Settlement Helps Coachmen Make Q1 Profit
Former RV manufacturer Coachmen Industries Inc. reported a loss from continuing operations for the first quarter ending March 31 but a profit when discontinued operations were factored in.
Net sales from continuing operations for the first quarter were $11.3 million compared to $30.8 million reported for the same period in 2008. Gross profit for the quarter decreased to a loss of $2.1 million, from a profit of $5.5 million for the first quarter of 2008. The company reported a net loss from continuing operations of $6.1 million versus a net profit from continuing operations of $1.3 million in the first quarter of 2008.
Net income, including discontinued operations, was $8.3 million in the first quarter of 2009, versus a net profit of $1.3 million in the first quarter of 2008.
Rick Lavers, president and CEO of the Elkhart, Ind.-based manufacturer of systems-built housing and specialty vehicles, explained that the company was able to post a first-quarter profit ”due to the booking of our settlement of the Kemlite RV sidewall matter with Crane Composites.”
The company also established a new financing partnership with Lake City Bank based in Warsaw, Ind. The settlement and new credit facility “are significant steps toward resolving the severe liquidity problems which have plagued the company since last winter, when Coachmen’s then-principal lender terminated our credit facility,” Lavers said. “Nonetheless, we cannot be overly sanguine, as we have immediate cash requirements while the funds from the settlement will not be available until later next month.”
Coachmen sold its RV operations to Forest River Inc. at the end of 2008.