INDUSTRY NEWS
March 1997

Late Breaking News . . .

Trailer Life's Parent Company To Buy Camping World

Ventura, Calif. - - Officials for Affinity Group, Inc., and Camping World, Inc., today announced an agreement to combine their organizations and enter into a business partnership. Affinity Group is a membership management and publishing company which serves as parent company to TL Enterprises, The Good Sam Club, Woodall's Publications, Coast to Coast, and others. Camping World is the world's largest retailer of recreation vehicle (RV) supplies and accessories.

Marketing to common audiences within the RV industry, both companies expect this formal alliance to realize great synergies in delivering timely information and quality products and services to their customers.

Working together is not a new concept for these organizations. Over the past 25 years Affinity Group and Camping World have teamed up in partnership programs with RV manufacturers, dealers and campgrounds, and this will continue. "Through our many shared projects we developed a tremendous respect for Camping World's leadership and company philosophy," said Affinity Group President and CEO Joe McAdams. "As we reviewed those joint successes, it was a natural evolution for us to combine our resources. Adding Camping World's catalog and store customers to our distribution base of more than 2 million members and readers allows us to communicate with more people, enhance benefits to our clubs and lower costs. Our goal is simple - - to increase the quality of the RV experience for everyone involved."

Camping World, with its catalog operation and 27 retail locations nationwide, will operate autonomously, as do Affinity Group's other partner companies. "We're bringing together the best of both worlds," said Camping World President Thomas A. "Tad" Donnelly. "Camping World will continue to fulfill its own objectives. But, together with Affinity Group, we can also generate greater awareness for the RV industry, its manufacturers, dealers and campgrounds. It's definitely a relationship formed on a solid history to build an even greater future."

Although specific plans are not available at this time, the combined organization will be developing and moving forward on various projects to enhance customer benefits and enjoyment of the RV experience.

Also, on the business news wires on March 3, 1997, was the following news article:

VENTURA, Calif. - - Affinity Group Inc. agreed to acquire Camping World Inc., a Bowling Green, Ky., retailer of specialized merchandise and services for recreational vehicle owners; and Ehlert Publishing Inc., a Minnetonka, Minn., publisher of sports and recreation magazines, for a total of about $139 million.

In a press release Monday, Affinity Group said it will finance the acquisitions with a capital contribution from its parent company, Affinity Holding Inc., borrowings under Affinity Group Holding's bank credit facility and miscellaneous other debt.

Affinity Group Inc. is a direct marketing organization.

March Industry News

Kelly Rose New RVIA Chairman

Bill Prinz resigned the post of RVIA chairman after accepting a position with Jayco, Inc., whose chairman Wilbur Bontrager serves on the RVIA board. RVIA Bylaws preclude employees from the same company serving on the board of directors simultaneously.

Kelly Rose, chairman of Starcraft Corp., has been elected to succeed Prinz as chairman of RVIA's board of directors for 1997.

"I'm enthused about becoming RVIA's chairman, and I'm committed to doing my absolute best for the association and the industry," Rose said. "All the chairmen who served before me helped build a strong, successful organization. My focus is to continue that tradition by keeping the association on course."

Rose has served on the board since 1993 and was elected in 1994 to RVIA's executive committee, where he has served as secretary, second vice chairman and first vice chairman. He has been chairman of the board and chief executive officer of Starcraft Automotive since 1991.

Thetford Completes Acquisition of Norcold

Thetford Corporation has announced it has executed a definitive agreement with Aloca for the purchase of Norcold, a primary supplier of refrigerators to the same markets. The purchase price was not disclosed. Norcold becomes a subsidiary of Thetford.

John Arlen, president and chief executive officer of Thetford, said, "The joining of these two companies, both leaders in their markets, means an exceptional opportunity for growth because of the synergism created through the new resources that will be available. Thetford has been dedicated to providing the best quality sanitation products to the RV market worldwide since it was founded in 1963. This move is an expression of our dedication to that market. Norcold is an excellent strategic fit with Thetford because of its highly regarded line of refrigeration products and its extensive customer base."

As a separate but important part of the acquisition, Thetford will also acquire Arctek, a manufacturing unit of Alcoa that supplies state-of-the-art absorption cooling units to Norcold. Located in Gettysburg, OH, Arctek will become part of Norcold and continue to design and build cooling units for use in Norcold products.

