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Old 07-17-2008, 05:40 PM   #29
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<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">psc907 </div></BLOCKQUOTE>
I agree with psc907. Monaco is making the right business decisions and taking the right actions early. That is what it takes to survive as a business. I expect that they will be around when the market turns around.
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Old 07-18-2008, 01:53 AM   #30
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Does anyone know which products were produced at Wakarusa, Elkhart and Nappanee? Does this mean the end of Holiday Rambler and Roadmaster? You would think Monaco would continue with the Roadmaster chassis. Maybe they just need to quit producing like models under two names.

I sure hate to see all those folks loose their jobs.

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Old 07-18-2008, 03:07 AM   #31
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Did any of you see that they now have 2 million sq. ft. of space for sale. I doubt there are any takers in this depressed area. Production for Monaco will now be at 90 per week instead of 180. They also make mention of "world class customer care" I hope that part is true. Sometimes when a company cuts back the customer service suffers.
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Old 07-18-2008, 03:13 AM   #32
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Good morning all.
The stock is at 2.74 today. I've followed this thread and watched and read the information on the "net" about Monaco since I too bought one last month. It was bought based on the reputation from people I met at RV parks across the USA for over a year.
Those that have any experience in the stock, financial, or day trading fields, would you care to speculate and give comments on where the one year mark from now will find Monaco ?
As I write this, it occurs to me that I've not looked into the history of the CEO "Kay" spoken of and see how his history of decisions have been. If he truly does care, then this is some of the hardest decisions for him to make I would believe.
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Old 07-18-2008, 04:03 AM   #33
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Today's news from the internet;

In a move that has knocked the wind out of Indiana's Elkhart County, Monaco Coach Corp. announced the closure of plants in Elkhart, Nappanee and Wakarusa and job cuts impacting about 1,400 hourly and salaried workers.

And, according to a report in the Elkhart Truth, it is also inducing many to call upon the federal government to do something to rein in rising fuel prices.

The recreational vehicle manufacturer, headquartered in Coburg, Ore., told its employees of its decision and issued a press release Thursday. Operations are expected to permanently cease in the three cities by mid-September.

Shortened work weeks, reduced hours and layoffs have become a regular occurrence in the RV industry as the national economy appears headed toward recession but the Monaco layoff and closure will be the largest since the downturn began.

The news stunned even veteran RV businessmen.

Lawrence Thomas, president of JSI Corp., a supplier to the RV industry, was still a teenager when he began his career by sweeping floors and cleaning toilets in RV plants. He has seen the industry struggle during the recessions in the 1970s and early 1990s but this latest round of economic troubles is new territory.

"I've never seen our industry like it is right now," Thomas said. "I've been around a long, long time and this is the worst I've seen it."

The Monaco reorganization will be as follows:

* From the Wakarusa plant, the production of Class A diesel motorhomes will go to facilities in Oregon. The Class A gas-powered motorhomes and fifth-wheels will be moved to the Warsaw plant.

* From the Elkhart plant, the joint venture production of diesel chassis with International Truck and Engine Corp. will be moved to Oregon.

* The Nappanee cabinetry shop will be closed.

* The Goshen plant, which makes Roadmaster brand utility trailers, and the Milford plant, which makes Bison brand horse trailers, will not be impacted.

The Truth reported that production will continue for another 60 days in order to finish the units already on the line, said Craig Wanichek, director of investor relations for Monaco.

Monaco blamed high fuel prices, declining consumer confidence and tightening credit markets for the consolidation. In the letter sent to employees, CEO Toolson wrote the government "can do more to facilitate a recovery in our nation's economy" and, in particular, he noted government officials "should be taking steps toward making our country energy self-reliant again through drilling for oil, building refineries and encouraging greater use of alternate energy."

He then encouraged his employees to write to their congressional representatives and ask them to "support legislation that will assist in returning our nation's economy to a position of strength."
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Old 07-18-2008, 04:23 AM   #34
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......and more news;

MILWAUKEE -- Monaco's plans to close three manufacturing facilities to reduce production capacity has met with the approval of investment analysts at R.W. Baird and Company.

