Note 8 - Business Segments

9 Months Ended

Sep. 30, 2015

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

N

OTE

8

- BUSINESS SEGMENTS

We identify our reportable segments based on management structure and the financial data utilized by the chief operating decision makers to assess segment performance and allocate resources among our operating units. We have three reportable segments: Emergency Response Vehicles, Delivery and Service Vehicles, and Specialty Chassis and Vehicles.

Our Emergency Response Vehicles segment manufactures chassis and complete vehicles for the emergency response market with operations in Charlotte, Michigan; Brandon, South Dakota; and Ephrata, Pennsylvania. Our Delivery and Service Vehicles segment manufactures walk-in vans and truck bodies at our Bristol and Wakarusa, Indiana facilities, and distributes related aftermarket parts for vehicles used in delivery and service businesses. Our Specialty Chassis and Vehicles segment is comprised of the Spartan USA operations located in Charlotte, Michigan that engineer and manufacture motor home chassis and defense and other specialty vehicles and distribute aftermarket parts and assemblies related to motor homes, defense vehicles and emergency response vehicles.

Appropriate expense amounts are allocated to the three reportable segments and are included in their reported operating income or loss.

The accounting policies of the segments are the same as those described, or referred to, in Note 1 - General and Summary of Accounting Policies. Assets and related depreciation expense in the column labeled “Other” pertain to capital assets maintained at the corporate level. Segment loss from operations in the “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 maker to assess segment performance and allocate resources, and accordingly, are excluded from the segment results presented below. Intercompany transactions between operating segments were immaterial in all periods presented.

Three Months Ended

September 30, 2015

	Emergency Response Vehicles			Delivery & Service Vehicles		Specialty Chassis & Vehicles		Other			Consolidated
Emergency Response Vehicles Sales	$	42,030		$	-	$	-	$	-		$	42,030
Delivery & Service Vehicles Sales		-			45,526		-		-			45,526
Motorhome Chassis Sales		-			-		32,367		-			32,367
Other Specialty Chassis and Vehicles Sales		-			-		2,388		-			2,388
Aftermarket Parts and Assemblies Sales		-			8,711		5,550		-			14,261
Total Sales	$	42,030		$	54,237	$	40,305	$	-		$	136,572
Depreciation and Amortization Expense	$	263		$	928	$	105	$	576		$	1,872
Operating Income (Loss)	$	(5,991	)	$	4,064	$	2,776	$	(1,307	)	$	(458	)
Segment Assets	$	70,011		$	83,945	$	23,820	$	70,709		$	248,485
Capital Expenditures	$	119		$	200	$	260	$	549		$	1,128

14

SPARTAN MOTORS, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in thousands, except per share data)

Three Months Ended

September 30, 2014

	Emergency Response Vehicles		Delivery & Service Vehicles		Specialty Chassis & Vehicles		Other			Consolidated
Emergency Response Vehicles Sales	$	60,656	$	-	$	-	$	-		$	60,656
Delivery & Service Vehicles Sales		-		44,739		-		-			44,739
Motorhome Chassis Sales		-		-		23,370		-			23,370
Other Specialty Chassis and Vehicles Sales		-		-		2,536		-			2,536
Aftermarket Parts and Assemblies Sales		-		7,730		5,208		-			12,938
Total Sales	$	60,656	$	52,469	$	31,114	$	-		$	144,239
Depreciation and Amortization Expense	$	282	$	1,121	$	94	$	609		$	2,106
Operating Income (Loss)	$	1,658	$	1,845	$	2,930	$	(2,166	)	$	4,267
Segment Assets	$	86,856	$	69,806	$	22,982	$	71,239		$	250,883
Capital Expenditures	$	6	$	178	$	149	$	369		$	702

Nine

Months Ended

September 30, 2015

	Emergency Response Vehicles			Delivery & Service Vehicles		Specialty Chassis & Vehicles		Other			Consolidated
Emergency Response Vehicles Sales	$	146,484		$	-	$	-	$	-		$	146,484
Delivery & Service Vehicles Sales		-			138,596		-		-			138,596
Motorhome Chassis Sales		-			-		75,431		-			75,431
Other Specialty Chassis and Vehicles Sales		-			-		10,829		-			10,829
Aftermarket Parts and Assemblies Sales		-			23,371		15,056		-			38,427
Total Sales	$	146,484		$	161,967	$	101,316	$	-		$	409,767
Depreciation and Amortization Expense	$	707		$	2,732	$	299	$	1,709		$	5,447
Operating Income (Loss)	$	(12,598	)	$	10,006	$	5,733	$	(5,612	)	$	(2,471	)
Segment Assets	$	70,011		$	83,945	$	23,820	$	70,709		$	248,485
Capital Expenditures	$	885		$	706	$	577	$	1,435		$	3,603

15

SPARTAN MOTORS, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in thousands, except per share data)

Nine

Months Ended

September 30, 2014

	Emergency Response Vehicles			Delivery & Service Vehicles		Specialty Chassis & Vehicles		Other			Consolidated
Emergency Response Vehicles Sales	$	138,716		$	-	$	-	$	-		$	138,716
Delivery & Service Vehicles Sales		-			148,350		-		-			148,350
Motorhome Chassis Sales		-			-		62,953		-			62,953
Other Specialty Chassis and Vehicles Sales		-			-		6,732		-			6,732
Aftermarket Parts and Assemblies Sales		-			18,829		12,413		-			31,242
Total Sales	$	138,716		$	167,179	$	82,098	$	-		$	387,993
Depreciation and Amortization Expense	$	790		$	3,357	$	575	$	1,802		$	6,524
Operating Income (Loss)	$	(3,468	)	$	6,124	$	4,989	$	(6,889	)	$	756
Segment Assets	$	86,856		$	69,806	$	22,982	$	71,239		$	250,883
Capital Expenditures	$	248		$	548	$	316	$	1,457		$	2,569