Monaco Coach Reports Second Quarter Results
26 July 2000
Monaco Coach Reports Second Quarter Results
COBURG, Ore. - Monaco Coach Corporation today reported results for its
second quarter ended July 1, 2000. Second quarter earnings per share were 58
cents on revenue of $226 million, versus 59 cents per share on $199 million in
revenue for the same period last year. Net income for the second quarter was
$11.1 million, versus $11.4 million for the same period last year. Second
quarter operating income was $18.2 million.
"We're proud of our results, given the challenges our industry faced
throughout the second quarter," stated Kay L. Toolson, Monaco Chairman and
Chief Executive Officer. "In response to seasonal pressure associated with
the end of the 2000 model year, competitors' incentive programs and higher
dealer operating costs resulting from interest rate increases, we did offer
some incentives of our own which put pressure on earnings. However, we were
very successful in moving remaining 2000 model year product, and our 2001
models have debuted. Throughout the quarter retail demand for our products
remained strong. Through May, the most recent data available, retail
registrations for Monaco Coach Corporation class A motorhomes were up 21% over
the same period a year ago. In the diesel market, which grew by 22% through
May, retail registrations of our products were up over 40%." Toolson added
that comparative retail dealer inventory of the Company's products is at lower
levels than at this time last year.
Monaco Chief Financial Officer John Nepute added, "Our market share in
both the towable and motorized market segments increased steadily during the
second quarter. In May, for example, our class A market share rose from
10.8% last year to 13.4% this year. In the diesel motorhome market, our share
in May was 24.6%, versus 21.5% for the same period a year ago. Our product
development team has done an exceptional job preparing the 2001 products and
we believe these new models will allow us to maintain this momentum."
Second quarter unit sales of Monaco Coach Corporation products totaled
2,650 units, an increase of 8.0% from the same period last year. Second
quarter motor home sales totaled 1,719 units, and second quarter towable
recreational vehicles totaled 931 units. For the six months ended
July 1, 2000, unit sales totaled 5,459 units, an increase of 13.0% from the
same period last year.
For the six months ended July 1, 2000, earnings per share were $1.25, an
increase of 13.6% from the same period last year, on revenue of $464 million.
For the six months ended July 1, 2000, net income rose 12.8% to $24.1 million.
Operating income for the six months ended July 1, 2000 was $39.6 million, an
increase of 9.3% over the same period last year.
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, Royale Coach
and McKenzie brand names.
Monaco Coach Corporation
(Unaudited: dollars in thousands, except per share data)
Three months ended Six months ended
July 1, 2000 July 3, 1999 July 1, 2000 July 3, 1999
Net Sales $226,091 $199,178 $464,074 $392,379
Gross Profit 32,117 31,347 69,431 60,511
Operating Income 18,217 18,919 39,592 36,219(a)
Income Before Taxes 18,152 18,952 39,416 35,278(b)
Net Income 11,148 11,457 24,066 21,335
Earnings per Share:
Basic 0.59 0.61 1.27 1.14
Diluted 0.58 0.59 1.25 1.10
Weighted Average
of Common
Shares Outstanding:
Basic 18,902,592 18,785,290 18,894,620 18,791,185
Diluted 19,276,722 19,346,131 19,322,434 19,316,293
Units Sold: 2,650 2,454 5,459 4,832
(a) Includes a $1.75 million benefit from an adjustment of 1998 incentive
based compensation.
(b) Includes a $639,000 expense from write off of debt issuance costs due
to payoff of Long-term Note Payable.
Balance Sheet
July 1, 2000 Jan 1, 2000
Assets
Current $180,197 $137,946
Property & Equipment 95,950 89,439
Other (Including Goodwill) 18,973 19,342
Total Assets $295,120 $246,727
Liabilities
Current $121,625 $99,058
Deferred Tax Liability 5,736 4,330
Total Liabilities 127,361 103,388
Stockholders' Equity 167,759 143,339
Total Liabilities &
Stockholders' Equity $295,120 $246,727
