ELKHART, Ind., Feb. 2 /PRNewswire-FirstCall/ -- Coachmen Industries, Inc. today announced its financial results for the fourth quarter and full year ended Dec. 31, 2008.
"As previously announced, we sold most of the assets of the RV Group on Dec. 26, 2008. RV finished-goods inventories and some other assets of the Group were sold below book value. Combined with operating losses sustained by the RV Group during the quarter, and the write-down of the remaining goodwill balances, this resulted in a rather unusual overall book loss for the Company for both the fourth quarter and the full year 2008. However, these actions also provide us with a clean platform to measure the performance of the restructured company as we move forward. In that regard, the overall book loss should not overshadow the perhaps equally extraordinary performance of our Housing Group, which posted a modest pre-tax profit for the full year 2008, as previously predicted," said Coachmen's President and CEO, Rick Lavers.
Net sales from continuing operations for the fourth quarter were $18.9 million compared to $22.5 million reported for the same period in 2007. Gross profit for the quarter increased to $0.3 million, or 1.8% of revenues, from $0.2 million, or 1.0% of revenues, for the fourth quarter of 2007. The Company reported a net loss from continuing operations of ($19.7) million, or ($1.24) per share, versus a net loss from continuing operations of ($7.2) million, or ($0.46) per share in the fourth quarter of 2007. The results for the fourth quarter of 2008 include non-recurring, non-cash impairment charges of $15.2 million, or $0.96 per share. Excluding these charges, net loss for the quarter ended Dec. 31, 2008 was ($4.5) million, or ($0.28) per share. Net loss, including discontinued operations, was ($52.1) million, or ($3.29) per share in the fourth quarter of 2008, versus a net loss of ($13.8) million, or ($0.88) per share, in the fourth quarter of 2007.
Net sales from continuing operations for the twelve-month period ended Dec. 31 were $119.6 million versus $119.2 million reported for the same period last year. Gross profit increased to $17.7 million, or 14.8% of revenues, from $12.8 million, or 10.8% of revenues, in 2007. Operating expenses increased to $38.6 million, from $24.6 million in 2007, primarily due to impairment charges. The Company reported a net loss from continuing operations of ($19.2) million or ($1.22) per share, versus a net loss from continuing operations of ($10.9) million or ($0.69) per share in 2007. The results for 2008 include non-recurring, non-cash impairment charges of $18.6 million, or $1.18 per share. Excluding these charges, net loss for the year ended Dec. 31, 2008 was ($0.6) million, or ($0.04) per share. Net loss, including discontinued operations, was ($68.2) million, or ($4.31) per share in 2008, versus a net loss of ($38.8) million, or ($2.46) per share, in 2007.
Discontinued Operations
The RV Industry unit shipments continued their downward trend in the fourth quarter. RV Industry numbers for Dec. reported motorized shipments were down a staggering 85.4%, while towable shipments were down 72.7%. "Many of our former competitors in the RV business are posting deep losses in step with these chronically-falling industry numbers, and some are no longer even in business. While we were also dealing with these widespread market conditions in the fourth quarter, Coachmen RV sales and margins were further impacted by the announcement of the sale of the RV Group on Nov. 21, 2008," said Lavers. "In most respects, the struggles of that industry will now be behind us, but we will still be dealing with tail liabilities associated with the ailing RV Industry for many months to come. The expenses associated with those tail liabilities have already been estimated and accrued for in our 2008 operating results." Due to the sale of the assets of the RV Group, Coachmen's Recreational Vehicle results are now reported as discontinued operations.
Housing Group
According to the U.S. Census Bureau, single family housing starts for the quarter were down 43.8% nationwide versus the same quarter in 2007. "The Housing Group's core business of single family homes was also adversely affected by deteriorating conditions in the nationwide housing market, and as expected, we posted a pre-tax and operating loss for the fourth quarter," commented Housing Group President Rick Bedell. "Nonetheless, the Housing Group's shipments of single family homes did manage to beat the nationwide market numbers by 13.0 percentage points. A combination of our major project activities, improved gross margins and reduced operating expenses generated a pre-tax profit for the year of $1.7 million compared with a pre-tax loss of ($7.4) million for the previous year," concluded Bedell.
