In embracing these strategies, Fleetwood has committed to squarely face the challenges that remain. We will draw on reservoirs of strength and experience, both from our industry veterans and from the fresh thinking of our new leaders. Most importantly, we will build on the solid foundation for growth that we have constructed in order to begin to deliver the results our shareholders expect.

One of the clearest examples of our progress can be seen in our significant year-over-year sales improvement – particularly in the fourth quarter, in which every segment had double-digit growth. This was a particularly significant achievement in our Housing Group, because the manufactured housing industry as a whole was still experiencing a decline during that period.

Indeed, the improvement in sales was reflected in our operating income for the year, which totaled $41.3 million compared to a loss of $26.4 million last year. The RV Group was led by the motor home division’s operating income of $57.1 million versus $40.5 million the prior year. Travel trailers made an operating profit of $1.9 million versus a loss of $6.1 million the prior year, or an $8.0 million improvement year over year. Although folding trailers lost $0.9 million versus a profit of $1.0 million the prior year, this was primarily due to a continued decline in the overall folding trailer market, which was off 16 percent compared to the prior fiscal year.

Manufactured housing, too, made significant progress in the face of a continued fall in industry shipments. Our wholesale division earned an operating profit of $5.4 million versus a loss of $13.5 million in fiscal 2003, while retail reduced its loss to $35.9 million versus a loss of $49.7 million last year.

We expect to see these trend lines of improvement in our results continue over the course of fiscal 2005.

There were a number of factors that, combined, brought us up short of bottom-line profitability, and led to an overall net loss of $22.3 million. These included $2.4 million in charges relating to the recent successful call for redemption of our 9.5% convertible trust preferred securities, and a further non-cash charge of $15 million against our deferred tax asset. Paradoxically, as Fleetwood’s financial condition and common stock price have improved over the past few months, the market value of our 6% convertible trust preferred securities has likewise increased, which in turn has reduced the value of one of our potential tax strategies.

We transformed our balance sheet during the year, although the process continued beyond the end of our fiscal reporting period. We issued $100 million in 5% convertible debt in December 2003 to enhance our liquidity and pay down our bank line of credit. Subsequently, we renegotiated a significantly more favorable bank credit facility, which included better pricing and an increase in borrowing availability. Both transactions provide significant long-term liquidity to build our businesses.

In addition, we used a portion of the proceeds of the 5% convertible debt offering to help us convert or redeem our most expensive debt – $188 million in 9.5% convertible trust preferred securities. Most converted into common stock subsequent to the redemption call, and the rest – $20.8 million worth – were redeemed for cash. This eliminates $17.9 million of annual interest payments.

Also in December, we successfully negotiated a $75 million warehouse line for our manufactured housing finance company, HomeOne Credit Corp. We believe that this increased lending capacity gives us a competitive advantage, as it will allow us to extend additional prudent loans to our customers.

The result of these actions is rebuilt financial strength and a greatly enhanced capital structure to take advantage of what we believe will be a strong future in both businesses.