2006
was
the
reconfiguration
of
our
motorized
production
lines,"
said
Toolson.
"This
modification
reduced
the
number
of
lines
producing
motorhomes
from
seven
to
five
and
allowed
us
to
produce
more
similarly
priced
products
on
each
line,
which
in
turn
has
given
us
greater
flexibility
in
adjusting
our
production
mix
to
meet
demand
for
individual
models."
"This
change
along
with
the
recent
improvement
in
wholesale
and
retail
activity
has
resulted
in
a
stronger
order
position,"
continued
Toolson.
"Our
improved
position
has
translated
into
modest
increases
in
production
run
rates,
and
combining
this
with
our
low
finished
goods
inventory,
we
believe
that
we
are
doing
a
much
better
job
of
matching
our
production
level
with
wholesale
and
retail
demand,
which
we
believe
should
continue
to
reduce
the
need
for
incentives
to
move
our
products
through
the
distribution
channel."
Fourth
quarter
SG&A
expenses
of
$27.6
million
were
3.2%
higher
compared
to
$26.7
million
reported
for
the
fourth
quarter
2005.
Sequentially,
however,
SG&A
expenses
declined
6.4%
from
$29.5
million
reported
in
the
third
quarter
2006,
primarily
as
a
result
of
a
decline
in
settlement
expense,
stock-based
compensation,
and
show
and
rally
expenses.
Stock-based
compensation
was
the
primary
contributor
to
an
increase
of
SG&A
expenses
to
$120.5
million
for
2006,
compared
to
$113.2
million
in
2005.
The
Company
reported
finished
goods
inventory
of
$26.8
million
at
year
end,
down
from
$50.2
million
at
the
end
of
the
third
quarter
of
2006.
The
balance
outstanding
on
our
line
of
credit
was
also
reduced
from
$9.4
million
at
the
end
of
the
third
quarter
2006
to
$2.0
million
at
year
end.
Motorized
Recreational
Vehicle
Segment
The
Motorized
RV
Segment
reported
net
sales
of
$240.9
million
during
the
fourth
quarter,
an
increase
of
8.6%
compared
to
$221.9
million
for
the
fourth
quarter
2005.
Total
units
shipped
for
the
quarter
were
1,392,
an
increase
of
5.7%
compared
to
the
comparable
period
in
2005.
The
Motorized
RV
Segment
reported
gross
profit
of
$19.7
million,
or
8.2%
of
net
sales,
in
the
fourth
quarter
of
2006,
compared
to
$21.2
million,
or
9.6%
of
net
sales,
in
the
fourth
quarter
2005.
The
Company
reported
an
operating
loss
in
the
segment
of
$31,000
in
the
fourth
quarter
of
2006
compared
to
operating
income
of
$1.5
million
for
the
fourth
quarter
2005.
"Internal
retail
reporting
shows
retail
sales
up
over
15%
for
January
2007.
This
is
a
positive
indicator
for
this
segment
of
the
business
in
the
first
quarter,"
said
John
Nepute,
President
of
Monaco
Coach
Corporation.
"We
are
also
encouraged
by
dealers'
positive
acceptance
of
our
2007
models
introduced
at
the
November
2006
Louisville
RV
Show."
Net
sales
for
the
Motorized
RV
Segment
for
2006
were
$941.7
million,
a
7.4%
decrease
over
net
sales
of
$1.0
billion
for
2005.
Gross
profit
for
the
recent
year
was
$72.5
million,
or
7.7%
of
net
sales,
compared
to
$92.8
million,
or
9.1%
of
net
sales,
in
2005.
The
reported
operating
loss
for
the
period
was
$6.2
million
as
compared
to
an
operating
loss
of
$1.1
million
for
2005.
There
were
5,756
units
sold
in
2006,
compared
to
6,221
in
2005.
Towable
Recreational
Vehicle
Segment
The
Towable
RV
Segment
reported
net
sales
of
$50.3
million
during
the
fourth
quarter,
a
34.5%
decrease
compared
to
$76.7
million
for
the
fourth
quarter
2005.
Gross
profit
for
the
segment
was
$2.2
million,
or
4.4%
of
net
sales.
Gross
profit
for
the
fourth
quarter
2005
was
$5.7
million,
or
7.5%
of
net
sales.
