-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, CmF3lXb7Nx/A/EETpt7cuuSsUV0mKUEqIiocAtH+u1x5ojjfxhPfL/Hbvf5FoUp4 Y7g6keHvFy1bUq2UD0Q/xw== 0000914760-01-500159.txt : 20020410 0000914760-01-500159.hdr.sgml : 20020410 ACCESSION NUMBER: 0000914760-01-500159 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20011107 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20011108 FILER: COMPANY DATA: COMPANY CONFORMED NAME: COACHMEN INDUSTRIES INC CENTRAL INDEX KEY: 0000021212 STANDARD INDUSTRIAL CLASSIFICATION: MOTOR HOMES [3716] IRS NUMBER: 351101097 STATE OF INCORPORATION: IN FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-07160 FILM NUMBER: 1778592 BUSINESS ADDRESS: STREET 1: 2831 DEXTER DR CITY: ELKHART STATE: IN ZIP: 46514 BUSINESS PHONE: 2192620123 MAIL ADDRESS: STREET 1: 2831 DEXTER DR CITY: ELKHART STATE: IN ZIP: 46514 8-K 1 c013768k1101.txt SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 8-K Current Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of Earliest Event Reported): November 7, 2001 ----------------- COACHMEN INDUSTRIES, INC. - -------------------------------------------------------------------------------- (Exact Name of Registrant as Specified in its Charter) Indiana - -------------------------------------------------------------------------------- (State or Other Jurisdiction of Incorporation) 1-7160 35-1101097 - --------------------------------- ----------------------------------------- (Commission File Number) (I.R.S. Employer Identification Number) 2831 Dexter Drive, Elkhart, Indiana 46514 - -------------------------------------------------------------------------------- (Address of Principal Executive Offices) (Zip Code) (219) 262-0123 - -------------------------------------------------------------------------------- (Registrant's Telephone Number, Including Area Code) ITEM 5. OTHER EVENTS. On November 7, 2001 the Company filed a press release announcing third quarter earnings. A copy of the press release is attached as Exhibit 99.1 to this Form 8-K and incorporated herein by reference. ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS (a) EXHIBITS Exhibit Number Description ------ ----------- 99.1 November 7, 2001, Press Release announcing third quarter earnings. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. COACHMEN INDUSTRIES, INC. By: /s/ Richard M. Lavers -------------------------------- General Counsel & Secretary Dated: November 8, 2001 CHI99 3813909-1.001376.0010 EX-99.1 3 c01376pr1101.txt [LOGO] COACHMEN INDUSTRIES, INC. 2831 Dexter Drive - P.O. Box 3300 - Elkhart, Indiana 46515 - 219/262-0123 - Fax 219/262-8823 NEWS RELEASE For immediate release Wednesday, November 7, 2001 COACHMEN INDUSTRIES, INC. REPORTS THIRD QUARTER EARNINGS OF $0.06 PER SHARE o PROFITABILITY ACHIEVED DESPITE 21 PERCENT DECLINE IN SALES. o CASH FLOW FROM OPERATIONS TOTALS $42.6 MILLION THROUGH NINE MONTHS. o LIQUID FINANCIAL POSITION MAINTAINED WITH $44.5 MILLION IN CASH AND SECURITIES. ELKHART, INDIANA - Coachmen Industries, Inc. (NYSE: COA) today announced that it operated profitably in the third quarter despite the impact of the economic slowdown on the recreational vehicle industry that was aggravated by the attacks of Sept. 11. Net income for the third quarter ended Sept. 30, 2001 was $1.0 million compared with $2.3 million a year ago. For the quarter, diluted earnings per share were $0.06 compared to $0.15 per share in the same period in 2000. For the first nine months of 2001, the Company reported a loss of $2.5 million, or $0.16 per share, compared with net income of $10.0 million, or $0.64 per share for the same period in 2000. Sales for the third quarter ended Sept. 30, 2001 were $149.6 million compared with $188.5 million in the year-earlier quarter. Sales for the first nine months were $464.9 million compared with $584.4 million in the first nine months of 2000. "Although the earnings for the third quarter were less than we had expected prior to the tragic attacks of Sept. 11, we are encouraged by Coachmen's strong relative performance within the very challenging environment that our industry is experiencing. Clearly, our immediate prospects have been affected by the acceleration in the economic slowdown that is occurring; but we remain confident about the actions being taken to position the Company to resume its long-term path of growth," said Claire C. Skinner, Chairman, Chief Executive Officer and President of Coachmen Industries. - MORE - Dedicated to the Enrichment of Your Life Coachmen Industries, Inc. Reports Third Quarter Earnings Page 2 Nov, 7, 2001 - -------------------------------------------------------------------------------- THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, 