"We like the decision, as it lowers the revenue breakeven level to $700-$750 million from $1 billion," said Craig Kennison, a certified financial analyst. "At 36 percent of tangible book value, we believe shares trade well below the value of its assets, but the stock is not likely to recover until the company restructures its debt."

Following Thursday's news that Monaco would shutter three plants in the Elkhart area, Kennison and the Baird staff tried to paint a picture of how the reduction would impact the company.

* The closures are expected to save approximately $48 million annually, after a one-time charge of $7.5 million. An impairment charge is also possible.

* The locations were acquired approximately 10 years ago and have a current book value near $48 million. Management is assessing the current market value and may take an impairment charge. The three locations total nearly 2 million square feet of industrial space plus some manufacturing equipment.

* Kennison said he is convinced that the asset value of Monaco is significantly higher than the market value determined by the current stock price. Shares are not likely to recover until management restructures its credit agreement with its banks.

* Monaco Coach is the leader in the luxury segment of the RV industry, with 26 of the Class A diesel market, said Kennison. Following the acquisition of R-Vision in 2005, the company is also the No. 5 maker of towable RVs, improving its exposure to the faster-growing segment of the RV industry.

* Monaco has excess capacity. Currently the company is operating near 58 percent and 52 percent of unit capacity in its motorized and towable facilities, respectively.

"We believe the absence of such an announcement was a factor behind the 10 percent drop in the stock yesterday," said Kennison. "Monaco Coach operates at significantly lower operating margin than its leading competitors. To address this opportunity, the company has cut unproductive capacity, restructured its dealer pricing strategy, and entered a joint venture with International Truck & Engine Corp. to produce high-end diesel chassis. Given its revenue base relative to its peer group, we believe the company has a significant opportunity to expand margin."

Monaco is expected to report current financial results July 30.
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Old 07-18-2008, 04:33 AM   #35
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And the official Monaco Press Release!

News Releases

Monaco Coach Corporation Announces Relocation of Wakarusa and Elkhart Production


Second Quarter 2008 Financial Results Conference Call to be Held July 30, 2008

COBURG, OR--(MARKET WIRE)--Jul 17, 2008 -- Monaco Coach Corporation (MNC - News) announced today that it will relocate all service and production operations in Wakarusa, Elkhart and Nappanee, Indiana and permanently cease operations at those locations. The shutdown is presently scheduled for approximately September 17, 2008.

Production of the majority of motorized units currently manufactured in these locations will be relocated to Monaco's Coburg, Oregon operations. Production of two of the models will be relocated to the Warsaw, Indiana manufacturing location. The towable production line will also be integrated into Monaco's Warsaw location.

"We have implemented several successful initiatives over the past 18 months in an effort to size our business to match declining market demand. However, market conditions have continued to deteriorate, and we do not see significant improvements occurring in the near future. Therefore, the Company finds it necessary to take further action by implementing a significant capacity reduction," said Kay Toolson, Chairman and CEO. "We deeply regret the impact that shutting down these operations will have on our employees and their families as well as the communities in which they live and work."

The Class A market is in its fourth year of declining shipments. The Recreation Vehicle Industry Association reported 32,900 Class A shipments in 2007, down 29% from 46,300 shipments reported in 2004. As a result of record high fuel prices, declining consumer confidence and challenging consumer credit markets, Class A shipments have continued to weaken in 2008, down an additional 40% from 2007.

Approximately 1,400 hourly and salaried employees will be impacted by the move, or 33% of the Company's total workforce. Monaco Coach Corporation will still maintain a significant presence in the Northern Indiana area with approximately 700 employees at its Warsaw, Milford and Goshen operations.

"We feel this action, while painful, will enable us to continue to provide world-class products and best-in-the-industry customer care," said John Nepute, President. "Both the Coburg and Warsaw manufacturing facilities have experience building these types of models."

