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Good Sam Reports Higher 2Q Profits, Revenue

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August 14, 2012 by   Comments Off on Good Sam Reports Higher 2Q Profits, Revenue

Good Sam Enterprises LLC today (Aug. 14) reported second quarter revenues of $146.3 million, a 13.4% increase over the second quarter of 2011, and the highest quarter since 2008. Net income for the second quarter was $7.2 million, an increase of 38.3% over the previous year.

For the six months, Good Sam reported revenues of $256.4 million, an increase of $22.7 million, or 9.7%, from the comparable period in 2011. Net income for the first six months of 2012 was $7.2 million compared to $2.6 million for the same period in 2011.

Totals do not reflect sales and earnings from the company’s rolling stock operations.

A segment breakdown for the second quarter showed:

• Membership Services revenues of $41.8 million for the second quarter of 2012 increased $2.7 million, or 6.9%, from the comparable period in 2011. This revenue increase was largely attributable to a $1.3 million increase in extended vehicle warranty program revenue due to contract price increases, a $1.1 million increase in member events revenue due to an additional Good Sam rally, and a $0.7 million increase in emergency road service revenue. Membership Services segment profit of $14.7 million for the second quarter of 2012 decreased $0.3 million, or 2.3%, from the comparable period in 2011. This decrease was attributable to an $0.8 million increase in expenses to promote the Good Sam brand, an $0.8 million reduction in segment profit for vehicle insurance products, and a $0.6 million reduction in segment profit for emergency road service products primarily due to increased marketing and claims costs.

• Media revenues of $5.6 million for the second quarter of 2012 decreased $1.7 million, or 23.7%, from the comparable period in 2011. This decrease was primarily attributable to a $1.1 million revenue reduction resulting from the sale or closure of non-core media businesses in 2011, and a $0.6 million reduction in magazine revenue. Media segment profit of $0.6 million for the second quarter of 2012 increased by $1.2 million from the comparable period in 2011 due to a $0.5 million incremental gain on sale of media businesses, $0.3 million of cost savings from the sale or closure of non-core media businesses in 2011, a $0.2 million increase in segment profit for consumer shows operations, and a $0.2 million increase in segment profit for the annual directories.

• Retail revenues of $98.9 million for the second quarter of 2012 increased by $16.3 million, or 19.7%, from the comparable period in 2011. Store merchandise sales increased $9.9 million from the second quarter of 2011 due to a same store sales increase of $5.8 million, or 9.6%, compared to a 4.3% decrease for the second quarter of 2011, and a $4.8 million increase due to the opening of 13 new stores over the last 18 months, which were partially offset by decreased revenue from discontinued stores of $0.7 million. Two stores were closed in the last 18 months in order to consolidate operations within specific geographic areas. Retail segment profit of $5.6 million for the second quarter of 2012 increased by $0.1 million, or 1.8% from the comparable period in 2011 due to a $4.2 million increase in gross profit, and a $0.5 million reduction in depreciation and amortization expense, partially offset by a $4.5 million increase in selling, general and administrative expenses and a $0.1 million increase in net interest expense.

To view the entire report click here.

 

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