Exhibit 99.2
Fleetwood Enterprises, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS (CONDENSED)
Quarter Ended January 23, 2005
(Unaudited)
(Amounts in thousands except per share data)
|
| 13 Weeks Ended |
| 39 Weeks Ended |
| ||||||||
|
| 23-Jan-05 |
| 25-Jan-04 |
| 23-Jan-05 |
| 25-Jan-04 |
| ||||
Net Sales: |
|
|
|
|
|
|
|
|
| ||||
RV Group |
| $ | 342,591 |
| $ | 410,006 |
| $ | 1,278,574 |
| $ | 1,296,557 |
|
Housing Group |
| 207,426 |
| 176,540 |
| 677,906 |
| 591,177 |
| ||||
Supply Group |
| 12,711 |
| 9,756 |
| 42,943 |
| 27,450 |
| ||||
Financial Services |
| 2,188 |
| 1,448 |
| 5,934 |
| 3,440 |
| ||||
|
| 564,916 |
| 597,750 |
| 2,005,357 |
| 1,918,624 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Cost of products sold |
| 474,147 |
| 491,223 |
| 1,641,520 |
| 1,569,586 |
| ||||
Gross profit |
| 90,769 |
| 106,527 |
| 363,837 |
| 349,038 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Operating expenses |
| 123,076 |
| 107,420 |
| 359,986 |
| 319,142 |
| ||||
Financial services expenses |
| 2,346 |
| 1,659 |
| 6,516 |
| 4,552 |
| ||||
Other, net |
| 13,615 |
| (3,966 | ) | 13,798 |
| (4,661 | ) | ||||
|
| 139,037 |
| 105,113 |
| 380,300 |
| 319,033 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Operating income (loss) |
| (48,268 | ) | 1,414 |
| (16,463 | ) | 30,005 |
| ||||
Other income (expense) |
|
|
|
|
|
|
|
|
| ||||
Investment income |
| 1,020 |
| 617 |
| 2,030 |
| 2,007 |
| ||||
Interest expense |
| (7,772 | ) | (11,818 | ) | (22,535 | ) | (33,922 | ) | ||||
Other, net |
| — |
| — |
| (1,608 | ) | — |
| ||||
|
| (6,752 | ) | (11,201 | ) | (22,113 | ) | (31,915 | ) | ||||
|
|
|
|
|
|
|
|
|
| ||||
Loss before income taxes |
| (55,020 | ) | (9,787 | ) | (38,576 | ) | (1,910 | ) | ||||
Benefit (provision) for income taxes |
| 331 |
| (384 | ) | (1,310 | ) | (2,587 | ) | ||||
|
|
|
|
|
|
|
|
|
| ||||
Net loss |
| $ | (54,689 | ) | $ | (10,171 | ) | $ | (39,886 | ) | $ | (4,497 | ) |
|
| Basic |
| Diluted |
| Basic |
| Diluted |
| Basic |
| Diluted |
| Basic |
| Diluted |
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Net loss per common share |
| $ | (.99 | ) | $ | (.99 | ) | $ | (.26 | ) | $ | (.26 | ) | $ | (.72 | ) | $ | (.72 | ) | $ | (.12 | ) | $ | (.12 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Weighted average common shares |
| 55,492 |
| 55,492 |
| 38,871 |
| 38,871 |
| 55,193 |
| 55,193 |
| 36,977 |
| 36,977 |
| ||||||||
Fleetwood Enterprises, Inc.
