SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
Current Report Pursuant to
Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): May 5, 2000
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COACHMEN INDUSTRIES, INC.
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(Exact Name of Registrant as Specified in its Charter)
Indiana
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(State or Other Jurisdiction of Incorporation)
1-7160 35-1101097
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(Commission File Number) (I.R.S. Employer Identification Number)
2831 Dexter Drive, Elkhart, Indiana 46514
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(Address of Principal Executive Offices) (Zip Code)
(219) 262-01236
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(Registrant's Telephone Number, Including Area Code)
<PAGE>
ITEM 5. OTHER EVENTS.
On May 5, 2000 the Company filed a press release announcing
first quarter results; shareholders' election of board; and approval of stock
incentive plan. A copy of the press release is attached as Exhibit 99.1.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(a) EXHIBITS
Exhibit
Number Description
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99.1 May 5, 2000 Press Release announcing
first quarter results; shareholders'
election of board; and approval of
stock incentive plan
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
COACHMEN INDUSTRIES, INC.
By: /s/ Richard M. Lavers
---------------------------------
Richard M. Lavers
General Counsel & Secretary
Dated: May 5, 2000
Exhibit 99.1
NEWS RELEASE
For immediate release Friday, May 5, 2000
COACHMEN INDUSTRIES, INC. ANNOUNCES FIRST QUARTER RESULTS; SHAREHOLDERS ELECT
BOARD, APPROVE STOCK INCENTIVE PLAN
ELKHART, INDIANA - Coachmen Industries, Inc. (NYSE: COA) announced today that
its shareholders elected 10 directors of the Company to hold office for the
ensuing year and approved the Company's 2000 Omnibus Stock Incentive Program.
These results are preliminary, and are being certified by CT Corporation,
appointed as the independent judge of the election.
"I am very gratified by the voting results and the expressions of support from
so many of our shareholders, employees, dealers, builders and suppliers," said
Claire C. Skinner, Chairman of the Board and Chief Executive Officer.
At the meeting of the Board of Directors, held May 4, 2000, Coachmen's Board
approved the release of first quarter results. Sales for the first quarter
ending March 31, 2000 were $195.2 million, a 7.5 percent decrease from last
year's record first quarter sales of $211.0 million.
Diluted earnings per share were 26 cents for the quarter, compared to 43 cents
in the comparable period in 1999, a 39.5 percent decrease. Total net income for
the quarter was $4.0 million, a 44.2 percent decrease compared with $7.2 million
recorded in the same period last year.
"The fundamentals of our business remain strong with good cash flows and a
strong balance sheet," said James E. Jack, Executive Vice President and Chief
Financial Officer. "Moving forward, we expect that our strategies, capital
expenditures on plant and equipment and investments in new technology,
accompanied by our loyal and expanding dealer and builder base, will result in
improved performance."
The reduction in sales was primarily due to the divestiture of Coachmen's van
conversion division and certain company owned dealerships completed during the
first quarter of 2000. The van conversion division was marginally profitable
during the first quarter of 1999.
The reduction in earnings was the result of four factors. First, the Company has
experienced higher costs in a variety of areas as a result of the
reconfiguration of the facilities that were formerly occupied by Coachmen's van
conversion business to build Georgie Boy diesel Class A motorhomes, and costs
related to the growth of the modular housing segment. These costs reduced gross
profit on sales and operating income. A second factor is the recognition that
delayed deliveries of RV products during 1999 have, in turn, slowed wholesale
deliveries into 2000. Also, sporadic weather related delivery problems among the
All American Homes operations impacted first quarter sales. Finally, there are
continuing implementation costs associated with new technology system solutions.
"We are disappointed in the bottom line results, but Coachmen's strategic plan
is to continue the top line growth rate achieved during the 1990s when both our
RV sales and housing shipments
(Continued on back side)
<PAGE>
Coachmen Announces First Quarter Results (Continued from front side):
outpaced their respective industries. During the decade, Coachmen Industries'
sales grew by 116.5 percent versus a 63.9 percent increase by other RV
manufacturers, and housing shipments increased 344.1 percent during a time when
housing starts increased by 50.6 percent in the markets we serve," added
Skinner. "We are continuing our growth initiatives as evidenced by this week's
agreement to acquire Mod-U-Kraf Homes, Inc." Headquartered in Rocky Mount,
Virginia, Mod-U-Kraf enhances Coachmen's presence in the modular housing
segment, and offers Coachmen new ventures with its Special Projects Division
that serves the commercial building sector.
Economic factors including consumer confidence and demographics remain favorable
for both the recreational vehicle and modular housing industries. Coachmen is
uniquely positioned to meet the broad range of RV consumer preferences because
it produces every traditional recreational vehicle type. The recreational
vehicle companies of Coachmen Industries include Coachmen Recreational Vehicle
Co., Georgie Boy Manufacturing, Inc., Viking Recreational Vehicle Co., and
Shasta Industries. Coachmen Industries, Inc. also continues to be the nation's
largest manufacturer of modular housing under the "All American Homes" brand
name. Virtually all of the Company's modular homes are pre-sold to retail owners
before being built so neither the Company nor its builder partners carry unsold
inventory.
