Monaco Coach Reports Second Quarter Results
26 July 1999
Monaco Coach Reports Second Quarter Results; Revenues and Earnings Reach Record Levels
COBURG, Ore., July 26 -- Monaco Coach Corporation
today reported record revenue and earnings for its second quarter ended July
3, 1999. Second quarter diluted earnings per share were $0.59, an increase
of 146% from the same period last year, on revenue of $199.2 million. Net
income for the second quarter rose 155% to $11.5 million. Second quarter
operating income was $18.9 million, an increase of 131% over the same period
last year.
For the six months ended July 3, 1999, diluted earnings per share were
$1.10, an increase of 139% from the same period last year, on revenue of
$392.4 million. For the six months ended July 3, 1999 net income rose 146% to
$21.3 million. Operating income for the six months ended July 3, 1999 was
$36.2 million, an increase of 129% over the same period last year.
Second quarter unit sales of Monaco Coach Corporation products totaled
2,454 units, an increase of 57% from the same period last year. Second
quarter motor home sales totaled 1,637 units, and second quarter towable
recreational vehicles totaled 817 units. For the six months ended July 3,
1999, unit sales totaled 4,832 units, an increase of 50% from the same period
last year.
"Our retail dealers have reported brisk showroom traffic, and demand for
our products remains strong," stated Kay L. Toolson, Monaco Chairman and Chief
Executive Officer. "Construction on our 525,000 square foot Coburg, Oregon
facilities expansion is nearing completion. Also, we've recently reached an
agreement to acquire additional production space in Indiana to allow us to
increase our diesel motor home production capacity. This expansion in both
Oregon and Indiana will greatly enhance our company's manufacturing
capabilities." Toolson stated that the Indiana property is adjacent to the
Company's existing Elkhart operations, and includes 250,000 square feet of
additional production space.
Monaco Chief Financial Officer, John Nepute, added, "As a company, we
worked very hard throughout the second quarter to complete our yearly model
change smoothly and efficiently. We've also identified segments of the
recreational vehicle market where opportunities exist to increase sales and
market share. We are currently developing products that target several new
price points within the market and our expanded facilities will provide us
with the production capacity necessary to pursue additional market segments."
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
brand names.
The statements in this press release regarding demand for the Company's
products, expansion of the Company's manufacturing capacity and development of
new products are forward-looking statements. Actual results could differ
materially from those projected in such statements due to a number of factors,
including the following: a decline in demand due to rising interest rates,
increased fuel costs or other reasons; a general slowdown in the economy; new
product introductions by competitors; an inability to increase production to
meet demand due to a tight labor market or other factors; difficulties in
completing the new manufacturing facilities or in ramping up production in
those facilities.
Monaco Coach Corporation
Financial Summary
(Unaudited: dollars in thousands except per share data)
Three months ended Six months ended
July 3, 1999 July 4, 1998 July 3, 1999 July 4, 1998
Net sales $ 199,177 $ 134,679 $ 392,378 $271,855
Gross profit 31,324 18,141 60,472 36,494
Operating income 18,915 8,173 36,215(a) 15,789
Income before taxes 18,948 7,690 35,274(b) 14,859
Net income 11,453 4,493 21,331 8,686
Earnings per share:
Basic $0.61 $0.24 $1.14 $0.47
Diluted $0.59 $0.24 $1.10 $0.46
Weighted average of common
shares outstanding:
Basic 18,785,290 18,651,987 18,761,185 18,611,662
Diluted 19,346,131 19,079,601 19,316,293 19,052,799
Units sold: 2,454 1,566 4,832 3,214
(a) Includes a $1.75 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 payoff of Long-term Note Payable.
Balance Sheet
July 3, 1999 Jan. 2, 1999
Assets
Current $ 130,989 $ 106,901
Property & equipment 80,033 61,655
Notes receivable -- 769
Other (including goodwill) 19,710 20,802
Total assets $ 230,732 $ 190,127
Liabilities
Current $ 107,114 $83,225
Deferred tax liability 3,500 3,309
Long-term notes payable -- 5,400
Total liabilities 110,614 91,934
Stockholders' equity 120,118 98,193
Total liabilities &
stockholders' equity $ 230,732 $ 190,127