COACHMEN INDUSTRIES, INC.
2831 Dexter Drive • P.O. Box 3300 • Elkhart, Indiana 46514 • 574/266-2500 • Fax 574/266-2559
NEWS RELEASE
For immediate release Monday, April 27, 2009
COACHMEN INDUSTRIES, INC. ANNOUNCES NET PROFIT BUT LOSS FROM CONTINUING OPERATIONS
Elkhart, IN - Coachmen Industries, Inc. (OTC:COHM.PK), a premier systems-built construction company and manufacturer of specialty vehicles, today announced its financial results for the first quarter ended March 31, 2009.
“According to the U.S. Census Bureau, single family housing starts for the quarter were down 51.7% nationwide versus the same quarter in 2008, on the heels of a decline of a 40.5% for the full year 2008,” commented Richard M. Lavers, President and Chief Executive Officer. “The Housing Group delivered fewer single family homes than planned in these deteriorating market conditions and did not have a major military project to buoy our business during the quarter. As a result, despite reductions in force, temporary shutdowns and other cost-cutting measures, the Housing Group posted a larger-than-anticipated loss for the quarter. We have redoubled our efforts in pursuing major project opportunities, particularly in the military construction arena, and have taken actions to reduce our operating costs during this incredibly challenging period.
“However, we did post a profit for the quarter due to the booking of our settlement of the Kemlite RV sidewall matter with Crane Composites. Further, we established a new financing partnership with Lake City Bank,” stated Mr. Lavers. “These are significant steps toward resolving the severe liquidity problems which have plagued the Company since last winter, when Coachmen's then-principal lender terminated our credit facility. Nonetheless, we cannot be overly sanguine, as we have immediate cash requirements while the funds from the settlement will not be available until later next month.”
Net sales from continuing operations for the first quarter were $11.3 million compared to $30.8 million reported for the same period in 2008. Gross profit for the quarter decreased to a loss of ($2.1) million, or (18.4%) of revenues, from a profit of $5.5 million, or 17.9% of revenues, for the first quarter of 2008. The Company reported a net loss from continuing operations of ($6.1) million, or ($0.39) per share, versus a net profit from continuing operations of $1.3 million, or $0.08 per share, in the first quarter of 2008. Net income, including discontinued operations, was $8.3 million, or $0.53 per share, in the first quarter of 2009, versus a net profit of $1.3 million, or $0.08 per share, in the first quarter of 2008.
Coachmen Industries, Inc. Announces First Quarter Results
Page 2
April 27, 2009
“While sales of the Spirit of Mobility buses produced for our joint venture, ARBOC Mobility, were relatively modest in the first quarter as we received positive Altoona test reports and Canadian approvals only in January – we expect increasing revenues and contributions from this segment of the business going forward,” stated Lavers.
Coachmen Industries will conduct a conference call to discuss the Company’s financial results at 10:00 a.m. (Eastern Time), Tuesday, April 28, 2009. Members of the news media, investors and the general public are invited to access a live broadcast of the conference call over the internet at www.earnings.com. The online replay will be available at approximately 12:00 p.m. (Eastern Time) and continue for 30 days.
Coachmen Industries, Inc. is one of America's premier systems-built construction companies under the ALL AMERICAN BUILDING SYSTEMS®, ALL AMERICAN HOMES® and MOD-U-KRAF® brands, as well as a manufacturer of specialty vehicles. Coachmen Industries, Inc. is a publicly held company with stock quoted and traded on the over-the-counter markets under the ticker COHM.PK.
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Investors are cautioned not to place undue reliance on forward-looking statements, which are inherently uncertain. Actual results may differ materially from that projected or suggested due to certain risks and uncertainties including, but not limited to, liquidity, the ability of the Company to bond major government contracts, availability of working capital, availability of credit to the Company and its customers, the depth and duration of the recession, the ability to produce buses to meet demand, the potential fluctuations in the Company's operating results, price volatility of raw materials used in production, the availability and cost of real estate for residential housing, the supply of existing homes within the company's markets, government regulations, dependence on significant customers within certain product types, consolidation of distribution channels, consumer confidence, uncertainties of matters in litigation, and other risks identified in the Company's SEC filings.
