Monaco Coach Corporation Reports First Quarter 2001 Results

Apr 24, 2001, 01:00 ET from Monaco Coach Corporation

    COBURG, Ore., April 24 /PRNewswire/ -- Monaco Coach Corporation
 (NYSE:   MNC) today reported revenue and earnings for its first quarter ended
 March 30, 2001.  First quarter earnings per share were 27 cents on revenue of
 $211.2 million.  Net income for the first quarter was $5.2 million.  First
 quarter operating income was $9.1 million.  First quarter unit sales of Monaco
 Coach Corporation products totaled 2,296 units.  First quarter motorhome sales
 totaled 1,432 units and first quarter towable recreational vehicles totaled
 864 units.
     "Many challenging economic factors continue to impact our industry,"
 stated Kay L. Toolson, Monaco Coach Corporation Chairman and Chief Executive
 Officer.  "However, we are encouraged by signs which may lead to a stronger
 second half of the year.  Recent interest rate declines provide inventory cost
 relief for our retail dealers and should also have a positive effect on
 consumer confidence and spending."
     Toolson added, "Our attention to product innovation continues to provide
 us with a tremendous advantage in the market.  We introduced the first four of
 our 2002 models with new triple slide-out floorplans at the recent Family
 Motor Coach Association Winter Convention.  Retail sales of these new coaches
 at the show reflect one of our most successful product introductions.  We've
 also recently introduced the second of two new Class C motorhomes.  The
 McKenzie Rogue joins the Holiday Rambler Atlantis as our entries into this
 market."
     Monaco Coach Corporation President John Nepute commented, "Our focus on
 product development and our commitment to maintaining our presence on retail
 dealers' lots have driven our retail market share growth over the past several
 months.  In fact, Monaco Coach Corporation is now the number two Class A
 motorhome manufacturer with 17.6% of the market through February.  Our
 strength remains in the diesel motorhomes, where we increased to 28.8% of the
 market through February, up from 25.3% through the same period last year.  We
 are also still seeing solid demand for our towable products."
     According to Monaco Coach Corporation Vice President and Chief Financial
 Officer Marty Daley, "As we enter the second quarter, we normally experience
 some margin pressure as a result of model change activities.  This anticipated
 seasonal pressure, combined with an ongoing climate of wholesale discounting
 and retail promotions, will contribute to earnings pressure in the second
 quarter similar to the first quarter.  We're managing our current
 circumstances, balancing promotional efforts and production levels with retail
 demand in order to continue our market share gains, maintain our strong
 presence on retail dealers' lots and realize efficiencies within our
 facilities."
     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, McKenzie and
 Royale Coach brand names.
 
     TABLES TO FOLLOW
 
     The statement in this press release regarding the impact of interest rate
 reductions on consumer spending is a forward-looking statement based on
 current information and expectations and involve 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: slower than anticipated sales of new and existing products, a general
 slowdown in the economy, higher than anticipated expenses associated with
 model change activities or new product introductions by competitors.  For more
 information concerning these and other possible risks, please refer to the
 Company's press releases and 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
                    CONDENSED CONSOLIDATED STATEMENTS OF INCOME
              (Unaudited: dollars in thousands, except per share data)
 
                                                         Quarter Ended
                                                     April 1,      March 31,
                                                       2000          2001
 
     Net sales                                       $237,983       $211,228
     Cost of sales                                    200,669        185,740
         Gross profit                                  37,314         25,488
 
     Selling, general and administrative expenses      15,778         16,239
     Amortization of goodwill                             161            161
         Operating income                              21,375          9,088
 
     Other income, net                                      1            116
     Interest expense                                    (112)          (684)
         Income before income taxes                    21,264          8,520
 
     Provision for income taxes                         8,346          3,323
 
         Net income                                   $12,918         $5,197
 
     Earnings per common share:
         Basic                                          $ .68          $ .27
         Diluted                                        $ .67          $ .27
 
     Weighted average common shares outstanding:
         Basic                                     18,886,646     18,976,877
         Diluted                                   19,368,145     19,421,519
 
     Units Sold:                                        2,809          2,296
 
 
                              MONACO COACH CORPORATION
                       CONDENSED CONSOLIDATED BALANCE SHEETS
                         (Unaudited: dollars in thousands)
 
                                                   December 30,     March 31,
                                                       2000           2001
     ASSETS
     Current assets:
       Trade receivables, net                         $67,998        $76,770
       Inventories                                    114,397        115,280
       Prepaid expenses                                 1,046          1,146
       Deferred income taxes                           13,197         13,535
         Total current assets                         196,638        206,731
 
     Notes receivable                                   2,800          7,010
     Property, plant and equipment, net               103,590        104,186
     Goodwill, net of accumulated amortization
      of $4,675 and $4,836, respectively               18,582         18,421
 
