The upturn in wholesale and retail sales of RVs has carried over to the service side with Good Sam Enterprises LLC reporting surges in a number of company metrics.
During an investors’ conference call today (May 16) that followed up Good Sam’s first quarter results announced on Tuesday, Chairman and CEO Marcus Lemonis said the company is seeing upticks from sales of roadside assistance and membership in the Good Sam Club right through to registrations for the upcoming Good Sam Rally in Syracuse, N.Y.
Good Sam reported revenues for the quarter, ending March 31, totaled $114 million, up 3.6% from a year earlier. Lemonis said the positive gains were a reflection of the public’s overall acceptance of Good Sam’s products and services.
Among the improvements:
• Sales from all Camping World stores rose 8.4%, with same-store sales up 4%.
• Retail transaction counts rose 7%.
• Good Sam Club memberships grew by 6.8%.
Perhaps the most surprising positive development came in the firm’s RV rally sector. Lemonis reported that advance reservations for the Syracuse Camping World/Good Sam Rally June 13-16 at the New York State Fairgrounds has already outpaced the company’s best rally in the past five years with “a shocking number of reservations.”
The figures are shocking in part because Good Sam “significantly” raised the cost of vendor booth space, but has not felt the downward pressure in bookings he expected, Lemonis said. It will be the company’s first RV rally in the Northeast.
Lemonis called the rally business “a form of advertising that should pay for itself and not cost us $400,000, which it cost us last year.” The final rally for 2013 is Oct. 17-20 in Atlanta.
On a year-over-year basis, Lemonis noted further growth metrics:
• Roadside assistance policies grew to 427,350 compared to 368,439 a year ago with a renewal rate of 91%. Lemonis hopes to hit the 500,000 mark within the next year.
• Extended warranty policyholders totaled 51,829 compared to 49,700 a year ago.
• Good Sam Club membership now stands at 1,357,110, compared to 1,274,079 a year ago.
Lemonis further noted that Good Sam opened three Camping World stores in the quarter, with eight others scheduled for the remainder of the year, bringing the total by year-end to 104. The company will reach the $7.8 million cap on capital expenditures mandated by its indenture agreement, but the Good Sam corporate owner has pledged another $2 million to $2.5 million to make up the difference to fund the expansion effort, Lemonis said.
Lemonis revealed a few disappointing results. One of them, a branding effort with NASCAR, is off to “a slow start” and Lemonis took the blame for the slow pace giving himself a grade of “C-minus” thus far.
He also said Good Sam is tweaking the fuel purchase program in tandem with Flying J. Almost 90,000 customers have signed on with “a nice uptick in retention” but the requirement for a separate card has been seen as a drawback. Good Sam plans to modify its Good Sam membership cards with a magnetic strip so members won’t have to carry an additional card, he said.
Good Sam Enterprises LLC reported improved sales and earnings results for the first quarter, ended March 31.
Revenue totaled $114 million for the period, representing an increase of $3.9 million, or 3.6%, from the comparable period in 2012. Net income in the quarter was $4.4 million versus $0 for the first quarter of 2012. Good Sam’s financials do not reflect rolling stock sales from the company’s Camping World Inc. unit.
A breakdown by segment showed:
• Membership services, which now include Good Sam’s media segment, posted revenue of $48.5 million for the first quarter of 2013, a decrease of $0.5 million, or 1.1%, from the comparable period in 2012. This revenue decrease was largely attributable to a $2 million decline in member events revenue due to the timing of the company’s first annual member rally that occurred in the first quarter of 2012 and is scheduled to occur in the second quarter of 2013. There was also a $1.1 million reduction resulting from 10 fewer issues published and four fewer shows produced primarily resulting from the sale of the outdoor powersports magazine titles and shows to EPG Media LLC that occurred in March 2013, and a $0.2 million revenue reduction from other ancillary products. EPG Media, LLC is controlled by Mark Adams, the son of the Chairman Stephen Adams. These decreases were partially offset by a $2.3 million revenue increase from the extended vehicle warranty programs due to an increase in average revenue per contract and increased contracts in force, and a $0.5 million increase from the roadside assistance programs primarily due to increased contracts in force.