Nepute added, "Over the last several quarters, in order to align production with retail demand we have reduced production by taking days and weeks off. The closure of these production facilities in Indiana will decrease our Class A motorized capacity from approximately 180 units per week to 90 and should allow the Company to begin working full-time at the remaining plants in the fourth quarter. The new manufacturing footprint should also allow us to reduce the need for discounting at lower sales volumes."

"This change will also reduce our working capital requirements and borrowing requirements significantly," said Nepute. "Additionally, we will continue to adjust other areas in our business to reduce our break-even level."

The moves, once completed, are expected to reduce costs by over $12 million per quarter. One-time costs associated with the move will be approximately $7.5 million in the third quarter, including employee compensation expenses. The Company has created a compensation package for its employees who continue to work through the shutdown and relocation assistance for any employees moving to Oregon.

The Company is evaluating the impairment charges that will be taken due to the idling of the Indiana facilities, which have a current book value of $47.9 million.

Monaco Coach Corporation will host a conference call broadcast live over the Internet at 2:00 p.m. Eastern Daylight Time (EDT) on Wednesday, July 30, 2008 to discuss the financial results for its second quarter of fiscal year 2008, ended June 28, 2008. For the conference call, simply log on to http://www.monaco-online.com. If you are unable to participate during the live webcast, the call will be archived on the web site.

About Monaco Coach Corporation

Monaco Coach Corporation, a leading national manufacturer of motorized and towable recreational vehicles, is ranked as the number one producer of diesel-powered motorhomes. Dedicated to quality and service, Monaco Coach is a leader in innovative RVs designed to meet the needs of a broad range of customers with varied interests and offers products that appeal to RVers across generations.

Headquartered in Coburg, Oregon, with substantial manufacturing facilities in Indiana, the Company offers a variety of RVs, from entry-level priced towables to custom-made luxury models under the Monaco, Holiday Rambler, Safari, Beaver, McKenzie, R-Vision and Dodge brand names. The Company maintains RV service centers in Harrisburg, Oregon and Wildwood, Florida and operates motorhome-only resorts in California, Florida, Nevada and Michigan.

Monaco Coach Corporation trades on the New York Stock Exchange under the symbol "MNC," and the Company is included in the S&P Small-Cap 600 stock index. For additional information about Monaco Coach Corporation, please visit www.monaco-online.com or www.trail-lite.com.
The statements above regarding anticipated plant capacity, ability to reduce discounting, potential savings and expenses per quarter, one-time costs associated with the move, reduction of working capital needs, reduction of borrowings, and reduction of break-even level are forward-looking statements based on current information and expectations and involve a number of risks and uncertainties. A number of factors could cause actual results to differ materially from these statements, including larger than projected transition costs, less than anticipated manufacturing gains, slower than expected sales of new and existing products, a general slowdown in the economy, new product introductions by competitors, or the loss of dealers or deterioration in the relationships with dealers. Please refer to the Company's SEC reports, including but not limited to the most recent Form 10-Q, the annual report on Form 10-K for 2007, and the 2007 Annual Report to Shareholders for additional factors. These filings can be accessed over the Internet at http://www.sec.gov.

Contact:
CONTACT:
Craig Wanichek
Director of Corporate Communications
Monaco Coach Corporation
(541) 681-8029
Email Contact



Source: Monaco Coach Corp.
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Old 07-19-2008, 09:43 AM   #36
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<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by William Willard:
Maybe this will be a wake-up for Monaco, & other mfg.to concentrate on quality in place of quantity -- Bill Willard </div></BLOCKQUOTE>I agree. Such a "simple concept", but extremely difficult for many corporations to implement. Closing the Indiana service facility would not seem to be a start in that direction.
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Old 07-19-2008, 11:27 AM   #37
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<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by Robin_M:
Such a "simple concept", but extremely difficult for many corporations to implement. Closing the Indiana service facility would not seem to be a start in that direction. </div></BLOCKQUOTE>

I think you are ABSOLUTELY correct.

