Monaco Coach Reports First Quarter Results
27 April 1999
Monaco Coach Reports First Quarter Results; Revenues and Earnings Reach Record Levels
COBURG, Ore., April 27 -- Monaco Coach Corporation
today reported record revenue and earnings for its first quarter
ended April 3, 1999. First quarter earnings per share were 77 cents, an
increase of 133.3% from the same period last year, on revenue of
$193.2 million. Net income for the first quarter rose 135.6% to $9.9 million.
First quarter operating income was $17.3 million, an increase of 127.2% over
the same period last year.
"The focus on our business plan, coupled with a healthy RV market, allowed
us to continue the momentum our Company has experienced," stated
Kay L. Toolson, Monaco Chairman and Chief Executive Officer. "Response to our
first model year 2000 motor homes has been tremendous and demand for our
products remains high. At a recent Family Motor Coach Association retail show
in Georgia, we set record sales for both our Company and the event."
Monaco Chief Financial Officer John Nepute added, "Our recently updated
and expanded facilities are resulting in improved efficiencies and margin
enhancements. Progress on our expansion in Oregon remains on schedule. When
complete, the additional production capacity will allow us to better meet
demand for our gasoline powered and lower priced diesel powered motor homes.
The added capacity will also allow us the flexibility to pursue new segments
of the RV market through new product introductions." First quarter unit sales
of Monaco Coach Corporation products totaled 2,378 units, an increase of
44.3% from the same period last year. First quarter motor home sales totaled
1,590 units, and first quarter towable recreational vehicles totaled
788 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 demand for the Company's products,
improved manufacturing efficiencies and margins and the effects of additional
production capacity 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 annual report on Form 10-K for 1998, and the 1998 Annual Report to
Shareholders for additional factors.
Monaco Coach Corporation
(Unaudited: dollars in thousands, except per share data)
Three months ended
April 3, 1999 April 4, 1998
Net Sales $193,201 $137,176
Gross Profit 29,047 18,353
Operating Income (a) 17,300 7,616
Income Before Taxes (b) 16,326 7,169
Net Income 9,878 4,193
Earnings per share:
Basic 0.79 0.34
Diluted 0.77 0.33
Weighted Average of
Common Shares Outstanding:
Basic 12,491,385 12,380,892
Diluted 12,857,142 12,684,000
Units Sold: 2,378 1,648
(a) Includes a $1.8 million benefit from an adjustment of 1998 incentive
based compensation.
(b) Includes a $639,000 expense from write off of debt issuance costs due
to Long-term Note Payable.
Balance Sheet
April 3, 1999 April 4, 1998
Assets
Current $121,404 $100,207
Property & Equipment 69,323 58,119
Notes Receivable 0 843
Other (Including Goodwill) 19,894 21,604
Total Assets $210,621 $180,773
Liabilities
Current $99,106 $88,791
Deferred Tax Liability 3,396 2,651
Long-term Note Payable 0 10,250
Total Liabilities 102,502 101,692
Stockholders' Equity 108,119 79,081
Total Liabilities
& Stockholders Equity $210,621 $180,773