Tuesday, October 03, 2006
NATIONAL RV SAYS IT IS OK
RV Business
Monday, October 2, 2006
In what National RV Holdings Inc. President Brad Albrechtsen termed a response to “rumors that continue to circulate” about the company’s viability, the Perris, Calif.-based company issued a letter Monday (Oct. 2) stating that it has increased market share during the past year and that both divisions – National RV Inc., Perris, and Junction City, Ore.-based Country Coach Inc. – were in “full operation.”
“I emphatically deny all of these (rumors) and encourage you to ignore them,” Albrechtsen said. “They are false and are being propagated by those who have been losing market share to our strong-performing products.
“We have pulled a handful of production days out of both our Country Coach and National RV operations in order to more closely align our build rates to current demand and overbuilding. It seems this very common and recurring practice throughout the industry has fed concerns that our suppliers have shut us down or that we have run out of capital. Neither is true.”
Albrechtsen acknowledged that National RV Holdings had incurred “past losses,” which he said combined with a recent fiberglass issue to “put a strain on cash flows.”
In the company’s second quarter, National RV Holdings reported a net loss of $7.1 million. Earlier, the builder reported that the use of allegedly defective fiberglass sidewalls on National RV products would result in $5 million in losses to repair the problem, resulting in a lawsuit against the supplier.
But in Monday’s letter, Albrechtsen said the company is “working through this.”
“We were able to obtain a temporary increase in our working capital line of credit, and are working on raising more permanent capital,” he said. “Several options of both debt and equity capital are available to us and are currently being evaluated.”
In addition, Albrechtsen said National RV Holdings has been “open regarding the challenges of being a public company of our size," and the company was exploring a wide range of strategic alternatives.
“We are well immersed in the process and hope to have sufficiently vetted all options and reached a decision on this front prior to year-end,” he said.
Monday, October 2, 2006
In what National RV Holdings Inc. President Brad Albrechtsen termed a response to “rumors that continue to circulate” about the company’s viability, the Perris, Calif.-based company issued a letter Monday (Oct. 2) stating that it has increased market share during the past year and that both divisions – National RV Inc., Perris, and Junction City, Ore.-based Country Coach Inc. – were in “full operation.”
“I emphatically deny all of these (rumors) and encourage you to ignore them,” Albrechtsen said. “They are false and are being propagated by those who have been losing market share to our strong-performing products.
“We have pulled a handful of production days out of both our Country Coach and National RV operations in order to more closely align our build rates to current demand and overbuilding. It seems this very common and recurring practice throughout the industry has fed concerns that our suppliers have shut us down or that we have run out of capital. Neither is true.”
Albrechtsen acknowledged that National RV Holdings had incurred “past losses,” which he said combined with a recent fiberglass issue to “put a strain on cash flows.”
In the company’s second quarter, National RV Holdings reported a net loss of $7.1 million. Earlier, the builder reported that the use of allegedly defective fiberglass sidewalls on National RV products would result in $5 million in losses to repair the problem, resulting in a lawsuit against the supplier.
But in Monday’s letter, Albrechtsen said the company is “working through this.”
“We were able to obtain a temporary increase in our working capital line of credit, and are working on raising more permanent capital,” he said. “Several options of both debt and equity capital are available to us and are currently being evaluated.”
In addition, Albrechtsen said National RV Holdings has been “open regarding the challenges of being a public company of our size," and the company was exploring a wide range of strategic alternatives.
“We are well immersed in the process and hope to have sufficiently vetted all options and reached a decision on this front prior to year-end,” he said.
