Oakwood Homes Corporation Reports Results For the Second Quarter of Fiscal 2001

Apr 26, 2001, 01:00 ET from Oakwood Homes Corporation

    GREENSBORO, N.C., April 26 /PRNewswire/ --
     Oakwood Homes Corporation (NYSE:   OH) today reported results of operations
 for the second quarter of fiscal 2001.
     For the three months ended March 31, 2001, the Company reported a net loss
 of $28.0 million, or $0.60 per share, compared with a net loss of
 $12.0 million, or $0.26 per share, in the second quarter of fiscal 2000.  For
 the six months, the Company reported a net loss of $71.0 million, or $1.51 per
 share, compared with a net loss of $26.8 million, or $0.58 per share, in the
 comparable fiscal 2000 period.
     Because the Company has operated at a loss in its two most recent fiscal
 years and because management believes difficult competitive conditions will
 continue for the foreseeable future, management believes that under the
 provisions of Statement of Financial Accounting Standards No. 109, it is not
 appropriate to record income tax benefits on current losses in excess of
 anticipated refunds of taxes previously paid.  As a consequence, the Company's
 results for the quarter and six-month periods ended March 31, 2001 do not
 reflect a benefit from income taxes, notwithstanding the fact that the Company
 reported losses for both periods.  Had the Company recorded a tax benefit, the
 net loss for the quarter and six-month periods ended March 31, 2001 would have
 been reduced by $10.1 million, or $0.21 per share, and $25.6 million, or $0.54
 per share, respectively.
     During the quarters ended March 31, 2001 and March 31, 2000, the Company
 recorded pre-tax charges of $0.4 million and $0.7 million, respectively,
 relating to the impairment of the value of certain retained interests in loan
 securitizations.
     The results for the current year's quarter reflect the completion of a
 $226.9 million securitization.  The securitized amount included approximately
 $26 million principal balance of securities which Oakwood had retained from
 asset-backed transactions closed in 1999 and 2000.  In connection with the
 securitization, the Company recorded a pre-tax gain of $4.6 million compared
 to a pre-tax loss of $2.4 million in the second quarter of fiscal 2000.  Also
 included in the second quarter of fiscal 2000 was a $4.4 million loss arising
 from the sale of asset-backed securities retained by the Company.
     At March 31, 2001, short-term borrowings outstanding under the Company's
 revolving credit facility and the three-year loan purchase facility were
 $13.0 million and $17.0 million, respectively.  Amounts outstanding vary based
 on the timing of asset-backed securitization transactions.  The Company is
 negotiating a new revolving credit facility, which would provide longer-term
 liquidity than the current facility that matures on October 1, 2001, although
 there can be no assurance that the Company will be able to finalize the
 facility.  Management believes that its credit facilities are sufficient to
 meet the Company's cash needs given its current level of operations.  As of
 March 31, 2001, the Company is in compliance with the covenants contained in
 its credit facilities.
     Duane D. Daggett, President and Chief Executive Officer, stated:
 "Extremely competitive industry conditions continued to negatively affect
 operating results this quarter.  These conditions are expected to continue
 until inventory supply comes into balance with consumer demand.
     "Since the beginning of the industry's contraction cycle in 1999, Oakwood
 has remained committed to the preservation and improvement of cash flow and
 liquidity.  The decisions resulting from this commitment more often than not
 penalized earnings.  Since October 1, 1999, we have reduced our inventories by
 approximately $175 million (including $14.7 million during the quarter just
 ended) and have replaced our 360-day revolving warehouse credit facility with
 a three-year loan purchase facility.  We have closed plants, sales centers and
 offices, downsized our staff and cut expenses across the board.  Our
 manufacturing segment was realigned to promote operational efficiencies and
 ensure accountability for results.  Additionally, we have centralized all
 customer care and service initiatives in order to ensure a consistent level of
 quality and timeliness and to reduce costs.  Our successful inventory
 reduction efforts over the winter have enabled us to introduce new home models
 in time for late spring and early summer.  Most recently, we announced a
 substantial reorganization of our retail segment.  Effective April 1, the new
 regional concept provided for additional support in specialized functional
 areas, which should increase sales and improve cost control.  Each of these
 initiatives was designed to better position Oakwood for the industry's turn,
 and we believe that we have accomplished a great deal during extremely
 difficult times."
     Mr. Daggett continued:  "Retail sales for the quarter ended March 31, 2001
 were $130.9 million compared with $176.2 million in the second quarter last
 year, while total sales declined from $271.3 million to $208.1 million.  Total
 revenues were $243.3 million in the second quarter of fiscal 2001 compared
 with $302.8 million in the second quarter of fiscal 2000.  Total new homes
 sold at retail declined from 3,716 units in the second quarter of fiscal 2000
 to 2,738 units in the second quarter of fiscal 2001.  At the end of March, we
 were operating 355 retail sales centers compared to 375 in fiscal 2000.
 Competitive industry conditions also affected wholesale sales, which declined
 by 18.8% in the second quarter of fiscal 2001 compared to the prior year's
 second quarter.
     "Our gross profit margin was 19.1% in the second quarter compared to
 20.6% in the prior year.  The decline reflects competitive pricing,
 promotional programs designed to lower inventory levels and reduced plant
 operating schedules.  At March 31, we were operating 21 plants at reduced
 production rates, having closed or temporarily idled 13 other plants.
     "Selling, general and administrative expenses as a percentage of sales
 were 34.9% compared to 29.0% in the second quarter of fiscal 2000.  Although
 general and administrative expenses were $5.6 million lower than in the prior
 year, this improvement was offset by higher selling expenses, which increased
 as a percentage of sales principally as a result of certain salesperson
 incentives associated with the reduction of inventory levels along with the
 fixed nature of certain selling expenses in the face of lower retail sales.
     "The delinquency rate on Oakwood-originated contracts was 3.8% at
 March 31, 2001 compared to 5.8% at December 31, 2000 and 3.5% one year ago.
 At quarter end, approximately 3,899 repossessions were on hand compared with
 2,809 at March 31, 2000 and 3,287 at December 31, 2000."
     Mr. Daggett concluded by saying:  "As we move into the historically
 stronger spring and summer months, we will continue our focus on cost
 containment, inventory reduction and cash flow improvement."
     Oakwood Homes Corporation and its subsidiaries are engaged in the
 production, sale, financing and insuring of manufactured housing throughout
 the United States.  The Company's products are sold through approximately
 355 Company-owned stores and an extensive network of independent retailers.
 
