SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Form 10-Q
(MARK ONE)
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2001
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from __________________to__________________
Commission file number 1-7160
COACHMEN INDUSTRIES, INC.
(Exact name of registrant as specified in its charter)
INDIANA 35-1101097
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification number)
2831 Dexter Drive, Elkhart, Indiana 46514
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code 219-262-0123
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period
that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days. Yes X No _
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practical date:
At October 31, 2001:
Common Shares, without par value 15,918,403 shares outstanding
including an equivalent number of common share purchase rights.
COACHMEN INDUSTRIES, INC.
INDEX
Page No.
PART I. FINANCIAL INFORMATION
Financial Statements:
Condensed Consolidated Balance Sheets-
September 30, 2001 and December 31, 2000 4-5
Condensed Consolidated Statements of Operations-
Three and Nine Months Ended September 30, 2001 and 2000 6
Condensed Consolidated Statements of Cash Flows-
Nine Months Ended September 30, 2001 and 2000 7
Notes to Condensed Consolidated Financial Statements 8-11
Management's Discussion and Analysis of Financial
Condition and Results of Operations 12-15
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K 16
SIGNATURES 17
This Form 10-Q contains certain statements that are "forward-looking"
statements within the meaning of Section 27A of the Securities Act of
1933 and Section 21E of the Securities Exchange Act of 1934, as
amended. These forward-looking statements involve risks and
uncertainties, and are dependent on factors which may include, but are
not limited to, the availability and price of gasoline, which can impact
sales of recreational vehicles; availability of chassis, which are used
in the production of many of the Company's recreational vehicle
products; interest rates, which affect the affordability of the
Company's products; the functioning of the Company's information
technology systems, which can impact the Company's day-to-day
operations; changing government regulations, such as those covering
accounting standards, environmental matters or product warranties and
recalls, which may affect costs of operations, revenues, product
acceptance and profitability; legislation governing the relationships of
the Company with its recreational vehicle dealers, which may affect the
Company's options and liabilities in the event of a general economic
downturn; the impact of economic uncertainty on high-cost discretionary
product purchases; and also on the state of the recreational vehicle and
modular housing and building industries in the United States. Other
factors affecting forward-looking statements include competition in
these industries and the Company's ability to maintain or increase gross
margins which are critical to profitability whether there are or are not
increased sales.
At times, the Company's actual performance differs materially from its
projections and estimates regarding the economy, the recreational
vehicle industry, the housing and building industries and other key
performance indicators. Readers of this Report are cautioned that
reliance on any forward-looking statements involves risks and
uncertainties. Although the Company believes that the assumptions on
which the forward-looking statements contained herein are reasonable,
any of those assumptions could prove to be inaccurate given the
inherent uncertainties as to the occurrence or nonoccurrence of future
events. There can be no assurance that the forward-looking statements
contained in this Report will prove to be accurate. The inclusion of a
forward-looking statement herein should not be regarded as a
representation by the Company that the Company's objectives will be
achieved. For further discussion of the elements involved in the
Report, see the Company's most recent Annual Report or Form 10-K.
COACHMEN INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
SEPTEMBER 30, DECEMBER 31,
2001 2000
ASSETS
CURRENT ASSETS
Cash and temporary cash investments $ 31,634 $ 2,614
Marketable securities 12,852 18,737
Trade receivables, less allowance for
doubtful receivables 2001 - $1,185
and 2000 - $1,066 31,697 37,743
Other receivables 4,068 2,336
Refundable income taxes 1,522 4,600
Inventories 85,850 97,315
Prepaid expenses and other 5,462 2,221
Deferred income taxes 8,858 8,384
Total current assets 181,943 173,950
PROPERTY AND EQUIPMENT, at cost 141,203 139,029
Less, Accumulated depreciation 58,899 54,866
Property and equipment, net 82,304 84,163
INTANGIBLES, net of accumulated amortization
2001 - $1,786 and 2000 - $917 18,775 15,983
OTHER 27,653 22,350
TOTAL ASSETS $310,675 $296,446
The accompanying notes are part of the condensed consolidated financial
statements.
