Monaco Coach Corp. today reported revenue of $226 million for the second quarter ended July 1, a 14% increase over $199 million in revenue for the same period last year. Net income for the second quarter was $11.1 million, versus $11.4 million for the same period last year. Second quarter operating income was $18.2 million.
“We’re proud of our results, given the challenges our industry faced throughout the second quarter,” stated Kay L. Toolson, Monaco Chairman and CEO. “In response to seasonal pressure associated with the end of the 2000 model year, competitors’ incentive programs and higher dealer operating costs resulting from interest rate increases, we did offer some incentives of our own which put pressure on earnings. However, we were very successful in moving remaining 2000 model year product, and our 2001 models have debuted. Throughout the quarter retail demand for our products remained strong. Through May, the most recent data available, retail registrations for Monaco Coach Corporation class A motorhomes were up 21% over the same period a year ago. In the diesel market, which grew by 22% through May, retail registrations of our products were up over 40%.”
Toolson added that comparative retail dealer inventory of the Company’s products is at lower levels than at this time last year.
Monaco CFO John Nepute added, “Our market share in both the towable and motorized market segments increased steadily during the second quarter. In May, for example, our class A market share rose from 10.8% last year to 13.4% this year. In the diesel motorhome market, our share in May was 24.6%, versus 21.5% for the same period a year ago. Our product development team has done an exceptional job preparing the 2001 products and we believe these new models will allow us to maintain this momentum.”
Second quarter unit sales of Monaco Coach Corporation products totaled 2,650 units, an increase of 8.0% from the same period last year. Second quarter motor home sales totaled 1,719 units, and second quarter towable recreational vehicles totaled 931 units. For the six months ended July 1, 2000, unit sales totaled 5,459 units, an increase of 13.0% from the same period last year.
For the six months ended July 1, 2000, earnings per share were $1.25, an increase of 13.6% from the same period last year, on revenue of $464 million. For the six months ended July 1, 2000, net income rose 12.8% to $24.1 million. Operating income for the six months ended July 1, 2000 was $39.6 million, an increase of 9.3% over the same period last year.