     This press release contains certain forward-looking statements and
 information based on the beliefs of the Company's management as well as
 assumptions made by, and information currently available to, the Company's
 management.  These statements include, among others, statements relating to
 our ability to negotiate a new revolving credit facility, the sufficiency of
 our current facilities to meet our cash needs given our current level of
 operations, and our new regional concept increasing sales.  Words like
 "believe," "expect," "should," and similar expressions used in this press
 release are intended to identify other such forward-looking statements.
     These forward-looking statements reflect the current views of the Company
 with respect to future events and are subject to a number of risks, including,
 among others, the following:  competitive industry conditions could further
 adversely affect sales and profitability; the Company may be unable to access
 sufficient capital to fund its operations; the Company may not be able to
 negotiate a replacement revolving credit facility for its existing facility
 which expires on October 1, 2001; the Company may recognize special charges or
 experience increased costs in connection with securitizations or other
 financing activities; the Company may recognize special charges or experience
 increased costs in connection with restructuring activities; adverse changes
 in governmental regulations applicable to the Company's business could
 negatively impact its business; the Company could suffer losses resulting from
 litigation; the captive Bermuda reinsurance subsidiary could experience
 significant losses; the Company could experience increased credit losses or
 higher delinquency rates on loans that it originates; negative changes in the
 general economic conditions in its markets could adversely impact the Company;
 the Company could lose the services of its key management personnel; and any
 other factors that generally affect companies in its lines of business could
 also adversely impact the Company.  Should the Company's underlying
 assumptions prove incorrect or should one or more of the risks or
 uncertainties materialize, actual events or results may vary materially and
 adversely from those described herein as anticipated, expected, believed or
 estimated.
 