2001 2000 2001 2000 ----------------------- ------------------------ SALES - ----- Recreational Vehicle $ 78,527 $ 140,066 $ 278,705 $ 451,325 Modular Housing/Building 71,050 48,407 186,155 133,059 ---------- --------- ---------- ----------- Total 149,577 188,473 464,860 584,384 PRE-TAX INCOME - -------------- Recreational Vehicle $ (1,551) $ 543 $ (9,060) $ 9,506 Modular Housing/Building 6,288 3,873 12,486 9,900 Other (3,128) (1,140) (7,362) (4,575) ----------- ---------- ----------- ----------- Total 1,609 3,276 (3,936) 14,831 RECREATIONAL VEHICLE SEGMENT - ---------------------------- The Company's Recreational Vehicle segment is being affected by the adverse impact that the economic slowdown is continuing to have on sales. Industry-wide deliveries to RV dealers are down 16.2% through the first nine months of 2001, following a decline of 6.6% for the year 2000. Retail sales have experienced a smaller decline of 10.6% through the first eight months, indicating that many dealers are delaying the replacement of sold units. Attendance has remained high at most retail shows demonstrating sound, underlying demand for recreational vehicles; but consumers are hesitant about purchases, similar to the pattern observed during previous economic downturns. Until consumers regain confidence about the course of the economy, there is unlikely to be much change in industry-wide sales. As part of its aggressive market expansion plans, product development at Coachmen is a continuous process. During the national industry trade show later this month, for example, Coachmen will introduce 27 new products, each designed to appeal to a specific target market. MODULAR HOUSING AND BUILDING SEGMENT - ------------------------------------ The year-to-year growth in the Company's modular segment is due to the incremental contribution to sales and income from acquired operations. Although housing starts have remained strong nationally, several of the regions where the Company's All American Homes subsidiary operates are experiencing declines in homebuilding due to difficult local economic circumstances. Margins have been improved by shifting the sales emphasis to larger, more complex homes; and the Company is actively seeking to develop new markets for these models. The Company is also focusing on a greater penetration of urban markets where there is more concentrated demand. - MORE - Coachmen Industries, Inc. Reports Third Quarter Earnings Page 3 Nov, 7, 2001 - -------------------------------------------------------------------------------- In addition to introducing new residential floor plans and exteriors, Coachmen is successfully broadening the uses for its commercial structures. Recent completions include modular structures for a veterinary clinic, banks, portable classrooms and many variations of multiple family housing. BALANCE SHEET/CASH FLOW - ----------------------- As of Sept. 30, 2001, the Company had cash and marketable securities of $44.5 million, shareholders' equity of $210.7 million and book value of $13.27 per share. Capital expenditures totaled $0.9 million in the third quarter and $4.0 million for the nine months. Joseph P. Tomczak, Executive Vice President and Chief Financial Officer, said, "We are continuing to contain expenses, manage our balance sheet more effectively and allocate our resources in a manner that will generate the highest efficiency during this difficult period. Our cash flow remains strong. Through the first nine months, we generated $7.9 million in EBITDA (earnings before interest, taxes and depreciation and amortization). Coachmen generated cash flow from operations of $15.0 million in the third quarter and $42.6 million in the first nine months of 2001, and we had cash and equivalents of $44.5 million at the end of the quarter. "During the quarter we initiated a process for restructuring our bank line of credit to obtain terms and conditions that would better meet our current and expected future borrowing needs over the duration of the agreement. Subsequent to the close of the quarter, we amended the agreement as a secured $30.0 million facility. Our liquid cash position and expectations of continued positive EBITDA were key factors in our ability to execute the new agreement. We believe Coachmen's strong financial position is a vital asset that will support our efforts to gain market share through ongoing internal gains as well as strategic acquisitions of complementary operations such as the KanBuild modular housing unit that we added in February 2001." OUTLOOK - ------- Skinner said, "Based on the recent events and current