Exhibit 99.1
FOR IMMEDIATE RELEASE: October 31, 2007 |
|
CONTACT: | | Craig Wanichek |
| | Director of Investor Relations |
| | Monaco Coach Corporation |
| | (541) 681-8029 |
| | craig.wanichek@monacocoach.com |
Monaco Coach Corporation Reports Third Quarter Results
COBURG, OREGON — October 31, 2007 — Monaco Coach Corporation (NYSE: MNC), one of the nation’s leading manufacturers of recreational vehicles, today reported revenues and earnings for the third quarter ended September 29, 2007.
Third quarter 2007 revenues were $322.4 million, up 10.2% compared to $292.5 million in revenues for the third quarter of 2006. The Company reported a 95.7% increase in gross profit to $36.2 million for the third quarter of 2007, compared to $18.5 million a year ago. Net income for the third quarter of 2007 was $3.7 million, compared to a $7.1 million loss a year ago. For the third quarter of 2007, diluted earnings per share were $0.12 versus a loss of $0.24 for the same period last year.
For the nine months ended September 29, 2007, revenues were $980.0 million, compared to $998.8 million for the nine months ended September 30, 2006. The Company reported net income of $9.6 million for the recent nine-month period, compared to $1.6 million for the same period in 2006. Earnings per share on a diluted basis for the first nine months of 2007 were $0.32, compared to $0.05 for the same period last year.
“We have made good progress on several initiatives so far in 2007,” said Kay Toolson, Chairman and Chief Executive Officer of Monaco Coach Corporation. “Most noticeably, our extensive realignment of production and consolidation of sub-assembly plants have improved our operations and margins. We expect to continue to improve our plant efficiencies during the fourth quarter and into next year with the consolidation of the Elkhart towable operations into our existing facilities in Wakarusa and Warsaw, Indiana.”
“We are pleased to report a rise in our motorhome market share, and 17% growth for the third quarter in our core motorized segment. Our Company has remained aggressive in 2007 with new product developments, introducing new floor plans and features that meet consumers’ changing desires,” noted Toolson.
“The recreational vehicle industry faces challenges such as declining consumer confidence, higher fuel prices and volatile equity markets. Nevertheless, we are convinced that the long-term positive prospects for our Company and the RV industry are compelling, as millions of baby boomers retire and are drawn to the appeal of the RV lifestyle.”
Gross profit margin for the Company increased in the third quarter of 2007 to 11.2%, compared to 6.3% in the third quarter of 2006. The Company’s gross profit margin improved because of better plant efficiencies, including improved material usage, higher absorption of indirect costs and direct labor savings. The Company also experienced favorable workers’ compensation claim experience. A shift in mix to higher margin motorized sales and reductions in the reliance on discounts used to market products further increased gross profit margins during the period.
“Our low finished goods inventory level at the beginning of the quarter and sales visibility throughout the quarter resulted in a balance between production and demand,” stated John Nepute, President of Monaco Coach Corporation.
“Internally, the Company and employees benefited from better control of rising health care costs. This success was due to a variety of initiatives, including our on-site health care clinic, which has provided better access to health care for many of our employees.”
For the third quarter of 2007, reductions in selling and marketing costs led to selling, general and administrative expenses of 9.2% of sales, down from 10.1% a year ago.
“Our Custom Chassis Products joint venture is making progress and we expect to generate a profit from that investment in the fourth quarter,” Nepute added.
The Company reported cash balances at the end of the quarter of $35.2 million compared to $5.0 million at the end of the 2006 fiscal year. Inventories at the end of the third quarter 2007 were $148.1 million, down from $155.9 million at year-end. The Company reported a zero balance on its line of credit and had $30.5 million of long-term debt. Accounts payable at the end of the third quarter was $95.4 million, up from $72.6 million at the end of the 2006 fiscal year.
