Exhibit 99.1
FOR IMMEDIATE RELEASE
FOR MORE INFORMATION CONTACT:
Mike Duncan - Investor Relations
Monaco Coach Corporation
(541) 686-8011
http://www.monaco-online.com/
MONACO COACH CORPORATION REPORTS
FOURTH QUARTER AND FISCAL YEAR 2003 RESULTS
COBURG, Oregon, February 3, 2004 — Monaco Coach Corporation (NYSE: MNC) today reported revenue for its fourth quarter and fiscal year ended January 3, 2004. Fourth quarter earnings per share were 37 cents, on record quarterly revenue of $322.9 million. Net income for the fourth quarter was $11.0 million. Operating income for the fourth quarter was $17.4 million. Fourth quarter motorhome sales totaled 1,894 units and fourth quarter towable recreational vehicles totaled 687 units for a total of 2,581.
For the fiscal year ended January 3, 2004, earnings per share were 75 cents on revenue of $1.17 billion. Net income for the fiscal year ended January 3, 2004 was $22.2 million. Operating income for the fiscal year ended January 3, 2004 was $38.2 million. Unit sales of Monaco Coach Corporation products for the fiscal year ended January 3, 2004 totaled 9,644 units. Fiscal year motorhome sales totaled 7,051 units and towable recreational vehicles totaled 2,593 units.
According to Monaco Coach Corporation Chairman and Chief Executive Officer Kay Toolson, “While 2003 was not without its challenges, we’re encouraged by the recovery that our industry and company achieved in the second half of the year. We expect this positive momentum to fuel further growth in 2004.”
Toolson continued, “We experienced record wholesale orders at our industry association’s annual trade show in Louisville, Kentucky, held in early December. Dealers responded favorably to many new innovative floorplan designs offered in our core diesel products. Additionally, our efforts to improve the value of our gasoline-powered motorhomes and towable products were rewarded by tremendous dealer response.”
Monaco Coach Corporation President John Nepute added, “Reasonable dealer inventory levels and continued retail sales strength have allowed for further reduction in our finished goods inventory and also contributed to record order backlogs. In the fourth quarter, we increased production as forecasted to meet this growing demand. These positive wholesale and retail indicators have given us confidence to continue increasing production rates into the first quarter of 2004.”
Monaco Coach Corporation Vice President and Chief Financial Officer Marty Daley stated, “Current demand validates our increased production rates, which we expect to result in first quarter revenues of approximately $340-$350 million. This sales level should allow for first quarter gross margins between 13.25% and 13.4%, with sales, general, and administrative expenses expected in the 7.5% range.”
Daley continued, “For 2004 fiscal year, we believe sales could reach $1.35 billion to $1.4 billion. We expect our fiscal-year gross margins to average 13.3% to 13.5%. Fiscal-year sales, general, and administrative expenses are expected to average between 7.5% and 7.3%, resulting in 2004 earnings per share in the $1.55 to $1.70 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 positive sales momentum for the Company and the recreational vehicle industry, retail dealer response to the Company’s model offerings and improved value of its products, the Company’s ability to increase production rates, and the Company’s revenue, gross margin and sales, general, and administrative expenses guidance for the first quarter and full year of 2004 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
MONACO COACH CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited: dollars in thousands)
|
|
|
December
28, |
|
January 3, |
|
||
|
ASSETS |
|
|
|
|
|
||
|
Current assets: |
|
|
|
|
|
||
|
Cash |
|
$ |
|
|
$ |
13,398 |
|
|
Trade receivables, net |
|
116,647 |
|
89,170 |
|
||
|
Inventories |
|
175,609 |
|
127,746 |
|
||
|
Resort lot inventory |
|
26,883 |
|
13,978 |
|
||
|
Prepaid expenses |
|
3,612 |
|
3,029 |
|
||
|
Deferred income taxes |
|
33,379 |
|
33,836 |
|
||
|
Total current assets |
|
356,130 |
|
281,157 |
|
||
|
|
|
|
|
|
|
||
|
Property, plant and equipment, net |
|
135,350 |
|
141,662 |
|
||
|
Debt issuance costs, net |
|
683 |
|
596 |
|
||
|
Goodwill, net of accumulated amortization of $5,320 and $5,320, respectively |
|
55,254 |
|
55,254 |
|
||
|
|
|
|
|
|
|
||
|
Total assets |
|
$ |
547,417 |
|
$ |
478,669 |
|
|
|
|
|
|
|
|
||
|
LIABILITIES |
|
|
|
|
|
||
|
Current liabilities: |
|
|
|
|
|
||
|
Book overdraft |
|
$ |
3,518 |
|
$ |
|
|
|
Line of credit |
|
51,413 |
|
|
|
||
|
Current portion of long-term note payable |
|
21,667 |
|
15,000 |
|
||
|
Accounts payable |
|
78,055 |
|
64,792 |
|
||
|
Product liability reserve |
|
21,322 |
|
20,723 |
|
||
|
Product warranty reserve |
|
31,745 |
|
29,643 |
|
||
|
Income taxes payable |
|
4,536 |