 
                           OAKWOOD HOMES CORPORATION
 
                Consolidated Statement of Operations (Unaudited)
 
                 (Amounts in thousands, except per share data)
 
                                   Three months ended       Six months ended
                                        March 31,               March 31,
                                     2001      2000         2001         2000
 
     Revenues
       Net sales
        Retail                   $130,877  $176,245     $303,748     $358,879
        Wholesale                  77,184    95,104      159,518      209,964
                                  208,061   271,349      463,266      568,843
       Financial services income
       Consumer finance, net of
        impairment and valuation
        provisions                 23,702    14,588       24,286       21,604
       Insurance                    9,410    14,595       19,489       30,431
                                   33,112    29,183       43,775       52,035
 
       Other income                 2,136     2,272        4,483        5,378
        Total revenues            243,309   302,804      511,524      626,256
 
     Costs and expenses
       Cost of sales              168,349   215,511      372,187      451,760
       Selling, general and
        administrative expenses    72,585    78,642      152,235      156,203
 
       Restructuring charges           --    (4,351)          --       (4,351)
 
       Financial services
        operating expenses
         Consumer finance          10,276    10,361       19,547       21,652
         Insurance                  4,674     8,221        7,734       16,937
                                   14,950    18,582       27,281       38,589
 
       Provision for losses
        on credit sales             2,250       740        3,000        1,500
 
       Interest expense            13,219    12,995       27,815       25,825
     Total costs and expenses     271,353   322,119      582,518      669,526
     Loss before income taxes     (28,044)  (19,315)     (70,994)     (43,270)
     Provision for income taxes        --    (7,339)          --      (16,442)
 
     Net loss                    $(28,044) $(11,976)    $(70,994)    $(26,828)
 
     Loss per share
       Basic                     $  (0.60) $  (0.26)    $  (1.51)    $  (0.58)
       Diluted                   $  (0.60) $  (0.26)    $  (1.51)    $  (0.58)
 
     Weighted average number of
      common shares outstanding
       Basic                       47,105    46,574       47,055       46,565
       Diluted                     47,105    46,574       47,055       46,565
 
 
                           OAKWOOD HOMES CORPORATION
 
                     Consolidated Balance Sheet (Unaudited)
 
                                               March 31,    September 30,
                                                 2001            2000
 
     Assets
     Cash and cash equivalents                 $ 18,530       $   22,523
     Loans and investments                      239,388          322,166
     Other receivables                          102,086          113,460
     Inventories                                269,027          323,003
     Properties and facilities                  230,695          241,107
     Other assets                               131,945          126,513
                                               $991,671       $1,148,772
     Liabilities
     Short-term borrowings                     $ 30,000       $   65,500
     Notes and bonds payable                    326,637          329,929
     Accounts payable and accrued liabilities   228,258          261,888
     Insurance reserves and unearned premiums    18,221           44,602
     Deferred income taxes                        7,423            6,169
     Other long-term obligations                 33,247           35,400
     Shareholders' equity
      Common stock                               23,829           23,552
      Additional paid-in capital                180,838          169,742
      Retained earnings                         133,553          204,546
                                                338,220          397,840
      Accumulated other comprehensive income      9,953            7,625
      Unearned compensation                        (288)            (181)
       Total shareholders' equity               347,885          405,284
                                               $991,671       $1,148,772
 
 
                           OAKWOOD HOMES CORPORATION
 
                Consolidated Statement of Cash Flows (Unaudited)
 