Operating
loss
for
the
fourth
quarter
was
$2.9
million
compared
to
operating
income
of
$917,000
for
the
fourth
quarter
2005.
Fourth
quarter
2006
towable
units
sold
were
2,781,
compared
to
2,343
in
the
fourth
quarter
2005,
not
including
2,595
FEMA
units
sold
during
the
fourth
quarter
2005.
Fourth
quarter
2006
included
1,843
towable
units
sold
by
R-Vision,
compared
to
1,260
for
the
six
weeks
that
the
Company
owned
R-Vision
in
the
fourth
quarter
2005.
"The
decline
in
the
towable
segment
for
the
fourth
quarter
2006
when
compared
to
the
fourth
quarter
2005
was
mainly
created
by
the
$30.2
million
in
emergency
living
unit
(FEMA
unit)
sales
recorded
in
the
fourth
quarter
2005,
the
increased
demand
for
conventional
towable
units,
which
also
were
deployed
for
the
hurricane
relief
efforts
in
2005,
and
a
decline
in
R-Vision
shipments,"
said
Nepute.
"Without
the
significant
benefit
from
FEMA
sales
in
2006,
margins
and
operating
profits
were
lower
compared
to
the
fourth
quarter
2005."
"The
overall
towable
market
has
been
extremely
competitive,
particularly
at
the
beginning
of
the
fourth
quarter.
However,
we're
encouraged
by
our
results
at
the
Louisville
show
where
the
completely
redesigned
interiors
of
several
models
for
the
Holiday
Rambler
and
McKenzie
brands
received
great
reviews
by
our
dealers,
and
R-Vision
reported
a
record
number
of
orders,"
noted
Nepute.
"We
anticipate
that
the
improvements
to
these
models
which
are
in
the
value-priced
segment
of
the
towable
market
will
positively
influence
sales
in
2007."
Net
sales
for
the
Towable
RV
Segment
for
2006
were
$324.3
million,
compared
to
net
sales
of
$185.4
million
for
2005.
Gross
profit
for
the
recent
year
was
$31.5
million,
or
9.7%
of
net
sales,
compared
to
$11.2
million,
or
6.0%
of
net
sales,
for
2005.
Operating
income
was
$1.4
million
in
2006
versus
an
operating
loss
of
$2.0
million
for
2005.
There
were
19,861
units
sold
in
2006,
compared
to
9,337
in
2005,
including
1,260
units
sold
by
R-Vision
in
2005
and
13,740
in
2006.
Motorhome
Resorts
Segment
Net
sales
for
the
Motorhome
Resorts
Segment
in
the
fourth
quarter
were
$8.0
million,
an
increase
of
8.8%
compared
to
$7.3
million
for
the
fourth
quarter
2005.
Gross
profit
for
the
Motorhome
Resorts
Segment
was
$5.1
million
in
the
fourth
quarter
compared
to
$4.3
million
for
the
fourth
quarter
2005.
The
Company
reported
operating
income
in
this
segment
of
$2.4
million
in
the
fourth
quarter
compared
to
operating
income
of
$1.6
million
for
the
fourth
quarter
2005.
"While
we
are
pleased
that
the
Motorhome
Resorts
Segment
continues
to
generate
positive
operating
margins,
we
were
disappointed
in
the
level
of
sales
in
the
fourth
quarter.
The
shortfall
was
due
primarily
to
construction
around
the
Las
Vegas
project
impeding
entrance
to
the
resort,
poor
weather,
and
sales
in
escrow
that
didn't
close
prior
to
year
end
due
to
holiday
scheduling,"
said
Nepute.
"We
anticipate
that
these
lot
sales
will
flow
into
the
first
quarter,
and
we
still
anticipate
selling
all
available
lots
at
our
two
existing
resorts
in
the
first
half
of
2007.
Plans
are
also
progressing
as
scheduled
on
our
two
future
development
sites
in
Naples,
Fla.
and
La
Quinta,
Calif."
Net
sales
for
the
Motorhome
Resorts
Segment
for
2006
were
$32.0
million,
down
from
sales
of
$33.0
million
for
2005.
Gross
profit
for
this
segment
was
$20.5
million
in
2006,
compared
to
$20.8
million
for
2005.
Operating
income
was
$8.6
million
for
2006,
down
from
$10.3
million
for
2005.
