EXHBIIT 99.1 NEWS RELEASE For immediate release Thursday, May 2, 2002 COACHMEN INDUSTRIES, INC. REPORTS IMPROVED FIRST QUARTER RESULTS O LOSS OF $0.04 PER SHARE MARKS SIGNIFICANT IMPROVEMENT OVER LOSS OF $0.31 PER SHARE IN YEAR-EARLIER PERIOD. O WHOLESALE RV MARKET SHARE UP 14.5% SINCE START OF THE YEAR. O BACKLOGS UP SINCE START OF YEAR IN RECREATIONAL VEHICLES AND MODULAR HOUSING. O CASH FLOW REMAINS POSITIVE WITH $52.5 MILLION IN CASH AND SECURITIES AT END OF QUARTER. ELKHART, IND. - Coachmen Industries, Inc. (NYSE: COA) today announced a significantly reduced loss for the first quarter of 2002 that is consistent with its earlier guidance and supports the Company's expectation for a return to profitability for the full year 2002. The loss of $0.6 million, or $0.04 per share, for the quarter compares with a loss of $4.9 million, or $0.31 per share, in the year-earlier period. Sales for the first quarter increased to $154.5 million versus $152.9 million in the first quarter of 2001. Claire C. Skinner, Chairman, Chief Executive Officer and President, remarked, "Although we are not satisfied with even this small loss for the first quarter, it matches the public guidance we had provided; and the underlying trends affirm our outlook for further improvement in coming quarters. As a result of the growth thus far in our RV shipments, our market share is 7.1% based on shipments to dealers, up 14.5% just from the start of the year. The focus of our marketing program is to sustain that momentum over the remainder of 2002. Trade statistics show that the improving trend in shipments of recreational vehicles to dealers that began in 2001 has carried over into 2002. Because inventories at the retail level are relatively low we had expected that any strengthening in -MORE- Dedicated to the Enrichment of Your Life 2 Coachmen Industries, Inc. Reports First Quarter Page 2 May 2, 2002 retail sales would translate quickly into increased orders. We are benefiting not only from that positive industry-wide trend but also from the extensive design and product changes that are reflected in our 2002 line of recreational vehicles. The results of our Modular Housing group for the first quarter were down somewhat from a year ago. This is not the strongest period of the year for our business because of seasonal factors, and we are encouraged that the backlog of orders in this business segment was up 26% at the close of the quarter from the end of 2001." QUARTER ENDED MARCH 31, 2002 2001 -------------- ------------- SALES Recreational Vehicle $ 109,521 $ 106,263 Modular Housing/Building 44,936 46,661 -------------- ------------- Total $ 154,457 $ 152,924 ============== ============ PRE-TAX INCOME (LOSS) Recreational Vehicle $ (573) $ (5,511) Modular Housing/Building (512) 475 Other 189 (2,756) -------------- ------------- $ (896) $ (7,792) =============== ============== RECREATIONAL VEHICLE SEGMENT The Company's Recreational Vehicle segment is benefiting from the improving trend in retail purchases that began industry-wide during the fourth quarter of 2001. This pattern has continued and even accelerated thus far in 2002. The Company had expected that the trend in wholesale shipments through at least the first half of 2002 would track closely with the change in retail sales because of the relatively low level of inventory at dealers. The uncertainty about the direction of the economy caused dealers on an industry-wide basis to reduce inventories during 2001, leaving the supply chain lean at the start of 2002. Coachmen has the infrastructure and existing manufacturing capacity to be able to increase its recreational vehicle production quickly. The daily production rate in units at Coachmen was up 25% versus a year ago by the end of the first quarter. The Company expects to continue operating at a significantly higher production rate over the remainder of 2002 and is reopening a motorhome facility that was closed late in 2000 when the cyclical downswing in demand was starting. The increase in Coachmen's shipment rate in 2002 is well above that of the industry as a whole, signifying the Company's success in increasing its wholesale market share. The Company continues to market one of the broadest lines of recreational vehicles and is benefiting from the extensive redesign and marketing changes made during 2001 throughout its various models. -MORE- 3 Coachmen Industries, Inc. Reports First Quarter Page 3 May 2, 2002 MODULAR HOUSING AND BUILDING SEGMENT The Company's modular housing/building segment reported lower sales and a small operating loss for the first quarter. One of the factors affecting this business segment has been the sharp drop in demand from the telecom industry which uses modular structures extensively in their operations. Seasonal factors make it difficult to extrapolate sales of modular homes in the first quarter into a forecast for the full year. However, the backlog of homes was up at the close of the quarter, and the Company expects an improvement in the results of this business segment over the remainder of the year. While attending to its traditional markets, the Company is also concentrating on achieving greater penetration of urban markets where it can realize higher economies of scale from advertising and other marketing expenses. BALANCE SHEET/CASH FLOW As of March 31, 2002, the Company had cash and marketable securities of $52.5 million and shareholders' equity of $208.1 million. Cash flow was $11.8 million and capital expenditures totaled $1.1 million for the first quarter. Joseph P. Tomczak, Executive