EXECUTION VERSION
EXHIBIT 10.28
Amendment No. 4 to Debtor-In-Possession
Financing Agreement
This AMENDMENT NO. 4 TO THE DEBTOR-IN-POSSESSION FINANCING AND
SECURITY AGREEMENT (this "Amendment No. 4"), dated as of July 14, 2003, by and
among Oakwood Homes Corporation, as a debtor and a debtor-in-possession, a North
Carolina corporation (the "Parent"), the affiliates of the Parent set forth on
the signature pages hereto, each as a debtor and a debtor-in-possession
(together with the Parent, individually a "Debtor Borrower" and collectively,
the "Debtor Borrowers"), Oakwood Servicing Holdings Co., LLC, a Nevada limited
liability company (individually the "Non-Debtor Borrower" and collectively with
the Debtor Borrowers, the "Borrowers"), the financial institutions set forth on
the signature pages hereto (each individually a "Tranche A Lender" and
collectively, the "Tranche A Lenders") and Greenwich Capital Financial Products,
Inc., a Delaware corporation, as agent for the Tranche A Lenders (in such
capacity, the "Agent"). Reference is made to the Debtor-in-Possession Financing
and Security Agreement dated as of January 28, 2003, as amended by Amendment No.
1 to Debtor-In-Possession Financing and Security Agreement dated as of February
27, 2003 ("Amendment No. 1"), Amendment No. 2 to Debtor-In-Possession Financing
and Security Agreement dated as of March 17, 2003 ("Amendment No. 2") and
Amendment No. 3 to Debtor-In-Possession Financing and Security Agreement dated
as of May 30, 2003 ("Amendment No. 3") (collectively, the "Financing Agreement")
among the Borrowers, the Tranche A Lenders and the Agent.
SECTION 1. All terms used in this Amendment No. 4 which are
defined in the Financing Agreement and which are not defined herein have the
same meanings as set forth in the Financing Agreement.
SECTION 2. This Amendment No. 4 hereby incorporates all terms
and conditions in Amendment No. 1, which is attached as Exhibit A hereto,
Amendment No. 2, which is attached as Exhibit B hereto, and Amendment No. 3,
which is attached as Exhibit C hereto, other than those terms and conditions
which are being expressly amended herein.
SECTION 3. This Amendment No. 4 hereby incorporates all terms
and conditions in the Financing Agreement, other than those terms and conditions
which are being expressly amended herein.
SECTION 4. Each of the undersigned hereby agrees:
a.) to replace all references to the "Budget" in the
Financing Agreement with the "Amended Budget" and to replace the definition of
"Budget" with the following definition of "Amended Budget":
"Amended Budget" means the "B+ Forecast dated July 1, 2003"
attached hereto as Exhibit F, including a monthly cash flow forecast, prepared
by the Borrowers and delivered to the Agent, as such forecast may from time to
time be supplemented or revised by the Debtor Borrowers in a manner acceptable
to the Tranche A Lenders.
b.) to amend the definition of "Final Maturity Date" so
that it reads as follows:
"Final Maturity Date" means the date which is the earliest of
(i) the date of the substantial consummation (as defined in Section 1101(2) of
the Bankruptcy Code) of a plan of reorganization in the Chapter 11 Cases that
has been confirmed by an order of the Bankruptcy Court, (ii) November 30, 2003,
(iii) the sale of a material part of any Borrower's assets (excluding Permitted
Dispositions), whether under Section 363 of the Bankruptcy Code, a confirmed
plan of reorganization or otherwise; (iv) the date of the conversion of any of
the Chapter 11 Cases to a case under Chapter 7 of the Bankruptcy Code; (v) the
date of the dismissal of any of the Chapter 11 Cases; or (vi) such earlier date
on which either (A) all Tranche A Revolving Loans shall become due and payable,
in whole, in accordance with the terms of this Agreement and the other Tranche A
Revolving Loan Documents or (B) all Tranche A Revolving Loans and all other
Obligations for the payment of money shall be paid in full and the Tranche A
Total Commitment and this Agreement are terminated.
c.) to amend the definition of "Financial Statements" so
that it reads as follows:
"Financial Statements" means (i) the audited consolidated
balance sheet of the Borrowers and their Subsidiaries for the Fiscal Year ended
September 30, 2002 and the related consolidated statement of operations,
shareholders' equity and cash flows for the Fiscal Year then ended and (ii) the
unaudited consolidated balance sheet of the Borrowers and their Subsidiaries as
of October 31, 2002 to November 15, 2002 (inclusive) and November 16, 2002 to
December 31, 2002 (inclusive) and the related consolidated statement of
operations, shareholder's equity and cash flows for the two (2) periods then
ended.
d.) to amend the definition of "Fiscal Year" so that it
reads as follows:
"Fiscal Year" means the fiscal year of the Borrowers ending
on June 30 of each year after 2002.
e.) to add the following definitions:
"Original Final Maturity Date" shall mean October 15, 2003.
"Real Property Collateral (not under Contract)" shall mean all
Real Property Collateral as of any date of determination that is not Real
Property Collateral under Contract.
f.) and to amend the definition of "Tranche A Total
Commitment" so that it reads as follows:
"Tranche A Total Commitment" means $75,000,000 (the "Base
Commitment"); provided that for up to 10 consecutive days in any calendar month
the Base Commitment shall be increased by $15,000,000 (such additional
$15,000,000 commitment, the "Swing Line Commitment"), as such amount may be
reduced from time to time pursuant to the terms of this Agreement or limited by
order of the Bankruptcy Court; provided further that at least 10 days
2
must elapse between the date the Swing Line Commitment is reduced to zero and
the date on which any amount is redrawn under the Swing Line Commitment.
SECTION 5. Each of the undersigned hereby agrees to amend
Section 2.01 of the Financing Agreement so that the following Maximum Borrowing
Base Sublimits are revised to read as follows (with all other Maximum Borrowing
Base Sublimit amounts provided in Section 2.01 of the Financing Agreement
remaining constant):
a.) $40,000,000 for Eligible Inventory;
b.) $10,000,000 for REMIC Retained Interests;
c.) $55,000,000 for Servicing Advance Receivables;
d.) $25,000,000 for Corporate Advance Receivables;
e.) $17,500,000 for Real Property Collateral (not under
Contract); and
f.) $10,000,000 for Real Property Collateral under
Contract.