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Old 07-19-2008, 01:20 PM   #38
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<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">the national economy appears headed toward recession but the Monaco layoff and closure will be the largest since the downturn began. </div></BLOCKQUOTE> And a few folks still think we're not in a recession. Our GOV needs cash ASAP for our multi-billion dollar War and slow economy, thus fuel pricing is going thru the roof. It's the one resource/product none of us can do without... The real winners, Arab countries, Big Oil and lots of government taxes/funding... Loosers, everyone else. Monaco stock has actally almost hit rock bottom. The GOV considers Monaco a recreational fun type stock. I just hope Kay and the board members' remember who tossed them under the bus.
Banks are really holding tight, so no movement up or down. Even Monaco Dealers are just trying to survive the 2008 season by cutting new factory products to the bone.
Stop-gap measures for Monaco is the customer service growth sector. Monaco can count on loyal coach and 5 wheel/tow owners. We all want Monaco to stay afloat.
Once Monaco retools and starts producing high fuel saving, battery assisted type diesel/gas coaches that can recharge at any 50 amp camp site), we're all on stand-by. Our new national challenge. DocUSAF
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Old 07-19-2008, 02:24 PM   #39
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This is on the Yahoo site.
http://biz.yahoo.com/ap/080717/monac...cuts.html?.v=3
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Old 07-19-2008, 02:30 PM   #40
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DocUSAF is painting a rather extreme case. I don't think anyone in Govt sees the RV industry as a "fun" business to be "tossed under the bus", they are no different than any other business and is subject to all the market forces any other business is. There is a new VanHool fuel cell conversion bus out there being developed by UTI. It is being converted from a standard OTR tour bus, which is the same concept that Prevost uses. I'd hoped they would be past this point by now but perhaps this is what we need to get the industry over the hump. The auto industry has been thru similar processes before and has emerged better every time.
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Old 07-19-2008, 03:31 PM   #41
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Toolson and Nepute, in their joint letter to employees, urged them to write congressional representatives and ask them to support legislation to strengthen the economy.
Sorry, didn't mean to paint an extreme case, but Monaco current market stock and the company's bottom line/plus write offs reflect a real period of uncertainty. The "under the bus" reaction is simple the pressures the RV market as a whole has adsorbed for high fuel cost/and no alternative fuel RV platform waiting in the wings. State parks, camp grounds, week-end trips,ect all reflect a decline in RV campers actually in place. Possible Govt bail out of the RV industry like GM, Ford or Chrysler, maybe... I know Alfa Leisure is hoping/waiting. I think Monaco still will comes out on top, especially with the restructure, cutting/ trimming/even Canx'ing a few top exec's.
Kay is actually moving very quickly to stop this bleeding. He's really in warriors mode Now!
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Old 07-19-2008, 03:50 PM   #42
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I really doubt that any of us will see large hybrid MH's in the next 10 years. Maybe never. The RV industry evolved from the mobile home industry. Not exactly a forward thinking segment of the manufacturing industries. Monaco may survive but asking the government for help is nuts. Maybe they should have foreseen the downward trend more than a year ago. I look on this as natural evolution. The better companies will survive. I really do not think the RV industry will ever be as it was. At the FMCA rally the only manufacturer that I noticed with a variety of smaller fuel efficient units was Winnie. They were all Class C/B. Every one is expecting the industry to do R&D on improving fuel mileage and CC shows 3 units with a veranda!! What a dumb idea!!! I think they could be "next". As others have stated Monaco needs to preserve their customer base. More not less service centers are required. And forget that ridiculous idea of servicing SOB's. I wonder what the June sales figures for the industry will be. Class A's were down 58% in May. Might be even worse in June. I spoke with a salesman for another brand at St. Paul and he said they lost some sales as the prices they offered for trades was very low. They already have too many used units. I read today that Olympic Sales, a huge multi location boat dealer, is in Chapter 11. Another large dealer was also in trouble. Hard times are here!
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