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    November 2002 Volume 28 - Number 4    

RV Industry News     


KIT Signs Non-Binding Letter of Intent to Sell RV Division

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KIT Manufacturing Company (AMEX: KIT) announced today that it has signed a non-binding Letter of Intent under which KIT's RV Division sales manager, Scott Thorpe, will acquire all of the assets of KIT's RV Division. The Letter of Intent contemplates execution of a definitive agreement by November 8, 2002. The Company will retain all assets and liabilities related to its Manufactured Housing Division and will continue its operations as a top 10 seller of manufactured homes in the western U.S.

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Under the terms of the Letter of Intent, Mr. Thorpe will pay KIT $1.75 million in cash and will assume RV Division debt and liabilities in an aggregate amount of approximately $5.5 million in exchange for all of the assets related to KIT's RV Division. The acquisition will be financed by Progressive Investment Group, based in Fountain Valley, California.

"We are very pleased to enter into this Letter of Intent for the sale of KIT's RV Division," said Dan Pocapalia, KIT Chairman and CEO. "The execution of a definitive agreement for the sale of the RV Division will allow Kit to focus on its Manufactured Homes operations, which have produced positive EBITDA for the Company in each of the past 6 years. We believe this transaction will significantly strengthen KIT's balance sheet and leave the Company better poised for future success."

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"I am very excited to continue KIT's tradition as America's value leader in manufacturing RVs," said Mr. Thorpe. "Dan Pocapalia founded KIT 58 years ago and has built a strong track record of providing dealers and consumers with innovative RV products manufactured to the highest standards. I feel privileged to be able to continue the KIT tradition."

KIT Manufacturing Company, headquartered in Long Beach, California, is a leading producer of recreational vehicles and manufactured homes. KIT manufactures RVs and manufactured homes from facilities in Caldwell, Idaho. KIT makes RVs under well known brand names such as Road Ranger, Companion, Millennium and Extreme. Additionally, KIT also constructs both singlesection and multi-section manufactured homes under brand names that include Cypress, Chateau, Sierra XL, Sunrise and Golden State. The Company sells its products through a network of more than 160 dealers in the western US and Canada and a whollyowned manufactured homes retail facility.


Coachmen’s Claire Skinner Elected RVIA Chairman of the Board

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The RVIA Board of Directors elected Coachmen Industries Chairman, CEO and president Claire Skinner to the position of RVIA Chairman of the Board during the annual election of officers at its September 14 meeting in Williamsburg, VA.

A member of RVIA's Board of Directors since 1995 and an officer since 1997, Skinner has served on numerous RVIA committees including the Public and Legislative Affairs Committee (1997 - present and current chairman), the Strategic Planning Committee (1997 - present), the Go RVing Coalition (1996-present), the Nominating Committee (1996), the Public Relations Committee (1993-1998), the Market Information Committee (1991-93) and various subcommittees and task forces.

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Skinner has been chairman of the Board, CEO and president of Coachmen Industries, Inc. since 1999, where prior to that she served as chairman of the Board and CEO, 1997-99, vice chairman and executive vice president, 1995-97, director, 1993-present, and executive vice president, 1990-97. She also served as president of Coachmen's subsidiary, Coachmen RV Company, 1987-97, and vice president and general manager of Coachmen RV Company, 1985-87. She began her career with Coachmen as vice president of advertising and public relations for Coachmen Industries, 1983-85. Skinner worked as a civil litigation attorney before joining Coachmen in 1983.

In addition to her RVIA service and tenure with Coachmen, Skinner has served on the Board of Directors for the Florida RV Trade Association (FRVTA) since 1993.

"The Board has elected a proven leader to the position of Chairman," said RVIA president Dave Humphreys. "Claire has been an active and instrumental player in many capacities within the industry and the association, and I look forward to working with her as chairman during the coming year."

The Board also elected as its officers Winnebago Industries chairman, president & CEO Bruce Hertzke as first vice chairman; Cummins Equipment/Onan Corporation director of RV sales & marketing Richard Coon as second vice chairman; Western RV president/CEO Ron Doyle as secretary; and Atwood Mobile Products Executive vice president Carl Pfalzgraf as treasurer. Officers make up the RVIA Executive Committee that also includes immediate past chairman Walt Bennett, of Thor Industries and RVIA president Dave Humphreys.

New Board Members Appointed

Appointed by the Board for one-year terms were Fleetwood senior vice president, secretary and general counsel Forrest Theobald (at-large) and Newmar president Dick Parks (towable), filling vacancies left by the recent resignation of Fleetwood's Glenn Kummer and the recent passing of Newmar's Virgil Miller. Theobald and Parks will have the option to run for re-election to those seats during the 2003 elections.
  