SECTION 6. Each of the undersigned hereby agrees to amend
Section 2.08(a) of the Financing Agreement so that it reads as follows:
The Borrowers shall pay to the Agent for the account of the
Tranche A Lenders, in accordance with a written agreement among such Tranche A
Lenders, a non-refundable facility fee (the "Facility Fee") equal to (a) two (2)
percent of the Maximum Credit minus the Due Diligence Fee, payable upon entry of
the Final Bankruptcy Court Order; (b) two (2) percent of the Maximum Credit
payable on the Original Final Maturity Date; and (c) $2,000,000 payable on the
Original Final Maturity Date.
SECTION 7. Each of the undersigned hereby agrees to amend
Section 7.01(n) of the Financing Agreement in its entirety so that it reads as
follows:
(n) Financial Covenants. (i) Net Sales. On a cumulative
basis for calendar year 2003, measured at the end of each calendar
month beginning in August 2003, total consolidated net sales (retail
and wholesale) of manufactured housing units shall not have a negative
variance greater than 15% (or $20,000,000, whichever is greater) of the
"Total Net Sales" as shown on the Consolidated Income Statement of the
Amended Budget on a cumulative basis for the period measured.
(ii) Adjusted Consolidated EBITDA. On a
cumulative basis for calendar year 2003, measured at the end of each
calendar month beginning in August 2003, the Borrowers' consolidated
EBITDA adjusted to include restructuring charges for the relevant
period shall not have a negative variance greater than $10,000,000 from
"Consolidated EBITDA" adjusted to include "Restructuring Charges", in
each case as shown on the Consolidated Income Statement of the Amended
Budget on a cumulative basis for the period measured.
3
(iii) Availability. On a cumulative basis
for calendar year 2003, measured at all times beginning in July 2003,
the sum of (i) Tranche A Borrowing Base Availability and (ii)
unrestricted cash or Permitted Investments of the Borrowers shall be no
less than $10,000,000, provided that, at no time shall the Tranche A
Borrowing Base Availability be less than $5,000,000.
(iv) Compliance with Financial
Covenants. Determination of compliance with the financial covenants
listed in this Section 7.01(n) is to be based on same accounting
policies, procedures and methods as used to develop the Amended Budget.
SECTION 8. Each of the undersigned hereby agrees to amend
Section 7.01(v) of the Financing Agreement so that it reads as follows:
File (A) a disclosure statement and a plan of
reorganization by February 18, 2003; (B) obtain an order of the
Bankruptcy Court approving a disclosure statement by September 30, 2003
(the "Disclosure Statement Date"); and (C) obtain an order of the
Bankruptcy Court confirming a plan of reorganization, which order shall
have become final and non-appealable by November 15, 2003 (the
"Confirmation Date"); provided however that a breach of any of the
foregoing covenants in this Section 7.01(v) shall not become an Event
of Default unless all the Tranche A Lenders so agree.
SECTION 9. Each of the undersigned hereby agrees to amend
Section 7.01(w) of the Financing Agreement so that it reads as follows:
Obtain an order of the Bankruptcy Court approving the
disclosure statement for a plan of reorganization by September 30,
2003, which order shall become final and non-appealable.
SECTION 10. The amendments contained in Sections 4, 5, 6, 7, 8
and 9 hereto are limited in effect, shall apply only as expressly set out herein
and shall not constitute, or be deemed to be a consent to any other transaction
or a waiver or amendment of any other provisions of the Financing Agreement,
except as specified herein. Except as aforesaid, the Financing Agreement shall
remain in full force and effect and is hereby ratified and confirmed in all
respects.
SECTION 11. This Amendment No. 4 shall be governed by and
construed in accordance with the laws of the State of New York.
SECTION 12. This Amendment No. 4 shall become effective upon
receipt by the Agent of counterparts of this Amendment No. 4 executed by each of
the Borrowers, the Agent and the Lenders, and upon Bankruptcy Court approval of
this Amendment No. 4 and each attachment hereto by July 31, 2003.
4
IN WITNESS WHEREOF, the parties hereto have caused this
Amendment No. 4 to be executed by their respective officers thereunto duly
authorized, as of the date first above written.
BORROWERS:
OAKWOOD HOMES CORPORATION,
a North Carolina corporation
_______________________________
By: Robert A. Smith
Its: Executive Vice President
OAKWOOD ACCEPTANCE CORPORATION,
LLC, a Delaware limited liability company
_______________________________
By: Robert A. Smith
Its: Vice President
OAKWOOD SHARED SERVICES, LLC,
a Delaware limited liability company
_______________________________
By: Robert A. Smith
Its: Vice President
OAKWOOD SERVICING HOLDINGS CO., LLC
a Nevada limited liability company
_______________________________
By: Randelle R. Smith
Its: Assistant Treasurer
[ADDITIONAL BORROWERS LISTED ON THE FOLLOWING PAGE]
OAKWOOD MOBILE HOMES, INC.,
a North Carolina corporation
_______________________________
By: Robert A. Smith
Its: Vice President
CREST CAPITAL, LLC,
a Nevada limited liability company
_______________________________
By: Randelle R. Smith
Its: Vice President
FSI FINANCIAL SERVICES, INC.,
a Michigan corporation
_______________________________
By: Robert A. Smith
Its: Vice President
TRI-STATE INSURANCE AGENCY, INC.,
a Michigan corporation
_______________________________
By: Robert A. Smith
Its: Vice President
[ADDITIONAL BORROWERS LISTED ON THE FOLLOWING PAGE]
HBOS MANUFACTURING, LP,
a Delaware limited partnership
By: Oakwood Mobile Homes, Inc.,
Its general partner
_______________________________
By: Robert A. Smith
Its: Vice President
PREFERRED HOUSING SERVICES, LP, a
Delaware limited partnership
By: Oakwood Mobile Homes, Inc.,
Its general partner
_______________________________
By: Robert A. Smith
Its: Vice President
NEW DIMENSION HOMES, INC.,
a Delaware corporation
_______________________________
By: Robert A. Smith
Its: Vice President
GOLDEN WEST LEASING, LLC,
a Nevada limited liability company
_______________________________
By: Randelle R. Smith
Its: Vice President
[ADDITIONAL BORROWERS LISTED ON THE FOLLOWING PAGE]
DREAMSTREET COMPANY, LLC,
a Delaware limited liability company
_______________________________
By: Robert A. Smith
Its: Vice President
HOME SERVICE CONTRACT, INC.,
a Michigan corporation
_______________________________
By: Robert A. Smith
Its: Vice President
SUBURBAN HOME SALES, INC.,
a Michigan corporation
_______________________________
By: Robert A. Smith
Its: Vice President
OAKWOOD MHD4, LLC,
a Delaware limited liability company
_______________________________
By: Robert A. Smith
Its: Vice President
[AGENT AND LENDER SIGNATURE PAGE FOLLOWS]
AGENT AND TRANCHE A LENDER:
GREENWICH CAPITAL FINANCIAL PRODUCTS, INC.