         Total assets                                $321,610       $336,348
 
     LIABILITIES
     Current liabilities:
       Book overdraft                                 $15,178        $21,189
       Line of credit                                  20,585         21,733
       Accounts payable                                53,098         53,635
       Income taxes payable                                 0          2,632
       Accrued expenses and other liabilities          38,478         36,936
         Total current liabilities                    127,339        136,125
 
     Deferred income taxes                              7,646          8,320
         Total liabilities                            134,985        144,445
 
 
     STOCKHOLDERS' EQUITY
     Common stock, $.01 par value; 50,000,000 shares
      authorized, 18,952,107 and 18,990,111 issued
      and outstanding respectively                        190            190
     Additional paid-in capital                        47,032         47,113
     Retained earnings                                139,403        144,600
         Total stockholders' equity                   186,625        191,903
         Total liabilities and stockholders' equity  $321,610       $336,348
 
 
                              MONACO COACH CORPORATION
                  CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                         (Unaudited: dollars in thousands)
 
 
                                                         Quarter Ended
                                                    April 1,       March 31,
                                                      2000           2001
 
     Increase (Decrease) in Cash:
 
     Cash flows from operating activities:
       Net income                                     $12,918         $5,197
       Adjustments to reconcile net income to
        net cash provided (used) by operating
        activities:
         Depreciation and amortization                  1,516          1,641
         Deferred income taxes                           (886)           336
         Changes in working capital accounts:
           Trade receivables, net                     (14,106)        (8,772)
           Inventories                                (13,205)          (883)
           Prepaid expenses                              (214)          (100)
           Accounts payable                            33,940            537
           Income taxes payable                         8,523          2,632
           Accrued expenses and other liabilities       1,548         (1,542)
            Net cash provided (used) by operating
             activities                                30,034           (954)
     Cash flows from investing activities:
       Additions to property, plant and equipment      (3,099)        (2,076)
       Issuance of notes receivable                                   (4,210)
            Net cash used in investing activities      (3,099)        (6,286)
     Cash flows from financing activities:
       Book overdraft                                 (12,478)         6,011
        (Payments) Borrowings on lines of credit,
         net                                           (7,853)         1,148
        Issuance of common stock                          273             81
            Net cash (used) provided by financing
             activities                               (20,058)         7,240
     Net change in cash                                 6,877              0
     Cash at beginning of period                            0              0
     Cash at end of period                             $6,877             $0
 
 

SOURCE Monaco Coach Corporation
    COBURG, Ore., April 24 /PRNewswire/ -- Monaco Coach Corporation
 (NYSE:   MNC) today reported revenue and earnings for its first quarter ended
 March 30, 2001.  First quarter earnings per share were 27 cents on revenue of
 $211.2 million.  Net income for the first quarter was $5.2 million.  First
 quarter operating income was $9.1 million.  First quarter unit sales of Monaco
 Coach Corporation products totaled 2,296 units.  First quarter motorhome sales
 totaled 1,432 units and first quarter towable recreational vehicles totaled
 864 units.
     "Many challenging economic factors continue to impact our industry,"
 stated Kay L. Toolson, Monaco Coach Corporation Chairman and Chief Executive
 Officer.  "However, we are encouraged by signs which may lead to a stronger
 second half of the year.  Recent interest rate declines provide inventory cost
 relief for our retail dealers and should also have a positive effect on
 consumer confidence and spending."
     Toolson added, "Our attention to product innovation continues to provide
 us with a tremendous advantage in the market.  We introduced the first four of
 our 2002 models with new triple slide-out floorplans at the recent Family
 Motor Coach Association Winter Convention.  Retail sales of these new coaches
 at the show reflect one of our most successful product introductions.  We've
 also recently introduced the second of two new Class C motorhomes.  The
 McKenzie Rogue joins the Holiday Rambler Atlantis as our entries into this
 market."
     Monaco Coach Corporation President John Nepute commented, "Our focus on
 product development and our commitment to maintaining our presence on retail
 dealers' lots have driven our retail market share growth over the past several
 months.  In fact, Monaco Coach Corporation is now the number two Class A
 motorhome manufacturer with 17.6% of the market through February.  Our
 strength remains in the diesel motorhomes, where we increased to 28.8% of the
 market through February, up from 25.3% through the same period last year.  We
 are also still seeing solid demand for our towable products."
     According to Monaco Coach Corporation Vice President and Chief Financial
 Officer Marty Daley, "As we enter the second quarter, we normally experience
 some margin pressure as a result of model change activities.  This anticipated
 seasonal pressure, combined with an ongoing climate of wholesale discounting
 and retail promotions, will contribute to earnings pressure in the second
 quarter similar to the first quarter.  We're managing our current
 circumstances, balancing promotional efforts and production levels with retail
 demand in order to continue our market share gains, maintain our strong
 presence on retail dealers' lots and realize efficiencies within our
 facilities."
     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, McKenzie and
 Royale Coach brand names.
 