COACHMEN INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
SEPTEMBER 30, DECEMBER 31,
2001 2000
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Current maturities of long-term debt $ 927 $ 865
Accounts payable, trade 33,715 24,015
Accrued income taxes - 845
Accrued expenses and other liabilities 42,403 31,988
Total current liabilities 77,045 57,713
LONG-TERM DEBT 11,379 11,795
DEFERRED INCOME TAXES 3,349 3,370
OTHER 8,204 8,619
TOTAL LIABILITIES 99,977 81,497
SHAREHOLDERS' EQUITY
Common shares, without par value: authorized
60,000 shares; issued 2001 - 21,039
shares and 2000 - 21,020 shares 91,019 90,861
Additional paid-in capital 5,578 5,563
Accumulated other comprehensive net loss (824) -
Retained earnings 164,882 169,766
Treasury shares, at cost: 2001 - 5,123
Shares and 1999 - 5,317 shares (49,957) (51,241)
TOTAL SHAREHOLDERS' EQUITY 210,698 214,949
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $310,675 $296,446
The accompanying notes are part of the condensed consolidated financial
statements.
COACHMEN INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
THREE MONTHS NINE MONTHS
ENDED SEPTEMBER 30, ENDED SEPTEMBER 30,
2001 2000 2001 2000
Net sales $149,577 $188,473 $464,860 $584,384
Cost of sales 123,436 161,267 394,538 496,513
Gross profit 26,141 27,206 70,322 87,871
Operating expenses:
Delivery 8,023 7,875 24,366 24,508
Selling 7,882 9,186 21,983 25,500
General and administrative 8,022 8,228 25,707 24,020
Total operating expenses 23,927 25,289 72,056 74,028
Operating income (loss) 2,214 1,917 (1,734) 13,843
Nonoperating income (expense):
Interest expense (711) (545) (2,262) (1,600)
Investment income (loss) (117) 569 (6) 830
Gain on sale of
properties, net 147 1,216 209 1,252
Other income (expense), net 76 119 (143) 506
Total nonoperating income
(expense), net (605) 1,359 (2,202) 988
Income (loss) before
income taxes 1,609 3,276 (3,936) 14,831
Income taxes (benefit) 604 1,003 (1,425) 4,828
Net income (loss) $ 1,005 $ 2,273 $ (2,511) $ 10,003
Earnings (loss) per common share:
Basic $ .06 $ .15 $ (.16) $ .64
Diluted $ .06 $ .15 $ (.16) $ .64
Number of common shares used in
the computation of earnings (loss)
per common share:
Basic 15,815 15,574 15,811 15,566
Diluted 15,875 15,577 15,867 15,573
Cash dividends per common share $ .05 $ .05 $ .15 $ .15
The accompanying notes are part of the condensed consolidated financial
statements.
COACHMEN INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
NINE MONTHS
ENDED SEPTEMBER 30,
2001 2000
CASH FLOWS FROM OPERATING ACTIVITIES
Net cash provided by
operating activities $ 42,591 $ 24,445
CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES
Proceeds from:
Sale of marketable securities 40,975 101,820
Sale of properties 1,583 2,085
Sale of businesses - 5,644
Acquisitions of:
Marketable securities (37,633) (91,842)
Property and equipment (3,968) (10,219)
Businesses, net of cash acquired (7,273) (7,201)
Other (578) 901
Net cash from (used in) investing activities (6,894) 1,188
CASH FLOWS USED IN FINANCING ACTIVITIES
Proceeds from long-term debt 13,500 -
Payments of long-term debt (18,521) (1,946)
Issuance of common shares under stock
option and stock purchase plans 717 386
Tax benefit from stock options exercised - 81
Cash dividends paid (2,373) (2,339)
Net cash used in financing activities (6,677) (3,818)
Increase in cash and temporary cash investments 29,020 21,815
CASH AND TEMPORARY CASH INVESTMENTS
Beginning of period 2,614 4,269
End of period $ 31,634 $ 26,084
The accompanying notes are part of the condensed consolidated financial
statements.
COACHMEN INDUSTRIES, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(in thousands)
1. BASIS OF PRESENTATION
The consolidated balance sheet data at December 31, 2000 was derived
from audited financial statements, but does not include all disclosures
required by accounting principles generally accepted in the United
States.
In the opinion of management, the information furnished herein includes
all adjustments of a normal and recurring nature necessary to reflect
a fair statement of the interim periods reported. The results of
operations for the three and nine-month periods ended September 30,
2001 are not necessarily indicative of the results to be expected for
the full year.
