COACHMEN INDUSTRIES, INC.
2831 Dexter Drive • P.O. Box 3300 • Elkhart, Indiana 46514 • 574/266-2500 • Fax 574/266-2559

NEWS RELEASE

For immediate release October 28, 2009


COACHMEN INDUSTRIES, INC. GENERATES POSITIVE OPERATING CASH AND FIRST QUARTERLY PROFIT FROM BUSES DESPITE CONSOLIDATED THIRD QUARTER LOSS

Elkhart, IN - Coachmen Industries, Inc. (OTC:COHM.PK) today announced its financial results for the third quarter ended September 30, 2009.

“Despite many predictions in the popular and trade press that the housing market would turn in the second half of this year, through the third quarter, our Company saw no sales evidence of any rebound in the housing markets; the beginning of the end of the slide, a bottoming, perhaps, but no sign of any increase,” commented Richard M. Lavers, President and Chief Executive Officer. “Year-over-year comparisons were affected by the decrease in sales revenue due to the housing markets, however, I am very pleased that we generated positive cash flow from operations of more than $2 million during the third quarter and that our unrestricted cash balance increased during the quarter by $1.1 million. In these economic conditions, cash conservation is critical. We placed a premium on managing our available resources prudently, and these results attest to those efforts. The announcement we made today of a new $20 million financing arrangement, coupled with the word of more than $16 million in new major housing projects, is also very good news for our Company.”

Net sales from continuing operations for the third quarter were $16.1 million, compared to $31.6 million for the third quarter of 2008. Gross profits for the quarter were a loss of ($944,000), or (5.9)% of revenue, as compared to a gross profit of $4.85 million, or 15.4% of revenue, in the third quarter of 2008. The Company reported a net loss from continuing operations of ($5.19) million, or ($0.32) per share, versus a net loss from continuing operations of ($3.8) million, or ($0.24) per share, in the third quarter of 2008. Net loss, including discontinued operations, was ($3.9) million, or ($0.24) per share in the third quarter of 2009, versus a net loss of ($14.5) million, or ($0.92) per share in the third quarter of 2008. Net book value per share as of September 30, 2009 was $3.40.
 
Housing Group

Housing Group President Rick Bedell commented: “The loss generated by the Housing Group during the quarter is largely attributable to under-absorption of overhead due to low production levels as a direct result of continuing market conditions.  One of the biggest challenges in the Housing Group's core business of single-family homes has been financing for our customers.  We have a steady stream of people who want to buy our homes, but who are unable to obtain financing because of prevailing credit restrictions.  We also experienced delays in a number of major project contracts during the third quarter.”

 
 

Coachmen Industries, Inc. Announces Third Quarter Results
Page 2 of 4
October 28, 2009                                             
 
 
 
Specialty Vehicle Group

Lavers concluded: “Sales of the Spirit of Mobility buses produced for our joint venture ARBOC Mobility continue to increase.  However, the rate of increase was slowed by production issues at General Motors, most notably the plant shutdowns during the summer months, which delayed 2009 chassis shipments to September. Despite these challenges, and although the Specialty Vehicle Group (including the tail of some service parts operations) reported a slight overall loss for the quarter, this is the first full quarter that the bus portion of this segment has reported a profit. We anticipate this upward trend will continue.”

The Company will provide more details in an update to its shareholders to be issued within the next week.



About Coachmen Industries

Coachmen Industries, Inc. 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.




For financial information:
Colleen A. Zuhl
Chief Financial Officer
574-266-2500

For investor information:
James T. Holden
Corporate Secretary and Assistant General Counsel
574-266-2500


 
 

 
Coachmen Industries, Inc. Announces Third Quarter Results
Page 3 of 4
October 28, 2009                                                                                                                                


Coachmen Industries, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
(Unaudited)

   
Three Months Ended
   
Nine Months Ended
 
     September 30,      September 30,  
   
2009
   
2008
   
2009
   
2008
 
                         
Net sales
  $ 16,074     $ 31,566     $ 45,088     $ 100,738  
                                 
Gross profit - $
    (944     4,852       (2,168 )     17,344  
                                 
Pre-tax income (loss) from continuing operations
    (5,159 )     (3,796     (14,166 )     401  
                                 
