Exhibit 99.1
Monaco Coach Corporation Letterhead
FOR MORE INFORMATION CONTACT:
Mike Duncan - Investor Relations
Monaco Coach Corporation
(541) 686-8011
http://www.monaco-online.com/
MONACO COACH CORPORATION REPORTS
FIRST QUARTER 2004 RESULTS
COBURG, Oregon, April 28, 2004 — Monaco Coach Corporation (NYSE: MNC) today reported revenue for its first quarter ended April 3, 2004. First quarter earnings per share were 40 cents, on record quarterly revenue of $355.0 million. Net income for the first quarter was $11.9 million. Operating income for the first quarter was $19.7 million. First quarter motorhome sales totaled 2,142 units and first quarter towable recreational vehicles totaled 994 units for a total of 3,136.
“We’re pleased to announce record quarterly revenue and unit sales,” stated Monaco Coach Corporation Chairman and Chief Executive Officer Kay Toolson. “Retail demand for recreational vehicles remains strong, and the debut of our first 2005 motor-home models was met with a very positive dealer and consumer response at recent retail shows. Also, our towable unit sales reached record quarterly levels, bolstered by demand for our new toy-haulers and lower-priced towable models. Furthermore, through the first three weeks of the second quarter, retail registrations have outpaced our production levels, which is reflected in our solid order backlog.”
Monaco Coach Corporation President John Nepute added, “We continue to monitor the commodity pricing environment, specifically materials such as steel, copper, aluminum and many petroleum-based products. Price increases in these areas are reflected in our raw materials costs, as well as in several component costs from our suppliers. Additionally, our freight expenses rose due to higher fuel prices. As a result, we implemented modest price increases to offset rising costs on all of our products to take effect in the second quarter.”
Monaco Coach Corporation Vice President and Chief Financial Officer Marty Daley stated, “Margins were impacted as a result of higher commodity prices and a production mix shift toward lower-margin products. However, we benefited from greater labor efficiencies, reduced warranty and legal settlement expenses, and lower indirect manufacturing costs.”
Daley continued, “We expect demand to drive second quarter revenues to approximately $360-$370 million. This sales level, combined with the shift in production mix, should allow for second quarter gross margins between 12.45% and 12.65%, with sales, general, and administrative expenses expected in the 7.2% to 7.4% 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 strong retail demand for recreational vehicles, positive dealer and consumer response to the Company’s 2005 model offerings, the Company’s ability to increase production rates, and the Company’s revenue, gross margin and sales, general, and administrative expenses guidance for the second quarter 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 annual report on Form 10-K for 2003, and the 2003 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, except share and per share data)
|
|
|
January
03, |
|
April 03, |
|
||
|
ASSETS |
|
|
|
|
|
||
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Current assets: |
|
|
|
|
|
||
|
Cash |
|
$ |
13,398 |
|
$ |
22,776 |
|
|
Trade receivables, net |
|
89,170 |
|
114,617 |
|
||
|
Inventories |
|
127,746 |
|
146,552 |
|
||
|
Resort lot inventory |
|
13,978 |
|
10,618 |
|
||
|
Prepaid expenses |
|
3,029 |
|
6,575 |
|
||
|
Deferred income taxes |
|
33,836 |
|
33,676 |
|
||
|
Total current assets |
|
281,157 |
|
334,814 |
|
||
|
|
|
|
|
|
|
||
|
Property, plant and equipment, net |
|
141,662 |
|
141,456 |
|
||
|
Debt issuance costs, net of accumulated amortization of $815, |
|
596 |
|
467 |
|
||
|
and $944, respectively |
|
|
|
|
|
||
|
Goodwill |
|
55,254 |
|
55,254 |
|
||
|
|
|
|
|
|
|
||
|
Total assets |
|
$ |
478,669 |
|
$ |
531,991 |
|
|
|
|
|
|
|
|
||
|
LIABILITIES |
|
|
|
|
|
||
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Current liabilities: |
|
|
|
|
|
||
|
Current portion of long-term note payable |
|
$ |
15,000 |
|
$ |
15,000 |
|
|
Accounts payable |
|
64,792 |
|
103,867 |
|
||
|
Product liability reserve |
|
20,723 |
|
19,602 |
|
||
|
Product warranty reserve |
|
29,643 |
|
30,712 |
|
||
|
Income taxes payable |
|
3,395 |
