Monaco Coach Corporation Reports Fourth Quarter and Fiscal Year 2003 Results
COBURG, Ore., Feb. 3, 2004 -- Monaco Coach Corporation today reported revenue for its fourth quarter and fiscal year ended January 3, 2004. Fourth quarter earnings per share were 37 cents, on record quarterly revenue of $322.9 million. Net income for the fourth quarter was $11.0 million. Operating income for the fourth quarter was $17.4 million. Fourth quarter motorhome sales totaled 1,894 units and fourth quarter towable recreational vehicles totaled 687 units for a total of 2,581.
For the fiscal year ended January 3, 2004, earnings per share were 75 cents on revenue of $1.17 billion. Net income for the fiscal year ended January 3, 2004 was $22.2 million. Operating income for the fiscal year ended January 3, 2004 was $38.2 million. Unit sales of Monaco Coach Corporation products for the fiscal year ended January 3, 2004 totaled 9,644 units. Fiscal year motorhome sales totaled 7,051 units and towable recreational vehicles totaled 2,593 units.
According to Monaco Coach Corporation Chairman and Chief Executive Officer Kay Toolson, "While 2003 was not without its challenges, we're encouraged by the recovery that our industry and company achieved in the second half of the year. We expect this positive momentum to fuel further growth in 2004."
Toolson continued, "We experienced record wholesale orders at our industry association's annual trade show in Louisville, Kentucky, held in early December. Dealers responded favorably to many new innovative floorplan designs offered in our core diesel products. Additionally, our efforts to improve the value of our gasoline-powered motorhomes and towable products were rewarded by tremendous dealer response."
Monaco Coach Corporation President John Nepute added, "Reasonable dealer inventory levels and continued retail sales strength have allowed for further reduction in our finished goods inventory and also contributed to record order backlogs. In the fourth quarter, we increased production as forecasted to meet this growing demand. These positive wholesale and retail indicators have given us confidence to continue increasing production rates into the first quarter of 2004."
Monaco Coach Corporation Vice President and Chief Financial Officer Marty Daley stated, "Current demand validates our increased production rates, which we expect to result in first quarter revenues of approximately $340-$350 million. This sales level should allow for first quarter gross margins between 13.25% and 13.4%, with sales, general, and administrative expenses expected in the 7.5% range."
Daley continued, "For 2004 fiscal year, we believe sales could reach $1.35 billion to $1.4 billion. We expect our fiscal-year gross margins to average 13.3% to 13.5%. Fiscal-year sales, general, and administrative expenses are expected to average between 7.5% and 7.3%, resulting in 2004 earnings per share in the $1.55 to $1.70 range."
Headquartered in Coburg, Oregon, with additional manufacturing facilities in Indiana, Monaco Coach Corporation is one of the nation's leading manufacturers of recreational vehicles. The company offers customers luxury recreational vehicle models under the Monaco, Holiday Rambler, Safari, Beaver, McKenzie and Royale Coach brand names.
MONACO COACH CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited: dollars in thousands)
December 28, January 3,
2002 2004
ASSETS
Current assets:
Cash $0 $13,398
Trade receivables, net 116,647 89,170
Inventories 175,609 127,746
Resort lot inventory 26,883 13,978
Prepaid expenses 3,612 3,029
Deferred income taxes 33,379 33,836
Total current assets 356,130 281,157
Property, plant and equipment, net 135,350 141,662
Debt issuance costs, net 683 596
Goodwill, net of accumulated amortization
of $5,320 and $5,320, respectively 55,254 55,254
Total assets $547,417 $478,669
LIABILITIES
Current liabilities:
Book overdraft $3,518 $0
Line of credit 51,413 0
Current portion of long-term note payable 21,667 15,000
Accounts payable 78,055 64,792
Product liability reserve 21,322 20,723
Product warranty reserve 31,745 29,643
Income taxes payable 4,536 3,395
Accrued expenses and other liabilities 29,633 26,373
Total current liabilities 241,889 159,926
Long-term note payable 30,333 15,000
Deferred income taxes 14,568 17,495
286,790 192,421
STOCKHOLDERS' EQUITY
Common stock, $.01 par value; 50,000,000
shares authorized, 28,632,774 and
28,871,144 issued and outstanding
respectively 289 292
Additional paid-in capital 51,501 54,919
Retained earnings 208,837 231,037
Total stockholders' equity 260,627 286,248
Total liabilities and stockholders'
equity $547,417 $478,669
MONACO COACH CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited: dollars in thousands, except share and per share data)
Quarter Ended Year Ended
December January 3, December 28, January 3,
28, 2004 2002 2004
2002
Net sales $300,667 $322,863 $1,222,689 $1,168,311
Cost of sales 259,329 280,843 1,059,560 1,028,377
Gross profit 41,338 42,020 163,129 139,934
Selling, general and
administrative
expenses 20,748 24,640 87,202 101,700
Amortization of goodwill -- -- -- --
Operating income 20,590 17,380 75,927 38,234
Other income, net 58 93 105 260
Interest expense (752) (410) (2,752) (2,968)
Income before
income taxes 19,896 17,063 73,280 35,526
Provision for income
taxes 7,812 6,033 28,765 13,326
Net income $12,084 $11,030 $44,515 $22,200
Earnings per common share:
Basic $ .42 $ .38 $ 1.55 $ .76
Diluted $ .41 $ .37 $ 1.51 $ .75
Weighted average common shares outstanding:
Basic 28,869,584 29,185,368 28,812,473 29,062,649
Diluted 29,480,563 29,831,507 29,573,420 29,567,012
MONACO COACH CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited: dollars in thousands)
Year Ended
December 28, January 3,
2002 2004
Increase (Decrease) in Cash:
Cash flows from operating activities:
Net income $44,515 $22,200
Adjustments to reconcile net income
to net cash provided (used) by
operating activities:
Gain on sale of assets 178 43
Depreciation and amortization 8,585 9,768
Deferred income taxes (1,574) 3,852
Changes in working capital accounts:
Trade receivables, net (33,932) 27,854
Inventories (48,534) 47,863
Resort lot inventory (98) 5,869
Prepaid expenses (1,650) 573
Accounts payable 10,301 (13,263)
Product liability reserve 1,237 (599)
Product warranty reserve 3,835 (2,102)
Income taxes payable 9,597 (1,141)
Accrued expenses and other liabilities 8,888 (3,007)
Net cash provided by
operating activities 1,348 97,910
Cash flows from investing activities:
Additions to property, plant and equipment (18,735) (19,510)
Proceeds from sale of assets 387 2,197
Proceeds from the sale of Naples property -- 6,650
Payment for business acquisition (21,085) --
Issuance of notes receivable (385) --
Collections from notes receivable 500 --
Net cash used in investing activities (39,318) (10,663)
Cash flows from financing activities:
Book overdraft (2,371) (3,518)
(Payments) borrowings on lines of credit, net 25,414 (51,413)
Borrowings on long-term note payable 22,000 --
Payment on long-term note payable (10,000) (22,000)
Debt issuance costs (55) (339)
Issuance of common stock 2,982 3,421
Net cash provided by (used in)
financing activities 37,970 (73,849)
Net change in cash 0 13,398
Cash at beginning of period 0 0
Cash at end of period $0 $13,398
