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EXHIBIT 99.1
[LOGO]
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 Tuesday, Feb. 11, 2003
COACHMEN INDUSTRIES, INC. CONFIRMS STRONG GAIN IN
FOURTH QUARTER AND FULL-YEAR EARNINGS
- FOURTH QUARTER EARNINGS OF $0.17 PER SHARE AND 2002 EARNINGS OF $0.62 PER
SHARE MARK SIGNIFICANT IMPROVEMENTS OVER THE LOSSES OF ($0.09) AND
($0.25) PER SHARE IN YEAR-EARLIER PERIODS.
- FOURTH QUARTER RV SALES UP 48% WITH INCREASED PRODUCTION AND SHIPMENTS
OVER PREVIOUS YEAR PERIOD.
ELKHART, IND. - Coachmen Industries, Inc. (NYSE: COA) today confirmed
significantly higher earnings for the fourth quarter and year 2002 compared with
a year ago.
Coachmen reported earnings of $2.7 million, or $0.17 per share for the quarter,
compared with a loss of ($1.4) million or ($0.09) per share in the year-earlier
period, an improvement of 289% on a gain in sales of 28.5%. Sales for the fourth
quarter increased to $164.1 million versus $127.7 million in the same period of
2001, reflecting higher year-over-year RV and residential home shipments but
lower demand for commercial telecommunications structures.
Coachmen's sales of $665.2 million for the year 2002 are 13.3% higher than last
year, while net income of $9.9 million and earnings per share of $0.62 for the
year represent increases of $13.9 million and $0.87, respectively, and earnings
per share improvement of 348%. Driving the year-over-year advances were a 0.7
percentage point improvement in gross profit, resulting from rising
productivity, coupled with a 2.0 percentage point improvement in GS&A expenses
as a percent of sales. Sales increases of 13.3% were supported with $1.7 million
less in operating expenses.
Claire C. Skinner, Chairman, Chief Executive Officer and President, remarked,
"While we are disappointed that we fell short of our aggressive earnings
expectations of $0.75 per share, we significantly returned the business to
profitability during 2002 and established a solid foundation from which to build
upon during 2003. As reported, the
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Coachmen Industries, Inc. Reports Fourth Quarter Results
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Feb. 11, 2003
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RV segment performed admirably during the year, accelerating its performance as
the year progressed. We expected the accelerating trend to continue through the
fourth quarter, but, while the performance remained strong, it leveled off, as
did industry sales. November results did not keep pace with October, but we
believed this most probably was temporary and primarily related to timing
issues; specifically, the National RV Trade Show in Louisville and harsh
early-winter storms that delayed the delivery of residential finished goods."
"Our belief was that the forecast could still be achieved and that a number of
factors would come together in December to enable us to achieve our estimate,"
Skinner added. "Those factors included the shipment of a good portion of the
Louisville RV orders and the delivery of the modular home finished goods that
couldn't get delivered in November due to the weather, in addition to the
housing deliveries and order inflow of December. Unfortunately, market and
weather challenges continued, coupled with intensified concerns about Iraq. As a
result, the Company missed its range of earnings guidance."
THREE MONTHS ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
2002 2001 2002 2001
__________________ ________________
SALES
Recreational Vehicle $ 103,736 $ 70,001 $ 435,548 $ 344,645
Modular Housing/Building 60,350 57,728 229,644 242,567
--------- --------- --------- ---------
Total $ 164,086 $ 127,729 $ 665,192 $ 587,212
========= ========= ========= =========
PRE-TAX INCOME/(LOSS)
Recreational Vehicle $ ($1,212)$ (2,571) $ 1,903 $ (11,631)
Modular Housing/Building 3,050 2,980 10,058 15,466
Other 2,007 (2,591) 3,035 (9,953)
--------- -------- --------- ---------
Total $ 3,845 $ (2,182) $ 14,996 (6,118)
========= ======== ========= ========
RECREATIONAL VEHICLE SEGMENT
The Company's Recreational Vehicle segment continues to show improved
year-over-year results with a full-year sales increase of 26.4% and a $13.5
million pre-tax income improvement. 2002 pre-tax profits were $1.9 million
compared to a loss of ($11.6) million in 2001. Fourth quarter sales were up
48.2% while the segment's fourth quarter pre-tax loss was reduced by 52.9%.
Improving industry trends, as well as the Company's extensive branding and
design improvements, continue to result in increased dealer and consumer demand.
Full-year recreational vehicle wholesale shipments for the Company were up 29.7%
compared to 2001, while the industry was up 22.1% in the same categories.
Because the Company outperformed the industry, Coachmen's share of recreational
vehicle wholesale shipments for the year was 6.6%, a 6.5% increase from its 2001
full-year share.
