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EXHIBIT 99.1
COACHMEN INDUSTRIES, INC.
2831 DEXTER DRIVE P.O. BOX 3300 ELKHART, INDIANA 46515
574/262-0123 FAX 574/262-8823
NEWS RELEASE
For immediate release Monday, July 29, 2002
COACHMEN INDUSTRIES, INC. REPORTS GAIN IN SECOND QUARTER EARNINGS;
AFFIRMS OUTLOOK FOR 2002
o SECOND QUARTER EARNINGS OF $0.22 PER SHARE MARK SIGNIFICANT
IMPROVEMENT OVER $0.09 PER SHARE IN YEAR-EARLIER PERIOD.
o RV SALES UP 18.6%; RV PRE-TAX INCOME UP 155%.
o PRODUCTION AND BACKLOGS INCREASING IN RECREATIONAL VEHICLES
AND MODULAR HOUSING.
o CASH FLOW FOR FIRST HALF TOTALS $24.3 MILLION WITH $63.9
MILLION IN CASH AND SECURITIES AT END OF QUARTER.
ELKHART, IND. - Coachmen Industries, Inc. (NYSE: COA) today announced sharply
higher earnings for the second quarter of 2002 compared with a year ago, a
performance that is consistent with the Company's expectation for a return to
profitability for the full year 2002.
Coachmen reported earnings of $3.6 million, or $0.22 per share, for the quarter,
compared with earnings of $1.4 million, or $0.09 per share in the year-earlier
period, which included amortization of goodwill of $0.3 million. Sales for the
second quarter increased to $172.7 million versus $162.4 million in the second
quarter of 2001, reflecting strong RV shipments, but weaker results for modular
telecommunications structures.
Claire C. Skinner, Chairman, Chief Executive Officer and President, remarked,
"As we had publicly forecast, we returned to profitability in the second quarter
and believe we are on track to report a solid profit for the full year. Our
year-to-date performance has improved significantly over last year, and the
trends in our two business groups are becoming increasingly positive. The
momentum in our RV business continues to improve aided by the uptrend in our
market share. Coachmen's share of wholesale
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Coachmen Industries, Inc. Reports Second Quarter Results
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July 29, 2002
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shipments through June is 6.8%, a 9.7% increase from its 2001 full-year share.
As a result of the positive response by our dealers and consumers to our new
design and product changes and an improving overall market for recreational
vehicles, our RV segment is delivering strong gains from the year-ago period.
Coachmen's recreational vehicle wholesale shipments through June are up 17.5%,
compared to a 14.6% growth rate for the entire industry. Primarily as a result
of the decreased demand for commercial structures in the telecommunications
industry, the results of our Modular Housing and Building group continue to be
down from year-ago levels. However, incoming orders for housing and non-telecom
structures started strengthening during the second quarter, giving us some
reasonable optimism about the prospects for this segment, as well, during the
second half of this year."
THREE MONTHS ENDED YEAR TO DATE
JUNE 30, JUNE 30,
2002 2001 2002 2001
------------------ ------------------------
SALES
Recreational Vehicle $ 111,382 $ 93,914 $ 220,903 $ 200,178
Modular Housing/Building 61,323 68,445 106,259 115,105
------- ------ ------- -------
Total $ 172,705 $ 162,359 $ 327,162 $ 315,283
========= ========= ========= =========
PRE-TAX INCOME/(LOSS)
Recreational Vehicle $ 1,110 $ (1,998) $ 537 $ (7,509)
Modular Housing/Building 3,970 5,723 3,458 6,198
Other 327 (1,478) 516 (4,234)
------- ------- ------ ------
Total $ 5,407 $ 2,247 $ 4,511 (5,545)
========= ======== ========= ======
RECREATIONAL VEHICLE SEGMENT
The Company's Recreational Vehicle segment continues to benefit from the
improving trend in both wholesale and retail purchases that began industry-wide
during the fourth quarter of 2001 and is accelerating as 2002 progresses.
Coachmen is experiencing even higher levels of demand for its broad line of
recreational vehicles as a result of the extensive redesign and brand strategy
changes made during 2001. Based on industry reports, Coachmen once again is the
top-selling brand of combined travel trailers/fifth wheels during the first five
months of 2002. Coachmen's daily production rate for all of its brands in units
continues to increase on a sequential basis and was up 21% versus the second
quarter a year ago. In June, production hit its highest level of the year thus
far, up 71% from the year-ago period. Coachmen began shipping Class A and Class
C products from its recently reopened motor home facility in June, and plans to
continue to increase production at all of its Coachmen plants during the third
quarter. Dealer response to Coachmen's 2003 product line has been overwhelmingly
positive. The Company held its annual dealer seminar last week in Orlando
showcasing its 2003 product line, which resulted in a substantial number of new
orders from dealers.
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Coachmen Industries, Inc. Reports Second Quarter Results
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July 29, 2002
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MODULAR HOUSING AND BUILDING SEGMENT
The Company's Modular Housing and Building segment reported lower sales but
remained profitable in the second quarter. Lower demand for commercial modular
structures used in the telecom industry continues to impact the overall
performance of this segment. However, during the second quarter, residential
modular home production and shipments increased. Late in the quarter, the
Company introduced its new line of log homes under the AmerilogTM brand, which
will open a whole new market of growth opportunities for the Company. Coachmen
continues to expect an improvement in the results for this business segment
during the remainder of the year. Backlogs began increasing during the last two
months of the second quarter, and the demand from builders and consumers for the
Company's modular homes is continuing to improve thus far in the third quarter.
