Coachmen Industries, Inc. Announces Much-Improved Fourth Quarter 2009 Results
ELKHART, Ind., Feb. 16 /PRNewswire-FirstCall/ -- Coachmen Industries, Inc. (OTC: COHM) today announced its financial results for the fourth quarter of 2009, ending December 31, 2009.
The Company has revised its financial results from the news release previously issued on February 1, 2010. The revision was related to the accounting treatment of the loan agreement described below, and resulted in balance sheet classification changes, and a non-cash charge to earnings.
On October 27, 2009, the Company completed a two year $20.0 million loan agreement as borrowers with H.I.G. All American, LLC for a $10.0 million revolving note and $10.0 million in convertible notes. In connection with the convertible notes, the Company issued to H.I.G. approximately 6.7 million Common Stock Purchase Warrants. The convertible notes also contain a beneficial conversion feature. The fair value of the warrants and the beneficial conversion feature were determined to be $7.6 million and $5.4 million, respectively, and the resulting $13.0 million has been recorded as a liability on the balance sheet in accordance with generally accepted accounting principles (ASC 815-40-15). The Company recorded a debt discount on the convertible notes for the full $10.0 million due to the issuance of the warrants and beneficial conversion feature whose fair value exceeded the value of the debt. The difference between the debt discount of $10.0 million and the fair value of the warrants and the beneficial conversion feature of $13.0 million resulted in $3.0 million being recorded as a non-cash interest expense during the 4th quarter. At December 31, 2009, the Company has not borrowed against the revolving note and the $10 million in convertible debt, which has been borrowed, will be accreted to the balance sheet over the 2 year life of the loan agreement.
"The housing markets may have stopped their freefall, but they have not yet begun to improve. Quarterly sales in our primary housing business were 44% less than what they were in the same quarter in 2008," commented Richard M. Lavers, President and Chief Executive Officer. "Nonetheless, we improved our gross profit significantly year over year, and our losses in the fourth quarter were about 1/10th of the prior year's loss. Our Specialty Vehicles business is showing significant growth, with quarterly sales revenue up more than 365% as compared to the same quarter last year. These improvements show that we remain headed in the right direction, despite general economic conditions."
Net sales from continuing operations for the fourth quarter were $15.5 million compared to $18.9 million reported for the same period in 2008. Gross profits for the quarter were $1.13 million or 7.3% of revenues, compared to a gross profit of $36,000 or 0.19% of revenues for the fourth quarter of 2008. The Company reported a net loss from continuing operations of ($6.09) million, or ($0.38) per share, versus a net loss from continuing operations of ($19.1) million, or ($1.21) per share in the fourth quarter of 2008. Net loss, including discontinued operations, was ($5.9) million, or ($0.37) per share in the fourth quarter of 2009, versus a net loss of ($52.9) million, or ($3.35) per share in the fourth quarter of 2008.
Housing Group
"While the Housing Group's single-family homes business remains adversely affected by the nationwide housing market, we have been successful at receiving contracts for several major projects, which are reflected in our fourth quarter results," commented Housing Group President Rick Bedell. "We continue to pursue a number of major project opportunities, and expect that these opportunities will help us better utilize our factories when the slump in the single-family housing market ends."
Specialty Vehicle Group
"While sales of the Spirit of Mobility buses produced for our joint venture ARBOC Mobility remain relatively modest, we are achieving continuous increases in orders and shipments. Our sales in this business segment were up more than four and one half times as compared to the fourth quarter of 2008. We expect this segment of our business will continue to grow during 2010," stated Lavers.
Coachmen Industries, Inc., doing business as All American Group, 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 Twelve Months Ended
December 31, December 31,
2009 2008 2009 2008
Net sales $15,535 $18,859 $60,623 $119,596
Gross profit
(loss) -$ 1,132 36 (1,036) 17,379
Pre-tax (loss)
from continuing
operations (6,418) (20,619) (20,583) (20,218)
Net (loss) from
continuing
operations (6,091) (19,080) (20,237) (18,679)
Income (loss)
from discontinued
operations 190 (33,823) 15,507 (50,323)
Net (loss) (5,900) (52,903) (4,730) (69,002)
Net (loss) per
share -Basic &
Diluted $(0.37) $(3.35) $(0.29) $(4.37)
Weighted average
shares
outstanding
-Basic 16,134 15,833 16,073 15,799
Weighted average
shares
outstanding
-Diluted 16,134 15,833 16,073 15,799
Condensed Segment Data – Continuing Operations
(Unaudited) (in thousands)
Three Months Ended Twelve Months Ended
December 31, December 31,
2009 2008 2009 2008
---- ---- ---- ----
Net sales
Specialty
Vehicles $5,605 $1,197 $13,493 $2,405
Housing 9,930 17,662 47,130 117,191
----- ------ ------ -------
Consolidated
total $15,535 $18,859 $60,623 $119,596
======= ======= ======= ========
Gross profit (loss)
Specialty
Vehicles $641 $(249) $310 $(635)
Housing 540 285 (1,275) 18,014
Other (49) - (71) -
--- --- --- ---
Consolidated
total $1,132 $36 $(1,036) $17,379
====== === ======= =======
Pre-tax income
(loss) from
continuing
operations
Specialty
Vehicles $334 $(250) $(856) $(635)
Housing (2,547) (3,656) (13,914) 1,324
Other (4,205) (16,713) (5,813) (20,907)
------ ------- ------ -------
Consolidated
total $(6,418) $(20,619) $(20,583) $(20,218)
======= ======== ======== ========
Coachmen Industries, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands)
December 31, December 31,
2009 2008
---- ----
Assets (Unaudited)
CURRENT ASSETS
Cash and cash equivalents $6,352 $15,745
Restricted Cash 10,191 1,600
Receivables 4,589 6,503
Inventories 21,566 19,910
Prepaid expenses and other current assets 10,923 8,862
------ -----
Total current assets 53,621 52,620
Property, plant and equipment, net 28,787 30,922
Other 7,641 23,862
----- ------
TOTAL ASSETS $90,049 $107,404
======= ========
Liabilities and Shareholders' Equity
CURRENT LIABILITIES
Short-term borrowings & current portion of
LT debt $369 $819
Accounts payable, trade 9,132 11,414
Accrued expenses and other liabilities 12,624 32,597
Floorplan notes payable - 3,096
--- -----
Total current liabilities 22,125 47,926
Long-term debt 2,828 2,190
Fair value of derivative instruments 13,030 -
Other long-term liabilities 3,709 4,599
----- -----
Total liabilities 41,692 54,715
Total shareholders' equity 48,357 52,689
------ ------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $90,049 $107,404
======= ========
Condensed Consolidated Statements of Cash Flows
(Unaudited) (in thousands)
Twelve Months Ended December 31,
----------------------------
2009 2008
---- ----
Net (loss) $(4,730) $(69,002)
Depreciation , amortization and other
non-cash charges 6,544 4,225
Changes in current assets and
liabilities (24,283) 55,169
------- ------
Net cash used in operating activities (22,469) (9,608)
Net cash provided by investing
activities 7,696 15,686
Net borrowings 5,405 8,037
Issuance (purchase) of stock (25) 81
--- ---
Net cash provided by financing
activities 5,380 8,118
Increase (decrease) in cash and cash
equivalents (9,393) 14,196
Beginning of period cash and cash
equivalents 15,745 1,549
------ -----
End of period cash and cash equivalents $6,352 $15,745
====== =======
SOURCE Coachmen Industries, Inc.
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