Oakwest Corp. Ltd. and its affiliates are gaining control of Firan Technology Group, a Toronto-based manufacturer of printed-circuit boards and illuminated display systems, in a $2.6-million transaction, the Winnipeg Free Press reported.
Oakwest announced Thursday (March 31) it will buy about 8.5 million shares of Firan for 31 cents each from the bankruptcy trustee for Glendale International Corp., a Canadian manufacturer of recreation vehicles that shut down early last year.
Apart from its main operations, which made Glendale- and Travelaire-branded RVs in Strathroy, Ontario, and Red Deer, Alberta, Glendale had a controlling stake in Firan — a publicly traded company that has continued to operate.
Combined with its other holdings, Oakwest and its affiliates — including Robert Beutel, a director, officer and shareholder of Oakwest — will own 51.5% of Firan, which makes components for the aerospace and defence industries.
The shares were bought in a private sale from Ernst & Young, the bankruptcy trustee.
Firan’s shares closed Thursday on the Toronto Stock Exchange at 27 cents.
Elkhart, Ind.-based Heartland Recreational Vehicles LLC has revived the exclusive Titanium cab-over front cap fashioned by now-defunct Canadian builder Glendale International Corp., incorporating the distinctive, aerodynamic design into three of its top-selling fifth-wheel lines, according to a news release.
Heartland reported that it had acquired the Titanium’s intellectual property from Glendale last summer, including patents, trademarks and industrial design rights. Oakville, Ontario-based Glendale, which filed for bankruptcy in January 2010, dominated the Canadian fifth-wheel marketplace with its Titanium lineup.
“We acquired all the patents, so we will be the only company offering this highly innovative design,” said Coley Brady, vice president of sales for Heartland. “Everyone familiar with the industry – trade and consumer – recognizes the Titanium cabover cap as one of those engineering advances that really impacts the market. We will be offering the Titanium front cap in our luxury Bighorn fifth-wheel brand along with the Road Warrior and Cyclone toy hauler lines.”
“Essentially, a 32-foot trailer offers the same living area as a 37-footer because the nose of the trailer can accommodate a bedroom and wardrobe,” Brady said. “And because there is approximately 15% less trailer to tow, it significantly cuts down on sway while improving gas mileage for the tow vehicle.”
Heartland is going into full production this month with the Bighorn Ti32, Road Warrior 30C and Cyclone 300C, all providing 37 feet of living space in a 32 ½-foot towing length, along with the Cyclone 370C offering 42 feet of living area in a 38-foot length. The two toy hauler lines will be equipped with Heartland’s Superslide, which affords 7 ½ feet of headroom, and the Bighorn model will be available with a standard royal maple wood grain or optional antique, hand-rubbed glazed pecan.
Brady said the new lines debuted to strong dealer response from Heartland’s dealer body at the recently completed National RV Trade Show in Louisville, Ky.
“We made the decision to incorporate the technology into existing lines versus coming out with a completely new brand,” Brady said. “Our dealers recognized that the Titanium models add tremendous franchise value, offering a sought-after, salable feature in brands that are already strong performers.”
Brady noted that consumers were also excited about the reprised Titanium front cap, including Tony Lane, owner of the online-based Titanium RV Owners Group. Lane, who resides in Tillonsburg, Ontario, noted that the Heartland design successfully “carries on the Glendale Titanium tradition.”
“The Heartland model will be my eighth since 2002,” Lane said. “The Titanium is the most stable trailer that I have ever towed, which is important because I put a lot of miles on my RV. The one thing I really notice is that you never get sucked in when you pass a semi. It also has a very comfortable, spacious living space.”
Shareholders and potential creditors of Canadian RV builder Glendale International Corp. have many reasons to be bewildered by recent events at the company that manufactures recreational vehicles that culminated eight days ago when it filed “a voluntary assignment in bankruptcy,” a decision the directors said “was in the best interests of the corporation’s stakeholders.”
All the directors of the company that has operations in Alberta and Ontario have resigned and Ernst & Young is the official receiver.
The bewilderment comes on at least two levels, according to the National Post.
It was a surprise.
When it reported its third-quarter results last Oct. 13 Glendale had $23.2 million in shareholders equity, no long-term debt and more than $11 million in net current assets. In its filing with E&Y, Glendale said it had a deficiency of $549,098 with its two biggest liabilities being $7.792 million for employees severance and termination pay and $1.8 million for Morneau Sobeco, a pension fund consultant. On the day before it filed, Glendale’s shares traded at 56 cents.
