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Coachmen Industries Inc. reported a net loss of $52.1 million for its fourth quarter, ended Dec. 31, impacted by the divestiture of its RV Group in a sale to Forest River Inc.
“As previously announced, we sold most of the assets of the RV Group on Dec. 26,” said Coachmen President and CEO Rick Lavers. “RV finished-goods inventories and some other assets of the group were sold below book value. Combined with operating losses sustained by the RV Group during the quarter, and the write-down of the remaining goodwill balances, this resulted in a rather unusual overall book loss for the company for both the fourth quarter and the full year 2008.”
He added, “However, these actions also provide us with a clean platform to measure the performance of the restructured company as we move forward. In that regard, the overall book loss should not overshadow the perhaps equally extraordinary performance of our Housing Group, which posted a modest pre-tax profit for the full year 2008.”
Sales from continuing operations for the fourth quarter fell to $18.9 million from $22.5 million for the same period in 2007 while the net loss of $52.1 million compared to a net loss of $13.8 million. Coachmen noted that the results for the included non-recurring, non-cash impairment charges of $15.2 million.
Sales for the full year were $119.6 million versus $119.2 million the previous year and the net loss, including discontinued operations, rose to $68.2 million versus a net loss of $38.8 million. Results included impairment charges of $18.6 million.
Lavers said that with the sale of its RV interests, Coachmen was now able to concentrate on its modular housing operations but that it would be “dealing with the struggles of the RV industry for many months to come.”
The company reported that the housing group posted a pre-tax profit for the year of $1.7 million compared with a pre-tax loss of ($7.4) million for the previous year.