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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 February 1, 2010
COACHMEN INDUSTRIES, INC. ANNOUNCES MUCH-IMPROVED FOURTH QUARTER 2009 RESULTS
Elkhart, IN - Coachmen Industries, Inc. (OTC:COHM.PK) today announced its financial results for the fourth quarter of 2009, ending December 31, 2009.
“The housing markets may have stopped their freefall, but they have not yet begun to improve. Quarterly sales in our primary housing business were 44% less than what they were in the same quarter in 2008,” commented Richard M. Lavers, President and Chief Executive Officer. “Nonetheless, we improved our gross profit more than 31 times year over year, and our losses in the fourth quarter were about 1/6th of the prior year’s loss. Our Specialty Vehicles business is showing significant growth, with quarterly sales revenue up more than 365% as compared to the same quarter last year. These improvements show that we remain headed in the right direction, despite general economic conditions.”
Net sales from continuing operations for the fourth quarter were $15.5 million compared to $18.9 million reported for the same period in 2008. Gross profits for the quarter were up to $1.13 million or 7.3% of revenues, compared to a gross profit of $36,000 or 0.19% of revenues for the fourth quarter of 2008. The Company reported a net loss from continuing operations of ($3.06) million, or ($0.19) per share, versus a net loss from continuing operations of ($19.1) million, or ($1.21) per share in the fourth quarter of 2008. Net loss, including discontinued operations, was ($2.87) million, or ($0.18) per share in the fourth quarter of 2009, versus a net loss of ($52.9) million, or ($3.35) per share in the fourth quarter of 2008.
Housing Group
“While the Housing Group's single-family homes business remains adversely affected by the nationwide housing market, we have been successful at receiving contracts for several major projects, which are reflected in our fourth quarter results,” commented Housing Group President Rick Bedell. “We continue to pursue a number of major project opportunities, and expect that these opportunities will help us better utilize our factories when the slump in the single-family housing market ends.”
Coachmen Industries, Inc. Announces Much Improved Fourth Quarter 2009 Results
Page 2
February 1, 2010
Specialty Vehicle Group
“While sales of the Spirit of Mobility buses produced for our joint venture ARBOC Mobility remain relatively modest, we are achieving continuous increases in orders and shipments. Our sales in this business segment were up more than four and one half times as compared to the fourth quarter of 2008. We expect this segment of our business will continue to grow during 2010,” stated Lavers.
Coachmen Industries, Inc., doing business as All American Group, 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 Much Improved Fourth Quarter 2009 Results
Page 3
February 1, 2010
Coachmen Industries, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
(Unaudited)
| | | Three Months Ended December 31, | | Twelve Months Ended December 31, | |
| | | 2009 | | 2008 | | | 2009 | | 2008 | |
| | | | | | | | | | | | | | | |
| Net sales | | $ | 15,535 | | $ | 18,859 | | | $ | 60,623 | | $ | 119,596 | |
| | | | | | | | | | | | | | | |
| Gross profit (loss) - $ | | | 1,132 | | | 36 | | | | (1,036 | ) | | 17,379 | |
| | | | | | | | | | | | | | | |
| Pre-tax income (loss) from continuing operations | | | (3,388 | ) | | (20,619 | ) | | | (17,554 | ) | | (20,218 | ) |
| | | | | | | | | | | | | | | |
| NNet income (loss) from continuing operations | | | (3,061 | ) | | (19,080 | ) | | | (17,208 | ) | | (18,679 | ) |
| | | | | | | | | | | | | | | |
| Income (loss) from discontinued operations | | | 190 | | | (33,823 | ) | | | 15,507 | | | (50,323 | ) |
| | | | | | | | | | | | | | | |
| Net (loss) | | | (2,870 | ) | | (52,903 | ) | | | (1,701 | ) | | (69,002 | ) |
| | | | | | | | | | | | | | | |
| Net (loss) per share - Basic & Diluted | | $ | (0.18 | ) | $ | (3.35 | ) | | $ | (0.11 | ) | $ | (4.37 | ) |
| | | | | | | | | | | | | | | |
