	 	-	 	 	 	-	 	 	 	103,264	 	 	 	 	 	 	 	103,264	 	
Other specialty chassis and vehicles	 	 	-	 	 	 	-	 	 	 	13,849	 	 	 	 	 	 	 	13,849	 	
Aftermarket parts and assemblies	 	 	6,093	 	 	 	33,911	 	 	 	12,398	 	 	 	 	 	 	 	52,402	 	
Total Sales	 	$	193,220	 	 	$	227,683	 	 	$	129,511	 	 	$	-	 	 	$	550,414	 	

Operating Income (Loss)	 	$	(23,722	)	 	$	14,530	 	 	$	4,906	 	 	$	(8,193	)	 	$	(12,479	)	
 
Page 10 of 12

 
 
Spartan Motors, Inc. and Subsidiaries
Sales and Other Financial Information by Business Segment
Unaudited
 
Three Months Ended December 31, 2016 (in thousands of dollars)	
 
 	 	Business Segments	 	 	 	 	 	 	 	 	 	
 	 	Emergency Response	 	 	Fleet Vehicles & Services	 	 	Specialty Chassis & Vehicles	 	 	Other	 	 	Consolidated	 	
Emergency response vehicle sales	 	$	45,651	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	45,651	 	
Fleet vehicle sales	 	 	-	 	 	 	51,475	 	 	 	-	 	 	 	-	 	 	 	51,475	 	
Motorhome chassis sales	 	 	-	 	 	 	-	 	 	 	24,745	 	 	 	-	 	 	 	24,745	 	
Other specialty chassis and vehicles	 	 	-	 	 	 	-	 	 	 	4,351	 	 	 	-	 	 	 	4,351	 	
Aftermarket parts and assemblies	 	 	1,696	 	 	 	15,848	 	 	 	2,084	 	 	 	-	 	 	 	19,628	 	
Total Sales	 	$	47,347	 	 	$	67,323	 	 	$	31,180	 	 	$	-	 	 	$	145,850	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating Income (Loss)	 	$	(3,750	)	 	$	7,093	 	 	$	1,441	 	 	$	(3,820	)	 	$	965	 	

 
Spartan Motors, Inc. and Subsidiaries
Sales and Other Financial Information by Business Segment
Unaudited
 
Three Months Ended December 31, 2015 (in thousands of dollars)	
 
 	 	Business Segments	 	 	 	 	 	 	 	 	 	
 	 	Emergency Response	 	 	Fleet Vehicles & Services	 	 	Specialty Chassis & Vehicles	 	 	Other	 	 	Consolidated	 	
Emergency response vehicle sales	 	$	40,642	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	40,642	 	
Fleet vehicle sales	 	 	-	 	 	 	55,176	 	 	 	 	 	 	 	 	 	 	 	55,176	 	
Motorhome chassis sales	 	 	-	 	 	 	-	 	 	 	27,834	 	 	 	 	 	 	 	27,834	 	
Other specialty chassis and vehicles	 	 	-	 	 	 	-	 	 	 	3,020	 	 	 	 	 	 	 	3,020	 	
Aftermarket parts and assemblies	 	 	1,356	 	 	 	10,541	 	 	 	2,078	 	 	 	 	 	 	 	13,975	 	
Total Sales	 	$	41,998	 	 	$	65,717	 	 	$	32,932	 	 	$	-	 	 	$	140,647	 	

Operating Income (Loss)	 	$	(12,051	)	 	$	4,524	 	 	$	100	 	 	$	(2,581	)	 	$	(10,008	)	
 
Page 11 of 12

 
 
Spartan Motors, Inc. and Subsidiaries
Sales and Other Financial Information by Business Segment
Unaudited
 
Period End Backlog (amounts in thousands of dollars)	 	
 	 	Dec. 31,
2016	 	 	Sept. 30,
2016	 	 	June 30,
2016	 	 	Mar. 31,
2016	 	 	Dec. 31,
2015	 	
Emergency Response Vehicles*	 	$	139,870	 	 	$	149,752	 	 	$	152,177	 	 	$	160,392	 	 	$	156,270	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Fleet Vehicles and Services*	 	 	89,549	 	 	 	102,218	 	 	 	139,655	 	 	 	137,717	 	 	 	96,120	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Motorhome Chassis *	 	 	18,749	 	 	 	19,114	 	 	 	11,197	 	 	 	16,235	 	 	 	12,401	 	
Other Vehicles	 	 	-	 	 	 	-	 	 	 	-	 	 	 	3,737	 	 	 	4,949	 	
Aftermarket Parts and Assemblies	 	 	1,288	 	 	 	1,012	 	 	 	1,005	 	 	 	815	 	 	 	1,019	 	
Total Specialty Chassis & Vehicles	 	 	20,037	 	 	 	20,126	 	 	 	12,202	 	 	 	20,787	 	 	 	18,369	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Backlog	 	$	249,546	 	 	$	272,096	 	 	$	304,034	 	 	$	318,896	 	 	$	270,759	 	
 
* Anticipated time to fill backlog orders at December 31, 2016; 11 months or less for emergency response vehicles; 3 months or less for motorhome chassis; 6 months or less for fleet vehicles and services; and 1 month or less for other products.	 	

Page 12 of 12

Exhibit 99.2