                                                Six months ended March 31,
 
                                                  2001              2000
 
     Operating activities
     Net loss                                 ($70,994)         ($26,828)
     Adjustments to reconcile net loss
      to cash provided by operating activities
       Depreciation and amortization            28,595            25,434
       Deferred income taxes                        --            (2,286)
       Provision for losses on credit sales      3,000             1,500
       (Gain)/loss on securities sold and
        loans sold or held for sale               (887)           18,577
       Impairment and valuation provisions      10,088               742
       Excess of cash receipts over REMIC
        residual income recognized (income
        recognized over cash received)          (1,163)            7,196
       Reversal of restructuring charges            --            (4,351)
       Other                                    (3,600)            5,415
       Changes in assets and liabilities
         Other receivables                      13,573             1,268
         Inventories                            53,976            73,035
         Deferred insurance policy
          acquisition costs                        603               861
         Other assets                           (4,520)           (6,991)
         Accounts payable and accrued
          liabilities                          (39,152)          (28,990)
         Insurance reserves and unearned
          premiums                             (26,381)          (14,869)
         Other long-term obligations            (2,153)             (637)
         Cash provided (used) by operations    (39,015)           49,076
       Loans originated                       (405,850)         (479,061)
       Sale of loans                           483,965           582,202
       Principal receipts on loans               3,440            12,423
         Cash provided by operating activities  42,540           164,640
 
     Investing activities
     Acquisition of properties and facilities   (6,560)          (12,413)
     Other                                      (1,112)           11,952
       Cash used by investing activities        (7,672)             (461)
 
     Financing activities
     Net repayments on short-term
      credit facilities                        (35,500)         (152,800)
     Proceeds from issuance of notes
      and bonds payable                             24                --
     Payments on notes and bonds                (3,385)           (9,040)
     Cash dividends                                 --              (942)
     Proceeds from exercise of stock options        --                30
       Cash used by financing activities       (38,861)         (162,752)
 
     Net increase (decrease) in cash
      and cash equivalents                      (3,993)            1,427
     Cash and cash equivalents
     Beginning of period                        22,523            26,939
     End of period                             $18,530           $28,366
 