By: ______________________________
Name:
Title:
TRANCHE A LENDER:
BH FINANCE LLC
By: ______________________________
Name:
Title:
EXHIBIT A
EXHIBIT B
EXHIBIT C
EXHIBIT F
DRAFT
OAKWOOD HOMES
5-YEAR PLAN
CONSOLIDATED ACTUAL ACTUAL ACTUAL ACTUAL
- -------------------------------------------------------------------------------------------------------------------------
24 September 2003 - 10:24 AM FYE 2002 OCT-02 NOV-02 DEC-02 JAN-03
- -------------------------------------------------------------------------------------------------------------------------
INCOME STATEMENT
REVENUE
Net Sales
Retail $ 515,849 $ 35,180 $ 9,541 $ 51,684 $ 24,202
Wholesale 410,686 30,886 22,712 27,417 22,282
--------- --------------------------------------------------------
Net Sales 926,535 66,066 32,253 79,101 46,484
Financial Services Income
Consumer Finance (37,412) 4,028 4,134 (53,543) 6,808
Insurance 29,938 2,270 1,146 1,377 1,020
--------- --------------------------------------------------------
Financial Services Income (7,474) 6,298 5,280 (52,166) 7,828
Other Income 7,553 428 257 405 462
--------- --------------------------------------------------------
TOTAL REVENUES $ 926,614 $ 72,792 $ 37,790 $ 27,340 $ 54,774
--------- --------------------------------------------------------
COST AND EXPENSES
Cost of Sales 708,953 52,459 24,291 78,695 38,077
Gross Profit Percent 23.5% 20.6% 24.7% 0.5% 18.1%
General & Administrative Expenses 52,404 4,502 5,641 10,351 4,090
as a percent of sales 5.7% 6.8% 17.5% 13.1% 8.8%
Service Expenses (including warranty) 45,580 3,558 2,052 4,551 3,422
as a percent of sales 4.9% 5.4% 6.4% 5.8% 7.4%
Selling Expenses 161,865 11,327 5,255 10,832 7,737
as a percent of sales 17.5% 17.1% 16.3% 13.7% 16.6%
Consumer Finance Operating Expenses 51,453 4,393 2,449 7,089 4,076
Insurance Operating Expenses 13,511 1,262 662 83 336
Provision for Losses on Credit Sales 52,512 351 531 2,126 1,418
Interest Expenses 40,126 3,458 1,765 4,545 3,579
--------- --------------------------------------------------------
TOTAL COST AND EXPENSES $ 417,451 $ 81,310 $ 42,646 $ 118,272 $ 62,735
RESTRUCTURING COSTS & IMPAIRMENT COSTS 71,990 - 34,514 2,427 -
Recapture of Servicing Liabilities (75,050)
Impairment of REMIC Regular Interests 1,209
Impairment of Guarantee Liabilities 235,776
Professional Fees 4,369 1,854
--------- --------------------------------------------------------
TOTAL RESTRUCTURING COSTS & IMPAIRMENT COSTS 71,990 - 34,514 168,731 1,854
INCOME BEFORE INCOME TAXES (271,780) (8,518) (39,370) (259,663) (9,816)
Provision for Income Taxes 40% (78,729) - - - -
--------- --------------------------------------------------------
NET INCOME $(193,051) $ (8,518) $ (39,370) $(259,663) $ (9,816)
========= ========================================================
Housing and Corporate (3,468) (17,764) (19,963) (7,009)
OAC (1,892) 510 715 2,406
Insurance 1,008 484 1,294 684
--------------------------------------------------------
EBITDA $ (4,352) $ (16,770) $ (17,954) $ (3,919)
========================================================
5-YEAR PLAN
CONSOLIDATED ACTUAL ACTUAL ACTUAL ACTUAL FORECAST
- ----------------------------------------------------------------------------------------------------------------------
24 September 2003 - 10:24 AM FEB-03 MAR-03 APR-03 MAY-03 JUN-03
- ----------------------------------------------------------------------------------------------------------------------
INCOME STATEMENT
REVENUE
Net Sales
Retail $ 24,554 $ 34,871 $ 22,899 $ 21,807 $ 23,208
Wholesale 24,776 29,193 21,154 25,440 31,811
---------------------------------------------------------------------
Net Sales 49,330 64,064 44,053 47,247 55,019
Financial Services Income
Consumer Finance 6,107 (70,042) 5,218 5,019 4,667
Insurance 38 294 83 5 425
---------------------------------------------------------------------
Financial Services Income 6,145 (69,748) 5,301 5,024 5,092
Other Income 515 2,584 2,086 1,438 458
---------------------------------------------------------------------
TOTAL REVENUES $ 55,990 $ (3,100) $ 51,440 $ 53,709 $ 60,569
---------------------------------------------------------------------
COST AND EXPENSES
Cost of Sales 40,538 47,393 36,797 37,197 41,575
Gross Profit Percent 17.8% 26.0% 16.5% 21.3% 24.4%
General & Administrative Expenses 3,348 3,072 3,387 3,326 3,254
as a percent of sales 6.8% 4.8% 7.7% 7.0% 5.9%
Service Expenses (including warranty) 3,419 1,566 3,388 3,257 2,679
as a percent of sales 6.9% 2.4% 7.7% 6.9% 4.9%
Selling Expenses 7,622 7,805 6,371 6,405 6,008
as a percent of sales 15.5% 12.2% 14.5% 13.6% 10.9%
Consumer Finance Operating Expenses 2,500 4,246 2,102 2,332 5,084
Insurance Operating Expenses 30 18 3 1,076 38
Provision for Losses on Credit Sales 434 406 403 414 380
Interest Expenses 5,045 3,921 3,671 3,367 1,390
---------------------------------------------------------------------
TOTAL COST AND EXPENSES $ 62,936 $ 68,427 $ 56,122 $ 57,374 $ 60,408
RESTRUCTURING COSTS & IMPAIRMENT COSTS - 621 - (551) -
Recapture of Servicing Liabilities (12,740)
Impairment of REMIC Regular Interests
Impairment of Guarantee Liabilities
Professional Fees 2,674 2,187 1,575 1,628 1,650
---------------------------------------------------------------------
TOTAL RESTRUCTURING COSTS & IMPAIRMENT COSTS (10,066) 2,808 1,575 1,077 1,650
INCOME BEFORE INCOME TAXES 3,120 (74,335) (6,257) (4,742) (1,489)
Provision for Income Taxes 40% - - - - -
