RV News' News of the Industry

Forecast
RVIA Economist Sees Shipments To Gain Nearly 5% in 1999

According to John DeWolf, RVIA’s economist, RV shipments should be between 304,000 and 308,000 units (at annual rates) in each quarter of 1999. Writing in the quarterly issue of ROADsigns, he said, “We expect the total for the year to be between 306,000 and 307,000. This will result in a gain of about 4.7% for the year over1998. Growth should continue through the year 2000, when total units shipped should top 312,000 for a further annual gain of 2%.”

DeWolf also predicted both towables and motorhomes will see more shipments in 1999 than in 1998 – towables by 3.4% more; motorhomes by 8.3% more.

“However,” he said, “this is only because conventional travel trailers and type A motorhomes will be up substantially. Truck campers will also be up, but their number is small. Both also should do better in 2000, though the gains will be smaller - under 30% for both towables and motorhomes.”

While RV shipment forecasts are promising, the conversion industries future isn’t so rosy. DeWolf said, “It now appears that van conversions will be down about 3% in 1999 - and will almost hold their own in 2000. Pickup and sport utility conversions appear to be losing ground, and apparently will continue to decline through the year 2000.”

Holiday RV Superstores Announces Board Changes

The board of directors of Holiday RV Superstores, Inc. (Nasdaq: RVEE) has named William E. Curtis, David J. Doerge and Ronald G. Huneycutt as directors.

The Orlando, FL-based chain of RV and marine dealerships said the appointments reflect the recent change in ownership of Holiday RV and the company’s new direction, which is aimed at aggressive industry consolidation. Atlas Recreational Holdings, Inc., a Florida-based investment group, acquired a controlling interest in Holiday RV in July.

The new directors join existing board members Michael S. Riley, W. Hardee McAlhaney, David A. Kamm and Paul G. Clubbe on Holiday RV’s seven-seat board of directors. The company also announced the resignations of directors Newton C. Kindlund, Joanne M. Kindlund, Roy W. Parker, Harvey M. Alper and James P. Williams.

Fleetwood Posts Record First Quarter Sales, Reiterates Profit Warning

Fleetwood Enterprises, Inc. (NYSE: FLE), posted record sales for the quarter ended July 25, 1999. At the same time, the company reiterated its belief that first quarter earnings would not compare favorably with prior year results.

Preliminary sales for the first quarter reached $955 million, a 14% increase over last year’s $840.2 million. The company attributed the revenue gain to continuing strong sales growth in its recreational vehicle segment and the addition of retail sales from its recently formed manufactured housing retail business.

Healthy demand for the company’s motorhome products drove RV revenues up 13% to approximately $484 million in the July quarter compared to $428.8 million a year earlier. Motorhome revenues reached a first quarter record, rising 18% to $306 million. This reflects excellent sales growth for both Class A and Class C product types. Both of the company’s towable divisions also achieved record sales for the first quarter. Travel trailer sales rose 6% to $148 million and folding trailers rose less than 1% to $30 million.

Coachmen Celebrates Grand Opening of New Motorhome Facility

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Coachmen RV Co. executives and employees were joined recently by Indiana state government officials and local dignitaries as they celebrated the grand opening of the company's new 92,500-sq. ft. state-of-the-art motorhome plant, which produced its first motorhome on July 6th.

Michael R. Terlep, president of Coachmen RV, said, "This new plant will allow an increase of Class A motorhome production capacity by as much as 150%. This will enable us to fill the heavy back-log of orders we carried throughout 1998 due to lack of capacity, which in turn will resume our growth in Class A market share."

The new motorhome plant represents the largest manufacturing facility throughout Coachmen RV company.

Pictured above: (l-r) Kevin Sargent, Elkhart County Chamber of Commerce; Helen Humes, Indiana Department of Commerce; Claire Skinner, chairman and CEO of Coachmen Industries; Michael Terlep, president of Coachmen RV; Don Medd, VP of operations for Coachmen RV; and Gregg Fore, president of Middlebury, Indiana Town Board.

Custom Coach To Acquire Classic Coach

Custom Coach Corp. has reached an agreement of understanding to purchase the assets of Classic Coach Mfg. Inc., of Clermont, FL. This is the first acquisition in Custom Coach’s 44-year history. With the purchase, Custom Coach becomes the only major converter to have manufacturing plants in two locations.