|
3,395 |
|
||
|
Accrued expenses and other liabilities |
|
29,633 |
|
26,373 |
|
||
|
Total current liabilities |
|
241,889 |
|
159,926 |
|
||
|
|
|
|
|
|
|
||
|
Long-term note payable |
|
30,333 |
|
15,000 |
|
||
|
Deferred income taxes |
|
14,568 |
|
17,495 |
|
||
|
|
|
286,790 |
|
192,421 |
|
||
|
|
|
|
|
|
|
||
|
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
||
|
Common stock, $.01 par value; 50,000,000 shares authorized, 28,632,774 and 28,871,144 issued and outstanding respectively |
|
289 |
|
292 |
|
||
|
Additional paid-in capital |
|
51,501 |
|
54,919 |
|
||
|
Retained earnings |
|
208,837 |
|
231,037 |
|
||
|
Total stockholders’ equity |
|
260,627 |
|
286,248 |
|
||
|
Total liabilities and stockholders’ equity |
|
$ |
547,417 |
|
$ |
478,669 |
|
MONACO COACH CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited: dollars in thousands, except share and per share data)
|
|
|
Quarter Ended |
|
Year Ended |
|
||||||||
|
|
|
December
28, |
|
January 3, |
|
December
28, |
|
January 3, |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Net sales |
|
$ |
300,667 |
|
$ |
322,863 |
|
$ |
1,222,689 |
|
$ |
1,168,311 |
|
|
Cost of sales |
|
259,329 |
|
280,843 |
|
1,059,560 |
|
1,028,377 |
|
||||
|
Gross profit |
|
41,338 |
|
42,020 |
|
163,129 |
|
139,934 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Selling, general and administrative expenses |
|
20,748 |
|
24,640 |
|
87,202 |
|
101,700 |
|
||||
|
Amortization of goodwill |
|
|
|
|
|
|
|
|
|
||||
|
Operating income |
|
20,590 |
|
17,380 |
|
75,927 |
|
38,234 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Other income, net |
|
58 |
|
93 |
|
105 |
|
260 |
|
||||
|
Interest expense |
|
(752 |
) |
(410 |
) |
(2,752 |
) |
(2,968 |
) |
||||
|
Income before income taxes |
|
19,896 |
|
17,063 |
|
73,280 |
|
35,526 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Provision for income taxes |
|
7,812 |
|
6,033 |
|
28,765 |
|
13,326 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Net income |
|
$ |
12,084 |
|
$ |
11,030 |
|
$ |
44,515 |
|
$ |
22,200 |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Earnings per common share: |
|
|
|
|
|
|
|
|
|
||||
|
Basic |
|
$ |
.42 |
|
$ |
.38 |
|
$ |
1.55 |
|
$ |
.76 |
|
|
Diluted |
|
$ |
.41 |
|
$ |
.37 |
|
$ |
1.51 |
|
$ |
.75 |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
|
||||
|
Basic |
|
28,869,584 |
|
29,185,368 |
|
28,812,473 |
|
29,062,649 |
|
||||
|
Diluted |
|
29,480,563 |
|
29,831,507 |
|
29,573,420 |
|
29,567,012 |
|
||||
MONACO COACH CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited: dollars in thousands)
|
|
|
Year Ended |
|
||||
|
|
|
December
28, |
|
January 3, |
|
||
|
|
|
|
|
|
|
||
|
Increase (Decrease) in Cash: |
|
|
|
|
|
||
|
|
|
|
|
|
|
||
|
Cash flows from operating activities: |
|
|
|
|
|
||
|
Net income |
|
$ |
44,515 |
|
$ |
22,200 |
|
|
Adjustments to reconcile net income to net cash provided (used) by operating activities: |
|
|
|
|
|
||
|
Gain on sale of assets |
|
178 |
|
43 |
|
||
|
Depreciation and amortization |
|
8,585 |
|
9,768 |
|
||
|
Deferred income taxes |
|
(1,574 |
) |
3,852 |
|
||
|
Changes in working capital accounts: |
|
|
|
|
|
||
|
Trade receivables, net |
|
(33,932 |
) |
27,854 |
|
||
|
Inventories |
|
(48,534 |
) |
47,863 |
|
||
|
Resort lot inventory |
|
(98 |
) |
5,869 |
|
||
|
Prepaid expenses |
|
(1,650 |
) |
573 |
|
||
|
Accounts payable |
|
10,301 |
|
(13,263 |
) |
||
|
Product liability reserve |
|
1,237 |
|
(599 |
) |
||
|
Product warranty reserve |
|
3,835 |
|
(2,102 |
) |
||
|
Income taxes payable |
|
9,597 |
|
(1,141 |
) |
||
|
Accrued expenses and other liabilities |
|
8,888 |
|
(3,007 |
) |
||
|
Net cash provided by operating activities |
|
1,348 |
|
97,910 |
|
||
|
Cash flows from investing activities: |
|
|
|
|
|
||
|
Additions to property, plant and equipment |
|
(18,735 |
) |
(19,510 |
) |
||
|
Proceeds from sale of assets |
|
387 |
|
2,197 |
|
||
|
Proceeds from the sale of Naples property |
|
|
|
6,650 |
|
||
|
Payment for business acquisition |
|
(21,085 |
) |
|
|
||
|
Issuance of notes receivable |
|
(385 |
) |
|
|
||
|
Collections from notes receivable |
|
500 |
|
|
|
||
|
Net cash used in investing activities |
|
(39,318 |
) |
(10,663 |
) |
||
|
Cash flows from financing activities: |
|
|
|
|
|
||
|
Book overdraft |
|
(2,371 |
) |
(3,518 |
) |
||
|
(Payments) borrowings on lines of credit, net |
|
25,414 |
|
(51,413 |
) |
||
|
Borrowings on long-term note payable |
|
22,000 |
|
|
|
||
|
Payment on long-term note payable |
|
(10,000 |
) |
(22,000 |
) |
||
|
Debt issuance costs |
|
(55 |
) |
(339 |
) |
||
|
Issuance of common stock |
|
2,982 |
|
3,421 |
|
||
|
Net cash provided by (used in) financing activities |
|
37,970 |
|
(73,849 |
) |
||
|
Net change in cash |
|
0 |
|
13,398 |
|
||
|
Cash at beginning of period |
|
0 |
|
0 |
|
||
|
Cash at end of period |
|
$ |
0 |
|
$ |
13,398 |
|