• Retail revenues of $65.5 million for the first quarter of 2013 increased by $4.5 million, or 7.3%, from the comparable period in 2012. Store merchandise sales increased $5 million from the first quarter of 2012 due to a same store sales increase of $1.7 million, or 4.0%, and a $4.4 million increase from the opening of 17 new stores over the last 15 months, which were partially offset by decreased revenue from discontinued stores of $1.1 million. Five stores were closed in the last fifteen months in order to consolidate operations within specific geographic areas. Mail order and internet sales increased $0.2 million, supplies and other revenue increased $0.4 million, and installation and service fees decreased $1.1 million.
Selling, general and administrative expenses of $30.9 million for the first quarter of 2013 decreased $0.2 million compared to the first quarter of 2012. This decrease was primarily due to reduction of legal and club branding expenses of $0.5 million, reduced facility expenses of $0.3 million and other reductions of $0.1 million, partially offset by a $0.7 million increase in retail selling, general and administrative expenses, mainly related to increased labor.
Income from operations for the first quarter of 2013 totaled $12.2 million compared to approximately $10.1 million for the first quarter of 2012. This increase of $2.1 million was primarily the result of an increase in gross profit for the Retail and Membership Services segments of $0.9 million and $0.7 million, respectively, and a $0.5 million decrease in operating expenses for the first quarter of 2013.
To view the entire report click here.
Camping World Inc. received 47 awards at the recent Winnebago Industries Inc. Dealer Days Event in Las Vegas, including the award for “Top Multi-Location Winnebago Retailer” for 2012.
According to a press release, Camping World also secured its position as the largest Winnebago retailer with over $175 million in Winnebago Industries sales for 2012. Currently Camping World accounts for an estimated 28% of all Winnebago Industries new motorized unit sales.
Camping World was also recognized for receiving 26 Circle of Excellence awards, four Partners in Excellence Awards for top market share in their respective regions, 15 Top Rank Sales Awards, and the New Dealer of the Year Award for Camping World RV of Lake City, Fla.
“We are pleased to again be recognized as Winnebago’s ‘Top Retailer of the Year’ in addition to recently accepting multiple top achievement awards from Winnebago,” said Marcus Lemonis, chairman and CEO of Camping World. “We are thrilled that Camping World RV dealers made an important contribution in Winnebago’s business growth and we look forward to continued success with this partnership throughout the ongoing year.”
“Being awarded and recognized by Winnebago in so many categories is exceptional,” said Roger Nuttall, president of Camping World RV Sales. “We value our partnership with Winnebago Industries and remain committed to the highest levels of customer satisfaction in every level of our business.”
Building on its commitment to provide maximum value and savings to its members, Good Sam, the world’s leading provider of products and services for the RV and outdoor recreation consumer, today (April 15) announced it will launch a new auto buying program to provide their more than 1 million members with pre-arranged savings on the purchase of autos, as well as on boats, ATVs and other powersports vehicles.
With Good Sam Club members able to save thousands on purchases, the auto buying service is already attracting attention, even though it launches in July, according to a news release.
“Our focus is simply for our Good Sam members to have a great, seamless buying experience,” said Marcus Lemonis, chairman and CEO of Good Sam and Camping World. “With the Good Sam Auto Buying Service our members will receive value and top-notch service on their purchase of a vehicle that would complement their RV lifestyle whether it is a new car, truck, van, sport utility, motorcycle, boat or ATV.”
Featuring up-front, hassle-free, pre-arranged pricing on many makes and models of autos, boats, and powersport vehicles, the Good Sam Auto Buying Service is unmatched in the industry. “No other camping or outdoor organization offers anything close,” said Lemonis, “We continue to provide Good Sam Members with serious savings — while they RV and throughout all aspects of their life. We will be adding more and more savings programs for our members.”
Building on relationships with more than 2,000 dealerships representing leading brands from Ford to Jeep, Toyota to Mercedes and many more, the Good Sam Auto Buying Service will offer members the ability to configure the exact vehicle they are interested in and to enjoy pre-arranged, discounted prices — with no negotiations needed. All prices are guaranteed and club members will work directly with dedicated, specially trained, dealer staff to complete their vehicle purchases. The program provides more than just lower prices and hassle free buying experiences, it includes the best customer service, all backed by Good Sam.
“The Good Sam Club is built upon helping people, and helping people save money is something we take seriously,” said Lemonis. “Members already save millions of dollars every year at campgrounds, at Camping World and at Pilot Flying J. Now, they will save even more at car, boat and powersports dealerships across the country. Our Auto Buying Service lets members focus on the excitement of their vehicle purchases, while saving thousands of dollars. We have pledged to bring maximum value to our members and we are delivering on that promise, again.”
