Fleetwood Sales Surpass $3 Billion
Mark
Fleetwood Enterprises, Inc. (NYSE: FLE) posted record
breaking preliminary sales for the fourth quarter and fiscal year ended April 26, 1998.
With both core businesses (RVs and manufactured housing) achieving record volume in fiscal
1998, the company reached the $3 billion sales mark for the first time.
Fourth quarter sales rose 13% to approximately $844
million compared to $746.4 million a year ago, reflecting solid revenue growth for both
manufactured housing and recreational vehicles. Consolidated sales for all of fiscal 1998
totaled $3.05 billion, a 6% increase over last year's $2.87 billion.
Manufactured housing revenues reached an all time high of
$376 million in the fourth quarter, 11% ahead of the $339.9 million posted in last year's
final quarter. Stronger sales in the central and eastern regions more than offset a
decline in the western region. Housing revenues for the fiscal year were up 4% to about
$1.49 billion, surpassing the previous high reached in fiscal 1996.
Recreational vehicle sales increased 16% in the fourth
quarter to a new high of $456 million. This compares with $394.8 million in the final
quarter of fiscal 1997. Motorhome sales were up 13% to about $270 million, primarily
reflecting stronger sales of upscale Class A products. Travel trailer revenues rose 20% to
$155 million, and the folding trailer division produced a 22% sales gain to $31 million.
Total RV sales for fiscal year 1998 rose 9% to a new high
of $1.52 billion, up from $1.40 billion in fiscal 1997. The company's motor home division
generated a 6% sales increase with healthy demand for Fleetwood's popular Class A products
driving sales to a record $904 million. Towable products also fared well in 1998 as both
travel trailer and folding trailer divisions achieved record sales. Travel trailer
revenues increased 11% to approximately $505 million and folding trailer sales jumped 27%
to nearly $110 million.
Coast Distribution Stock Jumps 150%
Following Report of First Quarter Profit
The Coast Distribution System (AMEX: CRV) reported
financial results for the first quarter ended March 31, 1998. That news sparked an upsurge
in the company stock price from $2 to $5 in just a couple of days. At press time, the
stock had stabalized at about $4 a share.
Coast reported revenue for the first quarter ended March
31, 1998 increased 9% to $38,364,000 from $35,205,000 for the comparable period in 1997.
The company reported net income of $607,700, or $0.12 per share, in 1998 as compared to a
net loss of $92,000, or $0.02 per share, in the first quarter of 1997.
Tim McGuire, chairman and chief executive officer of
Coast, said, "We are encouraged that our strategies have begun to yield positive
financial results. Our annual sales show in early February was an overwhelming success. We
are continuing to experience sales growth. We have increased our gross margins and reduced
our operating expenses. In light of our first quarter results, we are optimistic about our
prospects for the remainder of the year.''
Coachmen Industries Announces Record
Earnings for First Quarter; Quarterly Sales Highest in Company's History
Coachmen Industries (NYSE: COA) reported its best first
quarter earnings report ever in its 34-year history. Net income for the quarter ending
March 31, 1998 was $6,299,415, a dramatic 43% increase over last year's first quarter net
income of $4,419,034. First quarter sales were the highest of any quarter since the
company was founded in 1964. Sales for the first quarter were $175,637,459, a substantial
11% increase over last year's first quarter sales of $158,105,811.
Basic earnings per share for the quarter were 36 cents
compared to last year's 26 cents. Diluted earnings per share were 36 cents compared to 25
cents for last year's first quarter.
RVIA Successfully Exempts Motorhomes
from NHTSA's Tag Axle ABS Ruling
Following a concentrated two-year effort involving RV
manufacturers and suppliers, Ford, General Motors, other trade associations and National
Highway Traffic Safety Administration (NHTSA) officials, RVIA spearheaded a successful
appeal of a very restrictive change to the NHTSA brake system regulation.
At RVIA's urging, NHTSA issued a final ruling clarifying
and amending two issues relating to FMVSS 105, Hydraulic Brake and Electric Brake Systems.
The first allows hydraulically-braked vehicles, including motorhomes, equipped with
non-steering, non-driving tag axles to be exempted from having anti-lock brakes installed
on tag axles.
"We were successful in getting NHTSA to provide this
relief from the ABS requirements to the growing portion of the motorhome market that
utilizes tag axles," said RVIA director of Automotive
Standards Harley Holt. "The exemption was needed because current designs of
motorhomes in the higher weight ranges requiring tag axles would have been disallowed
after March 1999 with no other hope for a better solution."
The amended rule also allows hydraulically-braked
vehicles with a GVWR greater than 10,000 lbs. but less than 19,501 lbs. to be equipped
with a single ABS wheel speed sensor in the driveline to control slip at the drive axles
instead of requiring individual drive wheel sensors beginning March 1, 1999.