Motorized Recreational Vehicle Segment
Motorized sales of $258.0 million in the third quarter of 2007 increased 17.2% compared to $220.2 million in the third quarter of 2006. Total Class A wholesale shipments for the first three quarters were 3,955, compared to 3,981 for the same period in 2006. As reported by Statistical Surveys, Inc., Monaco Coach Corporation had a 0.4% decrease in domestic motorhome retail registrations sold year-to-date through August 2007, while industry-wide there was a decline of 4.9%, resulting in a 4.8% rise in the Company’s market share for the same period.
Segment gross profit for the third quarter of 2007 was $29.4 million, or 11.4% of sales, compared to $12.2 million, or 5.5% of sales, for the third quarter of 2006. Operating income for the recent quarter was $6.8 million, or 2.6% of sales, compared to an operating loss of $7.7 million in the third quarter of 2006.
Unit sales of the Motorized RV Segment for the quarter ended September 29, 2007 totaled 1,470, up 9.6% from 1,341 units for the prior year period. Diesel Class A units shipped were 1,080 versus 1,088, gas Class A units shipped were 230 versus 85, and Class C units shipped were 160 versus 168.
Towable Recreational Vehicle Segment
The Company reported towable sales of $64.2 million for the third quarter of 2007, compared to sales of $70.5 million for the third quarter of 2006. Total towable shipments for the first three quarters were 13,439, compared to 16,811 for the same period last year, which included 2,019 FEMA units. Travel trailer and fifth-wheel retail registrations for the overall domestic market, according to Statistical Surveys, reported a year-to-date increase of 2.8% through August 2007, and for the Company they reported a 1.9% decline in retail sales for the same period.
Gross profit for the third quarter of 2007 for the towable segment was $6.7 million, or 10.4% of sales, compared to $5.1 million, or 7.2% of sales for the third quarter of 2006. Operating income was $871,000, compared to a loss of $2.3 million for the third quarter of 2006.
For the third quarter of 2007, towable unit sales, including specialty trailers, were 3,940 units, down slightly from 3,977 units for the same period a year ago.
Motorhome Resorts Segment
Resort sales for the third quarter of 2007 were $219,000, compared to $1.9 million in the third quarter of 2006. Lot sales in the third quarter are typically slow as fewer prospective owners visit the southwest desert region during the summer months. Reductions in sales were also a function of declining consumer confidence, shrinking inventories of available lots, competition from lot resale activity at the resort itself and to a lesser extent, softness in the national real estate markets. However, the availability of credit has not surfaced as an issue facing this segment.
Currently 35 lots are available in Indio and 33 lots are available in Las Vegas, leaving approximately 8% of the original 807 developed lots. The operating loss for the segment was $1.2 million for the third quarter 2007, compared to an operating loss of $904,000 for the same period last year.
The Company’s new resort locations in the Palm Springs, Calif. area and Naples, Fla. are currently under development, with lots expected to be available for sale in the second quarter of 2008 and fourth quarter 2008 at the Naples and Palm Springs locations, respectively.
Business Outlook
“Based upon our current backlog, rates of production and production days available in the fourth quarter, our revenue will be between $290 million and $300 million,” said Marty Daley, Chief Financial Officer of Monaco Coach Corporation. “This level of revenue along with our consolidation of towable operations will lead to lower margins and earnings per share for the fourth quarter of $0.02 to $0.04.”
“Based on the Recreational Vehicle Industry Association’s flat 2008 class A shipment forecast, our fiscal 2008 sales are expected to be approximately even with 2007, or $1.27 billion to $1.28 billion,” continued Daley. “Gross profit will benefit from a full-year of the towable consolidation, continued plant efficiency gains, including better material usage and should fall between 11.4% and 11.5%. Selling, general and administrative expenses are expected to be in the range of 9.37% to 9.47%.”
Conference Call to be Held
Monaco Coach Corporation will conduct a conference call in conjunction with this news release at 2:00 p.m. Eastern Time, Wednesday, October 31, 2007. Members of the news media, investors, and the general public are invited to access a live broadcast of the conference call via the Investor Relations page of the Company’s website at www.monaco-online.com. The event will be archived and available for replay for the next 90 days.