     TABLES TO FOLLOW
 
     The statement in this press release regarding the impact of interest rate
 reductions on consumer spending is a forward-looking statement based on
 current information and expectations and involve 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: slower than anticipated sales of new and existing products, a general
 slowdown in the economy, higher than anticipated expenses associated with
 model change activities or new product introductions by competitors.  For more
 information concerning these and other possible risks, please refer to the
 Company's press releases and 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
                    CONDENSED CONSOLIDATED STATEMENTS OF INCOME
              (Unaudited: dollars in thousands, except per share data)
 
                                                         Quarter Ended
                                                     April 1,      March 31,
                                                       2000          2001
 
     Net sales                                       $237,983       $211,228
     Cost of sales                                    200,669        185,740
         Gross profit                                  37,314         25,488
 
     Selling, general and administrative expenses      15,778         16,239
     Amortization of goodwill                             161            161
         Operating income                              21,375          9,088
 
     Other income, net                                      1            116
     Interest expense                                    (112)          (684)
         Income before income taxes                    21,264          8,520
 
     Provision for income taxes                         8,346          3,323
 
         Net income                                   $12,918         $5,197
 
     Earnings per common share:
         Basic                                          $ .68          $ .27
         Diluted                                        $ .67          $ .27
 
     Weighted average common shares outstanding:
         Basic                                     18,886,646     18,976,877
         Diluted                                   19,368,145     19,421,519
 
     Units Sold:                                        2,809          2,296
 
 
                              MONACO COACH CORPORATION
                       CONDENSED CONSOLIDATED BALANCE SHEETS
                         (Unaudited: dollars in thousands)
 
                                                   December 30,     March 31,
                                                       2000           2001
     ASSETS
     Current assets:
       Trade receivables, net                         $67,998        $76,770
       Inventories                                    114,397        115,280
       Prepaid expenses                                 1,046          1,146
       Deferred income taxes                           13,197         13,535
         Total current assets                         196,638        206,731
 
     Notes receivable                                   2,800          7,010
     Property, plant and equipment, net               103,590        104,186
     Goodwill, net of accumulated amortization
      of $4,675 and $4,836, respectively               18,582         18,421
 
         Total assets                                $321,610       $336,348
 
     LIABILITIES
     Current liabilities:
       Book overdraft                                 $15,178        $21,189
       Line of credit                                  20,585         21,733
       Accounts payable                                53,098         53,635
       Income taxes payable                                 0          2,632
       Accrued expenses and other liabilities          38,478         36,936
         Total current liabilities                    127,339        136,125
 
     Deferred income taxes                              7,646          8,320
         Total liabilities                            134,985        144,445
 
 
     STOCKHOLDERS' EQUITY
     Common stock, $.01 par value; 50,000,000 shares
      authorized, 18,952,107 and 18,990,111 issued
      and outstanding respectively                        190            190
     Additional paid-in capital                        47,032         47,113
     Retained earnings                                139,403        144,600
         Total stockholders' equity                   186,625        191,903
         Total liabilities and stockholders' equity  $321,610       $336,348
 
 
                              MONACO COACH CORPORATION
                  CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                         (Unaudited: dollars in thousands)
 
 
                                                         Quarter Ended
                                                    April 1,       March 31,
                                                      2000           2001
 
     Increase (Decrease) in Cash:
 
     Cash flows from operating activities:
       Net income                                     $12,918         $5,197
       Adjustments to reconcile net income to
        net cash provided (used) by operating
        activities:
         Depreciation and amortization                  1,516          1,641
         Deferred income taxes                           (886)           336
         Changes in working capital accounts:
           Trade receivables, net                     (14,106)        (8,772)
           Inventories                                (13,205)          (883)
           Prepaid expenses                              (214)          (100)
           Accounts payable                            33,940            537
           Income taxes payable                         8,523          2,632
           Accrued expenses and other liabilities       1,548         (1,542)
            Net cash provided (used) by operating
             activities                                30,034           (954)
     Cash flows from investing activities:
       Additions to property, plant and equipment      (3,099)        (2,076)
       Issuance of notes receivable                                   (4,210)
            Net cash used in investing activities      (3,099)        (6,286)
     Cash flows from financing activities:
       Book overdraft                                 (12,478)         6,011
        (Payments) Borrowings on lines of credit,
         net                                           (7,853)         1,148
        Issuance of common stock                          273             81
            Net cash (used) provided by financing
             activities                               (20,058)         7,240
     Net change in cash                                 6,877              0
     Cash at beginning of period                            0              0
     Cash at end of period                             $6,877             $0
 
 SOURCE  Monaco Coach Corporation