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Coachmen Industries, Inc. Reports Fourth Quarter Results
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Feb. 11, 2003
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The Company continues to see mounting improvements in its Recreational Vehicle
business that should prove beneficial in 2003. Wholesale shipments to dealers
were up 52.8% for the fourth quarter compared to a 34.6% growth rate for the
entire industry. Coachmen's unit production rate was up 51.9% during the quarter
and 33.3% for the year compared to 2001. As a result of increased production
rates, the Company has brought its unit backlogs to more reasonable levels
during the fourth quarter, but still substantially up from the beginning of the
year. Backlogs have increased 55.8% since January. These continuing healthy
backlogs together with the dealers' strong response to Coachmen's offerings at
the Louisville show contributed to the Company's recent decision to add more
production capacity at its Coachmen RV operations in Middlebury, Indiana and
Fitzgerald, Georgia.
MODULAR HOUSING AND BUILDING SEGMENT
The Company's Modular Housing and Building segment remained profitable in the
fourth quarter with sales and pre-tax earnings up 4.5% and 2.3%, respectively,
over the year-ago period. For the first time in 2002, total Modular Housing and
Building segment quarterly shipments surpassed 2001 shipment levels, up 3.6%
during the quarter. The results for the overall segment continue to be
negatively impacted by lower demand for commercial modular structures used in
the telecommunications industry. The results for the residential portion of the
business have been hampered by the market economics associated with it. The
primary market served is the rural, scattered lot, secondary or tertiary city
market, with an ultimate customer who is largely dependent on either the
agriculture economy or the manufacturing sector for his or her livelihood. These
buyers have been plagued in 2002 by concerns over the economy, world events,
drought, lack of a farm bill, and high unemployment. Despite that, residential
unit production was up, increasing 7.3% for the quarter and 3.8% for 2002 versus
the year-ago periods. Shipments from the Company's residential home operations
were up 9.7% during the fourth quarter.
With that as a foundation, the Company is pursuing higher growth markets in
2003, such as subdivision opportunities and hotel and assisted living center
developments. On the non-residential commercial side, the Company is pursuing
other markets for its products, such as concrete portable schoolrooms for
hurricane-prone areas and new uses for Miller's steel-framing technology. To
gain efficiencies in 2003, Miller Building Systems closed its New York operation
in December. Production will be assumed by the neighboring Vermont and
Pennsylvania operations, increasing their productivity and throughput.
BALANCE SHEET/CASH FLOW
As of December 31, 2002, the Company had cash and marketable securities of $24.2
million and shareholders' equity of $209.4 million. Cash flow from operations
was $13.0 million for the year. Capital expenditures totaled $1.9 million for
the fourth
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Coachmen Industries, Inc. Reports Fourth Quarter Results
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Feb. 11, 2003
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quarter and $5.3 million for the year. In the fourth quarter, the Company sold
real estate for $4.0 million for an after-tax profit of $0.8 million. Sales for
the year totaled $10.0 million for after-tax gains of $1.6 million. During the
third quarter, the Company paid back loans it had accumulated against the cash
value of certain executive life insurance policies totaling $17.6 million.
Coachmen repurchased 263,300 shares totaling $4.0 million during the fourth
quarter and 505,600 shares during the year for $7.8 million. Book value per
share is $13.37.
Joseph P. Tomczak, Executive Vice President and Chief Financial Officer, said,
"Our fourth quarter results, while less than our estimate, were a marked
improvement over last year. More importantly, we returned to profitability in
2002 by a wide margin. Compared to 2001, we delivered across the board
improvements in our financial performance and we continued our focus on cash
flow and keeping a strong balance sheet. That strength is demonstrated by the
fact that our capital structure is made up of less than 5% debt. We are also
keeping an extreme focus on improving the results of our Modular Housing and
Building business, especially Miller Building Systems that had predominantly
served the telecommunications industry. With the closing of Miller's New York
facility in December and other efficiency improvements, we're focused on
returning that division to profitability during 2003."
OUTLOOK
Chairman Skinner said, "Our goal in 2003 is to strengthen the foundation we
built upon during 2002 and further improve our overall performance. With solid
growth in shipment and production levels, and a healthy backlog going into 2003,
our RV segment is gaining momentum, and we anticipate a strong follow-up
performance out of the group this year. We are, at the same time, extremely
focused on improving the results of the Modular Housing and Building business.
The new modular markets and products mentioned previously indicate that 2003
should be an exciting year. While these are all positive developments, we, like
all Americans, are concerned about the economy, terrorism, and war. Because of
that, we feel it is not advisable to give a definitive forecast for 2003 at this
time. Assuming reasonable stability, we anticipate sales growth of between 8%
and 10%, and earnings growth in the 30% to 40% range. As conditions become
clearer, we will endeavor to tighten up the forecast."
