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Reports Second Quarter 2003 Results
COBURG, Ore., July 24, 2003 -- Monaco Coach Corporation
(NYSE:MNC) today reported revenue and earnings for its second quarter ended
June 28, 2003. Second quarter earnings per share were 2 cents, on second
quarter revenue of $268.4 million. Net income for the second quarter was
$582 thousand. Operating income for the second quarter was $1.5 million.
Second quarter unit sales of Monaco Coach Corporation products were 2,260
units. Second quarter motorhome sales totaled 1,708 units and second quarter
towable recreational vehicles totaled 552 units.
For the six months ended June 28, 2003, earnings per share were 17 cents
on revenue of $541.9 million. Net income for the six months ended June 28,
2003 was $4.9 million. Operating income for the six months ended June 28,
2003 was $9.5 million. Unit sales of Monaco Coach Corporation products for
the six months ended June 28, 2003 totaled 4,566 units. Six-month motorhome
sales totaled 3,345 units and six-month towable recreational vehicles totaled
1,221 units.
According to Monaco Coach Corporation Chairman and Chief Executive Officer
Kay Toolson, "We met several key goals for the second quarter. Foremost was
the approximate $20 million reduction in our finished goods inventory.
However, in order to realize this inventory reduction, we offered wholesale
and retail sales incentives that pressured our margins and earnings. Weighed
against the business considerations and financial cost associated with
carrying a high finished goods inventory, second quarter earnings pressure was
expected as we focus on improving our balance sheet."
Monaco Coach Corporation President John Nepute added, "Our 2004 models
have been very well accepted by dealers and consumers. It has not been
necessary to offer sales promotions on 2004 models. However, we are
continuing to offer some retail sales incentives on 2003 models that remain on
dealers' lots. The successful introduction of our 2004 models, along with
gradually strengthening retail sales, have contributed to steady improvement
to our order backlog."
Monaco Coach Corporation Vice President and Chief Financial Officer Marty
Daley stated, "We continue to balance demand with production rates and
finished goods inventory, and we expect third quarter revenue to be similar to
the second quarter. Based on our current production rates, we should be able
to further reduce finished goods inventory in the third quarter. As a result
of lower run rates and continuing retail promotions, we expect third quarter
gross margins in the 10.5% to 11% range, and third quarter sales, general, and
administrative expenses in the 8.75% to 9.25% range."
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, Safari, Beaver,
McKenzie and Royale Coach brand names.
The statements above regarding the Company's 2004 model introductions, its
ability to make further inventory reductions, and its third quarter 2003
expectations for sales revenue, gross margin, and sales, general, and
administrative expenses are forward-looking statements based on current
information and expectations and involve a number of risks and uncertainties.
A number of factors could cause actual results to differ materially from these
statements, including slower than anticipated sales of new and existing
products, a general slowdown in the economy, new product introductions by
competitors, or the loss of dealers or a deterioration in the relationships
with dealers. Please refer to the Company's SEC reports, including but not
limited to the most recent Form 10-Q, the annual report on Form 10-K for 2002,
and the 2002 Annual Report to Shareholders for additional factors. These
filings can be accessed over the Internet at http://www.sec.gov
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Invites You to Join Its Second Quarter Conference Call on the Web
COBURG, Ore.,
July 16, 2003 -- In conjunction with its earnings release, Monaco
Coach Corporation (MNC) invites you to listen to its conference call
broadcast live over the Internet at 11:00 a.m. Eastern Time on Thursday,
July 24, 2003.
What: Monaco Coach Corporation Second Quarter Conference Call
When: Thursday, July 24, 2003 at 11:00 a.m. Eastern Time
Where:
How: Live over the Internet -- Simply log on to the Web at the
address above
Contact: Mike Duncan, Investor Relations, 541-686-8011, or email
mduncan@monacohr.com
If you are unable to participate during the live webcast, the call will be
archived on the web site.
Minimum Requirements to listen to broadcast: The Windows Media Player software downloadable free from: , and at least a 28.8 Kbps connection to the Internet, or The RealPlayer software, downloadable free from www.real.com/products/player/index.html , and at least a 14.4Kbps connection to the Internet. If you experience problems listening to the broadcast, send an email to isproducers@prnewswire.com.