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SOURCE Oakwood Homes Corporation
    GREENSBORO, N.C., April 26 /PRNewswire/ --
     Oakwood Homes Corporation (NYSE:   OH) today reported results of operations
 for the second quarter of fiscal 2001.
     For the three months ended March 31, 2001, the Company reported a net loss
 of $28.0 million, or $0.60 per share, compared with a net loss of
 $12.0 million, or $0.26 per share, in the second quarter of fiscal 2000.  For
 the six months, the Company reported a net loss of $71.0 million, or $1.51 per
 share, compared with a net loss of $26.8 million, or $0.58 per share, in the
 comparable fiscal 2000 period.
     Because the Company has operated at a loss in its two most recent fiscal
 years and because management believes difficult competitive conditions will
 continue for the foreseeable future, management believes that under the
 provisions of Statement of Financial Accounting Standards No. 109, it is not
 appropriate to record income tax benefits on current losses in excess of
 anticipated refunds of taxes previously paid.  As a consequence, the Company's
 results for the quarter and six-month periods ended March 31, 2001 do not
 reflect a benefit from income taxes, notwithstanding the fact that the Company
 reported losses for both periods.  Had the Company recorded a tax benefit, the
 net loss for the quarter and six-month periods ended March 31, 2001 would have
 been reduced by $10.1 million, or $0.21 per share, and $25.6 million, or $0.54
 per share, respectively.
     During the quarters ended March 31, 2001 and March 31, 2000, the Company
 recorded pre-tax charges of $0.4 million and $0.7 million, respectively,
 relating to the impairment of the value of certain retained interests in loan
 securitizations.
     The results for the current year's quarter reflect the completion of a
 $226.9 million securitization.  The securitized amount included approximately
 $26 million principal balance of securities which Oakwood had retained from
 asset-backed transactions closed in 1999 and 2000.  In connection with the
 securitization, the Company recorded a pre-tax gain of $4.6 million compared
 to a pre-tax loss of $2.4 million in the second quarter of fiscal 2000.  Also
 included in the second quarter of fiscal 2000 was a $4.4 million loss arising
 from the sale of asset-backed securities retained by the Company.
     At March 31, 2001, short-term borrowings outstanding under the Company's
 revolving credit facility and the three-year loan purchase facility were
 $13.0 million and $17.0 million, respectively.  Amounts outstanding vary based
 on the timing of asset-backed securitization transactions.  The Company is
 negotiating a new revolving credit facility, which would provide longer-term
 liquidity than the current facility that matures on October 1, 2001, although
 there can be no assurance that the Company will be able to finalize the
 facility.  Management believes that its credit facilities are sufficient to
 meet the Company's cash needs given its current level of operations.  As of
 March 31, 2001, the Company is in compliance with the covenants contained in
 its credit facilities.
     Duane D. Daggett, President and Chief Executive Officer, stated:
 "Extremely competitive industry conditions continued to negatively affect
 operating results this quarter.  These conditions are expected to continue
 until inventory supply comes into balance with consumer demand.
     "Since the beginning of the industry's contraction cycle in 1999, Oakwood
 has remained committed to the preservation and improvement of cash flow and
 liquidity.  The decisions resulting from this commitment more often than not
 penalized earnings.  Since October 1, 1999, we have reduced our inventories by
 approximately $175 million (including $14.7 million during the quarter just
 ended) and have replaced our 360-day revolving warehouse credit facility with
 a three-year loan purchase facility.  We have closed plants, sales centers and
 offices, downsized our staff and cut expenses across the board.  Our
 manufacturing segment was realigned to promote operational efficiencies and
 ensure accountability for results.  Additionally, we have centralized all
 customer care and service initiatives in order to ensure a consistent level of
 quality and timeliness and to reduce costs.  Our successful inventory
 reduction efforts over the winter have enabled us to introduce new home models
 in time for late spring and early summer.  Most recently, we announced a
 substantial reorganization of our retail segment.  Effective April 1, the new
 regional concept provided for additional support in specialized functional
 areas, which should increase sales and improve cost control.  Each of these
 initiatives was designed to better position Oakwood for the industry's turn,
 and we believe that we have accomplished a great deal during extremely
 difficult times."
     Mr. Daggett continued:  "Retail sales for the quarter ended March 31, 2001
 were $130.9 million compared with $176.2 million in the second quarter last
 year, while total sales declined from $271.3 million to $208.1 million.  Total
 revenues were $243.3 million in the second quarter of fiscal 2001 compared
 with $302.8 million in the second quarter of fiscal 2000.  Total new homes
 sold at retail declined from 3,716 units in the second quarter of fiscal 2000
 to 2,738 units in the second quarter of fiscal 2001.  At the end of March, we
 were operating 355 retail sales centers compared to 375 in fiscal 2000.
 Competitive industry conditions also affected wholesale sales, which declined
 by 18.8% in the second quarter of fiscal 2001 compared to the prior year's
 second quarter.
     "Our gross profit margin was 19.1% in the second quarter compared to
 20.6% in the prior year.  The decline reflects competitive pricing,
 promotional programs designed to lower inventory levels and reduced plant
 operating schedules.  At March 31, we were operating 21 plants at reduced
 production rates, having closed or temporarily idled 13 other plants.
     "Selling, general and administrative expenses as a percentage of sales
 were 34.9% compared to 29.0% in the second quarter of fiscal 2000.  Although
 general and administrative expenses were $5.6 million lower than in the prior
 year, this improvement was offset by higher selling expenses, which increased
 as a percentage of sales principally as a result of certain salesperson
 incentives associated with the reduction of inventory levels along with the
 fixed nature of certain selling expenses in the face of lower retail sales.
     "The delinquency rate on Oakwood-originated contracts was 3.8% at
 March 31, 2001 compared to 5.8% at December 31, 2000 and 3.5% one year ago.
 At quarter end, approximately 3,899 repossessions were on hand compared with
 2,809 at March 31, 2000 and 3,287 at December 31, 2000."
     Mr. Daggett concluded by saying:  "As we move into the historically
 stronger spring and summer months, we will continue our focus on cost
 containment, inventory reduction and cash flow improvement."
     Oakwood Homes Corporation and its subsidiaries are engaged in the
 production, sale, financing and insuring of manufactured housing throughout
 the United States.  The Company's products are sold through approximately
 355 Company-owned stores and an extensive network of independent retailers.
 
