Motorcoach Builder Country Coach Restructures, Receives Additional Funding
September 29, 2008, Junction City, OR - Motorcoach Manufacturer Country Coach, announced the completion of key internal initiatives in addition to several positive new developments, each of which bolsters the positive outlook for this well-established company.
* While gaining market share, total sales volumes at Country Coach have declined sharply over the past year due to external market pressures. The company has, over the past eight months, completely restructured itself. Jay Howard, company President & CEO, comments on this restructuring. "The entire Country Coach management group takes seriously our responsibilities as custodians of this brand and this company. We have made the difficult decisions, and taken the appropriate corrective actions. Today we are 50% smaller than when we started this initiative, and believe we are right sized for success going forward." Mr. Howard noted that the company has fewer than ten new motorcoaches in company inventory, and that staffing, payables, inventory, raw materials, and work in progress are all significantly reduced.
* Country Coach LLC's key investors, led by Bryant Riley, have reaffirmed their long-term commitment to Country Coach's success. Adding to the millions of dollars this group has invested in Country Coach since February 2007, the investing partners have committed an additional $6 million in new cash to ensure the company can maintain an aggressive position relative to product quality, lean manufacturing initiatives and new R & D projects like the exciting new Veranda line of coaches. Mr. Riley expressed confidence in the company's current and forward position. "At this moment, Country Coach is right sized to the market, is extremely clean on raw material and in-process inventories and is the industry's premier brand. This investment group is dedicated to supporting this company as a leader in the re-emergence of this challenged industry."
* In a show of their ongoing support, the company's supplier partners have recently worked significantly with Country Coach, allowing the company the opportunity to return to normalized operations quickly.
* Country Coach's elite group of dealer partners across North America have over the last nine months assisted in the substantial reduction of the company's finished goods inventory. Jim Howard, Sr. Vice President of Sales & Service, congratulated these dealers on the results of their collaboration. "Due to their diligence," Dr. Howard said, "we are able to look forward to building them the latest coaches with the newest amenities."
* Recognizing the challenging marketplace, the customers of Country Coach have rallied to show their support for their favorite motorcoach builder. At the factory in Junction City, Oregon, over the past week countless cards and letters have begun arriving in the mail, each expressing words of encouragement to the hardworking people that are Country Coach. "We are very pleased with these expressions of support from our customers and friends," said President & CEO Jay Howard. "To each person who took the time to write, Thank You for reminding us why we are here. We'll keep building the best, so you can continue to enjoy the "Worlds Finest Motorcoaches."
In addition to launching an initiative to normalize all vendor relations that may have become stressed through challenging times, any Country Coach plant operations that have been suspended over the past weeks will be reactivated in the next 10 days. "Though we will be running at a build-rate well below a year ago, we will return to full operations," said Jay Howard. "At our new production levels we are properly aligned with current market conditions and positioned to soon return to profitability."
Located in Junction City, Oregon, in 2008 Country Coach celebrates 35 years building highline Class A diesel motorcoaches within four brand divisions. These include Country Coach Motorcoaches, Country Coach Veranda, Country Coach Bus Conversions and DynoMax Chassis. For more information on the company and its motorcoaches, please contact Matt Howard, Vice President, Marketing and Sales Administration at 800-654-0223.