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 July 29, 2009
COACHMEN INDUSTRIES, INC. ANNOUNCES IMPROVED SECOND QUARTER, PROFITABLE JUNE
Elkhart, IN - Coachmen Industries, Inc. (OTC:COHM.PK) today announced its financial results for the second quarter ended June 30, 2009.
“Overall, sales are less than one half what they were in 2008 as we continue to remain mired in the worst housing market in the last hundred years,” commented Richard M. Lavers, President and Chief Executive Officer. “However, our business is beginning to show significant improvement. We have shaved our losses to one third of what they were in the first quarter. We have experienced 3 months of modest but sequential revenue improvement, and both segments of our business posted modest profits in June. This is directly attributable to success in obtaining major project business, increased bus sales, and the steps taken to reduce our operating costs. We posted a positive gross profit and slashed GS & A. We were essentially cash-neutral from operating activities in the second quarter. Tail liabilities from the sale of the RV business last December continue to decline and appear to be on track with projections. We are now heading in the right direction despite general economic conditions.”
Net sales from continuing operations for the second quarter were $17.7 million, compared to $11.3 million for the first quarter of 2009. Gross profits for the quarter were $853,000 or 4.8% of revenue, as compared to a loss of ($2.1) million or (18.4%) of revenue in the first quarter of 2009. The Company reported a net loss from continuing operations of ($2.8) million, or ($0.18) per share, versus a net loss from continuing operations of ($6.1) million, or ($0.39) per share in the first quarter of 2009. Net loss, including discontinued operations, was ($3.2) million, or ($0.21) per share in the second quarter of 2009, versus a net loss of ($6.4) million, or ($0.41) per share in the first quarter of 2009.
Housing Group
“The Housing Group's core business of single family homes continues to suffer from abysmal conditions in the nationwide housing market. However, we have been successful at receiving contracts for several major projects, which are reflected in our improved quarterly results,” commented Housing Group President Rick Bedell. “Several additional major project opportunities are close to closing which could temper any continued slump in the single family housing market. Bonding continues to be an issue, not just for us, but for the entire industry.”
Coachmen Industries, Inc. Announces Improved Second Quarter Results
Page 2
July 29, 2009
Specialty Vehicle Group
“Sales of the Spirit of Mobility buses produced for our joint venture ARBOC Mobility are relatively modest, but each month we are continuing to increase the number of orders and shipments. The bankruptcy of General Motors has had a temporary impact on availability of vehicle chassis and consequently our ability to build and ship units, but that situation has resolved itself. We anticipate regular availability of chassis beginning in August. Accordingly, this segment of our business should be a profit contributor rather than a cash drain for the remainder of this year and beyond. This is particularly true given the increased government funding available through federal stimulus packages,” stated Lavers. “We will provide more details in an update to our shareholders that we will post later this week.”
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 Improved Second Quarter Results
Page 3
July 29, 2009
Coachmen Industries, Inc. and Subsidiaries
Consolidated Statements of Operations
(in thousands, except per share amounts)
(Unaudited)
| | | Three Months Ended June 30, | | | Six Months Ended June 30, | |
| | | 2009 | | | 2008 | | | 2009 | | | 2008 | |
| Net sales | | $ | 17,734 | | | $ | 38,332 | | | $ | 29,015 | | | $ | 69,172 | |