CONSOLIDATED BALANCE SHEETS (CONDENSED)
Quarter Ended January 23, 2005
(Unaudited)
(Amounts in thousands)
|
| 23-Jan-05 |
| 24-Oct-04 |
| 25-Jan-04 |
| |||
ASSETS |
|
|
|
|
|
|
| |||
|
|
|
|
|
|
|
| |||
Current assets: |
|
|
|
|
|
|
| |||
Cash |
| $ | 1,317 |
| $ | 68 |
| $ | 13,412 |
|
Marketable investments - available for sale |
| 28,058 |
| 40,006 |
| 69,036 |
| |||
Receivables |
| 208,680 |
| 238,610 |
| 198,645 |
| |||
Inventories |
| 362,809 |
| 327,403 |
| 257,674 |
| |||
Deferred taxes, net |
| 56,905 |
| 58,065 |
| 58,488 |
| |||
Other current assets |
| 14,510 |
| 22,511 |
| 18,777 |
| |||
Total current assets |
| 672,279 |
| 686,663 |
| 616,032 |
| |||
|
|
|
|
|
|
|
| |||
Finance loans receivable, net |
| 65,391 |
| 60,248 |
| 38,551 |
| |||
Property, plant and equipment, net |
| 262,427 |
| 265,263 |
| 255,014 |
| |||
Deferred taxes, net |
| 17,858 |
| 17,858 |
| 31,275 |
| |||
Cash value of Company-owned life insurance, net |
| 39,689 |
| 49,341 |
| 49,487 |
| |||
Goodwill |
| 6,316 |
| 6,316 |
| 6,316 |
| |||
Other assets |
| 47,901 |
| 48,591 |
| 61,913 |
| |||
Total assets |
| $ | 1,111,861 |
| $ | 1,134,280 |
| $ | 1,058,588 |
|
|
|
|
|
|
|
|
| |||
LIABILITIES & SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
| |||
|
|
|
|
|
|
|
| |||
Current liabilities: |
|
|
|
|
|
|
| |||
Accounts payable |
| $ | 81,332 |
| $ | 100,731 |
| $ | 81,413 |
|
Employee compensation & benefits |
| 72,638 |
| 80,970 |
| 74,303 |
| |||
Product warranty reserve |
| 60,641 |
| 58,443 |
| 55,817 |
| |||
Retail flooring liability |
| 32,720 |
| 28,065 |
| 19,349 |
| |||
Other short-term borrowings |
| 92,712 |
| 54,920 |
| — |
| |||
Accrued interest |
| 47,732 |
| 44,899 |
| 36,910 |
| |||
Other current liabilities |
| 87,414 |
| 65,841 |
| 63,242 |
| |||
Total current liabilities |
| 475,189 |
| 433,869 |
| 331,034 |
| |||
|
|
|
|
|
|
|
| |||
Deferred compensation and retirement benefits |
| 41,477 |
| 50,798 |
| 51,880 |
| |||
Insurance reserves |
| 32,628 |
| 32,693 |
| 31,685 |
| |||
Long-term debt |
| 108,253 |
| 108,688 |
| 102,211 |
| |||
Convertible subordinated debentures |
| 210,142 |
| 210,142 |
| 403,905 |
| |||
Total liabilities |
| 867,689 |
| 836,190 |
| 920,715 |
| |||
|
|
|
|
|
|
|
| |||
Commitments and contingencies |
|
|
|
|
|
|
| |||
|
|
|
|
|
|
|
| |||
Shareholders’ equity: |
|
|
|
|
|
|
| |||
Common stock |
|
|
|
|
|
|
| |||
Additional paid-in-capital |
| 55,544 |
| 55,464 |
| 39,129 |
| |||
Accumulated deficit |
| 422,225 |
| 421,719 |
| 276,101 |
| |||
Accumulated other comprehensive income (loss) |
| (235,223 | ) | (180,534 | ) | (177,573 | ) | |||
Total shareholders’ equity |
| 1,626 |
| 1,441 |
| 216 |
| |||
Total liabilities and shareholders’ equity |
| 244,172 |
| 298,090 |
| 137,873 |
| |||
|
| $ | 1,111,861 |
| $ | 1,134,280 |
| $ | 1,058,588 |
|
Fleetwood Enterprises, Inc.