For financial information:
Colleen A. Zuhl
Chief Financial Officer
574-266-2500
For investor information:
James T. Holden
Corporate Secretary and Assistant General Counsel
574-266-2500
Coachmen Industries, Inc. Announces First Quarter Results
Page 3
April 27, 2009
Coachmen Industries, Inc. and Subsidiaries
Consolidated Statements of Operations
(in thousands, except per share amounts)
(Unaudited)
Three Months Ended March 31, | ||||||||
2009 | 2008 | |||||||
Net sales | $ | 11,280 | $ | 30,839 | ||||
Gross profit - $ | (2,076 | ) | 5,524 | |||||
Gross profit - % | (18.4 | )% | 17.9 | % | ||||
GS&A - $ | 4,226 | 4,277 | ||||||
GS&A - % | 37.5 | % | 13.9 | % | ||||
(Gain) loss on sale of assets, net - $ | 1 | (26 | ) | |||||
(Gain) loss on sale of assets, net - % | - | % | 0.1 | % | ||||
Total operating expenses - $ | 4,227 | 4,251 | ||||||
Total operating expenses - % | 37.5 | % | 13.8 | % | ||||
Operating income (loss) - $ | (6,303 | ) | 1,273 | |||||
Operating income (loss) - % | (55.9 | )% | 4.1 | % | ||||
Outside interest expense | 865 | 287 | ||||||
Outside investment income | (247 | ) | (227 | ) | ||||
Other income | (801 | ) | (39 | ) | ||||
Other (income) expense | (183 | ) | 21 | |||||
Pre-tax income (loss) from continuing operations - $ | (6,120 | ) | 1,252 | |||||
Pre-tax income (loss) from continuing operations - % | (54.3 | )% | 4.1 | % | ||||
Tax expense (credit) | - | - | ||||||
Net income (loss) from continuing operations | (6,120 | ) | 1,252 | |||||
Discontinued operations: | ||||||||
Loss from discontinued RV operations (net of taxes) | (289 | ) | (109 | ) | ||||
Income on sale of discontinued RV assets (net of taxes) | - | 183 | ||||||
Income from legal settlement (net of taxes of $188) | 14,722 | - | ||||||
Income from discontinued operations | 14,433 | 74 | ||||||
Net income | 8,313 | 1,326 | ||||||
Income (loss) per share - Basic & Diluted | ||||||||
Continuing operations | (0.39 | ) | 0.08 | |||||
Discontinued operations | 0.92 | - | ||||||
Net income (loss) per share – Basic & Diluted | $ | 0.53 | $ | 0.08 | ||||
Weighted average shares outstanding: | ||||||||
Basic | 15,807 | 15,749 | ||||||
Diluted | 15,807 | 15,758 |
Coachmen Industries, Inc. Announces First Quarter Results
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April 27, 2009
Coachmen Industries, Inc. and Subsidiaries
Consolidated Balance Sheets
(in thousands)
March 31, | December 31, | |||||||
2009 | 2008 | |||||||
Assets | (Unaudited) | |||||||
CURRENT ASSETS | ||||||||
Cash and cash equivalents | $ | 2,429 | $ | 15,745 | ||||
Restricted cash | 925 | 1,600 | ||||||
Accounts receivable | 2,745 | 1,837 | ||||||
Inventories | 20,197 | 19,910 | ||||||
Refundable income taxes | 1,480 | 1,559 | ||||||
Prepaid expenses and other | 22,834 | 9,056 | ||||||
Assets held for sale | 2,914 | 2,913 | ||||||
Total current assets | 53,524 | 52,620 | ||||||
Property, plant and equipment, net | 30,716 | 30,922 | ||||||
Cash value of life insurance, net of loans | 2,551 | 4,710 | ||||||
Restricted cash – long term | 15,928 | 17,321 | ||||||
Other | 1,825 | 1,831 | ||||||
TOTAL ASSETS | $ | 104,544 | $ | 107,404 | ||||
Liabilities and Shareholders' Equity | ||||||||
CURRENT LIABILITIES | ||||||||
