> SUBSCRIBE FOR FREE! 

National RV Holdings Inc. reported its ninth consecutive quarterly loss today (Oct. 28), but President and CEO Brad Albrechtsen believes it is “fast approaching profitability.”
The parent of National RV and Country Coach reported a net loss of $304,000 for the three months ended Sept. 30, which represents a vast improvement over the $9.8 million it lost during the July-through-September portion of 2002.
National RV Holdings’ loss in the third quarter of 2002 included a $6.1 million noncash charge to account for goodwill impairment.
After the first nine months of this year, the firm’s net loss amounted to $7.1 million, compared with a loss of $14.5 million in the first nine months of last year.
Although Albrechtsen is not revealing when he believes the firm will return to profitability, he said its financial performance is improving because of increasing demand for its products, particularly the 2004 National RV Tropi-Cal diesel and Country Coach Inspire diesel Class A motorhomes, and cost-cutting efforts.
“The fourth quarter is historically seasonally slower with added (profit) margin pressure due to holiday shut-downs, so we are not anticipating significant improvement in Q4 compared to Q3, but so far demand remains strong,” Albrechtsen said.
The improved demand for National RV Holdings’ motorhome products was reflected in the company’s 26% increase in third-quarter sales revenue to $91.3 million, compared with $72.4 million a year earlier.
The National RV division’s sales increased 15% in the third quarter to $48.1 million and Country Coach’s were up 34% to $42 million.
The vast majority of the sales increase occurred after June 30, because, in the first nine months of this year, National RV Holdings’ sales revenue increased only a marginal 1.5% to $242.9 million, compared with $239.2 million a year earlier.
The National RV division’s sales revenue increased 4% in the first nine months of this year to $149.9 million while Country Coach’s sales declined 2% in the period to $91.2 million.