COACHMEN INDUSTRIES, INC. The Wall Street Analyst Forum June 1, 2005

Transcription

1 COACHMEN INDUSTRIES, INC. The Wall Street Analyst Forum June 1, 2005

2 SAFE HARBOR DISCLAIMER This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of Investors are cautioned not to place undue reliance on forward-looking statements, which are inherently uncertain. Actual results may differ materially from that projected or suggested due to certain risks and uncertainties including, but not limited to, the potential fluctuations in the Company s operating results, the availability for floorplan financing for the Company s recreational vehicle dealers and corresponding availability of cash to Company, the condition of the telecommunications industry which purchases systems-built structures, the impact of performance on the valuation of intangible assets, the availability and the price of gasoline, price volatility of raw materials used in production, the Company s dependence on chassis and appliance suppliers, interest rates, the availability and cost of real estate for residential housing, the ability of the Housing and Building segment to perform in new market segments where it has limited experience, adverse weather conditions affecting home deliveries, competition, government regulations, legislation governing the relationships of the Company with its recreational vehicle dealers, consolidation of distribution channels in the recreational vehicle industry, consumer confidence, further developments in the war on terrorism and related international crises, oil supplies, and other risks identified in the Company s SEC filings.

3 KEY INVESTMENT POINTS Coachmen is a turnaround story. We are investing in our future New Products and Floorplans in RVs. New markets in Housing and Building. All American Building Systems. And generating returns Sales Net Income (cont. ops.)

4 COMPANY INFORMATION AND BUSINESS SEGMENT OVERVIEW

5 COMPANY PROFILE Founded in 1964; based in Elkhart, Indiana. Leading manufacturer of recreational vehicles. One of the largest systems-built home producers in the U.S. Major producer of systems-built commercial structures. Strong brand presence and improving market share. Rapidly expanding markets. Strong balance sheet with ample liquidity. Increasing production capacity and efficiency.

6 NET SALES ($ in millions)

7 NET INCOME ($ in millions)

8 EARNINGS PER SHARE (From Continuing Operations)

9 TWO BUSINESS SEGMENTS Recreational Vehicles Housing and Building 41 years experience Full RV line 34 total models 69% of total sales in % of total sales in years experience Residential and commercial 31% of total sales in % of total sales in 2004

10 RECREATIONAL VEHICLES Motorized RVs Three Categories Class A Diesel Motorhomes Class A Gas Motorhomes Class C Motorhomes Class A Diesel Motorhomes Price range: $140,000 - $240,000 Class A Gas Motorhomes Price range: $65,000 - $145,000 Class C Motorhomes Price range: $50,000 - $85,000 Good sequential gains in Class A & C Market share Diesel Class A Motorhome Gas Class A Motorhome Class C Motorhome

11 RECREATIONAL VEHICLES Towable RVs Three Categories Travel Trailers Fifth-Wheels Camping Trailers Travel Trailers Price range: $13,000 - $32,000 Fifth-Wheels Price range: $20,000 - $50,000 Camping Trailers Price range: $5,000 - $12,000 Travel Trailer Fifth-Wheel Camping Trailer

12 2004 RV REVENUES BY TYPE $143.7 $22.8 $422.6 Motorized Travel Trailers/5th Wheels Camping Trailers

13 2004 RV UNIT SALES BY TYPE 4,997 6,533 9,103 Motorized Travel Trailers/5th Wheels Camping Trailers

14 RECREATIONAL VEHICLES Coachmen RV Company Class A Motorhomes Class C Motorhomes Travel Trailers Fifth-Wheels Georgie Boy Manufacturing Class A Motorhomes Class C Motorhomes Viking RV Company Camping Trailers

15 RECREATIONAL VEHICLES Segment Highlights Dramatic improvement in revenues and earnings in Class A shipments up 24%. Class C shipments up 35% Sales Pre-Tax Income (cont. ops.)

16 COA RV WHOLESALE SHIPMENTS % CHANGE 2004 vs % 35% 46.8% 35.4% 25% 15% 23.5% 16.9% 5% -5% -15% -0.7% -11.0% Class A RD's Class C Trailer 5th Whl. Cmp. Trl.

