Monaco Coach Reports Record Fourth Quarter and 1997 Fiscal Year End Results
4 February 1998
Monaco Coach Reports Record Fourth Quarter and 1997 Fiscal Year End Results
COBURG, Ore., Feb. 4 -- Monaco Coach Corporation
today released its 1997 year-end results, stating operating
income grew 46.1 percent compared with proforma 1996 results, on a 20.9
percent increase in sales. The Company also reported fourth quarter earnings,
reporting operating income up 37.0 percent as compared to the same period of
1996, on a 27.6 percent increase in sales.
For the twelve months ended January 3, 1998, net sales for Monaco Coach
totaled $441.9 million. Gross profit and operating income for this period
were $59.5 million and $22.6 million. Net income and earnings per share were
$12.4 million and $2.39.
For the three months ended January 3, 1998, net sales for Monaco Coach
Corporation totaled $121.1 million. Gross profit and operating income were
$16.1 million and $6.5 million, respectively. Net income and earnings per
share were $3.8 million and 67 cents, respectively. Gross margin was 13.3
percent for the quarter.
"In 1997, our company initiated several steps designed to place us in a
position for continued growth," stated Kay L. Toolson, Monaco Chairman and
Chief Executive Officer. "The move into our new 667,000 square foot facility
in Wakarusa was completed swiftly and smoothly. We are preparing to add a
third production line there to meet demand for our recently introduced
Diplomat motorhome and to allow for new product introductions." The Company
plans to introduce two new gasoline powered motorhomes in the second and third
quarters of 1998.
Monaco Chief Financial Officer John Nepute added, "Demand for our
motorized products remained strong throughout 1997." Nepute continued, "After
remaining steady for most of the year, demand for our towable products began
to rise modestly in the fourth quarter." Monaco sold 923 motorized units and
551 towable units in the fourth quarter. For the twelve months ended January
3, 1998, Monaco sold 3,347 motorized units and 2,397 towable units.
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 five
luxury motorcoach models bearing the Monaco name: the Diplomat, the
Windsor(R), the Dynasty(R), the Executive(R), the Signature Series, and Royale
Coach by Monaco. Monaco's Holiday Rambler Division builds quality travel
trailers, fifth wheel towables and motorcoaches, including Alumascape(TM),
Aluma-Lite(R), Vacationer(R), Endeavor(R), Imperial(R), and Navigator(R).
Monaco's McKenzie Towables Division produces fifth wheel towable recreational
vehicles.
The statements in this report regarding new product offerings and product
are forward-looking statements. A number of factors could cause actual
results to differ materially from these statements, including delays in
introduction of new products, a lack of product demand, a general slowdown in
the economy, or new product introductions by competitors. Please also refer
to the Company's SEC reports, including but not limited to the report on Form
10-Q for the quarter ended January 3, 1998 and its 1996 Annual Report to
Shareholders for additional factors.
Monaco Coach Corporation
(Unaudited: dollars in thousands, except per share data)
Three months ended Twelve months ended
Proforma
Jan 3, Dec 28, Jan 3, Dec 28, Dec 28,
1998 1996 1998 1996* 1996
Net Sales $121,094 $94,880 $441,895 $365,638 $365,638
Gross Profit 16,081 13,650 59,528 49,477 47,729
Operating Income 6,534 4,768 22,627 15,489 13,741
Income Before
Taxes; 6,432 4,113 21,255 11,819 10,071
Net Income 3,764 2,427 12,436 6,941 5,909
Net Income
attributable to
basic Earnings
per share @ 3,764 2,394 12,078 6,782 5,750
Earnings
per share
Basic 0.68 0.54 2.42 1.53 1.30
Diluted 0.67 0.51 2.39 1.49 1.27
Weighted Average
of Common
Shares
Outstanding:
Basic 5,495,882 4,429,420 4,997,287 4,422,187 4,422,187
Diluted 5,597,448 4,714,348 5,198,656 4,668,432 4,668,432
Units Sold: 1,474 ** 1,371 ** 5,744 ** 4,710 ** 4,710 **
* Includes operations of Holiday Rambler from March 4, 1996, excluding a
charge of $1,748,000 related to a write-up in inventory value due to the
acquisition.
@ Recognizes the effect on primary earnings per share of accrued dividends
and accretion related to the redeemable preferred stock issued in connection
with the acquisition of Holiday Rambler.
** Excludes 57 units for the three months ended Dec 28, 1996, and 211
units and 820 units for the twelve months ended Jan 3, 1998 and Dec 28, 1996,
respectively, sold at the Holiday World Dealerships that were either
previously owned or not Holiday Rambler units.
Balance Sheet
Jan 3, 1998 Dec 28, 1996
Assets
Current $81,682 $73,889
Property & Equipment 55,399 38,309
Long-term Notes Receivable 1,125 636
Other (Goodwill) 21,876 22,534
Total Assets $160,082 $135,368
Liabilities
Current $71,566 $69,387
Deferred Tax Liability 2,309 2,787
Deferred Income 0 200
Long-term notes payable 11,500 16,500
Total liabilities 85,375 88,874
Redeemable Preferred Stock 2,687
Stockholders' Equity 74,707 43,807
Total Liabilities &
Stockholders' Equity $160,082 $135,368
SOURCE Monaco Coach Corporation