Good Sam 2Q Yields Most Revenue Since 2008
Good Sam Enterprises LLC reported second quarter revenues of $146.3 million, a 13.4% increase over the second quarter of 2011, and the highest quarter since 2008, according to a news release.
Retail revenues grew 19.7%, through a 9.6% increase in same store sales along with opening 13 new retail stores over the last 18 months. Membership revenues grew 6.9%, primarily due to contract price increases within the extended vehicle warranty program, an increase in emergency road service revenue of 7.3% due to a 10% growth in contracts in force, and the additional Good Sam Rally this quarter which took place in Louisville, Ky.
Media revenues were down 23.7% for the quarter from the prior year. Two-thirds of the media revenue reduction was attributable to the disposition of negative or low margin non-core businesses sold or closed and the remainder was primarily due to lower advertising revenue. The company sold Woodall’s Campground Management at the end of the quarter.
The report does not include revenue from the company’s Camping World rolling stock stores.
According to the release, “Income from operations for the second quarter of 2012 will be above second quarter 2011 results but will be mitigated in comparison to the increase in revenue primarily attributable to increased marketing expenses directed at creating overall brand awareness and growing the file size of the Good Sam Club branded products and services.”