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CHAMPION ENTERPRISES, INC. ANNOUNCES
2-FOR-1 STOCK SPLIT, ACQUISITION OF
HOMES OF LEGEND, INC. AND
ANNUAL MEETING HIGHLIGHTS
Auburn Hills, Mich., April 29, 1996 -- Champion Enterprises,
Inc. (NYSE:CHB) announced today that the Board of Directors has
approved a 2-for-1 stock split effective May 31, 1996 for
shareholders of record on May 16, 1996. Following the split, the
company will have approximately 30.8 million shares outstanding
and 33.2 million weighted average shares for computations of
earnings per share amounts. The announcement was made today by
Walter R. Young, Jr., chairman, president and chief executive
officer, at Champion Enterprises' annual meeting of shareholders.
"The company's Common Stock was last split in May 1995. The
1996 2-for-1 split underscores our company's continued record of
outstanding earnings growth and market penetration in both the
manufactured housing and mid-size bus industries. Since our
market capitalization now exceeds $500 million and continues to
grow strong, along with our larger base of institutional
investors, the split will help broaden our shareholder base as
well as increase the liquidity of our shares," Young said.
Homes of Legend Acquisition Completed
At today's annual meeting Young also announced that on April
26, 1996 the company officially completed its acquisition of
Alabama-based Homes of Legend, Inc. and Legend Realty, Inc. (a
related party). On March 29, 1996 Grand Manor, Inc., located in
Georgia, was acquired. The cost of these transactions was
approximately $33 million. The cash portion of the transaction
value paid in 1996 was approximately $18.5 million. The balance,
which is primarily contingent upon future performance, will be
paid over the next three years.
Young commented, "These acquisitions will strengthen
Champion's presence in key Southeastern states, such as Alabama,
Georgia, and Florida, which are among the fastest growing for
manufactured housing. On a pro forma basis, these acquisitions
would have added $91 million to net sales and $6.2 million to
earnings before interest and taxes in 1995. Their 4,500 homes
sold last year combined with our 29,398 homes sold in 1995 make
our pro forma U.S. market share 9.8 percent.
"Homes of Legend and Grand Manor add four manufactured
housing plants to Champion's 23. In addition, we expect the
three previously announced new plants in Texas, Alabama and
Indiana to be in operation by mid-year, and will add another
plant to Grand Manor's capacity in Thomasville, Georgia. Thus,
we will have a total of 31 manufacturing plants operating by year
end 1996, an increase of 35 percent," added Young.
1996 Outlook Strong
Reiterating the company's positive outlook for 1996, Young
said, "We are off to an excellent start with our record first
quarter results, which increased 27 percent to 47 cents per
share. Assuming the economy stays strong, we expect our recent
acquisitions will add 14 cents to 1996 earnings per share, which
combined with internal growth should lead to another outstanding
year for Champion.
"The popularity of manufactured homes as a cost effective
and high quality alternative to site-built homes continues to
grow," Young added. "Manufactured homes now represent 34 percent
of all new single family homes sold, up from 25 percent in 1991.
We currently expect 1996 industry shipments to increase
approximately 6-8 percent over the previous year.
"With our strong cash flow, we expect to have virtually no
debt by year end and continue to seek value-adding acquisitions
with the more than $100 million of investment capacity still
available. We are committed to our goal of increasing earnings
per share at a compound annual growth rate of 20 percent over the
next three years. Enhancing shareholder value is our number one
priority," Young concluded.
Other Annual Meeting Highlights
At today's annual meeting Champion Enterprises' shareholders
re-elected its Board of Directors: Walter R. Young, Jr., Robert
W. Anestis, Selwyn Isakow, George R. Mrkonic, Johnson S.
Savary and Carl L. Valdiserri. In addition, they approved an
amendment to the company's Restated Articles of Incorporation to
increase the number of authorized shares of Common Stock to 75
million from 30 million and approved amendments to the 1995 Stock
Option and Incentive Plan.
Champion Enterprises, Inc., headquartered in Auburn Hills,
Mich., is one of the fastest growing companies in the
manufactured housing industry and is number two in U.S. market
share. Since 1992 Champion's revenues have more than tripled,
while net income has increased more than 11 times. For the year
ended December 30, 1995, sales were $798 million and earnings per
share were $2.02, up 53 percent compared with the prior year's
fully taxed earnings from continuing operations. In 1995
manufactured housing accounted for about 93 percent of company
revenues, and its principal housing subsidiaries are Champion
Home Builders Co., Moduline International, Inc., Dutch Housing,
Inc., Chandeleur Homes, Inc., Crest Ridge Homes, Inc., Grand
Manor, Inc. and Homes of Legend, Inc. Its commercial vehicles
business, Champion Motor Coach, Inc., is the nation's second
largest producer of mid-size buses.