DREW INDUSTRIES INCORPORATED
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(Exact name of registrant as specified in its charter) |
Delaware | 0-13646 | 13-3250533 |
(State or other jurisdiction | (Commission File Number) | (I.R.S. Employer |
of incorporation) | Identification No.) |
200 Mamaroneck Avenue, White Plains, New York | 10601 |
(Address of principal executive offices) | (Zip Code) |
Registrant's telephone number, including area code: | (914) 428-9098 |
N/A |
(Former name or former address, if changed since last report) |
Item 2.02
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Results of Operations and Financial Condition
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Item 7.01
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Regulation FD Disclosure
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Item 9.01
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Financial Statements and Exhibits
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DREW INDUSTRIES INCORPORATED
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(Registrant) | |||
By:
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/s/ Joseph S. Giordano III | ||
Joseph S. Giordano III | |||
Chief Financial Officer and Treasurer |
Dated: November 1, 2012
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FOR IMMEDIATE RELEASE | |
Contact: Fred Zinn, President and CEO | |
Phone: (914) 428-9098 Fax: (914) 428-4581 | |
E Mail: Drew@drewindustries.com |
Nine Months Ended
September 30, |
Three Months Ended
September 30, |
Last Twelve
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(In thousands, except per share amounts)
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2012
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2011
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2012
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2011
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Months
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Net sales
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$ | 700,889 | $ | 521,570 | $ | 226,323 | $ | 166,689 | $ | 860,485 | ||||||||||
Cost of sales
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568,101 | 409,631 | 184,781 | 134,688 | 699,915 | |||||||||||||||
Gross profit
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132,788 | 111,939 | 41,542 | 32,001 | 160,570 | |||||||||||||||
Selling, general and administrative expenses
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81,499 | 69,283 | 26,594 | 22,798 | 103,389 | |||||||||||||||
Operating profit
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51,289 | 42,656 | 14,948 | 9,203 | 57,181 | |||||||||||||||
Interest expense, net
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246 | 197 | 116 | 78 | 341 | |||||||||||||||
Income before income taxes
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51,043 | 42,459 | 14,832 | 9,125 | 56,840 | |||||||||||||||
Provision for income taxes
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18,448 | 16,488 | 5,061 | 3,506 | 20,157 | |||||||||||||||
Net income
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$ | 32,595 | $ | 25,971 | $ | 9,771 | $ | 5,619 | $ | 36,683 | ||||||||||
Net income per common share:
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Basic
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$ | 1.45 | $ | 1.17 | $ | 0.43 | $ | 0.25 | $ | 1.63 | ||||||||||
Diluted
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$ | 1.43 | $ | 1.16 | $ | 0.43 | $ | 0.25 | $ | 1.62 | ||||||||||
Weighted average common shares outstanding:
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Basic
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22,507 | 22,254 | 22,563 | 22,273 | 22,457 | |||||||||||||||
Diluted
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22,724 | 22,427 | 22,800 | 22,447 | 22,667 | |||||||||||||||
Depreciation and amortization
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$ | 19,211 | $ | 15,069 | $ | 6,850 | $ | 5,053 | $ | 24,664 | ||||||||||
Capital expenditures
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$ | 22,010 | $ | 17,721 | $ | 8,856 | $ | 7,178 | $ | 28,606 |
Nine Months Ended
September 30, |
Three Months Ended
September 30, |
Last Twelve
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(In thousands)
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2012
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2011
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2012
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2011
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Months
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Net sales:
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RV Segment:
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RV OEMs:
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Travel trailers and fifth-wheels
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$ | 514,653 | $ | 387,746 | $ | 162,719 | $ | 117,946 | $ | 626,759 | ||||||||||
Motorhomes
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22,568 | 12,244 | 8,376 | 3,304 | 26,152 | |||||||||||||||
RV aftermarket
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14,714 | 12,169 | 5,355 | 4,108 | 17,205 | |||||||||||||||
Adjacent industries
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57,008 | 27,497 | 18,507 | 10,870 | 69,814 | |||||||||||||||
Total RV Segment net sales
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608,943 | 439,656 | 194,957 | 136,228 | 739,930 | |||||||||||||||
MH Segment:
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Manufactured housing OEMs
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61,678 | 56,112 | 21,188 | 21,487 | 82,653 | |||||||||||||||
Manufactured housing aftermarket
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12,730 | 12,693 | 3,990 | 4,254 | 16,221 | |||||||||||||||
Adjacent industries
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17,538 | 13,109 | 6,188 | 4,720 | 21,681 | |||||||||||||||
