EX-99.1 2 ex9911122010.htm EX-99.1 ex9911122010.htm

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

NEWS RELEASE

For immediate release November 12, 2010

ALL AMERICAN GROUP, INC. POSTS IMPROVED YEAR TO DATE REVENUE AND OPERATING RESULTS

Elkhart, IN - All American Group, Inc. (OTC:COHM.PK), today announced its results for the year-to-date period and third quarter of 2010, ending September 30, 2010.

“We have reduced the net cash used in operations by 48% year over year, and carefully husbanded the funds we have in various escrow accounts,” stated Rick Lavers, President and CEO. Net cash used in operations during the nine month period ended September 30 totaled $7.5 million for 2010 against $14.3 million for 2009.  For the three month period ended September 30, net cash used in operations declined to $1.3 million compared to $2.9 million used in the first quarter and $3.3 million used in the second quarter of 2010.

“The Company’s sales have increased year to date from 2009 by over 28%, and the Specialty Vehicle segment has generated an operating profit of $0.7 million during that same period” Lavers continued. “While in the third quarter all of the increased revenues came on the Specialty Vehicle side of our business, we expect that to change in the fourth quarter as several major housing projects come on line. Further, the new ARBOC Spirit bus aimed at the commercial fleet business enjoyed a warm reception at this year’s BusCon show, although we don’t expect any impact from that product line until 2011.”

Net sales from continuing operations for the nine-month period ended September 30, 2010 were $57.8 million compared to $45.1 million reported for the same period in 2009, an increase of over 28%.  As a result, the Company’s operating loss for the nine months ended September 30, 2010 was reduced by nearly 30% or $4.0 million to a loss of $(9.8) million compared to a loss of $(13.8) million for the comparable nine-month period in 2009.  Net sales from continuing operations for the third quarter of 2010 were $16.7 million compared to $16.1 million reported for the same period in 2009, an increase of 3.9%.  Net sales of the Company’s Specialty Vehicle Group totaled $6.5 million for the third quarter of 2010 compared to $3.9 million for the same period in 2009, an increase of 63.9% while net sales for the Company’s Housing Group totaled $10.2 million for the third quarter of 2010, compared to $12.1 million reported for the same period in 2009, a decrease of 15.7%.

For the third quarter of 2010, non-cash, non-operating interest of $3.5 million related to the HIG Loan Agreement and amendments is included in the total interest expense of $4.1 million. The non-cash, non-operating expenses result from fair market valuation adjustments to the derivative instruments related to the equity provisions of the HIG debt agreement.  These charges do not impact the operating results or the cash flow of the Company and therefore, the appropriate financial metrics to focus on as proxies for Company performance are revenues, operating profits and cash flow.
 
As announced on November 8, 2010 the Company has agreed to be acquired by affiliates of All American Group Holdings, LLC, which is an affiliate of H.I.G. All American, LLC, in a merger that would result in the Company’s shareholders (other than H.I.G.) receiving $0.20 per share, plus an interest in a liquidating trust that will have a contingent right to receive proceeds from the sale of AAG’s specialty vehicle business.


All American Group, Inc.(formerly 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. All American Group, 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 contracts, availability of working capital, availability of credit to the Company and its customers, the ability of the Company  to reach agreement with HIG regarding revised covenants at reasonable terms and the ability to meet the revised covenants in future periods, the availability to the Company of chassis utilized for bus production and the availability of chassis financing to procure the chassis,  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 investor or financial information:
Martin Miranda
Corporate Secretary & Treasurer
574-266-2500

 
 

 
 
 


 
All American Group, Inc. Announces Third Quarter 2010 Results
November 12, 2010                                                                                                                                


All American Group, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
(Unaudited)

   
Three Months Ended September 30,
  
Nine  Months Ended September 30,
  
   
2010
  
2009
    
2010
  
2009
  
                             
Net sales
  
$ 
16,696
  
$ 
16,074
    
$
57,814
  
$
45,088
  
                             
Gross profit (loss) - $
    
(589
) 
  
(944
)
    
1,335
    
(2,168
)
                             
Operating  loss from continuing operations
    
(4,537
)
  
(4,875
)
    
(9,762
)
  
(13,841
)
                             
Pre-tax (loss) from continuing operations
    
(8,371
)
  
(5,159
)
    
(23,153
)
  
(14,166
)
                             
Net (loss) from continuing operations
    
(8,157
)
  
(5,193
)
    
(22,939
)
  