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, Safari, Beaver, McKenzie and Royale Coach brand names.
For further information, please contact Mike Duncan, Investor Relations of Monaco Coach Corporation, +1-541-686-8011; or Bevo Beaven, Vice President, or Shirley Thompson, President, both of CTA Public Relations, +1-303-665-4200, for Monaco Coach Corporation.
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Reports Preliminary Second Quarter 2003 Results
COBURG, Ore., July 11, 2003 -- Monaco Coach Corporation
(NYSE:MNC) today announced preliminary results for the second quarter ended
June 28, 2003. The company estimates earnings per share slightly above break
even on second quarter revenue in the $266 million - $268 million range.
Additionally, the company announced that it has reduced its finished goods
inventory from approximately $66 million at the end of the first quarter 2003
to approximately $46 million at the end of the second quarter 2003.
"We took necessary steps to considerably reduce finished goods inventory
during the second quarter," stated Monaco Coach Corporation Chairman and Chief
Executive Officer Kay Toolson. "Our finished goods inventory reduction,
combined with a similar dollar reduction in raw material inventory, allowed us
to reduce accounts payable while holding our overall debt to similar levels as
the first quarter. Despite our success in improving our balance sheet, our
efforts impacted second quarter margins and earnings."
Toolson continued, "Retail activity is showing modest improvement, and
industry class A motorhome sales year-to-date through May are up 4% over the
same period a year ago. Unlike last year and the first quarter of this year,
our retail sales outperformed wholesale shipments in the second quarter. Our
class A retail sales through June 2003 outpaced the same period a year ago by
over 10%. If the improving retail climate holds, it should begin to drive
wholesale orders, reducing some of the market pressure we have experienced."
According to Monaco Coach Corporation Chief Financial Officer Marty Daley,
"Although retail sales showed reasonable improvement, the wholesale
environment remained challenging in the second quarter. As a result, we
continued an aggressive campaign of wholesale and retail promotions,
pressuring our gross margins and raising our sales expenses. Additionally,
lower production rates within our facilities further reduced gross margins.
These pressures added to the challenge of reducing inventory while remaining
profitable. We expect second quarter gross margins to be in the 10% range."
Daley continued, "Our retail promotions had their intended effect, helping
our dealers reduce their inventory by over 5 % year-to-date through May.
However, as a result of this higher-than-normal retail promotional activity,
we expect second quarter sales, general and administrative expenses to be in
the 9.5% range."
Monaco Coach Corporation President John Nepute stated, "We took over 1,800
orders at our annual dealer meeting held the last week of June, the vast
majority of which were 2004 models. This show contributed to a significant
strengthening of our current order backlog. In fact, we're effectively sold
out of 2003 model year product, which should improve our ability to capitalize
on opportunities going forward. The dealer response to our 2004 models was
exceptionally positive, and the overall tone of the meeting was optimistic."
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, Safari, Beaver,
McKenzie and Royale Coach brand names.
The statements above regarding the Company's expectations for revenue and
earnings per share for the second quarter of 2003, anticipated inventory
reductions, anticipated second quarter 2003 gross margin, expense and earnings
levels, the ability to realize its current order backlog, and acceptance of
the company's 2004 model introductions are forward-looking statements based on
current information and expectations and involve a number of risks and
uncertainties. A number of factors could cause actual results to differ
materially from these statements, including slower than anticipated sales of
new and existing products, a general or war-related slowdown in the economy,
new product introductions by competitors, an inability to realize additional
production facility efficiencies, or the loss of dealers or a deterioration in
the relationships with dealers. Please refer to the Company's SEC reports,
including but not limited to the most recent Form 10-Q, the annual report on
Form 10-K for 2002, and the 2002 Annual Report to Shareholders for additional
factors. These filings can be accessed over the Internet at http://www.sec.gov.
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Reports First Quarter 2003 Profits
COBURG, Ore., April 23, 2003 -- Monaco Coach Corporation
(NYSE: MNC) today reported revenue and earnings for its first quarter ended
March 29, 2003. First quarter earnings per share were 15 cents on revenue of
$273.6 million. Gross profit for the first quarter was $33.6 million.