About Monaco Coach Corporation
Dedicated to quality and service, Monaco Coach Corporation is one of the nation’s leading manufacturers of motorized and towable recreational vehicles. Headquartered in Coburg, Oregon, with substantial manufacturing facilities in Indiana, Monaco Coach employs approximately 5,200 people. The Company offers a variety of RVs, from entry-level priced towables to custom-made luxury models under the Monaco, Holiday Rambler, Safari, Beaver, McKenzie, R-Vision and Dodge brand names. Monaco Coach maintains RV service centers in Harrisburg, Ore., Elkhart, Ind., and Wildwood, Fla. The Company operates motorhome only resorts in California, Florida and Nevada.
Ranked as the number one manufacturer of diesel-powered motorhomes, Monaco Coach is a leader in innovative RVs designed to meet the needs of a broad range of customers with varied interests and offers products that appeal to RVers across generations. Monaco Coach Corporation trades on the New York Stock Exchange under the symbol “MNC,” and the Company is included in the S&P Small-Cap 600 stock index. For additional information about Monaco Coach Corporation, please visit www.monaco-online.com or www.trail-lite.com.
The statements above regarding the Company’s expectations for further plant efficiencies due to manufacturing consolidation, the long-term prospects for the Company as baby boomers retire, the expected profitability of the Custom Chassis Products joint venture in the fourth quarter, the timing of the availability of lots for sale in our Palm Springs and Naples projects, as well as the guidance on our fourth quarter and 2008 results of operations under “Business Outlook,” are forward-looking statements subject to various risks and uncertainties that could cause actual results to differ materially from these statements, including failure to realize further efficiencies from the consolidation of our manufacturing operations, unforeseen declines in the wholesale and retail markets for recreational vehicles, changing consumers’ preference for certain models, a general decline in consumer confidence, inability to achieve projected economies of scale and resulting profitability from our Custom Chassis Products joint venture, inability to complete the work necessary to offer lots for sale in our new resort properties within the expected time frames, and an increase in interest rates or change in terms affecting retail and wholesale financing or an increase in the price or availability of fuel. Please refer to the Company’s SEC reports for additional risks and uncertainties, including but not limited to the most recent Form 10-Q, the annual report on Form 10-K for 2006, and the 2006 Annual Report to Shareholders for additional factors. These filings can be accessed over the Internet at http://www.sec.gov or http://www.monaco-online.com.
(Tables to follow)
MONACO COACH CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands of dollars, except share and per share data)
| | December 30, | | September 29, | |
| | 2006 | | 2007 | |
| | | | (unaudited) | |
ASSETS | | | | | |
Current assets: | | | | | |
Cash | | $ | 4,984 | | $ | 35,231 | |
