Monaco Coach Reports Record Second Quarter Earnings
28 July 1998
Monaco Coach Reports Record Second Quarter Earnings
COBURG, Ore., July 28 -- Monaco Coach Corporation
today released second quarter earnings, reporting operating
income up 52.4% as compared to results for the same period of 1997.
For the three months ended July 4, 1998, net sales for Monaco Coach
totaled $134.7 million. Gross profit and operating income were $18.1 million
and $8.1 million, respectively. Net income and earnings per share were
$4.5 million and 53 cents, respectively. Gross margin was 13.5% for the
quarter. Monaco sold 1,060 motorized units and 506 towable units in the
second quarter of 1998.
For the six months ended July 4, 1998, net sales for Monaco Coach totaled
$271.8 million. Gross profit and operating income for this period were
$36.5 million and $15.8 million. Net income and earnings per share were
$8.7 million and $1.03, respectively.
Kay L. Toolson, Monaco Coach Corporation Chairman and Chief Executive
Officer, stated, "We're pleased to announce record sales and earnings for the
first six months of 1998. Demand for our core motorhome products remained
particularly strong. Additionally, our new Monaco branded LaPalma and Holiday
Rambler Admiral gasoline motorhomes have been well received by our dealers.
These two new products occupy attractive price points in the large gasoline
class A motorhome market. They also further broaden our product line and
provide us with an excellent opportunity to gain market share."
Chief Financial Officer, John Nepute added, "Consolidation of our towable
production in Indiana is complete, and we continue to increase production at
our motorhome plants in Oregon and Indiana."
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 builds luxury motorcoach models: LaPalma, Diplomat, Windsor, Dynasty,
the Executive, Signature Series and Royale Coach by Monaco. The Company's
Holiday Rambler Division builds quality travel trailers, fifth wheel towables
and motor coaches, including: Alumascape, Aluma-Lite, Admiral, Vacationer,
Endeavor, Imperial, and Navigator. The Company's McKenzie Towables Division
produces travel trailers and fifth wheel recreational vehicles.
The statements in this report regarding the sales momentum for the
Company's products and new product introductions, an inability to increase
production to meet demand due to a tight labor market or other factors, and
anticipated production increases are forward-looking statements. A number of
factors could cause actual results to differ materially from these statements,
including slower than anticipated sales of new and existing products, a
general slowdown in the economy, or new product introductions by competitors.
Please refer to the Company's SEC reports, including but not limited to the
report on Form 10-Q for the quarter ended July 4, 1998, and the 1997 Annual
Report to Shareholders for additional factors.
Monaco Coach Corporation
(Unaudited: dollars in thousands, except per share data)
Three months ended Six months ended
July 4, June 28, July 4, June 28,
1998 1997 1998 1997
Net Sales $134,673 $105,981 $271,841 $215,005
Gross Profit 18,131 14,329 36,478 29,363
Operating Income 8,138 5,341 15,756 10,732
Income Before Taxes 7,688 4,814 14,860 9,423
Net Income 4,491 2,816 8,686 5,513
Net Income attributable to
common stock@ 4,491 2,524 8,686 5,196
Earnings per share:
Basic 0.54 0.37 1.05 0.77
Diluted 0.53 0.36 1.03 0.76
Weighted Average of
Common Shares Outstanding:
Basic 8,289,772 6,852,208 8,271,850 6,752,881
Diluted 8,479,823 6,992,578 8,467,911 7,208,997
Units Sold: 1,566 1,427** 3,214 2,918**
@ 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 75 units for the three months ended June 28, 1997, and 173
units for the six months ended June 28, 1997 sold at the Holiday World
Dealerships that were either previously owned or not Holiday Rambler
Units.
Balance Sheet
July 4, 1998 Jan. 3, 1998
Assets
Current $87,557 $81,432
Property & Equipment 58,071 55,399
Notes Receivable 814 1,125
Other (Including Goodwill) 21,340 21,876
Total Assets $167,782 $159,832
Liabilities
Current $73,327 $71,020
Deferred Tax Liability 2,738 2,564
Long-term Notes Payable 7,900 11,500
Total Liabilities 83,965 85,084
Stockholders' Equity 83,817 74,748
Total Liabilities &
Stockholders' Equity $167,782 $159,832