|
6,362 |
|
||
|
Accrued expenses and other liabilities |
|
26,373 |
|
29,930 |
|
||
|
Total current liabilities |
|
159,926 |
|
205,473 |
|
||
|
|
|
|
|
|
|
||
|
Long-term note payable |
|
15,000 |
|
11,250 |
|
||
|
Deferred income taxes |
|
17,495 |
|
17,794 |
|
||
|
Total liabilities |
|
192,421 |
|
234,517 |
|
||
|
|
|
|
|
|
|
||
|
STOCKHOLDERS' EQUITY |
|
|
|
|
|
||
|
Common stock,
$.01 par value; 50,000,000 shares |
|
292 |
|
293 |
|
||
|
Additional paid-in capital |
|
54,919 |
|
55,687 |
|
||
|
Retained earnings |
|
231,037 |
|
241,494 |
|
||
|
Total stockholders' equity |
|
286,248 |
|
297,474 |
|
||
|
Total liabilities and stockholders' equity |
|
$ |
478,669 |
|
$ |
531,991 |
|
|
|
|
|
|
|
|
||
MONACO COACH CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited: dollars in thousands, except share and per share data)
|
|
|
Quarter Ended |
|
||||
|
|
|
March 29, 2003 |
|
April 03, 2004 |
|
||
|
|
|
|
|
|
|
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Net sales |
|
$ |
273,574 |
|
$ |
354,976 |
|
|
Cost of sales |
|
239,968 |
|
310,493 |
|
||
|
Gross profit |
|
33,606 |
|
44,483 |
|
||
|
|
|
|
|
|
|
||
|
Selling, general and administrative expenses |
|
25,649 |
|
24,800 |
|
||
|
Amortization of goodwill |
|
0 |
|
0 |
|
||
|
Operating income |
|
7,957 |
|
19,683 |
|
||
|
|
|
|
|
|
|
||
|
Other income, net |
|
206 |
|
86 |
|
||
|
Interest expense |
|
(1,012 |
) |
(405 |
) |
||
|
Income before income taxes |
|
7,151 |
|
19,364 |
|
||
|
|
|
|
|
|
|
||
|
Provision for income taxes |
|
2,825 |
|
7,441 |
|
||
|
|
|
|
|
|
|
||
|
Net income |
|
$ |
4,326 |
|
$ |
11,923 |
|
|
|
|
|
|
|
|
||
|
Earnings per common share: |
|
|
|
|
|
||
|
Basic |
|
$ |
.15 |
|
$ |
.41 |
|
|
Diluted |
|
$ |
.15 |
|
$ |
.40 |
|
|
|
|
|
|
|
|
||
|
Weighted average common shares outstanding: |
|
|
|
|
|
||
|
Basic |
|
28,956,906 |
|
29,296,193 |
|
||
|
Diluted |
|
29,340,788 |
|
29,967,452 |
|
||
|
|
|
|
|
|
|
||
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Units Sold: |
|
2,367 |
|
3,136 |
|
||
|
|
|
|
|
|
|
||
MONACO COACH CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited: dollars in thousands)
|
|
|
Quarter Ended |
|
|||||
|
|
|
March 29, 2003 |
|
April 03, 2004 |
|
|||
|
|
|
|
|
|
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|||
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Increase (Decrease) in Cash: |
|
|
|
|
|
|||
|
|
|
|
|
|
|
|||
|
Cash flows from operating activities: |
|
|
|
|
|
|||
|
Net income |
|
$ |
4,326 |
|
$ |
11,923 |
|
|
|
Adjustments to reconcile net income to net cash |
|
|
|
|
|
|||
|
used (provided) by operating activities: |
|
|
|
|
|
|||
|
Loss on sale of assets |
|
16 |
|
78 |
|
|||
|
Depreciation and amortization |
|
2,262 |
|
2,536 |
|
|||
|
Deferred income taxes |
|
(1,009 |
) |
459 |
|
|||
|
Changes in working capital accounts: |
|
|
|
|
|
|||
|
Trade receivables, net |
|
17,821 |
|
(25,447 |
) |
|||
|
Inventories |
|
(24,292 |
) |
(18,805 |
) |
|||
|
Resort lot inventory |
|
2,606 |
|
3,360 |
|
|||
|
Prepaid expenses |
|
792 |
|
(3,547 |
) |
|||
|
Accounts payable |
|
9,861 |
|
39,075 |
|
|||
|
Product liability reserve |
|
1,091 |
|
(1,120 |
) |
|||
|
Product warranty reserve |
|
(1,071 |
) |
1,068 |
|
|||
|
Income taxes payable |
|
2,592 |
|
2,967 |
|
|||
|
Accrued expenses and other liabilities |
|
(2,664 |
) |
3,556 |
|
|||
|
Net cash provided by operating activities |
|
12,331 |
|
16,103 |
|
|||
|
Cash flows from investing activities: |
|
|
|
|
|
|||
|
Additions to property, plant and equipment |
|
(8,439 |
) |
(2,553 |
) |
|||
|
Proceeds from sale of assets |
|
687 |
|
145 |
|
|||
|
Net cash used in investing activities |
|
(7,752 |
) |
(2,408 |
) |
|||
|
Cash flows from financing activities: |
|
|
|
|
|
|||
|
Book overdraft |
|
14,698 |
|
0 |
|
|||
|
Payments on lines of credit, net |
|
(15,713 |
) |
0 |
|
|||
|
Payments on long-term note |
|
(4,333 |
) |
(3,750 |
) |
|||
|
Debt issuance costs |
|
(11 |
) |
129 |
|
|||
|
Dividends paid |
|
0 |
|
(1,465 |
) |
|||
|
Issuance of common stock |
|
780 |
|
769 |
|
|||
|
Net cash used by financing activities |
|
(4,579 |
) |
(4,317 |
) |
|||
|
Net change in cash |
|
0 |
|
9,378 |
|
|||
|
Cash at beginning of period |
|
0 |
|
13,398 |
|
|||
|
Cash at end of period |
|
$ |
0 |
|
$ |
22,776 |
|
|
|
|
|
|
|
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