SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported) April 22, 2003
NATIONAL R.V. HOLDINGS, INC.
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(Exact name of registrant as specified in its charter)
Delaware 0-22268 33-0371079
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(State or other (Commission File No.) (I.R.S. Employer
jursidiction of Identification No.)
incorporation)
3411 N. PERRIS BOULEVARD
PERRIS, CALIFORNIA 92571
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(Address of principal executive offices and zip code)
Registrant's telephone number, including area code: (909) 943-6007
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Item 7. Exhibits
99.1 Press Release of National R.V. Holdings, Inc. dated April 22, 2003,
reporting financial results for the first quarter of 2003.
Item 9. Regulation FD Disclosure
This information set forth under "Item 9. Regulation FD Disclosure"
is intended to be furnished under "Item 12. Results Of Operations And Financial
Condition" in accordance with SEC Release No. 33-8216. Such information,
including the Exhibits attached hereto, shall not be deemed "filed" for purposes
of Section 18 of the Securities Act of 1934, nor shall it be deemed incorporated
by reference in any filing under the Securities Act of 1933, except as shall be
expressly set forth by specific reference in such filing.
Attached and incorporated herein by reference as Exhibit 99.1 is a
copy of a press release of National R.V. Holdings, Inc. (the "Company"), dated
April 22, 2003, reporting the Company's financial results for the first quarter
of 2003.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned, thereto duly authorized.
NATIONAL R.V. HOLDINGS, INC.
By: /s/ MARK D. ANDERSEN
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Mark D. Andersen
Chief Financial Officer
Date: May 22, 2003
EXHIBIT 99.1
For immediate release: Contact:
April 22, 2003 Carol Taylor Clay, Public/Investor Relations Director
or Mark Andersen, CFO
National RV Holdings, Inc.
541.998.3720
ctc@countrycoach.com or mandersen@countrycoach.com
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National R.V. Holdings Reports First Quarter 2003 Results
Perris, Calif. -- April 22, 2003/PR Newswire - First Call/ -- For the first
quarter ended March 31, 2003, National R.V. Holdings, Inc. (NYSE: NVH) today
reported a net loss of $4.1 million, or $0.42 per share. This result compares to
a net loss of $3.3 million, or $0.34 per share, for the first quarter of 2002.
The manufacturer of Class A motorhomes and travel trailers said net sales
decreased 2% to $78.1 million in the 2003 first quarter from sales of $79.3
million in the same period in 2002.
"Our results for the quarter were largely in line with our expectations," stated
Mr. Albrechtsen, the Company's CEO. "Margins remained under pressure due to
price incentives used to reduce inventories of older products, the sale of
inventory built in the 4th quarter that carried excess overhead, and the
introduction of our new Tropi-Cal, Sea Breeze and Inspire products to the
production floor. In addition to these internal challenges, our industry is
dealing with several large manufacturers that have announced excess inventories
resulting in discounting and production slowdowns. While we will have to react
to this industry pressure on pricing," Albrechtsen continued, "the groundwork
has been laid for improvement over the next several quarters. Our own
discounting has begun to decrease and production changes made in the first
quarter are beginning to take hold. We have been able to consolidate production
lines to reduce supervision needs and have reduced direct labor as the result of
decreasing work-in-process inventory, We are pleased that we were able to reduce
total inventory by over $7 million during the first quarter and expect to see
further reductions in the second quarter."
Acceptance by the dealer body of the Company's new products has been good. The
beginning of the quarter saw strong shipments of the re-introduced National RV
brand Sea Breeze gas product while the first production units of the Tropi-Cal
diesel started to deliver to dealer lots in mid-March. The new Country Coach
brand Inspire diesel prototype was well received at the recent Family Motor
Coach Association (FMCA) trade show and will start shipping to dealers in early
May. Production of these new brands will help profitability, which has been
hampered due to the underutilization of production facilities.