| | | | | | | | | | | | | | | | | |
| Gross profit - $ | | | 853 | | | | 6,967 | | | | (1,223 | ) | | | 12,491 | |
| Gross profit - % | | | 4.8 | % | | | 18.2 | % | | | (4.2 | )% | | | 18.1 | % |
| | | | | | | | | | | | | | | | | |
| GS&A - $ | | | 3,531 | | | | 4,016 | | | | 7,757 | | | | 8,292 | |
| GS&A - % | | | 19.9 | % | | | 10.5 | % | | | 26.7 | % | | | 12.0 | % |
| | | | | | | | | | | | | | | | | |
| Gain on sale of assets, net - $ | | | (15 | ) | | | (31 | ) | | | (14 | ) | | | (56 | ) |
| Gain on sale of assets, net - % | | | (0.1 | )% | | | (0.1 | )% | | | (0.0 | )% | | | (0.1 | )% |
| | | | | | | | | | | | | | | | | |
| Operating income (loss) - $ | | | (2,663 | ) | | | 2,982 | | | | (8,966 | ) | | | 4,255 | |
| Operating income (loss) - % | | | (15.0 | )% | | | 7.8 | % | | | (30.9 | )% | | | 6.2 | % |
| | | | | | | | | | | | | | | | | |
| Other (income) expense | | | 223 | | | | 38 | | | | 40 | | | | 58 | |
| | | | | | | | | | | | | | | | | |
| Pre-tax income (loss) from continuing operations - $ | | | (2,886 | ) | | | 2,944 | | | | (9,006 | ) | | | 4,197 | |
| Pre-tax income (loss) from continuing operations - % | | | (16.3 | )% | | | 7.7 | % | | | (31.0 | )% | | | 6.1 | % |
| | | | | | | | | | | | | | | | | |
| Tax expense (credit) | | | (53 | ) | | | - | | | | (53 | ) | | | - | |
| | | | | | | | | | | | | | | | | |
| Net income (loss) from continuing operations | | | (2,833 | ) | | | 2,944 | | | | (8,953 | ) | | | 4,197 | |
| | | | | | | | | | | | | | | | | |
| Discontinued operations: | | | | | | | | | | | | | | | | |
| Loss from discontinued RV operations (net of taxes) | | | (440 | ) | | | (5,915 | ) | | | (729 | ) | | | (6,024 | ) |
| Income on sale of discontinued RV assets (net of taxes) | | | 25 | | | | 8 | | | | 25 | | | | 191 | |
| Income from legal settlement (net of taxes of $188) | | | - | | | | - | | | | 14,722 | | | | - | |
| Income (loss) from discontinued operations | | | (415 | ) | | | (5,907 | ) | | | 14,018 | | | | (5,833 | ) |
| | | | | | | | | | | | | | | | | |
| Net income (loss) | | | (3,248 | ) | | | (2,963 | ) | | | 5,065 | | | | (1,636 | ) |
| | | | | | | | | | | | | | | | | |
| Income (loss) per share - Basic & Diluted | | | | | | | | | | | | | | | | |
| Continuing operations | | | (0.18 | ) | | | 0.19 | | | | (0.56 | ) | | | 0.27 | |
| Discontinued operations | | | (0.03 | ) | | | (0.37 | ) | | | 0.88 | | | | (0.37 | ) |
| Net income (loss) per share - Basic & Diluted | | $ | (0.21 | ) | | $ | (0.18 | ) | | $ | 0.32 | | | $ | (0.10 | ) |
| | | | | | | | | | | | | | | | | |
| Weighted average shares outstanding: | | | | | | | | | | | | | | | | |
| Basic | | | 15,819 | | | | 15,774 | | | | 15,883 | | | | 15,762 | |
| Diluted | | | 15,819 | | | | 15,774 | | | | 15,883 | | | | 15,762 | |
Coachmen Industries, Inc. Announces Improved Second Quarter Results
Page 4
July 29, 2009
Coachmen Industries, Inc. and Subsidiaries
Consolidated Balance Sheets
(in thousands)
| | | June 30, | | | December 31, | |
| | | 2009 | | | 2008 | |
| Assets | | (Unaudited) | | | | |
| CURRENT ASSETS | | | | | | |
| Cash and cash equivalents | | $ | 3,684 | | | $ | 15,745 | |
| Accounts receivable | | | 8,503 | | | | 1,837 | |
| Inventories | | | 19,503 | | | | 19,910 | |
| Prepaid expenses and other current assets | | | 15,796 | | | | 15,128 | |
| Total current assets | | | 47,486 | | | | 52,620 | |
| | | | | | | | | |
Property, plant and equipment, net | | | 29,513 | | | | 30,922 | |
| Other | | | 20,709 | | | | 23,862 | |
| TOTAL ASSETS | | $ | 97,708 | | | $ | 107,404 | |
| | | | | | | | | |
| Liabilities and Shareholders' Equity | | | | | | | | |
| CURRENT LIABILITIES | | | | | | | | |
| Short-term borrowings & current portion of LT debt | | $ | 977 | | | $ | 819 | |
| Accounts payable, trade | | | 9,642 | | | | 11,414 | |
| Accrued expenses and other liabilities | | | 20,926 | | | | 32,597 | |
| Floorplan notes payable | | | - | | | | 3,096 | |