17 RECREATIONAL VEHICLES Manufacturing Plants and Retail Dealers COA manufactures all RV product lines. 3 production hubs 2 new state-of-the-art plants. 670 retail dealers. Loyal dealers 45% with CRV > 5 years, 21% > 10 years. 40% of sales from exclusive dealers. Indiana Middlebury (Coachmen RV) Michigan Edwardsburg (Georgia Boy) Centreville (Viking) Georgia Fitzgerald (Coachmen RV)

18 RECREATIONAL VEHICLES Consistent Long-term Growth in RV Industry Sales Wholesale Shipments ($billions) % CAGR Source: RVIA

19 RECREATIONAL VEHICLES Households by Age of Householder Demographics favor increasing RV demand. Aging of Baby Boomers through Growing the core RV target market. Baby Boomers have more discretionary income. Expansion of peak RV buying age Million +6.4 Million +1.5 Million Age Age Age 65-74

20 RECREATIONAL VEHICLES Baby Boomer Psychographics Love of Travel. Desire for freedom in leisure activities. Importance of flexibility while making travel plans. Strong desire to spend leisure time with family and friends. Desire for safety. RV s offer a perfect solution in fulfilling all of these demographic hot buttons.

21 RECREATIONAL VEHICLES Go RVing. Pursue your Passions Industry Campaign Started in 1997, sponsored by RV manufacturers, suppliers, dealers and campgrounds. Goals increase the RV and campground industry s share of discretionary consumption (30s, 40s, 50s). $50 million campaign (Phase III ) includes TV, print and internet.

22 HOUSING AND BUILDING Segment Highlights Growing market for residential homes. Growth in new markets: Multi-family residential, including apartments and dormitories. Assisted living centers. Hotels and motels. Urban infill projects and affordable housing.

23 HOUSING AND BUILDING Segment Highlights 2004 sales up 16.1% to $259 million pre-tax income up 14.2% to $8.3 million Sales Pre-Tax Income (cont. ops.)

24 HOUSING AND BUILDING Residential Structures One of the largest systems-built home producers in U.S. Quality constructed residential homes built to the same standards as traditional stick-built homes. These are not mobile homes or doublewides. Homes are built in 6 to 8 weeks from receipt of order. Most homes are delivered, set and made weather-tight in just one day. Top Photo Mod-U-Kraf s 1,824 sq. ft. Phoenix southern beach home. Bottom Photo 2,400 sq. ft. Ameri- Log Cedar Ridge model.

25 HOUSING AND BUILDING Commercial Structures Wide range of applications: multistory office, schools, lodging, medical facilities, banks, etc. All American Building Systems (AABS) should enhance growth and efficiency. AABS should allow for enhanced channel marketing to target the best growth markets. Enhance productivity through more efficient allocation of production throughout our plants.

26 HOUSING AND BUILDING Dyersville, IA Elkhart, IN Decatur, IN Milliken, CO Leola, PA Osage City, KS Zanesville, OH Rocky Mount, VA Rutherfordton, NC Springfield, TN Housing & Building Plant Locations 10 Plants covering 37 states. All American Homes Mod-U-Kraf Miller Building Systems

27 FINANCIAL OVERVIEW

28 NET SALES ($ in millions) $865 $910 $570 $651 $ E 2005 Annualized based on management guidance at 1Q05.

29 NET INCOME ($ in millions) $9.6 $13.4 $ $6.9 ($4.3) E 2005 Annualized based on management guidance at 1Q05.

30 EBITDA ($ in millions) $25.5 $28.8 $20.4 $14.9 $7.8 $ YTD

31 A CHALLENGING FIRST QUARTER As a company, we were not satisfied with our first-quarter results. There were a number of unusual items in the quarter Settlement with The Coleman Company, Inc. Significant marketing initiatives in RVs Continued investment in AABS and Housing initiatives Sales (1.4) Net Income (cont. ops.)

32 STRONG FINANCIAL POSITION March 31, 2005 Cash and marketable securities Long-term debt Total shareholders equity $ 6.6 million $ 14.7 million $221.4 million Debt/capitalization ratio 6.2%

33 A SOLID VALUE Coachmen represents a solid value investment Attractive valuation relative to peers P/E lower than our peers Price/Book ratio lower than our peers COA Peers P/E Price/Book Peer data based on Reuters Investor data.

34 KEY INVESTMENT POINTS Coachmen is a turnaround story. Coachmen is a solid value. We are investing in our future. Growth in sales and earnings. Solid management team. Strategic investments in new markets. And we are generating results.

35 COACHMEN INDUSTRIES, INC.