"We have discussed the joining of the two companies for several months," Arlen said. "The move is a very good one for both businesses because of the complementary fit of each company's products and markets."

Arlen said he does not expect significant changes in the overall employment levels of Thetford and Norcold.

Fleetwood Promotes Nelson Potter and Paul Bingham

Fleetwood Enterprises, Inc., announced the promotions of two long-time executives: Nelson W. Potter and Paul M. Bingham.

According to Fleetwood president Glenn Kummer, Potter has been appointed executive vice president/operations, with specific responsibility for the housing group, the recreational vehicle group, the supply subsidiaries and the company's administrative and human resource functions. Bingham was promoted to senior vice president/Finance, where he will continue to have responsibility for the company's finance, accounting and treasury operations. Both promotions are effective immediately.

Reporting to Potter will be Elden L. Smith, senior vice president of the recreational vehicle group; Jon A. Nord, senior vice president of the housing group; Larry L. Mace, vice president of the supply subsidiaries; and Robert W. Graham, vice president/administration and human resources.

Thor Industries Announces Record Sales for Quarter, Six Months

Thor Industries Inc. announced record preliminary sales for the quarter and six months ended January 31, 1997.

Sales for the quarter were $123.4 million, up 3% from $119.8 million last year. Sales in the six months were $273.9 million, up from $271.3 million last year.

Bus sales in the quarter surged 44% to $34.7 million, up from $24.1 million last year and were $67.6 million in the half, up 33% from $50.8 million last year.

Recreational vehicle sales in the quarter were $88.7 million compared with $95.7 million last year and $206.3 million in the half versus $220.5 million last year.

Reese Opens New Facility in Goshen, Indiana

Reese Products holds a grand opening and ribbon cutting ceremony for its new Goshen (IN) facility this month (March 12). The new Goshen facility, located at 100 College Avenue, will create approximately forty-five new jobs in the area. The Goshen facility will cover approximately 180,000 square feet and will serve as our main customer service, warehousing and distribution facility as well as manufacturing plant for the new Reese BackPacker utility trailer product line.

Correction -- Coast Order Desk Numbers

In our story last month on Coast's Dealer Specials running in RV News and new "Sale Tag" program for dealers, we published a wrong telephone number. The correct numbers for contacting Coast's order desk for more information are: 1 -800-495-5858 (or 1-800-361- 5227 for Coast's French Canadian order desk in Quebec.)

StagParkway Donates $25,000 to Go RVing at Reno Roundup '97

Stagparkway, Inc., started out the new year with the highest number of show attendees ever. The company reported nearly 500 RV retailers attended Reno Roundup '97, with booth space totally sold out.

At the general meeting before the show, Stan Sunshine, president and CEO presented a check to the Go RVing market expansion program at the Pacesetter level in the amount of $25,000 as a commitment to the national expansion of the RV lifestyle. Also Stagparkway gave away Go RVing dealer promotion packages to ten RV retailers.

Mike McKay. vice president of sales and marketing said, "This was the first time we held a show in the West, and it was a huge success. Retailers from across die country purchased RV parts and accessories and received hands on education from over 100 RV aftermarket suppliers during our two day show extravaganza."

RV retailers were treated to an array of prize winning programs including Stagparkway's money grab booth, Automatic Equipment's Trip for Two to Hawaii, Reese's casino chips, Camco's Caribbean Cruise and Wheel Masters' slot machine tournament. RV retailers were introduced to new product innovations and industry changes at seminars held by leading suppliers of RV aftermarket products.

In addition, Stagparkway introduced several new programs to RV retailers including its new mailing house service.

RV America Sets Two-Day Record for Web Site Sales

February 4 and 5 were days to remember for RV America On Line. During that two days a total of 51 web sites were sold, all to U.S. and Canadian RV and aftermarket dealers, a record for RV America. The majority of the sites were sold during the 1997 Coast Show in Las Vegas. The reason for the influx of RV dealers to establish web sites was Coast Distribution's announcement that it would have an electronic catalog on line by May 1 and would contribute $100 of the normal $250 set up charge for dealers who signed up for a web site on RV America during the Coast Dealer Advantage Buying Show.

