National R.V. Holdings, Inc. Reports Record Revenues
19 October 1999
National R.V. Holdings, Inc. Reports Record Revenues, Profitability and Market Share
PERRIS, Calif., Oct. 19 -- National R.V. Holdings, Inc.
announced today record results of operations for the third quarter
ended September 30, 1999. Net sales for the period increased 13% to
$109 million from the $96 million realized during the same quarter in 1998.
Gross and operating margins increased to 18.0% and 13.6%, respectively, for
the quarter compared to 15.8% and 11.0% for the same quarter last year. As a
result, net income grew 37% to $9 million, or $0.82 per diluted share, from
$6.6 million, or $0.57 per diluted share in the third quarter of 1998.
For the nine months ended September 30, 1999, net sales were up 18.6% to
$317 million from the same period in 1998. The gross margin increased from
15.7% for the nine months last year to 16.9% this year. The operating margin
increased to 12.9% from 10.8% last year for the same nine-month period.
Wayne Mertes, National R.V. Holdings CEO stated, "Once again, we achieved
record results for the quarter. Also, our share of the retail Class "A" motor
home market rose during the first eight months of this year to 8.5% from the
8.1% realized during the same period in 1998. National has experienced market
share growth dating back to 1992.
Mertes continued, "As we have done in the past, we intend to dedicate our
efforts towards maintaining the highest possible margins in our industry and
believe that our presence in the RV market can only be strengthened by
vigilant attention to detail. We continue to explore ways to contain costs,
increase operating efficiencies, and develop new revenue opportunities. Going
forward, we will continue to introduce new and remodeled products to attract
more customers. Full-scale production of the Islander is underway, and in
this 4th quarter, National R.V. will begin production of the Caribbean, its
third entrant in the diesel-pusher category."
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 Caribbean, Dolphin, Islander, Palisades, Sea Breeze, Sea View,
Surf Side, Tradewinds and Tropi-Cal. 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 Affinity, Allure,
Concept, Intrigue, Magna and Max.
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, 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.
NATIONAL R.V. HOLDINGS, INC.
CONSOLIDATED STATEMENT OF INCOME
(In thousands except per share data)
(Unaudited)
Three Months Nine Months
Ended September 30, Ended September 30,
1999 1998 1999 1998
Net sales $108,947 $96,403 $317,267 $267,562
Cost of goods sold 89,333 81,124 263,520 225,596
Gross profit 19,614 15,279 53,747 41,966
Selling expenses 3,079 2,842 8,403 8,117
General and
administrative expenses 1,648 1,684 5,382 4,710
Amortization of intangibles 103 103 310 310
Operating income 14,784 10,650 39,652 28,829
Other expense (income): (370) (89) (1,319) 80
Income before income taxes 15,154 10,739 40,971 28,749
Provision for income taxes 6,134 4,138 16,369 11,403
Net income $9,020 $6,601 $24,602 $17,346
Earnings per common share and
common equivalent shares:
Basic $0.86 $0.65 $2.37 $1.76
Diluted $0.82 $0.57 $2.20 $1.52
Weighted average
number of shares:
Basic 10,448 10,113 10,392 9,861
Diluted 11,054 11,498 11,185 11,409
NATIONAL R.V. HOLDINGS, INC.
CONSOLIDATED BALANCE SHEET
(In thousands)
(Unaudited)
September 30, December 31,
1999 1998
ASSETS
Current Assets:
Cash $31,457 $10,446
Trade receivables 22,204 20,719
Inventories 58,709 46,832
Deferred income taxes 4,663 3,883
Prepaid expenses 3,200 809
Total current assets 120,233 82,689
Goodwill 6,681 7,365
Property, plant and equipment, net 29,681 24,341
Other 1,235 3,344
$157,830 $117,739
LIABILITIES AND
STOCKHOLDER'S EQUITY
Current liabilities:
Current portion of long-term debt $20 $166
Accounts payable 19,397 8,771
Accrued expenses 15,083 10,272
Total current liabilities 34,500 19,209
Deferred income taxes 2,391 2,341
Long-term debt 90 1,700
Stockholders' equity 120,850 94,489
$157,831 $117,739