Additionally, hydraulically-braked motor-homes with a
GVWR greater than 19,500 lbs. but not less than 22,500 lbs. can use a single rear drive
axle wheel speed sensor until March 1, 2001. After this date, all new motorhomes must meet
the same four sensor requirement as other hydraulically-braked vehicles over 19,500 lbs.
Clay Roberts Passes Away
The staff at RV News was saddened to learn that
industry-veteran Clay Roberts passed away in May. Roberts retired recently from A. Ben
Long and Asssociates. Ben Long paid tribute to Roberts saying, "Clay Roberts was
bright, energetic, intelligent and full of fun. A very positive influence on my life!
"Those of us that Clay touched will always remember
how caring and loving this man was. He epitomized the saying 'What you see is what you
get!'
"He was understanding and sympathetic, but he had no
time for people who didn't have some idea where they wanted to go and how to get there.
"He was unique in every respect. I will miss him but
in typical Clay Roberts fashion, he left me with a smile on my face and wonderful memories
of our friendship."
Certification Governing Board Sets
Dates for National RV Technician Test Day
The RVDA/RVIA Technician Certification Governing Board
has set dates for National RV Service Technician Test Day through the year 2000.
The certification test will be administered at locations
across the country on Nov. 7, 1998; March 20, 1999; Nov. 6, 1999; and March 19, 2000. Each
of the test days falls on a Saturday.
Jim Fogdall of Ace Fogdall RV, Inc., and chairman of the
RVDA/RVIA Technician Certi-fication Governing Board, said, "We're providing more
opportunities to techs for certification testing year round -- particularly with on-demand
testing, but National Test Day is a centerpiece program that helps build interest in
certification throughout the industry. With dates set through 2000, we'll be able to
generate a greater level of awareness and excitement."
Chinook Motorhome To Set World Land
Speed Record 
Charles McGhee, vice president of sales for Chinook
Motorhomes announced that on July 23,1998 a land speed record for a motorhorne will be
attempted at the Bonneville Salt Flats in Utah. The 130 mph attempt will be sanctioned and
officially recorded by the Utah Salt Flats Racing Association.
McGhee said, "This effort is to make the public more
aware that the RV industry has developed stable platforms, that when coupled with the
state-of-the-art engines and transmissions, can produce motorhomes that can perform at
some very remarkable standards."
McGhee claimed that the RV industry has always recognized
the Chinook Concourse as the "Sports Car of Motorhomes." He added, "By
setting the land speed record for an RV the Chinook will strengthen that recognition.
Travel Writer-Publisher Arthur Frommer
Spotlights RV America Web Site
Arthur Frommer, one of the world's best known travel
writers and publisher of travel books spotlighted the RV America On Line web site in his
daily newsletter, Vacations for Real People.
The flattering article, headlined, "RV ENTHSIASTS
Now Have a Helpful New Web Site--From Spare Parts to Tax Advice, It's All Here!"
Dan Holt, CEO of Web Site Management, Inc., the company
that produces RV America On Line® said, "This came as quite 
a
surprise to us. We started noticing a number of postings on the RV America Guest Book that
people had learned about the site from Fommer's newsletter. We did a little checking and
found the article."
The article said in part, "Out in Tempe, Ari-zona,
thanks to the wide open spaces in that part of the country, they know about Recreational
Vehicles (RVs), and they know about Web sites, too. Web Site Management, a company located
in Tempe, has put up an extensive and very helpful Web site called RV America On Line. The
address is www.rvamerica.com.
"Click on that and you'll get a big menu divided
into a "What's New?" section, a "Site Re-sources" section and an
"RV Directories" section."
The writer outlined all of the resources on RV America
and concluded by saying, "Whew! It doesn't appear that they have overlooked
anything."
Don Magary, president of Web Site Manage-ment, Inc., and
webmaster for the RV America web site, said, "This is a real honor for us. We have
never promoted the web site to places that give awards; however, we have always known that
the RV America web site is the best RV site and among the best sites on the entire
Internet because that's what our visitors keep telling us. Seriously, this kind of
recognition validates the hard work and effort we have made during the past two-and-half
years to make RV America the best resource for RV information available on the
Internet."
Winnebago Produces 300,000th Motor Home
Winnebago Industries, Inc. recently celebrated the production of the company's
300,000th motor home. Company employees are shown above with Winnebago Industries
chairman, chief executive officer and president, Bruce Hertzke (right). The 300,000th unit
- the popular 1998 Winnebago Chieftain 34WY - has set new industry standards in motor home
livability and function. The galley slideout features the new StoreMore™ slideout
system that provides spacious interior cabinets as well as large, well insulated and
laminated compartments on the exterior that slide out with the room for easy access to
stored items. In addition to the couch/galley slideout in the front of the motor home, the
new 34WY model also features a new bedroom slide for even greater versatility.
