For the Quarter Ended
September 30, 2000

Commission File Number
0-13611

Michigan
(State or Other Jurisdiction of
Incorporation or Organization)

38-2078923
(I.R.S. Employer
Identification No.)

1000 Reynolds Road
Charlotte, Michigan
(Address of Principal Executive Offices)

48813
(Zip Code)

Class

Outstanding at
November 8, 2000

Common stock, $.01 par value

11,288,077 shares

SPARTAN MOTORS, INC.
INDEX

PART I.  FINANCIAL INFORMATION

Page

Item 1.  Financial Statements:

Condensed Consolidated Balance Sheets --September 30, 2000

          (Unaudited) and December 31, 1999

1

Condensed Consolidated Statements of Operations -

          Three Months Ended September 30, 2000 and 1999 (Unaudited)

3

Condensed Consolidated Statements of Operations -

          Nine Months Ended September 30, 2000 and 1999 (Unaudited)

4

Condensed Consolidated Statements of Shareholders'

          Equity -- Nine Months Ended September 30, 2000 (Unaudited)

5

Condensed Consolidated Statements of Cash Flows -

          Nine Months Ended September 30, 2000 and 1999 (Unaudited)

6

Notes to Condensed Consolidated Financial Statements

8

Item 2.  Management's Discussion and Analysis of Financial

          Condition and Results of Operations

11

Item 3.  Quantitative and Qualitative Disclosures About Market Risk

17

PART II. OTHER INFORMATION

Item 6. Exhibits and Reports on Form 8-K

17

SIGNATURES

18

EXHIBIT INDEX

19

Item 1.

Financial Statements

SPARTAN MOTORS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS
                                       

September 30,
2000

December 31,
1999

(Unaudited)

ASSETS

Current assets:

     Cash and cash equivalents

$

1,037,086

$

35,797

     Accounts receivable, less allowance

          for doubtful accounts of $567,000

          in 2000 and 1999

30,439,178

36,514,507

     Inventories (Note 4)

30,410,384

39,580,734

     Deferred tax benefit

3,487,305

3,487,305

     Taxes receivable

8,159,717

1,427,945

     Other current assets

994,518

834,404

          Total current assets

74,528,188

81,880,692

Property, plant, and equipment, net

10,718,349

11,127,360

Goodwill, net of accumulated amortization

     of $1,190,000 in 2000 and $1,001,000

     in 1999, respectively

5,064,669

5,419,417

Other assets

589,905

527,189

Long-term assets of discontinued

     operations, net

3,251,850

7,356,931

Total assets

$

94,152,961

$

106,311,589

SPARTAN MOTORS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (Continued)
                                       

September 30,
2000

December 31,
1999

(Unaudited)

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

     Accounts payable

$

16,125,753

$

22,406,392

     Notes payable

--

35,000

     Other current liabilities and accrued expenses

3,274,370

1,386,557

     Accrued warranty

3,608,246

3,303,778

     Accrued customer rebates

544,639

629,311

     Accrued compensation and related taxes

1,796,029

1,691,664

     Accrued vacation

1,112,148

1,108,664

     Deposits from customers

3,004,866

3,652,964

     Current portion of long-term debt

267,075

522,586

     Current liabilities of discontinued operations, net

6,359,811

5,277,185

          Total current liabilities

36,092,937

40,014,101

Long-term debt

26,857,619

23,119,047

Shareholders' equity:

     Preferred stock, no par value: 2,000,000

          shares authorized (none issued)

--

--

     Common stock, $.01 par value, 23,900,000

          shares authorized, issued 11,288,077 shares

          in 2000 and 12,273,977 shares in 1999

112,881

122,740

     Additional paid in capital

21,742,364

23,645,151

     Retained earnings, net of effect of minority

          interest in shareholders' deficit of subsidiary

          of ($4,828,324) in 2000 and 1999

9,347,160

19,410,550

          Total shareholders' equity

31,202,405

43,178,441

Total liabilities and shareholders' equity

$

94,152,961

$

106,311,589

See notes to condensed consolidated financial statements.