Total MH Segment net sales
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91,946 | 81,914 | 31,366 | 30,461 | 120,555 | |||||||||||||||
Total net sales
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$ | 700,889 | $ | 521,570 | $ | 226,323 | $ | 166,689 | $ | 860,485 | ||||||||||
Operating Profit:
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RV Segment
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$ | 47,209 | $ | 40,370 | $ | 12,945 | $ | 7,745 | $ | 52,554 | ||||||||||
MH Segment
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10,942 | 8,963 | 3,781 | 3,786 | 13,959 | |||||||||||||||
Total segment operating profit
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58,151 | 49,333 | 16,726 | 11,531 | 66,513 | |||||||||||||||
Corporate
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(6,513 | ) | (5,846 | ) | (1,989 | ) | (1,803 | ) | (8,150 | ) | ||||||||||
Accretion related to contingent consideration
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(1,350 | ) | (1,394 | ) | (430 | ) | (445 | ) | (1,842 | ) | ||||||||||
Other non-segment items
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1,001 | 563 | 641 | (80 | ) | 660 | ||||||||||||||
Total operating profit
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$ | 51,289 | $ | 42,656 | $ | 14,948 | $ | 9,203 | $ | 57,181 |
September 30,
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December 31,
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(In thousands)
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2012
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2011
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2011
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Current Assets
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Cash and cash equivalents
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$ | 32,584 | $ | 1,472 | $ | 6,584 | ||||||
Accounts receivable, net
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50,421 | 41,965 | 22,620 | |||||||||
Inventories
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98,393 | 97,765 | 92,052 | |||||||||
Deferred taxes
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10,125 | 12,142 | 10,125 | |||||||||
Prepaid expenses and other current assets
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11,165 | 6,960 | 6,187 | |||||||||
Total current assets
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202,688 | 160,304 | 137,568 | |||||||||
Fixed assets, net
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101,931 | 90,884 | 95,050 | |||||||||
Goodwill
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21,177 | 20,137 | 20,499 | |||||||||
Other intangible assets, net
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71,755 | 80,746 | 79,059 | |||||||||
Deferred taxes
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14,496 | 15,744 | 14,496 | |||||||||
Other assets
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6,422 | 3,544 | 4,411 | |||||||||
Total assets
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$ | 418,469 | $ | 371,359 | $ | 351,083 | ||||||
Current liabilities
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Accounts payable, trade
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$ | 33,392 | $ | 30,106 | $ | 15,742 | ||||||
Accrued expenses and other current liabilities
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47,074 | 39,413 | 36,169 | |||||||||
Total current liabilities
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80,466 | 69,519 | 51,911 | |||||||||
Long-term indebtedness
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- | 8,075 | ||||||||||
Other long-term liabilities
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20,369 | 20,005 | 21,876 | |||||||||
Total liabilities
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100,835 | 97,599 | 73,787 | |||||||||
Total stockholders' equity
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317,634 | 273,760 | 277,296 | |||||||||
Total liabilities and stockholders' equity
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$ | 418,469 | $ | 371,359 | $ | 351,083 |
Nine Months Ended
September 30, |
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(In thousands)
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2012
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2011
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Cash flows from operating activities:
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Net income
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$ | 32,595 | $ | 25,971 | ||||
Adjustments to reconcile net income to cash flows provided by operating activities:
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Depreciation and amortization
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19,211 | 15,069 | ||||||
Stock-based compensation expense
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4,703 | 3,352 | ||||||
Deferred taxes
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- | 26 | ||||||
Other non-cash items
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889 | 751 | ||||||
Changes in assets and liabilities, net of acquisitions of businesses:
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Accounts receivable, net
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(27,801 | ) | (24,440 | ) | ||||
Inventories
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(5,753 | ) | (20,581 | ) | ||||
Prepaid expenses and other assets
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(6,993 | ) | (1,996 | ) | ||||
Accounts payable
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17,650 | 18,755 | ||||||
Accrued expenses and other liabilities
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10,086 | (628 | ) | |||||
Net cash flows provided by operating activities
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44,587 | 16,279 | ||||||
Cash flows from investing activities:
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Capital expenditures
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(22,010 | ) | (17,721 | ) | ||||