economic trends, we anticipate operating at or slightly below break-even in the fourth quarter, which is a seasonally slow period for our RV segment. We believe, however, that the results of the actions we have taken to realign our operations, reduce expenses and complete accretive acquisitions will lead to fourth quarter results significantly improved from the loss of $7.8 million, or $0.50 per share, in the fourth quarter of 2000. This would result in a loss for the full year in the range of $0.20-$0.25 per share. "Coachmen has the opportunity to use our well-established brand names, outstanding network of dealers and strong financial position to focus on increasing market share during this cyclical downswing in demand. Our record over almost four decades in the recreational vehicle industry shows that while our near-term financial performance has - MORE - Coachmen Industries, Inc. Reports Third Quarter Earnings Page 4 Nov, 7, 2001 - -------------------------------------------------------------------------------- been affected during periods of slower demand, we have historically emerged to reach new records in net sales and earnings. The successful expansion of our modular segment reinforces our optimism about Coachmen's longer term prospects. Fundamental demographic trends favor growth in those population segments especially attracted to our products, and we are intent on capitalizing on that potential." Founded in 1964, Coachmen Industries, Inc., is one of the nation's leading manufacturers of recreational vehicles with well-known names including Coachmen RV, Shasta, Viking and Georgie Boy. Coachmen Industries is also the largest modular home producer in the nation with its All American Homes and Mod-U-Kraf subsidiaries. Modular commercial and telecommunication 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. 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 functioning of the Company's information technology systems, 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 James O. Baxter Executive Vice President and Vice President Chief Financial Officer Communications 219-262-0123 219-262-0123 - MORE - Coachmen Industries, Inc. Reports Third Quarter Earnings Page 5 Nov, 7, 2001 - -------------------------------------------------------------------------------- COACHMEN INDUSTRIES, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED)
THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, 2001 2000 2001 2000 ----------- -------------- ---------- ------------- Outside Sales $ 149,577 $ 188,473 $ 464,860 $ 584,384 Gross Profit - $ 26,141 27,206 70,322 87,871 Gross Profit - % 17.5% 14.4% 15.1% 15.0% GS&A - $ 23,927 25,289 72,056 74,028 GS&A - % 16.0% 13.4% 15.5% 12.7% Operating Income/(Loss) - $ 2,214 1,917 (1,734) 13,843 Operating Income/(Loss) - % 1.5% 1.0% -0.4% 2.4% Other (Income)/Expense 605 (1,359) 2,202 (988) Pre-Tax Profit/(Loss) - $ 1,609 3,276 (3,936) 14,831 Pre-Tax Profit/(Loss) - % 1.1% 1.7% -0.8% 2.5% Tax Expense/(Benefit) 604 1,003 (1,425) 4,828 Net Income/(Loss) 1,005 2,273 (2,511) 10,003 Earning/(Loss) per share - Basic & Diluted 0.06 0.15 (0.16) 0.64 Weighted Average Shares Outstanding Basic 15,815 15,574 15,811 15,566 Diluted 15,875 15,577 15,867 15,573
- MORE - Coachmen Industries, Inc. Reports Third Quarter Earnings Page 6 Nov, 7, 2001 - -------------------------------------------------------------------------------- COACHMEN INDUSTRIES, INC. CONDENSED CONSOLIDATED BALANCE SHEET (IN THOUSANDS) (UNAUDITED) ASSETS 9/30/01 12/31/00 -------------- ---------------- Current Assets Cash $ 31,634 $ 2,614 Marketable securities 12,852 18,737 Accounts Receivable 35,765 40,079 Inventories 85,850 97,315 Prepaid expenses and other 6,984 6,821 Deferred income taxes 8,858 8,384 -------------- ---------------- Total Current Assets 181,943 173,950 PP&E, Net 82,304 84,163 Goodwill and Other Intangibles, Net 18,775 15,983 Other 27,653 22,350 -------------- ---------------- Total Assets $ 310,675 $ 296,446 ============== ================ LIABILITIES AND SHAREHOLDER'S EQUITY 9/30/01 12/31/00 -------------- ---------------- Current Liabilities Current portion of LT debt $ 927 $ 865 Accounts payable, trade 33,715 24,015 Accrued income taxes - 845 Other Accruals 42,403 31,988 -------------- ---------------- Total current liabilities 77,045 57,713 Long-Term Debt 11,379 11,795 Deferred Income Taxes 3,349 3,370 Other 8,204 8,619 -------------- ---------------- Total Liabilities 99,977 81,497 Shareholder's Equity 210,698 214,949 -------------- ---------------- Total Liabilities and Equity $ 310,675 $ 296,446 ============== ================ - END - -----END PRIVACY-ENHANCED MESSAGE-----