Monaco Coach Reports Q3 Earnings
27 October 1998
Monaco Coach Reports Record Third Quarter Earnings COBURG, Ore., Oct. 27 -- Monaco Coach Corporation
today released third quarter earnings, reporting sales and
operating income up 44.8% and 100.7%, respectively, as compared to results for
the same period of 1997.
For the three months ended October 3, 1998, net sales for Monaco Coach
totaled $153.2 million. Gross profit and operating income for this period
were $21.3 million and $10.8 million. Net income and earnings per share were
$6.3 million and 74 cents.
For the nine months ended October 3, 1998, net sales for Monaco Coach
totaled $425.1 million. Gross profit and operating income for this period
were $57.8 million and $26.5 million. Net income and earnings per share were
$15.0 million and $1.77.
According to Monaco Chairman and Chief Executive Officer Kay L. Toolson,
"Our record sales and earnings in the third quarter have resulted from a
healthy recreational vehicle market and outstanding customer response to our
new models. Our dealer inventories remain low, and our production is driven
by a solid order backlog." Monaco sold 1,242 motorized units and 512 towable
units in the third quarter of 1998.
Monaco Chief Financial Officer, John Nepute, added, "We remain focused on
our overall business plan and our record third quarter results are a
reflection of these efforts. This focus will place us in an ongoing position
to capitalize on future opportunities."
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 seven
luxury motorcoach models under the Monaco brand name: the LaPalma, the
Diplomat, the Windsor(R), the Dynasty(R), the Executive(R), the Signature
Series, and Royale Coach by Monaco. Monaco's Holiday Rambler Division builds
quality travel trailers, fifth wheel towables and motorcoaches, including:
Alumascape(TM), Aluma-Lite(R), Admiral, Vacationer(R), Endeavor(R), Imperial,
and Navigator(R). Monaco's McKenzie Towables Division produces travel
trailers and fifth wheel towable recreational vehicles.
The statements in this report regarding the sales momentum for the
Company's products, the impact of customer response to new product
introductions and the Company's ability to capitalize on future opportunities
are forward-looking statements. A number of factors could cause actual
results to differ materially from these statements, including slower than
anticipated sales of new and existing products, a general slowdown in the
economy, or new product introductions by competitors, or an inability to
increase production to meet demand due to a tight labor market or other
factors. Please refer to the Company's SEC reports, including but not limited
to the report on Form 10-Q for the quarter ended October 3, 1998, and the 1997
Annual Report to Shareholders for additional factors.
Note: News releases and other information on Monaco Coach can be accessed
at no charge at http://www.ctaonline.com/mcco and http://www.monaco-online.com on the
Internet.
Monaco Coach Corporation
(Unaudited: dollars in thousands, except per share data)
Three months ended Nine months ended
Oct 3, Sep 27, Oct 3, Sep 27,
1998 1997 1998 1997
Net Sales $153,220 $105,796 $425,060 $320,801
Gross Profit 21,329 14,084 57,805 43,447
Operating Income 10,762 5,361 26,517 16,093
Income Before Taxes(*) 10,793 5,403 25,652 14,826
Net Income 6,313 3,159 15,000 8,672
Net Income attributable
to common stock(@) 6,313 3,159 15,000 8,355
Earnings per share:
Basic 0.76 0.38 1.81 1.15
Diluted 0.74 0.38 1.77 1.14
Weighted Average of Common
Shares Outstanding:
Basic 8,310,380 8,234,134 8,284,693 7,246,632
Diluted 8,478,931 8,391,709 8,471,585 7,603,234
Units Sold: 1,754 1,352(**) 4,968 4,270(**)
(*) The three and nine month periods ended October 3, 1998 include Other
Income of $523,000 ($306,000 net of tax or 3.6 cents per share) related to
insurance reimbursement of income loss due to the fire at the Coburg plant on
July 30, 1997.
(@) Recognizes the effect on primary earnings per share of accrued
dividends and accretion related to the redeemable preferred stock issued in
connection with the acquisition of Holiday Rambler.
(**) Excludes 38 units for the three months ended September 27, 1997, and
211 units for the nine months ended September 27, 1997 sold at the Holiday
World Dealerships that were either previously owned or not Holiday Rambler
Units.
Balance Sheet
Oct 3, 1998 Jan. 3, 1998
Assets
Current $114,316 $81,432
Property & Equipment 58,638 55,399
Notes Receivable 788 1,125
Other (Including Goodwill) 21,071 21,876
Total Assets $194,813 $159,832
Liabilities
Current $95,082 $71,020
Deferred Tax Liability 2,825 2,564
Long-term Notes Payable 6,650 11,500
Total Liabilities 104,557 85,084
Stockholders' Equity 90,256 74,748
Total Liabilities & Stockholders'
Equity $194,813 $159,832