SPARTAN MOTORS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
                                       

Three Months Ended September 30,

2000

1999

Sales

$

53,045,380

$

76,335,294

Cost of products sold

49,167,918

65,044,441

Gross profit

3,877,462

11,290,853

Operating expenses

     Research and development

1,598,786

1,636,870

     Selling, general and administrative

4,527,881

5,217,210

Operating income

(2,249,205

)

4,436,773

Other income / (expense)

     Interest expense

(335,351

)

(408,464

)

     Interest and other income

166,222

144,337

Earnings (loss) before taxes on income

(2,418,334

)

4,172,646

Taxes on income

(685,745

)

1,552,961

Net earnings (loss) from continuing operations

(1,732,589

)

2,619,685

Discontinued operations:

     Loss from operations of Carpenter (less applicable

       income taxes of $0)

2,148,151

1,690,117

     Loss on disposal of Carpenter, including provision of

       $1,775,000 for operating losses
         during phase-out period

       (less applicable income tax benefit of $6,942,000)

6,099,174

--

Net earnings (loss)

$

(9,979,914

)

$

929,568

Basic and diluted net earnings per share:

Net earnings (loss) from continuing operations

$

(0.15

)

$

0.21

Loss from discontinued operations:

     Loss from operations of Carpenter

(0.19

)

(0.13

)

     Loss on disposal of Carpenter

(0.54

)

--

Basic and diluted net earnings (loss) per share

$

(0.88

)

$

0.07

Basic weighted average common shares outstanding

11,318,000

12,535,000

Diluted weighted average common shares

     outstanding

11,324,000

12,556,000

See notes to condensed consolidated financial statements.

SPARTAN MOTORS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
                                       

Nine Months Ended September 30,

2000

1999

Sales

$

194,102,630

$

214,685,461

Cost of products sold

169,142,496

182,446,210

Gross profit

24,960,134

32,239,251

Operating expenses

     Research and development

4,955,130

4,866,079

     Selling, general and administrative

14,557,991

14,777,268

Operating income

5,447,013

12,595,904

Other income / (expense)

     Interest expense

(863,365

)

(1,180,742

)

     Interest and other income

349,239

298,479

Earnings before taxes on income

4,932,887

11,713,641

Taxes on income

1,929,929

4,243,201

Net earnings from continuing operations

3,002,958

7,470,440

Discontinued operations:

     Loss from operations of Carpenter (less applicable

          income taxes of $0)

3,900,853

4,094,262

     Loss on disposal of Carpenter, including provision of

          $1,775,000 for operating losses
            during phase-out period

           (less applicable income tax benefit of $6,942,000)

6,099,174

--

Net earnings (loss)

$

(6,997,069

)

$

3,376,178

Basic and diluted net earnings per share:

Net earnings from continuing operations

$

0.26

$

0.60

Loss from discontinued operations:

     Loss from operations of Carpenter

(0.34

)

(0.33

)

     Loss on disposal of Carpenter

(0.52

)

--

Basic and diluted net earnings (loss) per share

$

(0.60

)

$

0.27

Basic weighted average common shares outstanding

11,737,000

12,535,000

Diluted weighted average common shares outstanding

11,749,000

12,558,000

See notes to condensed consolidated financial statements.

SPARTAN MOTORS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
(UNAUDITED)
                   

Number of
Shares

Common
Stock

Additional
Paid In
Capital

Retained
Earnings

Total

Balance at January 1, 2000

12,273,977

$

122,740

$

23,645,151

$

19,410,550

$

43,178,441

Purchase and constructive

     retirement of stock

(985,900

)

(9,859

)

(1,902,787

)

(2,255,576

)

(4,168,222

)

Dividends paid

(810,745

)

(810,745

)

Comprehensive income:

     Net earnings (loss)

(6,997,069

)

(6,997,069

)

Balance at September 30, 2000

11,288,077

$

112,881

$

21,742,364

$

9,347,160

$

31,202,405

See notes to condensed consolidated financial statements.