Dan Holt, CEO, Web Site Management, Inc., the company that operates RV America On Line, an Internet hosting service for companies in the RV industry, said, "It was phenomenal. Dealers lined up at the booth when the show opened and it was nonstop for two days. I've been doing RV trade shows for over 20 years and I've never worked this hard. We couldn't accommodate all the dealers who wanted to participate in the program."

Since many dealers could not get close enough to the booth to sign up, Tim McGuire, CEO, Coast Distribution, extended the offer to pay $100 of the setup fee until the end of February and as a result, dealer sign-ups for web sites continue to grow.

The electronic catalog will be maintained by Coast Distribution, but consumers will only be able to access the catalog through an RV dealer's web site, and only dealers whose web sites are hosted by RV America are being offered the service.

Coast's 1997 Dealer Advantage Buying Show Successful

Although no specific sales numbers were available at presstime, officials at the Coast Distribution System said they pleasantly surprised by the strong order count at the 1997 Dealer Advantage Buying Show. According to Coast, both Coast and the exhibiting manufacturers were extremely pleased with customer attendance and sales activity in their booths. Jeff Wannamaker, Coast president, reported that the attending dealers were very positive and had come to buy in anticipation of a break-out year in 1997.

Tim McGuire, Coast CEO, with his entire sales force standing behind him on stage, gave an upbeat and positive keynote address on Coast's program for dealer support in 1997 and beyond. The plan includes consumer-oriented advertising in the major RV publications; an affordable, yet effective direct mail program; and an internet site development and sales program for dealers.

With walk-in registrations yet to be calculated, attendance at this year's Coast show included nearly 600 U.S., 182 Canadian, and 245 European accounts as well as a number of customers from Australia and Mexico. There were 155 exhibitors occupying 55,000 square feet of exhibit space and a total attendance of over 3,500 people.

Tentative dates for the 1998 Dealer Advantage Buying Show have been reserved for February 9th, 10th and 11th in Las Vegas.

JR Products Under New Management

John D. Roba, president and founder of JR Products, has decided to step down as president of that company, and has transferred ownership to his children. Founded In 1968, JR Products started by selling small products of various kinds to the RV industry. For several years Roba's children have been handling the day-to-day management of the company, but now the company is theirs. A new corporation was formed as of January 1, 1997, and Douglas Roba was elected president. Sally (Roba) Moore is vice president, and Susan (Roba) Kauhl, is secretary-treasurer.

John said "Needless to say as a parent, I am very proud to have had the family take over the business and continue what I started many years ago. As for me, I will continue to pursue my first love and that is my manufacturers' agency business. I'm looking forward to many more years in the RV/MH industries."

SMC Corporation Reports Fourth Quarter Loss From Restructuring Costs

SMC Corp. posted its results for the fourth quarter and full year of 1996. For the fourth quarter ended December 31, 1996, net sales rose 28% to $53.0 million from the $41.4 million reported for the same period of 1995. Fourth quarter unit sales increased 31% to 506 units up from 386 in the same period last year. The company recorded a loss of $(1.1) million for the fourth quarter 1996, compared to 1995's fourth quarter net income of $1.2 million. The current quarter results included restructuring charges of $2.4 million related to the closure of the company's Minneapolis, KS, facility. 1996 fourth quarter loss per share was $(0.17) on 6.7 million shares outstanding, compared to 1995's fourth quarter earnings per share of $0.18 on 6.6 million shares. The restructuring charge reduced current period earnings by $0.22 per share.

For the year ended December 31, 1996, revenues were a record $200.8 million, up 36% over 1995 revenues from the same period of $148.2 million. 1996 year-to-date income was $3.6 million, down 16% from 1995's pro forma income of $4.3 million for the same period. Year-to-date earnings per share were $0.54 in 1996, compared to pro forma earnings of $0.64 per share for the same period in 1995, a 16% decrease. The $2.4 million restructuring charge reduced the company's full-year results by $0.22 per share.

Mathew M. Perlot, chief executive officer of SMC Corporation, said, "Our decision to close the SMC Midwest production facility was very difficult. However, pretax operating losses during its six and a half months of operations exceeded $1.5 million. The lack of a suitable labor force was a critical factor we could not control. Competition for qualified employees was extremely high, with unemployment at 3% or less in the area." The company had previously announced the plant closure in December 1996.

