National R.V. Holdings, Inc. Announces Record Second Quarter Sales and Earnings
20 July 1999
National R.V. Holdings, Inc. Announces Record Second Quarter Sales and Earnings
PERRIS, Calif., July 20 -- National R.V. Holdings, Inc.
, announced today its results of operations for the second quarter
ended June 30, 1999. Net sales for the second quarter of 1999 increased 15.8%
to $105.3 million from $90.9 million for the second quarter of 1998. Net
income for the second quarter of 1999 increased 43.1% to $8.3 million from
$5.8 million for the second quarter of 1998. Diluted earnings per share were
$0.74 compared to $0.51 in the second quarter of 1998.
Net sales for the six months ended June 30, 1999 increased 21.7% to
$208.3 million from $171.2 million in the first six months of 1998. Net
income for the six months ended June 30, 1999 increased 45.8% to $15.6 million
from $10.7 million in the first six months of 1998. Diluted earnings
per share were $1.38, compared to $0.95 per share in the first six months of
1998.
Wayne Mertes, National R.V. Holdings' CEO, stated, "Once again, I am
pleased to report record results for the quarter. In addition, I'm happy to
report that our market share in the retail Class "A" motor home market rose
during the first five months of this year to 8.8% from the 8.3% achieved
during the same period in 1998."
In addition, National R.V. Holdings, Inc. announced today the appointment
of Raul Gimenez to the position of President of National R.V. Inc.
Commenting, Mr. Mertes stated "Since Raul joined us in 1996, he has done an
outstanding job as Vice President of Operations. He brings an impressive list
of credentials to the job including more than 20 years of experience at
leading companies in the RV industry. I am going to retain my position as
President and CEO of National RV Holdings, Inc. As a result of Raul's
promotion, I will now be afforded more time to pursue other opportunities that
are available to us within this dynamic and fast-growing industry."
Both National RV Holdings, Inc. subsidiaries continue to experience
excellent revenues and operating margins. The Country Coach subsidiary
recently shipped its first double-slide Prevost Conversion and anticipates
strong sales for this new product. Within the next two months, the National
R.V. subsidiary plans to roll out the Islander, its second entrant in the
diesel-pusher category, and its first motor home built on the DynoMax chassis
manufactured by Country Coach.
National R.V. Holdings, Inc. is a leading manufacturer of Class "A" motor
homes. Through its National R.V. division, the Company designs, manufactures
and markets Class "A" motor homes and fifth-wheel travel trailers under brand
names including Dolphin, Sea Breeze, Tropi-Cal, Islander, Tradewinds, Sea View
and Surf Side. Through its Country Coach division, the Company designs,
manufactures and markets high-end (Highline) Class "A" motor homes and bus
conversions under brand names including Allure, Intrigue, Magna, Affinity, and
Concept.
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.
(In thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
1999 1998 1999 1998
Net sales $ 105,338 $ 90,873 $ 208,320 $ 171,159
Gross profit 17,379 14,298 34,133 26,687
Income before
income taxes 13,639 9,940 25,817 18,010
Provision for
income taxes 5,378 4,172 10,235 7,265
Net income $ 8,261 $ 5,768 $ 15,582 $ 10,745
Earnings per share
Basic $ 0.80 $ 0.59 $ 1.50 $ 1.10
Diluted $ 0.74 $ 0.51 $ 1.38 $ 0.95
Weighted average
shares outstanding
Basic 10,378 9,734 10,364 9,734
Diluted 11,189 11,364 11,251 11,364
Consolidated Balance Sheet
June 30 December 31
1999 1998
Assets:
Cash $ 33,764 $ 10,446
Other current assets 75,308 72,243
Property and equipment 28,942 24,341
Goodwill 6,779 7,365
Other 1,152 3,344
Total Assets $ 145,945 $ 117,739
Liabilites:
Current Liabilites $ 32,495 $ 19,209
Deferred taxes 2,341 2,341
Long-term debt 95 1,700
Total liabilites 34,931 23,250
Stockholders' equity 111,014 94,489
Total liabilities and
stockholders' equity $ 145,945 $ 117,739