Coachmen Signs Intent to Build Project for US Army
ELKHART, Ind., Feb 17, 2009 /PRNewswire-FirstCall via COMTEX/ -- Coachmen Industries, Inc. (NYSE: COA) today announced that its major projects subsidiary, All American Building Systems, LLC (AABS), has received a letter of intent to build housing for the United States Army at Fort Bliss, located near El Paso Texas. The agreement represents a total potential value of $21.3 million to All American.
It is expected that construction will begin in April this year with continuous shipments to Fort Bliss through mid-June for approximately $6.1 million. The letter of intent includes seven barracks buildings, five of which have not yet been funded by Congress. The first two will house nearly 300 unaccompanied enlisted soldiers and require nearly 150 tractor-trailers for transport to El Paso. All American successfully completed a larger but similar contract for the Army at Fort Bliss in 2008.
"We are honored to once again be chosen by the US military to provide exceptional quality housing for our troops," said Rick Bedell, President of All American Building Systems. "Our systems-built, Parallel Construction(TM) process enables us to avoid most of the weather related issues that often plague traditional construction practices. In-plant and on-site efficiencies translate into higher quality, lower cost projects benefiting project owners and in this case, taxpayers as well," said Bedell.
The letter of intent further indicates that the remaining five buildings will be awarded to All American, subject to additional military funding. The additional work would be worth approximately $15.2 million to AABS.
Coachmen Industries, Inc. is one of America's premier manufacturers of systems-built construction, as well as specialty vehicles. Through ALL AMERICAN HOMES(R) and MOD-U-KRAF(R), the Company is one of the nation's largest producers of systems-built homes, and also a major builder of commercial and multifamily residential structures with its ALL AMERICAN BUILDING SYSTEMS(TM) products. Coachmen Industries, Inc. is a publicly held company with stock listed on the New York Stock Exchange (NYSE) under the ticker COA.
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. 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, increased interest rates, the availability for floorplan financing for the Company's builders and corresponding availability of cash to Company, the ability of the Company to generate taxable income in future years to utilize deferred tax assets and net operating loss carry-forwards available for use, the availability and the price of gasoline, price volatility of raw materials used in production, the Company's dependence on suppliers, the availability and cost of real estate for residential housing, the supply of existing homes within the Company's markets, the impact of home values on housing demand, the impact of the availability of credit for the broader housing market, competition, government regulations, dependence on significant customers within certain product types, consolidation of distribution channels, consumer confidence, uncertainties of matters in litigation, and other risks identified in the Company's SEC filings.
For product information:
Mike Donley
Director of Marketing and Communications
574-266-2533
For investor or financial information:
Thomas Gehl
Secretary and Director of Investor Relations
574-266-2531
All American Homes, LLC
2831 Dexter Drive
Elkhart, IN 46515
PH: 574-266-2533
FX: 574-266-3044
mdonley@allamericanhomes.com
SOURCE Coachmen Industries, Inc
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