Fleetwood Delisted, Gives Restructuring Update
The NYSE will suspend trading on shares of recreational vehicle and manufactured housing builder Fleetwood Enterprises Inc. on Jan. 5 after notifying the company that it is not in compliance with the continued listing standard.
According to a press release, NYSE requires a minimum average market capitalization of not less than $25 million over a consecutive 30-trading-day period. Fleetwood’s stock ended Monday’s trading at 11 cents per share.
Fleetwood said it is making the necessary arrangements to ensure that its common stock continues to trade through normal brokerage channels on one of the regular over-the-counter markets.
The delisting from the NYSE does not constitute a default under the Riverside, Calif.-based company’s lending arrangements and will not change Fleetwood’s filing of periodic and other reports with the Securities and Exchange Commission (SEC).
Separately, Fleetwood management restated its commitment to the next phase of an aggressive restructuring program, which is designed to return the company to at least break-even cash flow early in the next fiscal year.
The company said it plans to further streamline non-critical corporate functions, centralize certain other administrative tasks to drive efficiencies and cost savings, and strengthen operating margins through improved labor efficiencies, materials management, and improved utilization of capacity.
“While we continue to push customer-facing functions, including product development, as close to the customer as possible, we are centralizing or outsourcing many administrative functions,” said Elden L. Smith, president and CEO. “This is not only cost-effective but also strongly enhances our governance, compliance, and risk-management responsibilities. These changes, once implemented, will result in a leaner, more efficient organization, and we will be well positioned to capture pockets of growth in any of the markets in which we operate.”
Fleetwood said it will also continue to closely target the most profitable products or market segments within each of its businesses.
In addition, Fleetwood intends to join forces with its dealers in the area of their greatest need by leveraging relationships with national and local retail and floorplan lenders across the country and in all its business lines, to try to assist customers through the current crisis in the credit markets.
“Fleetwood’s market position, products, and organization stand out from its competitors in both RVs and housing,” said Elden L. Smith, president and CEO, “and we intend to leverage off our strengths. In the current environment, with tight lending and narrow profit margins, dealers and lenders need to partner with manufacturers who offer more than just a cost-competitive product.
“Thus, we intend to build on our size and national reputation by dedicating resources to help our dealers access needed financing, which we are already doing in RVs through Fleetwood Financial Services, and by continuing to provide quality products and service that leads both of our industries.