| Weighted average shares outstanding - Basic | | | 16,134 | | | 15,833 | | | | 16,073 | | | 15,799 | |
| Weighted average shares outstanding - Diluted | | | 16,134 | | | 15,833 | | | | 16,073 | | | 15,799 | |
Condensed Segment Data – Continuing Operations
(Unaudited) (in thousands)
| | | Three Months Ended December 31, | | Twelve Months Ended December 31, | |
| | | 2009 | | 2008 | | 2009 | | 2008 | |
| Net sales | | | | | | | | | | | | | |
| Specialty Vehicles | | $ | 5,605 | | $ | 1,197 | | $ | 13,493 | | $ | 2,405 | |
| Housing | | | 9,930 | | | 17,662 | | | 47,130 | | | 117,191 | |
| | | | | | | | | | | | | | |
| Consolidated total | | $ | 15,535 | | $ | 18,859 | | $ | 60,623 | | $ | 119,596 | |
| | | | | | | | | | | | | | |
| Gross profit | | | | | | | | | | | | | |
| Specialty Vehicles | | $ | 641 | | $ | (249 | ) | $ | 310 | | $ | (635 | ) |
| Housing | | | 540 | | | 285 | | | (1,275 | ) | | 18,014 | |
| Other | | | (49 | ) | | - | | | (71 | ) | | - | |
| | | | | | | | | | | | | | |
| Consolidated total | | $ | 1,132 | | $ | 36 | | $ | (1,036 | ) | $ | 17,379 | |
| | | | | | | | | | | | | | |
| Pre-tax income (loss) from continuing operations | | | | | | | | | | | | | |
| Specialty Vehicles | | $ | 334 | | $ | (250 | ) | $ | (856 | ) | $ | (635 | ) |
| Housing | | | (2,547 | ) | | (3,656 | ) | | (13,914 | ) | | 1,324 | |
| Other | | | (1,175 | ) | | (16,713 | ) | | (2,784 | ) | | (20,907 | ) |
| | | | | | | | | | | | | | |
| Consolidated total | | $ | (3,388 | ) | $ | (20,619 | ) | $ | (17,554 | ) | $ | (20,218 | ) |
Coachmen Industries, Inc. Announces Much Improved Fourth Quarter 2009 Results
Page 4
February 1, 2010
Coachmen Industries, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands)
| | | | December 31, | | | December 31, | |
| | | | 2009 | | | 2008 | |
| Assets | | | (Unaudited) | | | | |
| CURRENT ASSETS | | | | | | | |
| Cash and cash equivalents | | $ | 6,352 | | $ | 15,745 | |
| Restricted Cash | | | 10,191 | | | 1,600 | |
| Receivables | | | 4,589 | | | 6,503 | |
| Inventories | | | 21,566 | | | 19,910 | |
| Prepaid expenses and other current assets | | | 10,923 | | | 8,862 | |
| Total current assets | | | 53,621 | | | 52,620 | |
| | | | | | | | |
Property, plant and equipment, net | | | 28,787 | | | 30,922 | |
| Other | | | 7,641 | | | 23,862 | |
| TOTAL ASSETS | | $ | 90,049 | | $ | 107,404 | |
| | | | | | | | |
| Liabilities and Shareholders' Equity | | | | | | | |
| CURRENT LIABILITIES | | | | | | | |
| Short-term borrowings & current portion of LT debt | | $ | 369 | | $ | 819 | |
| Accounts payable, trade | | | 9,132 | | | 11,414 | |
| Accrued expenses and other liabilities | | | 12,624 | | | 32,597 | |
| Floorplan notes payable | | | - | | | 3,096 | |
| Total current liabilities | | | 22,125 | | | 47,926 | |
| | | | | | | | |
| Long-term debt | | | 2,828 | | | 2,190 | |
| Other long-term liabilities | | | 3,709 | | | 4,599 | |
| Total liabilities | | | 28,662 | | | 54,715 | |
| | | | | | | | |
| Total shareholders' equity | | | 61,387 | | | 52,689 | |
| | | | | | | | |
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | | $ | 90,049 | | $ | 107,404 | |
Condensed Consolidated Statements of Cash Flows
(Unaudited) (in thousands)
| | Twelve Months Ended December 31, |
| | | 2009 | | 2008 | |
| | | | | | | | |
| Net (loss) | | $ | (1,701 | ) | $ | (69,002 | ) |
| Depreciation and amortization | | | 3,514 | | | 4,225 | |
| Changes in current assets and liabilities | | | (24,282 | ) | | 55,169 | |
| Net cash used in operating activities | | | (22,469 | ) | | (9,608 | ) |
| | | | | | | | |
| Net cash provided by investing activities | | | 7,696 | | | 15,686 | |
| | | | | | | | |
| Net borrowings | | | 5,405 | | | 8,037 | |
| Issuance (purchase) of stock | | | (25 | ) | | 81 | |
| Net cash provided by financing activities | | | 5,380 | | | 8,118 | |
| | | | | | | | |
| Increase (decrease) in cash and cash equivalents | | | (9,393 | ) | | 14,196 | |
| | | | | | | | |
| Beginning of period cash and cash equivalents | | | 15,745 | | | 1,549 | |
| | | | | | | | |
| End of period cash and cash equivalents | | $ | 6,352 | | $ | 15,745 | |