"We remain committed to improving shareholder value by enhancing our technology
infrastructure and reallocating assets to enable us to provide the products and
related services that a new generation of customers is demanding," Skinner
concluded.
In other business, the Board of Directors approved a five cents per share
dividend to shareholders of record as of May 25, 2000. This is the 71st
consecutive quarter that Coachmen Industries has paid dividends.
Coachmen Industries, Inc. is one of the nation's leading producers of
recreational vehicles and is the largest producer of modular homes in the U.S.
Recreational vehicles comprised 82 percent of Coachmen Industries' first quarter
sales and modular homes represented 18 percent.
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, the implementation of
the new enterprise-wide software, the availability of gasoline, the Company's
dependence on chassis suppliers, interest rates, competition, government
regulations, and other risks identified in the Company's SEC filings.
For more information:
James E. Jack Rich Allen
Executive Vice President and Corporate Communications
Chief Financial Officer 219-262-0123
219-262-0123
Steve Bruce or Mary Beth Kissane
The Abernathy MacGregor Group, Inc.
212-371-5999
###
<PAGE>
<TABLE>
COACHMEN INDUSTRIES, INC.
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(in thousands)
<CAPTION>
THREE MONTHS
ENDED MARCH 31,
2000 1999
-------- --------
<S> <C> <C>
BEGINNING CASH AND TEMPORARY CASH INVESTMENTS $ 4,269 $ 23,009
Cash flows from operating activities 2,677 6,842
Cash flows from investing activities 8,709 (8,024)
Cash flows from financing activities (611) (1,466)
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Increase (decrease) in cash and temporary cash investments 10,775 (2,648)
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ENDING CASH AND TEMPORARY CASH INVESTMENTS $ 15,044 $ 20,361
======== ========
</TABLE>
<TABLE>
CONSOLIDATED SEGMENT INFORMATION
(in thousands)
<CAPTION>
THREE MONTHS
ENDED MARCH 31,
2000 1999
---------- ----------
<S> <C> <C>
NET SALES:
Vehicles $ 159,465 $ 178,795
Housing 35,763 32,230
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Consolidated total $ 195,228 $ 211,025
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PRETAX INCOME:
Vehicles $ 5,867 $ 8,996
Housing 1,854 2,344
Other reconciling items (1,521) (611)
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Consolidated total $ 6,200 $ 10,729
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TOTAL ASSETS:
Vehicles $ 165,999 $ 169,622
Housing 41,918 42,511
Other reconciling items 87,423 83,718
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Consolidated total $ 295,340 $ 295,851
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</TABLE>
<PAGE>
<TABLE>
COACHMEN INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(in thousands except per share data)
<CAPTION>
THREE MONTHS
ENDED MARCH 31,
2000 1999
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<S> <C> <C>
Net sales $ 195,228 $ 211,025
Cost of goods sold 171,062 183,452
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Gross profit 24,166 27,573
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Selling, delivery and general and admin. expenses 17,722 17,092
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Operating income 6,444 10,481
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Nonoperating income (expense), net (244) 248
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Income before income taxes 6,200 10,729
Income taxes 2,170 3,512
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Net income $ 4,030 $ 7,217
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Earnings per common share:
Basic $ .26 $ .43
Diluted $ .26 $ .43
Number of common shares used in the
computation of earnings per share:
Basic 15,551 16,625
Diluted 15,570 16,631
</TABLE>
<TABLE>
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in thousands)
<CAPTION>
MARCH 31,
2000 1999
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<S> <C> <C>
ASSETS
Cash and investments $ 37,318 $ 52,528
Receivables 47,659 57,025
Inventories 107,651 95,322
Prepaid expenses and other 2,236 1,588
Deferred income taxes 4,743 3,973
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Current assets 199,607 210,436
Property and equipment, net 75,358 66,875
Intangibles 4,395 4,521
Other assets 15,980 14,884
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Total assets $ 295,340 $ 296,716
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LIABILITIES
Current maturities of long-term debt $ 2,746 $ 1,825
Accounts payable 29,360 35,294
Accrued income taxes 3,055 5,575
Other current liabilities 27,890 27,012
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Current liabilities 63,051 69,706
Long-term debt 7,000 8,966
Other liabilities 8,083 6,631
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Total liabilities 78,134 85,303
SHAREHOLDERS' EQUITY
Common shares 38,603 56,606
Additional paid-in capital 4,639 3,934
Retained earnings 173,964 150,873
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Total shareholders' equity 217,206 211,413
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Total liabilities and shareholders' equity $ 295,340 $ 296,716
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</TABLE>
