EX-99.1 2 ex9907292009.htm EX-99 ex9907292009.htm
 
 
 
GRAPHIC
 

COACHMEN INDUSTRIES, INC.
2831 Dexter Drive • P.O. Box 3300 • Elkhart, Indiana 46514 • 574/266-2500 • Fax 574/266-2559

NEWS RELEASE

For immediate release July 29, 2009

COACHMEN INDUSTRIES, INC. ANNOUNCES IMPROVED SECOND QUARTER, PROFITABLE JUNE
Elkhart, IN - Coachmen Industries, Inc. (OTC:COHM.PK) today announced its financial results for the second quarter ended June 30, 2009.

“Overall, sales are less than one half what they were in 2008 as we continue to remain mired in the worst housing market in the last hundred years,” commented Richard M. Lavers, President and Chief Executive Officer.  “However, our business is beginning to show significant improvement.  We have shaved our losses to one third of what they were in the first quarter.  We have experienced 3 months of modest but sequential revenue improvement, and both segments of our business posted modest profits in June.  This is directly attributable to success in obtaining major project business, increased bus sales, and the steps taken to reduce our operating costs.  We posted a positive gross profit and slashed GS & A. We were essentially cash-neutral from operating activities in the second quarter.  Tail liabilities from the sale of the RV business last December continue to decline and appear to be on track with projections.  We are now heading in the right direction despite general economic conditions.”

Net sales from continuing operations for the second quarter were $17.7 million, compared to $11.3 million for the first quarter of 2009. Gross profits for the quarter were $853,000 or 4.8% of revenue, as compared to a loss of ($2.1) million or (18.4%) of revenue in the first quarter of 2009. The Company reported a net loss from continuing operations of ($2.8) million, or ($0.18) per share, versus a net loss from continuing operations of ($6.1) million, or ($0.39) per share in the first quarter of 2009. Net loss, including discontinued operations, was ($3.2) million, or ($0.21) per share in the second quarter of 2009, versus a net loss of ($6.4) million, or ($0.41) per share in the first quarter of 2009.

Housing Group

“The Housing Group's core business of single family homes continues to suffer from abysmal conditions in the nationwide housing market.  However, we have been successful at receiving contracts for several major projects, which are reflected in our improved quarterly results,” commented Housing Group President Rick Bedell. “Several additional major project opportunities are close to closing which could temper any continued slump in the single family housing market. Bonding continues to be an issue, not just for us, but for the entire industry.”


 
 
 
Coachmen Industries, Inc. Announces Improved Second Quarter Results
Page 2
July 29, 2009                                                                                                                                 

Specialty Vehicle Group

“Sales of the Spirit of Mobility buses produced for our joint venture ARBOC Mobility are relatively modest, but each month we are continuing to increase the number of orders and shipments.  The bankruptcy of General Motors has had a temporary impact on availability of vehicle chassis and consequently our ability to build and ship units, but that situation has resolved itself.  We anticipate regular availability of chassis beginning in August.  Accordingly, this segment of our business should be a profit contributor rather than a cash drain for the remainder of this year and beyond.  This is particularly true given the increased government funding available through federal stimulus packages,” stated Lavers. “We will provide more details in an update to our shareholders that we will post later this week.”



Coachmen Industries, Inc. is one of America's premier systems-built construction companies under the ALL AMERICAN BUILDING SYSTEMS®, ALL AMERICAN HOMES® and MOD-U-KRAF® brands, as well as a manufacturer of specialty vehicles. Coachmen Industries, Inc. is a publicly held company with stock quoted and traded on the over-the-counter markets under the ticker COHM.PK.

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, liquidity, the ability of the Company to bond major government contracts, availability of working capital, availability of credit to the Company and its customers, the depth and duration of the recession, the ability to produce buses to meet demand, the potential fluctuations in the Company's operating results, price volatility of raw materials used in production, the availability and cost of real estate for residential housing, the supply of existing homes within the company's markets, government regulations, dependence on significant customers within certain product types, consolidation of distribution channels, consumer confidence, uncertainties of matters in litigation, and other risks identified in the Company's SEC filings.




For financial information:
Colleen A. Zuhl
Chief Financial Officer
574-266-2500

For investor  information:
James T. Holden
Corporate Secretary and Assistant General Counsel
574-266-2500

 
 
 
 
Coachmen Industries, Inc. Announces Improved Second Quarter Results
Page 3
July 29, 2009                                                                                                                                 

Coachmen Industries, Inc. and Subsidiaries
Consolidated Statements of Operations
(in thousands, except per share amounts)
(Unaudited)

   
Three Months Ended June 30,
    
Six Months Ended June 30,
  
   
2009
    
2008
    
2009
    
2008
  
Net sales
   $ 17,734     $ 38,332     $ 29,015     $ 69,172  
                                 
Gross profit - $
     853       6,967       (1,223 )     12,491  
Gross profit - %
     4.8 %     18.2 %     (4.2 )%     18.1 %
                                 
GS&A - $
     3,531       4,016       7,757       8,292  
GS&A - %
     19.9 %     10.5 %     26.7 %     12.0 %
                                 
Gain on sale of assets, net - $
     (15 )     (31 )     (14 )     (56 )
Gain on sale of assets, net - %
     (0.1 )%     (0.1 )%     (0.0 )%     (0.1 )%
                                 
Operating income (loss) - $
     (2,663 )     2,982       (8,966 )     4,255  
Operating income (loss) - %
     (15.0 )%     7.8 %     (30.9 )%     6.2 %
                                 
Other (income) expense
     223       38       40       58  
                                 
Pre-tax income (loss) from continuing operations - $
     (2,886 )     2,944       (9,006 )     4,197  
Pre-tax income (loss) from continuing operations - %
     (16.3 )%     7.7 %     (31.0 )%     6.1 %
                                 
