Cavco Industries, Inc. (Nasdaq: CVCO) and Fleetwood Enterprises, Inc. (OTC Bulletin Board: FLTWQ) announced that that they have signed an indication of interest in which Cavco and an investment partner, Third Avenue Trust Value Fund (TAVFX), have offered to purchase certain of Fleetwood's assets comprising its manufactured housing business. Cavco, headquartered in Phoenix, Ariz., is a leading producer of manufactured housing, park model homes, and vacation cabins in the United States. Third Avenue Management, the investment adviser to Third Avenue Value Fund, is a New York-based company with expertise in value and distressed investing.

Fleetwood is a producer of recreational vehicles and manufactured housing and has been operating under Chapter 11 protection since March 10, 2009. The company is in the process of filing a sales and bidding procedures motion with the United States Bankruptcy Court; the motion is expected to be heard on or around July 7, 2009. The motion will describe the terms of the transaction and proposed procedures for any competing bids for the business.

Cavco and Third Avenue's $28.9 million "stalking horse" bid is subject to execution of a definitive acquisition agreement (with customary conditions to closing) and bankruptcy court approval. The purchase price is subject to adjustment for the assumption of certain warranty liabilities and other customary post-closing adjustments. The Fleetwood assets proposed for purchase include seven manufactured housing plants, one office building, all related equipment, accounts receivable, inventory, certain trademarks and trade names, intellectual property, and specified contracts and leases. The manufactured housing plants are located in Nampa, Ida.; Woodburn, Ore.; Riverside, Calif.; Waco, Tex.; Lafayette, Tenn.; Douglas, Ga.; and Rocky Mount, Va. The proposed purchase does not include the company's operating plants in Alma, Ga., Elizabethtown, Penn. and Garrett, Ind. The facilities included in the proposed purchase currently employ more than 700 people in seven states. Fleetwood will continue to solicit bids for all of its operating facilities.

"The Fleetwood brand is one of the strongest in the industry, and we are excited to have this opportunity to integrate Fleetwood's strong family of product offerings with our own growing business," said Joe Stegmayer, Cavco president and chief executive officer. "We look forward to supporting Fleetwood's operating factories and experienced people as they continue to serve their excellent independent retailer network."

According to Elden L. Smith, Fleetwood's president and chief executive officer, the company's manufactured housing group is the second largest builder of manufactured homes in North America with "an excellent reputation for high quality, innovative product. The group has operated profitably in recent years. We anticipate the buyer of this business will continue the majority of Fleetwood's existing operations at the facilities purchased."

Winnebago Industries, Inc. (NYSE:WGO - News), will celebrate the 40th anniversary of its Winnebago-Itasca Travelers (WIT) Club with club members at the Grand National Rally (GNR) scheduled July 19 – July 24, 2009.

“While the economy is certainly challenging, WIT members aren’t changing their lifestyle,” said WIT General Manager Doug Formanek. “To date, 1,175 coaches are registered, and we anticipate a total of 1,225 for our week-long event. That’s down only 20 percent from last year’s milestone event that celebrated Winnebago Industries 50th anniversary. Regardless of economic factors, our owners love the RV lifestyle and our attendance numbers reflect just that.”

Held at the rally grounds across from Winnebago Industries’ headquarters in Forest City, the 40th Anniversary GNR promises to be an active week, filled with informative seminars, great entertainment and most importantly, fun.

“Since the first WIT GNR and Woodstock were both held in 1969, we felt is was appropriate to celebrate with the theme of “WITStock” for WIT’s 40th Anniversary GNR,” Formanek said. “More than 2,800 people are expected to attend the event.”

Although the rally officially doesn’t begin until July 19, WIT members typically start arriving as early as two to three weeks early for pre-rally events and to participate in Forest City’s Puckerbrush Days activities.

“It’s not too late to register,” Formanek added. “WIT members that are interested can call 1-800-643-4892, ext. 1, or visit www.witclub.com and click on the “Special GNR Edition” tab for details about the event and registration information.”

The WIT Club is open to anyone who owns a Winnebago Industries motor home and current membership totals more than 14,000 members. WIT members are eligible for special member benefits, gather often with WIT local, state, regional and special interest clubs, and travel on a variety of WIT Club managed special events called caravans and rallies.

RVIA’s Board of Directors capped an intense week of activity at Committee Week by approving an increase of the RVIA seal price to $35 to help address the growing pressure on the association’s budget caused by the reduction in show and dues income due to the downturn in the RV market.

“This decision was given very serious consideration by the RVIA Executive Committee and Board of Directors,” said RVIA President Richard Coon. “There was overwhelming support for the action to avoid any further program cuts or staff reductions that would have compromised RVIA’s mission to promote and protect the interest of our membership and the RV industry.”