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
telecommunication structures are manufactured by the Company's Miller Building
Systems subsidiary. Prodesign, LLC is a subsidiary that custom thermoforms
composite and plastic parts for numerous industries under the PRODESIGN(R)
brand. Coachmen Industries, Inc. 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 Fourth Quarter Results
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Feb. 11, 2003
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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, THE AVAILABILITY AND COST OF REAL ESTATE FOR RESIDENTIAL
HOUSING, 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, THE IMPACT OF POTENTIAL WAR AGAINST IRAQ ON THE ECONOMY,
CONSUMER CONFIDENCE, AND OIL SUPPLIES, 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 Fourth Quarter Results
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COACHMEN INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
THREE MONTHS ENDED YEAR ENDED
--------------------- ---------------------
DECEMBER 31, DECEMBER 31,
------------ ------------
2002 2001 2002 2001
--------- -------- --------- ---------
Net Sales $ 164,086 $ 127,729 $ 665,192 $ 587,212
Gross Profit - $ 25,204 18,807 99,219 83,445
Gross Profit - % 15.4% 14.7% 14.9% 14.2%
GS&A - $ 22,416 21,562 86,198 87,934
GS&A - % 13.7% 16.9% 13.0% 15.0%
Operating Income/(Loss) - $ 2,788 (2,755) 13,021 (4,489)
Operating Income/(Loss) - % 1.7% (2.2)% 2.0% (0.8)%
Other (Income)/Expense (1,057) (573) (1,975) 1,629
Pre-Tax Profit/(Loss) - $ 3,845 (2,182) 14,996 (6,118)
Pre-Tax Profit/(Loss) - % 2.3% (1.7)% 2.3% (1.0)%
Tax Expense/(Benefit) 1,185 (742) 5,067 (2,167)
Net Income/(Loss) 2,660 (1,440) 9,929 (3,951)
Earning/(Loss) per share -
Basic & Diluted 0.17 (0.09) 0.62 (0.25)
Weighted Average Shares Outstanding
Basic 15,778 15,635 15,996 15,835
Diluted 15,871 15,635 16,107 15,835
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Coachmen Industries, Inc. Reports Fourth Quarter Results
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Feb. 11, 2003
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COACHMEN INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
(UNAUDITED)
ASSETS 12/31/02 12/31/01
- ------ -------- --------
CURRENT ASSETS
Cash and temporary cash investments $ 16,549 $ 28,416
Marketable securities 7,641 12,180
Accounts receivable 29,408 23,756
Inventories 85,010 80,477
Prepaid expenses and other 8,862 9,059
Deferred income taxes 6,885 7,319
-------- --------
Total Current Assets 154,355 161,207
Property & equipment, net 78,889 80,233
Goodwill and other, net 18,954 18,954
Cash value of life insurance 33,155 13,454
Real estate held for sale 276 11,129
Other 7,566 3,583
-------- --------
Total Assets $ 293,195 $ 288,560
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LIABILITIES AND SHAREHOLDERS' EQUITY 12/31/02 12/31/01
- ------------------------------------ -------- --------
CURRENT LIABILITIES
Current portion of long-term debt $ 902 $ 917
Accounts payable, trade 18,801 18,944
Accrued income taxes 1,222 494
Other accruals 39,856 38,846
--------- ---------
Total Current Liabilities 60,781 59,201
Long-term debt 10,097 11,001
Deferred income taxes 4,123 1,257
Other 8,768 8,461
--------- ---------
Total liabilities 83,769 79,920
Shareholder's Equity 209,426 208,640
--------- ---------
Total Liabilities and
Shareholders' Equity $ 293,195 $ 288,560
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Coachmen Industries, Inc. Reports Fourth Quarter Results
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Feb. 11, 2003
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COACHMEN INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
(UNAUDITED)
YEAR ENDED
----------------------
DECEMBER 31,
------------
2002 2001
-------- --------
CASH FLOW FROM OPERATIONS $ 13,027 $ 41,294
CASH FLOW FROM/(USED IN) ACQUISITION &
INVESTING ACTIVITIES 4,828 (4,384)
Net Borrowings (19,377) (8,643)
Issuance/Purchase of Stock (6,824) 704
Dividends (3,521) (3,169)
-------- --------
CASH FLOW FROM/(USED IN) FINANCING ACTIVITIES (29,722) (11,108)
INCREASE IN CASH AND TEMPORARY CASH INVESTMENTS (11,867) 25,802
Beginning of Period Cash and Temporary
Cash Investments 28,416 2,614
-------- --------
ENDING CASH AND TEMPORARY CASH INVESTMENTS $ 16,549 $ 28,416
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