Net income (loss) from continuing operations
    (5,193 )     (3,796 )     (14,147 )     401  
                                 
Income (loss) from discontinued operations
    1,298       (10,667 )     15,317       (16,500 )
                                 
Net income (loss)
    (3,895 )     (14,463 )     1,170       (16,099 )
                                 
Net income (loss) per share - Basic & Diluted
  $ (0.24 )   $ (0.92 )   $ 0.07     $ (1.02 )
                                 
Weighted average shares outstanding - Basic
    16,024       15,815       15,946       15,787  
Weighted average shares outstanding - Diluted
    16,024       15,815       15,965       15,787  


Condensed Segment Data – Continuing Operations
(Unaudited)  (in thousands)

   
Three Months Ended
   
Nine Months Ended
 
     September 30,      September 30,  
   
2009
   
2008
   
2009
   
2008
 
Net sales
                       
Specialty Vehicles
  $ 3,948     $ 803     $ 7,887     $ 1,209  
Housing
    12,126       30,763       37,201       99,529  
Other
    -       -       -       -  
                                 
Consolidated total
  $ 16,074     $ 31,566     $ 45,088     $ 100,738  
                                 
Gross profit
                               
Specialty Vehicles
  $ 265     $ (79 )   $ (330 )   $ (385 )
Housing
    (1,202 )     4,931       (1,814 )     17,729  
Other
    (7 )     -       (24 )     -  
                                 
Consolidated total
  $ (944 )   $ 4,852     $ (2,168 )   $ 17,344  
                                 
Pre-tax income (loss) from continuing operations
                               
Specialty Vehicles
  $ (22 )   $ (79 )   $ (1,190 )   $ (386 )
Housing
    (4,650 )     572       (11,367 )     4,981  
Other
    (487 )     (4,289 )     (1,609 )     (4,194 )
                                 
Consolidated total
  $ (5,159 )   $ (3,796 )   $ (14,166 )   $ 401  


 
 
 

Coachmen Industries, Inc. Announces Third Quarter Results
Page 4 of 4
October 28, 2009                                                                                                                                

 Coachmen Industries, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands)

   
September 30,
   
December 31,
 
   
2009
   
2008
 
Assets
 
(Unaudited)
       
CURRENT ASSETS
           
Cash and cash equivalents
  $ 4,829     $ 15,745  
Accounts receivable
    3,220       1,837  
Inventories
    16,744       19,910  
Prepaid expenses and other current assets
    13,721       15,128  
Total current assets
    38,514       52,620  
                 
Property, plant and equipment, net
    29,067       30,922  
Other
    18,112       23,862  
TOTAL ASSETS
  $ 85,693     $ 107,404  
                 
Liabilities and Shareholders' Equity
               
CURRENT LIABILITIES
               
Short-term borrowings & current portion of LT debt
  $ 1,064     $ 819  
Accounts payable, trade
    5,828       11,414  
Accrued expenses and other liabilities
    16,651       32,597  
Floorplan notes payable
    -       3,096  
Total current liabilities
    23,543       47,926  
                 
Long-term debt
    3,885       2,190  
Other long-term liabilities
    4,124       4,599  
Total liabilities
    31,552       54,715  
                 
Total shareholders' equity
    54,141       52,689  
                 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
  $ 85,693     $ 107,404  


Condensed Consolidated Statements of Cash Flows
(Unaudited)  (in thousands)

   
Nine Months Ended
 
     September 30,  
   
2009
   
2008
 
             
Net income (loss)
  $ 1,170     $ (16,099 )
Depreciation
    1,910       3,872  
Changes in current assets and liabilities
    (17,337     (7,327
  Net cash used in operating activities
    (14,257     (4,900
                 
  Net cash provided by (used in) investing activities
    3,073       (1,010
                 
Net borrowings
    296       6,869  
Issuance (purchase) of stock
    (28     113  
  Net cash provided by financing activities
    268       6,982  
                 
Increase (decrease) in cash and cash equivalents
    (10,916     1,072  
                 
Beginning of period cash and cash equivalents
    15,745       1,549  
                 
End of period cash and cash equivalents
  $ 4,829     $ 2,621  
 
 
 
 


 

The following information was filed by All American Group Inc on Wednesday, October 28, 2009 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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