Monaco Coach Reports Fiscal Year and Fourth Quarter 2000
Results
COBURG, Ore., Jan. 26 Monaco Coach Corporation
today reported revenue and earnings for its fourth quarter and fiscal year
ended December 30, 2000. For the twelve months ended December 30, 2000
earnings per share were $2.20 on revenue of $901.9 million versus $2.26 on
revenue of $780.8 million for the same period last year.
For the twelve months ended December 30, 2000 operating income was
$69.8 million versus $72.8 million for the same period last year. Net income
for the twelve months ended December 30, 2000 was $42.5 million versus
$43.8 million for the same period last year. For the twelve months ended
December 30, 2000, unit sales totaled 10,009 units, an increase of 5.3% from
the same period last year. Fiscal year 2000 motor home sales totaled
6,632 units, and towable recreational vehicles totaled 3,377 units.
Fourth quarter earnings per share were 45 cents on revenue of
$211.4 million versus 58 cents on revenue of $191.7 million for the same
period last year. Fourth quarter operating income was $14.1 million versus
$18.3 million for the same period last year. Net income for the fourth
quarter was $8.6 million versus $11.2 million for the same period last year.
Fourth quarter unit sales of Monaco Coach Corporation products totaled
2,120 units. Fourth quarter motor home sales totaled 1,445 units, and fourth
quarter towable recreational vehicles totaled 675 units.
"The year 2000 was a challenging time for the recreational vehicle
industry," stated Chairman and Chief Executive Officer Kay Toolson. "We're
proud, however, to have grown our revenue and unit sales for the year in spite
of difficult market conditions. Our attention to product innovation and
positioning has resulted in growing retail demand for our products throughout
the year. In fact, our class A motorhome market share through November rose
to 14.8%, up from 11.8% through the same period a year ago."
Toolson added, "We continue to leverage our strengths to take advantage of
opportunities within the market. For example, we've introduced lower-priced
gasoline-powered products that are capturing market share in their product
segments. As we make progress penetrating new markets, we continue to grow
our presence in the diesel motorhome market, where our share has increased to
nearly 27% through November. Our strength in this market is important, as the
diesel market is growing at a faster pace than the overall industry, now
representing almost 40% of the total class A motorhome market."
"Much of our attention this year was focused on managing our relationship
with our retail dealers," commented Monaco Coach Corporation President John
Nepute. "Despite our solid retail demand, higher dealer costs due in part to
interest rate hikes resulted in a more challenging wholesale environment in
the second half of the year. In response to these higher costs and additional
competitive pricing pressure at the wholesale level, we offered incentives of
our own in the form of both wholesale and retail programs. These programs are
designed to help dealers maintain appropriate inventory levels of our products
and to assist them with sell-through to retail customers. We anticipated
earnings and margin pressure as a result of these pricing programs; however,
we were also rewarded with increased wholesale and retail unit sales for the
year."
Nepute continued, "The recent decision by the Federal Reserve Board to
lower interest rates should have a positive impact on the RV industry in 2001.
It relieves some of the pressure that our retail dealers are feeling
associated with floorplan financing, which may encourage them to increase
their current level of stock inventory. From a consumer standpoint, a
reduction in interest rates should bolster consumer confidence and in turn
improve retail demand."
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, McKenzie and
Royale Coach brand names.
The statements in this release regarding the Company's ongoing retail
demand for new and existing products, its ability to enter new markets,
potential market share gains, the rate of growth of the diesel market, and the
potential impact of lower interest rates are forward-looking statements based
on current information and expectations and involves a number of risks and
uncertainties. Actual results and events may differ materially from those
projected in such statement due to various factors, including but not limited
to: the risk that consumer demand for the Company's products may fall due to
various factors including without limitations to the risk of higher fuel
prices, general economic downtown, changes in interest rates, demand for
competitors' products, new product introductions by competitors or the risk
that the diesel market might not grow faster than the overall industry. For
additional factors, please refer to the Company's Form 10-K, Forms 10-Q and
other filings with the Securities and Exchange Commission. These filings can
be accessed over the internet at http://www.sec.gov.
MONACO COACH CORPORATION
BALANCE SHEETS
(Unaudited: dollars in thousands)
January 1, December 30,
2000 2000
ASSETS
Current assets:
Trade receivables, net $36,538 $67,998
Inventories 87,596 114,397
Prepaid expenses 322 1,046
Deferred income taxes 13,490 13,197
Total current assets 137,946 196,638
Note receivable 2,800
Property, plant and equipment, net 89,439 103,590
Debt issuance costs, net of accumulated
amortization of $1,999 and $2,113, respectively 114 0
Goodwill, net of accumulated amortization
of $4,029 and $4,675, respectively 19,228 18,582
Total assets $246,727 $321,610
LIABILITIES
Current liabilities:
Book overdraft $12,478 $15,178
Line of credit 7,853 20,585
Accounts payable 36,912 53,098
Income taxes payable 1,406 0
Accrued expenses and other liabilities 40,409 38,478
Total current liabilities 99,058 127,339
Deferred income taxes 4,330 7,646
103,388 134,985
STOCKHOLDERS' EQUITY
Common stock, $.01 par value; 50,000,000 shares
authorized, 18,871,084 and 18,982,107 issued
and outstanding respectively 189 190
Additional paid-in capital 46,268 47,032
Retained earnings 96,882 139,403
Total stockholders' equity 143,339 186,625
Total liabilities and stockholders' equity $246,727 $321,610
MONACO COACH CORPORATION
STATEMENTS OF INCOME
(Unaudited: dollars in thousands, except per share data)
Quarter Ended Year Ended
January 1, December 30, January 1, December 30,
2000 2000 2000 2000
Net sales $191,742 $211,423 $780,815 $901,890
Cost of sales 160,972 182,112 658,536 772,240
Gross profit 30,770 29,311 122,279 129,650
Selling, general and
administrative
expenses 12,358 15,055 48,791(a) 59,175
Amortization of
goodwill 161 161 645 645
Operating income 18,251 14,095 72,843 69,830
Other income, net 53 118 142 182
Interest expense (114) (174) (1,143)(b) (632)
Income before income
taxes 18,190 14,039 71,842 69,380
Provision for income
taxes 6,991 5,391 28,081 26,859
Net income $11,199 $8,648 $43,761 $42,521
Earnings per common
share:
Basic $.59 $.46 $2.33 $2.25
Diluted $.58 $.45 $2.26 $2.20
Weighted average
common shares
outstanding:
Basic 18,868,958 18,947,740 18,808,963 18,918,082
Diluted 19,406,418 19,323,461 19,366,969 19,318,843
Units sold: 2,307 2,120 9,502 10,009
(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.