Operating income for the first quarter was $8.0 million, and net income for
the first quarter was $4.3 million. First quarter unit sales of Monaco Coach
Corporation products totaled 2,367 units. First quarter motorhome sales
totaled 1,698 units, and first quarter towable recreational vehicles totaled
669 units.
"Our market is starting to show signs of improvement," stated Kay L.
Toolson, Monaco Coach Corporation Chairman and Chief Executive Officer. "As
of today, our internal tracking indicates that our motorized retail sales are
up more than 10% year-to-date over the same period last year. Our retail
dealer partners are beginning to experience heavier lot traffic, strengthening
their outlook and optimism. We remain excited about our company's long-term
future, as exceptional demographic trends and changing attitudes toward
leisure travel should continue to fuel our industry."
Monaco Coach Corporation President John Nepute commented, "We continue to
focus on reducing our finished goods inventory between now and the end of the
second quarter -- an important part of our overall debt reduction strategy.
The improvement in retail demand should help us reach this goal as retail
dealers replenish units sold from their inventory. Although we're encouraged
by the strengthening retail market, we expect second quarter sales similar to
the first quarter."
According to Monaco Coach Corporation Vice President and Chief Financial
Officer Marty Daley, "Reduced production rates, combined with effective retail
and wholesale incentive programs, are also helping us work down inventory
levels. However, these activities pressured our gross margins and increased
our sales expenses. First quarter gross margins were 12.3% and selling,
general and administrative expenses were 9.4% of sales. We expect similar
gross margin and sales expense levels in the second quarter."
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, Safari, Beaver,
McKenzie and Royale Coach brand names.
The statements above regarding expected improvement in the retail market
for the Company's products, the Company's second quarter revenue expectations,
the Company's ability to reduce finished goods inventory and debt levels, and
the Company's expectations for second quarter gross margins and sales, general
and administrative expenses are forward-looking statements. A number of
factors could cause actual results to differ materially from these statements,
including slower than anticipated sales of new and existing products, a
general slowdown in the economy, new product introductions by competitors or
other factors. Please refer to the Company's SEC reports, including but not
limited to the annual report on Form 10-K for 2002, and the 2002 Annual Report
to Shareholders for additional factors.
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Invites You to Join Its First Quarter Conference Call on the Web
COBURG, Ore., April 16, 2003 -- In conjunction with its
pre-earnings release, Monaco Coach Corporation (NYSE: MNC) invites you to
listen to its conference call broadcast live over the Internet at 2:00 p.m.
Eastern Time on Wednesday, April 23, 2003.
What: Monaco Coach Corporation First Quarter Conference Call
When: Wednesday, April 23, 2003 at 2:00 p.m. Eastern Time
Where: http://www.monaco-online.com
How: Live over the Internet -- Simply log on to the Web at the
address above
If you are unable to participate during the live webcast, the call will be
archived on the web site. To access the replay, click on
http://www.monaco-online.com .
Minimum Requirements to listen to broadcast: The Windows Media Player
software downloadable free from: http://www.microsoft.com/windows/windowsmedia/EN/default.asp, and at least a
28.8 Kbps connection to the Internet or: The RealPlayer software, downloadable free from www.real.com/products/player/index.html, and at least
a 14.4Kbps connection to the Internet. If you experience problems listening to the broadcast, send an email to isproducers@prnewswire.com.)
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, Safari, Beaver,
McKenzie and Royale Coach brand names.
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to headlines
Reports Preliminary First Quarter 2003 Results
COBURG, Ore., April 3, 2003 -- Monaco Coach Corporation (NYSE: MNC) today announced preliminary results for the quarter ended March 29, 2003. The company estimates that first quarter earnings per share will range from 15 to 20 cents per share and first quarter revenue will be in the $271-$273 million range.
Additionally, the company announced that it will shut down production operations for the week of April 7, 2003. Corporate-wide production levels will be reduced by approximately 20% when manufacturing operations resume on April 14, 2003.