Last October, Glendale said its third-quarter loss had lessened, in part, because “the decline in the RV industry appears to have levelled off.” It added that “while the sale upturn is encouraging we still expect a long and slow recovery.” And last week it said “there does not appear to be a significant rebound of the Canadian RV industry.”
On the same day that Glendale filed, an analyst at Thompson Research Group said that based on dealer sentiment obtained at the 2010 Florida RV SuperShow things were changing. “We have been speaking about an inflection point for the last several months, and this show not only supports that thesis but also appears to signal the industry is in recovery mode.”
The status of a loan made by the company to senior management.
Back on Nov. 2, 2007, Glendale loaned $4.45 million to five shareholders of a private company, (MBO Co.) “as part of their debt restructuring with a Canadian chartered bank.” MBO Co. was formed in 2003 to buy a block of shares in Glendale owned by Morgan Firestone, a Glendale director. Edward Hanna, chief executive is a MBO Co. shareholder. In 2007 he earned $922,720; in 2008 he took home $616,166.
At the time it seemed like a normal loan. “The note is due on demand, bears interest at 5% and is secured by a first priority interest in the common shares of MBO company,” said a note to the 2007 annual report. At the time the shares were worth $9.05-million — or more than twice the value of the loan.
One year later the loan was described in different terms.
In its 2008 annual report, published in February 2009, this was added. The notes “are non-recourse to the shareholders of MBO Company.” By making the loan nonrecourse, it would seem Glendale didn’t have any ability to collect on the monies it had lent. Glendale gave no explanation as to why it changed the terms of the loan.
At that time, the shares were worth $652,000 — or one-seventh the value of the loan.
Some shareholders are less than impressed. David Martin, based in Kelowna, wonders why the MBO loan was not included in the list of assets filed by Glendale in the bankruptcy and if Ernst & Young will attempt to get the monies returned.
Calls to Hanna seeking a comment weren’t returned by press time.
However, high gasoline prices, a rising Canadian dollar and the lingering effects of recession have taken a toll on Glendale International, forcing the company into bankruptcy, chief executive Edward Hanna said.
Hanna said there does not appear to be a significant rebound in store for the Canadian RV industry.
“The board of directors determined that a voluntary assignment in bankruptcy was in the best interests of the corporation’s stakeholders,” he said in a statement.
The company said all of the Glendale directors have resigned, but didn’t provide details on how the bankruptcy affects its employees or customers.
Calls to Glendale’s head office were not immediately returned.
About 110 hourly workers were temporarily laid off from the Glendale plant in Strathroy when it shut down in November. Colin Cherry of the International Association of Machinists and Aerospace Workers, which represented the workers, said the laid-off employees expected to be recalled in February.
“We were going into a program to improve the workplace, getting new technology — that was in a couple of weeks’ time,” Cherry said.
“The union and the company were going into a partnership agreement, which is quite disappointing because it’s never going to materialize now.”
In Alberta, the United Steelworkers represented about 60 Glendale workers who worked at a plant in Red Deer, manufacturing Travelaire-brand RVs.
The news of Glendale’s bankruptcy came as a surprise to Nick Stewart, president of United Steelworkers Local 1-207.
“I was under the impression that Glendale was actually in a pretty good financial position,” Stewart said. “They’ve got a rather substantial cash position as well. They haven’t exactly been running on credit. It’s a bit surprising.”
However, he acknowledged Travelaire had been struggling in recent years and tried to diversify into mobile homes and other products beyond its traditional base of recreational trailers and motorhomes.
“I’m not sure how successful that’s been,” Stewart said.
The Glendale RV division had just under $9 million in sales for the first nine months of 2009 – down from about $16.6 million in the same period of 2008. Sales at the Travelaire division totalled $6 million, down from $6.7 million in the first nine months of 2008.
Glendale said in October it was debt-free and had $2.4 million in cash as of Aug. 28.
Recreation vehicle manufacturer Glendale International Corp., Oakville, Ontario, reported today (Jan. 19) that it has voluntarily filed for bankruptcy under Canadian bankruptcy laws, according to a news release.
All corporate directors have resigned and the company expects Ernst & Young Inc. to be appointed as trustee of the estate of the corporation.
“The recent economic downturn, the rising Canadian dollar and higher gas prices have had a devastating effect on the recreational vehicle industry in North America,” said Edward Hanna, chairman and CEO. “Over the past few months the corporation has undertaken an extensive internal review as well as engaged outside consultants to assist it in reviewing all available options and strategies which it could pursue to rebuild the recreational vehicle division, its primary business. However, given that there does not appear to be a significant rebound of the Canadian RV industry and the commercial structure business for the energy sector in the near term, the board of directors determined that a voluntary assignment in bankruptcy was in the best interests of the corporation’s stakeholders.”