Coachmen Industries will conduct a conference call to discuss these financial results at 10:00 a.m. (Eastern Time), Tuesday, Feb. 3, 2009. Members of the news media, investors and the general public are invited to access a live broadcast of the conference call over the internet at http://www.earnings.com/. The online replay will be available at approximately 12:00 p.m. (Eastern Time) and continue for 30 days.
Coachmen Industries, Inc. is one of America's premier manufacturers of systems-built construction, as well as specialty vehicles. Through ALL AMERICAN HOMES(R) and MOD-U-KRAF(R), the Company is one of the nation's largest producers of systems-built homes, and also a major builder of commercial and multi-family residential structures with its ALL AMERICAN BUILDING SYSTEMS(TM) products. Coachmen Industries, Inc. is a publicly held company with stock listed on the New York Stock Exchange (NYSE) under the ticker COA.
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, the potential fluctuations in the Company's operating results, increased interest rates the availability for floorplan financing for the Company's builders and corresponding availability of cash to Company, uncertainties and timing with respect to sales resulting from recovery efforts in the Gulf Coast, uncertainties regarding the impact on sales of the disclosed restructuring steps in housing and building segments, the ability of the company to generate taxable income in future years to utilize deferred tax assets and net operating loss carry-forwards available for use, the impact of performance on the valuation of intangible assets, the availability and the price of gasoline, price volatility of raw materials used in production, the Company's dependence on suppliers, the availability and cost of real estate for residential housing, the supply of existing homes within the company's markets, the impact of home values on housing demand, the impact of sub-prime lending on the availability of credit for the broader housing market, the ability of the Company to perform in new market segments where it has limited experience, adverse weather conditions affecting home deliveries, competition, government regulations, legislation governing the relationships of the Company with its builders, dependence on significant customers within certain product types, consolidation of distribution channels, consumer confidence, uncertainties of matters in litigation, current litigation relating to and Congressional inquiry surrounding the Company's use of components containing formaldehyde in its products, further developments in the war on terrorism and related international crises, oil supplies, and other risks identified in the Company's SEC filings.
Coachmen Industries, Inc. Consolidated Statements of Operations (In Thousands, Except Per Share Data) (Unaudited) Three Months Ended Twelve Months Ended December 31, December 31, 2008 2007 2008 2007 Net Sales $18,859 $22,483 $119,596 $119,186 Gross Profit - $ 333 234 17,676 12,847 Gross Profit - % 1.8% 1.0% 14.8% 10.8% GS&A - $ 6,163 6,377 20,064 24,703 GS&A - % 32.7% 28.4% 16.8% 20.7% Impairment Charge - $ 15,156 - 18,605 - Impairment Charge - % 80.4% 0.0% 15.6% 0.0% (Gain) Loss on Sale of Assets - $ 5 - (44) (74) (Gain) Loss on Sale of Assets - % 0.0% 0.0% (0.0)% (0.1)% Total Operating Expenses - $ 21,324 6,377 38,625 24,629 Total Operating Expenses - % 113.1% 28.4% 32.3% 20.7% Operating Loss - $ (20,991) (6,143) (20,949) (11,782) Operating Loss - % (111.3)% (27.3)% (17.5)% (9.9)% Outside Interest Expense 744 326 1,635 999 Outside Investment Income (409) (111) (1,094) (1,487) Other Income (1,035) (24) (1,600) (202) Other (Income) Expense (700) 191 (1,059) (690) Pre-Tax