 
Board Approves $ll.5 Million Budget

RVIA's Board of Directors approved an $11.5 million balanced budget for fiscal year 2003 at its September 14 meeting in Williamsburg, VA.

The FY2003 budget will allow RVIA to go forward with all ongoing programs and several new ones, as well as catch up on a number of items that were deferred during the last several years when funds were very tight.

Projected increases in new RV shipments, strong exhibit space sales at both the National RV Trade Show and the California RV Show, and stable membership numbers combined to help staff present a balanced, increased budget for FY2003.

"The RVIA staff and Executive Committee worked diligently to be able to present a balanced budget to the Board that includes some new programs and projects but holds the line on membership dues," said RVIA president Dave Humphreys. "Considering the current state of the economy and other travel-related industries, we feel very fortunate that we are able to present a balanced budget."

The Executive Committee met in August and prepared a final budget which was presented to the full Board for final approval.
 

Good Sam Teams with NADAguides.com

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The Good Sam Club, the world’s largest organization of RV owners, has teamed with NADAguides.com, to offer extended RV warranties online.

The Continued Service Plan (CSP) was designed by Affinity Brokerage Inc. to provide full-service mechanical breakdown insurance for the owners of new or used motorhomes, travel trailers and tow vehicles.

CSP covers maintenance and repair costs to the components of every major RV system including the coach, engine, appliances and accessories. Additionally, it covers lodging, meals and rental car expenses during the RV repair process.

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Free CSP quotes are available by visiting the NADAguides website, www.nadaguides.com, and selecting "Recreational Vehicles." Then, choose "Free Warranty Quote" listed in the "Tip & Resource Center."

"We launched this service to give RV owners extra comfort when it comes to unexpected breakdowns – breakdowns that can break the bank if you’re not careful," said Lenny Sims, vice president of NADAguides.com.

Meanwhile, Scott Blanc, executive director of CSP, said, "This is a perfect partnership for the Good Sam Club. CSP is an ideal product specifically designed for people who enjoy the RV lifestyle."

Good Sam is a unit of Affinity Group Inc., which also is the parent of TL Enterprises Inc., publisher of RV Business.

NADAguides.com is the consumer website of N.A.D.A. Appraisal Guides, the world’s largest publisher of appraisal guides for used vehicles including automobiles, trucks, vans, RVs, boats, motorcycles, van conversions limousines and manufactured homes.


National RV Holdings, Inc. Announces Founders’ Return to Management Team

National R.V. Holdings, Inc. (NYSE: NVH) announced today the appointment of Wayne M. Mertes and Robert B. Lee as president of National R.V., Inc. and Country Coach, Inc., respectively, the Company’s two operating subsidiaries. Mr. Mertes and Mr. Lee are founders of the operating sub sidiaries and currently serve as directors of National R.V. Holdings. The company further announces the resignation of Michael Jacque, president of National R.V. Inc. and executive vice president of National R.V. Holdings, and Terry Muir, vice president of sales and marketing for the two subsidiaries, Country Coach, Inc. and National R.V., Inc.

Mr. Mertes, 65, co-founded National R.V., Inc. in 1964 and continuously served as an executive officer through July 1999, and then interim president from April 2001 through September 2001. Mr. Mertes also served as president and CEO of National R.V. Holdings from August 1993 through March 2001.

Mr. Lee, 63, founded Country Coach, Inc. in 1973 and was its chairman and CEO through July 2000. Mr. Lee also served as president and CEO of National R.V. Holdings from April 2001 through September 2001. Bob Lee, a longtime industry veteran, has served on the RVIA board for 7 years, the FMCA commercial council for 18 years and was inducted into the RV Hall of Fame in 2001.

In other management changes, Donald Fults, formerly president of Country Coach, Inc. was appointed Executive Vice President of Sales and Service for Country Coach, Inc., and Tim Jones, former sales manager for Country Coach, Inc. was re-appointed to a sales position with National R.V., Inc.
 

 
ARE Relocates to Oregon

American Recreation Equipment, Inc. (ARE), a wholesale distributor, recently moved its headquarters and warehouse from California to Tualatin, Oregon, into modern 20,000-square-foot building.

According to Don Lee, general manager, ARE moved to better serve its customers in the Northwest as well as facilitate shipping orders to customer who order on line from ARE’s catalog (www.arewholesale.com).
 

Dutchmen Manufacturing Announces Plant Expansion at Aerolite Division

Richard Florea, President of Dutchmen Manufacturing, Inc announced today that Dutchmen has acquired an additional 60,000 square feet of manufacturing space at its Syracuse, Indiana facility.