Trade receivables, net | | 81,588 | | 79,606 | |
Inventories, net | | 155,871 | | 148,093 | |
Resort lot inventory | | 7,997 | | 8,397 | |
Prepaid expenses | | 5,624 | | 5,118 | |
Income taxes receivable | | 6,901 | | 0 | |
Deferred income taxes | | 38,038 | | 38,179 | |
Total current assets | | 301,003 | | 314,624 | |
Property, plant, and equipment, net | | 153,895 | | 147,005 | |
Land held for development | | 16,300 | | 24,321 | |
Investment in joint venture | | 0 | | 3,406 | |
Debt issuance costs net of accumulated amortization of $912 and $1,152, respectively | | 540 | | 557 | |
Goodwill | | 86,412 | | 86,412 | |
Total assets | | $ | 558,150 | | $ | 576,325 | |
| | | | | |
LIABILITIES | | | | | |
Current liabilities: | | | | | |
Book overdraft | | $ | 16,626 | | $ | 0 | |
Current portion of long-term debt | | 5,714 | | 5,714 | |
Line of credit | | 2,036 | | 0 | |
Income taxes payable | | 0 | | 2,219 | |
Accounts payable | | 72,591 | | 95,428 | |
Product liability reserve | | 15,764 | | 15,626 | |
Product warranty reserve | | 33,804 | | 36,945 | |
Accrued expenses and other liabilities | | 44,364 | | 48,890 | |
Discontinued operations | | 298 | | 0 | |
Total current liabilities | | 191,197 | | 204,822 | |
| | | | | |
Long-term debt, less current portion | | 29,071 | | 24,786 | |
Deferred income taxes | | 21,678 | | 21,534 | |
Deferred revenue | | 883 | | 733 | |
Total liabilities | | 242,829 | | 251,875 | |
| | | | | |
STOCKHOLDERS’ EQUITY | | | | | |
Preferred stock, $.01 par value; 1,934,783 shares authorized, no shares outstanding | | | | | |
Common stock, $.01 par value; 50,000,000 shares authorized, 29,769,356 and 29,981,477 issued and outstanding, respectively | | 298 | | 300 | |
Additional paid-in capital | | 63,722 | | 68,591 | |
Retained earnings | | 251,301 | | 255,559 | |
Total stockholders’ equity | | 315,321 | | 324,450 | |
Total liabilities and stockholders’ equity | | $ | 558,150 | | $ | 576,325 | |
MONACO COACH CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited: in thousands of dollars, except share and per share data)
| | Quarter Ended | | Nine Months Ended | |
| | September 30, | | September 29, | | September 30, | | September 29, | |
| | 2006 | | 2007 | | 2006 | | 2007 | |
| | | | | | | | | |
Net sales | | $ | 292,473 | | $ | 322,422 | | $ | 998,823 | | $ | 979,985 | |
Cost of sales | | 273,940 | | 286,243 | | 901,351 | | 871,212 | |
Gross profit | | 18,533 | | 36,179 | | 97,472 | | 108,773 | |
| | | | | | | | | |
Selling, general, and administrative expenses | | 29,474 | | 29,661 | | 92,882 | | 89,885 | |
Plant relocation costs | | 0 | | 0 | | 269 | | 0 | |
Operating income (loss) | | (10,941 | ) | 6,518 | | 4,321 | | 18,888 | |
| | | | | | | | | |
Other income, net | | 119 | | 290 | | 507 | | 783 | |
Interest expense | | (1,306 | ) | (829 | ) | (3,498 | ) | (2,743 | ) |
Loss from investment in joint venture | | 0 | | (290 | ) | 0 | | (1,267 | ) |
Income (loss) before income taxes, continuing operations | | (12,128 | ) | 5,689 | | 1,330 | | 15,661 | |
Provision for (benefit from) income taxes, continuing operations | | (5,030 | ) | 2,008 | | (343 | ) | 6,017 | |
| | | | | | | | | |
