Monaco Coach Corp. reported a $71.8 million net loss for its fiscal third quarter, aggravated by “extremely difficult market conditions” and restructuring charges related to the consolidation and closure of facilities.
“Lack of consumer confidence and tight consumer lending trends have impacted retail sales, which has dealers looking to reduce their inventories,” said Kay Toolson, chairman and CEO of the Coburg, Ore.-based builder. “We anticipated the second half of 2008 would be challenging, and as difficult as the decision was to make, we believe that significantly reducing our manufacturing capacity has helped position the company to return to break-even during the first half of 2009.”
In its report, Monaco also said the company anticipates finalizing new loan agreements to replace it existing credit facility by the end of the week.
Sales for the quarter, ended Sept. 27, declined 48% to $166.3 million from $322.4 million in the year-ago period while the net loss of $71.8 million compared to net income of $3.7 million. Monaco said the operating loss of $90.6 million for the third quarter included restructuring and impairment charges of $68.5 million.
For the nine months, revenues fell 37% to $620.5 million from $980 million a year ago and the company reported a net loss of $89.9 million compared to net income of $9.6 million.
Monaco noted that heavy discounting also cut into profits.
Performance by segment showed:
• Motorized sales declined to $128.5 million from $258 million the year prior while unit sales fell to 813 compared with 1,470. Class A diesel units shipped for the quarter were 459 versus 1,080, Class A gas units shipped totaled 212 versus 230, and Class C units shipped were 142 versus 160.
• Third-quarter towable sales of $37.1 million compared to $64.2 million a year ago. Unit sales, including specialty trailers, were 2,469 units, down from 3,940 units for the same period a year ago.
• Motorhome resort sales for the third quarter were $657,000, up from $219,000 the previous year. Operating loss for the segment was $1.4 million compared to an operating loss of $1.2 million for the same period last year. The company said a new resort location in the Naples, Fla., area is currently under development and new lots at this resort are expected to be available for sale in the fourth quarter.