2007
Business
Outlook
Marty
Daley,
Monaco
Coach
Corporation
Vice
President
and
Chief
Financial
Officer,
stated,
"The
franchise
program
continues
to
gain
acceptance
with
our
dealer
partners
along
with
other
initiatives,
including
Monaco
Financial
Services
and
Monaco
Extended
Care
Warranty
programs.
We
believe
the
Company
is
uniquely
positioned
to
provide
a
full
array
of
products
and
services
that
will
enable
our
dealer
partners
to
attract
more
customers
and
generate
more
profits."
"Provided
there
are
no
material
changes
in
the
marketplace,
we
expect
revenues
in
the
range
of
$1.37
billion
to
$1.45
billion
in
2007.
However,
the
leveling
off
of
interest
rates,
lower
fuel
prices
and
recent
gains
in
equity
markets
have
traditionally
been
positive
drivers
for
the
RV
markets,"
said
Daley.
"Capacity
utilization
in
our
plants
remains
a
challenge
and
is
still
lower
than
desired.
We
will
continue
to
address
this
issue
as
we
target
ways
to
increase
our
gross
profit
margin.
We
expect
fiscal
2007
gross
margin
to
be
between
10.05%
and
10.25%.
Selling,
general
and
administrative
expenses
in
fiscal
2007
are
expected
to
be
between
8.35%
and
8.2%,"
Daley
added.
Conference
Call
to
be
Held
Monaco
Coach
Corporation
will
conduct
a
conference
call
in
conjunction
with
this
news
release
at
2:00
p.m.
Eastern
Time
on
Thursday,
February
8,
2007.
Members
of
the
news
media,
investors,
and
the
general
public
are
invited
to
access
a
live
broadcast
of
the
conference
call
via
the
Investor
Relations
page
of
the
Company's
website
at
www.monaco-online.com.
The
conference
call
will
be
archived
and
available
for
replay
for
the
next
90
days.
About
Monaco
Coach
Corporation
Dedicated
to
quality
and
service,
Monaco
Coach
Corporation
is
one
of
the
nation's
leading
manufacturers
of
motorized
and
towable
recreational
vehicles.
Headquartered
in
Coburg,
Oregon,
with
substantial
manufacturing
facilities
in
Indiana,
Monaco
Coach
employs
approximately
5,400
people.
The
Company
offers
entry-level
priced
towable
RVs
up
to
custom
made
luxury
recreational
vehicle
models
under
the
Monaco,
Holiday
Rambler,
Safari,
Beaver,
McKenzie,
R-Vision
and
Dodge
brand
names.
Monaco
Coach
maintains
RV
service
centers
in
Harrisburg,
Ore.,
Elkhart,
Ind.,
and
Wildwood,
Fla.
Ranked
as
the
number
one
manufacturer
of
diesel
powered
motorhomes,
Monaco
Coach
is
a
leader
in
innovative
RVs
designed
to
meet
the
needs
of
a
broad
range
of
customers
with
varied
interests.
Monaco
Coach
Corporation
stock
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
the
Company's
expectation
for
further
gains
in
fiscal
2007
as
a
result
of
improved
manufacturing
efficiencies,
increases
in
retail
sales
in
the
Motorhome
Resorts
Segment
in
the
first
quarter
of
fiscal
2007,
improved
prospects
for
the
Motorized
RV
Segment
in
fiscal
2007,
sales
of
remaining
available
lots
at
the
Company's
existing
resorts
in
the
first
half
of
fiscal
2007,
and
in
the
"2007
Business
Outlook"
section
regarding
improving
retail
sales
and
expectations
for
revenues,
gross
profit
margin
and
SG&A
expenses
in
fiscal
2007
are
forward-looking
statements
subject
to
various
risks
and
uncertainties
that
could
cause
actual
results
to
differ
materially
from
these
statements,
including
unforeseen
declines
in
the
wholesale
and
retail
markets
for
recreational
vehicles,
consumers'
preference
for
certain
models
and
resort
lots,
failure
to
realize
gains
from
the
motorized
manufacturing
efficiencies
as
anticipated,
a
decline
in
consumer
confidence,
an
increase
in
interest
rates
affecting
retail
and
wholesale
financing,
an
increase
in
price
or
availability
of
fuel,
and
a
downturn
in
the
equity
markets.
