National R.V. Holdings, Inc. Reports First Quarter Results
27 April 2000
National R.V. Holdings, Inc. Reports First Quarter Results
PERRIS, Calif., April 27 National R.V. Holdings, Inc.
(NYSE: NVH), today reported results for the first quarter ended March 31,
2000. Net sales for the quarter increased 2.2% to $105.2 million from
$103.0 million for the first quarter of 1999. Net income for the quarter
decreased 11.3% to $6.5 million from $7.3 million for the same quarter last
year. Earnings per diluted share declined 3% to $0.62 compared to $0.64 last
year.
The majority of the decrease in gross margin and net income was the result
of a one-time charge to warranty expense of $1 million, or $0.06 per share,
resulting from a voluntary offer by the Company to correct a weight
distribution issue on certain motorhomes. In addition, selling, general and
administrative costs were higher than in the previous quarter due to certain
costs related to new dealers, increased sales incentives and higher
compensation and related expenses.
Wayne Mertes, National's President and CEO, stated, "Despite this one-time
charge and higher SG&A expenses, our operating margin approached 10% for the
quarter-still one of the highest in the industry." Commenting on Class "A"
growth, Mr. Mertes stated, "According to RVIA statistics, wholesale Class 'A'
motorhome sales were down 5% nationwide in February compared to a year ago.
And, due to current retail trends, we expect second quarter revenues to be
down 10-12% from the same quarter last year."
The Company continues to introduce additional products in the diesel
motorhome market as well as to improve its offering of motorhomes with dual
slide-out rooms and additional floor plans in all of its product lines. The
new diesel products will be priced in the higher volume segment of the diesel
market, and shipments are scheduled to begin in the third quarter.
The Company broke ground at its Perris facility for the new towables plant
with many in attendance. Prototype models of several of the towable products
to be manufactured in the new facility were on display at the groundbreaking
ceremony. Construction on the facility is scheduled to be completed in
September. According to Raul Gimenez, President of the National RV division
responsible for the new towables operations, "These towable products are
currently being shown to select dealers on the West Coast and are being well
received. Towables currently represent the fastest growing segment of the RV
industry according to RVIA statistics."
National also announced that during the first quarter it completed the
repurchase of 932,900 shares of its common stock under its previously
announced repurchase plan.
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.
NATIONAL R.V. HOLDINGS, INC.
CONSOLIDATED STATEMENT OF INCOME
(In thousands except per share data)
(Unaudited)
Three Months
Ended March 31,
2000 1999
Net sales $105,255 $102,982
Cost of goods sold 89,178 86,228
Gross profit 16,077 16,754
Selling expenses 3,370 2,712
General and administrative expenses 2,436 1,908
Amortization of intangibles 103 103
Operating income 10,168 12,031
Other expense (income):
Interest expense 1 22
Interest income (254) (165)
Other 8 (4)
Income before income taxes 10,413 12,178
Provision for income taxes 3,917 4,857
Net income $6,496 $7,321
Earnings per common share and
common equivalent shares:
Basic $0.65 $0.71
Diluted $0.62 $0.64
Weighted average number of shares:
Basic 10,034 10,347
Diluted 10,544 11,522
NATIONAL R.V. HOLDINGS, INC.
CONSOLIDATED BALANCE SHEET
(In thousands)
(Unaudited)
March 31, December 31,
2000 1999
(Unaudited)
ASSETS
Current Assets:
Cash $6,491 $20,301
Net receivables 36,447 22,473
Inventories 62,051 68,187
Deferred income taxes 6,489 5,610
Prepaid expenses 1,151 1,439
Total current assets 112,629 118,010
Goodwill 6,849 6,952
Property, plant and equipment, net 36,054 33,167
Other 1,154 1,085
$156,686 $159,214
LIABILITIES AND STOCKHOLDER'S EQUITY
Current liabilities:
Current portion of long-term debt $20 $20
Accounts payable 11,370 11,166
Accrued expenses 20,800 14,908
Total current liabilities 32,190 26,094
Deferred income taxes 2,603 2,470
Long-term debt 79 84
Common stock 106 106
Additional paid-in capital 47,779 47,768
Retained earnings 89,188 82,692
Less cost of treasury stock (15,259) --
Total stockholders' equity 121,814 130,566
$156,686 $159,214
Please direct questions to investors@nrvh.com.