2. SEGMENT INFORMATION
The Company has determined that its reportable segments are those
that are based on the Company's method of internal reporting, which
disaggregates its business by product category. The Company's two
reportable segments are: Recreational Vehicles, including related
parts and supplies, and Modular Housing and Building. The Company
evaluates the performance of its segments and allocates resources to
them based on pretax income. Differences between reported segment
amounts and corresponding consolidated totals represent corporate
expenses for administrative functions and costs or expenses relating
to property and equipment that are not allocated to segments.
The table below presents information about segments used by the chief
operating decision maker of the Company for the three and nine month
periods ended September 30, 2001 and 2000:
Three Months Nine Months
Ended September 30, Ended September 30,
2001 2000 2001 2000
Net sales:
Recreational vehicles $ 78,527 $140,066 $278,705 $451,325
Modular housing and building 71,050 48,407 186,155 133,059
Consolidated total $149,577 $188,473 $464,860 $584,384
Pretax income (loss):
Recreational vehicles $ (1,551) $ 543 $ (9,060) $ 9,506
Modular housing and building 6,288 3,873 12,486 9,900
Other reconciling items (3,128) (1,140) (7,362) (4,575)
Consolidated total $ 1,609 $ 3,276 $ (3,936) $ 14,831
As of As of
September 30, December 31,
2001 2000
Total assets:
Recreational vehicles $ 97,529 $139,383
Modular housing and building 109,284 100,340
Other reconciling items 103,862 56,723
Consolidated total $310,675 $296,446
3. INVENTORIES
Inventories consist of the following:
September 30, December 31,
2001 2000
Raw materials $ 29,023 $ 35,963
Work in process 9,327 8,244
Finished goods 47,500 53,108
Total $ 85,850 $ 97,315
4. EARNINGS PER SHARE
Basic earnings per share is computed by dividing net income (loss) by
the weighted average number of shares of common stock outstanding
during the period. Diluted earnings per share is computed by dividing
net income (loss) by the weighted average number of shares of common
stock outstanding plus the dilutive effect of stock options and stock
awards. The dilutive effect of stock options and awards did not enter
into the computation of diluted earnings per share for the nine months
ended September 30, 2001, because their inclusion would have been
antidilutive.
The sum of quarterly earnings per share for the three quarters may not
equal year-to-date earnings per share due to rounding and changes in
the diluted potential common shares.
5. COMPREHENSIVE INCOME
Other comprehensive loss represents unrealized depreciation of
available-for-sale securities, net of deferred income taxes. Other
comprehensive income (loss) was $382 and $(824) for the 2001 third
quarter and nine months, respectively. There was no other comprehensive
income recorded for the quarter or nine months ended September 30,
2000. Total comprehensive income (loss) combines reported net income
(loss) and other comprehensive loss. Total comprehensive income (loss)
for the quarters ended September 30, 2001 and 2000 was $1,387 and
$2,273, respectively, and $(3,335) and $10,003 for the nine months
ended September 30, 2001 and 2000, respectively.
6. COMMITMENTS AND CONTINGENCIES
The Company was contingently liable at September 30, 2001 to banks
and other financial institutions on repurchase agreements in connection
with financing provided by such institutions to most of the Company's
independent dealers in connection with their purchase of the Company's
recreational vehicle products. These agreements provide for the
Company to repurchase its products from the financing institution in
the event that they have repossessed them upon a dealer's default. The
risk of loss resulting from these agreements is spread over the
Company's numerous dealers and is further reduced by the resale value
of the products repurchased. Historically, the Company has not
experienced significant losses under these agreements. However, in the
fourth quarter of 2000 and continuing to a lesser extent through the
third quarter of 2001, as a result of business conditions affecting the
recreational vehicle industry, the Company experienced losses under
repurchase agreements. Accordingly, the Company is recording an
accrual for estimated losses under repurchase agreements. The Company
is involved in various legal proceedings which are ordinary disputes
incidental to the industry and many of which are covered in whole or in
part by insurance. Management believes that the ultimate outcome of
these matters and any liabilities in excess of insurance coverage and
self-insurance accruals will not have a material adverse impact on the
Company's consolidated financial position or on its future business
operations.
