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 October 28, 2009
COACHMEN INDUSTRIES, INC. GENERATES POSITIVE OPERATING CASH AND FIRST QUARTERLY PROFIT FROM BUSES DESPITE CONSOLIDATED THIRD QUARTER LOSS
Elkhart, IN - Coachmen Industries, Inc. (OTC:COHM.PK) today announced its financial results for the third quarter ended September 30, 2009.
“Despite many predictions in the popular and trade press that the housing market would turn in the second half of this year, through the third quarter, our Company saw no sales evidence of any rebound in the housing markets; the beginning of the end of the slide, a bottoming, perhaps, but no sign of any increase,” commented Richard M. Lavers, President and Chief Executive Officer. “Year-over-year comparisons were affected by the decrease in sales revenue due to the housing markets, however, I am very pleased that we generated positive cash flow from operations of more than $2 million during the third quarter and that our unrestricted cash balance increased during the quarter by $1.1 million. In these economic conditions, cash conservation is critical. We placed a premium on managing our available resources prudently, and these results attest to those efforts. The announcement we made today of a new $20 million financing arrangement, coupled with the word of more than $16 million in new major housing projects, is also very good news for our Company.”
Net sales from continuing operations for the third quarter were $16.1 million, compared to $31.6 million for the third quarter of 2008. Gross profits for the quarter were a loss of ($944,000), or (5.9)% of revenue, as compared to a gross profit of $4.85 million, or 15.4% of revenue, in the third quarter of 2008. The Company reported a net loss from continuing operations of ($5.19) million, or ($0.32) per share, versus a net loss from continuing operations of ($3.8) million, or ($0.24) per share, in the third quarter of 2008. Net loss, including discontinued operations, was ($3.9) million, or ($0.24) per share in the third quarter of 2009, versus a net loss of ($14.5) million, or ($0.92) per share in the third quarter of 2008. Net book value per share as of September 30, 2009 was $3.40.
Housing Group
Housing Group President Rick Bedell commented: “The loss generated by the Housing Group during the quarter is largely attributable to under-absorption of overhead due to low production levels as a direct result of continuing market conditions. One of the biggest challenges in the Housing Group's core business of single-family homes has been financing for our customers. We have a steady stream of people who want to buy our homes, but who are unable to obtain financing because of prevailing credit restrictions. We also experienced delays in a number of major project contracts during the third quarter.”
Coachmen Industries, Inc. Announces Third Quarter Results
Page 2 of 4
October 28, 2009
Specialty Vehicle Group
Lavers concluded: “Sales of the Spirit of Mobility buses produced for our joint venture ARBOC Mobility continue to increase. However, the rate of increase was slowed by production issues at General Motors, most notably the plant shutdowns during the summer months, which delayed 2009 chassis shipments to September. Despite these challenges, and although the Specialty Vehicle Group (including the tail of some service parts operations) reported a slight overall loss for the quarter, this is the first full quarter that the bus portion of this segment has reported a profit. We anticipate this upward trend will continue.”
The Company will provide more details in an update to its shareholders to be issued within the next week.
About Coachmen Industries
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 Third Quarter Results
Page 3 of 4
October 28, 2009
Coachmen Industries, Inc. and Subsidiaries
Coachmen Industries, Inc. and Subsidiaries