Camping World's Ô97 Master Catalog Available

The 1997 master catalog containing over 1,000 products is available from Camping World, beginning in mid-April. The 248-page master catalog contains over 100 new products.

Red tag sale pricing will also be available for a limited time on hundreds of popular items.

New to the catalog is an eight-page Camper Accessory Section for the beginning RVer. This section features products and helpful information for the newcomer to the RV lifestyle.

Annually, the master catalog is distributed to 2 million customers worldwide throughout the year. Regular prices in the master catalog are good through August 19, 1997.

Foremost Remains Strong Despite Record Catastrophic Losses

Record catastrophe losses made 1996 a challenging year for Foremost Corp of America. Despite the weather, the company still produced a profitable 97.8 percent combined loss and expense ratio for the year.

"Significant storm activity hit us early in the year and again at the end," says Richard L. Antonini, FCOA's chairman of the board, president and CEO. "Though catastrophes challenged us again this year, we have proved we're up to the task."

Over the past four years, FCOA has averaged 16 percent return on equity, in spite of record catastrophe losses.

Stagparkway Expands to the Northwest

Stagparkway began shipping from its tenth distribution center in Portland, OR, in February. A grand opening celebration will be held this month at the new facility. Special product promotions and marketing programs will be given to all RV retailers who attend the grand opening celebration. RV retailers will be able to see the new facility and meet Dave Volheim, new regional sales manager for the northwest and Mike Hennington, operations manager.

Monaco Coach Reports Fourth Quarter and Year End 1996 Results

Monaco Coach Corp. released its fourth quarter earnings, reporting operating income up 175.8 percent as compared to the same period of 1995, on a 198.5 percent increase in sales. Monaco also reported 1996 year end results, stating operating income grew 64.5 percent compared with 1995, on a 158.2 percent increase in sales.

John W. Nepute, Monaco chief financial officer, said, "1996 was an important year in the history of our company, and we're very pleased with the results. Were happy to announce record earnings per share of $1.48 on a proforma basis, on sales of $365.6 million. The integration of Holiday Rambler is right on target with our expectations. In Indiana, construction continues on our new motorhome production facility. Harsh weather conditions in the midwest have put the project approximately two weeks behind schedule, but we still expect completion this summer." The new facility will produce both Holiday Rambler and Monaco motorhomes, and when complete will raise motorized production capacity in Indiana from 12 to 25 units per day.

For the three months ended December 28, 1996, net sales for Monaco Coach Corporation totaled $94.9 million. Gross profit and operating income were $13.2 million and $4.8 million respectively. Net income and earnings per share were $2.4 million and 51 cents per share, respectively. Gross margin for the combined business was 14.0 percent for the quarter.

For the twelve months ended December 28, 1996, net sales for Monaco Coach, including its Holiday Rambler Division (from March 4, 1996), totaled $365.6 million. Proforma gross profit and operating income for this period were $49.5 million and $15.5 million. Proforma net income and earnings per share were $6.9 million and $1.48.

Monaco sold 709 motorized and 662 towable units in the fourth quarter. For the twelve months ended December 28, 1996, Monaco sold 2,733 motorized and 1,977 towable units.

Marathon Homes Honors Top Dealers

Marathon Homes Corp. announces the recipients of their Sales Leader Awards for 1996. The dealerships receiving the awards for 1996 are P.A. Trailer Sales, Raymond, NH; Cunningham RV Sales, Kasson, MN; and Appleman RV Center, New Braunfels, TX.

According to Marathon, the awards are presented to the dealerships that are the most active in stocking and promoting Marathon and Olympian RVs and have the best records for customer satisfaction.

John Roba & Associates Host Factory -Trained Dealer Seminars

John Roba & Associates will be hosting their 18th Annual Factory-trained Dealer Seminars throughout the northeast March 11 - March 19,1997 and in the midwest March 10 - March 13,1997.

Distributors and dealers will have the opportunity to work with a factory representative on installation, trouble shooting, sales and service,

The northeast seminar will include Blue Ox Towing Systems, Pro Guard Coatings, Tekonsha Towing Systems and Thin Lite Corporation.

The midwest seminar will include Maxxair Corporation, Pro Guard Coatings and Tekonsha Towing Systems.

The seminar is free, but advance registration is required. For more information, call (716) 633-7565.