Income (loss) from continuing operations | | (7,098 | ) | 3,681 | | 1,673 | | 9,644 | |
| | | | | | | | | |
Loss from discontinued operations, net of tax benefit | | 0 | | 0 | | (107 | ) | 0 | |
| | | | | | | | | |
Net income (loss) | | $ | (7,098 | ) | $ | 3,681 | | $ | 1,566 | | $ | 9,644 | |
| | | | | | | | | |
Earnings (loss) per common share: | | | | | | | | | |
Basic from continuing operations | | $ | (0.24 | ) | $ | 0.12 | | $ | 0.05 | | $ | 0.32 | |
Basic from discontinued operations | | 0.00 | | 0.00 | | 0.00 | | 0.00 | |
Basic | | $ | (0.24 | ) | $ | 0.12 | | $ | 0.05 | | $ | 0.32 | |
| | | | | | | | | |
Diluted from continuing operations | | $ | (0.24 | ) | $ | 0.12 | | $ | 0.05 | | $ | 0.32 | |
Diluted from discontinued operations | | 0.00 | | 0.00 | | 0.00 | | 0.00 | |
Diluted | | $ | (0.24 | ) | $ | 0.12 | | $ | 0.05 | | $ | 0.32 | |
| | | | | | | | | |
Weighted-average common shares outstanding: | | | | | | | | | |
Basic | | 29,745,738 | | 29,963,223 | | 29,696,951 | | 29,913,118 | |
Diluted | | 29,865,199 | | 30,363,621 | | 29,859,461 | | 30,380,470 | |
MONACO COACH CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited: in thousands of dollars)
| | Nine Months Ended | |
| | September 30, | | September 29, | |
| | 2006 | | 2007 | |
| | | | | |
Increase (Decrease) in Cash: | | | | | |
| | | | | |
Cash flows from operating activities: | | | | | |
Net income | | $ | 1,566 | | $ | 9,644 | |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | | | | | |
Loss (gain) on sale of assets | | (12 | ) | 289 | |
Depreciation and amortization | | 10,581 | | 10,613 | |
Deferred income taxes | | (5,834 | ) | (285 | ) |
Stock-based compensation expense | | 2,538 | | 3,247 | |
Net losses in equity investment | | 0 | | 1,267 | |
Changes in working capital accounts: | | | | | |
Trade receivables, net | | 15,131 | | 1,982 | |
Inventories | | 9,310 | | 3,718 | |
Resort lot inventory | | 79 | | (400 | ) |
Prepaid expenses | | (331 | ) | 504 | |
Land held for development | | (16,300 | ) | (8,022 | ) |
Accounts payable | | 11,524 | | 22,837 | |
Product liability reserve | | (1,723 | ) | (138 | ) |
Product warranty reserve | | 551 | | 2,868 | |
Income taxes payable | | (2,277 | ) | 9,120 | |
Accrued expenses and other liabilities | | 8,688 | | 4,643 | |
Deferred revenue | | 933 | | (150 | ) |
Discontinued operations | | 3,723 | | (18 | ) |
Net cash provided by operating activities | | 38,147 | | 61,719 | |
| | | | | |
Cash flows from investing activities: | | | | | |
Additions to property, plant, and equipment | | (7,459 | ) | (4,194 | ) |
Investment in joint venture | | 0 | | (366 | ) |
Proceeds from sale of assets | | 127 | | 64 | |
Net cash used in investing activities | | (7,332 | ) | (4,496 | ) |
| | | | | |
Cash flows from financing activities: | | | | | |
Book overdraft | | (8,537 | ) | (16,626 | ) |
Borrowings (payments) on lines of credit, net | | (15,561 | ) | (2,036 | ) |
Payments on long-term notes payable | | (2,857 | ) | (4,285 | ) |
Debt issuance costs | | (36 | ) | (257 | ) |
Dividends paid | | (5,377 | ) | (5,395 | ) |
Issuance of common stock | | 1,646 | | 1,429 | |
