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Monaco Coach Corp. delayed the release of the company’s fourth quarter and year-end financial results, citing “an unresolved question” concerning accounting practices for its “Franchise for the Future” dealer program.
The Coburg, Ore.-based builder did report fourth quarter revenues of $306 million, down 4.8% compared to $321.5 million a year ago while gross profits during the period declined to $31.3 million from $35.9 million.
Monaco said that all other issues regarding the company’s year-end financial results were completed in the normal course of business. The remaining question specifically deals with the treatment of signage, displays and kiosks placed at certain dealers as part of its “Franchise for the Future” initiative rolled out last June.
“We are researching the item to ensure that we resolve this technical issue to its full extent prior to the release of 2005 year-end results,” said CFO Marty Daley. “The cost of these assets is approximately $3.1 million, which could be determined to be expense in the fourth quarter or capitalized and depreciated over several years.
“If we determine that the proper accounting treatment would be to expense these assets in the fourth quarter of 2005, then our pre-tax income would be at approximately break-even, consistent with our previously announced guidance.”