Short-term borrowings & current portion of LT debt | $ | 3,164 | $ | 819 | ||||
Accounts payable, trade | 8,638 | 11,414 | ||||||
Floor plan notes payable | - | 3,096 | ||||||
Accrued income taxes | 1,643 | 1,470 | ||||||
Accrued expenses and other liabilities | 23,399 | 31,127 | ||||||
Total current liabilities | 36,844 | 47,926 | ||||||
Long-term debt | 2,171 | 2,190 | ||||||
Postretirement deferred compensation benefits | 3,084 | 3,104 | ||||||
Deferred income taxes | 457 | 457 | ||||||
Other | 911 | 1,038 | ||||||
Total liabilities | 43,467 | 54,715 | ||||||
Total shareholders' equity | 61,077 | 52,689 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 104,544 | $ | 107,404 |
Coachmen Industries, Inc. Announces First Quarter Results
Page 5
April 27, 2009
Coachmen Industries, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(in thousands)
(Unaudited)
Three Months Ended March 31, | ||||||||
2009 | 2008 | |||||||
Net income | $ | 8,313 | $ | 1,326 | ||||
Depreciation | 666 | 1,377 | ||||||
Changes in current assets and liabilities | (25,360 | ) | (19,147 | ) | ||||
Net cash used in operating activities | (16,381 | ) | (16,444 | ) | ||||
Net cash provided by (used in) investing activities | 2,423 | (1,768 | ) | |||||
Net borrowings | 682 | 19,196 | ||||||
Issuance of stock | (40 | ) | 35 | |||||
Net cash provided by financing activities | 642 | 19,231 | ||||||
Increase (decrease) in cash and cash equivalents | (13,316 | ) | 1,019 | |||||
Beginning of period | 15,745 | 1,549 | ||||||
End of period | $ | 2,429 | $ | 2,568 |
Coachmen Industries, Inc. Announces First Quarter Results
Page 6
April 27, 2009
Coachmen Industries, Inc. and Subsidiaries
Segment Data – Continuing Operations
(in thousands)
(Unaudited)
Three Months Ended March 31, | ||||||||
2009 | 2008 | |||||||
Net sales | ||||||||
Specialty Vehicles | $ | 1,071 | $ | - | ||||
Housing | 10,209 | 30,839 | ||||||
Other | - | - | ||||||
Consolidated total | $ | 11,280 | $ | 30,839 | ||||
Gross profit | ||||||||
Specialty Vehicles | $ | (433 | ) | $ | (146 | ) | ||
Housing | (1,634 | ) | 5,671 | |||||
Other | (9 | ) | (1 | ) | ||||
Consolidated total | $ | (2,076 | ) | $ | 5,524 | |||
Gross profit percentage | ||||||||
Specialty Vehicles | (40.4 | )% | - | % | ||||
Housing | (16.0 | )% | 18.4 | % | ||||
Other | n / m | % | n / m | % | ||||
Consolidated total | (18.4 | )% | 17.9 | % | ||||
Operating expenses | ||||||||
Specialty Vehicles | $ | 286 | $ | - | ||||
Housing | 2,846 | 4,291 | ||||||
Other | 1,095 | (40 | ) | |||||
Consolidated total | $ | 4,227 | $ | 4,251 | ||||
Operating expenses percentage | ||||||||
Specialty Vehicles | 26.7 | % | n / m | % | ||||
Housing | 27.9 | % | 13.9 | % | ||||
Other | n / m | % | n / m | % | ||||
Consolidated total | 37.5 | % | 13.8 | % | ||||
Operating income (loss) | ||||||||
Specialty Vehicles | $ | (719 | ) | $ | (146 | ) | ||
Housing | (4,479 | ) | 1,380 | |||||
Other | (1,105 | ) | 39 | |||||
Consolidated total | $ | (6,303 | ) | $ | 1,273 | |||
Pre-tax income (loss) from continuing operations | ||||||||
Specialty Vehicles | $ | (733 | ) | $ | (146 | ) | ||
Housing | (4,504 | ) | 1,358 | |||||
Other | (883 | ) | 40 | |||||
Consolidated total | $ | (6,120 | ) | $ | 1,252 |