The Canadian Press reported that Glendale has manufacturing plants in Strathroy, in southwestern Ontario, and Red Deer, in central Alberta.
According the most recent financial report issued by the company in October, the Glendale RV division had just under $9 million in sales for the first nine months of 2009 — down from about $16.6 million in the same period of 2008.
Sales at the Travelaire division were more resilient, falling to $6 million from $6.7 million in the first nine months of 2008.
In addition, Glendale is part owner of Firan Technology Group Corp., which makes printed circuit boards for the aerospace and defense industry.
Marketer of the Titanium and Travelaire RV brands among others, Glendale was founded in 1971 and at one point held a 40% share of the Canadian RV market. The company’s parent, Firan Corp., was a factor in the U.S. market in the 1990s, operating two Elkhart, Ind.-area companies — Firan Motor Coach Inc. in Elkhart and Fireside RV Inc. in Bristol.
The Toronto Stock Exchange said it has begun an expedited review to delist the company’s shares from the key stock market.
Telephone calls by RVBUSINESS.com to the company went unanswered.
Canadian RV manufacturer Glendale International Corp. reported third-quarter losses in its two operating divisions.
Net loss for the Glendale RV division for the quarter ending Aug. 31 was $1,012,000 compared to net loss of $1,417,000 for the third quarter of 2008. Year-to-date net loss was $3,095,000 compared to a loss of $1,747,000 for the same period last year.
Sales at Glendale RV were $4,273,000 in the third quarter of 2009 compared to $3,398,000 in 2008. Year-to-date sales were $8,991,000 compared to $16,581,000 for the same period in 2008. The increase in sales and decrease in net loss for the third quarter resulted from a small pick up in the RV Industry.
However, the year to date numbers continue to be impacted by the negative conditions of the North American economy.
The third-quarter net loss for Glendale’s Travelaire division was $235,000 compared to a net loss of $756,000 for the third quarter last year. The division has experienced a year-to-date loss of $1,264,000 compared to $2,343,000 for the same period in 2008. Sales at Travelaire were $2,027,000 in the current quarter compared to $1,376,000 in 2008. Year to date sales were $6,041,000 compared to $6,723,000 in 2008.
The increase in sales at Travelaire in the third quarter, compared to the same period last year, was the result of orders for commercial products received and shipped. Year-to-date sales in 2009 as compared to the same period of 2008 relate to lower activity in the resource sector and the economic factors affecting the RV Industry. The reduction in net loss in the third quarter and year to date was due to lower production and overhead costs associated with the scale back in production.
With respect to the quarter, CEO Edward Hanna, said “the loss during the quarter for the Recreational Vehicle segment was primarily the result of a significant decline in demand for our recreational vehicle and commercial products due to the unprecedented negative economic environment. The decline in the RV industry appears to have leveled off. Industry shipments through August 2009 were 47% lower than the same period of 2008 however August shipments were 5% ahead of August 2008, the first increase in more than two years.
”Glendale sales are off 35% year to date over the same period in 2008 but are up 31% for the third quarter over the third quarter 2008. While the sales upturn is encouraging we still expect a long and slow recovery. The corporation is debt free and has working capital of $11,517,000 including cash of $2,369,000 as at August 28, 2009.”
Consoidates losses for the quarter were $6,300,000 compared to $20,522,000 last year. Net loss for the third quarter of 2009 was $2,100,000, or $0.23 per share, compared to net loss of $2,231,000, or $0.24 per share, for the third quarter of 2008.
Consolidated sales year to date were $44,360,000 compared to $69,108,000 for the same period last year. Net loss was $6,588,000, or $0.71 per share, compared to $4,812,000, or $0.52 per share, for the same period in 2008.
Glendale’s recreational vehicle business is comprised of two operating divisions: Glendale Recreational Vehicles (“Glendale RV”) located in Strathroy, Ontario, and Travelaire Canada (“Travelaire”) located in Red Deer, Alberta. Glendale RV manufactures a broad range of innovative, differentiated high-quality RVs for both the US and Canadian markets and Travelaire manufactures recreational park trailers and relocatable structures for the Western Canadian market place. The corporation also has a significant equity position in Firan Technology Group Corp., a leading North American manufacturer of high technology printed circuit boards and precision illuminated display systems.
Glendale International’s common shares are listed on the Toronto Stock Exchange (“TSX”) under the symbol “GIN”. The corporation has 12,487,017 common shares outstanding.
