In a preliminary earnings statement, National RV Holdings Inc. reported a slight increase in sales for the company’s second quarter, offset by a net loss for the period due to heavy discounting.
The Perris, Calif., company, parent to motorhome builders National RV Inc. and Country Coach Inc., said sales grew 3% during the three-month period, ended June 30, to $123.2 million from $119.3 million a year ago. The company recorded a net loss of $5.4 million for the quarter compared with net income of $2.5 million the year prior.
For the six months, National RV Holdings reported a net loss of $6.9 million compared with net income of $3.2 million last year while sales rose 12% to $248.9 million from $222.4 million.
“This quarter’s net sales increase marks National’s eighth consecutive quarter with year-over-year increases,” said Brad Albrechtsen, National RV Holdings president and CEO. “However, as industry-wide demand for Class A motorhomes weakened, these sales increases were achieved at the expense of higher discounts and incentives on our lower priced gasoline-powered and diesel motorhomes. Consequently, we are maintaining reduced production rates on these products.
“We are encouraged, however, by the relatively robust demand that we have seen for our highline products in our operations at Junction City, Oregon.”
The company also announced that it closed on a new three-year asset-based revolving credit facility with UPS Capital Corporation and Wells Fargo Bank for an initial amount of $25 million.