Tax benefit of stock-based awards exercised or vested | | 149 | | 194 | |
Discontinued operations | | 92 | | 0 | |
Net cash used in financing activities | | (30,481 | ) | (26,976 | ) |
| | | | | |
Net change in cash | | 334 | | 30,247 | |
Cash at beginning of period | | 586 | | 4,984 | |
| | | | | |
Cash at end of period | | $ | 920 | | $ | 35,231 | |
MONACO COACH CORPORATION
SEGMENT REPORTING
(Unaudited: in thousands of dollars)
Results of Consolidated Operations
| | Quarter | | | | Quarter | | | | Nine Months | | | | Nine Months | | | |
| | Ended | | | | Ended | | | | Ended | | | | Ended | | | |
| | September 30, | | % of | | September 29, | | % of | | September 30, | | % of | | September 29, | | % of | |
| | 2006 | | Sales | | 2007 | | Sales | | 2006 | | Sales | | 2007 | | Sales | |
Net sales | | $ | 292,473 | | 100.00 | % | $ | 322,422 | | 100.00 | % | $ | 998,823 | | 100.00 | % | $ | 979,985 | | 100.00 | % |
Cost of sales | | 273,940 | | 93.66 | % | 286,243 | | 88.78 | % | 901,351 | | 90.24 | % | 871,212 | | 88.90 | % |
Gross profit | | 18,533 | | 6.34 | % | 36,179 | | 11.22 | % | 97,472 | | 9.76 | % | 108,773 | | 11.10 | % |
Selling, general and administrative expenses | | 29,474 | | 10.08 | % | 29,661 | | 9.20 | % | 92,882 | | 9.30 | % | 89,885 | | 9.17 | % |
Plant relocation costs | | — | | 0.00 | % | — | | 0.00 | % | 269 | | 0.03 | % | — | | 0.00 | % |
Operating income (loss) | | (10,941 | ) | -3.74 | % | 6,518 | | 2.02 | % | 4,321 | | 0.43 | % | 18,888 | | 1.93 | % |
Other income and interest expense | | 1,187 | | 0.41 | % | 829 | | 0.26 | % | 2,991 | | 0.30 | % | 3,227 | | 0.33 | % |
Income (loss) before income taxes | | (12,128 | ) | -4.15 | % | 5,689 | | 1.76 | % | 1,330 | | 0.13 | % | 15,661 | | 1.60 | % |
Income taxes | | (5,030 | ) | -1.72 | % | 2,008 | | 0.62 | % | (343 | ) | -0.03 | % | 6,017 | | 0.61 | % |
Net income (loss) from continuing operations | | (7,098 | ) | -2.43 | % | 3,681 | | 1.14 | % | 1,673 | | 0.17 | % | 9,644 | | 0.98 | % |
Loss from discontinued operations, net of tax benefit | | — | | 0.00 | % | — | | 0.00 | % | (107 | ) | -0.01 | % | — | | 0.00 | % |
Net income (loss) | | $ | (7,098 | ) | -2.43 | % | $ | 3,681 | | 1.14 | % | $ | 1,566 | | 0.16 | % | $ | 9,644 | | 0.98 | % |
| | | | | | | | | | | | | | | | | |
Depreciation & amortization | | $ | 3,608 | | | | $ | 3,545 | | | | $ | 10,581 | | | | $ | 10,613 | | | |
Capital expenditures | | 1,688 | | | | 1,525 | | | | 7,459 | | | | 4,194 | | | |
Raw materials inventory | | | | | | | | | | 71,866 | | | | 64,167 | | | |
WIP inventory | | | | | | | | | | 52,724 | | | | 57,876 | | | |
Finished goods inventory | | | | | | | | | | 50,174 | | | | 26,050 | | | |
Total capital expenditures for 2007 are expected to be $6 - $8 million
Expected tax rate for all of 2007 is approximately 38.5%
Motorized Recreational Vehicle Segment
| | Quarter | | | | Quarter | | | | Nine Months | | | | Nine Months | | | |
| | Ended | | | | Ended | | | | Ended | | | | Ended | | | |
| | September 30, | | % of | | September 29, | | % of | | September 30, | | % of | | September 29, | | % of | |
| | 2006 | | Sales | | 2007 | | Sales | | 2006 | | Sales | | 2007 | | Sales | |
