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Good Sam Posts Gains in 2Q Revenue, Income

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August 16, 2013 by   Leave a Comment

Good Sam Enterprises LLC reported revenues of $156.9 million for the second quarter, ending June 30, increased $10.6 million, or 7.2%, from the comparable period in 2012. Net income was $10.6 million for the second quarter compared to $7.2 million for the second quarter of 2012.

Membership Services revenues of $51.4 million for the second quarter of 2013 increased $4 million, or 8.5%, from the comparable period in 2012. This revenue increase was largely attributable to:

• A $3.7 million increase from the extended vehicle warranty programs due to an increase in average revenue per contract and increased contracts in force.

• A $1.4 million increase in revenue from the Good Sam Travel Assist program acquired in 2012.

• A $0.7 million increase from additional online advertising revenue in the annual directory.

• A $0.5 million increase from the roadside assistance programs primarily due to increased contracts in force.

• A $0.5 million increase in marketing fee revenue from the vehicle insurance products.

These gains were partially offset by a $1.9 million reduction from the outdoor powersports magazine group primarily due to the sale of its remaining magazine titles and shows to EPG Media LLC in March, 2013, and an $0.9 million revenue reduction resulting from merging the President’s Club into the Good Sam Club. EPG Media is controlled by Mark Adams, the son of the Chairman Stephen Adams.

Meanwhile, retail revenues for the second quarter grew 6.7% to $105.5 million from the comparable period in 2012. Store merchandise sales were up $8 million from the second quarter of 2012 due to a same store sales increase of $2.9 million, or 4.3%, and a $6 million increase from the opening of 19 new stores over the last 18 months, which were partially offset by a $0.9 million decrease in revenue from three discontinued stores that were closed in the last 18 months in order to consolidate operations within specific geographic areas.

Further, installation and service fees decreased $1.1 million, and catalog and Internet revenue decreased $0.3 million. 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.

Six-Months Overview 

For the six months, revenues of $270.9 million increased $14.5 million, or 5.7%, from the comparable period in 2012. Net income for the first six months of 2013 was $15 million versus $7.2 million for the first six months of 2012.

Membership Services revenues gained 3.6% to $99.9 million from the comparable period in 2012.

Retail revenues of $171.0 million for the first six months increased by $11 million, or 6.9%, from the comparable period in 2012. Store merchandise sales increased $13 million from the first six months of 2012 due to a same store sales increase of $4.6 million, or 4.2%, and a $10.4 million increase from the opening of 19 new stores over the last 18 months, which were partially offset by a $2.0 million decrease in revenue from three discontinued stores that were closed in the last 18 months in order to consolidate operations within specific geographic areas.

 

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