U. S. Senator Launches Major Recreation Initiative

U. S. Senator Frank Murkowski (R-AK), chairman of the Senate Energy and Natural Resources Committee, has announced a new "Americans Outdoors Initiative" to improve the nation's outdoor recreation resources, facilities and services. Unveiled in early January, this ambitious initiative will search for creative ways to accomplish three major goals: reinvigorating management of America's public lands; improving the experiences of visitors to federal recreation sites; and improving access to recreation opportunities, particularly near urban centers.

Derrick Crandall, president of the American Recreation Coalition (ARC), said, ÔWe are very excited to see Senator Murkowski so enthusiastic about developing a proactive recreation agenda. We in the recreation community are faced with a number of tremendous challenges, not only those related to the nation's deteriorating recreation infrastructure, especially on our public lands, but also those linked to declining interest and participation in traditional outdoor activities among America's children. Leading the effort to find creative, effective ways to meet those challenges as Senator Murkowski is doing - is a real service to the people of this country."

Country Coach Pays $820,000 in Bonuses During 1996

Country Coach, Inc., continues distribution of bonus monies to 350 qualifying employees as a result of meeting sales and production goals in the fourth quarter. This latest payout, the fourth bonus awarded in 1996, brings total monies paid out for the year to $820,000 in profit-sharing bonuses. The 1996 payout is the largest in company history equating to 10.5% of employees' annual salaries. This is the sixth straight year Country Coach has surpassed previous years in sales and profit.

Lazy Days Presented With "Outstanding Mixed Use Retail Development" Award

Lazy Days RV Super Center was presented with the ÔOutstanding Mixed Use Retail Development' award by the National Association of Office and Industrial Properties. The award was presented by NAOIP president, Debra Koehler during the 1996 ÔBest of the Best' awards program held in December.

The design/build project, submitted by Randy Simmons, president and CEO of R.R. Simmons Construction Corporation, is based on the concept of a totally integrated shopping experience for the RV enthusiast encompassing more than 200,000 square feet of facilities on a 100 acre parcel.

Wheel Masters appoints Hal Funk G.M.

Hal Funk has been appointed general manager of Wheel Masters, Reno, NV. Funk will have the responsibility of day-to-day operations allowing Ray Hunt, president, to focus on the development of new markets and products. Funk is widely known in the RV Industry, having served as purchasing agent and senior vice president at Coast Distribution.

IMHA/RVIC Presents Annual Awards

The Indiana Manufactured Housing Associa-tion/Recreation Vehicle Indiana Council (IMHA/ RVIC) recognized several of its members at a recent Awards Banquet in South Bend.

The Citizen of the Year Award is given to a member who has rendered the greatest service to the Association during the year. Two people received the Citizen of the Year Award this year. Cathy Miller, president and owner of Advertising Techniques, Elkhart, IN, and Pat Cross, senior sales manager for Redman Homes, Topeka, IN.

The President's Award is presented to a board member who has performed above and beyond the call of duty during the past year. This year's award was presented to Dr. Harry Scott, owner/operator of Shipshewana Campground, Shipshewana, IN. Dr. Scott served as vice president of the IMHA/RVIC board of governors and on the Recreation Vehicle Council in 1996.

The Fred Haile Distinguished Supplier Award is presented to a member of the Suppliers Division, who has served the association well beyond the call of duty. This year's award was presented to Tony Ceglio, Alcoa Building Products.

A special honorary lifetime member award was presented posthumously to Dean Replogle, and accepted by his widow Joan and his daughter Karla. Dean was recognized for all of the unselfish years he dedicated to the industry, serving on national and state committees. Before his death in February, Dean had just retired from Kevco, Inc.

Lazy Days Captures 31 Percent of Florida Class A Market

Another example of the tremendous growth of Lazy Days RV Super Center is the recent release by Statistical Surveys, Inc. of Florida's Top 45 Dealers ranking for the month of September. The survey lists Lazy Days as the number one Class A dealer with 31% of the new Class A motorhomes delivered throughout the state for the month of September. There are approximately 265 dealers in Florida and when the statistics are examined, Lazy Days is the only dealer in the top ten rankings with double-digit deliveries.

It also reports that 12.6% of the new Fifth Wheels that were registered in Florida in September were delivered by Lazy Days.