---------------------------------------------------------------------
NET INCOME $ 3,120 $ (74,335) $ (6,257) $ (4,742) $ (1,489)
=====================================================================
Housing and Corporate (6,689) 5,909 (4,238) (1,994) 1,437
OAC 4,540 4,299 3,966 3,490 681
Insurance 8 276 80 (1,071) 387
---------------------------------------------------------------------
EBITDA $ (2,141) $ 10,484 $ (192) $ 425 $ 2,505
=====================================================================
5-YEAR PLAN
CONSOLIDATED FORECAST FORECAST FORECAST
- -------------------------------------------------------------------------------------------------------
24 September 2003 - 10:24 AM JUL-03 AUG-03 SEP-03 FYE 2003
- -------------------------------------------------------------------------------------------------------
INCOME STATEMENT
REVENUE
Net Sales
Retail $ 18,443 $ 18,578 $ 22,847 $ 307,814
Wholesale 23,440 26,788 31,811 317,709
------------------------------------------------------
Net Sales 41,883 45,366 54,658 625,524
Financial Services Income
Consumer Finance 4,786 4,912 4,877 (73,030)
Insurance 446 445 561 8,111
------------------------------------------------------
Financial Services Income 5,232 5,357 5,437 (64,920)
Other Income 361 361 449 9,804
------------------------------------------------------
TOTAL REVENUES $ 47,476 $ 51,083 $ 60,545 $ 570,408
======================================================
COST AND EXPENSES
Cost of Sales 32,745 35,673 41,799 507,240
Gross Profit Percent 21.8% 21.4% 23.5% 18.9%
General & Administrative Expenses 3,069 3,117 3,232 50,388
as a percent of sales 7.3% 6.9% 5.9% 8.1%
Service Expenses (including warranty) 2,024 2,200 2,657 34,773
as a percent of sales 4.8% 4.8% 4.9% 5.6%
Selling Expenses 5,429 5,505 5,975 86,271
as a percent of sales 13.0% 12.1% 10.9% 13.8%
Consumer Finance Operating Expenses 3,196 3,176 5,024 45,667
Insurance Operating Expenses 38 38 38 3,622
Provision for Losses on Credit Sales 380 380 380 7,603
Interest Expenses 1,463 2,494 1,516 36,215
------------------------------------------------------
TOTAL COST AND EXPENSES $ 48,344 $ 52,583 $ 60,621 $ 771,778
RESTRUCTURING COSTS & IMPAIRMENT COSTS - - - 37,011
Recapture of Servicing Liabilities (87,790)
Impairment of REMIC Regular Interests 1,209
Impairment of Guarantee Liabilities 235,776
Professional Fees 1,650 1,650 2,800 22,037
------------------------------------------------------
TOTAL RESTRUCTURING COSTS & IMPAIRMENT COSTS 1,650 1,650 2,800 208,243
INCOME BEFORE INCOME TAXES (2,518) (3,150) (2,876) (409,613)
Provision for Income Taxes 40% - - - -
------------------------------------------------------
NET INCOME $ (2,518) $ (3,150) $ (2,876) $(409,613)
======================================================
Housing and Corporate (1,544) (1,286) (220) (56,829)
OAC 2,674 2,806 839 25,034
Insurance 408 407 523 4,488
------------------------------------------------------
EBITDA $ 1,539 $ 1,927 $ 1,142 $ (27,307)
======================================================
Page 1 of 4
DRAFT
DRAFT
OAKWOOD HOMES
5-YEAR PLAN
CONSOLIDATED ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL
- -----------------------------------------------------------------------------------------------------------------------------------
24 September 2003 - 10:24 AM FYE 2002 OCT-02 NOV-02 DEC-02 JAN-03 FEB-03
- -----------------------------------------------------------------------------------------------------------------------------------
CONSOLIDATED CASH FLOW
Operating Activities
Net Income/(Loss) $ (8,518) $ (39,370) $ (259,663) $ (9,816) $ 3,120
Depreciation and Amortization 1,159 375 1,776 2,725 4,276
Non Cash Asset Impairment - 20,684 187,870 - (12,740)
(Gains) losses on sale of securities and loans sold or held for sale 48,683
(Increase)/Decrease in Retained Interests (112) (120) (122) (111) (122)
Reserve for Uncollectible Receivables 115 3,223 (6,096) 1,522 2,905
Trade Accounts Receivable 6,684 3,641 (4,140) (4,014) (2,080)
Escrow Advances Receivable (327) (170) 1,094 (869) 756
Extensions Receivable 262 153 3,132 1,627 846
Income Taxes Receivable 10 3 20,409 - -
Loan Servicing Assets 318 (84) (1,125) - (115)
Other Receivables 9,992 (10,341) 10,072 8,549 (13,940)
Change in Inventory (1,204) (5,270) 31,664 4,869 6,673
Accounts Payable & Accrued Liabilities (20,425) 9,638 41,378 (13,691) (3,938)
Insurance Reserves and Unearned Premiums (950) (9,816) (5,442) - -
Deferred Income Taxes - - - - -
Other Assets 8,316 450 (262) (54,558) 471
Other Long-Term Obligations / Other Assets (519) 1 13 10 -
-----------------------------------------------------------
Cash Provided (used) by Operations (5,199) (27,003) 69,241 (63,757) (13,888)
Loans Originated (65,324) (18,030) (69,437) (33,152) (28,887)
Principal receipts on loans 2,423 37 3,057 2,094 3,371
Sale of Loans - - - - -
-----------------------------------------------------------
Cash Provided/(Used) by Operating Activities $ (68,100) $ (44,996) $ 2,861 $ (94,815) $ (39,404)
----------------------------------------------------------
Investing Activities
Acquisition of Properties & Facilities (677) (305) (128) 633 1,493
Other
-----------------------------------------------------------
Cash Provided/(Used) by Investing Activities $ (677) $ (305) $ (128) $ 633 $ 1,493
-----------------------------------------------------------
Financing Activities
