Exhibit 99.1
FLEETWOOD ENTERPRISES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands)
(Unaudited)
|
| 13 Weeks Ended |
| Year Ended |
| |||||||||||
|
| July 25, 2004 |
| Oct. 24, 2004 |
| Jan. 23, 2005 |
| Apr. 24, 2005 |
| Apr. 24, 2005 |
| |||||
Net sales: |
|
|
|
|
|
|
|
|
|
|
| |||||
RV Group |
| $ | 485,703 |
| $ | 450,280 |
| $ | 342,591 |
| $ | 381,308 |
| $ | 1,659,882 |
|
Housing Group |
| 195,687 |
| 213,877 |
| 183,734 |
| 192,249 |
| 785,547 |
| |||||
Supply Group |
| 14,060 |
| 16,172 |
| 12,711 |
| 14,077 |
| 57,020 |
| |||||
Intercompany sales |
| (36,021 | ) | (34,396 | ) | (29,875 | ) | (27,445 | ) | (127,737 | ) | |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
| 659,429 |
| 645,933 |
| 509,161 |
| 560,189 |
| 2,374,712 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Cost of products sold |
| 538,173 |
| 524,953 |
| 431,349 |
| 485,007 |
| 1,979,482 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Gross profit |
| 121,256 |
| 120,980 |
| 77,812 |
| 75,182 |
| 395,230 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Operating expenses |
| 98,767 |
| 98,858 |
| 104,063 |
| 118,499 |
| 420,187 |
| |||||
Other, net |
| (26 | ) | (2 | ) | 12,822 |
| 5,787 |
| 18,581 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
| 98,741 |
| 98,856 |
| 116,885 |
| 124,286 |
| 438,768 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Operating income (loss) |
| 22,515 |
| 22,124 |
| (39,073 | ) | (49,104 | ) | (43,538 | ) | |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
| |||||
Investment income |
| 487 |
| 428 |
| 978 |
| 492 |
| 2,385 |
| |||||
Interest expense |
| (6,916 | ) | (6,483 | ) | (6,770 | ) | (7,180 | ) | (27,349 | ) | |||||
Other, net |
| (2,724 | ) | — |
| — |
| — |
| (2,724 | ) | |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
| (9,153 | ) | (6,055 | ) | (5,792 | ) | (6,688 | ) | (27,688 | ) | |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Income (loss) before income taxes |
| 13,362 |
| 16,069 |
| (44,865 | ) | (55,792 | ) | (71,226 | ) | |||||
Benefit (provision) for income taxes |
| (910 | ) | (731 | ) | 331 |
| (41 | ) | (1,351 | ) | |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Income (loss) from continuing operations |
| 12,452 |
| 15,338 |
| (44,534 | ) | (55,833 | ) | (72,577 | ) | |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Discontinued operations |
| (6,900 | ) | (7,203 | ) | (10,155 | ) | (64,624 | ) | (88,882 | ) | |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Net income (loss) |
| $ | 5,552 |
| $ | 8,135 |
| $ | (54,689 | ) | $ | (120,457 | ) | $ | (161,459 | ) |
|
| 13 Weeks Ended |
| Year Ended |
| |||||||||||
|
| July 27, 2003 |
| Oct. 26, 2003 |
| Jan. 25, 2004 |
| Apr. 25, 2004 |
| Apr. 25, 2004 |
| |||||
Net sales: |
|
|
|
|
|
|
|
|
|
|
| |||||
RV Group |
| $ | 436,533 |
| $ | 450,018 |
| $ | 410,006 |
| $ | 482,676 |
| $ | 1,779,233 |
|
Housing Group |
| 169,767 |
| 181,042 |
| 143,017 |
| 163,562 |
| 657,388 |
| |||||
Supply Group |
| 8,406 |
| 9,288 |
| 9,756 |
| 13,670 |
| 41,120 |
| |||||
Intercompany sales |
| (27,063 | ) | (36,444 | ) | (33,414 | ) | (20,214 | ) | (117,135 | ) | |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
| 587,643 |
| 603,904 |
| 529,365 |
| 639,694 |
| 2,360,606 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Cost of products sold |
| 483,310 |
| 493,568 |
| 437,246 |
| 529,023 |
| 1,943,147 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Gross profit |
| 104,333 |
| 110,336 |
| 92,119 |
| 110,671 |
| 417,459 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Operating expenses |
