National R.V. Holdings, Inc. Reports Second Quarter Results
20 July 2000
National R.V. Holdings, Inc. Reports Second Quarter Results
PERRIS, Calif. - National R.V. Holdings, Inc., today reported results for
the second quarter ended June 30, 2000. Net sales for the quarter decreased
29.3% to $74.5 million from $105.3 million for the second quarter of 1999. Net
income for the quarter declined to $1.2 million from $8.3 million for the same
quarter last year. Earnings per diluted share declined to $0.12 compared to
$0.74 last year.
Net sales for the six months ended June 30, 2000 were down 13.7% to
$179.8 million from $208.3 million for the same period last year. Net income
for the six months declined to $7.7 million from $15.6 million last year.
Earnings per diluted share for the six months declined to $0.75 compared to
$1.38 for the same period last year.
Wayne Mertes, National's President and CEO, stated, "We saw a continued
weakening in the Class "A" motorhome market during the second quarter.
Company sales, orders, and backlogs were substantially below prior year levels
due primarily to lighter retail activity and dealers efforts to reduce their
inventory of model-year 2000 products. In response, the Company introduced
aggressive sales incentive programs, which combined with higher operating
costs, resulted in lower than expected earnings for the quarter. The
incentives have been successful in reducing levels of older inventory and we
are now seeing dealer inventories of our products more in line with prior
years' levels. While we are seeing some improvement in our backlog of orders
now that our 2001 models are in production, we are still selling into a weak
market in which there is considerable industry-wide discounting. We
anticipate that this environment will continue to put pressure on both
revenues and earnings for the foreseeable future."
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 Tradewinds, Dolphin, Islander,
Palisades, Sea Breeze, Sea View, Surf Side, Marlin, Splash, Tropi-Cal, and
Caribbean. 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.
NATIONAL R.V. HOLDINGS, INC.
CONSOLIDATED STATEMENT OF INCOME
(In thousands except per share data)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2000 1999 2000 1999
Net sales $74,524 $105,338 $179,779 $208,320
Cost of goods sold 67,071 87,959 156,249 174,187
Gross profit 7,453 17,379 23,530 34,133
Selling expenses 3,137 2,612 6,507 5,324
General and
administrative expenses 2,440 1,826 4,876 3,734
Amortization of
intangibles 104 104 207 207
Operating income 1,772 12,837 11,940 24,868
Other expense (income):
Interest expense 1 6 2 28
Interest income (227) (428) (481) (593)
Other 13 (380) 21 (384)
Income before
income taxes 1,985 13,639 12,398 25,817
Provision for income taxes 792 5,378 4,709 10,235
Net income $1,193 $8,261 $7,689 $ 15,582
Earnings per common share:
Basic $0.12 $0.80 $0.78 $1.50
Diluted $0.12 $0.74 $0.75 $1.38
Weighted average
number of shares:
Basic 9,657 10,378 9,845 10,364
Diluted 10,044 11,189 10,294 11,251
NATIONAL R.V. HOLDINGS, INC.
CONSOLIDATED BALANCE SHEET
(In thousands)
(Unaudited)
June 30, December 31,
2000 1999
(Unaudited)
Current Assets:
Cash and cash equivalents $6,556 $20,301
Trade receivables, less allowance for
doubtful accounts of $199 17,167 22,473
Inventories 75,149 68,187
Deferred income taxes 6,489 5,610
Prepaid expenses 1,745 1,439
Total current assets 107,106 118,010
Goodwill 6,746 6,952
Property, plant and equipment, net 39,042 33,167
Other 1,241 1,085
$154,135 $159,214
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt $20 $20
Accounts payable 10,342 11,167
Accrued expenses 18,092 14,908
Total current liabilities 28,454 26,095
Deferred income taxes 2,603 2,470
Long-term debt 74 84
Commitments and contingencies
Stockholders' equity:
Preferred stock - $.01 par value;
5,000 shares
Common stock - $.01 par value; 25,000,000
Shares authorized, 10,589,986 and
10,588,886 issued, respectively 106 106
Additional paid-in capital 47,779 47,768
Retained earnings 90,380 82,691
Less cost of treasury stock - 932,900 shares (15,261) --
Total stockholders' equity 123,004 130,565
$154,135 $159,214
Please direct questions to investors@nrvh.com.