SPARTAN MOTORS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
                                       

Nine Months Ended September 30,

2000

1999

Cash flows from operating activities:

     Net earnings from continuing operations

$

3,002,958

$

7,470,440

     Adjustments to reconcile net earnings to net cash

     provided by operating activities:

          Depreciation and amortization

1,716,808

1,887,553

          Loss (gain) on sales of assets

5,929

(61,627

)

          Decrease (increase) in assets:

               Accounts receivable

6,075,329

(3,883,303

)

               Inventories

9,222,590

(4,217,869

)

               Federal taxes receivable

(6,731,772

)

--

               Other assets

(222,830

)

(391,130

)

          Increase (decrease) in liabilities:

               Accounts payable

(5,313,339

)

3,478,023

               Other current liabilities and accrued expenses

1,887,813

394,692

               Accrued warranty

304,468

118,518

               Accrued customer rebates

(84,672

)

18,349

               Taxes on income

--

(1,085,635

)

               Accrued vacation

3,484

92,671

               Accrued compensation and related taxes

104,365

902,274

               Deposits from customers

(648,098

)

1,310,520

     Total adjustments

6,320,075

(1,436,964

)

Net cash provided by continuing operating activities

9,323,033

6,033,476

Net cash used in discontinued operating activities

(5,811,344

)

(7,377,710

)

Cash flows from investing activities:

     Purchases of property, plant and equipment

(986,495

)

(1,269,725

)

     Proceeds from sales of property, plant and equipment

8,001

21,984

     Proceeds from sales of investment securities

--

500,000

     Purchase price adjustment related to
       acquisition of subsidiary

--

(249,103

)

     Minority interest contributions

(1,000

)

750,000

Net cash used in investing activities

(979,494

)

(246,844

)

(Continued)

SPARTAN MOTORS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
                                       

Nine Months Ended September 30,

2000

1999

Cash flows from financing activities:

     Payments on notes payable

$

(35,000

)

$

(197,000

)

     Proceeds from long-term debt

3,750,000

2,695,713

     Payments on long-term debt

(266,939

)

(13,130

)

     Net proceeds from exercise of stock options

--

3,180

     Dividends paid

(810,745

)

(877,430

)

     Purchase of previously-issued stock

(4,168,222

)

--

Net cash provided by (used in) financing activities

(1,530,906

)

1,611,333

Net increase in cash and cash equivalents

1,001,289

20,255

Cash and cash equivalents at beginning of period

35,797

37,645

Cash and cash equivalents at end of period

$

1,037,086

$

57,900

See notes to condensed consolidated financial statements.

Note 1

For a description of the accounting policies followed refer to the notes to the Spartan Motors, Inc. (the "Company") annual consolidated financial statements for the year ended December 31, 1999, included in the Company's Form 10-K filed with the Securities and Exchange Commission on March 7, 2000.

Note 2

The accompanying unaudited interim consolidated financial statements reflect all normal and recurring adjustments that are necessary for the fair presentation of the Company's financial position as of September 30, 2000, and the results of operations and cash flows for the periods presented.

Note 3

The results of operations for the three- and nine-month periods ended September 30, 2000 are not necessarily indicative of the results to be expected for the full year.

Note 4

Inventories consist of raw materials and purchased components, work in process, and finished goods and are summarized as follows:

September 30,
2000

December 31,
1999

                         Finished goods

$

2,696,563

$

7,283,900

                         Raw materials and purchased components

26,195,208

31,220,560

                         Work in process

6,959,383

4,954,579

                         Obsolescence reserve

(5,440,770

)

(3,878,305

)

$

30,410,384

$

39,580,734

Note 5

On September 27, 2000, the Company's Board of Directors passed a resolution to cease funding of the Company's majority-owned subsidiary, Carpenter Industries, Inc. ("Carpenter"). Carpenter's Board of Directors then voted on September 29, 2000 to begin the orderly liquidation of Carpenter. As part of the orderly liquidation process, the fixed assets will be sold, current assets collected and proceeds used to pay current and noncurrent liabilities, to the extent possible. The Company has certain guarantees in place and it anticipates that it will be required to pay approximately $3.1 million to Carpenter creditors. The Company's intention is to complete the orderly liquidation as quickly as possible and it estimates this will take no longer than one year. As a result of these actions, the Consolidated Statement of Operations has been restated to report the operating results of Carpenter as a discontinued operation in accordance with Accounting Principles Board (APB) Opinion No. 30, "Reporting the Results of Operations". Carpenter's sales for the nine months ended September 30, 2000 and 1999 were $22.0 million and $19.7 million, respectively.

