Coachmen Industries Inc. today (Jan. 26) issued a cautionary statement regarding its fourth-quarter results.
“We will be releasing our financial results for the full year 2008 and the fourth quarter of 2008 in February,” said president and CEO, Rick Lavers. “However, there have been so many changes and events during the fourth quarter of 2008 that our results will appear to be unusual. We anticipate our Housing Group will show a modest profit for the full year 2008, despite losses in the fourth quarter as previously predicted, but on the whole, our results will be impacted by these events.”
Coachmen said the results for the overall company will be greatly affected by the sale of the assets of the Recreational Vehicle Group to Elkhart, Ind.-based Forest River Inc.
“Even though the sale was clearly the correct action in the circumstances and resulted in a transaction value of approximately $40 million, much of that was allocated to pay past and potential future obligations of the RV business and costs related to the sales transaction” Coachmen said in its statement. “Further, the assets were sold below their book value. Therefore, the results will reflect significantly higher book losses than would be the case under normal operating circumstances.”
The company is also currently evaluating the remaining goodwill and various assets and may be required by accounting rules to write-off the remaining goodwill balance and impair certain other assets during the quarter.