Tax expense (credit) 
     (53 )     -       (53 )     -  
                                 
Net income (loss) from continuing operations
     (2,833 )     2,944       (8,953 )     4,197  
                                 
Discontinued operations:
                                
   Loss from discontinued RV operations (net of taxes)
     (440 )     (5,915 )     (729 )     (6,024 )
   Income on sale of discontinued RV assets (net of taxes)
     25       8       25       191  
   Income from legal settlement (net of taxes of $188)
     -       -       14,722       -  
Income (loss) from discontinued operations
     (415 )     (5,907 )     14,018       (5,833 )
                                 
Net income (loss)
     (3,248 )     (2,963 )     5,065       (1,636 )
                                 
Income (loss) per share - Basic & Diluted
                                
   Continuing operations
     (0.18 )     0.19       (0.56 )     0.27  
   Discontinued operations
     (0.03 )     (0.37 )     0.88       (0.37 )
Net income (loss) per share - Basic & Diluted
   $ (0.21 )   $ (0.18 )   $ 0.32     $ (0.10 )
                                 
Weighted average shares outstanding: 
                                
   Basic
     15,819       15,774       15,883       15,762  
   Diluted
     15,819       15,774       15,883       15,762  

 
 
 
Coachmen Industries, Inc. Announces Improved Second Quarter Results
Page 4
July 29, 2009                                                                                                                                 

 Coachmen Industries, Inc. and Subsidiaries
Consolidated Balance Sheets
(in thousands)

   
June 30,
    
December 31,
  
   
2009
    
2008
  
Assets
  
(Unaudited)
        
CURRENT ASSETS
            
Cash and cash equivalents
   $ 3,684     $ 15,745  
Accounts receivable
     8,503       1,837  
Inventories
     19,503       19,910  
Prepaid expenses and other current assets
     15,796       15,128  
Total current assets
     47,486       52,620  
                 
Property, plant and equipment, net
     29,513       30,922  
Other
     20,709       23,862  
TOTAL ASSETS
   $ 97,708     $ 107,404  
                 
Liabilities and Shareholders' Equity
                
CURRENT LIABILITIES
                
Short-term borrowings & current portion of LT debt
   $ 977     $ 819  
Accounts payable, trade
     9,642       11,414  
Accrued expenses and other liabilities
     20,926       32,597  
Floorplan notes payable
     -       3,096  
Total current liabilities
     31,545       47,926  
                 
Long-term debt
     3,822       2,190  
Other long-term liabilities
     4,325       4,599  
Total liabilities
     39,692       54,715  
                 
Total shareholders' equity
     58,016       52,689  
                 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
   $ 97,708     $ 107,404  


Condensed Consolidated Statements of Cash Flows
(Unaudited)  (in thousands)

   
Six Months Ended June 30,
  
   
2009
    
2008
  
             
Net income (loss)
   $ 5,065     $ (1,636 )
Depreciation
     1,325       2,688  
Changes in current assets and liabilities
     (22,740 )      (19,654 ) 
   Net cash used in operating activities
     (16,350 )      (18,602 ) 
                 
   Net cash provided by (used in) investing activities
     4,180       (2,270 ) 
                 
Net borrowings
     146       21,525  
Issuance (purchase) of stock
     (37 )      77  
   Net cash provided by financing activities
     109       21,602  
                 
Increase (decrease) in cash and cash equivalents
     (12,061 )      730  
                 
Beginning of period cash and cash equivalents
     15,745       1,549  
                 
End of period cash and cash equivalents
   $ 3,684     $ 2,279  
 
 
 
Coachmen Industries, Inc. Announces Improved Second Quarter Results
Page 5 
July 29, 2009                                                                                                                                 



Coachmen Industries, Inc. and Subsidiaries
Segment Data – Continuing Operations
(in thousands)
 (Unaudited)

 
Three Months Ended June 30,
  
Six Months Ended June 30,
  
 
2009
  
2008
  
2009
  
2008
  
Net sales
                        
Specialty Vehicles
   $ 2,867     $ 406     $ 3,939     $ 406  
Housing
     14,867       37,926       25,076       68,766  
Other
     -       -       -       -  
                                 
Consolidated total
   $ 17,734     $ 38,332     $ 29,015     $ 69,172  
                                 
Gross profit
                                
Specialty Vehicles
   $ (162 )   $ (160 )   $ (595 )   $ (306 )
Housing
     1,021       7,127       (613 )     12,798  
Other
     (6 )     -       (15 )     (1 )
                                 
Consolidated total
   $ 853     $ 6,967     $ (1,223 )   $ 12,491  
                                 
Operating expenses
                                
Specialty Vehicles
   $ 288     $ -     $ 573     $ -  
Housing
     3,198       4,027       6,044       8,317  
Other
     30       (42 )     1,126       (81 )
                                 
Consolidated total
   $ 3,516     $ 3,985     $ 7,743     $ 8,236  
                                 
Operating income (loss)
                                
Specialty Vehicles
   $ (450 )   $ (160 )   $ (1,168 )   $ (306 )
Housing
     (2,177 )     3,100       (6,656 )     4,481  
Other
     (36 )     42       (1,142 )     80  
                                 
Consolidated total
   $ (2,663 )   $ 2,982     $ (8,966 )   $ 4,255  
                                 
Pre-tax income (loss) from continuing operations
                                
Specialty Vehicles
   $ (435 )   $ (160 )   $ (1,169 )   $ (306 )
Housing
     (2,212 )     3,051       (6,716 )     4,409  
Other
     (239 )     53       (1,121 )     94  
                                 
Consolidated total
   $ (2,886 )   $ 2,944     $ (9,006 )   $ 4,197  
 
 
-END-