Dutchmen manufactures the Aerolite and Skamper brands of ultra lightweight travel trailers and fifth wheels in Syracuse. The new facility is located adjacent to the current Dutchmen operations in Syracuse.

Richard Florea said, "Dealer response to our new 2003 products has been tremendous. Aerolite and Skamper have experienced an increase of 73% in dealer orders and we expect the demand to remain high into next year. The new building will be used for final finish for the ultra light weight products and will allow us to increase production on our Cub and Kodiak expandable products as well as our new Aerostar and Skamper Ultra products."

Kate Crane, Product Manager for Aerolite and Skamper attributes the increase in demand to the new products, as well as innovative new features and floor plans in the 2003 models. Crane said, "We have emphasized new storage concepts in our 2003 models. Our innovative ‘Store-Mor’ cargo area is a first for this product category. It was well received by our dealers at our annual Open House and the Harrisburg show."

Florea also said, "This new facility will give us the room we need to expand on our dedication to quality built products. Plant Manager Mark Smith and Bob Ries, Quality Director, have implemented a ‘Zero Defect’ quality control process to assure our dealers that they are purchasing the best designed and best built product in the ultra light weight category."

Aerolite is the original lightweight recreational vehicle. This product category allows owners of SUV's, light trucks and mini vans to pull full size trailers without having to purchase a heavier tow vehicle. The ultra lightweights have opened a new market segment that previously was unaddressed by recreational vehicle manufacturers.
 

 
Louisville Show Sold Out

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RVIA's 40th National RV Trade Show, December 3-5 in Louisville, KY, is poised to be among the most successful in its history. Exhibit space is sold-out and attendance is expected to be extremely strong.

The National RV Show has rivaled the 2001 record of 752,000 square feet, with manufacturer exhibits totaling 82 and covering 669,500 square feet of the Kentucky Fair and Exposition Center. The show also features 297 supplier exhibits occupying 79,900 square feet of space.

National RV Show Committee Chairman John Beaver, of Thor Industries, noted the importance that the show carries for the year ahead. "This is the key opportunity for manufacturers to showcase their products to dealers nationwide and to gauge the year ahead," he said. "With the strong sales we've experienced during 2002 and the positive projections for continued growth during 2003, we expect a very successful show."

The National RV Trade Show is one of the RV industry's biggest events. Representatives are encouraged to make plans now to attend. For registration information contact RVIA at 800/336-0154, ext. 324, for the National RV Trade Show.
 

Ice Maker and Refrigerator Company Recognized as Leader

With a 75% market share, U-Line Corporation can call itself the leading manufacturer of built-in, undercounter ice making and refrigeration appliances. The family-owned company built its reputation on the introduction of the first undercounter ice maker in the residential market.

For more than four generations, U-Line has been firmly established in the marine and RV industries.

U-Line has become an industry leader because of its top-of-the-line products. The Echelon™ Series brings to the built-in, undercounter market features usually found only in high-end, full-size residential refrigeration units. The series includes two ice makers, a Combo ice maker/ refrigerator, two Wine Captain® models, two refrigerators and a refrigerator/ freezer.

Another U-Line achievement is the Origins Combo 29FF, the only built-in, undercounter, combination ice maker/ refrigerator on the market with frost-free technology. It has now been upgraded, making it even more attractive to boat and RV owners. "We are continuing to redefine the marketplace by offering the best in technology, design, performance and value," said Philip Uihlein, ULine's president and CEO. "We are proud of ULine's reputation as the industry leader."


TACO Involved InVirginia State Park Referendum

During the recently held Texas Association of Campground Owners (TACO) Board of Directors meeting it was brought to the Association’s attention that the State of Virginia will be voting on a referendum to issue $119 million in bonds for improvements in Virginia State Parks. Of this amount $76 million is earmarked for specific projects involved in visitor services including constructing new campgrounds, upgrading and expanding existing campgrounds, adding cabins throughout the state park system and adding other overnight accommodations. It is estimated this could mean 3,500 or more new RV sites and cabins.

The Virginia Campground Association and National ARVC recently attended a meeting with the Director of the Department of Conservation and Recreation, a reprentative of the Virginia Governor’s office and a paid campaign consultant – the directors and key staff of each state park and the leaders of each park’s "Friends Groups" were in attendance. These folks laid out a $3 million plan to guaranty passage of the referendum in November. The TACO Board felt this may set a dangerous precedent with regard to State Parks and the services they offer being in competition with commercial park operators. Therefore, the TACO Board voted to send the Virginia Association $500 to be used in their grassroots educational program in hopes of defeating this anti-small business legislation. TACO


Amerimax Plant Designated ISO 9002 Certified

The Amerimax Building Products, Inc., Mansfield, Texas fabrication plant was designated an ISO 9002 certified manufacturer. T.R. Arnold & Associates (Elkhart, IN) assessed and certified that Amerimax operates a quality management system in accordance and conformity with the standards specified by ISO 9002 for sheet metal fabrication, custom roll forming and distribution of building products. These standards represent an international consensus on good management practices with the aim of ensuring that the organization can repeatedly deliver the products or services that meet the customer's quality requirements. "This reaffirms Amerimax's commitment to a quality management system and continuous improvement for the benefit of its customers." said Scott Anderson, president of Amerimax Building Products.
 

