Monaco Coach Reports Record Q4 and 1998 Fiscal Year End Results
28 January 1999
Monaco Coach Reports Record Fourth Quarter and 1998 Fiscal Year End Results
COBURG, Ore., Jan. 28 -- Monaco Coach Corporation
today reported record revenue and earnings for its fourth quarter and fiscal
year ended January 2, 1999. Fourth quarter earnings per share were 60 cents,
an increase of 100.0% from the same period last year, on revenue of $169.7
million. For the fiscal year ended January 2, 1999, earnings per share were
$1.78 on revenue of $594.8 million, an increase of 67.9% and 34.6%
respectively. Net income for the fourth quarter rose to $7.7 million. For
the fiscal year ended January 2, 1999, net income rose 82.3% to $22.7 million.
"Several key events took place for our Company during 1998," stated Kay L.
Toolson, Monaco Chairman and Chief Executive Officer. "We further expanded
our product offerings by introducing two new gasoline powered motor home
models mid-year. We continued to ramp up production rates at our new motor
home manufacturing facility in Indiana, and broke ground on an addition to our
production facility in Coburg, Oregon. We plan to complete this addition near
the end of the third quarter. This addition is intended to allow us to meet
the growing demand for our gasoline powered motor home products. Furthermore,
we have completed consolidation of our Indiana-based towable recreational
vehicle production to a newly remodeled facility, resulting in efficiency
improvements and increased capacity at that location as well."
Monaco Chief Financial Officer John Nepute added, "Our commitment to
upgrading and expanding our facilities, along with the higher unit volumes
these plants are able to produce, enabled us to improve our margins throughout
the year." Fourth quarter operating income was $13.5 million, an increase of
106.0% over the same period last year. Operating income for the fiscal year
ended January 2, 1999 totaled $40.0 million, an increase of 76.9% over 1997
results.
Fourth quarter unit sales of Monaco Coach Corporation products totaled
2,017 units, an increase of 36.8% from the same period last year. Fourth
quarter motor home sales totaled 1,423 units, and fourth quarter towable
recreational vehicles totaled 594 units. 1998 total unit sales reached 6,985,
an increase of 21.6% from the same period last year. For the fiscal year
ended January 2, 1999, motor home unit sales totaled 4,768 units, and towable
unit sales totaled 2,217 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 luxury
recreational vehicle models under the Monaco, Holiday Rambler and McKenzie
Towables brand names.
The statements in this report regarding increased production rates,
completion schedule for Coburg, Oregon addition, and growing demand for the
Company's products 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, new product introductions by competitors, or an inability to
increase production to meet demand due to a tight labor market or other
factors. Please refer to the Company's SEC reports, including but not limited
to the report on Form 10-Q for the quarter ended October 3, 1998, and the 1997
Annual Report to Shareholders for additional factors.
Note: News releases and other information on Monaco Coach can be accessed
at no charge at http://www.ctaonline.com/ and http://www.monaco-online.com on the Internet.
Monaco Coach Corporation
(Unaudited: dollars in thousands, except per share data)
Three months ended Twelve months ended
Jan. 2, Jan. 3, Jan. 2, Jan. 3,
1999 1998 1999 1998
Net Sales $169,724 $121,094 $594,802 $441,895
Gross Profit 24,406 16,081 82,232 59,528
Operating Income 13,457 6,534 40,016 22,627
Income Before Taxes (a) 13,111 6,429 38,762 21,255
Net Income 7,670 3,764 22,669 12,436
Net income attributable
to common stock (b) 7,670 3,764 22,669 12,119
Earnings per share:
Basic 0.61 0.30 1.82 1.08
Diluted 0.60 0.30 1.78 1.06
Weighted Average of
Common Shares
Outstanding:
Basic 12,473,556 12,365,734 12,438,669 11,243,895
Diluted 12,763,263 12,594,258 12,721,323 11,696,976
Units Sold: 2,017 1,474 6,985 5,744(c)
(a) The twelve month period ended January 2, 1999 includes Other
Income of $523,000 ($306,000 net of tax or 2.4 cents per share) related to
insurance reimbursement of income loss due to the fire at the Coburg plant
on July 30, 1997.
(b) 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.
(c) Excludes 211 units for the twelve months ended January 3, 1998
sold at the Holiday World Dealerships that were either previously owned
or not Holiday Rambler units.
Balance Sheet
Jan. 2, 1999 Jan. 3, 1998
Assets
Current $106,901 $81,432
Property & Equipment 61,655 55,399
Notes Receivable 769 1,125
Other (Including Goodwill) 20,802 21,876
Total Assets $190,127 $159,832
Liabilities
Current $83,225 $71,020
Deferred Tax Liability 3,309 2,564
Long-term Notes Payable 5,400 11,500
Total Liabilities 91,934 85,084
Stockholders' Equity 98,193 74,748
Total Liabilities &
Stockholders' Equity $190,127 $159,832