Acquisitions of businesses
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(1,473 | ) | (49,340 | ) | ||||
Proceeds from maturity of short-term investments
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- | 5,000 | ||||||
Proceeds from sales of fixed assets
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5,397 | 1,248 | ||||||
Other investing activities
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(88 | ) | (438 | ) | ||||
Net cash flows used for investing activities
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(18,174 | ) | (61,251 | ) | ||||
Cash flows from financing activities:
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Exercise of stock options and deferred stock units
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2,840 | 504 | ||||||
Proceeds from line of credit borrowings
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37,702 | 48,675 | ||||||
Repayments under line of credit borrowings
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(37,702 | ) | (40,600 | ) | ||||
Payment of contingent consideration related to acquisitions
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(3,253 | ) | (226 | ) | ||||
Purchase of treasury stock
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- | (626 | ) | |||||
Other financing activities
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- | (163 | ) | |||||
Net cash flows (used for) provided by financing activities
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(413 | ) | 7,564 | |||||
Net increase (decrease) in cash
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26,000 | (37,408 | ) | |||||
Cash and cash equivalents at beginning of period
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6,584 | 38,880 | ||||||
Cash and cash equivalents at end of period
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$ | 32,584 | $ | 1,472 |
Nine Months Ended
September 30, |
Three Months Ended
September 30, |
Last Twelve
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2012
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2011
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2012
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2011
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Months
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Industry Data(1) (in thousands of units): | ||||||||||
Industry Wholesale Production:
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Travel trailer and fifth-wheel RVs
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188.2 | 167.7 | 56.7 | 47.5 | 233.4 | |||||
Motorhome RVs
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21.3 | 20.0 | 6.8 | 5.3 | 26.1 | |||||
Manufactured homes
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42.1 | (2) | 37.1 | 14.4 | (2) | 13.9 | 56.6 | (2) | ||
Industry Retail Sales:
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Travel trailer and fifth-wheel RVs
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180.9 | (3) | 167.9 | 62.9 | (3) | 59.4 | 210.4 | (3) |
Twelve Months Ended
September 30, |
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2012
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2011
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Drew Content Per Industry Unit Produced:
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Travel trailer and fifth-wheel RV
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$ | 2,685 | $ | 2,244 | ||||
Motorhome RV
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$ | 1,002 | $ | 617 | ||||
Manufactured home
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$ | 1,459 | (2) | $ | 1,472 |
September 30,
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December 31,
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2012
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2011
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2011
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Balance Sheet Data:
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Current ratio
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2.5 | 2.3 | 2.7 | |||||||||
Total indebtedness to stockholders' equity
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- | - | - | |||||||||
Days sales in accounts receivable
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22.6 | 22.7 | 17.1 | |||||||||
Inventory turns, based on last twelve months
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7.5 | 6.0 | 6.3 |
2012
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Estimated Full Year Data:
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Capital expenditures
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$ 27 - 28 million
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Depreciation and amortization
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$ 25 - 26 million
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Stock-based compensation expense
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$ 6 - 7 million
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Annual tax rate
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37%
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(1) Industry wholesale production data for travel trailer and fifth-wheel RVs and motorhome RVs provided by the Recreation Vehicle Industry Association ("RVIA"). Industry wholesale production data for manufactured homes provided by the Institute for Building Technology and Safety ("IBTS"). Industry retail sales data provided by Statistical Surveys, Inc.
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(2) September wholesale data for manufactured homes has not been published yet, therefore 2012 manufactured housing wholesale data includes an estimate for September 2012 units.
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(3) September retail sales data for RVs has not been published yet, therefore 2012 retail data for RVs includes an estimate for September 2012 retail units.
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