| 82,712 |
| 86,285 |
| 86,713 |
| 87,536 |
| 343,246 |
| |||||
Other, net |
| (733 | ) | 22 |
| (4,008 | ) | 63 |
| (4,656 | ) | |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
| 81,979 |
| 86,307 |
| 82,705 |
| 87,599 |
| 338,590 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Operating income |
| 22,354 |
| 24,029 |
| 9,414 |
| 23,072 |
| 78,869 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
| |||||
Investment income |
| 787 |
| 602 |
| 607 |
| 630 |
| 2,626 |
| |||||
Interest expense |
| (10,550 | ) | (10,543 | ) | (11,345 | ) | (10,820 | ) | (43,258 | ) | |||||
Other, net |
| — |
| — |
| — |
| (2,430 | ) | (2,430 | ) | |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
| (9,763 | ) | (9,941 | ) | (10,738 | ) | (12,620 | ) | (43,062 | ) | |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Income (loss) before income taxes |
| 12,591 |
| 14,088 |
| (1,324 | ) | 10,452 |
| 35,807 |
| |||||
Provision for income taxes |
| (1,182 | ) | (1,021 | ) | (384 | ) | (15,862 | ) | (18,449 | ) | |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Income (loss) from continuing operations |
| 11,409 |
| 13,067 |
| (1,708 | ) | (5,410 | ) | 17,358 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Discontinued operations |
| (9,493 | ) | (9,309 | ) | (8,463 | ) | (12,354 | ) | (39,619 | ) | |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Net income (loss) |
| $ | 1,916 |
| $ | 3,758 |
| $ | (10,171 | ) | $ | (17,764 | ) | $ | (22,261 | ) |
|
| 13 Weeks Ended |
| Year Ended |
| |||||||||||
|
| July 28, 2002 |
| Oct. 27, 2002 |
| Jan. 26, 2003 |
| Apr. 27, 2003 |
| Apr. 27, 2003 |
| |||||
Net sales: |
|
|
|
|
|
|
|
|
|
|
| |||||
RV Group |
| $ | 370,950 |
| $ | 395,812 |
| $ | 310,478 |
| $ | 405,355 |
| $ | 1,482,595 |
|
Housing Group |
| 191,339 |
| 195,615 |
| 144,325 |
| 135,808 |
| 667,087 |
| |||||
Supply Group |
| 9,450 |
| 10,876 |
| 8,583 |
| 8,269 |
| 37,178 |
| |||||
Intercompany sales |
| (33,271 | ) | (31,480 | ) | (29,724 | ) | (21,428 | ) | (115,903 | ) | |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
| 538,468 |
| 570,823 |
| 433,662 |
| 528,004 |
| 2,070,957 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Cost of products sold |
| 430,783 |
| 456,964 |
| 365,027 |
| 444,085 |
| 1,696,859 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Gross profit |
| 107,685 |
| 113,859 |
| 68,635 |
| 83,919 |
| 374,098 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Operating expenses |
| 88,834 |
| 90,179 |
| 82,330 |
| 82,599 |
| 343,942 |
| |||||
Other, net |
| 314 |
| (2,421 | ) | (3,474 | ) | 10,360 |
| 4,779 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
| 89,148 |
| 87,758 |
| 78,856 |
| 92,959 |
| 348,721 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Operating income (loss) |
| 18,537 |
| 26,101 |
| (10,221 | ) | (9,040 | ) | 25,377 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
| |||||
Investment income |
| 940 |
| 981 |
| 727 |
| 721 |
| 3,369 |
| |||||
Interest expense |
| (10,239 | ) | (10,472 | ) | (10,415 | ) | (9,975 | ) | (41,101 | ) | |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
|
| (9,299 | ) | (9,491 | ) | (9,688 | ) | (9,254 | ) | (37,732 | ) | |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Income (loss) before income taxes |
| 9,238 |
| 16,610 |
| (19,909 | ) | (18,294 | ) | (12,355 | ) | |||||
Benefit (provision) for income taxes |
| (499 | ) | (2,956 | ) | 11,413 |
| (12,460 | ) | (4,502 | ) | |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Income (loss) from continuing operations |