"The challenges in our market increased throughout the first quarter," stated Monaco Coach Corporation Chairman and Chief Executive Officer Kay Toolson. "Difficult economic conditions and military conflict have pressured consumer confidence, and our retail dealer partners have become very cautious. These circumstances have created an unexpectedly tough sales environment, and their duration is hard to predict."
Toolson added, "The first of our 2004 models made their debut at the recent Family Motor Coach Association Winter Convention in Pomona, California. Public response to these redesigned coaches was encouraging, and retail sales at the show were brisk despite understandable concerns regarding world events. However, retail dealers are carefully controlling their inventories, and we need to adjust our production levels to more closely reflect demand. Unfortunately, this adjustment will result in corresponding changes to our workforce, affecting approximately 850 of our 5,900 employees between our Oregon and Indiana operations. These decisions are difficult, but necessary given current market conditions."
Monaco Coach Corporation President John Nepute stated, "Lower overall production levels should help us reduce our finished goods inventory and working capital needs. We will continue to offer retail promotions designed to assist our dealer partners. These promotions are tied to wholesale incentives in order to encourage dealers to replace the products they sell to retail customers. Promotional activities pressure gross margins and increase sales expenses, but they are instrumental in working down finished goods and driving inventory turns at the dealer level."
According to Monaco Coach Corporation Chief Financial Officer Marty Daley, "Although our production rates will be lower in the second quarter, reducing finished goods inventory should allow us to generate revenue similar to our first quarter. Our goal is to substantially reduce finished goods inventory and maintain gross margins in the 11.5-12.5% range, while effectively controlling our sales and administrative expenses. If we are successful, we should be able to report second quarter earnings per share comparable to the first quarter."
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, Safari, Beaver, McKenzie and Royale Coach brand names.
The statements above regarding the Company's expectations for revenue and earnings per share for the first quarter of 2003, anticipated inventory reductions, anticipated second quarter 2003 gross margin, expense and earnings levels, and acceptance of the company's 2004 model introductions are forward- looking statements based on current information and expectations and involve a number of risks and uncertainties. A number of factors could cause actual results to differ materially from these statements, including slower than anticipated sales of new and existing products, a general or war-related slowdown in the economy, new product introductions by competitors, an inability to realize additional production facility efficiencies, or the loss of dealers or a deterioration in the relationships with dealers. Please refer to the Company's SEC reports, including but not limited to the most recent Form 10-Q, the annual report on Form 10-K for 2002, and the 2002 Annual Report to Shareholders for additional factors.
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Announces 2003 Annual Meeting Of Shareholders
COBURG, Ore., February 26, 2003 --
Monaco Coach Corporation (NYSE:MNC) today announced that it will hold its
2003 Annual Meeting of Stockholders at 1:00 p.m., local time, on May 13, 2003
at Monaco Coach Corporation's executive offices located at 606 Nelson's
Parkway, Wakarusa, Indiana. The record date for common stockholders entitled
to notice of and to vote at the annual meeting has been set for
March 14, 2003. Proxy materials that set forth the matters to be considered
at the annual meeting will be distributed to Monaco Coach Corporation's
stockholders.
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, Safari, Beaver,
McKenzie and Royale Coach brand names.
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Reports Fourth Quarter and Fiscal Year 2002 Results
COBURG, Ore., January 28, 2003 -- Monaco Coach Corporation
(NYSE:MNC) today reported revenue and earnings for its fourth quarter and
fiscal year ended December 28, 2002. Fourth quarter revenue increased
approximately 15% to $300.7 million, versus $261.6 million for the same period
a year ago. Operating income for the fourth quarter increased approximately
58% to $20.6 million, versus $13.0 million for the same period a year ago. Net
income for the fourth quarter increased approximately 59% to $12.1 million,
versus $7.6 million for the same period a year ago. Fourth quarter earnings
per share increased approximately 58% to 41 cents, versus 26 cents for the
same period a year ago.
For the fiscal year ended December 28, 2002, earnings per share were
$1.51 on revenue of $1.22 billion, versus 85 cents on revenue of
$937.1 million for the same period a year ago. Operating income for the fiscal
year ended December 28, 2002 was $75.9 million, versus $42.7 million for the
same period a year ago. Net income for the fiscal year ended December 28, 2002
was $44.5 million, versus $24.9 million for the same period a year ago.