Net Borrowings/(Repayments) on Short-Term Credit Facilities 68,000 31,000 45,000 5,618 (2,543)
Net Borrowings/(Repayments) on DIP 3,462 1,050 70,490 30,000
Payments on notes and bonds (117) (1) (76) 7 (3)
-----------------------------------------------------------
Cash Provided/(Used) by Financing Activities $ 67,883 $ 34,461 $ 45,974 $ 76,115 $ 27,454
-----------------------------------------------------------
Cash and Cash Equivalents
Beginning of Period 20,107 19,213 8,373 57,080 39,013
Net Increase/(Decrease) in Cash and Cash Equivalents (894) (10,840) 48,707 (18,067) (10,457)
-----------------------------------------------------------
End of Period $ 19,213 $ 8,373 $ 57,080 $ 39,013 $ 28,556
-----------------------------------------------------------
CONSOLIDATED ACTUAL ACTUAL ACTUAL FORECAST FORECAST
- -----------------------------------------------------------------------------------------------------------------------------------
24 September 2003 - 10:24 AM FYE 2002 MAR-03 APR-03 MAY-03 JUN-03 JUL-03
- -----------------------------------------------------------------------------------------------------------------------------------
CONSOLIDATED CASH FLOW
Operating Activities
Net Income/(Loss) $ (74,335) $ (6,257) $ (4,742) $ (1,489) $ (2,518)
Depreciation and Amortization 3,690 3,519 3,476 1,344 1,347
Non Cash Asset Impairment 55,398 - (551) - -
(Gains) losses on sale of securities and loans sold or held for sale 23,057
(Increase)/Decrease in Retained Interests (120) (119) (130) - -
Reserve for Uncollectible Receivables 1,608 3,307 296 - -
Trade Accounts Receivable 7,841 264 (1,526) (970) (1,681)
Escrow Advances Receivable (511) 467 322 (154) (155)
Extensions Receivable 1,314 (56) 115 1,000 1,000
Income Taxes Receivable - - - - -
Loan Servicing Assets 2,435 1,048 1,007 1,260 1,246
Other Receivables (3,711) (3,551) 354 983 983
Change in Inventory 4,525 1,532 7,954 (12) 311
Accounts Payable & Accrued Liabilities (1,095) (4,599) (2,780) (937) (3,293)
Insurance Reserves and Unearned Premiums - - - - -
Deferred Income Taxes - - - (316) (87)
Other Assets 1,254 13,243
Other Long-Term Obligations / Other Assets (2,348) - 711 (28) (28)
-----------------------------------------------------------
Cash Provided (used) by Operations 19,001 8,798 4,506 681 (2,875)
Loans Originated (32,452) (21,206) (15,760) (15,080) (15,692)
Principal receipts on loans 1,702 1,647 2,402
Sale of Loans 198,216 - - - -
-----------------------------------------------------------
Cash Provided/(Used) by Operating Activities $ 186,467 $ (10,761) $ (8,852) $(14,398) $(18,566)
-----------------------------------------------------------
Investing Activities
Acquisition of Properties & Facilities 636 4,775 3,247 3,500 (500)
Other
-----------------------------------------------------------
Cash Provided/(Used) by Investing Activities $ 636 $ 4,775 $ 3,247 $ 3,500 $ (500)
-----------------------------------------------------------
Financing Activities
Net Borrowings/(Repayments) on Short-Term Credit Facilities (159,075) 37,000 18,000 6,406 13,266
Net Borrowings/(Repayments) on DIP (37,000) (22,000) (15,000) 3,657 800
Payments on notes and bonds (4) (3) (150) - -
-----------------------------------------------------------
Cash Provided/(Used) by Financing Activities $(196,079) $ 14,997 $ 2,850 $ 10,063 $ 14,066
-----------------------------------------------------------
Cash and Cash Equivalents
Beginning of Period 28,556 19,580 28,591 25,835 25,000
Net Increase/(Decrease) in Cash and Cash Equivalents (8,976) 9,011 (2,755) (835) (5,000)
-----------------------------------------------------------
End of Period $ 19,580 $ 28,591 $ 25,835 $ 25,000 $ 20,000
-----------------------------------------------------------
CONSOLIDATED FORECAST FORECAST
- -----------------------------------------------------------------------------------------------------------
24 September 2003 - 10:24 AM FYE 2002 AUG-03 SEP-03 FYE 2003
- -----------------------------------------------------------------------------------------------------------
CONSOLIDATED CASH FLOW
Operating Activities
Net Income/(Loss) $ (3,150) $ (2,876) $(409,613)
Depreciation and Amortization 1,350 1,353 26,391
Non Cash Asset Impairment - - 250,661
(Gains) losses on sale of securities and loans sold or held for sale 71,740
(Increase)/Decrease in Retained Interests - - (956)
Reserve for Uncollectible Receivables - - 6,880
Trade Accounts Receivable 2,720 (1,624) 5,114
Escrow Advances Receivable (157) (158) 138
Extensions Receivable 1,000 1,000 11,393
Income Taxes Receivable - - 20,422
Loan Servicing Assets 1,233 1,148 8,371
Other Receivables 983 983 1,355
Change in Inventory 1,137 973 53,152
Accounts Payable & Accrued Liabilities (282) 1,339 1,315
Insurance Reserves and Unearned Premiums - - (16,208)
Deferred Income Taxes (75) (14) (493)
Other Assets (31,086)
Other Long-Term Obligations / Other Assets (28) (28) (2,245)
----------------------------------
Cash Provided (used) by Operations 4,731 2,095 (3,667)
Loans Originated (16,272) (14,881) (346,172)
Principal receipts on loans 16,733
Sale of Loans - - 198,216
----------------------------------
Cash Provided/(Used) by Operating Activities $(11,541) $(12,785) $(134,890)
----------------------------------
Investing Activities
Acquisition of Properties & Facilities (500) (500) 11,674
Other
----------------------------------
Cash Provided/(Used) by Investing Activities $ (500) $ (500) $ 11,674