BUSINESS SEGMENT AND UNIT SHIPMENT INFORMATION
Quarter Ended January 23, 2005
(Unaudited)
(Amounts in thousands)
|
| 13 Weeks Ended |
| 39 Weeks Ended |
| ||||||||||||||
|
| Jan 23, 2005 |
| Jan 25, 2004 |
| Jan 23, 2005 |
| Jan 25, 2004 |
| ||||||||||
OPERATING REVENUES: |
|
|
|
|
|
|
|
|
| ||||||||||
Recreational vehicles |
| $ | 342,591 |
| $ | 410,006 |
| $ | 1,278,574 |
| $ | 1,296,557 |
| ||||||
Housing |
| 207,426 |
| 176,540 |
| 677,906 |
| 591,177 |
| ||||||||||
Supply operations |
| 12,711 |
| 9,756 |
| 42,943 |
| 27,450 |
| ||||||||||
Financial services |
| 2,188 |
| 1,448 |
| 5,934 |
| 3,440 |
| ||||||||||
|
| $ | 564,916 |
| $ | 597,750 |
| $ | 2,005,357 |
| $ | 1,918,624 |
| ||||||
|
|
|
|
|
|
|
|
|
| ||||||||||
OPERATING INCOME (LOSS): |
|
|
|
|
|
|
|
|
| ||||||||||
Recreational vehicles |
| $ | (33,495 | ) | $ | 9,521 |
| $ | (9,342 | ) | $ | 41,601 |
| ||||||
Housing |
| (14,042 | ) | (9,981 | ) | (8,813 | ) | (18,451 | ) | ||||||||||
Supply operations |
| 590 |
| 2,935 |
| 3,362 |
| 4,077 |
| ||||||||||
Financial services |
| (158 | ) | (210 | ) | (581 | ) | (1,111 | ) | ||||||||||
Corporate and other |
| (1,163 | ) | (851 | ) | (1,089 | ) | 3,889 |
| ||||||||||
|
| $ | (48,268 | ) | $ | 1,414 |
| $ | (16,463 | ) | $ | 30,005 |
| ||||||
|
|
|
|
|
|
|
|
|
| ||||||||||
UNITS SOLD: |
|
|
|
|
|
|
|
|
| ||||||||||
Manufactured housing - |
|
|
|
|
|
|
|
|
| ||||||||||
Factory shipments |
| 5,533 |
| 4,628 |
| 18,277 |
| 15,509 |
| ||||||||||
Retail sales |
| 884 |
| 1,272 |
| 3,211 |
| 3,809 |
| ||||||||||
Less intercompany |
| (794 | ) | (948 | ) | (2,746 | ) | (2,844 | ) | ||||||||||
|
| 5,623 |
| 4,952 |
| 18,742 |
| 16,474 |
| ||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||
Recreational vehicles - |
|
|
|
|
|
|
|
|
| ||||||||||
Motor homes |
| 2,097 |
| 2,663 |
| 8,210 |
| 8,183 |
| ||||||||||
Towables |
| 8,433 |
| 10,284 |
| 30,434 |
| 36,071 |
| ||||||||||
|
| 10,530 |
| 12,947 |
| 38,644 |
| 44,254 |
| ||||||||||
###
Fleetwood Enterprises, Inc.
