National R.V. Holdings Announces Record Q4 and 1999 Operating Results
24 January 2000
National R.V. Holdings, Inc. Announces Record Fourth Quarter and 1999 Operating Results and Stock Repurchase
PERRIS, Calif., Jan. 24 -- National R.V. Holdings, Inc.
, announced today record fourth quarter and year end results and
the authorization of the repurchase of up to one million shares of its common
stock.
Net sales for the fourth quarter of 1999 increased 10.1% to $102.2 million
from $92.8 million for the fourth quarter of 1998. Net income for the fourth
quarter of 1999 increased 23.5% to $8.3 million, or $0.75 per diluted share,
from $6.8 million, or $0.59, for the fourth quarter of 1998.
Net sales for the year ended December 31, 1999 increased 16.4% to
$419.4 million from $360.3 million last year. Net income for the year ended
December 31, 1999 increased 36.7% to $33.0 million, or $2.95 per diluted
share, from $24.1 million, or $2.11, last year.
Wayne Mertes, National's President and CEO, stated, "We are pleased to
announce record results for the fourth quarter and full year. The Company's
Class A motorhome market share is 8.2% through November 30, 1999 consistent
with its 1998 level, reflecting the continued acceptance of our products.
Operating margins of 12.3% for the year continue to outpace our competition in
regards to profitability."
"The Company expects first quarter 2000 revenue to increase only modestly
over the same quarter in 1999," said Mr. Mertes. "However, we anticipate
further improvements in revenue growth during the year as we continue to
introduce new floor plans across our product lines."
National also announced that its Board of Directors has authorized the
repurchase of up to one million shares of its common stock, from time to time
in the open market, through privately negotiated purchases, or otherwise. The
timing and price of any such purchases will be subject to market conditions.
Commenting on the share repurchase, Gary Siegler, Chairman of National's Board
of Directors, stated, "Based on the company's performance and prospects, the
Board believes that the repurchase of a significant amount of the company's
shares represents an excellent opportunity."
National R.V. Holdings, Inc. is a leading manufacturer of Class "A" motor
homes. From its Perris, California facility, the Company designs, manufactures
and markets National R.V. 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. From its Junction
City facility, the Company designs, manufactures and markets Country Coach
high-end (Highline) Class "A" motor homes and bus conversions under brand
names including Affinity, Allure, Intrigue and Magna.
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.
(Financial table follows)
NATIONAL R.V. HOLDINGS, INC.
CONSOLIDATED STATEMENT OF INCOME
(In thousands except per share data)
(Unaudited)
Three Months Year
Ended December 31, Ended December 31,
1999 1998 1999 1998
Net sales $102,154 $92,764 $419,421 $360,326
Cost of goods sold 85,072 76,502 348,592 302,098
Gross profit 17,082 16,262 70,829 58,228
Selling expenses 3,034 3,037 11,437 11,154
General and
administrative expenses 1,832 1,876 7,214 6,586
Amortization of intangibles 103 103 413 413
Operating income 12,113 11,246 51,765 40,075
Other income: (492) (147) (1,811) (67)
Income before income taxes 12,605 11,393 53,576 40,142
Provision for income taxes 4,256 4,630 20,625 16,033
Net income $8,349 $6,763 $32,951 $24,109
Earnings per common share
and common equivalent shares:
Basic $0.80 $0.67 $3.16 $2.42
Diluted $0.75 $0.59 $2.95 $2.11
Weighted average
number of shares:
Basic 10,448 10,113 10,430 9,961
Diluted 11,149 11,498 11,178 11,423
NATIONAL R.V. HOLDINGS, INC.
CONSOLIDATED BALANCE SHEET
(In thousands)
(Unaudited)
December 31, December 31,
1999 1998
ASSETS
Current Assets:
Cash $20,301 $10,446
Trade receivables 22,473 20,719
Inventories 68,187 46,832
Deferred income taxes 5,610 3,883
Prepaid expenses 1,439 809
Total current assets 118,010 82,689
Goodwill 6,952 7,365
Property, plant and equipment, net 33,167 24,341
Other 1,085 3,344
$159,214 $117,739
LIABILITIES AND STOCKHOLDER'S EQUITY
Current liabilities:
Current portion of long-term debt $-- $166
Accounts payable 11,166 8,771
Accrued expenses 14,908 10,272
Total current liabilities 26,074 19,209
Deferred income taxes 2,470 2,341
Long-term debt 84 1,700
Stockholders' equity 130,586 94,489
$159,214 $117,739