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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

Form 10-Q

(MARK ONE)

(X)  

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934


For the quarterly period ended June 30, 2004

OR

(   )  

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________________to__________________


Commission file number 1-7160

COACHMEN INDUSTRIES, INC.
(Exact name of registrant as specified in its charter)
          INDIANA   35-1101097
(State or other jurisdiction of
incorporation or organization)		    (IRS Employer
Identification No.)

2831 Dexter Drive, Ekhart, Indiana   46514
(Address of principal executive offices) (Zip Code)

Registrant's telephone number, including area code      574-262-0123

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes X No  

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).   Yes X No  

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:

      At July 31, 2004:

  Common Shares, without par value 15,673,884 shares outstanding including an equivalent number of common share purchase rights.

FORM 10-Q

INDEX

Part I.  Financial Information Page No.
   
   Financial Statements:
   
      Consolidated Balance Sheets-
      June 30, 2004 and December 31, 2003		   3-4
   
      Consolidated Statements of Operations-
      Three and Six Months Ended June 30, 2004 and 2003		 5
   
      Consolidated Statements of Cash Flows-
      Six Months Ended June 30, 2004 and 2003		 6
   
      Notes to Consolidated Financial Statements 7-13
   
   Management's Discussion and Analysis of Financial
      Condition and Results of Operations		 14-17
   
   Quantitative and Qualitative Disclosures About Market Risk 18
   
   Controls and Procedures 18
   
Part II.  Other Information
   
   Item 4.  Submission of Matters to a Vote of Security Holders 19
   
   Item 6.  Exhibits and Reports on Form 8-K 19
   
   Signatures 20
   
   Index to Exhibits 21

2

Coachmen Industries, Inc. and Subsidiaries
Consolidated Balance Sheets
(in thousands)

        June 30,
2004
(Unaudited)		     December 31,
2003
 		  
Assets            
Current assets:    
  Cash and temporary cash investments     $ 8,796   $ 6,408  
  Marketable securities       4,108     5,667  
  Trade receivables, less allowance for    
   doubtful receivables 2004 - $800    
   and 2003 - $1,208       61,626     46,232  
  Other receivables       3,539     1,906  
  Refundable income taxes       590     642  
  Inventories       124,033     101,100  
  Prepaid expenses and other       3,425     4,622  
  Deferred income taxes       6,395     5,959  
     
 
   
    Total current assets       212,512     172,536  
 
Property, plant and equipment, at cost       158,786     155,673  
  Less, accumulated depreciation       79,443     76,448  
 
    Property, plant and equipment, net       79,343     79,225  
 
Goodwill       18,954     18,954  
Cash value of life insurance       38,972     36,506  
Other       4,295     3,467  
 
Total assets     $ 354,076 $ 310,688
 

See Notes to Consolidated Financial Statements.

3

Coachmen Industries, Inc. and Subsidiaries
Consolidated Balance Sheets (continued)
(in thousands)

        June 30,
2004
(Unaudited)		     December 31,
2003
 		  
Liabilities            
Current liabilities:    
  Accounts payable, trade     $ 41,406   $ 30,486  
  Accrued income taxes       2,377     2,511  
  Accrued expenses and other liabilities       45,368     37,586  
  Short-term borrowings and current portion                
    of long-term debt       26,480     5,990  
     
 
   
    Total current liabilities       115,631     76,573  
 
  Long-term debt       9,165     9,419  
  Deferred income taxes       3,903     4,089  
  Postretirement deferred compensation benefits       9,374     9,172  
  Other       166     284  
 
    Total liabilities       138,239     99,537  
 
Shareholders' equity            
  Common shares, without par value: authorized                
    60,000 shares; issued 2004 - 21,096                
    shares and 2003 - 21,086 shares       91,683     91,539  
  Additional paid-in capital       8,536     7,616  
  Retained earnings       176,661     172,700  
  Treasury shares, at cost: 2004 - 5,424                
    shares and 2003 - 5,533 shares       (59,242 ) (59,858 )
  Unearned compensation       (2,020 )   (1,136 )
  Accumulated other comprehensive income       219     290  
 
 
    Total shareholders' equity       215,837     211,151  
 
Total liabilities and shareholders' equity     $ 354,076   $ 310,688  
 






See Notes to Consolidated Financial Statements.

4

Coachmen Industries, Inc. and Subsidiaries
Consolidated Statements of Operations
(in thousands, except per share data)
(Unaudited)

Three Months
Ended June 30,		 Six Months
Ended June 30,
        2004     2003     2004     2003  
                             
Net sales     $ 234,861   $ 173,903   $ 436,148   $  320,290  
                             
Cost of sales       198,544     146,357     374,922     275,710  
     
 
 
 
 
    Gross profit       36,317     27,546     61,226     44,580  
     
 
 
 
 
Operating (income) expenses:    
  Delivery       10,338     8,371     19,136     15,360  
  Selling       8,595     6,394     15,847     12,113  
  General and administrative       9,529     7,665     18,973     16,388  
  Gain on sale of  
    properties, net       (69 )   (34 )   (1,079 )   (39 )
     
 
 
 
 
    Total operating expenses       28,393     22,396     52,877     43,822  
     
 
 
 
 
    Operating income       7,924     5,150     8,349     758  
     
 
 
 
 
Nonoperating (income) expense:  
  Interest expense       477     372     890     734  
  Investment (income) loss, net       (347 )   495     (1,275 )   100  
  Other income, net       (26 )   (38 )   (86 )   (100 )
     
 
 
 
 
    Total nonoperating (income)    
       expense, net       104     829     (471 )   734  
     
 
 
 
 
    Income before income taxes       7,820     4,321     8,820     24  
                           
Income taxes       2,646     1,485     2,986     8  
     
 
 
 
 
    Net income     $ 5,174   $ 2,836   $ 5,834   $ 16  
     
 
 
 
 
Earnings per common share:    
    Basic     $ .33   $ .18   $ .38   $ --  
    Diluted     $ .33   $ .18   $ .38   $ --  
                           
Number of common shares used in    
 computation of per common    
 share amounts:    
    Basic       15,468     15,379     15,464     15,442  
     
 
 
 
 
    Diluted       15,542     15,414     15,545     15,484  
     
 
 
 
 
                           
Cash dividends per common share     $ .06   $ .06   $ .12   $ .12  






See Notes to Consolidated Financial Statements.

5

Coachmen Industries, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
(in thousands)
(Unaudited)

  Six Months
Ended June 30,
        2004     2003  
Cash flows from operating activities:    
  Net income     $ 5,834   $ 16  
  Adjustments to reconcile net income to net    
    cash provided by (used in) operating activities:    
      Depreciation       4,817     4,759  
      Provision for doubtful receivables       (9 )   93  
      Gain on sale of properties, net       (1,079 )   (39 )
      Increase in cash surrender value of    
        life insurance policies       (1,008 )   (726 )
      Net realized and unrealized (gains) losses    
        on marketable securities and derivatives       289     (2 )
      Deferred income taxes       (622 )   437  
      Tax benefit from stock options exercised       14     4  
      Other       632     1,435  
      Changes in certain assets and liabilities:    
          Receivables       (17,018 )   (5,628 )
          Inventories       (22,734 )   (11,575 )
          Prepaid expenses and other       1,197     74  
          Accounts payable, trade       10,920     11,946  
          Income taxes - accrued and refundable       (82 )   1,645  
          Accrued expenses and other liabilities       7,782   &