 
British RV Pioneer Dies

Ralph Lee, a celebrated knight-errant of the British road, who built his own vacation trailer in 1931 and went on to pull it and its 10 successors a distance equal to 20 trips around the world, died September 18. He was 99.

In 1999 Queen Elizabeth II made Lee a member of the Order of the British Empire, an order of knighthood. His death was mourned by flags flown at half-staff at trailer parks throughout Britain.

The Times of London in 1998 called him "the spiritual founding father of British caravaning," a national pastime both beloved and belittled.

Caravan, the British term for trailer, comes from the Persian word karwan, meaning a group of desert travelers.

Lee and his wife, Muriel, made contributions to the history of recreational vehicles that included being the first British caravaners to vacation above the Arctic circle and the first from any country allowed into the Soviet Union. They crossed the English Channel 74 times with a caravan in tow.

The Lees went more than 500,000 miles – far enough to make it to the moon and back.
 

KOA Becomes Newest Member of the ARVC Business Forum

Kampgrounds of America, Inc (KOA) has pledged its commitment to the industry and its mission by becoming the newest member of the National Association of RV Parks and Campground's (ARVC) Business Forum. KOA joins the Business Forum at its top membership level, and has pledged active involvement in the work of the Forum's Board and committee structure. The membership is effective immediately.

"We are thrilled that KOA recognizes the tremendous importance of the Business Forum to the growth and promotion of the campground industry," said Linda Profaizer, ARVC President. "KOA is a major player in our industry, and their energy and ideas are sure to be a terrific asset as the Forum works to promote and expand the industry."

"The Business Forum is a great fit for KOA," said Jim Rogers, Kampgrounds of America CEO & President. "This is a very exciting time at KOA. We're developing several new products and technologies that will take campground management and customer service to the next level. We think there has never been a better time to be in the campground business, so it's only proper that the world's largest camping company be a part of such a valuable industry group."

The ARVC Business Forum is a special membership category for companies with an interest in the promotion and future of the campground industry. Its mission is to foster enhanced industry communication, cooperation and networking among interests who share a common vision for the industry. The Forum's work includes an active public relations effort, select industry research projects, and efforts to identify programs and opportunities that benefit the campground industry at large.

Other members of the Business Forum include: Affinity Group, Inc., Ron Beard Associates, Jim Calfee Insurance Agencies, Coast to Coast Resorts, Evergreen USA RRG, Leisure Resorts of America, Leisure Systems, Inc,, Mission Management Information Systems, National Home Communities, Resorts USA/ Outdoor World, TL Enterprises and Woodall Publications.

The National Association of RV Parks and Campgrounds (ARVC) represents more than 3,600 commercial RV parks and campgrounds throughout the US and Canada. The association is located in Falls Church, Virginia.

KOA was established in Billings, Montana in 1962 and is celebrating its 40th anniversary this year. KOA is privately held, and offers RV, tent, Kamping Kabins and Kottage sites at over 500 franchised campground locations and fourteen company operated properties.


Carriage Becomes Assoc. Sponsor of Nascar Winston Cup Car

Carriage Inc. of Millersburg, IN, manufacturer of Carriage, Carri-Lite, and Royals International RVs has signed to become an associate sponsor of a Nascar Winston Cup Car. The Carriage logo will be carried on Bill Davis Racing # 23 Stacker II car to be driven by Kenny Wallace. Bill Davis Racing also owns the # 22 Winston Cup car driven by Ward Burton and the # 27 Busch Series Car driven by Scott Wimmer. RVN


60% Say They Camped More This  Summer

A recent Kampgrounds of America survey of more than 1,000 campers found that nearly 60% of those responding had camped more this summer than in the summer of 2001.

The survey, conducted via KOA's popular KOA Kompass e-newsletter, found that 59.4% reported camping more this summer, while 23.4% said they camped less this summer than last summer. About 17.2% said they camped the same amount.

"The figures reflect what we are finding in our other research," said KOA President and CEO Jim Rogers. Americans are looking for more safe, secure ways to spend time with their families. Camping, especially at KOA campgrounds, is a perfect fit."


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