Please
refer
to
the
Company's
SEC
reports
for
additional
risks
and
uncertainties,
including
but
not
limited
to
the
most
recent
Form
10-Q,
the
annual
report
on
Form
10-K
for
2005,
and
the
2005
Annual
Report
to
Shareholders
for
additional
factors.
These
filings
can
be
accessed
over
the
Internet
at
http://www.sec.gov.
CONTACT:
Craig
Wanichek
Director
of
Investor
Relations
Monaco
Coach
Corporation
(541)
681-8029
craig.wanichek@monacocoach.com
MONACO
COACH
CORPORATION
CONDENSED
CONSOLIDATED
BALANCE
SHEETS
(Unaudited:
dollars
in
thousands)
December
31,
December
30,
2005
2006
ASSETS
Current
assets:
Cash
$586
$4,984
Trade
receivables,
net
102,666
81,588
Inventories
183,292
155,871
Resort
lot
inventory
9,135
7,997
Prepaid
expenses
4,364
5,624
Income
taxes
receivable
206
6,901
Deferred
income
taxes
36,345
38,038
Discontinued
operations
4,922
0
Total
current
assets
341,516
301,003
Property,
plant,
and
equipment,
net
159,304
153,895
Land
held
for
development
0
16,300
Debt
issuance
costs
net
of
accumulated
amortization
of
$678,
and
$912,
respectively
695
540
Goodwill
85,952
86,412
Total
assets
$587,467
$558,150
LIABILITIES
Current
liabilities:
Book
overdraft
$14,550
$16,626
Current
portion
of
long-term
debt
5,714
5,714
Line
of
credit
25,000
2,036
Accounts
payable
78,299
72,591
Product
liability
reserve
19,275
15,764
Product
warranty
reserve
32,902
33,804
Accrued
expenses
and
other
liabilities
37,732
44,364
Discontinued
operations
853
298
Total
current
liabilities
214,325
191,197
Long-term
debt,
less
current
portion
34,786
29,071
Deferred
income
taxes
21,624
21,678
Other
long-term
liabilities
0
883
Total
liabilities
270,735
242,829
STOCKHOLDERS'
EQUITY
Preferred
stock,
$.01
par
value;
1,934,783
shares
authorized,
no
shares
outstanding
Common
stock,
$.01
par
value;
50,000,000
shares
authorized,
29,561,766
and
29,769,356
issued
and
outstanding,
respectively
296
298
Additional
paid-in
capital
59,005
63,722
Retained
earnings
257,431
251,301
Total
stockholders'
equity
316,732
315,321
Total
liabilities
and
stockholders'
equity
$587,467
$558,150
MONACO
COACH
CORPORATION
CONDENSED
CONSOLIDATED
STATEMENTS
OF
INCOME
(Unaudited:
dollars
in
thousands,
except
share
and
per
share
data)
Quarter
Ended
Year
Ended
December
December
December
December
31,
30,
31,
30,
2005
2006
2005
2006
Net
sales
$305,960
$299,163
$1,236,238
$1,297,986
Cost
of
sales
274,692
272,092
1,111,468
1,173,443
Gross
profit
31,268
27,071
124,770
124,543
Selling,
general,
and
administrative
expenses
26,728
27,583
113,179
120,465
Plant
relocation
costs
538
0
4,370
269
Operating
income
(loss)
4,002
(512)
7,221
3,809
Other
income,
net
100
108
255
615
Interest
expense
(878)
(932)
(1,820)
(4,430)
Income
(loss)
before
income
taxes
and
discontinued
operations
3,224
(1,336)
5,656
(6)
Provision
for
(benefit
from)
income
taxes,
continuing
operations
1,229
(649)
1,687
(992)
Net
income
(loss)
from
continuing
operations
1,995
(687)
3,969
986
Income
(loss)
from
discontinued
operations,
net
of
tax
provision
(benefit)
538
125
(1,321)
18
Net
income
(loss)
$2,533
$(562)
$2,648
$1,004
Earnings
(loss)
per
common
share:
Basic
from
continuing
operations
$0.07
$(0.02)
$0.13
$0.03
Basic
from
discontinued
operations
0.02
0.00
