Lemonis Redefines Good Sam Enterprises’ Focus
The evolution of the company formerly known as Affinity Group Inc. (AGI) continues.
The name of the company was changed on May 2 to Good Sam Enterprises LLC, and today during a conference call to bondholders, CEO Marcus Lemonis offered the public a new description of the company.
He said the company could best be described as “a financial services company that has some clubs and magazines as marketing tools.”
“Roadside assistance is the No. 1 service offered by the company today. Roadside assistance has become the product of the day,” he explained.
Good Sam offers road assistance to nearly 500,000 RV, car and truck customers and is close to announcing major private label insurance programs with Flying J (400,000 in its database) and NASCAR (72 million fans nationwide) and is in negotiations on establishing similar programs with leading RV builders Thor Industries Inc. and Winnebago Industries Inc., Lemonis said.
In preparation for the expected membership increase, Good Sam previously announced it has hired senior industry executive Ed Thor as vice president of business development. Thor joins the company after serving for more than 10 years with Coach-Net, a roadside assistance company focused on serving the manufacturers and dealers.
The swing toward the financial services emphasis would be a major redirection for the company which had been best known in recent years for its magazines and club member services.
Lemonis was named CEO less than a year ago but since that time, the company has disposed of six or seven businesses (primarily magazines) deemed not in the core focus.
In its quarterly report filed on Thursday (Nov. 10), the company reported revenues of $128.6 million for the third quarter of 2011 increased by $4.0 million, or 3.2%, from the comparable period in 2010.
Net income in the third quarter of 2011 was $2.0 million compared to $1.8 million for the same period in 2010.
For the nine months, revenues were $362.3 million, an increase of $0.6 million, or 0.2%, from the comparable period in 2010. Net income during the nine-month period was $4.6 million compared to a net loss of $6.2 million for the same period in 2010.
“We feel very good where our business is at today,” Lemonis said.
He said getting the company’s sales, general and administrative costs down has been a primary focus this year. Approximately 100 employees were let go this year from the organization, and Lemonis anticipates no more than a dozen or 15 additional layoffs systemwide.
He noted that the company incurred in the third quarter health insurance costs totaling $600,000 above the third quarter in 2010.
The company also has incurred severance costs this year as well as costs associated with the businesses it sold, he added.
Lemonis concluded saying he would be visiting with investors in California and New York in the coming weeks to expand upon certain details contained in the company’s financial report.
The company intends to make a replay of the conference call available through Nov. 23. The replay may be accessed by logging onto: http://earningscall.goodsamfamily.com/3Qearningscall.mp3
Good Sam Enterprises LLC is the parent company of Woodall’s Campground Management and www.woodallscm.com.