Lazy Days breaks yet another all-time record by posting the largest RV sales and delivery month in the twenty year history of Lazy Days. November will be categorized as the month Lazy Days delivered 62 units totaling over $4,000,000 in sales in a single day.

Since moving into the new, state-of-the-industry complex on I-4, Lazy Days continues to post both sales and delivery records month after month.

Keller Marine & RV Hosts a Caribbean Cruise

Keller Marine & RV hosted a cruise for their top dealers in December, aboard the Royal Caribbean, "Majesty of the Seas." The cruise ship visited Labadee, Haiti; Ocho Rios, Jamaica; Georgetown, Grand Cayman, Playa Del Carmen, Mexico; & Cozumel, Mexico,

Vendor representatives from Demco, Camco, Reese and Carefree were also onboard.

Lori Morrow, who coordinated the trip for Keller, said, "The cruise was our way of saying, thank you to our loyal customers, who we value so highly."

Holiday RV Superstores Hires Adviser -- May Sell company

Holiday RV Superstores, Inc., said it retained investment banking firm Prudential Securities, Inc., to assist in exploring strategic alternatives to enhance shareholder value, including possible acquisitions, mergers or the sale of the company.

The board of directors believes the market value reflected in the current price of the stock does not reflect the intrinsic value of the company in light of continued strong financial results and position.

Earlier, Holiday reported operating income decreased slightly to $3.27 million from $3.40 in the prior year. Net income decreased to $1,332,000 in fiscal 1996 or $0.18 per common share, from $1,459,000 or $0.20 per common share.

The book value as of Fiscal 96 year end exceeded $14.7 million with $5.6 million in cash.

The company said it achieved record revenue for the year, $75 million in fiscal 96, compared to $70 million in fiscal 95.

Newton Kindlund, president and CEO, said, "This was the best revenue year in our 19 year history. Our expansion strategy of moving west with new dealerships paid off as our Las Cruces, NM dealership had an outstanding first year of operations."

New Sales Manager's Workshop

The Spader Companies, in conjunction with Grayson Schwepfinger, have announced a new educational opportunity to be held in Sioux Falls, April 28-May 2, 1997. They will be presenting a 4 1/2 day Sales Manager seminar primarily conducted by Schwepfinger and assisted by Duane and John Spader. This seminar is designed to help sales managers in the hiring, training and motivation of sales people.

NRVPI Schedules 1997 Spring Session

The National RV Park Institute, a training school in the basics of RV park management and operations, will hold classes this spring April 6 - 11, 1997 at Pismo Coast Village in Pismo Beach, CA.

Since 1991, when the institute began offering classes in park management and maintenance, more than 180 students have attended the sessions.

"NRVPI is always scheduled at an operating RV park to give students a practical approach as well as the opportunity to watch an actual park in operation," said Judy Miller, coordinator of the institute. "Students not only study and learn together, but they eat three meals a day together. This allows for a constant learning experience."

The intensive week-long session will cover a variety of park management topics including the importance of customer service, inspection of facilities, RV park development, emergency planning, computer operations, front desk management, budgeting, marketing and promotion, legal aspects of park management and operations, economic analysis, restroom and pool maintenance and much more. The classes are taught by experts in their field and provide a true "hands-on" learning experience.

The course runs from 5:00 p.m. on Sunday through lunch on Friday. The fees are $625 per person which includes 40 hours of classes, 15 meals and a binder jam-packed with practical information for students to take home. Scholarships are also available from Evergreen Insurance and Woodall Publishing Company. Fees do not included lodging.

For more information on the institute or its courses, contact Tug or Judy Miller at Executive Services Group, P.O. Box 5578, Auburn, CA. 95604, 916/823-1076 (phone), 916/823-6331 (fax).

Coachmen Announces Record Results for '96

Coachmen Industries, Inc., (NYSE-COA) has announced record sales and profits for both the fourth quarter and year ended December 31, 1996.

For the fourth quarter, sales increased 9.6% to a record $ 136,874,816 from the $124,925,621 reported for the fourth quarter of 1995. The record sales for the 12 months were $606,474,128, a 17.6% increase over 1995's sales of $515,862,065.

