Monaco Coach Corporation Reports Preliminary Second Quarter Results and Announces Conference Call on the Web
COBURG, Ore., July 20 -- Monaco Coach Corporation today announced preliminary results for the second quarter ended July 1, 2006. The Company estimates that second quarter revenues will be approximately $320 million, and expects net income to be approximately break-even for the quarter, compared to revenues of $305 million and earnings of 3 cents per share for the second quarter of 2005.
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"Class A motorhome shipments continue to be lower than expected," said Monaco Coach Corporation Chairman and CEO Kay Toolson. "As a result, capacity utilization was less than planned and negatively impacted our gross margin. We also provided incentives to sell remaining 2006 models in an effort to manage inventory levels as 2007 model year units begin to come off line. Results of our towable group and particularly the recently acquired R-Vision business look to be very solid and reflective of the strength in that segment of the RV market."
"Acceptance of the 2007 models introduced at our Dealer Congress held at the end of June was extremely positive at every price point," Toolson continued. "Our new 2007 product line-up places us squarely in the heart of the growing lower-priced market. We introduced several new Class B's, B+'s and lower priced Class C models, as well as lightweight, inexpensive travel trailers."
"We believe the impact of higher interest rates and higher fuel prices on consumer confidence has adversely affected motorhome sales industry-wide," said John Nepute, Monaco Coach Corporation President. "In light of this challenging operating environment, we expect the consolidation and reorganization of our production lines, announced last quarter, will more closely align us with today's market, and we should begin to see increased efficiencies from these adjustments during the second half of the year. While the new configuration makes us a leaner organization, it still leaves us with plenty of capacity to react quickly when market conditions improve."
"We are confident that our recently announced introduction of Monaco Financial Services, which incorporates 30 days free flooring for our dealer partners on class A's and 15 days free flooring on all other units, will help counteract some of the pressure from higher interest rates and will help our dealers hold down their inventory carrying costs," added Nepute.
Monaco Coach Corporation will provide further information on its second quarter results as well as guidance for the third quarter during the Company's second quarter conference call, which is scheduled for Wednesday, July 26th at 11:00 a.m. Pacific Time (see details below).
The statements above regarding the Company's anticipated second quarter revenue and net income as well as the expectation of improved manufacturing efficiencies in the second half are forward-looking statements subject to various risks and uncertainties that could cause actual results to differ materially from these statements, including final accounting adjustments for the quarter, further declines in the wholesale markets for recreational vehicles, additional discounting by competitors, further reduction in consumer confidence and increasing interest rates affecting retail and wholesale financing. Please refer to the Company's SEC reports, for additional risks and uncertainties, including but not limited to the most recent Form 10-Q, the annual report on Form 10-K for 2005, and the 2005 Annual Report to Shareholders for additional factors. These filings can be accessed over the Internet at http://www.sec.gov/.
Second Quarter Conference Call on the Web
In conjunction with its second quarter earnings release, Monaco Coach Corporation invites you to listen to its conference call broadcast live over the Internet at 2:00 p.m. Eastern Time on Wednesday, July 26, 2006.
What: Monaco Coach Corporation Conference Call
When: Wednesday, July 26, 2006 at 2:00 p.m. Eastern Time
Where: http://www.monaco-online.com/
How: Live over the Internet -- Simply log on to the web at the
address above
Contact: Craig Wanichek, Investor Relations, 541-681-8029, or email
craig.wanichek@monacocoach.com
Monaco Coach Corporation is one of the nation's leading manufacturers of recreational vehicles. Headquartered in Coburg, Oregon, with substantial manufacturing facilities in Indiana, Monaco Coach Corporation employs approximately 6,000 people. Monaco Coach offers entry-level priced towable RVs up to custom made luxury recreational vehicle models under the Monaco, Holiday Rambler, Safari, Beaver, McKenzie and R-Vision brand names. Monaco Coach Corporation trades on the New York Stock Exchange under the symbol "MNC," and the Company is included in the S&P Small-Cap 600 stock index. For additional information about Monaco Coach Corporation, please visit www.monaco-online.com or www.trail-lite.com.
If you are unable to participate during the live webcast, the call will be archived on the web site. To access the replay, click on http://www.monaco-online.com/.
Minimum requirements to listen to broadcast
The Windows Media Player software downloadable free from: http://www.microsoft.com/windows/windowsmedia/download/AllDownloads.aspx?displ ang=en&qstechnology and at least a 28.8 Kbps connection to the Internet or: The RealPlayer software, downloadable free from www.real.com/products/player/index.html, and at least a 14.4Kbps connection to the Internet.
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