Net sales | | $ | 220,159 | | 100.00 | % | $ | 257,982 | | 100.00 | % | $ | 700,728 | | 100.00 | % | $ | 754,192 | | 100.00 | % |
Cost of sales | | 207,960 | | 94.46 | % | 228,565 | | 88.60 | % | 647,910 | | 92.46 | % | 672,029 | | 89.11 | % |
Gross profit | | 12,199 | | 5.54 | % | 29,417 | | 11.40 | % | 52,818 | | 7.54 | % | 82,163 | | 10.89 | % |
| | | | | | | | | | | | | | | | | |
Selling, general and administrative expenses & corporate overhead | | 19,931 | | 9.05 | % | 22,570 | | 8.75 | % | 58,718 | | 8.38 | % | 65,760 | | 8.72 | % |
Plant relocation costs | | - | | 0.00 | % | - | | 0.00 | % | 269 | | 0.04 | % | - | | 0.00 | % |
Operating income (loss) | | $ | (7,732 | ) | -3.51 | % | $ | 6,847 | | 2.65 | % | $ | (6,169 | ) | -0.88 | % | $ | 16,403 | | 2.17 | % |
| | | | | | | | | | | | | | | | | |
Units Sold | | | | | | | | | | | | | | | | | |
Class A Diesel | | 1,088 | | | | 1,080 | | | | 3,211 | | | | 3,288 | | | |
Class A Gas | | 85 | | | | 230 | | | | 770 | | | | 667 | | | |
Class C | | 168 | | | | 160 | | | | 383 | | | | 493 | | | |
Total | | 1,341 | | | | 1,470 | | | | 4,364 | | | | 4,448 | | | |
| | | | | | | | | | | | | | | | | |
Average Gross Wholesale Price | | | | | | | | | | | | | | | | | |
Class A Diesel | | $ | 189 | | | | $ | 209 | | | | $ | 194 | | | | $ | 203 | | | |
Class A Gas | | 77 | | | | 82 | | | | 84 | | | | 79 | | | |
Class C | | 52 | | | | 55 | | | | 52 | | | | 54 | | | |
| | | | | | | | | | | | | | | | | |
Internal retail registrations | | | | | | | | | | | | | | | | | |
Class A Diesel | | 972 | | | | 1,087 | | | | 3,126 | | | | 3,500 | | | |
Class A Gas | | 278 | | | | 238 | | | | 911 | | | | 767 | | | |
Class C | | 155 | | | | 157 | | | | 254 | | | | 352 | | | |
Total | | 1,405 | | | | 1,482 | | | | 4,291 | | | | 4,619 | | | |
| | | | | | | | | | | | | | | | | |
Additional Information* | | | | | | | | | | | | | | | | | |
Backlog units | | | | | | | | | | | | | | 668 | | | |
Backlog value | | | | | | | | | | | | | | 114,379 | | | |
Dealer Inventory (units) | | | | | | | | | | | | | | 3,139 | | | |
Number of production lines | | | | | | | | | | | | | | 5 | | | |
Capacity utilization | | | | | | | | | | | | | | 66 | % | | |
Number of independent distribution points ** | | | | | | | | | | | | | | 247 | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
* As of 10/24/2007
** Includes Canadian Dealers
Towable Recreational Vehicle Segment
| | Quarter | | | | Quarter | | | | Nine Months | | | | Nine Months | | | |
| | Ended | | | | Ended | | | | Ended | | | | Ended | | | |
| | September 30, | | % of | | September 29, | | % of | | September 30, | | % of | | September 29, | | % of | |
| | 2006 | | Sales | | 2007 | | Sales | | 2006 | | Sales | | 2007 | | Sales | |
Net sales | | $ | 70,450 | | 100.00 | % | $ | 64,221 | | 100.00 | % | $ | 274,092 | | 100.00 | % | $ | 214,669 | | 100.00 | % |
Cost of sales | | 65,346 | | 92.76 | % | 57,531 | | 89.58 | % | 244,839 | | 89.33 | % | 194,970 | | 90.82 | % |
Gross profit | | 5,104 | | 7.24 | % | 6,690 | | 10.42 | % | 29,253 | | 10.67 | % | 19,699 | | 9.18 | % |
| | | | | | | | | | | | | | | | | |