Custom Coach will combine the technological strengths of both companies to enhance the Custom Coach product. Classic Coach will now become a division of Custom Coach Corp. All Classic Coach Mfg. employees will stay with the new company,

New Foundation Manual Outlines “Professional Approach” to Closing More RV Sales

The RVDA Education Foundation has just published a new dealer operations manual that can help RV salespeople improve their closing skills while increasing customer satisfaction with the sales process. Turning Your Sales Force Into Sales Consultants, by Grayson Schwepfinger of Salesmaker Associates, provides salespeople with step-by-step strategies that can help them understand buyers’ needs, recognize buying signals, and overcome objections.

The manual includes practical advice on building trust, strategies for using a “feature-benefit” selling process, and proper responses to customer “getaway” stories. The manual also features a sample RV customer profile form that can help salespeople better understand what kind of RV is the best fit for the customer.

Grayson Schwepfinger is an expert in RV sales and his consulting services are in high demand at RV dealerships across the country. “Grayson’s approach makes incredible sense. It’s a real eye-opener,” says Erik A. Samuelsen of Lakeland Custom Coach RV Center in Milton, WI. “Grayson’s experience in the field shows,” says Darrell Slusser of Sonny’s Camp & Travel in Duncan, SC.

All RVDA dealer members will receive a copy of Turning Your Sales Force Into Sales Consultants as a member benefit. Additional copies are $25 for RVDA members and $40 for non-members. For an order form, please fax your name, address, and fax number to RVDA at (703) 591-0734 or call (703) 591-7130 (ext 113).

Coast Distribution Posts Second Quarter Sales and Earnings Gains

The Coast Distribution System, Inc. (Amex: CRV) reported financial results for the second quarter and six months ended June 30, 1999.

Net sales for the quarter ended June 30, 1999 increased 7% to $49.6 million, as compared to $46.2 million for the second quarter of 1998. For the six months ended June 30, 1999 revenue increased to $90.8 million as compared to $84.6 million for the same period in 1998.

Net earnings for the second quarter of 1999 were $1,155,000, or $0.25 per share versus $1,052,000, or $0.20 per share in the second quarter of 1998. Diluted average shares outstanding for the second quarter were 4,625,403 in 1999 and 5,272,607 in 1998.

In the six months ended June 30, 1999 the company earned $1,495,000, or $0.31 per share, as compared to $1,660,000, or $0.31 per share, in 1998. Diluted average shares outstanding for the six months ended June 30, were 4,883,033 in 1999 and 5,259,814 in 1998. The reduction in the average number of shares outstanding during the quarter and six months ended June 30, 1999 as compared to the same periods of 1998 is a result of the company’s 1999 repurchase of approximately 865,000 shares of its common stock.

RVIA Names New Director of Advertising

RVIA has promoted Traci Pasqualone, who has worked for the association for five years, to the director of advertising position. She replaces Steve Levin, who left to pursue other opportunities.

Pasqualone will assist RVIA Vice President of Public Relations and Advertising Gary LaBella in the day-to-day management of the Go RVing national advertising campaign, including agency oversight, national ad execution and response, tie-in programs, publicity, budgeting and industry fundraising.

Coachmen Industries, Inc. Announces Record Second Quarter Results

Coachmen Industries, Inc., (NYSE: COA) announced record second quarter results for the period ended June 30, 1999.

The previous record for second quarter results was set in 1998, with sales of $201,069,000 and earnings of $9,323,000.

The second quarter of 1999 surpassed those records, with sales of $203,199,000 and earnings of $9,669,000. Diluted earnings per share increased 9.4%, from 53 cents in 1998 to 58 cents this year.

Sales for the first six months of 1999 totaled $414,224,000, setting another record and representing a 10% increase over sales in the first six months of 1998 of $376,707,000.

Net income was also a record at $16,886,000, as compared to $15,622,000 in 1998. Diluted earnings per share for the six months were $1.01 per share, a 13.5% increase over the 89 cents earned in 1998.

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Lazy Days Employees Acquire Majority Stake In Firm

In July Lazy Days RV Center, Inc., announced that the Lazy Days RV Center Employee Stock Ownership Plan (ESOP) had acquired a majority interest in the company from Don Wallace, CEO. Under Wallace’s direction, Lazy Days has grown to become the nation’s largest recreational vehicle dealer with sales exceeding $500 million over the last twelve months.