The net current and noncurrent assets and liabilities of the discontinued operations have been segregated in the consolidated balance sheets. Details of such amounts at September 30, 2000 and December 31, 1999 are as follows:

Note 5

(continued)

September 30,
2000

December 31,
1999

Accounts receivable

$

1,982,250

$

1,251,300

Inventories

1,858,328

7,530,993

Notes payable

(5,194,323

)

(7,319,746

)

Accounts payable

(602,841

)

(2,708,996

)

Other, net

(4,403,225

)

(4,030,736

)

Net current assets (liabilities) of discontinued operations

$

(6,359,811

)

$

(5,277,185

)

Property, plant and equipment, net

$

7,598,106

$

11,440,817

Goodwill, net

--

2,043,578

Long-term debt

(4,346,256

)

(5,700,256

)

Other, net

--

(427,208

)

Net long-term assets of discontinued operations

$

3,251,850

$

7,356,931

Note 6

Sales and other financial information by business segment are as follows (amounts in thousands):

Three Months Ended September 30, 2000

Business Segments

Chassis

EVTeam

Carpenter

Intangibles

Other

Consolidated

Net Sales

$

40,356

$

15,421

$

(2,732

)

$

53,045

Interest expense

174

229

(67

)

336

Depreciation and

     amortization expense

228

122

$

106

98

554

Income tax expense

(430

)

(167

)

(89

)

(686

)

Segment earnings (loss) from

     continuing operations

(1,218

)

(165

)

(106

)

(243

)

(1,732

)

Discontinued operations

(808

)

--

$

(7,440

)

(8,248

)

Segment earnings (loss)

(2,026

)

(165

)

(7,440

)

(106

)

(243

)

(9,980

)

Segment assets

65,213

23,388

3,252

5,065

(2,765

)

94,153

Note 6

(continued)

Three Months Ended September 30, 1999

Business Segments

Chassis

EVTeam

Carpenter

Intangibles

Other

Consolidated

Net Sales

$

64,179

$

14,434

$

(2,277

)

$

76,336

Interest expense

299

142

(33)

408

Depreciation and

     amortization expense

222

100

$

208

86

616

Income tax expense

1,401

144

8

1,553

Segment earnings (loss) from

     continuing operations

2,583

203

(208

)

41

2,619

Discontinued operations

--

--

$

(1,690

)

--

--

(1,690

)

Segment earnings (loss)

2,583

203

(1,690

)

(208

)

41

929

Segment assets

81,167

24,501

5,313

6,970

(4,392

)

113,559

Nine Months Ended September 30, 2000

Business Segments

Chassis

EVTeam

Carpenter

Intangibles

Other

Consolidated

Net Sales

$

156,693

$

45,874

$

(8,465

)

$

194,102

Interest expense

310

563

(9

)

864

Depreciation and

     amortization expense

702

335

$

335

345

1,717

Income tax expense

2,278

164

(512

)

1,930

Segment earnings
   (loss) from

     continuing operations

3,348

422

(335

)

(432

)

3,003

Discontinued operations

(808

)

--

$

(9,192

)

(10,000

)

Segment earnings (loss)

2,540

422

(9,192

)

(335

)

(432

)

(6,997

)

Segment assets

65,213

23,388

3,252

5,065

(2,765

)

94,153

Nine Months Ended September 30, 1999

Business Segments

Chassis

EVTeam

Carpenter

Intangibles

Other

Consolidated

Net Sales

$

180,205

$

41,536

$

(7,055

)

$

214,686

Interest expense

867

376

(63

)

1,180

Depreciation and

     amortization expense

748

266

$

625

249

1,888

Income tax expense

3,964

459

(180

)

