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Monaco Coach Reports Record Third Quarter Earnings

28 October 1997

Monaco Coach Reports Record Third Quarter Earnings

    COBURG, Ore., Oct. 28 -- Monaco Coach Corporation
today released third quarter earnings, reporting sales up 4.1%
as compared to results for the same period of 1996.
    For the three months ended September 27, 1997, net sales for Monaco Coach
totaled $105.8 million.  Gross profit and operating income were $14.1 million
and $5.4 million, respectively.  Net income and earnings per share were $3.2
million and 56 cents per share, respectively, on 5.6 million shares
outstanding, as compared to 4.7 million shares outstanding in the third
quarter of 1996.  Net income for the quarter included an after-tax gain of
$315,000, or 5.6 cents per share, from the sale of the two remaining Holiday
World dealerships acquired as part of the Company's purchase of Holiday
Rambler in 1996.  Consolidated gross margin for the quarter was 13.3 percent,
and was impacted by the discounting of inventory at the Holiday World
dealerships prior to and at the closing of their sale.  Factoring out the
stores, gross margin would have been 13.7 percent.
    For the nine months ended September 27, 1997, net sales for Monaco Coach
totaled $320.8 million.  Gross profit and operating income for this period
were $43.4 million and $16.1 million.  Net income and earnings per share were
$8.7 million and $1.71.
    According to Monaco Chairman and Chief Executive Officer Kay L. Toolson,
"I'm pleased to report that our company has completed its move into our new
facility in Wakarosa, Indiana.  The move was accomplished swiftly and
smoothly, and is allowing us to increase production of our most popular
motorized models."
    Monaco sold 781 motorized units and 571 towable units in the third quarter
of 1997.  Monaco Chief Financial Officer John Nepute commented, "Demand for
our motorized product lines remained strong throughout the third quarter,"
Nepute added.  "Unit sales of our towable products were up over this period
last year, primarily due to the introduction of several new models.  Our
McKenzie Towables fifth wheel made its public debut in a tough market, but
we've been encouraged by initial dealer and customer response."
    Headquartered in Coburg, Oregon, with additional manufacturing facilities
in Indiana, Monaco Coach Corporation is one of the nation's leading
manufacturers of recreational vehicles.  Under the Monaco nameplate, the
Company offers customers six luxury models: the Windsor, the Dynasty, the
Executive, the Signature Series, Royale Coach by Monaco, and McKenzie Towables
by Monaco.  Monaco's Holiday Rambler Division builds quality travel trailers,
fifth wheel towables and motor coaches, including: Alumascape, Aluma-Lite,
Vacationer, Endeavor, Imperial, and Navigator.

SOURCE  Monaco Coach Corporation