Glendale International Corp. reported today (Sept. 2) that it has renewed its financing program with GE Commercial Distribution Finance.
This partnership enables Glendale dealers to continue to wholesale finance Glendale products, the compnay stated in a news release.
“Wholesale financing has changed industrywide,” said Terry Mullan, president of the RV operations for the Oakville, Ontario-based manufacturer. “The manufacturer now shares responsibility with the finance companies and dealers to ensure product turns and minimize aged inventory.”
The revamped 2010 Titanium model lineup includes new floorplans, décors and new construction material. Floors are now made of the advanced CosmoLite material which reduces weight significantly. The 2010 models also feature redesigned front and rear molded fiberglass caps with LED lighting.
Retail sales of the Titanium product line have been strong over the past 45 days. With dealer and factory inventories at an all-time low, Glendale is well positioned to take advantage of an improvement in the market, the company stated.
Glendale International Corp.’s RV business is comprised of two operating divisions: Glendale Recreational Vehicles located in Strathroy, Ontario, and Travelaire Canada located in Red Deer, Alberta. Glendale RV manufactures a broad range of RVs for both the U.S. and Canadian markets and Travelaire manufactures park model trailers and relocatable structures for the Western Canadian market place.
Canadian RV maker Glendale International Corp. has reported a net loss of $2.2 million for the second quarter ended May 29, compared with a net loss of $1.45 million for the second quarter of 2008.
The Oakville, Ontario-based recreational vehicle and electronics company said Monday (July 13) its sales for the quarter fell to $19 million from $26 million in the year-ago period as the company was hit hard by the recession, high fuel prices and the global credit crunch which made it hard to finance the purchase of big-ticket items such as motorized homes, according to the Winnipeg Free Press.
“The loss during the quarter for the recreational vehicle segment was primarily the result of a significant decline in demand for our recreational vehicle and commercial products due to the unprecedented negative economic environment,” said Edward Hanna, Glendale CEO.
Consolidated sales year to date were $38 million compared with $48.6 million for the same period last year, Glendale said.
Net loss for the six month period was $4.5 million compared with $2.6 million in 2008.
Glendale’s recreational vehicle business is made up of two operating divisions: Glendale Recreational Vehicles in Strathroy, Ontario, and Travelaire Canada in Red Deer, Alberta.
It also has a controlling interest in Firan Technology Group Corp., a manufacturer of high technology printed circuit boards and precision illuminated display systems.
One of the two RV-related operating divisions within Glendale International Corp. recorded a slight improvement in sales during the first quarter ending Feb. 27, the company reported today (April 8).
The Oakville, Ontario-based manufacturer of RVs and electronics reported that sales from its Travelaire division located in Red Deer, Alberta, totaled $2.8 million, up from $2.4 million a year earlier. Net loss decreased to $565,000 from $950,000 a year ago.
“The increase in sales and the reduction in net loss at Travelaire in the first quarter of 2009 as compared to the first quarter of 2008 relates to the sale of work force accommodations, mobile-office units and well-site units for the natural resource and construction industries in Western Canada,” the company explained.
“Travelaire has focused on the manufacture of these products to further diversify its manufacturing capabilities to include recreational vehicles, park models and commercial products. At the end of the fourth quarter of 2008 order backlog for production of commercial units was approximately two months, at the end of the first quarter of 2009 there were no further orders for production of commercial units at Travelaire.”
As a result of the recent significant decline in the price of crude oil, the demand for commercial products in Western Canada is uncertain, the company continued.
Meanwhile, the company’s Glendale RV division, located in Strathroy, Ontario, reported a net loss of $1.2 million for the quarter, compared to net loss of $195,000 for the first quarter of 2008. Sales were $1.4 million in the first quarter compared to $6.5 million in 2008.
The decrease in sales and profitability for the first quarter is the result of a combination of negative economic factors including fluctuations in currencies, fluctuations in the price of oil, availability of credit, and the negative conditions of the North American economy, the company stated.
With respect to the first quarter of 2009 CEO Edward Hanna indicated that “the loss during the quarter for the recreational vehicle segment was primarily the result of a significant decline in demand for our recreational vehicle and commercial products due to the unprecedented negative economic environment. We continue to rationalize costs across all divisions and are debt free with working capital of $15.5 million including cash of $4.7 million as at Feb. 27.”
Overall, the corporation reported first-quarter sales of $19 million compared to $22.6 million for the first quarter of last year and a net loss for the period of $2.3 million compared to net loss of $1.1 million a year ago.