SUPPLEMENTAL OPERATING DATA
Quarter Ended January 23, 2005
(Unaudited)
(Dollars in thousands, except price per unit)
|
| Housing Group |
| Recreational Vehicle Group |
|
|
|
|
|
|
|
|
| |||||||||||||||||||||
|
| Wholesale |
| Retail |
| Intercompany |
| Total |
| Motor |
| Towables |
| Total |
| Supply |
| Financial |
| Other |
| Company |
| |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
Operating revenues |
| $ | 183,734 |
| $ | 53,567 |
| $ | (29,875 | ) | $ | 207,426 |
| $ | 231,073 |
| $ | 111,518 |
| $ | 342,591 |
| $ | 12,711 | (A) | $ | 2,188 |
| $ | — |
| $ | 564,916 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
Units sold |
| 5,533 |
| 884 |
| (794 | ) | NM |
| 2,097 |
| 8,433 |
| 10,530 |
|
|
|
|
|
|
|
|
| |||||||||||
Single-sections |
| 1,518 |
| 148 |
| (93 | ) | NM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
Multi-sections |
| 4,015 |
| 627 |
| (701 | ) | NM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
Pre-owned (retail only) |
|
|
| 109 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
Class As |
|
|
|
|
|
|
|
|
| 1,784 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
Class Cs |
|
|
|
|
|
|
|
|
| 313 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
Conventional trailers |
|
|
|
|
|
|
|
|
|
|
| 4,837 |
|
|
|
|
|
|
|
|
|
|
| |||||||||||
Fifth-wheel trailers |
|
|
|
|
|
|
|
|
|
|
| 1,262 |
|
|
|
|
|
|
|
|
|
|
| |||||||||||
Folding trailers |
|
|
|
|
|
|
|
|
|
|
| 2,334 |
|
|
|
|
|
|
|
|
|
|
| |||||||||||
|
|
|
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|
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|
|
|
|
|
|
| |||||||||||
Average selling price per unit |
| $ | 33,207 |
| $ | 60,596 |
| $ | 37,626 |
| NM |
| $ | 110,192 |
| $ | 13,224 |
| NM |
|
|
|
|
|
|
|
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| ||||||
|
|
|
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|
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|
|
| |||||||||||
Gross profit percent |
| 21.2 | % | 20.1 | % | NM |
| 23.7 | % | 14.3 | % | 4.0 | % | 11.0 | % | 14.5 | % | NM |
| NM |
| 16.1 | % | |||||||||||
|
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|
|
|
|
|
|
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|
|
|
|
|
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|
|
|
| |||||||||||
Operating income (loss) |
| $ | (4,367 | ) | $ | (9,037 | ) | $ | (638 | ) | $ | (14,042 | ) | $ | 897 |
| $ | (34,392 | ) | $ | (33,495 | ) | $ | 590 |
| $ | (158 | ) | $ | (1,163 | ) | $ | (48,268 | ) |
|
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|
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|
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| |||||||||||
Operating margin |
| (2.4 | )% | (16.9 | )% | NM |
| (6.8 | )% | 0.4 | % | (30.8 | )% | (9.8 | )% | 4.6 | % | NM |
| NM |
| (8.5 | )% | |||||||||||
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
Depreciation |
| $ | 1,807 |
| $ | 1,186 |
| $ | — |
| $ | 2,993 |
| $ | 1,214 |
| $ | 884 |
| $ | 2,098 |
| $ | 371 |
| $ | 21 |
| $ | 1,448 |
| $ | 6,931 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
Capital expenditures (est.) |
| $ | 981 |
| $ | 353 |
| $ | — |
| $ | 1,334 |
| $ | 5,081 |
| $ | 662 |
| $ | 5,743 |
| $ | 289 |
| $ | 122 |
| $ | 627 |
| $ | 8,115 |
|
(A) Excludes $38.1 million of intercompany sales.
NM Not meaningful.
Fleetwood Enterprises, Inc.
SUPPLEMENTAL OPERATIONAL DATA
Fiscal Year-To-Date January 23, 2005
(Unaudited)
(Dollars in thousands, except price per unit)
|
| Housing Group |
| Recreational Vehicle Group |
|
|
|
|
|
|
|
|
| ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| Motor |
|
|
|
|
|
|
| Financial |
|
|
| Company |
| ||||||||||||
|
| Wholesale |
| Retail |
| Intercompany |
| Total |
| Homes |
| Towables |
| Total |
| Supply |
| Services |
| Other |
| Total |
| ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Operating revenues |
| $ | 593,298 |
| $ | 184,900 |
| $ | (100,292 | ) | $ | 677,906 |
| $ | 851,282 |
| $ | 427,292 |
| $ | 1,278,574 |
| $ | 42,943 | (A) | $ | 5,934 |
| $ | — |
| $ | 2,005,357 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Units sold |
| 18,277 |
| 3,211 |
| (2,746 | ) | NM |
| 8,210 |
| 30,434 |
| 38,644 |
|
|
|
|
|
|
|
|
| ||||||||||||
Single-sections |
| 6,118 |
| 518 |
| (585 | ) | NM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Multi-sections |
| 12,159 |
| 2,303 |