7. ACQUISITION OF A BUSINESS
On February 12, 2001, the Company acquired all of the issued and
outstanding shares of capital stock of Kan Build, Inc. ("Kan Build"),
a manufacturer of modular buildings. The purchase price aggregated
$21.6 million and consisted of $8.9 million cash paid at closing and
the assumption of $12.7 million of liabilities. The excess of
purchase price over fair value of assets acquired ("goodwill"), which
approximated $3.7 million, is being amortized on a straight-line basis
over 20 years. The acquisition was accounted for as a purchase and
the operating results of Kan Build are included in the Company's
consolidated financial statements from the date of acquisition.
When acquired, Kan Build had facilities in Osage City, Kansas;
Loveland, Colorado; and a new plant under construction in Millikin,
Colorado. During the second quarter of 2001, all manufacturing
operations in the Loveland, Colorado facility were relocated to the
newly constructed facility in Millikin, Colorado. The lease on the
Loveland, Colorado facility was subsequently terminated.
Unaudited pro forma financial information as if this acquisition had
occurred at the beginning of each period is as follows:
Nine Months
Ended September 30,
2001 2000
Net sales $468,383 $605,250
Net income (loss) (2,423) 11,078
Earnings (loss) per share:
Basic $ (.15) $ .71
Diluted (.15) .71
8. NEW AND PENDING ACCOUNTING PRONOUNCEMENTS
Effective January 1, 2001, the Company adopted two new accounting
pronouncements of the Emerging Issues Task Force ("EITF") of the
Financial Accounting Standards Board ("FASB"). EITF 00-10,
"Accounting for Shipping and Handling Fees and Costs," requires
freight billed to customers to be considered as sales revenue.
Previously, the Company netted freight billed to customers against
delivery expenses. EITF 00-22, "Accounting for Points and Certain
Time or Volume-Based Sales Incentive Offers...," requires certain
volume-based sales rebates to be netted against sales revenue.
Previously, the Company included such rebates in selling expenses.
Net sales, delivery expenses and selling expenses for prior periods
have been restated to conform with the current presentation. The
adoption of these two new EITF pronouncements had no impact on net
income. In June 2001, the FASB issued Statement No. 141, "Business
Combinations" and Statement No. 142, "Goodwill and Other Intangible
Assets." Statement No. 141 eliminates the pooling of interests method
of accounting for business acquisitions and Statement No. 142 eliminates
the amortization of goodwill and requires the Company to evaluate
goodwill for impairment on an annual basis. Any impairment of goodwill
must be recognized currently as a charge to earnings in the financial
statements. The Company will be required to apply the provisions of the
Statements to all business combinations initiated after June 30, 2001.
For goodwill and intangible assets arising from business combinations
completed before July 1, 2001, the Company will be required to apply the
provisions of Statement No. 142 beginning on January 1, 2002.
Application of the nonamortization provisions of the Statement in the
year ending 2002 is expected to reduce intangibles amortization by
approximately $1.2 million and increase net earnings by approximately
$.4 million ($.03 per diluted share). During 2002, the Company will
perform the initial impairment tests of goodwill and indefinite lived
intangible assets as of January 1, 2002. The Company has not yet
determined what effect these tests will have on its consolidated results
of operations or financial position.
COACHMEN INDUSTRIES, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(in thousands, except per share amounts)
The following is management's discussion and analysis of certain
significant factors which have affected the Company's financial
condition, results of operations and cash flows during the periods
included in the accompanying condensed consolidated financial
statements.
A summary of the changes in the principal items included in the
condensed consolidated statements of income is shown below.
