Fleetwood Reports Record Second Quarter Earnings
25 November 1997
Fleetwood Reports Record Second Quarter Earnings
RIVERSIDE, Calif., Nov. 25 -- Fleetwood Enterprises, Inc.
, the nation's largest producer of manufactured housing and
recreational vehicles, today announced record earnings for the second quarter
which ended October 26, 1997.
Net income for the quarter increased nine percent to $28.1 million or
77 cents per share compared to $25.8 million and 68 cents per share in last
year's similar period.
Earnings from continuing operations for the first six months of fiscal
1998 rose seven percent to $59.1 million or $1.61 per share versus
$55.1 million and $1.32 per share for last year's first half. Earnings per
share increased 22 percent, higher than the seven percent earnings growth, due
to fewer outstanding shares stemming from large share repurchases last year.
Current year earnings include a non-recurring gain of $10.4 million or
28 cents per share recognized in the first quarter from a significant
reinsurance transaction involving the Company's captive insurance operation.
Last year's first half included income from discontinued operations of
$34.8 million or 83 cents per share which, when added to income from
continuing operations, resulted in total earnings of $89.9 million or $2.15
per share. The income from discontinued operations reflected an after-tax
gain of $33.9 million or 81 cents per share from the sale of the Company's RV
finance subsidiary.
Fleetwood President Glenn Kummer commented on the favorable results
saying, "A rebound in profitability for our manufactured housing and supply
groups stimulated the second quarter earnings gain. This was partially offset
by recreational vehicle earnings that were below our expectations. RV results
were significantly affected by inefficiencies in the motor home division,
which continued to struggle with a plant production realignment started during
the first quarter. Unfortunately, this overshadowed excellent performances by
the travel trailer and folding trailer divisions," Kummer concluded.
Total Company revenues rose three percent to a record $769.1 million in
the second quarter, up from $748.8 million a year ago, largely due to higher
recreational vehicle sales. Six-month revenues of $1.5 billion were virtually
identical to last year's first half.
Recreational vehicle revenues for the latest thirteen-week period reached
$366.6 million, five percent ahead of last year's $348.8 million. Motor home
revenues of $215.2 million were almost unchanged from last year's second
quarter, despite an 11 percent decline in unit volume to 3,144 motor homes.
Towable RV products did considerably better as both travel trailers and
folding trailers produced sales gains. Travel trailer revenues were up 11
percent to $122.7 million as unit volume rose five percent to 8,319. Folding
trailer sales jumped 31 percent to $28.7 million on a 15 percent gain in
shipments to 5,472 units.
Six-month RV revenues totaled $717.3 million, a two percent gain over last
year's first half. This improvement resulted from a six percent increase in
travel trailer sales and a strong 35 percent gain in folding trailer volume.
Travel trailer sales totaled $242.0 million and folding trailers reached a
record volume of $52.7 million. The Company's motor home division recorded
first half revenues of $422.7 million, off four percent from last year's
record pace.
Manufactured housing revenues for the second quarter were a record
$390.7 million, up about one percent from last year's comparable period. A
total of 17,248 homes were sold in the quarter, three percent below last
year's similar period, but the number of floors shipped were two percent
higher due to a heavier mix of multi-section homes. For the first six months
of fiscal 1998, housing revenues eased one percent to $757.3 million.
Fleetwood's supply operations contributed second quarter revenues of
$11.8 million compared to last year's $14.4 million. For the six months,
supply operations generated revenues of $22.9 million versus $30.7 million in
last year's first half.
FLEETWOOD ENTERPRISES, INC.
Consolidated Summaries of Earnings
(Unaudited)
(Amounts in thousands except per share data)
13 Weeks 13 Weeks 26 Weeks 26 Weeks
Ended Ended Ended Ended
Oct. 26, Oct. 27, Oct. 26, Oct. 27,
1997 1996 1997 1996
Sales $769,089 $748,780 $1,497,543 $1,500,025
Income from continuing
operations before
income taxes $45,862 $42,376 $96,206 $90,978
Provision for income
taxes (17,738) (16,604) (37,140) (35,874)
Income from continuing
operations 28,124 25,772 59,066 55,104
Income from discontinued
operations:
Income from operations of
finance subsidiary -- -- -- 887
Gain on sale of
finance subsidiary -- -- -- 33,891
-- -- -- 34,778
Net income $28,124 $25,772 $59,066 $89,882
Net income per Common
and equivalent share:
Continuing operations $.77 $.68 $1.61 $1.32
Discontinued operations:
Income from operations
of finance subsidiary -- -- -- .02
Gain on sale of finance
subsidiary -- -- -- .81
-- -- -- .83
Total $.77 $.68 $1.61 $2.15
Common and equivalent
shares outstanding 36,514 37,837 36,584 41,877
Fleetwood Enterprises, Inc.
Business Segment and Unit Shipment Information
(Dollars in thousands)
13 Weeks 13 Weeks 26 Weeks 26 Weeks
Ended Ended Ended Ended
Oct. 26, Oct. 27, Oct. 26, Oct. 27,
1997 1996 1997 1996
OPERATING REVENUES:
Manufactured housing $390,652 $385,497 $757,301 $762,642
Recreational vehicles 366,654 348,835 717,347 706,689
Supply operations 11,783 14,448 22,895 30,694
$769,089 $748,780 $1,497,543 $1,500,025
OPERATING INCOME:
Manufactured housing $25,309 $24,563 $41,139 $54,008
Recreational vehicles 17,944 19,704 34,057 38,813
Supply operations 3,860 78 7,252 1,471
Corporate and other (2,663) (3,418) (5,104) (8,687)
$44,450 $40,927 $77,344 $85,605
UNIT VOLUME:
Manufactured housing -
Total homes 17,248 17,748 33,607 35,201
Total sections 27,199 26,679 52,992 52,705
Recreational vehicles -
Motor homes 3,144 3,521 6,461 7,695
Travel trailers 8,319 7,889 16,873 16,726
Folding trailers 5,472 4,763 10,192 8,287
16,935 16,173 33,526 32,708
SOURCE Fleetwood Enterprises, Inc.