National R.V. Holdings, Inc. Anticipates Lower Revenues And Earnings for the 2nd Quarter 2000
1 June 2000
National R.V. Holdings, Inc. Anticipates Lower Revenues And Earnings for the 2nd Quarter 2000
PERRIS, Calif., June 1 National R.V. Holdings, Inc.
, today indicated that the Company's revenues for the quarter
ending June 30, 2000 are likely to be lower than previously anticipated.
Through the first two months of the second quarter, wholesale unit shipments
were down over 30% from the same two months last year. The lower than
expected revenues combined with additional costs to the Company from its
recently implemented sales promotion program are expected to reduce second
quarter earnings significantly below consensus estimates.
In response to the slower than expected demand for the Company's
model-year 2000 products, the Company has instituted a sales promotion program
designed to facilitate the movement of these older models and encourage the
ordering of new models. In addition, the Company has reduced its workforce by
350 employees, or 16 percent, at its two manufacturing facilities in order to
bring production levels in line with retail sales rates.
Wayne Mertes, National's President and CEO, stated, "Model year
changeovers are always difficult, and this year we are faced with units on
dealer lots that are not turning as we would like them to. These units are
primarily single-slide units and certain 2000 model-year floor plans that have
not moved through the retail channels at anticipated rates. In order to
enable the dealers to move these products and make room for our 2001 models,
which will begin shipping in late June, we have initiated an aggressive sales
promotion program. Despite the negative impact of weaker than expected sales
and the expenses of the sales promotion program, we still expect the Company
to be profitable for the quarter. Further, we will continue our efforts to
reduce expenses wherever possible."
National R.V. Holdings, Inc. is a leading manufacturer of Class "A" motor
homes. From its Perris, California facility, the Company designs, manufactures
and markets National R.V. Class "A" motor homes and fifth-wheel travel
trailers under brand names including Caribbean, Dolphin, Islander, Palisades,
Sea Breeze, Sea View, Surf Side, Tradewinds and Tropi-Cal. From its Junction
City facility, the Company designs, manufactures and markets Country Coach
high-end (Highline) Class "A" motor homes and bus conversions under brand
names including Affinity, Allure, Intrigue and Magna.
This release and other statements by the Company contain forward-looking
statements within the meaning of the Private Securities Litigation Reform Act
of 1995. Investors are cautioned that forward-looking statements are
inherently uncertain. Actual performance and results may differ materially
from that projected or suggested due to certain risks and uncertainties
including, without limitation, the cyclical nature of the recreational vehicle
industry, seasonality and potential fluctuations in the Company's operating
results; the Company's dependence on chassis suppliers, the integration by the
Company of acquired businesses and management of growth; potential liabilities
under repurchase agreements; competition; government regulation; product
liability; dependence on key personnel and dependence on certain dealers and
concentration of dealers in certain regions. Additional information
concerning certain risks and uncertainties that could cause actual results to
differ materially from that projected or suggested is contained in the
Company's filings with the Securities and Exchange Commission (SEC) over the
last 12 months, copies of which are available from the SEC or from the Company
upon request.
Please direct questions to investors@nrvh.com.