| 8,739 |
| 13,654 |
| (8,496 | ) | (30,754 | ) | (16,857 | ) | |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Discontinued operations |
| (10,260 | ) | (9,052 | ) | (9,909 | ) | (24,661 | ) | (53,882 | ) | |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Net income (loss) |
| $ | (1,521 | ) | $ | 4,602 |
| $ | (18,405 | ) | $ | (55,415 | ) | $ | (70,739 | ) |
FLEETWOOD ENTERPRISES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
(Unaudited)
|
| Thirteen weeks ended |
| ||||
|
| Apr. 24, 2005 |
| Apr. 25, 2004 |
| ||
|
|
|
|
|
| ||
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
| ||
Loss from continuing operations |
| $ | (55,833 | ) | $ | (5,410 | ) |
Adjustments to reconcile net loss to net cash provided by operating activities: |
|
|
|
|
| ||
Depreciation expense |
| 5,779 |
| 4,710 |
| ||
Amortization of financing costs |
| 309 |
| 1,400 |
| ||
Asset impairment charges |
| 1,900 |
| — |
| ||
Gain on investment securities transactions |
| (33 | ) | (39 | ) | ||
(Gains) losses on sale of property, plant and equipment |
| (706 | ) | 63 |
| ||
Non-cash charge on conversion of trust preferred securities |
| — |
| 671 |
| ||
Changes in assets and liabilities: |
|
|
|
|
| ||
Decrease in receivables |
| 44,071 |
| 13,958 |
| ||
(Increase) decrease in inventories |
| 48,134 |
| (7,376 | ) | ||
(Increase) decrease in income tax receivable |
| (64 | ) | 1,475 |
| ||
Decrease in deferred taxes |
| — |
| 15,000 |
| ||
Decrease in cash value of Company-owned life insurance |
| 2,743 |
| 678 |
| ||
Increase in other assets |
| (8,454 | ) | (420 | ) | ||
Increase (decrease) in accounts payable |
| (5,781 | ) | 17,391 |
| ||
Increase (decrease) in employee compensation and benefits |
| 2,580 |
| (6,488 | ) | ||
Increase (decrease) in product warranty reserve |
| 4,502 |
| (1,896 | ) | ||
Increase in other liabilities |
| 5,522 |
| 17,901 |
| ||
|
|
|
|
|
| ||
Net cash provided by operating activities |
| 44,669 |
| 51,618 |
| ||
|
|
|
|
|
| ||
CASH FLOWS FROM DISCONTINUED OPERATIONS: |
|
|
|
|
| ||
Loss from discontinued operations, net |
| (64,624 | ) | (12,354 | ) | ||
Impairment charges |
| 51,141 |
| — |
| ||
Purchases of property, plant and equipment, net |
| (592 | ) | 31 |
| ||
Decrease in assets of discontinued operations |
| (24,496 | ) | (1,271 | ) | ||
Increase in liabilities of discontinued operations |
| 13,827 |
| 7,232 |
| ||
|
|
|
|
|
| ||
Net cash used in discontinued operations |
| (24,744 | ) | (6,362 | ) | ||
|
|
|
|
|
| ||
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
| ||
Purchases of investment securities available-for-sale |
| (148,857 | ) | (240,420 | ) | ||
Proceeds from sale of investment securities available-for-sale |
| 138,230 |
| 199,773 |
| ||
Purchases of property, plant and equipment, net |
| (2,033 | ) | (10,071 | ) | ||
|
|
|
|
|
| ||
Net cash used in investing activities |
| (12,660 | ) | (50,718 | ) | ||
|
|
|
|
|
| ||
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
| ||
Increase (decrease) in short-term borrowings |
| (4,241 | ) | 5,738 |
| ||
Increase (decrease) in long-term debt |
| 693 |
| (52 | ) | ||
Proceeds from exercise of stock options |
| 1,923 |
| 1,243 |
| ||
|
|
|
|
|
| ||
Net cash provided by (used in) financing activities |
| (1,625 | ) | 6,929 |
| ||
|
|
|
|
|
| ||
Foreign currency translation adjustment |
| (196 | ) | (789 | ) | ||
|
|
|
|
|
| ||
Increase in cash |
| 5,444 |
| 678 |
| ||
|
|
|
|
|
| ||
Cash at beginning of period |
| 1,317 |
| 13,412 |
| ||
|
|
|
|
|
| ||
Cash at end of period |
| $ | 6,761 |
| $ | 14,090 |
|