Monaco Coach Corp. reports its second quarter net income doubled to $11 million and its sales revenue during the three months ended June 29 climbed 40% higher to $313.7 million.
The hefty increases occurred in an economic environment that Monaco Chairman and CEO Kay Toolson described as challenging. However, Monaco debuted its 2003 models recently during its national dealer meeting and Toolson said, “The dealers at the meeting were enthusiastic about the market in general and our new products, and they responded with a record number of orders.”
The strong 2003 order volume came on the heels of a 25% increase in the sales of Moncao-built units during the second quarter. Monaco sold 2,996 units during the April-through-June period, compared with 2,395 units sold during the same period a year earlier. It sold 2,095 motorhomes and 901 towables during the three months ended June 29.
“We remain confident that by continuing to focus on product development, by building strong dealer relationships, and by working together with them to meet our customers’ needs, we will successfully take advantage of opportunities in the market,” Toolson said.
During the first half of this year, Monaco’s net income soared 93% higher to $20.6 million on sales revenue that increased 40% to $607.3 million.
Monaco’s unit volume increased 21% during the first half of this year to 5,688 motorhomes and towables. Its motorhome sales amounted to 4,018 units and its towables sales totaled 1,670 units.
A year-ago, Monaco acquired SMC Corp., which added the Safari and Beaver brands of highline motorcoaches to its line-up. “The integration of Safari and Beaver is progressing well and we continued to increase production rates for each of our brands during the (second) quarter,” said John Nepute, president.
“The 2003 model change was our first since the SMC acquisition, and in addition to thoroughly updating all of our existing lines, we introduced several key new products in important market segments,” Nepute said. “Based on comments and orders from our dealers, we’re very excited about the potential of the 2003 model year.”
Despite the added costs generally accompanying the annual model change, Monaco was able to increase its gross margin to 13.1% of sales in the second quarter, said Marty Daley, vice president and CFO. “We should continue to realize plant efficiencies during the third and fourth quarters that will allow us to build on this margin improvement. This progress is consistent with our expectations and we remain confident that we are on target to meet our fiscal year goals,” Daley said.