Two rounds of program and staff cuts in September 2008 and February 2009 saw a $3.2 million lowering of the RVIA budget and the loss of nearly 25% of association staff. More cuts would have been needed in the fiscal year 2010 budget due primarily to a severe decrease in association revenue caused by the declines in exhibit space reservations at the association’s two RV shows. The wholesale National RV Trade Show is currently down nearly 35% while the consumer California RV Show has seen a nearly 70% reduction in demand for show space.

“The increased seal cost is needed to cover a significant shortfall in RVIA income. This will not yield a net increase to the very conservative budget we’ve operated under for the past year. In fact, even with the new seal revenue the association will be operating with $2.5 million less than we did in 2008,” explained RVIA Chairman Jim Sheldon. “From the Board of Directors’ perspective, the increase was essential to preserve the viability of the association. We did not want to suffer any further reductions in services at this critical time when the industry needs RVIA the most.”

The $30.95 seal fee increase will apply to all member manufacturer vehicle types and, added to the existing $4.05 cost, brings the total now to $35. In addition to the RVIA seal cost, the per unit assessment for Go RVing remains in place at the current levels of $46 for folding camping trailers and truck campers; $61 for travel trailers and 5th wheel travel trailers; and $74 for motorhomes. The new seal cost will take effect on July 1, 2009.

In other actions, during their meeting on June 11 held in Washington, D.C. at RVIA’s Committee Week, the RVIA Board:

• amended the association bylaws to encourage greater member participation on the RVIA Board of Directors. Through the revisions, those holding a Past Chairman seat on the Board may elect to serve indefinitely in a non-voting seat designated as Past Chairman Emeritus. This will allow another representative from their member company to serve on the Board in a voting capacity. Additionally, association members who hold more than one classification of membership (i.e., a separate manufacturer and supplier membership) may have voting member representatives from each of those respective classifications on the Board.
• voted to hold a combined Annual Meeting and Committee Week event in South Bend, Ind. in June 2010 with the intent of returning the Committee Week event to Washington, D.C. in 2011. Additionally, RVIA will hold its Spring Board of Directors meeting and a related Capitol Hill Advocacy Day event in Washington, D.C. in March 2010.
• approved the recommendation that Tim Tiffin of Tiffin Motor Homes replace Bob Tiffin as a member of the RVIA Board of Directors.
• adopted the CARB implementation timeline for Phase 2, based on the date of manufacture. Phase 2 sets lower formaldehyde targets for building materials including hardwood plywood-veneer core, particle board and medium density fiberboard. RVIA's Standards Department will issue a Standards News Bulletin providing further details on the requirements.
• voted to allow any RV manufacturer that had purchased space in the California RV Show by March 30, 2009 the ability to purchase up to 50% more space at a rate of $2 per square foot on a first-come, first-served basis. Additionally, vehicles to be displayed at the show are limited to each manufacturer’s current and previous model year, not including 2008 models, and the previous model year may only consist of up to 50% of the total number of units.
• increased the availability of “be-back” tickets to manufacturers and dealers exhibiting at the California RV Show and added an additional dollar admission day to the event, bringing the total number of dollar days to four.
• approved the FY2010 RV Market Expansion and Reinforcement Program proposed by Barton-Gilanelli & Associates, subject to budget considerations. This consists of the RV Top-of-Mind Awareness Program, including national electronic and print media outreach, social media initiatives, RV media luncheons, and RV spokesperson activity.
• approved a motion to be forwarded to the Certification Governing Board modifying the continuing education requirements from 48 to 40 credit hours, or completion of a Trouble Shooter Clinic or the Certification Test Prep Course.
• approved the creation of a two-tier RV technician career path with the development of the supporting DACUMS (Developing A CurricuLUM) to be completed in early 2010.
• established a standing technical subcommittee on Foreign Affairs to the Standards Steering Committee.
• commissioned a task force of Supplier Committee and National Show Committee members to explore methods to showcase innovative technologies and future trends at the National RV Trade Show.
• named the following as RVIA representatives on the RVDA-RVIA Certification Governing Board: Jeff Rutherford (Certification Governing Board vice chairman), Carefree of Colorado; Garry Enyart, Onan/Cummins Power Generation; Jack Tierney, Thetford Corp.; Dave Eash, Jayco, Inc.; Steve Evenson, Winnebago Industries; Janae Kurtz, Damon Corp.

RVIA’s Committee Week 2009 drew 170 attendees to the Willard InterContinental Hotel in Washington, D.C. where the association’s standing committees, Go RVing Coalition, the RVIA Executive Committee and RVIA Board of Directors met to prepare for the upcoming fiscal year.

The Go RVing Coalition has approved the creation of new television ads to begin airing in early 2010 to keep RV travel prominently in the minds of consumers as the economy rebounds. The unanimous motion was passed at the Coalition’s June 8 meeting during RVIA’s Committee Week in Washington, DC, giving The Richards Group of Dallas, Texas the go-ahead to begin concepting two-to-three new, low-cost spots with timely messaging about the value of RV ownership and travel.

