Fleetwood Reports Preliminary Revenues for Fourth Quarter and Fiscal Year 2008
May 01 2008 - 8:30AM
PR Newswire (US)
- Company updates earnings guidance to small operating loss, net
profit for the quarter - RIVERSIDE, Calif., May 1
/PRNewswire-FirstCall/ -- Fleetwood Enterprises, Inc. (NYSE:FLE)
announced today preliminary sales for its fourth quarter and fiscal
year ended April 27, 2008. Revenues for the fourth quarter were
approximately $370 million, down 24 percent from $488 million last
year. For the full fiscal year, consolidated sales were off 13
percent to $1.67 billion from $1.92 billion last year. These
amounts exclude folding trailer division revenues, which now are
accounted for as discontinued operations. RV Group Revenues The
recreational vehicle industry was off significantly during the
quarter. February and March motor home shipments were down 21
percent and 27 percent, respectively, from the prior-year period.
Shipments of Class A motor homes were particularly affected, with a
decrease of 36 percent each month. "The RV industry was clearly
being impacted by economic concerns and the resulting loss of
consumer confidence," said Elden Smith, Fleetwood's president and
chief executive officer. "Despite lower numbers overall, on a
relative basis Fleetwood products continue to perform well.
According to Statistical Surveys' most recent retail data for
January and February, we are once again the number one motor home
manufacturer. "Sales in our travel trailer division were lower, but
appear to have stabilized," Smith continued. "We have reduced the
number of manufacturing plants to five, while for most of the
fourth quarter last year we operated nine. As a result of our
smaller geographic reach and dealer inventory adjustments, sales
were down in the first three fiscal quarters by almost half, but
more recently sales trends have begun to fall in line with the
overall market. In addition, the reduction in capacity has had the
desired effect of reducing costs and improving efficiencies in the
remaining plants." As a result of certain of the corporate
developments and transactions announced on April 29, 2008, revenues
for the RV Group now include outside sales from Fleetwood's Gold
Shield facilities and Continental Import business, which were
formerly part of the Supply Group. Prior-year revenues have been
reclassified to conform. Housing Group Revenues "In the fourth
quarter, sales through our relatively new modular division,
Trendsetter Homes, increased significantly from a very small base,"
Smith said. "This increase largely offset the decline in our
traditional manufactured housing business, which faced continued
weakness in California, Arizona, and Florida, states with a strong
component of retirement community business. However, trends are
improving in most of the South, especially in Texas. To take
advantage of our success in the modular business, we have recently
completed a reorganization of the Housing Group to place greater
emphasis on Trendsetter Homes, with a particular focus on the
military base housing opportunities. Going forward, we intend to
allocate more resources to aggressively pursue military contracts
on a national scale." The Housing Group's revenues now also include
the outside sales of Continental Lumber, a brokerage business that
was formerly part of the Supply Group. Prior-year revenues have
been reclassified to conform. Outlook "The decline in revenues from
last year made it difficult to maintain efficiencies in our plants
during the quarter, particularly in motor homes," Smith said. "This
was largely offset, however, by the positive effect of cost-cutting
measures and lower overall operating expenses. As a result, we
expect to see a loss from continuing operations (excluding real
estate gains) that approaches a break-even level. And, with
approximately $24 million of other operating income from real
estate gains, we expect to generate a net profit for the quarter.
We believe that net income will be substantial enough that the 8.5
million shares underlying the 5% convertible debentures will be
included in the calculation of diluted earnings per share."
REVENUES 13 Weeks Ended 52 Weeks Ended Apr. 27, Apr. 29, % Change
Apr. 27, Apr. 29, %Change 2008 2007 2008 2007 Motor homes $192 $278
(31)% $922 $962 (4)% Travel trailers 60 84 (29) 218 391 (44) Supply
6 9 (33) 24 48 (50) RV Group 258 371 (30) 1,164 1,401 (17)
Manufactured housing 98 115 (15) 469 516 (9) Modular housing 13 2
550 32 2 NM Lumber 1 -- NM 1 -- NM Housing Group 112 117 (4) 502
518 (3) Total revenues $370 $488 (24)% $1,666 $1,919 (13)% NM - Not
meaningful ABOUT FLEETWOOD Fleetwood Enterprises, Inc., through its
subsidiaries, is a leading producer of recreational vehicles and
manufactured homes. This Fortune 1000 company, headquartered in
Riverside, Calif., is dedicated to providing quality, innovative
products that offer exceptional value to its customers. Fleetwood
operates facilities strategically located throughout the nation,
including recreational vehicle, factory-built housing, and supply
subsidiary plants. For more information, visit the Company's
website at http://www.fleetwood.com/. This press release contains
certain forward-looking statements and information based on the
beliefs of Fleetwood's management as well as assumptions made by,
and information currently available to, Fleetwood's management.
Such statements, including those regarding expectations for the
fourth quarter results, reflect the current views of Fleetwood with
respect to future events and are subject to certain risks,
uncertainties, and assumptions, including risk factors identified
in Fleetwood's 10-K and other SEC filings. These risks and
uncertainties include, without limitation, the lack of assurance
that we will regain sustainable profitability in the foreseeable
future; the effect of ongoing weakness in both the manufactured
housing and recreational vehicle markets; the effect of a decline
in home equity values, volatile fuel prices and interest rates,
global tensions, employment trends, stock market performance,
availability of financing generally, and other factors that can
have a negative impact on consumer confidence, which in turn may
reduce demand for our products, particularly recreational vehicles;
the availability and cost of wholesale and retail financing for
both manufactured housing and recreational vehicles; our ability to
comply with financial tests and covenants on existing debt
obligations; our ability to obtain, on reasonable terms if at all,
the financing we will need in the future to execute our business
strategies and to meet the repayment terms of our outstanding
convertible debt instruments, including the $100 million 5%
convertible senior subordinated debentures, some or all of which
the Company may be obligated to repurchase in December 2008;
potential dilution associated with future equity financings we may
undertake to raise additional capital and the risk that the equity
pricing may not be favorable; the cyclical and seasonal nature of
both the manufactured housing and recreational vehicle industries;
expenses and uncertainties associated with the entry into new
business segments or the manufacturing, development, and
introduction of new products; the potential for excessive retail
inventory levels in the manufactured housing and recreational
vehicle industries; the volatility of our stock price; repurchase
agreements with floorplan lenders, which could result in increased
costs; potential increases in the frequency of product liability,
wrongful death, class action, and other legal actions; and the
highly competitive nature of our industries. Contact: Lyle Larkin,
Vice President-Treasurer (951) 351-3535 Kathy A. Munson,
Director-Investor Relations (951) 351-3650 DATASOURCE: Fleetwood
Enterprises, Inc. CONTACT: Lyle Larkin, Vice President-Treasurer,
+1-951-351-3535, or Kathy A. Munson, Director-Investor Relations,
+1-951-351-3650, both of Fleetwood Enterprises, Inc. Web site:
http://www.fleetwood.com/
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