Revenue of the Company's Country Coach brand "highline" motorhomes declined 4%
in the 2003 first quarter compared to the first quarter of 2002. Revenues of the
National RV brand motorhomes increased 5% while the National RV brand towable
product segment declined 8% during the first quarter compared to the first
quarter 2002. Wholesale unit shipments of the Company's motorhomes built on
diesel chassis decreased 27% to 237 units for the first quarter 2003, compared
to 325 units for the first quarter of the prior year. Shipments of the Company's
gas motorhome products increased 69% to 332 units in the first quarter from 197
units in last year's first quarter. With an adequate inventory of the National
RV brand Tradewinds diesel product and engineering not ready until late in the
quarter for the new Tropi-Cal diesel, production was focused on gas units during
the first quarter of 2003. National RV Class A unit shipments of combined diesel
and gas units rose 14% over the first quarter of 2002, but only 5% in revenues
due to this shift in mix. Unit sales of the Company's towable products increased
7% to 390 units in the first quarter 2003 from 364 units in the same period in
2002. The towables revenue decline reflects the continued movement toward more
low-priced, high volume units.
The Company reported that cash was unchanged during the first quarter, due
primarily to a $19.4 million increase in accounts receivable and a net loss of
$4.1 million, offset by a $10.8 million increase in accounts payable, a $7.3
million decrease in inventory and a $3.6 million increase in the line-of-credit.
As mentioned above, new discounting programs in the first quarter along with
approximately $1.8 million in costs associated with units built during periods
of poor overhead utilization adversely affected the Company's gross profit
margin during the first quarter of 2003. Though the production was heavily
weighted towards gas units in the current quarter compared to the first quarter
of 2002, product mix did not have a significant impact on gross profit margins.
The Company stated that it continues to see improvement in warranty costs due to
a heavy focus in this area.
Selling, general and administrative expenses totaled $5.3 million or 6.7% of
sales for the quarter, consistent with the same quarter last year.
"Total inventory dropped by $7.3 million during the quarter, coming mainly from
reductions in finished goods and work-in-process. We expect to see continued
reductions in the second quarter of 2003 in the $2 million to $4 million range
even after a run up due to show activity in late June.," said Chief Financial
Officer Mark Andersen. "We also expect our liquidity to improve with the
collection of accounts receivable related to the FMCA show in March. We have
already reduced accounts receivable by over $7 million since the quarter end,"
The Company said liquidity will also be improved in the second quarter of 2003
by the collection of a $7.3 million tax refund; however this improvement may be
tempered by the expiration of a $5 million temporary increase in the credit
facility. The Company is currently in negotiations for a $10 million permanent
increase in the credit facility that expires August, 2005.
National R.V. Holdings will host a live webcast to review first quarter results
today, April 22, 2003, at 2 p.m. EDT. A link to the conference call can be found
on the Company's website at www.nrvh.com and will be archived and available for
90 days.
National R.V. Holdings, Inc. is a leading manufacturer of Class A motorhomes and
travel trailers. From its Junction City facility, the Company designs,
manufactures and markets Country Coach high-end (Highline) Class A diesel
motorhomes under brand names including Inspire, Allure, Intrigue, Magna,
Affinity and Lexa, and bus conversions under the Country Coach Prevost brand.
From its Perris, California facility, the Company designs, manufactures and
markets National RV Class A gas and diesel motorhomes under brand names
including Sea Breeze, Dolphin, Tropi-Cal, Tradewinds and Islander, and travel
trailers under brand names including Surf Side Lite, Splash, Rage'n, Blaze'n,
Sea Breeze and Palisades.
