Motorhome builder National RV Holdings Inc. filed its long-overdue 2004 annual report with the Securities and Exchange Commission on Tuesday (Oct. 11) and answered questions about its ability to stay afloat.
According to the Press-Enterprise, the Perris, Calif.-based manufacturer lost $9.3 million, or 91 cents a share, in 2004, its third-consecutive money-losing year. In 2003, it lost $8.4 million, or 85 cents per share. In 2002, it lost $19.9 million.
The company, parent to Perris-based National RV Inc. and Country Coach Inc., Junction City, Ore., revealed in April that it had serious accounting problems and would have to delay its 2004 report and restate its earnings for 2000, 2001 and 2002.
Accounting firm PricewaterhouseCoopers, had identified several problems with how National RV balanced its books. Over the course of the year, the companies worked together to fix those problems, a National RV official said Tuesday.
As a result, PricewaterhouseCoopers didn’t question National RV’s future viability in its latest report, and the manufacturer said it should have “sufficient financial resources to fund its operations.”
“It created a lot of uncertainty in the marketplace and for our dealers, customer and shareholders,” National RV CEO Brad Albrechtsen said.
Still, National RV and an investment firm that follows its stock have predicted the company will continue to lose money through this year. Nevertheless, financial analyst B. Riley and Co. wrote in August that they are comfortable with the company’s sales and financial liquidity.
The company is focused on adding new dealers, cutting costs and introducing new motorhomes, including several lower-priced models.
The “big challenge” for the company will be to boost production so the factory operates at more than 40% capacity, Albrechtsen said.