With the service set to launch on July 1, Good Sam has already received such a high level of interest that they are offering Club members the ability to sign up on www.goodsamclub.com/autobuying to be notified as soon as the program is ready.
The Good Sam Buying Service will also help members choose the specific vehicle that is best for them. With side-by-side comparisons and thousands of pages of descriptions, photos and specifications, the Service provides a one-stop location to manage the entire vehicle research and purchase experience — all with pre-arranged discounted pricing.
About Good Sam Enterprises LLC
Good Sam Enterprises LLC and its wholly owned subsidiaries is the world’s largest provider of products and services that enhance the RV and outdoor recreation consumer experience. Our products provide savings, safety, security, comfort, and convenience, making RV ownership and the outdoor lifestyle more enjoyable. GSE corporate headquarters are located in Lincolnshire, Ill., with subsidiary operations and divisions located in multiple locations throughout the United States.
Camping World Inc. and Good Sam Enterprises LLC announced the signing of an agreement to acquire Holiday on Wheels, an existing RV dealership in Panama City, Fla., in the next 90 to 120 days with an official grand opening a few months later.
According to a news release, plans are for the location to undergo expansion to renovate into larger facility including additional service bays, a new Camping World retail store and a state-of-the-art collision center.
“We are pleased to begin the acquisition of Holiday on Wheels and expand our market share throughout Florida,” said Marcus Lemonis, chairman and CEO of Camping World and Good Sam. “We are no stranger to the state of Florida and with all the activities Panama City offers — shopping, boating, hiking, fishing, state parks, and so much more, bringing a full-service RV supercenter to better serve the RV industry makes sense and completes our presence in the Panhandle.”
The new location will be officially named Camping World of Panama City and represents the third Camping World RV supercenter in the Panhandle, with nearby locations in Tallahassee and Gulf Breeze.
“We expect the Panama City market along with its close proximity to the major tourist areas of Destin and Fort Walton to allow us to broaden our customer reach, build upon our market leadership position in recreational sales, and make Camping World the leading retailer in the growing outdoor market,” continued Lemonis.
The new outlet will add to Camping World’s future growth plans and the company expects to soon announce several additional markets of expansion throughout the country. The company will also be adding new positions for seasoned and professional RV sales associates, technicians and retail support to join current employees at the Holiday on Wheels location as the facility expands.
Camping World Inc. and Good Sam Enterprises LLC announced the signing of an agreement to acquire American RV, an existing RV dealership in Olive Branch, Miss., in the next 60 to 90 days.
According to a news release, plans are for the location to undergo expansion to renovate into larger facility including additional service bays, a new Camping World retail store and a state-of-the-art collision center. The company has nearby RV supercenters in the Little Rock, Nashville and Calera markets and a total of seven stores in the greater regional area. American RV is owned by Peter Albano, who previously served as Convention/Expo Chairman for the Recreation Vehicle Dealers Association (RVDA).
“We are pleased to begin the acquisition of American RV and expand our market share throughout Mississippi as well as nearby Alabama, Arkansas and Tennessee,” said Marcus Lemonis, chairman and CEO of Camping World and Good Sam. “We expect the greater Memphis market to allow us to broaden our customer reach, build upon our market leadership position in recreational sales, and make Camping World the leading retailer in the growing outdoor market.”
Lemonis continued, “Our goal is to add more quality manufacturers and brands, increase our presence in the market, and grow the work force. The greater Memphis area is perfect for outdoor enthusiasts to fish, hike, camp, and swim and just enjoy life. We are excited to begin serving this market. “
The new location, officially named Camping World of Memphis, is the first full-service location in Mississippi for the company. However, Camping World, Lemonis and his family have long-standing ties to the nearby Memphis area with its continuous support of the St. Jude Children’s Research Hospital, which provides pioneering work in finding cures and saving children with cancer and other catastrophic diseases.
The new outlet will add to Camping World’s future growth plans and the company expects to soon announce several additional markets of expansion throughout the country. The company will also be adding new positions for seasoned and professional RV sales associates, technicians and retail support to join current employees at the American RV location as the facility expands.
Lincolnshire, Ill.-based Camping World RV Sales today (March 20) reported 2012 revenue on rolling stock sales of $1.48 billion, a 28.8% increase over 2011.