| (2,161 | ) | NM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Pre-owned (retail only) |
|
|
| 390 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Class As |
|
|
|
|
|
|
|
|
| 6,474 |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Class Cs |
|
|
|
|
|
|
|
|
| 1,736 |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Conventional trailers |
|
|
|
|
|
|
|
|
|
|
| 16,712 |
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Fifth-wheel trailers |
|
|
|
|
|
|
|
|
|
|
| 5,106 |
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Folding trailers |
|
|
|
|
|
|
|
|
|
|
| 8,616 |
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Average selling price per unit |
| $ | 32,461 |
| $ | 57,583 |
| $ | 36,523 |
| NM |
| $ | 103,688 |
| $ | 14,040 |
| NM |
|
|
|
|
|
|
|
|
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Gross profit percent |
| 23.2 | % | 20.5 | % | NM |
| 25.8 | % | 15.2 | % | 10.0 | % | 13.5 | % | 17.1 | % | NM |
| NM |
| 18.1 | % | ||||||||||||
|
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|
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|
|
|
|
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Operating income (loss) |
| $ | 13,418 |
| $ | (21,448 | ) | $ | (783 | ) | $ | (8,813 | ) | $ | 32,887 |
| $ | (42,229 | ) | $ | (9,342 | ) | $ | 3,362 |
| $ | (581 | ) | $ | (1,089 | ) | $ | (16,463 | ) | |
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Operating margin |
| 2.3 | % | (11.6 | )% | 0.8 | % | (1.3 | )% | 3.9 | % | (9.9 | )% | (0.7 | )% | 7.8 | % | NM |
| NM |
| (0.8 | )% | ||||||||||||
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Depreciation |
| $ | 5,197 |
| $ | 3,682 |
| $ | — |
| $ | 8,879 |
| $ | 3,012 |
| $ | 2,671 |
| $ | 5,683 |
| $ | 1,166 |
| $ | 52 |
| $ | 4,333 |
| $ | 20,113 |
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Capital expenditures (est.) |
| $ | 3,233 |
| $ | 478 |
| $ | — |
| $ | 3,711 |
| $ | 18,083 |
| $ | 1,487 |
| $ | 19,570 |
| $ | 1,145 |
| $ | 156 |
| $ | 4,060 |
| $ | 28,642 |
| |
(A) Excludes $137.2 million of intercompany sales.
NM Not meaningful.
Fleetwood Enterprises, Inc.
SUPPLEMENTAL OPERATIONAL DATA
Quarter Ended January 23, 2005
(Unaudited)
(Dollars in thousands)
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| Housing Group |
| Recreational Vehicle Group |
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| Wholesale |
| Retail |
| Total |
| Motor |
| Towables |
| Total |
| Supply |
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Number of facilities (A) |
| 23 |
| 130 |
| NM |
| 3 |
| 8 |
| 11 |
| 3 |
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Capacity utilization (B) |
| 58 | % | NM |
| NM |
| 74 | % | 51 | % | NM |
| NM |
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Number of independent |
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distribution points |
| 1,282 |
| NM |
| NM |
| 258 |
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| NM |
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Travel trailers (C) |
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| 608 |
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Folding trailers (C) |
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| 503 |
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Backlog units |
| 1,834 |
| 1,385 |
| NM |
| 769 |
| 3,637 |
| 4,406 |
| NM |
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Sales value (D) |
| $ | 60,902 |
| $ | 83,926 |
| NM |
| $ | 84,738 |
| $ | 46,814 |
| $ | 131,552 |
| NM |
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Dealer inventories (units) |
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| 5,062 |
| 25,935 |
| NM |
| NM |
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Independent |
| 6,473 |
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| 6,473 |
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Company-owned |
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| 2,511 |
| 2,511 |
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(A) Number of active facilities at the end of the quarter.
(B) Based on the production at the end of the period.
(C) There is some overlap between folding and travel trailer distribution points.
(D) The number of units in the backlog multiplied by the average selling price. Travel and folding trailers calculated separately to arrive at towable backlog dollars.
NM Not meaningful.