"We remain bullish on our industry outlook, despite persistent economic
challenges," stated Monaco Coach Corporation Chairman and Chief Executive
Officer Kay Toolson. "While many market segments remain very competitive,
we're focused intently on product development and market share in the gasoline
and diesel-powered motorhome and towable market segments. Our towable
production expansion project remains on track, and we should have additional
towable production capacity available by mid-year."
Fourth quarter 2002 unit sales of Monaco Coach Corporation products
increased by 10% to 2,677 units, up from 2,429 for the same period a year ago.
Fourth quarter motorhome sales totaled 1,946 units and fourth quarter towable
recreational vehicles totaled 731 units. Unit sales of Monaco Coach
Corporation products for the fiscal year ended December 28, 2002 totaled
11,211 units, up from 9,491 for the same period a year ago. Fiscal-year
motorhome sales totaled 8,005 units and fiscal-year towable recreational
vehicles totaled 3,206 units. Year-end order backlog was approximately
$230 million, compared to approximately $270 million at the close of the third
quarter of 2002 and up from approximately $208 million a year ago.
According to Monaco Coach Corporation President John Nepute, "The retail
market rebounded nicely in 2002. Barring prolonged military action or
significant economic event, we anticipate similar industry growth in 2003. We
worked diligently in 2002 to add distribution, particularly for our Safari and
Beaver brands. We also introduced several new motorhomes in 2002, allowing us
to grow shelf space on dealer lots."
Nepute continued, "Given the competitive conditions that exist, we are
going to be more aggressive with retail sales promotions designed to increase
market share and ensure that our models are turning on dealer lots. By
carefully balancing production levels with demand, we believe we can grow our
2003 revenue by 8%-12%. Presently, we believe our first quarter 2003 revenue
will increase at a more modest rate than our expectations for the full year."
Monaco Coach Corporation Vice President and Chief Financial Officer Marty
Daley added, "We're pleased that our gross margin rose consistent with our
expectations to 13.74% in the fourth quarter and that our sales, general and
administrative expenses fell to 6.9% of sales during the fourth quarter. We
presently anticipate gross margin and sales, general and administrative
expenses in 2003 to average 13.75% and 7.4% respectively, reflecting our
efforts to provide valuable retail promotions to our dealers and regain market
share."
Daley added, "We're in line with our expectations regarding our investment
with Outdoor Resorts of America (ORA) to develop two luxury recreational
vehicle resorts. We expect to close the sale of undeveloped property in
Naples, Florida, in the second quarter of this year. The net proceeds from the
sale of the Florida property will reduce our debt associated with the ORA
project by approximately $6.5 million. In Las Vegas, Nevada, we have sold 33
of 202 phase one developed lots, with 12 additional lots in escrow. At the
Indio, California, location, we've received approval to begin closing on 21 of
136 phase one developed lots in escrow. Management at both locations report
excellent interest from prospective lot buyers."
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, Safari, Beaver,
McKenzie and Royale Coach brand names.
The statements above regarding the Company's expectations for additional
towable production capacity, revenue growth for the first quarter and fiscal
year 2003, anticipated 2003 gross margin and expense levels, performance of
the Company's investment in luxury recreational vehicle resorts, and the
anticipated sale of the Florida resort property are forward-looking statements
based on current information and expectations and involve a number of risks
and uncertainties. A number of factors could cause actual results to differ
materially from these statements, including unforeseen delays in expanding
towable production capacity, a decline in interest from prospective buyers of
RV resort lots, failure to complete the sale of the Florida resort property
due to unforeseen circumstances, slower than anticipated sales of new and
existing products, a general or war-related slowdown in the economy, new
product introductions by competitors, an inability to realize additional
production facility efficiencies, or the loss of dealers or a deterioration in
the relationships with dealers. Please refer to the Company's SEC reports,
including but not limited to the most recent Form 10-Q, the annual report on
Form 10-K for 2002, and the 2002 Annual Report to Shareholders for additional
factors. These filings can be accessed over the Internet at http:www.sec.gov
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Invites You to Join Its Fourth Quarter Conference Call on the Web
COBURG, Ore., January 21, 2003 -- In conjunction with its
fourth quarter and year-end earnings release, Monaco Coach Corporation
(NYSE:MNC) invites you to listen to its conference call broadcast live over
the Internet at 2:00 p.m. Eastern Time on Tuesday, January 28, 2003.