Vice President and Chief Financial Officer, said, "We are continuing to generate positive cash flow and to maintain a strong, liquid balance sheet. We had a debt/capital ratio of 5% at the end of the first quarter. The strength of our balance sheet provides considerable flexibility for us to fund internal expansion opportunities and to consider acquisitions that meet our established criteria, including being complementary to our business and accretive to earnings in the first year of ownership." OUTLOOK Skinner said, "The results for the first quarter, which is not seasonally the strongest period of the year for the modular housing side of our business, were in line with our expectations. Based on current trends, we continue to expect to report at least a 10% gain in net sales for 2002 and a sound rebound in profitability. We are continuing to contain costs closely and anticipate reporting earnings in each of the remaining three quarters, leading to earnings of approximately $0.75 per share for the full year. "Our goal is to use the improvement for 2002 as a base for further gains. We believe that we can achieve the historical levels of profitability that we attained as recently as three years ago. We recognize the cyclical tendencies of both of our target markets, but each has shown consistent above-average growth on a long-term basis." Founded in 1964, Coachmen Industries, Inc. is one of the nation's leading manufacturers of recreational vehicles with well-known brand names including Coachmen(R), Georgie Boy(R), Shasta(R)and Viking(R). Coachmen Industries is also the largest modular home -MORE- 4 Coachmen Industries, Inc. Reports First Quarter Page 4 May 2, 2002 producer in the nation with its All American Homes(R) and Mod-U-Kraf(R) subsidiaries. Modular commercial and telecommunication structures are manufactured by the Company's Miller Building Systems subsidiary. Coachmen is a publicly held company with stock listed on the New York Stock Exchange (NYSE) under the COA ticker symbol. 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 THE POTENTIAL FLUCTUATIONS IN THE COMPANY'S OPERATING RESULTS, THE CONDITION OF THE TELECOMMUNICATIONS INDUSTRY WHICH PURCHASES MODULAR STRUCTURES, THE AVAILABILITY AND THE PRICE OF GASOLINE, THE COMPANY'S DEPENDENCE ON CHASSIS SUPPLIERS, INTEREST RATES, COMPETITION, GOVERNMENT REGULATIONS, LEGISLATION GOVERNING THE RELATIONSHIPS OF THE COMPANY WITH ITS RECREATIONAL VEHICLE DEALERS, THE IMPACT OF CONSUMER CONFIDENCE AND ECONOMIC UNCERTAINTY ON HIGH-COST DISCRETIONARY PRODUCT PURCHASES AND OTHER RISKS IDENTIFIED IN THE COMPANY'S SEC FILINGS. For more information: Joseph P. Tomczak Executive Vice President and Chief Financial Officer 219-262-0123 -MORE- 5 Coachmen Industries, Inc. Reports First Quarter Page 5 May 2, 2002 COACHMEN INDUSTRIES, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED) THREE MONTHS ENDED MARCH 31, 2002 2001 ---------- ----------- Net Sales $ 154,457 $ 152,924 Gross Profit - $ 19,980 16,122 Gross Profit - % 12.9% 10.5% General, Selling & Administrative - $ 21,391 23,549 General, Selling & Administrative - % 13.8% 15.4% Operating Income/(Loss) - $ (1,411) (7,427) Operating Income/(Loss) - % (0.9)% (4.9)% Other (Income)/Expense (515) 365 Pre-Tax Profit/(Loss) - $ (896) (7,792) Pre-Tax Profit/(Loss) - % (0.6)% (5.1)% Tax Expense/(Benefit) (306) (2,852) Net Income/(Loss) (590) (4,940) Earning/(Loss) Per Share - Basic & Diluted (0.04) (0.31) Weighted Average Shares Outstanding Basic 16,040 15,746 Diluted 16,040 15,746 -MORE- 6 Coachmen Industries, Inc. Reports First Quarter Page 6 May 2, 2002 COACHMEN INDUSTRIES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (IN THOUSANDS) (UNAUDITED) ASSETS 3/31/02 12/31/01 CURRENT ASSETS Cash and temporary cash investments $ 40,219 $ 28,416 Marketable securities 12,265 12,180 Accounts receivable 37,766 23,756 Inventories 75,924 80,477 Prepaid expenses and other 8,491 9,059 Deferred income taxes 7,393 7,319 --------------- -------------- Total Current Assets 182,058 161,207 Property & equipment, net 79,170 80,233 Goodwill and other, net 18,954 18,954 Other 27,182 28,166 --------------- -------------- Total Assets $ 307,364 $ 288,560 =============== ============== LIABILITIES AND SHAREHOLDERS' EQUITY 3/31/02 12/31/01 CURRENT LIABILITIES Current portion of long-term debt $ 918 $ 917 Accounts payable, trade 33,179 18,944 Accrued income taxes 550 494 Other accruals 43,750 38,846 --------------- -------------- Total Current Liabilities 78,397 59,201 Long-term debt 10,986 11,001 Deferred income taxes 1,257 1,257 Other 8,624 8,461 --------------- -------------- Total liabilities 99,264 79,920 Shareholder's Equity 208,100 208,640 --------------- -------------- Total Liabilities and Shareholders' Equity $ 307,364 $ 288,560 =============== ============== -MORE- 7 Coachmen Industries, Inc. Reports First Quarter Page 7 May 2, 2002 COACHMEN INDUSTRIES, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (IN THOUSANDS) (UNAUDITED) THREE MONTHS ENDED MARCH 31, 2002 2001 ---------- ----------- CASH FLOW FROM OPERATIONS $ 11,340 $ 15,737 CASH FLOW FROM/(USED IN) ACQUISITION & INVESTING ACTIVITIES 797 (9,221) Net Borrowings (14) 8,833 Issuance/Purchase of Stock 482 54 Dividends (802) (788) ---------- ----------- CASH FLOW FROM/(USED IN) FINANCING ACTIVITIES (334) 8,099 INCREASE IN CASH AND TEMPORARY CASH INVESTMENTS 11,803 14,615 Beginning of Period Cash and Temporary Cash Investments 28,416 2,614 ---------- ----------- ENDING CASH AND TEMPORARY CASH INVESTMENTS $ 40,219 $ 17,229 ========== =========== -END-