(0.04)
0.00
Basic
$0.09
$(0.02)
$0.09
$0.03
Diluted
from
continuing
operations
$0.06
$(0.02)
$0.13
$0.03
Diluted
from
discontinued
operations
0.02
0.00
(0.04)
0.00
Diluted
$0.08
$(0.02)
$0.09
$0.03
Weighted
average
common
shares
outstanding:
Basic
29,559,553
29,760,969
29,516,794
29,712,957
Diluted
29,844,209
30,018,115
29,858,036
29,902,830
MONACO
COACH
CORPORATION
CONDENSED
CONSOLIDATED
STATEMENTS
OF
CASH
FLOWS
(Unaudited:
dollars
in
thousands)
Year
Ended
December
31,
December
30,
2005
2006
Increase
(Decrease)
in
Cash:
Cash
flows
from
operating
activities:
Net
income
from
continuing
operations
$2,648
$1,004
Adjustments
to
reconcile
net
income
to
net
cash
provided
by
operating
activities:
Loss
on
sale
of
assets
276
14
Depreciation
and
amortization
10,678
14,177
Stock-based
compensation
expense
16
2,759
Deferred
income
taxes
(2,943)
(1,900)
Changes
in
working
capital
accounts:
Trade
receivables,
net
39,203
21,078
Inventories
(2,916)
27,421
Resort
lot
inventory
145
1,138
Land
held
for
development
0
(16,300)
Prepaid
expenses
1,422
(1,270)
Accounts
payable
(5,947)
(5,708)
Product
liability
reserve
(1,619)
(3,689)
Product
warranty
reserve
(4,486)
902
Income
taxes
receivable
(2,293)
(6,664)
Deferred
revenue
0
883
Accrued
expenses
and
other
liabilities
805
7,151
Discontinued
operations
(662)
4,271
Net
cash
provided
by
operating
activities
34,327
45,267
Cash
flows
from
investing
activities:
Additions
to
property,
plant,
and
equipment
(17,718)
(9,324)
Payment
for
business
acquisition,
net
of
cash
acquired
(54,601)
0
Proceeds
from
sale
of
assets
123
215
Discontinued
operations
(4)
0
Net
cash
used
in
investing
activities
(72,200)
(9,109)
Cash
flows
from
financing
activities:
Book
overdraft
12,475
2,076
Payments
on
lines
of
credit,
net
(9,062)
(22,964)
Borrowings
(payments)
on
long-term
notes
payable
40,500
(5,715)
Debt
issuance
costs
(298)
(79)
Dividends
paid
(7,085)
(7,134)
Tax
benefit
of
stock
options
exercised
0
161
Issuance
of
common
stock
1,537
1,799
Discontinued
operations
392
96
Net
cash
provided
by
(used
in)
financing
activities
38,459
(31,760)
Net
change
in
cash
586
4,398
Cash
at
beginning
of
period
0
586
Cash
at
end
of
period
$586
$4,984
Monaco
Coach
Corporation
Segment
Reporting
(Unaudited:
dollars
in
thousands)
Results
of
Consolidated
Operations
Quarter
Quarter
Ended
Ended
December
31,
%
of
December
30,
%
of
2005
Sales
2006
Sales
Net
sales
$305,960
100.00%
$299,163
100.00%
Cost
of
sales
274,692
89.78%
272,092
90.95%
Gross
profit
31,268
10.22%
27,071
9.05%
Selling,
general
and
administrative
expenses
26,728
8.74%
27,583
9.22%
Plant
relocation
costs
538
0.18%
--
0.00%
Operating
income
(loss)
4,002
1.31%
(512)
-0.17%
Other
income
and
interest
expense
778
0.25%
824
0.28%
Income
(loss)
before
income
taxes
and
discontinued
operations
3,224
1.05%
(1,336)
-0.45%
Provision
for
(benefit
from)
income
taxes,
continuing
operations
1,229
0.40%
(649)
-0.22%
Net
income
(loss)
from
continuing
operations
1,995
0.65%
(687)
-0.23%
Income
(loss)
from
discontinued
operations,
net
of
tax
provision
538
0.18%
125
0.04%
Net
income
(loss)
$2,533
0.83%
$(562)
-0.19%
Year
Year
Ended
Ended
December
31,
%
of
December
30,
%
of
2005
Sales
2006
Sales
Net
sales
$1,236,238