What: Monaco Coach Corporation Fourth Quarter and Year-End Conference
Call
When: Tuesday, January 28, 2003 at 2:00 p.m. Eastern Time
Where: http://www.monaco-online.com
How: Live over the Internet -- Simply log on to the Web at the
address above
Contact: Mike Duncan, Investor Relations, 541-686-8011, or email
mduncan@monacohr.com
If you are unable to participate during the live webcast, the call will be
archived on the web site. To access the replay, click on
http://www.monaco-online.com .
Minimum Requirements to listen to broadcast: The Windows Media Player
software downloadable free from:
http://www.microsoft.com/windows/windowsmedia/EN/default.asp, and at least a
28.8 Kbps connection to the Internet. or: The RealPlayer software,
downloadable free from www.real.com/products/player/index.html , and at least
a 14.4Kbps connection to the Internet. If you experience problems listening
to the broadcast, send an email to isproducers@prnewswire.com .)
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, Safari, Beaver,
McKenzie and Royale Coach brand names.
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Announces Agreement With Outdoor Resorts of America
COBURG, Ore., November 27, 2002 -- Monaco Coach Corporation
(NYSE:MNC) announced that it has purchased from Outdoor Resorts of America
(ORA) three luxury motorcoach resort properties being developed by ORA in Las
Vegas, Nevada, Indio, California, and Naples, Florida. Monaco previously had
loaned $8.0 million on the three projects and co-guaranteed $10 million in
bank debt on the Las Vegas project.
According to Monaco Coach Corporation Vice President and Chief Financial
Officer Marty Daley. "Since the assets of these projects are held in three
distinct, wholly-owned subsidiary corporations of ORA, we completed the
transaction as a stock purchase for each of the three subsidiaries."
Daley added, "We will add $31.6 million to our balance sheet as total
property held for sale from these entities. The existing liabilities of these
entities include approximately $3 million of accounts payable and accrued
liabilities along with debt of $8.0 million owed to Monaco and $20.6 million
owed to financial institutions. The $8.0 million note payable to Monaco will
be eliminated against Monaco's corresponding $8.0 million note receivable as
part of consolidating these new subsidiaries. We have financed the payoff of
the $20.6 million notes payable by obtaining a $22 million three-year term
loan as an amendment to our current credit agreement."
Monaco has reached a tentative agreement to sell the property in Naples,
Florida (currently undeveloped) for net proceeds of approximately $7.0
million. If the sale is completed, $3.0 million of the net proceeds will pay
down Monaco's new $22 million term loan and the remaining $4 million will
reduce Monaco's borrowings on its revolving line of credit.
"Phase one lot development is complete in Las Vegas and Indio," stated
Monaco Coach Corporation President John Nepute. "Our initial loan provided ORA
with the resources to expand into these attractive locations, and we firmly
believe in the need for these upscale resorts. Under a new management
agreement, ORA will focus on lot sales at each location."
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, Safari, Beaver,
McKenzie and Royale Coach brand names.
Return
to headlines
Invites You to Join Its
Third Quarter Conference Call on the Web
COBURG, Ore., October 21, 2002 -- In conjunction with its third quarter
earnings release, Monaco Coach Corporation (NYSE:MNC) invites you
to listen to its conference call broadcast live over the Internet
at 1:00 p.m. Eastern Time on Monday, October 21, 2002.
What: Monaco Coach Corporation Conference Call
When: Monday, October 21, 2002 at 1:00 p.m. Eastern Time
Where: http://www.monaco-online.com
How: Live over the Internet -- Simply log on to the web at the
address above
Contact: Mike Duncan, Investor Relations, 541-686-8011, or email
mduncan@monacohr.com
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, Safari, Beaver, McKenzie and Royale Coach brand names.
If you are unable to participate during the live webcast, the
call will be archived on the web site. To access the replay, click
on http://www.monaco-online.com .