Loss from Continuing Operations - $ (20,291) (6,334) (19,890) (11,092) Pre-Tax Loss from Continuing Operations - % (107.6)% (28.2)% (16.6)% (9.3)% Tax Expense (Credit) (641) 841 (641) (154) Net Loss from Continuing Operations (19,650) (7,175) (19,249) (10,938) Discontinued Operations Loss from Discontinued Operations (Net of Taxes) (22,947) (6,663) (39,447) (27,814) Loss on Sale of Discontinued RV Assets (Net of Taxes) (9,464) - (9,464) - Loss from Discontinued Operations (32,411) (6,663) (48,911) (27,814) Net Loss (52,061) (13,838) (68,160) (38,752) Earnings per Share - Basic & Diluted Continuing Operations (1.24) (0.46) (1.22) (0.69) Discontinued Operations (2.05) (0.42) (3.09) (1.77) Net Loss per Share - Basic & Diluted $(3.29) $(0.88) $(4.31) $(2.46) Weighted Average Shares Outstanding Basic 15,834 15,743 15,801 15,727 Diluted 15,834 15,743 15,801 15,727 Coachmen Industries, Inc. Condensed Consolidated Balance Sheets (In Thousands) (Unaudited) ASSETS Current Assets December 31, December 31, 2008 2007 (Unaudited) Cash $15,745 $1,549 Restricted cash 1,600 - Accounts receivable 2,002 9,122 Inventories 19,960 79,268 Refundable income taxes 1,559 1,628 Prepaid expenses and other 9,320 7,623 Assets held for sale 2,913 - Total Current Assets 53,099 99,190 PP&E, Net 30,922 52,932 Goodwill - 12,993 Cash Value of Life Insurance, net of loans 4,462 33,936 Notes Receivable - Outside - 4,543 Restricted Cash - Long Term 17,321 1,193 Other 1,831 2,881 Total Assets $107,635 $207,668 LIABILITIES & SHAREHOLDERS' EQUITY Current Liabilities 12/31/2008 12/31/2007 Short term borrowings $819 $20,925 Accounts payable, trade 10,920 15,042 Accrued income taxes 1,470 536 Accrued expenses and other liabilities 28,708 33,235 Floor plan notes payable 3,096 4,116 Total Current Liabilities 45,013 73,854 Long-Term Debt 2,190 3,010 Deferred Income Taxes 1,355 1,990 Postretirement Deferred Compensation Benefits 4,508 7,632 Other 1,038 49 Total Liabilities 54,104 86,535 Shareholders' Equity 53,531 121,133 Total Liabilities and Shareholders' Equity $107,635 $207,668 Coachmen Industries, Inc. Condensed Consolidated Statement of Cash Flow (In Thousands) (Unaudited) Twelve Months Ended December 31, 2008 2007 Net loss $(68,160) $(38,752) Depreciation 4,225 5,790 Changes in current assets and liabilities 54,104 26,186 Net Cash Used in Operations (9,831) (6,776) Net Cash Provided by (Used in) Investing Activities 15,909 (3,209) Net borrowings 8,037 9,672 Issuance of stock 81 155 Dividends paid - (944) Net Cash Provided by Financing Activities 8,118 8,883 Increase/(Decrease) in Cash and Cash Equivalents 14,196 (1,102) Beginning of period 1,549 2,651 End of Period $15,745 $1,549 Coachmen Industries, Inc. Segment Information - Continuing Operations (In Thousands) (Unaudited) Three Months Twelve Months Ended Ended December 31, December 31, 2008 2007 2008 2007 Sales Housing 17,662 22,483 117,191 119,186 Other 1,197 - 2,406 - Total 18,859 22,483 119,596 119,186 Gross Profit Housing 574 234 18,302 12,847 Other (241) - (626) - Total 333 234 17,676 12,847 Gross Profit % Housing 3.2% 1.0% 15.6% 10.8% Other -20.1% n / m -26.0% n / m Total 1.8% 1.0% 14.8% 10.8% Operating Expenses Housing 3,821 5,257 16,485 20,200 Other 17,503 1,120 22,140 4,429 Total 21,324 6,377 38,625 24,629 Operating Expenses % Housing 21.6% 23.4% 14.1% 16.9% Other n / m n / m n / m n / m Total 113.1% 28.4% 32.3% 20.7% Operating Income / (Loss) Housing (3,247) (5,023) 1,817 (7,353) Other (17,744) (1,120) (22,766) (4,429) Total (20,991) (6,143) (20,949) (11,782) Pre-Tax Income / (Loss) from Continuing Operations Housing (3,301) (5,163) 1,679 (7,434) Other (16,990) (1,171) (21,569) (3,658) Total (20,291) (6,334) (19,890) (11,092)