4,243

Segment earnings
   (loss) from

     continuing operations

7,502

720

(625

)

(127

)

7,470

Discontinued operations

$

(4,094

)

(4,094

)

Segment earnings (loss)

7,502

720

(4,094

)

(625

)

(127

)

3,376

Segment assets

81,167

24,501

5,313

6,970

(4,392

)

113,559

Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Three Months Ended
September 30,

Nine Months Ended
September 30,

2000

1999

2000

1999

Sales

100.0%  

100.0%   

100.0%   

100.0%   

Cost of product sold

92.7%  

85.2%   

87.1%   

85.0%   

Gross profit

7.3%   

14.8%   

12.9%   

15.0%   

Operating expenses:

     Research and development

3.0%   

2.1%    

2.6%    

2.3%    

     Selling, general, and administrative

8.5%   

6.9%    

7.5%    

6.8%    

Operating income

-4.2%   

5.8%    

2.8%    

5.9%    

Other

-0.4%   

-0.3%    

-0.3%    

-0.4%    

Earnings before taxes on income

-4.6%   

5.5%    

2.5%    

5.5%    

Taxes on income

-1.3%   

2.1%    

1.0%    

2.0%    

Net earnings (loss) from continuing

     operations

-3.3%   

3.4%    

1.5%    

3.5%    

Discontinued operations:

     Loss from operations of Carpenter

-4.1%   

-2.2%    

-2.0%   

-1.9%    

     Loss on disposal of Carpenter

-11.4%   

-3.1%   

Net earnings (loss)

-18.8%   

1.2%    

-3.6%    

1.6%    

Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations (Continued)

Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations (Continued)

Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations (Continued)

•

Changes in existing products liability, tort or warranty laws or the introduction of new laws, regulations or policies that could affect our business practices: these laws, regulations or policies could impact our industry as a whole, or could impact only those portions in which we are currently active, for example, laws regulating the design or manufacture of emergency vehicles or regulations issued by the National Fire Protection Association; in either case, our profitability could be injured due to a industry-wide market decline or due to our inability to compete with other companies that are unaffected by these laws, regulations or policies.

•

Changes in environmental regulations: these regulations could have a negative impact on our earnings; for example, laws mandating greater fuel efficiency could increase our research and development costs.

•

Changes in economic conditions, including changes in interest rates, financial market performance and the industry: these types of changes can impact the economy in general, resulting in a downward trend that impacts not only our business, but all companies with which we compete; or, the changes can impact only those parts of the economy upon which we rely in a unique fashion, including, by way of example:

          •

     Factors that impact our attempts to expand internationally, such as the introduction of trade

     barriers in the United States or abroad.

•

Factors that we have discussed in previous public reports and other documents filed with the Securities and Exchange Commission.

Item 3.

Quantitative and Qualitative Disclosures About Market Risk.

Item 6.

Exhibits and Reports on Form 8-K.

Exhibit No.

Document

3.1

Spartan Motors, Inc. Restated Articles of Incorporation. Previously filed as an exhibit to the Company's Quarterly Report on Form 10-Q for the period ended June 30, 1996, and incorporated herein by reference.

3.2

Spartan Motors, Inc. Bylaws (restated to reflect all amendments). Previously filed as an exhibit to the Company's Annual Report on Form 10-K for the period ended December 31, 1995, and incorporated herein by reference.

27

Financial Data Schedule.

Date:

November 14, 2000

SPARTAN MOTORS, INC.

By /s/ Richard J. Schalter

           Richard J. Schalter
           Secretary/Treasurer
           (Principal Accounting and Financial Officer)

Exhibit No.

Document

3.1

Spartan Motors, Inc. Restated Articles of Incorporation. Previously filed as an exhibit to the Company's Quarterly Report on Form 10-Q for the period ended June 30, 1996, and incorporated herein by reference.

3.2

Spartan Motors, Inc. Bylaws (restated to reflect all amendments). Previously filed as an exhibit to the Company's Annual Report on Form 10-K for the period ended December 31, 1995, and incorporated herein by reference.

27

Financial Data Schedule.