----------------------------------
Financing Activities
Net Borrowings/(Repayments) on Short-Term Credit Facilities 13,726 13,103 89,501
Net Borrowings/(Repayments) on DIP (1,685) 183 33,956
Payments on notes and bonds - - (347)
----------------------------------
Cash Provided/(Used) by Financing Activities $ 12,041 $ 13,285 $ 123,111
----------------------------------
Cash and Cash Equivalents
Beginning of Period 20,000 20,000 20,107
Net Increase/(Decrease) in Cash and Cash Equivalents - - (107)
----------------------------------
End of Period $ 20,000 $ 20,000 $ 20,000
----------------------------------
Page 2 of 4
DRAFT
DRAFT
OAKWOOD HOMES
5-YEAR PLAN
CONSOLIDATED FORECAST FORECAST FORECAST FORECAST FORECAST
- ----------------------------------------------------------------------------------------------------------------------------------
24 September 2003 - 10:24 AM OCT-03 NOV-03 DEC-03 JAN-04 FEB-04
- ----------------------------------------------------------------------------------------------------------------------------------
INCOME STATEMENT
REVENUE
Net Sales
Retail $ 19,513 $ 19,513 $ 23,532 $ 16,499 $ 16,499
Wholesale 24,858 21,213 25,055 23,141 25,716
-------------------------------------------------------------
Net Sales 44,371 40,725 48,587 39,640 42,215
Financial Services Income
Consumer Finance 7,927 4,136 4,239 4,364 4,463
Insurance 370 367 371 358 355
-------------------------------------------------------------
Financial Services Income 8,298 4,503 4,610 4,722 4,817
Other Income 376 376 468 330 330
-------------------------------------------------------------
TOTAL REVENUES $ 53,045 $ 45,604 $ 53,665 $ 44,691 $ 47,362
-------------------------------------------------------------
COST AND EXPENSES
Cost of Sales 34,584 31,974 36,172 30,575 32,424
Gross Profit Percent 22.1% 21.5% 25.6% 22.9% 23.2%
General & Administrative Expenses 2,932 2,818 3,532 2,874 2,838
as a percent of sales 6.6% 6.9% 7.3% 7.2% 6.7%
Service Expenses (including warranty) 2,003 1,820 2,192 1,816 1,945
as a percent of sales 4.5% 4.5% 4.5% 4.6% 4.6%
Selling Expenses 5,552 5,481 5,780 5,134 5,184
as a percent of sales 12.5% 13.5% 11.9% 13.0% 12.3%
Consumer Finance Operating Expenses 2,830 2,799 4,681 2,762 2,743
Insurance Operating Expenses 38 38 38 38 38
Provision for Losses on Credit Sales 168 154 184 150 160
Interest Expenses 5,588 4,263 1,397 1,455 1,520
-------------------------------------------------------------
TOTAL COST AND EXPENSES $ 53,694 $ 49,348 $ 53,975 $ 44,803 $ 46,852
RESTRUCTURING COSTS & IMPAIRMENT COSTS - 9,700 - - -
Recapture of Servicing Liabilities
Impairment of REMIC Regular Interests
Impairment of Guarantee Liabilities
Professional Fees 1,650 3,525 1,650 - -
-------------------------------------------------------------
TOTAL RESTRUCTURING COSTS & IMPAIRMENT COSTS 1,650 13,225 1,650 - -
INCOME BEFORE INCOME TAXES (2,299) (16,968) (1,961) (112) 510
Provision for Income Taxes 40% - - - (45) 204
-------------------------------------------------------------
NET INCOME $ (2,299) $(16,968) $ (1,961) $ (67) $ 306
=============================================================
Housing and Corporate (1,057) (13,296) 212 58 642
OAC 2,378 2,260 417 2,462 2,538
Insurance 332 329 333 320 317
-------------------------------------------------------------
EBITDA $ 1,654 $(10,707) $ 962 $ 2,839 $ 3,497
=============================================================
CONSOLIDATED FORECAST FORECAST FORECAST FORECAST FORECAST
- ----------------------------------------------------------------------------------------------------------------------------------
24 September 2003 - 10:24 AM MAR-04 APR-04 MAY-04 JUN-04 JUL-04
- ----------------------------------------------------------------------------------------------------------------------------------
INCOME STATEMENT
REVENUE
Net Sales
Retail $ 20,583 $ 20,575 $ 20,575 $ 25,735 $ 20,383
Wholesale 30,559 24,286 27,664 35,044 25,823
-------------------------------------------------------------
Net Sales 51,141 44,861 48,238 60,780 46,206
Financial Services Income
Consumer Finance 4,568 4,827 3,894 3,668 3,831
Insurance 358 355 352 357 345
-------------------------------------------------------------
Financial Services Income 4,926 5,181 4,246 4,025 4,177
Other Income 410 410 410 511 406
-------------------------------------------------------------
TOTAL REVENUES $ 56,477 $ 50,452 $ 52,895 $ 65,316 $ 50,789
-------------------------------------------------------------
COST AND EXPENSES
Cost of Sales 38,369 33,819 36,243 44,640 34,745
Gross Profit Percent 25.0% 24.6% 24.9% 26.6% 24.8%
General & Administrative Expenses 3,298 2,878 2,892 3,316 2,883
as a percent of sales 6.4% 6.4% 6.0% 5.5% 6.2%
Service Expenses (including warranty) 2,350 2,034 2,203 2,777 2,099
as a percent of sales 4.6% 4.5% 4.6% 4.6% 4.5%
Selling Expenses 5,633 5,508 5,574 6,166 5,520
as a percent of sales 11.0% 12.3% 11.6% 10.1% 11.9%
Consumer Finance Operating Expenses 4,626 2,709 2,692 4,577 2,660
Insurance Operating Expenses 38 38 38 38 38
Provision for Losses on Credit Sales 193 170 182 230 175
Interest Expenses 1,571 1,465 1,368 1,355 1,355
-------------------------------------------------------------
TOTAL COST AND EXPENSES $ 56,079 $ 48,620 $ 51,191 $ 63,100 $ 49,475
RESTRUCTURING COSTS & IMPAIRMENT COSTS - - - - -
Recapture of Servicing Liabilities
Impairment of REMIC Regular Interests
Impairment of Guarantee Liabilities