The transaction established the value of Lazy Days at more than $170,000,000, as well as providing additional working capital for expanded floorplan financing, facility expansion and future growth. No changes are planned in the Lazy Days management team that remains intact.

Workhorse Custom Chassis To Offer Coach Net Roadside Service

New motorhome owners with a Workhorse Custom Chassis will now have Coach Net roadside assistance free for three years or 36,000 miles. This covers the warranty period of their Workhorse chassis.

Workhorse Custom Chassis and Coach Net have just completed the service agreement. Workhorse National Service Manager Charles Christy, said, “Our theme is customer service. With the kind of reliable, quality product we put out, we don’t expect much need for this kind of service, but should something happen, we’ve got that base covered.”

Coach Net is the premier roadside assistance program for RV owners. It provides 24-hour, 7day a week assistance anywhere in the United States and Canada. RVIA/RVDA certified technicians are on hand to take calls for service or operation questions, as well as set up chassis service appointments.

Monaco Coach’s Second Quarter Revenues and Earnings Reach Record Levels

Monaco Coach Corporation (NYSE: MNC) today reported record revenue and earnings for its second quarter ended July 3, 1999. Second quarter diluted earnings per share were $0.59, an increase of 146% from the same period last year, on revenue of $199.2 million. Net income for the second quarter rose 155% to $11.5 million. Second quarter operating income was $18.9 million, an increase of 131% over the same period last year.

For the six months ended July 3, 1999, diluted earnings per share were $1.10, an increase of 139% from the same period last year, on revenue of $392.4 million. For the six months ended July 3, 1999 net income rose 146% to $21.3 million. Operating income for the six months ended July 3, 1999 was $36.2 million, an increase of 129% over the same period last year.

Second quarter unit sales of Monaco Coach Corporation products totaled 2,454 units, an increase of 57% from the same period last year. Second quarter motor home sales totaled 1,637 units, and second quarter towable recreational vehicles totaled 817 units. For the six months ended July 3, 1999, unit sales totaled 4,832 units, an increase of 50% from the same period last year.

National RV Posts Record Second Quarter Sales and Earnings

National R.V. Holdings, Inc. (NYSE: NVH), reported its results of operations for the second quarter ended June 30, 1999. Net sales for the second quarter of 1999 increased 15.8% to $105.3 million from $90.9 million for the second quarter of 1998. Net income for the second quarter of 1999 increased 43.1% to $8.3 million from $5.8 million for the second quarter of 1998. Diluted earnings per share were $0.74 compared to $0.51 in the second quarter of 1998.

Net sales for the six months ended June 30, 1999 increased 21.7% to $208.3 million from $171.2 million in the first six months of 1998. Net income for the six months ended June 30, 1999 increased 45.8% to $15.6 million from $10.7 million in the first six months of 1998. Diluted earnings per share were $1.38, compared to $0.95 per share in the first six months of 1998.

RVDA Education Foundation Releases Comprehensive Revision of Service Management Guide

The RVDA Education Foundation has published a comprehensive revision to its popular Service Management Guide. The guide provides average work unit times for most basic service functions performed by competent RV technicians.

The new edition contains 23 new pages and approximately 300 time changes and additions from the previous version — including new procedures and time for water and waste systems, furnaces and air conditioners, new awning installation and repair, and separate sections on pre-delivery inspections of new and used units. The Service Management Guide also covers times for electrical wiring, air conditioners, and many other service operations. Where appropriate, several tasks for proper component installation and repair are included.

Members of the RVDA Education Foundation Board of Directors and other interested dealers, service managers, and technicians submitted revisions to the Year 2000 guide. The Service Management Guide is available from D&S Media Enterprises, Inc. for $145. For credit card orders call D&S at 480-784-4060, or mail your check to 408 E. Southern Ave., Tempe, AZ 85282-5200.

Rexhall Posts Significant Increase in Second Quarter Results

Rexhall Industries, Inc. (Nasdaq: REXL) posted a significant increase in profitability in the second quarter, ended on June 30, 1999.