     This press release contains certain forward-looking statements and
 information based on the beliefs of the Company's management as well as
 assumptions made by, and information currently available to, the Company's
 management.  These statements include, among others, statements relating to
 our ability to negotiate a new revolving credit facility, the sufficiency of
 our current facilities to meet our cash needs given our current level of
 operations, and our new regional concept increasing sales.  Words like
 "believe," "expect," "should," and similar expressions used in this press
 release are intended to identify other such forward-looking statements.
     These forward-looking statements reflect the current views of the Company
 with respect to future events and are subject to a number of risks, including,
 among others, the following:  competitive industry conditions could further
 adversely affect sales and profitability; the Company may be unable to access
 sufficient capital to fund its operations; the Company may not be able to
 negotiate a replacement revolving credit facility for its existing facility
 which expires on October 1, 2001; the Company may recognize special charges or
 experience increased costs in connection with securitizations or other
 financing activities; the Company may recognize special charges or experience
 increased costs in connection with restructuring activities; adverse changes
 in governmental regulations applicable to the Company's business could
 negatively impact its business; the Company could suffer losses resulting from
 litigation; the captive Bermuda reinsurance subsidiary could experience
 significant losses; the Company could experience increased credit losses or
 higher delinquency rates on loans that it originates; negative changes in the
 general economic conditions in its markets could adversely impact the Company;
 the Company could lose the services of its key management personnel; and any
 other factors that generally affect companies in its lines of business could
 also adversely impact the Company.  Should the Company's underlying
 assumptions prove incorrect or should one or more of the risks or
 uncertainties materialize, actual events or results may vary materially and
 adversely from those described herein as anticipated, expected, believed or
 estimated.
 
 
                           OAKWOOD HOMES CORPORATION
 
                Consolidated Statement of Operations (Unaudited)
 
                 (Amounts in thousands, except per share data)
 
                                   Three months ended       Six months ended
                                        March 31,               March 31,
                                     2001      2000         2001         2000
 
     Revenues
       Net sales
        Retail                   $130,877  $176,245     $303,748     $358,879
        Wholesale                  77,184    95,104      159,518      209,964
                                  208,061   271,349      463,266      568,843
       Financial services income
       Consumer finance, net of
        impairment and valuation
        provisions                 23,702    14,588       24,286       21,604
       Insurance                    9,410    14,595       19,489       30,431
                                   33,112    29,183       43,775       52,035
 
       Other income                 2,136     2,272        4,483        5,378
        Total revenues            243,309   302,804      511,524      626,256
 
     Costs and expenses
       Cost of sales              168,349   215,511      372,187      451,760
       Selling, general and
        administrative expenses    72,585    78,642      152,235      156,203
 
       Restructuring charges           --    (4,351)          --       (4,351)
 
       Financial services
        operating expenses
         Consumer finance          10,276    10,361       19,547       21,652
         Insurance                  4,674     8,221        7,734       16,937
                                   14,950    18,582       27,281       38,589
 
       Provision for losses
        on credit sales             2,250       740        3,000        1,500
 
       Interest expense            13,219    12,995       27,815       25,825
     Total costs and expenses     271,353   322,119      582,518      669,526
     Loss before income taxes     (28,044)  (19,315)     (70,994)     (43,270)
     Provision for income taxes        --    (7,339)          --      (16,442)
 
     Net loss                    $(28,044) $(11,976)    $(70,994)    $(26,828)
 