According to a news release, income from operations for the year totaled $67.4 million, an increase of 74% over 2011 results.
The company noted that the results do not include revenue or income from operations of the company’s affiliate Good Sam Enterprises LLC.
An employee of Camping World Inc. and Good Sam Enterprises LLC was declared the winner on “the Biggest Loser: Challenge America,” the NBC reality weight-loss competition currently in its 14th season. According to a press release, Danni Allen, a 26-year-old advertising coordinator from Wheeling, Ill., lost 121 pounds while competing on the show.
“From Day 1, I did not know this was in me,” she said. “I was a scared, self-conscious person. I did not know I could be here. I did not know I could get past the first workout. I didn’t know that my dreams were possible and I finally feel like my dreams come true… I feel amazing.”
When she started on the show, Allen weighed 258 pounds. She finished at 137 pounds and lost 46.9% of her starting body weight by eating healthy and plenty of daily exercise.
Besides taking the “Biggest Loser” crown, Allen took home the $250,000 cash prize.
“As a company we are pleased to share in Danni’s achievements in reaching her health and fitness goals,” said Marcus Lemonis, chairman and CEO of Camping World and Good Sam. “She is a shining example of corporate wellness and the entire company and the RV industry was rooting for her from the beginning.”
Camping World Inc. and Good Sam Enterprises LLC today (March 14) announced the signing of an agreement to acquire Camper Coaches, an existing RV dealership in Lubbock, Texas, in the next 30 to 60 days. According to a press release, plans are for the location to undergo expansion to renovate into a larger facility including additional service bays, a new Camping World retail store and a state of the art collision center.
“We are pleased to begin the acquisition of Camper Coaches and expand our market share throughout Texas as well as nearby New Mexico and Oklahoma,” said Marcus Lemonis, chairman and CEO of Camping World and Good Sam. “We expect the Lubbock market to allow us to broaden our customer reach, build upon our market leadership position in recreational sales, and make Camping World the leading retailer in the growing outdoor market.”
He added, “I always look for three things – people, process and product – in relation to enhancing our Camping World and Good Sam presence. Our goal is to add more quality manufacturers and brands, increase our presence in the market, and grow the work force.”
Camping World of Lubbock, with easy access off Interstate 27, will offer a wide array of RV sales, service, collision, parts and accessories for the outdoor enthusiast. It represents the fourth full-service location in Texas for Camping World along with outlets in the San Antonio, El Paso and Houston markets as well as two stand-alone retail stores in the state.
Lemonis said the new supercenter will add to Camping World’s future growth plans and the company expects to soon announce several additional markets of expansion in the state of Texas. Camping World of Lubbock will also be creating additional positions for seasoned and professional RV sales associates, technicians and retail support as the facility expands, joining the current employees at the Camper Coaches location.
Camping World Inc. (CWI) and Good Sam Enterprises LLC today (March 13) announced the signing of an agreement to acquire Nationwide RV, an existing RV dealership in Grain Valley, Mo., in the next 30 to 60 days.
According to a news release, plans are for the location to undergo expansion including adding additional service bays, a new Camping World retail store and a state-of-the-art collision center.
“The acquisition of the Kansas City location is a perfect strategic fit for us in terms of the location being contiguous to our existing business as well as allowing for expansion and broadening our market share throughout Missouri as well as nearby Kansas and Iowa,” said Marcus Lemonis, chairman and CEO of Camping World and Good Sam. “I always look for three things – people, process and product – in relation to enhancing our Camping World and Good Sam presence. Our focus is to increase our representation to existing and prospective RV owners and expand our service and product offering.”
Camping World of Kansas City represents the third location in Missouri for the national chain. The company has a supercenter in the Springfield market and recently announced the opening of a new location in Columbia in May.
Offering easy access off of Interstate 70, Camping World of Kansas City will carry a wide array of RV sales, service, collision, parts and accessories for the outdoor enthusiast while showcasing motorhomes and towables from the industry’s leading manufacturers. On the accessory side, the new location will feature new and innovative products including interactive displays and customer experiences from the top vendors.
Camping World said it expects the new supercenter to be one of its best and is pleased to have the current employees at the Nationwide RV location join the Camping World staff. The location will also be adding additional positions for seasoned and professional RV sales associates, technicians and retail support.
The company is also set to soon announce acquisition of additional RV dealerships across the country. Camping World said its goal is to add more quality manufacturers and brands, increase their presence in the market and grow the work force.