Comparison of
Three Months Nine Months
Ended September 30, 2001 and 2000
Increases (Decreases)
Amount Percentage Amount Percentage
Net sales $(38,896) (20.6)% $(119,524) (20.5)%
Cost of sales (37,831) (23.5) (101,975) (20.5)
Delivery expense 148 1.9 (142) (0.6)
Selling expenses (1,304) (14.2) (3,517) (13.8)
General and
administrative expenses (206) (2.5) 1,687 7.0
Interest expense 166 30.5 662 41.4
Investment income (loss) (686) (120.6) (836) (100.7)
Gain on sale of
properties, net (1,069) (87.9) (1,043) (83.3)
Other income, net (43) (36.1) (649) (128.3)
Income (loss) before income taxes (1,667) (50.9) (18,767) (126.5)
Income taxes (399) (39.8) (6,253) (129.5)
Net income (loss) (1,268) (55.8) (12,514) (125.1)
NET SALES
Consolidated net sales for the quarter ended September 30, 2001 were
$149.6 million, a decrease of 20.6% from the $188.5 million reported for
the corresponding quarter last year. Net sales for the nine months were
$464.9 million, representing a decrease of 20.5% from the $584.4 million
reported for the same period in 2000. The Company's recreational
vehicle segment experienced a net sales decrease of 43.9% for the
quarter and a decrease of 38.2% for the nine months. Both the motorized
and towable products had decreases in the number of units and sales
dollars from the 2000 periods reflecting a continuing industry-wide
softness in the recreational vehicle industry during the three and nine
month comparable periods. After adjustments for sold or discontinued RV
operations, sales for 2000 were $128.6 million for the third quarter and
$412.2 million for the first nine months of the year. The Company's
modular housing and building segment experienced a net sales increase
for the 2001 quarter of 46.8% and 39.9% for the nine months. This
increase was principally attributable to net sales of acquired
businesses during the past twelve month period.
COST OF SALES
Cost of sales decreased 23.5% or $37.8 million for the three months
and 20.5% or $102.0 million for the nine months ended September 30,
2001. The decrease for the quarter is greater than the decrease in net
sales while the decrease for the nine months approximates the decrease
in net sales for the corresponding period. As a percentage of sales,
cost of sales decreased 3.1 percentage points and .1 percentage points
for the quarter and nine months, respectively, from the comparable prior
year periods. The most recent quarter was favorably impacted by
continued cost cutting efforts including the improved utilization of the
recreational vehicle manufacturing facilities resulting from the
consolidations that took place earlier in the year. Margin improvements
were also affected by the increased influence of the modular housing and
building segment to overall sales of the Corporation.
OPERATING EXPENSES
As a percentage of net sales, operating expenses, which include
delivery, selling, general and administrative expenses, were 16.0% and
15.5% for the 2001 quarter and nine months compared to 13.4% and 12.7%
for the quarter and nine months of 2000. As a percentage of net sales,
delivery expenses increased by 1.2 percentage points for the three
months and 1.0 percentage points for the nine months compared to the
prior year three and nine month periods. This increase was mainly
attributable to higher fuel costs and fuel surcharges from outside
carriers. In addition, as a result of lower sales volume in the current
periods, there was less efficient utilization of Company-owned
transportation equipment. Selling expenses, at 5.3% of net sales for
the quarter ended September 30, 2001, were .4% higher than the
comparable quarter of the previous year. This was mainly attributable
to increased sales promotions in the recreational vehicle segment
necessitated by the challenging sales environment. For the nine month
period, selling expenses in 2001, as a percentage of net sales of 4.7%,
were .3 percentage points higher than the 4.4% in 2000. While total
dollars spent were down 13.8% for the nine month period, revenue
declined 20.5%. General and administrative expenses were 5.4% of net
sales for the third quarter compared to 4.4% for the 2000 corresponding
quarter and 5.5% of net sales for the nine month period compared to 4.1%
for 2000. These increases in both the quarter and nine month periods
were primarily the result of goodwill amortization for companies
acquired during the past twelve month period, which were not included in
last year's results for the first nine months.
INTEREST EXPENSE
Interest expense was $711 and $2,662 for the three and nine month
periods in 2001 compared to $545 and $1,600 in the same periods last
year. Interest expense varies with the amount of long-term debt and the
increase in cash surrender value for the Company's investment in life
insurance contracts. These life insurance contracts were purchased to
fund obligations under deferred compensation agreements with executives
and other key employees. The interest costs associated with deferred
compensation obligations and with the borrowings against the cash value
of the insurance policies are partially offset by the increases in cash
surrender values. The increase in interest expense is primarily the
result of Industrial Revenue Bonds assumed in the acquisitions of
Mod-U-Kraf Homes, Inc. and Miller Building Systems, Inc. during 2000.
INVESTMENT INCOME (LOSS)
There was an investment loss of $117 for the quarter ended September 30,
2001 compared to investment income of $569 for the third quarter of
2000. For the nine month period, investment loss in 2001 was $6
compared to investment income of $830 the previous year. This decrease
is principally attributable to realized losses incurred from the sale
of preferred stocks of certain utility companies as well as a reduction
of interest income resulting from lower interest rates during the 2001
periods.