BALANCE SHEET/CASH FLOW
As of June 30, 2002, the Company had cash and marketable securities of $63.9
million and shareholders' equity of $211.8 million. Cash flow was $24.3 million
for first six months. Capital expenditures totaled $1.2 million for the second
quarter.
Joseph P. Tomczak, Executive Vice President and Chief Financial Officer, said,
"We are pleased with our improved performance during the second quarter and are
encouraged by the trends for our overall business. Most importantly, we have
returned to profitability. Our gross margins and cash flow are increasing,
operating expenses are below 2001 levels, and our balance sheet remains strong.
As our industry position continues to improve, we are well poised to improve our
performance throughout the remainder of this year and into 2003."
OUTLOOK
Chairman Skinner said, "Our second quarter results were consistent with our
expectations of generating positive year-to-year earnings comparisons for the
remainder of the year. We continue to anticipate reporting earnings of
approximately $0.75 per share for the full year. Reaching that level of earnings
is another solid step toward our ultimate goal of achieving a full recovery in
margins and our historical levels of profitability."
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 producer in the nation with its All American
Homes(R) and Mod-U-Kraf(R) subsidiaries. Modular commercial and
telecommunications 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.
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Coachmen Industries, Inc. Reports Second Quarter Results
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July 29, 2002
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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
574-262-0123
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Coachmen Industries, Inc. Reports Second Quarter Results
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July 29, 2002
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COACHMEN INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
THREE MONTHS ENDED YEAR TO DATE
JUNE 30, JUNE 30,
2002 2001 2002 2001
------- ------- ------- ------
NET SALES $ 172,705 $ 162,359 $ 327,162 $ 315,283
GROSS PROFIT - $ 28,422 28,059 48,402 44,181
GROSS PROFIT - % 16.5% 17.3% 14.8% 14.0%
GS&A - $ 23,507 24,580 44,898 48,129
GS&A - % 13.6% 15.1% 13.7% 15.3%
Operating Income/(Loss) - $ 4,915 3,479 3,504 (3,948)
Operating Income/(Loss) - % 2.8% 2.1% 1.1% (1.3)%
Other (Income)/Expense (492) 1,232 (1,007) 1,597
Pre-Tax Profit/(Loss) - $ 5,407 2,247 4,511 (5,545)
Pre-Tax Profit/(Loss) - % 3.1% 1.4% 1.4% (1.8)%
Tax Expense/(Benefit) 1,844 823 1,538 (2,029)
Net Income/(Loss) 3,563 1,424 2,973 (3,516)
Earning/(Loss) per share -
Basic & Diluted 0.22 0.09 0.18 (0.22)
Weighted Average Shares
Outstanding
Basic 16,112 15,778 16,065 15,773
Diluted 16,228 15,855 16,188 15,773
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Coachmen Industries, Inc. Reports Second Quarter Results
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July 29, 2002
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COACHMEN INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
(UNAUDITED)
ASSETS 6/30/02 12/31/01
- ------ ------- --------
Current Assets
- --------------
Cash and temporary cash investments $ 52,699 $ 28,416
Marketable securities 11,181 12,180
Accounts receivable 33,953 23,756
Inventories 77,155 80,477
Prepaid expenses and other 7,893 9,059
Deferred income taxes 7,115 7,319
----- -----
Total Current Assets 189,996 161,207
Property & equipment, net 77,486 80,233
Goodwill and other, net 18,954 18,954
Other 24,403 28,166
------ ------
Total Assets $ 310,839 $ 288,560
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY 6/30/02 12/31/01
- ------------------------------------ ------- --------
Current Liabilities
- -------------------
Current portion of long-term debt $ 914 $ 917
Accounts payable, trade 33,153 18,944
Accrued income taxes 2,194 494
Other accruals 41,213 38,846
------ ------
Total Current Liabilities 77,474 59,201
Long-term debt 10,777 11,001
Deferred income taxes 2,158 1,257
Other 8,636 8,461
----- -----
Total liabilities 99,045 79,920
Shareholder's Equity 211,794 208,640
------- -------
Total Liabilities and Shareholders'
Equity $ 310,839 $ 288,560
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Coachmen Industries, Inc. Reports Second Quarter Results
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July 29, 2002
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COACHMEN INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
(UNAUDITED)
SIX MONTHS ENDED
JUNE 30,
2002 2001
---- ----
CASH FLOW FROM OPERATIONS $ 20,756 $ 27,568
CASH FLOW FROM/(USED IN) ACQUISITION
& INVESTING ACTIVITIES 4,585 (4,269)
Net Borrowings (227) 239
Issuance/Purchase of Stock 777 525
Dividends (1,608) (1,579)
------ ------
CASH FLOW FROM/(USED IN) FINANCING ACTIVITIES (1,058) (815)
INCREASE IN CASH AND TEMPORARY CASH INVESTMENTS 24,283 22,484
Beginning of Period Cash and Temporary Cash Investments 28,416 2,614
------ -----
ENDING CASH AND TEMPORARY CASH INVESTMENTS $ 52,699 $ 25,098
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