     Loss per share
       Basic                     $  (0.60) $  (0.26)    $  (1.51)    $  (0.58)
       Diluted                   $  (0.60) $  (0.26)    $  (1.51)    $  (0.58)
 
     Weighted average number of
      common shares outstanding
       Basic                       47,105    46,574       47,055       46,565
       Diluted                     47,105    46,574       47,055       46,565
 
 
                           OAKWOOD HOMES CORPORATION
 
                     Consolidated Balance Sheet (Unaudited)
 
                                               March 31,    September 30,
                                                 2001            2000
 
     Assets
     Cash and cash equivalents                 $ 18,530       $   22,523
     Loans and investments                      239,388          322,166
     Other receivables                          102,086          113,460
     Inventories                                269,027          323,003
     Properties and facilities                  230,695          241,107
     Other assets                               131,945          126,513
                                               $991,671       $1,148,772
     Liabilities
     Short-term borrowings                     $ 30,000       $   65,500
     Notes and bonds payable                    326,637          329,929
     Accounts payable and accrued liabilities   228,258          261,888
     Insurance reserves and unearned premiums    18,221           44,602
     Deferred income taxes                        7,423            6,169
     Other long-term obligations                 33,247           35,400
     Shareholders' equity
      Common stock                               23,829           23,552
      Additional paid-in capital                180,838          169,742
      Retained earnings                         133,553          204,546
                                                338,220          397,840
      Accumulated other comprehensive income      9,953            7,625
      Unearned compensation                        (288)            (181)
       Total shareholders' equity               347,885          405,284
                                               $991,671       $1,148,772
 
 
                           OAKWOOD HOMES CORPORATION
 
                Consolidated Statement of Cash Flows (Unaudited)
 
                                                Six months ended March 31,
 
                                                  2001              2000
 
     Operating activities
     Net loss                                 ($70,994)         ($26,828)
     Adjustments to reconcile net loss
      to cash provided by operating activities
       Depreciation and amortization            28,595            25,434
       Deferred income taxes                        --            (2,286)
       Provision for losses on credit sales      3,000             1,500
       (Gain)/loss on securities sold and
        loans sold or held for sale               (887)           18,577
       Impairment and valuation provisions      10,088               742
       Excess of cash receipts over REMIC
        residual income recognized (income
        recognized over cash received)          (1,163)            7,196
       Reversal of restructuring charges            --            (4,351)
       Other                                    (3,600)            5,415
       Changes in assets and liabilities
         Other receivables                      13,573             1,268
         Inventories                            53,976            73,035
         Deferred insurance policy
          acquisition costs                        603               861
         Other assets                           (4,520)           (6,991)
         Accounts payable and accrued
          liabilities                          (39,152)          (28,990)
         Insurance reserves and unearned
          premiums                             (26,381)          (14,869)
         Other long-term obligations            (2,153)             (637)
         Cash provided (used) by operations    (39,015)           49,076
       Loans originated                       (405,850)         (479,061)
       Sale of loans                           483,965           582,202
       Principal receipts on loans               3,440            12,423
         Cash provided by operating activities  42,540           164,640
 
     Investing activities
     Acquisition of properties and facilities   (6,560)          (12,413)
     Other                                      (1,112)           11,952
       Cash used by investing activities        (7,672)             (461)
 
     Financing activities
     Net repayments on short-term
      credit facilities                        (35,500)         (152,800)
     Proceeds from issuance of notes
      and bonds payable                             24                --
     Payments on notes and bonds                (3,385)           (9,040)
     Cash dividends                                 --              (942)
     Proceeds from exercise of stock options        --                30
       Cash used by financing activities       (38,861)         (162,752)
 
     Net increase (decrease) in cash
      and cash equivalents                      (3,993)            1,427
     Cash and cash equivalents
     Beginning of period                        22,523            26,939
     End of period                             $18,530           $28,366
 
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 SOURCE  Oakwood Homes Corporation