Wednesday, May 16, 2007
DOES NATIONAL RV HAVE ANYTHING LEFT?
RV Business
Wednesday, May 16, 2007
National RV Holdings Inc. reported a net loss for its first quarter, ended March 31, on a 60% decline in revenue.
The company, parent to motorhome builder National RV Inc., maintained the period reflected the bottom of “a downward spiral in sales” as it improved its working capital with the sale of subsidiary Country Coach Inc. for $38.75 million in February while gaining efficiencies through its ongoing restructuring program.
National RV Holdings also announced that it will be selling the property at its headquarters in Perris, Calif., and entering into a “leaseback” agreement with First Industrial Acquisitions Inc.
"The Crane Composites fiberglass problem discovered one year ago, led to a precipitous downward spiral in sales, which in turn caused a severe strain on our liquidity and created significant uncertainty amongst our customers," stated CEO Brad Albrechtsen. "These first-quarter results hopefully reflect the bottom of that spiral and we believe that we are finally headed back up. We have significantly reduced overhead going forward, are once again well capitalized, are partnering with new dealers and are introducing new and innovative products."
National RV Holdings reported a first-quarter net loss of $4 million compared to a net loss of $2.1 million a year ago after reflecting a $7.3 million gain on the sale of Country Coach and a $2.4 million loss reported by the discontinued operation. Sales during the period fell to $21.9 million from $54.6 million the year prior.
First-quarter shipments of diesel motorhomes totaled 50 units, down 71% from 172 units last year and shipments of gas motorhomes declined 55% to 165 units from 368. Total unit shipments dropped 60% to 215 while the average selling price increased 1% to $102,000.
Regarding the leaseback, National RV said it will sell the property for $31.75 million and be entering into a 10-year, triple-net lease with approximately $2.7 million in annual lease payments, which increase 3% per year. The lease will include two five-year renewal options. The transaction is scheduled to close later this month.
In elaborating on the restructuring and refinancing, Albrechtsen noted: "On an annualized basis, when we complete our restructuring later this quarter, we expect to have reduced our costs by $13 to $15 million dollars compared to 2006.”
He added, “We have launched a commercial public relations campaign that combines a strategically directed media blitz highlighting our products and management team, with an ambitious effort on the part of senior management to get out and visit all of our dealer partners. All of these efforts are beginning to bear fruit as we are seeing demand for our products once again improve."
Wednesday, May 16, 2007
National RV Holdings Inc. reported a net loss for its first quarter, ended March 31, on a 60% decline in revenue.
The company, parent to motorhome builder National RV Inc., maintained the period reflected the bottom of “a downward spiral in sales” as it improved its working capital with the sale of subsidiary Country Coach Inc. for $38.75 million in February while gaining efficiencies through its ongoing restructuring program.
National RV Holdings also announced that it will be selling the property at its headquarters in Perris, Calif., and entering into a “leaseback” agreement with First Industrial Acquisitions Inc.
"The Crane Composites fiberglass problem discovered one year ago, led to a precipitous downward spiral in sales, which in turn caused a severe strain on our liquidity and created significant uncertainty amongst our customers," stated CEO Brad Albrechtsen. "These first-quarter results hopefully reflect the bottom of that spiral and we believe that we are finally headed back up. We have significantly reduced overhead going forward, are once again well capitalized, are partnering with new dealers and are introducing new and innovative products."
National RV Holdings reported a first-quarter net loss of $4 million compared to a net loss of $2.1 million a year ago after reflecting a $7.3 million gain on the sale of Country Coach and a $2.4 million loss reported by the discontinued operation. Sales during the period fell to $21.9 million from $54.6 million the year prior.
First-quarter shipments of diesel motorhomes totaled 50 units, down 71% from 172 units last year and shipments of gas motorhomes declined 55% to 165 units from 368. Total unit shipments dropped 60% to 215 while the average selling price increased 1% to $102,000.
Regarding the leaseback, National RV said it will sell the property for $31.75 million and be entering into a 10-year, triple-net lease with approximately $2.7 million in annual lease payments, which increase 3% per year. The lease will include two five-year renewal options. The transaction is scheduled to close later this month.
In elaborating on the restructuring and refinancing, Albrechtsen noted: "On an annualized basis, when we complete our restructuring later this quarter, we expect to have reduced our costs by $13 to $15 million dollars compared to 2006.”
He added, “We have launched a commercial public relations campaign that combines a strategically directed media blitz highlighting our products and management team, with an ambitious effort on the part of senior management to get out and visit all of our dealer partners. All of these efforts are beginning to bear fruit as we are seeing demand for our products once again improve."
