Monaco Coach Corporation Reports First Quarter
2001 Results
COBURG, Ore., April 24 Monaco Coach Corporation
today reported revenue and earnings for its first quarter ended
March 30, 2001. First quarter earnings per share were 27 cents on revenue of
$211.2 million. Net income for the first quarter was $5.2 million. First
quarter operating income was $9.1 million. First quarter unit sales of Monaco
Coach Corporation products totaled 2,296 units. First quarter motorhome sales
totaled 1,432 units and first quarter towable recreational vehicles totaled
864 units.
"Many challenging economic factors continue to impact our industry,"
stated Kay L. Toolson, Monaco Coach Corporation Chairman and Chief Executive
Officer. "However, we are encouraged by signs which may lead to a stronger
second half of the year. Recent interest rate declines provide inventory cost
relief for our retail dealers and should also have a positive effect on
consumer confidence and spending."
Toolson added, "Our attention to product innovation continues to provide
us with a tremendous advantage in the market. We introduced the first four of
our 2002 models with new triple slide-out floorplans at the recent Family
Motor Coach Association Winter Convention. Retail sales of these new coaches
at the show reflect one of our most successful product introductions. We've
also recently introduced the second of two new Class C motorhomes. The
McKenzie Rogue joins the Holiday Rambler Atlantis as our entries into this
market."
Monaco Coach Corporation President John Nepute commented, "Our focus on
product development and our commitment to maintaining our presence on retail
dealers' lots have driven our retail market share growth over the past several
months. In fact, Monaco Coach Corporation is now the number two Class A
motorhome manufacturer with 17.6% of the market through February. Our
strength remains in the diesel motorhomes, where we increased to 28.8% of the
market through February, up from 25.3% through the same period last year. We
are also still seeing solid demand for our towable products."
According to Monaco Coach Corporation Vice President and Chief Financial
Officer Marty Daley, "As we enter the second quarter, we normally experience
some margin pressure as a result of model change activities. This anticipated
seasonal pressure, combined with an ongoing climate of wholesale discounting
and retail promotions, will contribute to earnings pressure in the second
quarter similar to the first quarter. We're managing our current
circumstances, balancing promotional efforts and production levels with retail
demand in order to continue our market share gains, maintain our strong
presence on retail dealers' lots and realize efficiencies within our
facilities."
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.
TABLES TO FOLLOW
The statement in this press release regarding the impact of interest rate
reductions on consumer spending is a forward-looking statement based on
current information and expectations and involve 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: slower than anticipated sales of new and existing products, a general
slowdown in the economy, higher than anticipated expenses associated with
model change activities or new product introductions by competitors. For more
information concerning these and other possible risks, please refer to the
Company's press releases and 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
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited: dollars in thousands, except per share data)
Quarter Ended
April 1, March 31,
2000 2001
Net sales $237,983 $211,228
Cost of sales 200,669 185,740
Gross profit 37,314 25,488
Selling, general and administrative expenses 15,778 16,239
Amortization of goodwill 161 161
Operating income 21,375 9,088
Other income, net 1 116
Interest expense (112) (684)
Income before income taxes 21,264 8,520
Provision for income taxes 8,346 3,323
Net income $12,918 $5,197
Earnings per common share:
Basic $ .68 $ .27
Diluted $ .67 $ .27
Weighted average common shares outstanding:
Basic 18,886,646 18,976,877
Diluted 19,368,145 19,421,519
Units Sold: 2,809 2,296
MONACO COACH CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited: dollars in thousands)
December 30, March 31,
2000 2001
ASSETS
Current assets:
Trade receivables, net $67,998 $76,770
Inventories 114,397 115,280
Prepaid expenses 1,046 1,146
Deferred income taxes 13,197 13,535
Total current assets 196,638 206,731
Notes receivable 2,800 7,010
Property, plant and equipment, net 103,590 104,186
Goodwill, net of accumulated amortization
of $4,675 and $4,836, respectively 18,582 18,421
Total assets $321,610 $336,348
LIABILITIES
Current liabilities:
Book overdraft $15,178 $21,189
Line of credit 20,585 21,733
Accounts payable 53,098 53,635
Income taxes payable 0 2,632
Accrued expenses and other liabilities 38,478 36,936
Total current liabilities 127,339 136,125
Deferred income taxes 7,646 8,320
Total liabilities 134,985 144,445
STOCKHOLDERS' EQUITY
Common stock, $.01 par value; 50,000,000 shares
authorized, 18,952,107 and 18,990,111 issued
and outstanding respectively 190 190
Additional paid-in capital 47,032 47,113
Retained earnings 139,403 144,600
Total stockholders' equity 186,625 191,903
Total liabilities and stockholders' equity $321,610 $336,348
MONACO COACH CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited: dollars in thousands)
Quarter Ended
April 1, March 31,
2000 2001
Increase (Decrease) in Cash:
Cash flows from operating activities:
Net income $12,918 $5,197
Adjustments to reconcile net income to
net cash provided (used) by operating
activities:
Depreciation and amortization 1,516 1,641
Deferred income taxes (886) 336
Changes in working capital accounts:
Trade receivables, net (14,106) (8,772)
Inventories (13,205) (883)
Prepaid expenses (214) (100)
Accounts payable 33,940 537
Income taxes payable 8,523 2,632
Accrued expenses and other liabilities 1,548 (1,542)
Net cash provided (used) by operating
activities 30,034 (954)
Cash flows from investing activities:
Additions to property, plant and equipment (3,099) (2,076)
Issuance of notes receivable (4,210)
Net cash used in investing activities (3,099) (6,286)
Cash flows from financing activities:
Book overdraft (12,478) 6,011
(Payments) Borrowings on lines of credit,
net (7,853) 1,148
Issuance of common stock 273 81
Net cash (used) provided by financing
activities (20,058) 7,240
Net change in cash 6,877 0
Cash at beginning of period 0 0
Cash at end of period $6,877 $0
