Monaco Coach Reports Record Third Quarter Results
26 October 1999
Monaco Coach Reports Record Third Quarter Results
COBURG, Ore., Oct. 26 -- Monaco Coach Corporation
today reported record revenue and earnings for its third quarter
ended October 2, 1999. Third quarter earnings per diluted share were $0.58,
an increase of 75.8% from the same period last year, on revenues of
$196.7 million. Net income for the third quarter rose 77.8% to $11.2 million.
Operating income was $18.4 million, an increase of 70.6% over the same period
last year.
For the nine months ended October 2, 1999, earnings per diluted share were
$1.68, an increase of 113% from the same period last year, on revenues of
$589.1 million. For the nine months, net income rose 117% to $32.6 million.
Operating income was $54.6 million, an increase of 106% over the same period
last year.
Third quarter unit sales of Monaco Coach Corporation's products totaled
2,363 units, an increase of 34.7% from the same period last year. Third
quarter motor home sales totaled 1,560 units, and third quarter towable
recreational vehicles totaled 803 units. For the nine months, unit sales
totaled 7,195 units, an increase of 44.8% from the same period last year.
"Demand for our products remains strong, especially in the highline motor
home market," said Kay L. Toolson, Monaco Chairman and Chief Executive
Officer. "Dealer inventories are at levels typically expected for this time
of year. Additionally, we plan to introduce two new entry-level diesel
powered motor homes at our industry national convention in late November. Our
newly expanded Oregon production facility raises our total production capacity
by 40% and allows us the manufacturing flexibility to continue to bring
innovative new products to the market."
Monaco's Chief Financial Officer John Nepute added, "We're also proud to
announce that Monaco Coach Corporation has continued to increase its lead as
the nation's number one producer of diesel motor homes. Our market share in
both motor homes and towable recreational vehicles has grown over the same
period last year and our overall market share has increased by 17% over the
same period a year ago."
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 statement in this release regarding the planned introduction of two
new motor home models is a forward-looking statement based on current
information and expectations, and involves a number of risks and
uncertainties. Actual results and events may differ materially from those
projected in such statement due to various factors, including but not limited
to: whether the Company experiences an inability to increase production due to
a tight labor market or other factors; and whether the Company delays such
introductions due to new product introductions by competitors. For more
information concerning these and other possible risks, please refer to the
Company's Form 10-K, Forms 10-Q and other filings with the Securities and
Exchange Commission. These filings can be accessed over the Internet at
http://www.sec.gov.
Monaco Coach Corporation
Financial Summary
(Unaudited: dollars in thousands, except per share data)
Three months ended Nine months ended
Oct. 2, 1999 Oct. 3, 1998 Oct. 2, 1999 Oct. 3, 1998
Net sales $196,694 $153,223 $589,073 $425,078
Gross profit 30,998 21,332 91,509 57,826
Operating income 18,373 10,770 54,592(a) 26,559
Income before taxes 18,374 10,792 53,652(b) 25,651
Net income 11,227 6,313 32,562 14,999
Earnings per share:
Basic $0.60 $0.34 $1.73 $0.80
Diluted $0.58 $0.33 $1.68 $0.79
Weighted average of common
shares outstanding:
Basic 18,844,526 18,698,355 18,788,965 18,640,558
Diluted 19,428,870 19,077,594 19,353,818 19,061,065
Units sold: 2,363 1,754 7,195 4,968
(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
Oct. 2, 1999 Jan. 2, 1999
Assets
Current $133,657 $106,901
Property & equipment 87,837 61,655
Notes receivable -- 769
Other (including goodwill) 19,526 20,802
Total assets $241,020 $190,127
Liabilities
Current $105,937 $83,225
Deferred tax liability 3,563 3,309
Long-term notes payable -- 5,400
Total liabilities $109,500 $91,934
Stockholders' equity $131,520 $98,193
Total liabilities &
stockholders' equity $241,020 $190,127