Coachmen Industries, Inc. Generates Positive Operating Cash and First Quarterly Profit From Buses Despite Consolidated Third Quarter Loss
ELKHART, Ind., Oct. 28, 2009 -- Coachmen Industries, Inc. (OTC:COHM.PK) today announced its financial results for the third quarter ended September 30, 2009.
"Despite many predictions in the popular and trade press that the housing market would turn in the second half of this year, through the third quarter, our Company saw no sales evidence of any rebound in the housing markets; the beginning of the end of the slide, a bottoming, perhaps, but no sign of any increase," commented Richard M. Lavers, President and Chief Executive Officer. "Year-over-year comparisons were affected by the decrease in sales revenue due to the housing markets, however, I am very pleased that we generated positive cash flow from operations of more than $2 million during the third quarter and that our unrestricted cash balance increased during the quarter by $1.1 million. In these economic conditions, cash conservation is critical. We placed a premium on managing our available resources prudently, and these results attest to those efforts. The announcement we made today of a new $20 million financing arrangement, coupled with the word of more than $16 million in new major housing projects, is also very good news for our Company."
Net sales from continuing operations for the third quarter were $16.1 million, compared to $31.6 million for the third quarter of 2008. Gross profits for the quarter were a loss of ($944,000), or (5.9) % of revenue, as compared to a gross profit of $4.85 million, or 15.4% of revenue, in the third quarter of 2008. The Company reported a net loss from continuing operations of ($5.19) million, or ($0.32) per share, versus a net loss from continuing operations of ($3.8) million, or ($0.24) per share, in the third quarter of 2008. Net loss, including discontinued operations, was ($3.9) million, or ($0.24) per share in the third quarter of 2009, versus a net loss of ($14.5) million, or ($0.92) per share in the third quarter of 2008. Net book value per share as of September 30, 2009 was $3.40.
Housing Group
Housing Group President Rick Bedell commented: "The loss generated by the Housing Group during the quarter is largely attributable to under-absorption of overhead due to low production levels as a direct result of continuing market conditions. One of the biggest challenges in the Housing Group's core business of single-family homes has been financing for our customers. We have a steady stream of people who want to buy our homes, but who are unable to obtain financing because of prevailing credit restrictions. We also experienced delays in a number of major project contracts during the third quarter."
Specialty Vehicle Group
Lavers concluded: "Sales of the Spirit of Mobility buses produced for our joint venture ARBOC Mobility continue to increase. However, the rate of increase was slowed by production issues at General Motors, most notably the plant shutdowns during the summer months, which delayed 2009 chassis shipments to September. Despite these challenges, and although the Specialty Vehicle Group (including the tail of some service parts operations) reported a slight overall loss for the quarter, this is the first full quarter that the bus portion of this segment has reported a profit. We anticipate this upward trend will continue."
The Company will provide more details in an update to its shareholders to be issued within the next week.
About Coachmen Industries
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.
Coachmen Industries, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2009 2008 2009 2008
---- ---- ---- ----
Net sales $ 16,074 $ 31,566 $ 45,088 $ 100,738
Gross profit - $ (944) 4,852 (2,168) 17,344
Pre-tax income (loss) from
continuing operations (5,159) (3,796) (14,166) 401
Net income (loss) from
continuing operations (5,193) (3,796) (14,147) 401
Income (loss) from
discontinued operations 1,298 (10,667) 15,317 (16,500)
Net income (loss) (3,895) (14,463) 1,170 (16,099)
Net income (loss) per share
- Basic & Diluted $ (0.24) $ (0.92) $ 0.07 $ (1.02)
Weighted average shares
outstanding - Basic 16,024 15,815 15,946 15,787
Weighted average shares
outstanding - Diluted 16,024 15,815 15,965 15,787
Condensed Segment Data - Continuing Operations
(Unaudited) (in thousands)
Three Months Ended Nine Months Ended
September 30, September 30,
2009 2008 2009 2008
---- ---- ---- ----
Net sales
Specialty Vehicles $ 3,948 $ 803 $ 7,887 $ 1,209
Housing 12,126 30,763 37,201 99,529
Other - - - -
--- --- --- ---
Consolidated total $ 16,074 $ 31,566 $ 45,088 $ 100,738
========= ========= ========= =========
Gross profit
Specialty Vehicles $ 265 $ (79) $ (330) $ (385)
Housing (1,202) 4,931 (1,814) 17,729
Other (7) - (24) -
--- --- --- ---
Consolidated total $ (944) $ 4,852 $ (2,168) $ 17,344
========= ========= ======== =========
Pre-tax income (loss) from
continuing operations
Specialty Vehicles $ (22) $ (79) $ (1,190) $ (386)
Housing (4,650) 572 (11,367) 4,981
Other (487) (4,289) (1,609) (4,194)
---- ------ ------ ------
Consolidated total $ (5,159) $ (3,796) $ (14,166) $ 401
========= ========= ========= =========
Coachmen Industries, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands)
September 30, December 31,
2009 2008
---- ----
Assets (Unaudited)
CURRENT ASSETS
Cash and cash equivalents $ 4,829 $ 15,745
Accounts receivable 3,220 1,837
Inventories 16,744 19,910
Prepaid expenses and other current assets 13,721 15,128
------ ------
Total current assets 38,514 52,620
Property, plant and equipment, net 29,067 30,922
Other 18,112 23,862
------ ------
TOTAL ASSETS $ 85,693 $ 107,404
========= =========
Liabilities and Shareholders' Equity
CURRENT LIABILITIES
Short-term borrowings & current
portion of LT debt $ 1,064 $819
Accounts payable, trade 5,828 11,414
Accrued expenses and other liabilities 16,651 32,597
Floorplan notes payable - 3,096
- -----
Total current liabilities 23,543 47,926
Long-term debt 3,885 2,190
Other long-term liabilities 4,124 4,599
----- -----
Total liabilities 31,552 54,715
Total shareholders' equity 54,141 52,689
------ ------
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $ 85,693 $ 107,404
========= =========
Condensed Consolidated Statements of Cash Flows
(Unaudited) (in thousands)
Nine Months Ended September 30,
-------------------------------
2009 2008
---- ----
Net income (loss) $ 1,170 $ (16,099)
Depreciation 1,910 3,872
Changes in current assets and liabilities (17,337) (7,327)
------- ------
Net cash used in operating activities (14,257) (4,900)
Net cash provided by (used in)
Investing activities 3,073 (1,010)
Net borrowings 296 6,869
Issuance (purchase) of stock (28) 113
--- ---
Net cash provided by financing
activities 268 6,982
Increase (decrease) in cash and cash
equivalents (10,916) 1,072
Beginning of period cash and cash
equivalents 15,745 1,549
------ -----
End of period cash and cash equivalents $ 4,829 $ 2,621
========== =========