Net Income for the fourth quarter was $6,361,571, a 16.7% increase compared with the $5,450,424 earned for the fourth quarter of 1995. Earnings per share for the fourth quarter were 40 cents compared with last year's 37 cents. For the twelve months, $29,630,813 was earned, an increase of 69% over the $17,549,400 earned for last year's twelve months. Earnings per share for the year were $1.94 compared with $ 1.18 earned in 1995. Net income for the fourth quarter and full year was a record for both periods.

The company said the year finished on a positive note despite the unusually severe winter weather that occurred over a substantial portion of the country. The recreational vehicle group experienced a fourth quarter sales increase of 9%, while the housing group had an increase of 11%.

John Crean: Clinton Administration Starting Second Term on Right Foot

"I think they're starting his second term off on the right foot." Coming for Fleetwood's CEO, John Crean, who is a staunch Republican, you know there has to be more to the story -- and there is. That was Crean's reaction upon learning members of the Clinton administration would be using a Fleetwood motorhome during the recent inaugural weekend events.

It all started innocently enough Southwind owner Steve Marshall dropped his motorhome off at Annapolis RV - a local service and rental facility. Marshall returned home expecting a call when the regular maintenance check-up was complete. What he got instead was a request to allow White House staff - and the President, if necessary - to use his coach as a "home-away-from-home" at inaugural weekend events on the Mall in Washington, D.C.

"I was a little skeptical at first, but the owner of Annapolis RV assured me it was a legitimate request," Marshall said. "Apparently the motor homes he had available were not as well-equipped as mine, so he figured it was worth a call to see if I would give mine up for a few days.

Marshall suffered from anxiety pangs as he handed the keys to event officials the Thursday before the inauguration. "They had bomb-sniffing dogs and gray suits and all that," he said, "but I was still wondering if I was crazy to do this - even though it was the President."

Fleetwood Enterprises advertising administrator, Andy Klein, said he thought it was "a lark" when called by Marshall, who presumed the company might like to know its product was being used for the inauguration.

"It's not a call we get every day," Klein said. "But, we are the largest manufacturer of RVs in the world - and I hope the President has an opportunity to use one of our motor coaches in a more relaxing environment, maybe his next family vacation."

Fleetwood Announces Preliminary Third Quarter Sales

Fleetwood Enterprises, Inc. , announced preliminary sales for its third quarter ended January 26, 1997.

Consolidated sales for the third quarter were approximately $627 million, up less than 1% from last year's $625.4 million. Prior year revenues have been restated to exclude finance revenues of $12.9 million from Fleetwood Credit Corp. which was sold in May 1996.

For the first nine months of fiscal 1997, consolidated sales rose about 4% to $2.13 billion compared to $2.04 billion during the same period last year. Revenues for the comparable prior year period have been restated to exclude $38.6 million of finance revenues from Fleetwood Credit Corp.

The higher volume in the quarter just ended was driven by improved sales of recreational vehicles which rose 5% to nearly $294 million. Last year's third quarter RV revenues included sales of $11.5 million from a European operation which was sold in May 1996. Excluding Europe from the comparison, RV sales grew 10% for the period. All three RV divisions posted sales gains in the quarter with the motorhome division accounting for most of the RV increase. Motorhome revenues reached a third quarter record of $176 million, up 13% from last year's January quarter. Travel trailer sales of $96 million were 3% ahead of last year's comparable period. The company's folding trailer division generated record third quarter sales of almost $22 million, a 15% improvement over the prior year period.

Recreational vehicle sales for the first nine months of fiscal 1997 increased 9% to approximately $1.0 billion compared to $921.2 million a year ago. RV sales for the current nine months grew 14% after excluding from last year's revenues $42.5 million from the sold European operation. The rebound in motorhome sales, which increased 27% to a record $616 million, accounted for all of the RV improvement. Travel trailer sales were off about 1% to $323 million and folding trailers declined 4% to $61 million.

President Glenn Kummer commented on the RV group performance saying, "Continuing growth in sales of Fleetwood's popular Class A motor homes was the primary factor leading to the favorable RV results. It is very encouraging to see how well Fleetwood's 1997 RV models are doing in the marketplace. In fact, with the strength of our products, we believe we could have recorded even higher sales this quarter had it not been for the effect of adverse weather on retail sales activity."

National RV Achieves Record 1996 Results

National RV Holdings. Inc., said that it achieved record sales and earnings for the quarter and the 12 months ended Dec. 31, 1996.

