Urges Stockholders to Vote FOR the Committee's Nominees on the GOLD Proxy Card
FORT WORTH, Texas, May 4 /PRNewswire/ -- The members of the Cavalier Homes Committee for Change (the 'Committee') announced today that it has sent a second letter to the stockholders of Cavalier Homes, Inc. (the 'Company') (NYSE Alternext US: CAV) urging stockholders to elect its three highly qualified and experienced director nominees, Michael R. O'Connor, Kenneth E. Shipley, and Curtis D. Hodgson, at the Company's 2009 annual meeting of stockholders scheduled to be held on May 19, 2009. The members of the Committee beneficially own an aggregate of 1,694,892 shares of common stock of the Company, representing approximately 9.6% of the outstanding shares of the Company's common stock.
The full text of the letter follows:
May 4, 2009
VOTE THE GOLD PROXY CARD FOR CHANGE YOU CAN BELIEVE IN!
Dear Fellow Stockholders:
As significant stockholders of Cavalier Homes, Inc. ('Cavalier' or the 'Company') (NYSE Alternext US: CAV), we are deeply concerned that the Company's current Board has no real plan to rebuild value at Cavalier. The members of the Cavalier Homes Committee for Change (the 'Committee') own approximately 9.6% of the outstanding shares of the Company and have a direct interest in maximizing the value of Cavalier's shares. We are therefore seeking your support to elect our slate of director nominees, Michael R. O'Connor, Kenneth E. Shipley, and Curtis D. Hodgson, at the Company's 2009 annual meeting of stockholders, scheduled to be held on May 19, 2009, to make the changes necessary to restore profitability. The Committee urges stockholders to vote FOR the Committee's highly experienced and qualified director nominees on the GOLD proxy card.
On April 29, 2009, the current Board, at the Company's expense, sent another letter to stockholders claiming they have been 'proactive' in their response to market conditions. We do not believe they have. Their letter would have stockholders believe that our nominees have been 'fast and loose' with the facts. We would like to set the record clear. Here are the undeniable facts.
FACT: Cavalier recently reported in its latest quarterly report that its first quarter market share in Cavalier's 'core' 11 states decreased from 10.0% to 8.8%, despite the fact that the number of companies operating in this market has significantly decreased. Patriot and Fleetwood have each gone bankrupt, Palm Harbor closed its North Carolina plant and General Homes closed its Georgia facility. With the decrease in the number of companies serving this core market, we question which manufacturers have picked up this market share: Horton Homes? Clayton Homes? River Birch Homes? We believe Cavalier clearly has not.