Great Lakes RV Association Elects
Officers
The Great Lakes Recreational Vehicle Association elected
its 1998-1999 officers during the annual meeting. Serving as president is Robert Moore of
Moore's Travel Trailers in North Ridgeville. Mark Eastwood of Richfield Trailer Sales was
elected vice-president, with Dan Johnson of Clay's RV Center in North Canton appointed
secretary. Sharing duties as co-treasurers are Bill Thompson of Key Bank and Bill Zabkar
of National City Bank.
The Great Lakes RV Association's purpose is to serve its
members and enhance industry growth through a wide variety of programs.
Fleetwood RV Donates $90,000 to Motor
Racing Outreach
Fleetwood RV presented a $90,000 check to Motor Racing
Outreach (MRO) on behalf of 18 Winston Cup drivers, including Fleetwood's own Dale
Jarrett, just prior to the California 500 Winston Cup race at California Speedway. Motor
Racing Outreach is a Christian organization designed to provide trauma recovery, spiritual
growth and family support of motor sports drivers, crew members and their families.
Fleetwood, who currently sponsors Dale Jarrett and has
been involved in motor sports for the last 10 years, sees MRO as a critical part of
sustaining a sense of spiritual community among drivers and race teams who are constantly
on the road.
Dick Parks, senior vice president of Fleet-wood RV, said,
"We think the work MRO does is commendable and a true inspiration for all of us in
the world of motor sports. We are proud to be a major supporter of such an outstanding
organization that provides balance to the lives of those in the racing community. "
In addition to providing financial support. Fleetwood
provides MRO two motorhomes: a Bounder and a Discovery. These motorhomes serve as an
operation base each race week offering family services such as a children's ministry and
hospitality. counseling and crisis intervention centers.
Jim Anderson Of Holiday World Of Dallas Teams Up With Texas Chapter
Of Holiday Rambler Club To Support Make-A-Wish Foundation
Jim Anderson, owner and general manager of Holiday World
of Dallas in Mesquite, TX. recently donated a resource to the Holiday Rambler RV Club that
will enable them to better serve the charity organization they are dedicated to: the
Make-A-Wish Foundation.
Two years ago, a Holiday World of Dallas employee built a
5 1/2-foot tall wooden wishing well that was intended to encourage customers, visitors and
employees to toss money into it as a contribution to the local Make-A-Wish chapter,
"It is important for businesses to give something back to their community. I was
impressed by the objective of the Make-A-Wish Foundation and knew that they had a local
chapter that we could help raise funds for," said Anderson.
The Make-A-Wish Founda-tion is a nonprofit organization
that grants a wish to a child between the ages of 2 1/2 and 18 who has been diagnosed with
a terminal medical condition. There are 80 chapters in the United States and more than 20
international affiliates. Most of this organization's funding comes from individuals, but
corporations, foundations, schools and churches also contribute money and resources to
help fulfill the wishes of these children.
R.C, Pinion, Texas State manager for the Holiday Rambler
RV Club (HRRVC) accepted the wishing well from Jim Anderson on the club's behalf. RVN
Monaco Reports Record Sales and
Earnings
Monaco Coach Corporation (Nasdaq: MCCO) reported its
first quarter 1998 results, stating operating income grew 41.3% compared with the same
period in 1997, on a 25.8% increase in sales.
For the three months ended April 4, 1998, net sales for
Monaco Coach totaled $137.2 million. Gross profit and operating income for this period
were $18.3 million and $7.6 million, respectively. Net income was $4.2 million, an
increase of 55.6% as compared to the same period in 1997. Earnings per share were 50 cents
per share on approximately 8.5 million shares outstanding, versus 38 cents per share in
the first quarter of 1997 on approximately 7.1 million shares outstanding. All earnings
per share and shares outstanding data reflect the recent 3 for 2 stock split, effective
April 16, 1998. Gross margin was 13.4% for the quarter
NationsCredit Introduces Leasing Services
NationsCredit Distribution Finance Inc., now offers
leasing services to its customer base. By taking advantage of Nations-Credit's leasing
services, manufacturers and distributors can offer attractive leasing programs to their
end user customers.
NationsCredit has two specialized leasing groups. The
first, NationsCredit Business Leasing Group serves small customers with a transaction size
between $5,000 and $250,000. The second group, NationsCredit Vendor Financial Services,
targets manufacturers and distributors in need of vendor programs to finance/lease their
equipment to mid-market customers. Transac-tion sizes range between $250,001 to $5
million.
NationsCredit's Business Leasing Group, based in
Beaver-ton, OR, offers both lease-to-own plans, as well as true leases with terms ranging
between two and five years.