| Total current liabilities | | | 31,545 | | | | 47,926 | |
| | | | | | | | | |
| Long-term debt | | | 3,822 | | | | 2,190 | |
| Other long-term liabilities | | | 4,325 | | | | 4,599 | |
| Total liabilities | | | 39,692 | | | | 54,715 | |
| | | | | | | | | |
| Total shareholders' equity | | | 58,016 | | | | 52,689 | |
| | | | | | | | | |
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | | $ | 97,708 | | | $ | 107,404 | |
Condensed Consolidated Statements of Cash Flows
(Unaudited) (in thousands)
| | | Six Months Ended June 30, | |
| | | 2009 | | | 2008 | |
| | | | | | | |
| Net income (loss) | | $ | 5,065 | | | $ | (1,636 | ) |
| Depreciation | | | 1,325 | | | | 2,688 | |
| Changes in current assets and liabilities | | | (22,740 | ) | | | (19,654 | ) |
| Net cash used in operating activities | | | (16,350 | ) | | | (18,602 | ) |
| | | | | | | | | |
| Net cash provided by (used in) investing activities | | | 4,180 | | | | (2,270 | ) |
| | | | | | | | | |
| Net borrowings | | | 146 | | | | 21,525 | |
| Issuance (purchase) of stock | | | (37 | ) | | | 77 | |
| Net cash provided by financing activities | | | 109 | | | | 21,602 | |
| | | | | | | | | |
| Increase (decrease) in cash and cash equivalents | | | (12,061 | ) | | | 730 | |
| | | | | | | | | |
| Beginning of period cash and cash equivalents | | | 15,745 | | | | 1,549 | |
| | | | | | | | | |
| End of period cash and cash equivalents | | $ | 3,684 | | | $ | 2,279 | |
Coachmen Industries, Inc. Announces Improved Second Quarter Results
Page 5
July 29, 2009
Coachmen Industries, Inc. and Subsidiaries
Segment Data – Continuing Operations
(in thousands)
(Unaudited)
| | Three Months Ended June 30, | | Six Months Ended June 30, | |
| | 2009 | | 2008 | | 2009 | | 2008 | |
| Net sales | | | | | | | | | | | | |
| Specialty Vehicles | | $ | 2,867 | | | $ | 406 | | | $ | 3,939 | | | $ | 406 | |
| Housing | | | 14,867 | | | | 37,926 | | | | 25,076 | | | | 68,766 | |
| Other | | | - | | | | - | | | | - | | | | - | |
| | | | | | | | | | | | | | | | | |
| Consolidated total | | $ | 17,734 | | | $ | 38,332 | | | $ | 29,015 | | | $ | 69,172 | |
| | | | | | | | | | | | | | | | | |
| Gross profit | | | | | | | | | | | | | | | | |
| Specialty Vehicles | | $ | (162 | ) | | $ | (160 | ) | | $ | (595 | ) | | $ | (306 | ) |
| Housing | | | 1,021 | | | | 7,127 | | | | (613 | ) | | | 12,798 | |
| Other | | | (6 | ) | | | - | | | | (15 | ) | | | (1 | ) |
| | | | | | | | | | | | | | | | | |
| Consolidated total | | $ | 853 | | | $ | 6,967 | | | $ | (1,223 | ) | | $ | 12,491 | |
| | | | | | | | | | | | | | | | | |
| Operating expenses | | | | | | | | | | | | | | | | |
| Specialty Vehicles | | $ | 288 | | | $ | - | | | $ | 573 | | | $ | - | |
| Housing | | | 3,198 | | | | 4,027 | | | | 6,044 | | | | 8,317 | |
| Other | | | 30 | | | | (42 | ) | | | 1,126 | | | | (81 | ) |
| | | | | | | | | | | | | | | | | |
| Consolidated total | | $ | 3,516 | | | $ | 3,985 | | | $ | 7,743 | | | $ | 8,236 | |
| | | | | | | | | | | | | | | | | |
| Operating income (loss) | | | | | | | | | | | | | | | | |
| Specialty Vehicles | | $ | (450 | ) | | $ | (160 | ) | | $ | (1,168 | ) | | $ | (306 | ) |
| Housing | | | (2,177 | ) | | | 3,100 | | | | (6,656 | ) | | | 4,481 | |
| Other | | | (36 | ) | | | 42 | | | | (1,142 | ) | | | 80 | |
| | | | | | | | | | | | | | | | | |
| Consolidated total | | $ | (2,663 | ) | | $ | 2,982 | | | $ | (8,966 | ) | | $ | 4,255 | |
| | | | | | | | | | | | | | | | | |
| Pre-tax income (loss) from continuing operations | | | | | | | | | | | | | | | | |
| Specialty Vehicles | | $ | (435 | ) | | $ | (160 | ) | | $ | (1,169 | ) | | $ | (306 | ) |
| Housing | | | (2,212 | ) | | | 3,051 | | | | (6,716 | ) | | | 4,409 | |
| Other | | | (239 | ) | | | 53 | | | | (1,121 | ) | | | 94 | |
| | | | | | | | | | | | | | | | | |
| Consolidated total | | $ | (2,886 | ) | | $ | 2,944 | | | $ | (9,006 | ) | | $ | 4,197 | |
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