Professional Fees - - - - -
-------------------------------------------------------------
TOTAL RESTRUCTURING COSTS & IMPAIRMENT COSTS - - - - -
INCOME BEFORE INCOME TAXES 399 1,832 1,703 2,216 1,314
Provision for Income Taxes 40% 159 733 681 886 525
-------------------------------------------------------------
NET INCOME $ 239 $ 1,099 $ 1,022 $ 1,330 $ 788
=============================================================
Housing and Corporate 2,391 1,524 2,231 4,887 1,862
OAC 696 2,867 2,013 (177) 1,929
Insurance 320 317 314 319 307
-------------------------------------------------------------
EBITDA $ 3,407 $ 4,707 $ 4,558 $ 5,029 $ 4,098
=============================================================
CONSOLIDATED FORECAST FORECAST
- ----------------------------------------------------------------------------------------------------------
24 September 2003 - 10:24 AM AUG-04 SEP-04 FYE 2004
- ----------------------------------------------------------------------------------------------------------
INCOME STATEMENT
REVENUE
Net Sales
Retail $ 20,383 $ 25,519 $ 249,307
Wholesale 29,505 35,044 327,908
-----------------------------------
Net Sales 49,887 60,564 577,215
Financial Services Income
Consumer Finance 3,947 4,071 53,935
Insurance 343 348 4,278
-----------------------------------
Financial Services Income 4,290 4,419 58,214
Other Income 406 507 4,941
-----------------------------------
TOTAL REVENUES $ 54,583 $ 65,490 $ 640,369
-----------------------------------
COST AND EXPENSES
Cost of Sales 37,386 44,420 435,350
Gross Profit Percent 25.1% 26.7% 24.6%
General & Administrative Expenses 2,898 3,315 36,475
as a percent of sales 5.8% 5.5% 6.3%
Service Expenses (including warranty) 2,283 2,763 26,285
as a percent of sales 4.6% 4.6% 4.6%
Selling Expenses 5,592 6,145 67,269
as a percent of sales 11.2% 10.1% 11.7%
Consumer Finance Operating Expenses 2,644 4,530 40,253
Insurance Operating Expenses 38 38 456
Provision for Losses on Credit Sales 189 229 2,182
Interest Expenses 1,447 1,483 24,268
-----------------------------------
TOTAL COST AND EXPENSES $ 52,477 $ 62,924 $ 632,538
RESTRUCTURING COSTS & IMPAIRMENT COSTS - - 9,700
Recapture of Servicing Liabilities
Impairment of REMIC Regular Interests
Impairment of Guarantee Liabilities
Professional Fees - - 6,825
-----------------------------------
TOTAL RESTRUCTURING COSTS & IMPAIRMENT COSTS - - 16,525
INCOME BEFORE INCOME TAXES 2,107 2,566 (8,694)
Provision for Income Taxes 40% 843 1,026 5,014
-----------------------------------
NET INCOME $ 1,264 $ 1,540 $ (13,708)
===================================
Housing and Corporate 2,633 4,928 7,015
OAC 2,018 188 19,590
Insurance 305 310 3,822
-----------------------------------
EBITDA $ 4,956 $ 5,426 $ 30,427
===================================
Page 3 of 4
DRAFT
DRAFT
OAKWOOD HOMES
5-YEAR PLAN
CONSOLIDATED FORECAST FORECAST FORECAST FORECAST FORECAST
- ------------------------------------------------------------------------------------------------------------------------------------
24 September 2003 - 10:24 AM OCT-03 NOV-03 DEC-03 JAN-04 FEB-04
- ------------------------------------------------------------------------------------------------------------------------------------
CONSOLIDATED CASH FLOW
Operating Activities
Net Income/(Loss) $ (2,299) $ (16,968) $ (1,961) $ (67) $ 306
Depreciation and Amortization 1,134 1,138 701 705 706
Non Cash Asset Impairment - - - - -
(Gains) losses on sale of securities and loans sold or held for sale (16,250)
(Increase)/Decrease in Retained Interests - - 128 153 125
Reserve for Uncollectible Receivables (6,685) (50) (50) (50) (50)
Trade Accounts Receivable 226 1,581 (1,037) 617 881
Escrow Advances Receivable (160) (161) (163) (165) (166)
Extensions Receivable 340 337 334 330 327
Income Taxes Receivable - - - - -
Loan Servicing Assets 1,131 859 825 792 760
Other Receivables 6,585 85 84 84 83
Change in Inventory 7,910 (1,156) 1,166 1,781 (3,178)
Accounts Payable & Accrued Liabilities 413 (3,851) (675) (6,771) (2,633)
Insurance Reserves and Unearned Premiums - - - - -
Deferred Income Taxes 100 (186) (243) (189) 60
Other Assets
Other Long-Term Obligations / Other Assets (28) (28) (28) (28) (28)
-------------------------------------------------------------
Cash Provided (used) by Operations (7,584) (18,400) (918) (2,809) (2,807)
Loans Originated (13,977) (12,828) (15,305) (12,487) (13,298)
Principal receipts on loans
Sale of Loans 130,000 - - - -
-------------------------------------------------------------
Cash Provided/(Used) by Operating Activities $ 108,440 $ (31,229) $(16,223) $(15,296) $(16,105)
-------------------------------------------------------------
Investing Activities
Acquisition of Properties & Facilities (667) (667) (667) (667) (667)
Other
-------------------------------------------------------------
Cash Provided/(Used) by Investing Activities $ (667) $ (667) $ (667) $ (667) $ (667)
-------------------------------------------------------------
Financing Activities
Net Borrowings/(Repayments) on Short-Term Credit Facilities (90,287) 11,055 12,138 11,179 10,962
Net Borrowings/(Repayments) on DIP (17,486) 20,841 4,751 4,783 5,809
Payments on notes and bonds - - - - -
-------------------------------------------------------------
Cash Provided/(Used) by Financing Activities $(107,773) $ 31,895 $ 16,889 $ 15,962 $ 16,771
-------------------------------------------------------------
Cash and Cash Equivalents
