Monaco Coach Corporation Reports First Quarter Earnings; Sales and Earnings Reach Record Levels
27 April 1998
Monaco Coach Corporation Reports First Quarter Earnings; Sales and Earnings Reach Record Levels
COBURG, Ore., April 27 -- Monaco Coach Corporation
today released its first quarter 1998 results, stating
operating income grew 41.3% compared with the same period in 1997, on a 25.8%
increase in sales.
For the three months ended April 4, 1998, net sales for Monaco Coach
totaled $137.2 million. Gross profit and operating income for this period
were $18.3 million and $7.6 million, respectively. Net income was
$4.2 million, an increase of 55.6% as compared to the same period in 1997.
Earnings per share were 50 cents per share on approximately 8.5 million shares
outstanding, versus 38 cents per share in the first quarter of 1997 on
approximately 7.1 million shares outstanding. All earnings per share and
shares outstanding data reflect the recent 3 for 2 stock split, effective
April 16, 1998. Gross margin was 13.4% for the quarter.
"The expansion of our manufacturing capacity we initiated in 1997
continues to pay dividends," stated Kay L. Toolson, Monaco Chairman and Chief
Executive Officer. "We've recently added a third production line to our motor
home manufacturing facility in Indiana, allowing us to introduce new motor
home models in expanded price points. One result of this expansion will be
the introduction of our two newest entries into the gasoline motor home
market, set to debut this summer. We have also initiated consolidation of our
Indiana-based towable production to facilities we own in Elkhart, eliminating
our reliance on leased facilities we currently occupy in Wakarusa."
According to Monaco Chief Financial Officer John Nepute, "The market for
our motor home products remains strong, and as we introduce new motorized
models, our daily run rate should increase accordingly." Nepute noted that
demand is particularly robust for the Company's lower priced diesel products,
Diplomat and Endeavor(R) Diesel. Nepute continued, "Additionally, we've
recently completed development of a McKenzie travel trailer, set to join the
division's fifth wheel towable introduced last year." The Company sold 1,043
motorized units and 605 towable units in the first quarter.
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: Diplomat, Windsor(R),
Dynasty(R), The Executive(R), Signature Series and Royale Coach by Monaco.
The Company's Holiday Rambler(R) Division builds both travel trailers and
fifth wheel towable recreational vehicles as well as motorcoaches, including:
Alumascape(R), Aluma-Lite(R), Vacationer(R), Endeavor(R), Imperial(TM) and
Navigator(R). The Company's McKenzie Towables Division produces both travel
trailers and fifth wheel towable recreational vehicles.
The statements in this report regarding new product introductions and
product demand 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
slow-down 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 April 4, 1998, and its 1997 Annual
Report to Shareholders for additional factors.
Monaco Coach Corporation
(Unaudited: dollars in thousands, except per share data)
Three months ended
April 4, 1998 March 29, 1997
Net Sales $137,169 $109,024
Gross Profit 18,347 15,034
Operating Income 7,618 5,391
Income Before Taxes 7,171 4,607
Net Income 4,196 2,697
Net Income attributable to
common stock (A) 4,196 2,672
Earnings per share:
Basic 0.51 0.40
Diluted 0.50 0.38
Weighted Average of Common
Shares Outstanding:
Basic 8,253,928 6,653,554
Diluted 8,456,000 7,120,954
Units Sold: (B) 1,648 1,491
(A) 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.
(B) Excludes 98 units for the three months ended March 29, 1997 sold
that were either previously owned or not Holiday Rambler units.
BALANCE SHEET
April 4, 1998 January 3, 1998
Assets
Current $100,207 $81,432
Property & Equipment 58,119 55,399
Notes Receivable 843 1,125
Other (Including Goodwill) 21,604 21,876
Total Assets $180,773 $159,832
Liabilities
Current $88,791 $71,020
Deferred Tax Liability 2,651 2,564
Long-term Notes Payable 10,250 11,500
Total Liabilities 101,692 85,084
Stockholders' Equity 79,081 74,748
Total Liabilities &
Stockholders' Equity $180,773 $159,832
SOURCE Monaco Coach Corporation