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 JUNCTION CITY, Ore., Oct. 21 /PRNewswire/ -- Monaco Coach Corporation (NASDAQ-NMS: MCCO) today released its first earnings report since the company went public with an initial public offering of 1,840,000 common shares at $13 per share on Sept. 23, 1993.
 Net sales for the third quarter ended Oct. 2, 1993, increased 28 percent to $20,184,000 from $15,726,000 a year earlier. Operating income in the 1993 third quarter rose 32 percent to $1,775,000 from $1,343,000 in the 1992 third quarter.
 For the nine months ended Oct. 2, 1993, net sales rose 20 percent to $55,146,000 from $45,791,000 in the prior year period. Operating income in the 1993 nine months was $3,541,000, compared to $3,607,000 in the 1992 nine months. Operating income for 1993 is after the expensing of approximately $764,000 relating to the write-up of inventory to fair value, and of $302,000 of goodwill amortization, both of which relate to the company's acquisition of the predecessor.
 Pro forma net income per share for the 1993 third quarter rose 33 percent to $0.24 from $0.18. For the 1993 nine months, pro forma net income per share rose 26 percent to $0.59 from $0.47. Pro forma net income per share reflects certain effects of accounting for the acquisition, the use of proceeds of the initial public offering, the increased shares outstanding following the offering and the termination of certain expenses and the introduction of other expenses concurrent with the initial public offering.
 Order backlog at Oct. 2, 1993 was approximately $33 million, compared to approximately $16.8 million at July 3, 1993 and approximately $12.1 million at Sept. 26, 1992.
 Chief Executive Officer Kay L. Toolson said, "The net sales increase for the 1993 third quarter and nine months was due to strong performance by all of our models. Monaco also added capacity at both its plants during the third quarter of 1993. Capacity at Junction City is now six coaches per week, up from five at the beginning of 1993. In the same period, capacity at Elkhart increased to ten from six."
 Headquartered in Junction City, with additional manufacturing capacity in Elkhart, Ind., Monaco Coach Corporation is the nation's leading manufacturer of "High-Line" motor coaches. The company focuses exclusively on the High-Line segment, manufacturing three motor coach models: the Dynasty, the Executive and the Signature Series.
 Financial statements
 (Unaudited: dollars in thousands, except per share data)
 Actual Three months ended Nine months ended
 10/2/93 9/26/92 10/2/93 9/26/92
 Coaches Sold 134 114 392 351
 Net Sales $20,184 $15,726 $55,146 $45,791
 Gross Profit 3,187 2,585 7,970(A) 7,100
 Operating income before
 management fees and
 amortization of goodwill 1,985 1,540 4,190 4,184
 Operating income 1,775 1,343 3,541 3,607
 Net income before
 extraordinary item 750 1,325(b) 1,316 3,451(B)
 Extraordinary item,
 net of tax 558(C) --- 558(C) ---
 Net income 192 1,325(B) 758 3,451(B)
 Proforma (A) Three months ended Nine months ended
 10/2/93 9/26/92 10/2/93 9/26/92
 Coaches sold 134 142 392 351
 Net sales $20,184 $15,726 $55,146 $45,791
 Gross profit 3,187 2,574 8,726 7,066
 Operating income before
 management fees and
 amortization of goodwill 1,960 1,504 4,944 4,065
 Operating income 1,812 1,357 4,502 3,623
 Net income 1,061 788 2,635 2,081
 Net income per
 common share 0.24 0.18 0.59 0.47
 Weighted average common
 shares outstanding 4,468,734 4,468,734 4,468,734 4,468,734
 (A) -- Gross profit for the nine months ended Oct. 2, 1993 includes the expensing of an approximately $764,000 inventory write-up to fair value related to the acquisition.
 (B) -- The predecessor company was an S corporation not subject to federal and state income taxes. As such, there is no provision for income taxes in the net income before extraordinary item or net income amounts shown for the actual three months ended 9/26/92 and actual nine months ended 9/26/92.
 (C) -- The utilization of the proceeds from the IPO to repay debt resulted in a write-off of the unamortized portion of debt discount associated with the debt. Early extinguishment of debt charges are extraordinary in nature.
 (D) -- Assumes that the company's acquisition and initial public offering occurred at the beginning of the relevant periods and reflects appropriate adjustments.
 -0- 10/21/93
 /CONTACT: Kay L. Toolson, president and CEO, 219-295-8060, or John W. Nepute, vice president of finance and CFO, 503-998-1068, both of Monaco Coach; or Jeffrey R. Zilka of Hill and Knowlton, Inc., 312-565-1200, ext. 526/

CO: Monaco Coach Corporation ST: Oregon IN: AUT SU: ERN

TS -- NY013 -- 4954 10/21/93 08:14 EDT
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Publication:PR Newswire
Date:Oct 21, 1993

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