Higher operational costs and product discounting contributed to a first quarter net loss for Perris, Calif.-based National RV Holdings Inc.
The company, parent to Country Coach Inc., Junction City, Ore., and Perris-based National RV Inc., reported a net loss of $1 million for the three-month period compared to a net profit of $1.2 million the year prior.
Sales for the first quarter rose 22% to $125.6 million versus $103.1 million last year, marking the seventh straight quarter the company has increased revenues.
“We are encouraged by the increase in demand that we have seen for our products,” said Brad Albrechtsen, president and CEO. “Sales this quarter resisted the downward trend that was expected by industry analysts as a result of the increases in fuel prices and declining consumer confidence.
“The continued strength of the company’s highline products, the addition of new dealers, the introduction of new product lines and improved dealer incentive programs have all contributed to the sales increase.”
Albrechtsen noted, however, that high inventory levels on dealers lots had led to adjustments in production and increased discounting.
“These higher dealer inventories have caused us to reduce production rates and increase discounting in the current quarter, compared to the first quarter,” Albrechtsen said.
In addition, National RV Holdings said it found additional restatements, and is still working on its fiscal 2004 financial statements. The company said it will file quarterly and annual reports with the Securities and Exchange Commission “as soon as practicable.”