This release and other statements by the Company contain forward-looking
statements within the meaning of the Private Securities Litigation Reform Act of
1995. Investors are cautioned that forward-looking statements are inherently
uncertain. Actual performance and results may differ materially from that
projected or suggested herein due to certain risks and uncertainties including,
without limitation, the cyclical nature of the recreational vehicle industry;
seasonality and potential fluctuations in the Company's operating results; the
Company's dependence on chassis suppliers; potential liabilities under
repurchase agreements; competition; government regulation; warranty claims;
product liability; and dependence on certain dealers and concentration of
dealers in certain regions. Certain risks and uncertainties that could cause
actual results to differ materially from that projected or suggested are set
forth in the Company's filings with the Securities and Exchange Commission (SEC)
and the Company's public announcements, copies of which are available from the
SEC or from the Company upon request.
NATIONAL R.V. HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
Three Months
Ended March 31,
2003 2002
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Net sales $78,101 $ 79,320
Cost of goods sold 79,181 79,574
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Gross loss (1,080) (254)
Selling expenses 3,130 3,429
General and administrative expenses 2,120 1,908
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Operating loss (6,330) (5,591)
Interest and other expense, net 165 (305)
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Loss before income taxes (6,495) (5,286)
Benefit for income taxes (2,406) (1,970)
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Net loss $(4,089) $ (3,316)
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Earnings per common share:
Basic $ (0.42) $ (0.34)
Diluted $ (0.42) $ (0.34)
Weighted average number of shares
Basic 9,832 9,719
Diluted 9,832 9,719
NATIONAL R.V. HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share amounts)
March 31, December 31,
2003 2002
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(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 10 $ 14
Trade receivables, less allowance for doubtful accounts ($276 and $276, 29,261 9,829
respectively)
Inventories 65,275 72,532
Deferred income taxes 9,477 9,477
Income taxes receivable 9,464 7,015
Prepaid expenses 1,393 2,134
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Total current assets 114,880 101,001
Property, plant and equipment, net 42,726 43,230
Other 672 1,013
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$ 158,278 $145,244
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Line of credit $ 8,521 $ 4,943
Book overdraft 3,923 943
Current portion of long-term debt 22 22
Accounts payable 24,258 13,483
Accrued expenses 28,360 28,564
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Total current liabilities 65,084 47,955
Deferred income taxes 3,105 3,105
Long-term debt 13 19
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Total liabilities 68,202 51,079
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Commitments and contingencies
Stockholders' equity:
Preferred stock - $.01 par value; 5,000 shares authorized, 4,000 issued - -
and outstanding
Common stock - $.01 par value; 25,000,000 shares authorized, 9,832,161 98 98
and 9,832,161 issued and outstanding, respectively
Additional paid-in capital 34,302 34,302
Retained earnings 55,676 59,765
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Total stockholders' equity 90,076 94,165
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$ 158,278 $145,244
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NATIONAL R.V. HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Three Months
Ended March 31,
2003 2002
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Cash flows from operating activities:
Net loss $(4,089) $ (3,316)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation 982 978
Gain on asset disposal - (348)
Changes in assets and liabilities:
Increase in trade receivables (19,432) (7,636)
Decrease in inventories 7,257 18,063
Increase in income taxes receivable (2,449) (1,138)
Decrease in prepaid expenses 741 341
Increase (decrease) in book overdraft 2,980 (608)
Increase (decrease) in accounts payable 10,775 (4,843)
Decrease in accrued expenses (204) (722)
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Net cash (used in) provided by operating activities (3,439) 771
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Cash flows from investing activities:
Decrease in other assets 341 58
Proceeds from sale of assets - 2,424
Purchases of property, plant and equipment (479) (1,438)
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Net cash (used in) provided by investing activities (138) 1,044
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Cash flows from financing activities:
Net advance on line of credit 3,578 -
Principal payments on long-term debt (5) (5)
Proceeds from issuance of common stock - 18
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Net cash provided by financing activities 3,573 13
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Net increase in cash (4) 1,828
Cash, beginning of period 14 22
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Cash, end of period $ 10 $ 1,850
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Please direct questions to investors@nrvh.com.
P.O. BOX 400 JUNCTION CITY, OREGON 97448
541.998.3720 ph o 541.998.9275 fx o WWW.NRVH.COM