GAIN ON THE SALE OF PROPERTIES, NET
There was a net gain on the sale of properties for the third quarter of
2001 of $147 compared with a gain of $1,216 in the same quarter of 2000.
The net gain on the sale of properties for the first nine months of 2001
and 2000 was $209 and $1,252, respectively. During the quarter ended
September 30, 2000, the Company exited the furniture business with the
sale of the business operations and assets of its Lux Company
subsidiary. The pretax gain on the sale, which was primarily
attributable to the sale of real property, approximated $1.2 million.
This current year gain represents the net result of the amount of gain
or loss recognized upon the disposition of various small properties.
OTHER INCOME, NET
Other income, net, represents income of $76 for the third quarter of
2001 and an expense of $143 for the nine months compared to income of
$119 and $506 for the 2000 third quarter and nine months, respectively.
The most significant item of expense for the 2001 nine month period was
a $400 charge to write-down the carrying value of property held for sale
that was subsequently sold.
INCOME TAXES
For the third quarter ended September 30, 2001, the effective tax rate
was 37.5% and a year-to-date rate of 36.2% compared with a 2000 third
quarter and year-to-date rate of 30.6% and 32.6%, respectively. The
Company's effective tax rate fluctuates based upon the states where
sales occur, with the level of export sales, and also with the amount of
nontaxable dividend income on investments.
LIQUIDITY AND CAPITAL RESOURCES
The Company generally relies on funds from operations as its primary
source of liquidity. In addition, the Company maintains a $30 million
secured bank line of credit to meet its seasonal working capital
needs. The loan agreement contains covenants whereby the Company must
maintain certain financial ratios. At September 30, 2001, there were no
borrowings against this line of credit. This agreement was amended on
November 5, 2001 to modify available borrowings to $30 million from $50
million, to provide certain collateral to the bank and to modify certain
financial covenants to reflect current business conditions. For the
nine months ended September 30, 2001, the major source of cash was from
operating activities. Net cash provided by operating activities
aggregated $42,591 and $24,445 for the nine months ended September 30,
2001 and 2000, respectively. The significant items in operating
activities for the nine months ended September 30, 2001 were
depreciation, a decrease in trade accounts receivable, a decrease in
inventories and increases in trade accounts payable and accrued
expenses. The positive cash flow from these items was partially offset
by the net loss and a decrease in deferred income taxes. The cash used
in investing activities included the purchase of Kan Build and the
acquisition of property and equipment. The cash used in financing
activities consisted of cash dividends paid and the repayment of long-
term debt.
At September 30, 2001, working capital decreased to $104.9 million from
the $116.2 million at December 31, 2000. The $8.0 million increase in
current assets at September 30, 2001 versus December 31, 2000, was
primarily due to increases in cash and marketable securities of $23.1
million during the nine month period. This was mostly offset by
decreases in trade accounts receivable and inventories. The increase in
current liabilities of $19.3 million was primarily due to increases in
accounts payable, customer deposits and accrued expenses.
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKS
There have been no material changes from the information provided in the
Company's Annual Report on Form 10-K for the year ended December 31,
2000.
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
None
(b) Reports on Form 8-K during the quarter ended September 30,
2001
Form 8-K, dated August 9, 2001, reporting an Item 5 event
(a press release announcing second quarter results and
declaring 76th consecutive quarterly dividend).
Form 8-K, dated August 23, 2001, reporting an Item 4 event
(changes in registrant's certifying accountant) and an Item
5 event (a press release announcing Coachmen's new models
winning rave reviews during its recent dealer seminar in
Las Vegas).
Form 8-K, dated September 11, 2001, reporting an Item 9
event (a press release announcing expected profitability in
2001 but at lower levels than previously anticipated).
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by
the undersigned thereunto duly authorized.
COACHMEN INDUSTRIES, INC.
(Registrant)
Date: November 13, 2001 By: /s/ Joseph P. Tomczak________________
Joseph P. Tomczak, Executive Vice
President and Chief Financial Officer
Date: November 13, 2001 By: /s/ Gary L. Near_____________________
Gary L. Near, Vice President
and Controller