Beginning of Period 20,000 20,000 20,000 20,000 20,000
Net Increase/(Decrease) in Cash and Cash Equivalents - - - - -
-------------------------------------------------------------
End of Period $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 20,000
-------------------------------------------------------------
CONSOLIDATED FORECAST FORECAST FORECAST FORECAST FORECAST
- ----------------------------------------------------------------------------------------------------------------------------------
24 September 2003 - 10:24 AM MAR-04 APR-04 MAY-04 JUN-04 JUL-04
- ----------------------------------------------------------------------------------------------------------------------------------
CONSOLIDATED CASH FLOW
Operating Activities
Net Income/(Loss) $ 239 $ 1,099 $ 1,022 $ 1,330 $ 788
Depreciation and Amortization 708 710 712 713 715
Non Cash Asset Impairment - - - - -
(Gains) losses on sale of securities and loans sold or held for sale
(Increase)/Decrease in Retained Interests 133 (10,092) (1,140) 152 191
Reserve for Uncollectible Receivables (50) (50) (50) (50) (50)
Trade Accounts Receivable (2,875) (268) 714 (3,914) 500
Escrow Advances Receivable (168) (170) (171) (173) 175
Extensions Receivable 324 320 317 314 311
Income Taxes Receivable - - - - -
Loan Servicing Assets 730 (1,863) 775 744 714
Other Receivables 83 82 82 82 81
Change in Inventory 5,960 (3,179) (9,908) 10,521 (3,465)
Accounts Payable & Accrued Liabilities 1,962 1,269 (745) 5,727 (1,906)
Insurance Reserves and Unearned Premiums - - - - -
Deferred Income Taxes 102 209 241 386 54
Other Assets
Other Long-Term Obligations / Other Assets (28) (28) (28) (28) (29)
-------------------------------------------------------------
Cash Provided (used) by Operations 7,119 (11,961) (8,181) 15,802 (1,920)
Loans Originated (16,110) (14,131) (15,195) (19,146) (14,555)
Principal receipts on loans
Sale of Loans - 96,124 32,041 - -
-------------------------------------------------------------
Cash Provided/(Used) by Operating Activities $ (8,990) $ 70,032 $ 8,665 $ (3,343) $(16,475)
-------------------------------------------------------------
Investing Activities
Acquisition of Properties & Facilities (667) (667) (667) (667) (667)
Other
-------------------------------------------------------------
Cash Provided/(Used) by Investing Activities $ (667) $ (667) $ (667) $ (667) $ (667)
-------------------------------------------------------------
Financing Activities
Net Borrowings/(Repayments) on Short-Term Credit Facilities 12,688 (62,711) (12,609) 14,789 13,207
Net Borrowings/(Repayments) on DIP (3,030) (6,654) 4,610 (10,779) 3,935
Payments on notes and bonds - - - - -
-------------------------------------------------------------
Cash Provided/(Used) by Financing Activities $ 9,657 $(69,365) $ (7,999) $ 4,010 $ 17,142
-------------------------------------------------------------
Cash and Cash Equivalents
Beginning of Period 20,000 20,000 20,000 20,000 20,000
Net Increase/(Decrease) in Cash and Cash Equivalents - - - - -
-------------------------------------------------------------
End of Period $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 20,000
CONSOLIDATED FORECAST FORECAST
- ---------------------------------------------------------------------------------------------------------
24 September 2003 - 10:24 AM AUG-04 SEP-04 FYE 2004
- ---------------------------------------------------------------------------------------------------------
CONSOLIDATED CASH FLOW
Operating Activities
Net Income/(Loss) $ 1,264 $ 1,540 $ (13,708)
Depreciation and Amortization 717 719 9,378
Non Cash Asset Impairment - - -
(Gains) losses on sale of securities and loans sold or held for sale
(Increase)/Decrease in Retained Interests 146 157 (10,047)
Reserve for Uncollectible Receivables (50) (50) (7,235)
Trade Accounts Receivable 3,060 (3,912) (4,427)
Escrow Advances Receivable 173 171 (978)
Extensions Receivable 308 305 3,867
Income Taxes Receivable - - -
Loan Servicing Assets 686 658 6,811
Other Receivables 81 80 7,492
Change in Inventory (8,138) 13,440 11,755
Accounts Payable & Accrued Liabilities (5,632) 4,073 (8,770)
Insurance Reserves and Unearned Premiums - - -
Deferred Income Taxes 66 (9) 590
Other Assets
Other Long-Term Obligations / Other Assets (29) (29) (341)
-----------------------------------
Cash Provided (used) by Operations (7,350) 17,145 (5,613)
Loans Originated (15,714) (19,078) (181,823)
Principal receipts on loans -
Sale of Loans - - 258,165
-----------------------------------
Cash Provided/(Used) by Operating Activities $(23,064) $ (1,933) $ 70,730
-----------------------------------
Investing Activities
Acquisition of Properties & Facilities (667) (667) (8,000)
Other
-----------------------------------
Cash Provided/(Used) by Investing Activities $ (667) $ (667) $ (8,000)
-----------------------------------
Financing Activities
Net Borrowings/(Repayments) on Short-Term Credit Facilities 12,766 14,874 (51,949)
Net Borrowings/(Repayments) on DIP 10,965 (12,274) 5,470
Payments on notes and bonds - - -
-----------------------------------
Cash Provided/(Used) by Financing Activities $ 23,731 $ 2,599 $ (46,480)
-----------------------------------
Cash and Cash Equivalents
Beginning of Period 20,000 20,000 20,000
Net Increase/(Decrease) in Cash and Cash Equivalents - - -
-----------------------------------
End of Period $ 20,000 $ 20,000 $ 20,000
Page 4 of 4
DRAFT