100.00%
$1,297,986
100.00%
Cost
of
sales
1,111,468
89.91%
1,173,443
90.40%
Gross
profit
124,770
10.09%
124,543
9.60%
Selling,
general
and
administrative
expenses
113,179
9.16%
120,465
9.28%
Plant
relocation
costs
4,370
0.35%
269
0.02%
Operating
income
(loss)
7,221
0.58%
3,809
0.29%
Other
income
and
interest
expense
1,565
0.13%
3,815
0.29%
Income
(loss)
before
income
taxes
and
discontinued
operations
5,656
0.46%
(6)
0.00%
Provision
for
(benefit
from)
income
taxes,
continuing
operations
1,687
0.14%
(992)
-0.08%
Net
income
(loss)
from
continuing
operations
3,969
0.32%
986
0.08%
Income
(loss)
from
discontinued
operations,
net
of
tax
provision
(1,321)
-0.11%
18
0.00%
Net
income
(loss)
$2,648
0.21%
$1,004
0.08%
Motorized
Recreational
Vehicle
Segment
Quarter
Quarter
Ended
Ended
December
31,
%
of
December
30,
%
of
2005
Sales
2006
Sales
Net
sales
$221,942
100.00%
$240,929
100.00%
Cost
of
sales
200,693
90.43%
221,200
91.81%
Gross
profit
21,249
9.57%
19,729
8.19%
Selling,
general
and
administrative
expenses
9,816
4.42%
17,747
7.37%
Corporate
overhead
allocation
9,393
4.23%
2,013
0.84%
Plant
relocation
costs
538
0.24%
--
0.00%
Operating
income
(loss)
$1,502
0.68%
$(31)
-0.01%
Year
Year
Ended
Ended
December
31,
%
of
December
30,
%
of
2005
Sales
2006
Sales
Net
sales
$1,017,766
100.00%
$941,657
100.00%
Cost
of
sales
925,014
90.89%
869,110
92.30%
Gross
profit
92,752
9.11%
72,547
7.70%
Selling,
general
and
administrative
expenses
46,331
4.55%
44,306
4.71%
Corporate
overhead
allocation
43,148
4.24%
34,172
3.63%
Plant
relocation
costs
4,370
0.43%
269
0.03%
Operating
income
(loss)
$(1,097)
-0.11%
$(6,200)
-0.66%
Towable
Recreational
Vehicle
Segment
Quarter
Quarter
Ended
Ended
December
31,
%
of
December
30,
%
of
2005
Sales
2006
Sales
Net
sales
$76,680
100.00%
$50,250
100.00%
Cost
of
sales
70,937
92.51%
48,037
95.60%
Gross
profit
5,743
7.49%
2,213
4.40%
Selling,
general
and
administrative
expenses
1,763
2.30%
4,612
9.18%
Corporate
overhead
allocation
3,063
3.99%
495
0.99%
Operating
income
(loss)
$917
1.20%
$(2,894)
-5.76%
Year
Year
Ended
Ended
December
31,
%
of
December
30,
%
of
2005
Sales
2006
Sales
Net
sales
$185,433
100.00%
$324,342
100.00%
Cost
of
sales
174,242
93.96%
292,876
90.30%
Gross
profit
11,191
6.04%
31,466
9.70%
Selling,
general
and
administrative
expenses
5,603
3.02%
15,323
4.72%
Corporate
overhead
allocation
7,588
4.09%
14,737
4.54%
Operating
income
(loss)
$(2,000)
-1.08%
$1,406
0.43%
Motorhome
Resorts
Segment
Quarter
Quarter
Ended
Ended
December
31,
%
of
December
30,
%
of
2005
Sales
2006
Sales
Net
sales
$7,338
100.00%
$7,984
100.00%
Cost
of
sales
3,062
41.73%
2,855
35.76%
Gross
profit
4,276
58.27%
5,129
64.24%
Selling,
general
and
administrative
expenses
1,855
25.28%
2,438
30.54%
Corporate
overhead
allocation
838
11.42%
278
3.48%
Operating
income
$1,583
21.57%
$2,413
30.22%
Year
Year
Ended
Ended
December
31,
%
of
December
30,
%
of
2005
Sales
2006
Sales
Net
sales
$33,039
100.00%
$31,987
100.00%
Cost
of
sales
12,212
36.96%
11,457
35.82%
Gross
profit
20,827
63.04%
20,530
64.18%
Selling,
general
and
administrative
expenses
7,606
23.02%
8,236
25.75%
Corporate
overhead
allocation
2,903
8.79%
3,691
11.54%
Operating
income
$10,318
31.23%
$8,603
26.90%
