Good Sam Enterprises LLC reported a 5.3% increase in sales for its first quarter, ended March 31, while posting a profit versus a net loss in the previous year.
Revenues totaled $110.1 million for the first quarter, an increase of $5.5 million from the comparable period in 2011. Net income was $4,000 compared to a loss of $2.6 million. The Good Sam report does not include results from its Camping World subsidiary’s rolling stock sales.
Revenue performance among the various sectors included:
• Membership Services revenues of $37.2 million for the first quarter of 2012 increased $2 million, or 5.6%, from the comparable period in 2011. This revenue increase was largely attributable to a $1.6 million increase in member events revenue due to the timing of the Good Sam Club annual rally, which occurred in the first quarter of 2012 versus the third quarter of 2011, an $0.8 million increase in extended vehicle warranty program revenue due to contract price increases, a $0.3 million increase in marketing fee revenue from RV financing, and a $0.2 million increase in emergency road service revenue, partially offset by a $0.6 million decrease in advertising revenue from RV View magazine, which was replaced with Highways magazine in 2011, and a $0.3 million decrease in Coast to Coast and Golf Card Club revenue due to decreased membership and the sale of the Golf Card Club in March 2012.
• Media revenues of $11.8 million for the first quarter of 2012 decreased $3.6 million, or 23.2%, from the comparable period in 2011. This decrease was primarily attributable to a $2.2 million revenue reduction resulting from the sale or closure of non-core media businesses in 2011, a $0.7 million reduction in annual directory revenues due to reduced marketing and phasing out the cd-rom version, a $0.3 million reduction in consumer show revenue, and a $0.4 million reduction in magazine revenue.
• Retail revenues of $61.0 million for the first quarter of 2012 increased by $7.1 million, or 13.2%, from the comparable period in 2011. Store merchandise sales increased $4.7 million from the first quarter of 2011 due to a same store sales increase of $3.7 million, or 9.3%, compared to a 1.4% decrease for the first quarter of 2011, and a $1.4 million increase due to the opening of ten new stores over the last fifteen months, which were partially offset by decreased revenue from discontinued stores of $0.4 million. One store was closed in the last fifteen months in order to consolidate operations within that area. Same store sale calculations for a given period include only those stores that were open both at the end of that period and at the beginning of the preceding fiscal year. Also, mail order and Internet sales increased $3.2 million, installation and service fees decreased $0.5 million, and supplies and other revenue decreased $0.3 million.
Earnings per segment showed:
• Membership services segment profit of $16.0 million for the first quarter of 2012 increased $1.9 million, or 13.4%, from the comparable period in 2011. This increase was attributable to a $0.7 million increase in segment profit from the Good Sam Club primarily due to cost savings resulting from the combination of the President’s Club and the Good Sam Club on January 1, 2012, a $0.7 million increase from Camp Club USA, a $0.5 million gain on sale of Golf Card Club, a $0.3 million improvement in Coast to Coast Club, and a $0.3 million increase from RV financing, partially offset by a decrease in segment profit of $0.6 million from member events.
• Media segment profit of $1.8 million for the first quarter of 2012 increased by $0.1 million, or 3.7%, from the comparable period in 2011 due to $0.4 million of cost savings from the sale or closure of non-core media businesses in 2011, and a $0.3 million increase from the annual directories, partially offset by a reduction in segment profit of $0.6 million from our magazines.
• Retail segment loss of $2.9 million for the first quarter of 2012 favorably decreased $0.4 million from a segment loss of $3.3 million for the first quarter of 2011. This reduction in segment loss resulted from a $1.5 million increase in gross profit and a $0.3 million reduction in depreciation expense partially offset by a $1.4 million increase in selling, general and administrative expenses.
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