For the fourth quarter, net sales increased 78.7% to $42.1 million from $23.6 million for the fourth quarter of 1995. Fourth-quarter net income more than tripled to $1.6 million, or 27 cents per fully diluted share, from $0.5 million, or 10 cents per fully diluted share, in the comparable quarter last year.

For the year ended Dec. 31, 1996, net sales increased 53.4% to $137.1 million from $89.4 million last year. Net income in 1996 nearly doubled to $6.6 million, or $1.25 per fully diluted share, from $3.6 million, or 75 cents per fully diluted share, in 1995.

Wayne M. Mertes, National R.V.'s president and chief executive officer, stated: "We are pleased to have achieved record results for the fourth quarter and full year. National's Class A motorhome market share continues to rise and currently stands at a record 6.1%.

Organizations Team up on Great Outdoors Week Activities

Plans are well under way for another action-packed Great Outdoors Week - June 9-13, 1997 - the annual showcase for outdoor recreation in Washington D.C. that is coordinated by the American Recreation Coalition (ARC). According to Derrick Crandall, ARC president, the Week will include a variety of informative, issue-oriented and entertaining activities, sponsored by a diverse group of recreation-related organizations. He said, "ARC will be holding its annual members meeting, a recreation issues briefing, and a Recreation Exchange luncheon, in addition to its Great Outdoors Award Celebration, which features the presentation of the prestigious Sheldon Coleman Great Outdoors Award."

ARC is also arranging special briefings on national recreation lakes, scenic byways and recreation opportunities. In addition, The Recreation Roundtable is working with a group of federal agencies to put together the Partners Outdoors Fair Ô97, the third Capitol Hill exhibition of outstanding examples of private/public partnerships that enhance recreational opportunities.

Adding to the focus on recreation, a number of other organizations have scheduled activities around the Week. RVIA's "Committee Week" for RV industry leaders coincides with Great Outdoors Week and the association will sponsor a VIP reception for members and other supporters of Great Outdoors Week activities.

"Great Outdoors Week presents tremendous opportunities to increase the visibility - and clout - of the recreation community," Crandall said. "We're encouraging everyone in the recreation community to get involved now by signing up as one of the week's supporters. All they have to do is contact the ARC office at (202) 682-9530 for information on sponsorship packages. We know they won't be disappointed!"

Fleetwood Selects Agency For Investor Relations, Corporate Communications

Fleetwood Enterprises, Inc. , announced the appointment of Allen & Caron, Inc/South Coast Communications Group as its corporate, investor and financial relations agency and advisor.

Fleetwood financial vice president Paul M. Bingham said that Allen & Caron was selected after an in-depth review of "highly credentialed agencies around the country."

Attendance Up at Nation's RV Retail Shows

If attendance and sales at early-in-the-year RV shows are indicative of the year to come then 1997 is shaping up as another good year.

Joseph Gonsalves, general manager of Northeast Promotions, which sponsors the Northeast RV & Camping Show held in Hartford, CT, in January, said, "Attendance was up 30 percent over the past two years. All RV sales were strong, but motorhomes were way up, especially Class A's."

Jillian Costic, general manager of Three Rivers Promotions, which conducts the Pittsburgh RV Show also in January, said, "Our attendance was up 35 percent. Our dealers are very excited about the interest and sales they achieved."

Sales were strong in all market segments, according to Costic.

"What was really encouraging was the number of showgoers who said they plan to buy," said Jim McLaughlin, president of McLaughlin Associates. At their New Jersey Trailer and Camping Show in January, attendance matched the previous year's high level. "More than 51 percent of attendees said that they plan to buy a new RV," he said. Of those who plan to buy, 46 percent will be first time owners, he added, which bodes well for the market's expansion.

The Great Lakes RV Association's show, held in Cleveland in January, opened with a 40 percent increase in attendance on the first day before slowing due to "dangerously low temperatures," according to executive director Tracey Egan Bradnan.

The scene was much the same in Tampa at the January 15-19 Florida RV Supershow, which opened with a first day 15 percent boost in attendance. Despite the colder-than-normal weather for sunny Florida, "we did quite well and attendance overall was up a little over last year," according to David Kelly, marketing director for the sponsoring Florida RV Trade Association.