Minimum Requirements to listen to broadcast: The Windows Media
Player software downloadable free from: http://www.microsoft.com/windows/windowsmedia/EN/default.asp
, and at least a 28.8 Kbps connection to the Internet. Or: The RealPlayer
software, downloadable free from: www.real.com/products/player/index.html
, and at least a 14.4Kbps connection to the Internet. If you experience
problems listening to the broadcast, send an email to Webcastsupport@tfprn.com
.)
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Reports Third Quarter
Results
COBURG, Ore., October 21, 2002 -- Monaco Coach Corporation
(NYSE:MNC) today reported revenue and earnings for its third quarter
ended September 28, 2002. Third quarter earnings per share increased
approximately 74% to 40 cents, versus 23 cents for the same period
a year ago. Third quarter revenue increased over 30% to $314.7 million,
versus $240.8 million for the same period a year ago. Net income
for the third quarter increased approximately 78% to $11.8 million,
versus $6.6 million for the same period a year ago. Operating income
for the third quarter increased approximately 75% to $20.0 million,
versus $11.4 million for the same period a year ago.
For the nine months ended September 28, 2002, earnings per share
were $1.10 on revenue of $922 million, versus 59 cents on revenue
of $675 million for the same period a year ago. Net income for the
nine months ended September 28, 2002 was $32.4 million, versus $17.3
million for the same period a year ago. Operating income for the
nine months ended September 28, 2002 was $55.3 million, versus $29.7
million for the same period a year ago.
According to Monaco Coach Corporation Chairman and Chief Executive
Officer Kay Toolson, "We're pleased with our third quarter manufacturing,
sales and financial performance, especially given the nation's challenging
economic climate. Our 2003 models have been well received by our
dealers and retail customers. The strength of our products, combined
with excellent industry fundamentals and outstanding demographic
trends, should allow us to further increase production levels as
the economy gains momentum. For now, we are continuing to realize
efficiencies and margin improvement as a result of increased production
rates and the further integration of our new product lines and models."
Third quarter 2002 unit sales of Monaco Coach Corporation products
increased by 20% to 2,846 units, up from 2,371 for the same period
a year ago. Third quarter motorhome sales totaled 2,041 units and
third quarter towable recreational vehicles totaled 805 units. Unit
sales of Monaco Coach Corporation products for the nine months ended
September 28, 2002 totaled 8,534 units, up from 7,062 for the same
period a year ago. Nine-month motorhome sales totaled 6,059 units
and nine-month towable recreational vehicles totaled 2,475 units.
"We're happy with our sales activity at the recent retail shows,
and overall industry demand remains solid," stated Monaco Coach
Corporation President John Nepute. "Industry-wide, the gasoline-powered
and low-end diesel-powered motorhome market segments remain very
competitive in terms of products and pricing, although our brands
continue to perform well in these segments. Additionally, we are
initiating plans to expand our towable production facility due to
healthy demand for our towable offerings."
Monaco Coach Corporation Vice President and Chief Financial Officer
Marty Daley added, "Our gross margin improved to 13.6% in the third
quarter. Regarding our expectations for the full year, we had previously
indicated that our year-end gross margin could approach 13.75%,
and we remain confident in that guidance. We expect sales, general
and administrative expenses in the fourth quarter to hold steady
at approximately 7.2% of sales."
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, Safari, Beaver, McKenzie and Royale Coach brand names.
The statements above regarding the Company's ability increase
production levels, the Company's ability to realize additional production
efficiencies, the Company's intent to expand their towable production
facility, and the Company's expectations regarding gross margins
and sales, general and administrative expenses are forward-looking
statements based on current information and expectations and involve
a number of risks and uncertainties. A number of factors could cause
actual results to differ materially from these statements, including
slower than anticipated sales of new and existing products, a general
slowdown in the economy, new product introductions by competitors,
an inability to realize additional production facility efficiencies,
an inability to increase production to meet demand due to a tight
labor market, the loss of dealers or a deterioration in the relationships
with dealers. Please refer to the Company's SEC reports, including
but not limited to the most recent Form 10-Q, the annual report
on Form 10-K for 2001, and the 2001 Annual Report to Shareholders
for additional factors.
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