Good Sam Enterprises Reports Mixed Q2 Results
Good Sam Enterprises LLC reported financials for the company’s second quarter ended June 30.
According to SEC documents, net income in the second quarter was $5.2 million compared to $1.7 million for the same period in 2010 mainly. Revenues totaled $129.1 million in the quarter, representing a $2 million, or 1.5%, decrease from the same period in 2010.
A summary of the report, courtesy of RVBUSINESS.com, follows.
Income from operations for the quarter totaled $15.5 million compared to $11.6 million for the second quarter of 2010. This increase of $3.9 million was primarily the result of the following favorable changes in the second quarter of 2011 compared to the second quarter of 2010:
- A $3.2 million reduction in operating expenses for the second quarter of 2011.
- An increase in gross profit for the Membership Services segment of $1.6 million.
- Reduced financing expense of $200,000 for the second quarter of 2011, that were only partially offset by a decrease in gross profit for the Media and Retail segment of $1 million and $100,000, respectively.
Membership Services revenues of $39.1 million for the second quarter of 2011 increased $400,000, or 1.1%, from the comparable period in 2010. This revenue increase was largely attributable to:
- $900,000 of license fees received from FreedomRoads Holding LLC.
- A $900,000 increase in extended vehicle warranty program revenue due to a contract price increase.
- A $400,000 increase in membership services revenue primarily attributable to increased advertising revenue in the President’s Club publication, partially offset by a $600,000 decrease in vehicle insurance program marketing fee revenue, a $500,000 reduction in dealer program marketing revenue, a $400,000 decrease in marketing fee revenue from health and life insurance products, and a $300,000 reduction in emergency road service revenue.
Media revenues of $7.4 million for the second quarter of 2011 decreased $600,000, or 7.9%, from the comparable period in 2010. This decrease was primarily attributable to the sale of three non-core publications in the second quarter and deferral of an RV title to the third quarter.
Retail revenues of $82.7 million for the second quarter of 2011 decreased by $1.8 million, or 2.1%, from the comparable period in 2010. Store merchandise sales decreased $2.7 million from the second quarter of 2010 due to a same store sales decrease of $2.7 million, or 4.3%, compared to a 5.3% increase in same store sales for the second quarter of 2010, and decreased revenue from discontinued stores of $600,000, were partially offset by a $600,000 increase due to the opening of four new stores over the last eighteen months.
Two stores were closed in the last 18 months in order to reduce fixed operating costs and to consolidate operations within the respective trade areas. 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 $700,000, supplies and other revenue increased $500,000, and installation and service fees decreased $300,000.
Good Sam Enterprises LLC is based in Lincolnshire, Ill., with major offices in Ventura, Calif., and Bowling Green, Ky. It is the parent company of Woodall's Campground Management and WOODALLSCM.com.
To read the SEC report, click here.