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National
RV:
Net
loss
of
$24m
for
2006
4th
quarter
and
year
end
2006
results
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PERRIS,
Calif.,
March
20,
2007
-
National
R.V.
Holdings,
Inc.
(NYSE:
NVH)
(the
"Company"),
the
owner
of
RV
manufacturer
National
RV,
Inc.,
today
announced
preliminary,
unaudited
financial
results
for
its
fourth
quarter
and
year
ended
December
31,
2006.
Net
sales
declined
to
$82.0
million
in
the
fourth
quarter
of
2006,
down
23%
from
$106.5
million
in
the
fourth
quarter
of
2005.
For
the
year
ended
December
31,
2006,
net
sales
decreased
14%,
to
$397.1
million,
down
from
$463.6
million
in
2005.
The
Company
reported
a
net
loss
of
$8.1
million
for
the
fourth
quarter
of
2006
and
$24.3
million
for
the
2006
fiscal
year,
compared
to
a
net
loss
of
$7.0
million
for
the
fourth
quarter
of
2005
and
$19.8
million
for
the
2005
fiscal
year.
These
figures
correspond
to
a
net
loss
of
$0.78
per
diluted
share
for
the
fourth
quarter
of
2006
and
$2.35
per
diluted
share
for
the
year,
compared
to
a
net
loss
of
$0.67
per
diluted
share
for
the
fourth
quarter
of
2005
and
$1.91
per
diluted
share
for
the
2005
fiscal
year.
"After
beginning
2006
showing
significant
progress
in
our
turnaround
efforts,
with
continued
market
share
gains
and
reduced
losses,
the
supplier
defective
fiberglass
issue
resulted
in
substantial
unexpected
costs
and
created
a
liquidity
strain,
which
was
compounded
by
a
continued
decline
in
the
Class
A
industry
and
our
own
ensuing
strategic
process.
This
created
an
environment
of
severe
uncertainty
that
began
to
significantly
adversely
affect
the
Company,
its
employees,
suppliers,
customers,
and
dealers,"
stated
Brad
Albrechtsen,
the
Company's
president
and
chief
executive
officer.
"The
challenges
increased
in
the
third
and
fourth
quarters
of
2006,
and
continued
into
the
first
quarter
of
2007.
As
a
result,
we
expect
continued
losses
through
the
next
couple
of
quarters."
"The
turning
point
was
the
sale
of
Country
Coach
on
February
20,
2007,
which
resulted
in
the
infusion
of
$38
million
of
cash
and
enabled
us
to
pay
off
our
line
of
credit,
pay
down
our
suppliers,
and
end
the
uncertainty
of
the
process.
We
are
pleased
to
be
in
a
position
where
we
can
once
again
turn
our
full
attention
to
providing
our
dealers
and
customers
with
some
of
the
finest
motorhomes
in
the
industry,"
continued
Albrechtsen.
"The
Company
is
in
the
process
of
dramatically
resizing
itself
to
be
profitable
at
current
demand
levels,
including
significantly
reducing
our
operating
footprint
by
consolidating
onto
a
portion
of
the
Perris
property,
and
analyzing
other
alternatives.
We
are
looking
at
and
implementing
numerous
strategic
initiatives
to
increase
sales,
lower
costs,
and
increase
margins."
The
Company
also
announced
that
it
continues
to
consider
the
option
to
execute
the
sale/leaseback
transaction
as
a
way
to
generate
additional
capital
and
liquidity
and
plans
to
make
that
decision
within
the
next
few
weeks.
Wholesale
unit
shipments
of
diesel
motorhomes
for
the
quarter
ended
December
31,
2006
were
235,
down
27%
from
324
units
shipped
during
the
same
period
last
year.
Shipments
of
gas
motorhomes
for
the
fourth
quarter
of
2006
were
226,
also
down
27%
compared
to
the
308
gas
units
sold
during
the
same
period
last
year.
Total
unit
shipments
for
the
fourth
quarter
of
2005
were
461,
a
decrease
of
27%
over
the
fourth
quarter
of
2005.
For
the
year
ended
December
31,
2006,
the
Company's
wholesale
unit
shipments
of
diesel
motorhomes
were
1,187,
down
16%
from
1,411
units
during
2005.
Wholesale
unit
shipments
of
gas
motorhomes
were
1,137
for
the
twelve
months
of
2006,
down
18%
from
1,381
units
shipped
during
2005.
The
Company's
combined
diesel
and
gas
Class
A
motorhome
shipments
were
down
17%
in
2006
compared
to
2005,
while
the
average
selling
price
increased
3%
to
$171,000,
compared
to
$166,000
in
2005.
According
to
the
Recreation
Vehicle
Industry
Association,
industry-wide
shipments
of
Class
A
motorhomes
were
down
14%
in
2006
compared
to
2005.
The
gross
profit
margin
for
the
quarter
ended
December
31,
2006
was
0.2%
compared
to
2.0%
for
the
same
period
last
year.
For
the
year
ended
December
31,
2006,
the
gross
profit
margin
was
1.6%
compared
to
2.6%
for
the
year
ended
December
31,
2005.
The
lower
gross
margins
in
2006
were
due
to
costs
associated
with
the
supplier-caused
fiberglass
sidewall
problem,
significant
investments
in
new
product
introductions,
and
lower
production
rates
leading
to
lower
fixed-cost
absorption.
Operating
expenses
for
the
fourth
quarter
of
2006
declined
15%
to
$7.1
million,
or
8.6%
of
net
sales,
compared
to
$8.3
million,
or
7.8%
of
net
sales,
for
the
fourth
quarter
of
2005.
For
the
year,
operating
expenses
were
$27.6
million,
or
6.9%
of
net
sales,
which
compares
to
$30.1
million,
or
6.5%
of
net
sales,
for
the
prior
year,
a
decrease
of
8.5%.
Reductions
in
selling,
marketing
and
expenditures
related
to
compliance
with
Sarbanes-Oxley
in
2006
compared
to
2005,
were
somewhat
offset
by
increases
in
costs
associated
with
the
strategic
process
the
Company
was
involved
in
during
the
latter
part
of
the
year.
As
a
result
of
the
sale
of
the
Country
Coach
subsidiary,
the
pro
forma
net
book
value
of
the
Company
as
of
December
31,
2006
increases
by
$6.9
million
from
$36.1
million
to
$43.0
million.
The
loss
for
the
year
ended
December
31,
2006
excluding
Country
Coach
increased
by
$0.7
million
from
$24.3
million
to
$25.0
million.
The
complete
pro
forma
financial
statement
is
expected
to
be
filed
within
the
next
few
days
on
Form
8K/A
with
the
Securities
and
Exchange
Commission.
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