National R.V. Holdings, Inc. Announces Q2 Results
21 July 1998
National R.V. Holdings, Inc. Announces Record Second Quarter Sales and Earnings
PERRIS, Calif., July 21 -- National R.V. Holdings, Inc.
, announced today its results of operations for the second
quarter ended June 30, 1998. Net sales for the second quarter of 1998
increased 31.3% to $90.9 million from $69.2 million for the second quarter of
1997. Net income for the second quarter of 1998 increased 84.9% to
$5.8 million from $3.1 million for the second quarter of 1997. Diluted
earnings per share were $0.76 compared to $0.46 in the second quarter of 1997.
Net sales for the six months ended June 30, 1998 increased 33.9% to
$171.2 million from $127.8 million in the first six months of 1997. Net
income for the six months ended June 30, 1998 increased 95.1% to
$10.7 million from $5.5 million in the first six months of 1997. Diluted
earnings per share were $1.42, compared to $0.82 per share in the first six
months of 1997.
Wayne Mertes, National's President and CEO, stated, "We are pleased to
announce record results for the quarter. Both demand and backlog for both
Country Coach's and National RV's products continues to be strong. We are
pleased at the 11.1% operating margin in the second quarter as higher sales
levels continue to increase our margins."
National R.V. Holdings, Inc. is one of the nation's leading manufacturers
of Class A motorhomes. Through its National R.V. subsidiary, the Company
designs, manufactures and markets Class A motorhomes and fifth-wheel travel
trailers under brand names including Dolphin, Sea Breeze and Tropi-Cal.
Through its Country Coach subsidiary, the Company designs, manufactures and
markets high-end (Highline) Class A motorhomes and bus conversions under brand
names including Concept, Affinity, Magna, Intrigue, and Allure.
This release and other statements by the Company contain forward-looking
statements within the meaning of the Private Securities Litigation Reform Act
of 1995. Investors are cautioned that forward-looking statements are
inherently uncertain. Actual performance and results may differ materially
from that projected or suggested due to certain risks and uncertainties
including, without limitation, the cyclical nature of the recreational vehicle
industry, seasonality and potential fluctuations in the Company's operating
results; the Company's dependence on chassis suppliers, including the impact
of the General Motors' labor strike; the integration by the Company of
acquired businesses and management of growth; potential liabilities under
repurchase agreements; competition; government regulation; product liability;
dependence on key personnel and dependence on certain dealers and
concentration of dealers in certain regions. Additional information
concerning certain risks and uncertainties that could cause actual results to
differ materially from that projected or suggested is contained in the
Company's filings with the Securities and Exchange Commission (SEC) over the
last 12 months, copies of which are available from the SEC or from the Company
upon request.
National R.V. Holdings, Inc.
Consolidated Statement of Income
(in thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
1998 1997 1998 1997
Net sales $90,873 $69,191 $171,159 $127,787
Gross profit 14,298 9,107 26,687 16,710
Income before
income taxes 9,940 5,265 18,010 9,352
Provision for
income taxes 4,172 2,146 7,265 3,844
Net income $5,768 $3,119 $10,745 $5,508
Earnings per share
Basic $0.88 $0.50 $1.66 $0.88
Diluted $0.76 $0.46 $1.42 $0.82
Weighted average shares
outstanding
Basic 6,551 6,238 6,490 6,235
Diluted 7,608 6,733 7,576 6,724