Utilizing cost-effective, new production techniques, Go RVing will maximize the value of its unused creative materials. The ads are expected to be a combination of existing footage and still photographs in the Go RVing archives animated with special effects. To highlight some of the industry’s newer, greener vehicles, a small-scale supplemental production shoot may be held in the Elkhart area prior to the ads’ creation.

“This economical approach to production would give Go RVing an opportunity to highlight a strategic 'affordability/value' message for 2010-2011 and maximize funding available for ad buys,” said RVIA Vice President and Chief Marketing Officer Gary LaBella. “And perhaps most importantly, the quality of the creative and the overall look and feel of the campaign would be consistent with the brand and with the updated print ads that began running this year.”

Tom Stinnett of Tom Stinnett RV Freedom Center, Co-Chairman of the Go RVing Coalition, agreed. “There is no question that dealers approve of all that Go RVing is doing. In times like these, when their own advertising resources are strained, they appreciate that someone is still getting out our message in a powerful way. At my dealership, I’m seeing more first-time buyers coming in who already have a lot of information. I believe they are getting it from Go RVing.”

“It’s a good time to revitalize the Go RVing campaign with new TV commercials,” said Coalition member BJ Thompson of industry ad agency BJ Thompson Associates. “The staff’s recommendation to apply innovative new production techniques to existing images is an excellent way to do more with less, maintain our impact and freshen our messages for these times.”

Chad Reece, director of marketing for Winnebago, agreed that “having new creative next year will help the industry." Bob Parish, vice president of GE Capital Solutions, added, “Business is picking up, and I believe this is a timely move to energize the industry and the campaign."

The new television spots will be produced in the fall of 2009 and will be ready for debut at the National RV Trade Show in Louisville.

In his remarks at RVIA’s Membership Meeting June 9, RVIA Chairman of the Board Jim Sheldon (pictured at right) reviewed the turbulent year the RV industry and the association have faced, and pointed to signs that the nation’s economy may be beginning to recover, saying, “Whereas last year, we were about to unknowingly walk off an economic cliff; this year, we are beginning the resolute climb back to recovery with a far more clear picture of what we are dealing with.”

“Like all of us, RVIA has had to make some very painful decisions – to slash budgets and to do more with less. But one thing that has not been downsized or compromised is RVIA’s strong and ongoing commitment to advancing and protecting the interests of the membership,” Sheldon said.

Sheldon pointed to a wide range of activities conducted by RVIA in the areas of government affairs, public relations, standards, industry education and shows to protect and advance the RV industry, even with a reduced budget.

He praised successful efforts to further the RV industry’s interests in Washington, and highlighted the association’s success in ensuring that RV consumer and wholesale floor plan loans were included in the government’s Term Asset-Backed Securities Loan Facility, and in securing a tax provision for motorhomes in the American Recovery and Reinvestment Act of 2009. Additionally, Sheldon pointed to the association’s most recent victory to help free up RV financing when the Small Business Administration expanded its loan programs to provide more sources of capital for the RV industry. “These were all hard-fought, significant victories for the RV industry, and we applaud the members, staff and all our industry partners who contributed to these achievements,” he said.

Sheldon also lauded the “one-two punch” of RVIA’s public relations and marketing efforts and the Go RVing Coalition’s national ad campaign to maintain positive awareness of RVing “at a critical time when consumers may be finally relaxing the grip on their wallets.” Sheldon said, “Despite all the dour economic news this year, the image of RVs has remained highly positive in the business and consumer media. Coverage depicts RVs and RV travel as popular, affordable and relevant in today’s economy, as well as becoming increasingly green.”

Sheldon reported that RVIA’s standards program continues to “operate on all cylinders.” Despite budget cuts and staff reductions, the association has maintained the same inspection schedule to audit manufacturer members’ compliance with the NFPA RV Standard, and is “working at every opportunity to harmonize this standards with the Canadian Standard Association regulations to provide uniformity for our members.” The standards department is also continuing to develop the RV Service Technician Database, which will “serve as a one-stop repository of RV service information, providing technicians with a single online resource for troubleshooting, repair documents, and service questions for all RV products currently being manufactured.”

Of course, Sheldon said, the California RV Show and the National RV Trade Show are the primary focus of the association in the coming months, as the shows “have the potential to be a powerful springboard for the RV industry.” Sheldon urged members to exhibit at the shows, saying, “having a strong presence at the shows makes a powerful statement to the financial community and the media about the industry’s overall viability.”

RVIA Treasurer Don Walter of Jayco discussed the financial condition of the association, reporting that the association concluded FY2008 with a net operating loss of $642,453, before unrealized investment losses. The annual Treasurer’s Report examines operational expenses, revenue streams, and membership equity for the past twelve months. Walter reported that FY2008 revenues were $14,072,195 with expenses of $14,714,648.