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Monaco Coach Corp., the leading diesel-pusher Class A motorhome manufacturer, slashed its debt to $32.5 million as of late September, from $85 million as of late June, the New York Stock Exchange-listed company reported on Tuesday (Oct. 21).
The debt reduction was accomplished in the third quarter despite the fact Monaco had, earlier this year, lowered its production rate and needed to offer incentives to push excess inventories of model year 2003 units through the retail pipeline.
The success Monaco has had so far in bringing its output rate into line with retail demand, along with the debt reduction, likely explains why investors pushed Monaco’s stock price to a new 52-week high of $23.08 a share on Tuesday.
It appears Monaco will, again, exceed the $1 billion mark in sales revenue this year, President John Nepute said on Tuesday. Monaco’s sales during the first nine months of this year amounted to $845.1 million and Nepute said fourth-quarter revenue will be in the $290 million to $300 million range, placing the company’s total 2003 sales above $1.1 billion.
Monaco’s sales in 2002 amounted to $1.22 billion and the company’s 2004 sales are expected to range from $1.20 billion to $1.26 billion, said Marty Daley, vice president and CFO.
During the third quarter, Monaco raised $6.5 million in cash from the sale of an undeveloped luxury RV campground site in Naples, Fla., which was used to pay down debt, Daley added.