Recreational Vehicles:

The following table presents RV Group net sales by division for fiscal 2006 and 2005 (amounts in thousands):

In calendar 2005, our motor home market share decreased slightly to 17.5 percent and retail unit sales decreased by 9.2 percent compared to calendar 2004. In fiscal 2006 compared to fiscal 2005, wholesale revenues were down by a greater 11.0 percent. This was largely in line with the experience of the whole industry, which was impacted by adverse trends in consumer confidence stemming mostly from volatile fuel prices. In calendar 2006, the Company experienced market share growth in the Class C and diesel segments with market erosion in the Class A gas segment, primarily in the entry-level and high-line gas products.

Travel trailer sales were up 15.5 percent in fiscal 2006 compared to fiscal 2005. Wholesale shipments benefited from the sale of emergency living units, which generated $121.6 million of additional revenue in fiscal 2006 compared to fiscal 2005. Sales to our traditional dealer network, in terms of units, decreased by approximately 13 percent and underlying retail unit sales were down
by 3.3 percent in calendar 2005 compared to the previous year. This continued a trend of eroding market share, particularly in the higher-priced fifth-wheel travel trailer class to 4.5 percent and conventional travel trailers to 10.6 percent, that can be attributed to a mismatch of value and features in our products, relative to the competition.

Folding trailer sales were down 1.4 percent, but market share increased slightly to 38 percent while the industry was down nearly 17 percent for calendar 2005. A prolonged industry decline slowed considerably as this market showed some signs of recovery by the end of the fiscal year. We continue to maintain a dominant market share in this segment.

The RV Group generated $216,000 of operating income in fiscal 2006, compared to an operating loss of $39.2 million in the prior fiscal year. Despite sales that were lower by 2.9 percent, higher margins and lower operating expenses contributed to the improvement in operating results. Prior year operating results also included a charge related to a $14.6 million judgment in the Coleman litigation.

The following table presents division operating income (loss) for fiscal 2006 and 2005 (amounts in thousands):

Manufactured Housing:

The following table presents Housing Group net sales for fiscal 2006 and 2005 (amounts in thousands):

Results for the Housing Group consist of factory wholesale revenues, including sales to our retail business prior to its sale in August 2005. Transactions with our retail business prior to the sale were eliminated in consolidation, including any intercompany profit in inventory still held by the retail business. Revenues for the retail business are presented separately as part of discontinued operations.

Revenues in fiscal 2006 were up 1.3 percent from the prior year, and included $25.6 million of intercompany sales to Company-owned retail sales centers. Manufacturing unit volume decreased 5.3 percent to 22,681 homes, and the total number of housing sections was down 7.8 percent to 37,695 due to a shift in sales mix toward single-section homes. Multi-section homes represented
64 percent of factory shipments for the fiscal year versus 68 percent last year.

Sales volume was improved over the prior year because of significant sales of emergency shelter product in response to hurricane damage in the Gulf Coast region. This was partially offset by lower sales to manufactured housing community developers and to divested Company-owned stores.

Gross profit margin of 24.3 percent of sales was a 2.1 percent increase over the prior year. Operating costs decreased
$13.2 million or 8 percent as a result of lower selling and product warranty expenses following a reorganization of these functions. Other operating expenses also decreased by $1.2 million, primarily due to charges in the prior year, including $1.9 million of impairment, $0.8 million for severance and $1.7 million in litigation costs. Overall results improved from an operating profit of
$6.4 million to $38.8 million.

Supply Operations:

Including intercompany sales, our Supply Group contributed revenues of $209.7 million in fiscal 2006 compared to $232.8 million in fiscal 2005, of which $50.2 million and $57.0 million, respectively, were sales to third party customers. Operating income from sales to third party customers declined from $3.8 million to $2.2 million primarily as a result of lower margins and a gain on the sale of the drapery operation in the prior year.

Discontinued Operations:

In March 2005, we announced our intention to exit the manufactured housing retail and financial services businesses and the majority of the assets of these businesses were sold by August 2005. These businesses are presented as discontinued operations in the Company’s financial statements. Retail housing’s revenues during fiscal 2006 prior to the sale were $88.3 million, compared to $240.7 million for fiscal 2005. Unit sales for the retail operation were 1,393 homes in fiscal 2006, compared to 4,157 homes in the previous full year of operations. Losses from discontinued operations were $22.4 million in fiscal 2006, compared to $88.9 million in the prior year. The current year results include losses from retail operations prior to the sale.