Selling, general and administrative expenses & corporate overhead | | 7,409 | | 10.52 | % | 5,819 | | 9.06 | % | 24,953 | | 9.10 | % | 18,053 | | 8.41 | % |
Operating income (loss) | | $ | (2,305 | ) | -3.27 | % | $ | 871 | | 1.36 | % | $ | 4,300 | | 1.57 | % | $ | 1,646 | | 0.77 | % |
| | | | | | | | | | | | | | | | | |
Units Sold | | | | | | | | | | | | | | | | | |
Travel trailer and fifth wheel | | 2,957 | | | | 2,880 | | | | 13,120 | | | | 10,046 | | | |
Specialty trailer | | 1,020 | | | | 1,060 | | | | 3,691 | | | | 3,393 | | | |
Total | | 3,977 | | | | 3,940 | | | | 16,811 | | | | 13,439 | | | |
| | | | | | | | | | | | | | | | | |
Average Gross Wholesale Price | | | | | | | | | | | | | | | | | |
Travel trailer and fifth wheel | | $ | 23 | | | | $ | 20 | | | | $ | 20 | | | | $ | 20 | | | |
Specialty trailer | | 9 | | | | 11 | | | | 8 | | | | 10 | | | |
| | | | | | | | | | | | | | | | | |
Internal retail registrations | | | | | | | | | | | | | | | | | |
Travel trailer and fifth wheel | | 2,830 | | | | 3,900 | | | | 9,889 | | | | 10,328 | | | |
| | | | | | | | | | | | | | | | | |
Additional Information* | | | | | | | | | | | | | | | | | |
Backlog units travel trailers and fifth-wheels | | | | | | | | | | | | | | 605 | | | |
Backlog value | | | | | | | | | | | | | | 14,025 | | | |
Number of production lines | | | | | | | | | | | | | | 7 | | | |
Capacity utilization | | | | | | | | | | | | | | 59 | % | | |
Number of independent distribution points | | | | | | | | | | | | | | 674 | | | |
* As of 10/24/2007
Motorhome Resorts Segment
| | Quarter | | | | Quarter | | | | Nine Months | | | | Nine Months | | | |
| | Ended | | | | Ended | | | | Ended | | | | Ended | | | |
| | September 30, | | % of | | September 29, | | % of | | September 30, | | % of | | September 29, | | % of | |
| | 2006 | | Sales | | 2007 | | Sales | | 2006 | | Sales | | 2007 | | Sales | |
Net sales | | $ | 1,864 | | 100.00 | % | $ | 219 | | 100.00 | % | $ | 24,003 | | 100.00 | % | $ | 11,124 | | 100.00 | % |
Cost of sales | | 634 | | 34.01 | % | 147 | | 67.12 | % | 8,602 | | 35.84 | % | 4,213 | | 37.87 | % |
Gross profit | | 1,230 | | 65.99 | % | 72 | | 32.88 | % | 15,401 | | 64.16 | % | 6,911 | | 62.13 | % |
| | | | | | | | | | | | | | | | | |
Selling, general and administrative expenses & corporate overhead | | 2,134 | | 114.48 | % | 1,272 | | 580.82 | % | 9,211 | | 38.37 | % | 6,072 | | 54.58 | % |
Operating income (loss) | | $ | (904 | ) | -48.50 | % | $ | (1,200 | ) | -547.95 | % | $ | 6,190 | | 25.79 | % | $ | 839 | | 7.54 | % |
| | | | | | | | | | | | | | | | | |
Lots sold in period | | 9 | | | | 1 | | | | 117 | | | | 50 | | | |
Unsold developed lots | | | | | | | | | | 154 | | | | 68 | | | |
Project-to-date lots sold | | | | | | | | | | 653 | | | | 739 | | | |
Lots with deposits | | | | | | | | | | 8 | | | | — | | | |
Resort Locations:
Las Vegas, NV
Total lots in resort are 407, all of which have been developed
Indio, CA
Total lots in resort are 400, all of which have been developed
LaQuinta, CA
Total expected lots in resort are 400, some of which will be available to sell fourth quarter of 2008.
Naples, FL
Total expected lots in resort are 198, some of which will be available to sell second quarter of 2008.
