Concentration of Risk

12 Months Ended

Jul. 31, 2012

Concentration of Risk

6.  CONCENTRATION OF RISK

Two dealers accounted for 28%, 26% and 17% of the Company’s bus sales for fiscal 2012, 2011 and 2010, respectively. The loss of either of these dealers could have a significant effect on the Company’s bus business. One dealer, FreedomRoads, LLC, accounted for 14%, 14% and 18% of the Company’s consolidated recreation vehicle net sales for fiscal 2012, 2011 and 2010, respectively, and 12%, 12% and 15% of its consolidated net sales for fiscal 2012, 2011 and 2010, respectively. This dealer also accounted for 20% of the Company’s consolidated trade accounts receivable at July 31, 2012 and 14% at July 31, 2011. The loss of this dealer could have a significant effect on the Company’s business.