(14,146
)
                             
Income (loss) from discontinued operations
    
(294
)
  
1,298
      
(814
)
  
15,317
  
                             
Net income (loss)
    
(8,451
)
  
(3,895
)
    
(23,753
)
  
1,170
  
                             
Net (loss) per share - Basic & Diluted
  
 
$
(0.41
)
 
$
(0.24
)
  
 
$
(1.16
)
 
$
0.07
  
                             
Weighted average shares outstanding - Basic
    
20,564
    
16,024
      
20,559
    
15,946
  
Weighted average shares outstanding - Diluted
    
20,564
    
16,024
      
20,559
    
15,965
  


Condensed Segment Data – Continuing Operations
(Unaudited)  (in thousands)

   
Three Months Ended September 30,
  
Nine  Months Ended September 30,
  
   
2010
  
2009
  
2010
  
2009
  
Net sales
                          
Specialty Vehicles
  
$
6,471
  
$
3,948
  
$
19,147
  
$
7,887
  
Housing
    
10,225
    
12,126
    
38,667
    
37,201
  
                           
Consolidated total
  
$
16,696
  
$
16,074
  
$
57,814
  
$
45,088
  
                           
Gross profit (loss)
                          
Specialty Vehicles
  
$
391
  
$
265
  
$
1,881
  
$
(330
)
Housing
    
(980
)
  
(1,202
)
  
(546
)
  
(1,814
)
Other
          
(7
)
        
(24
)
                           
Consolidated total
  
$
(589
)
$
944
  
$
1,335
  
$
(2,168
)
                           
Operating profit (loss) - continuing operations
                          
Specialty Vehicles
  
$
(6
)
$
(22
)
$
691
  
$
(1,190
)
Housing
    
(4,086
)
  
(4,639
)
  
(9,691
)
  
(11,296
)
Other
    
(445
)
  
(214
)
  
(762
)
  
(1,355
)
                           
Consolidated total
  
$
(4,537
)
$
(4,875
)
$
(9,762
)
$
(13,841
)

 
 
 

 

 All American Group, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands)
     
September 30,
    
December 31,
  
     
2010
    
2009
  
Assets
    
(Unaudited)
        
CURRENT ASSETS
              
Cash and cash equivalents
  
$
2,485
  
$
6,352
  
Restricted Cash
    
8,052
    
10,191
  
Receivables
    
4,403
    
4,589
  
Inventories
    
17,096
    
21,566
  
Prepaid expenses and other current assets
    
8,796
    
10,923
  
Total current assets
    
40,832
    
53,621
  
               
Property, plant and equipment, net
    
27,333
    
28,787
  
Other
    
6,224
    
7,641
  
TOTAL ASSETS
  
$
74,389
  
$
90,049
  
               
Liabilities and Shareholders' Equity
              
CURRENT LIABILITIES
              
Short-term borrowings & current portion of LT debt
  
$
11,194
  
$
369
  
Accounts payable, trade
    
9,314
    
9,132
  
Fair value of derivative instruments
    
6,589
    
-
  
Accrued expenses and other liabilities
    
9,177
    
12,624
  
Total current liabilities
    
36,274
    
22,125
  
               
Long-term debt
    
2,248
    
2,828
  
Fair value of derivative instruments
    
-
    
13,030
  
Other long-term liabilities
    
2,433
    
3,709
  
Total liabilities
    
40,955
    
41,692
  
               
Total shareholders' equity
    
33,434
    
48,357
  
               
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
  
$
74,389
  
$
90,049
  

Condensed Consolidated Statements of Cash Flows
(Unaudited)  (in thousands)
 
 Nine Months Ended September 30,
   
2010
  
2009
  
               
Net income (loss)
  
$
(23,753
)
$
1,170
  
Depreciation , amortization and other non-cash charges
    
16,469
    
1,910
  
Changes in current assets and liabilities
    
(262
)
  
(17,337
)
  Net cash used in operating activities
    
(7,546
)
  
(14,257
)
               
  Net cash provided by investing activities
    
3,398
    
3,073
  
               
Net borrowings
    
274
    
296
  
Issuance (purchase) of stock
    
7
    
(28
)
  Net cash provided by financing activities
    
281
    
268
  
               
Increase (decrease) in cash and cash equivalents
    
(3,867
)
  
(10,916
)
               
Beginning of period cash and cash equivalents
    
6,352
    
15,745
  
               
End of period cash and cash equivalents
  
$
2,485
  
$
4,829