Monaco Coach Corporation (NYSE: MNC - News), one of the nation's leading manufacturers of recreational vehicles, today reported revenue and earnings for the fourth quarter and fiscal year ended December 31, 2005. These results reflect the resolution of the accounting treatment of the Franchise for the Future branding element assets. The assets have been capitalized and will be depreciated over several years. This is the treatment anticipated in the fourth quarter guidance the Company provided in October 2005.
Fourth quarter 2005 revenues were $306.0 million, down 4.8% compared to $321.5 million in revenues for the fourth quarter of 2004. Fourth quarter gross profit was $31.3 million, down from $35.9 million a year ago. Operating income for the fourth quarter decreased to $4.0 million compared to $8.5 million for the fourth quarter of 2004. Net income for the fourth quarter of 2005 was $2.5 million compared to $5.4 million a year ago. For the fourth quarter of 2005, diluted earnings per share were $0.08 versus $0.18 for the same period last year.

For the fiscal year ended December 31, 2005, Monaco reported revenues of $1.24 billion, approximately 10.8% lower than last year's record revenues of $1.39 billion. Operating income for the year was $7.2 million versus $59.7 million for 2004. Net income for the year was $2.6 million, compared to $36.7 million earned in 2004. Earnings per share were $0.09 compared to $1.23 for 2004.
Kay Toolson, Chairman and Chief Executive Officer stated, "As expected, operating conditions in the fourth quarter of 2005 remained challenging. In response to these challenges, our management team executed the adjustments the Company announced after the end of the third quarter and enacted other cost-saving measures enabling the Company to generate earnings, even in light of the disappointing motorhome market.
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