The manufacturer of Class A motorhomes said net earnings grew 30.5% to $1,248,000, or $0.41 per diluted share, in the 1999 second quarter, compared with net earnings of $956,000, or $0.32 per diluted share, in the same period in 1998. Rexhall Industries said the improvement reflects growing consumer acceptance of the company’s product line as well as increased sales of its slideout motorhome design. Rexhall Industries’ sales increased to $20,937,000 in the current quarter, compared with sales of $18,629,000 in the year-ago second quarter.

For the six months ended June 30, 1999, Rexhall reported a 67.2% increase in net earnings, versus the year-ago period. Net earning rose to $2,507,000, or $0.83 per diluted share, compared with $1,499,000, or $0.51 per diluted share, in the first six months of 1998. Rexhall recorded sales of $43,170,000 in the first six months of 1999, versus $32,954,000 in the same period in 1998, a 31% increase.

RVIA Expels Member for Standards Violations

An RVIA member manufacturer was expelled from the association by the RVIA executive committee for failure to comply with the standards program and failure to demonstrate the proper usage of the RVIA seal.

This is the 18th member since the inception of the standards program that has been expelled.

RVIA Bylaws require member recreation vehicle (RV) and conversion vehicle manufacturers to apply the seal on each vehicle produced for sale in the U.S.

As a condition of membership, all RVIA member manufacturers are subject to inspections by RVIA representatives to audit compliance with the ANSI A 119.2 Standard for RVs, and for conversion vehicle manufacturers’ compliance with the ANSI 12-volt standard.

Members failing to maintain an acceptable level of compliance can be expelled, prohibiting display of the seal on their vehicles. Companies can appeal this action to the RVIA board.

SMC Reports Loss in Second Quarter 1999

SMC Corporation (Nasdaq: SMCC) reported its results for the second quarter of 1999. For the three-month period ended July 3, 1999 net sales increased to $53.8 million from $52.3 million reported for the second quarter of 1998. However, net income decreased for the same three month period from $838,000 in 1998 to a loss of $149,000 in the second quarter of 1999. Earnings decreased from $.13 per share on 6.6 million diluted shares outstanding to a loss of $(.03) per share on 5.8 million diluted shares outstanding in the second quarter of 1999.

For the six month periods ended July 3, 1999 and June 30, 1998, sales were $111 million and $100 million respectively. Net income for the same periods was a loss of $41,000 in 1999 versus a gain of $1,754,000 in 1998. Earnings for the respective six month periods were a loss of $(.01) per share on 5.8 million diluted shares in 1999 versus a gain of $.27 per share on 6.5 million diluted shares in 1998.

Freightliner Launches New XCS RV Chassis

Freightliner unveiled its new XCS motorhome chassis at the FMCA annual summer convention in July. The XCS is a rear-engine diesel chassis that incorporates the durability and performance features of a premium, diesel-powered vehicle at a lower cost.

Jack Conlan, president of Freightliner Custom Chassis, said, "The XCS chassis offers customers a unique, innovative and affordable alternative to a gas chassis. With the XCS, we are bridging the price gap between diesel and gas, while retaining the same quality, comfort, innovation and dependability of our higher-level RV chassis lines."

Freightliner's XCS chassis was designed in conjunction with Allison and Cummins. Freightliner's collaborative efforts included working with Cummins to optimize the ISB engine to match the torque rating to the 1000 series transmission. The result is a new ISB rating of 260 horsepower and 550 lbs. ft. of torque. The engine also features lower maintenance frequency and higher fuel efficiency than gas-powered chassis. In addition, the XCS incorporates the same benefits found in other diesel pushers such as lower noise and heat levels, greater floor plan flexibility, and higher resale value.

Over 300 Exhibitors Registered for Caravan
Salon ‘99

Three months before the start of Caravan Salon ‘99 International Trade Fair for recreational vehicles, mobile homes, trailers and camping equipment, 370 exhibitors from 19 countries have registered to take part in the event. Caravan Salon ‘99 will be held from September 25 through October 3, 1999, at the fairgrounds in Dusseldorf, Germany.

Of the exhibitors registered to date, 25% are from countries other than Germany.

The organizers of Caravan Salon ‘99 expect over 500 exhibitors and 158,000 visitors to take part in the trade show.

INDUSTRY NEWS
September 1999

Copyright � 1998 Web Site Management, Inc.

INDUSTRY NEWS September 1999

Copyright � 1998 Web Site Management, Inc.

INDUSTRY NEWS
September 1999

Copyright � 1998 Web Site Management, Inc.