INDUSTRY NEWS
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AFFINITY GROUP TO ACQUIRE CAMPING WORLD Officials for Affinity Group, Inc., and Camping World, Inc., today announced an agreement to combine their organizations and enter into a business partnership. Affinity Group is a membership management and publishing company which serves as parent company to TL Enterprises, The Good Sam Club, Woodall's Publications, Coast to Coast, and others. Camping World is the world's largest retailer of recreation vehicle (RV) supplies and accessories. Marketing to common audiences within the RV industry, both companies expect this formal alliance to realize great synergies in delivering timely information and quality products and services to their customers. Working together is not a new concept for these organizations. Over the past 25 years Affinity Group and Camping World have teamed up in partnership programs with RV manufacturers, dealers and campgrounds, and this will continue. "Through our many shared projects we developed a tremendous respect for Camping World's leadership and company philosophy," said Affinity Group President and CEO Joe McAdams. "As we reviewed those joint successes, it was a natural evolution for us to combine our resources. Adding Camping World's catalog and store customers to our distribution base of more than 2 million members and readers allows us to communicate with more people, enhance benefits to our clubs and lower costs. Our goal is simple - - to increase the quality of the RV experience for everyone involved." Camping World, with its catalog operation and 27 retail locations nationwide, will operate autonomously, as do Affinity Group's other partner companies. "We're bringing together the best of both worlds," said Camping World President Thomas A. "Tad" Donnelly. "Camping World will continue to fulfill its own objectives. But, together with Affinity Group, we can also generate greater awareness for the RV industry, its manufacturers, dealers and campgrounds. It's definitely a relationship formed on a solid history to build an even greater future." Although specific plans are not available at this time, the combined organization will be developing and moving forward on various projects to enhance customer benefits and enjoyment of the RV experience. New RVIA Executive Committee Appointed Claire Skinner, president of the Coachmen RV Company and vice chairman of Coachmen Industries, was appointed to Recreation Vehicle Industry Association's (RVIA) 1997 Executive Committee, and several Executive Committee members were assigned to new positions, in action taken by the RVIA board at its March 9 meeting in Scottsdale, AZ. In addition, Bruce Hertzke, president and chief operating officer of Winnebago Industries, and Terry Decio, senior executive vice president of marketing and sales at Skyline Corp. were appointed to the RVIA board. RVIA's Executive Committee is now composed of RVIA Chairman Kelly Rose, chairman of Starcraft Automotive; First Vice Chairman Wilbur Bontrager, chairman of Jayco, Inc.; Second Vice Chairman Walt Bennett, senior vice president and chief accounting officer of Thor Industries; Treasurer Carl Pfalzgraf, vice president of sales and marketing of Atwood Mobile Products; Secretary Claire Skinner; Immediate Past Chairman Mike Larime, vice president and chief operating officer of Thetford Corp.; and RVIA President Dave Humphreys. Skinner's appointment and changes in the association's officers were necessitated by Bill Prinz's departure from the RVIA Executive Committee. Prinz stepped down from the RVIA Board and the organization's chairmanship after accepting a position with Jayco because Wilbur Bontrager already represents the company. RVIA Bylaws preclude employees from the same company serving on the RVIA board simultaneously, Terry Decio will fill the Towable seat on the RVIA
board vacated by Prinz. Bruce Hertzke replaces National
RV's Lew Howard, who resigned his post after his company
purchased Country Coach, as a Motorhome representative.
Country Coach's Bob Lee also serves on the RVIA board and
will retain his seat. RVDA Board Approves Product And Service Sponsorship Program The Recreation Vehicle Dealers Association of America (RVDA) board of directors has approved a new product and service sponsorship program that enhances the association's ability to serve its retail and associate members. The board adopted the program in March. The launch of the sponsorship program means that RVDA, its for-profit subsidiary Recreation Vehicle Assistance Corp. (RVAC), and The RVDA Education Foundation, the association's charitable 501(C)(3) organization, will have a formal process to recognize quality products and services that will benefit RV retailers. RVDA board member John Mancinelli, chairman of the
association's Member Programs and Services Committee
which developed the sponsorship program, said "RVDA
views sponsorship as one method of deepening its
commitment to members. It is especially important that
RVDA recommend only products and services which closely
address the needs of its retail members." KOA's Peterson Elected Chairman of National Recreation Policy Forum President and CEO Art Peterson has been elected chairman of the Recreation Roundtable, according to Kent Zimmerman, senior vice president, Kampgrounds of America (KOA). Formed in 1989, the Recreation Roundtable serves as a
catalyst for partnership actions that enhance recreation
opportunities in America and provides a forum for
discussion and action on recreation-related public
policies. Federal Appeals Court In California Upholds RV Show Restrictions The Ninth Circuit Court of Appeals ruled in January that California RV show restrictions are legal and binding. The ruling is a victory for CalRVDA dealer members who first introduced the bill in January 1995. Ever since the bill has been in effect, it has been enforced by the Department of Motor Vehicles despite being challenged in court. Among some of the provisions, the law limits off-site
sales to shows which are 50 miles or less from the
dealership unless 10 or more dealers are participating.
It also requires a dealer to obtain a manufacturer's
written authorization prior to being approved by the DMV
to participate in the show. Deutsche Financial Sets $48 Million Credit Line for Lazy Days Deutsche Financial Services Corporation (DFS) has extended a $48 million credit line to Lazy Days RV SuperCenter of Seffner (Tampa), FL. The floorplan financing arrangement, which is one of the largest ever issued by DFS to an RV dealer, is designed to provide Lazy Days with the financing needed to expand their business, according to Deutsche Financial Services regional vice president, W. Robert Mincey. Lazy Days' owner, Don Wallace, said since DFS began
providing financing for his company, Lazy Days' sales
have increased from about $15 million in 1981 to an
anticipated $200 million in 1997. Coachmen Industries Inc Agrees to Buy New England Homes Coachmen Industries, Inc., has agreed in principle to buy New England Homes . Coachmen said owner Daniel Donahue will continue as president of New England Homes, which is a Greenland, NH based builder of modular homes. Terms were not disclosed. New England Homes will remain a separate entity under
the Coachmen Housing Group, which also includes the All
American housing operations in Indiana, Iowa, North
Carolina and Tennessee. Coast Posts Fourth Quarter Results The Coast Distribution System (NASDAQ: CRV) reported financial results for the fourth quarter and year ended December 31, 1996. Revenue for the fourth quarter ended December 31, 1996 totaled $22.2 million, as compared to $24.9 million for the fourth quarter of 1995. The company reported a net loss for the fourth quarter of 1996 of $1.6 million, or ($0.30) per share, versus a net loss of $0.9 million, or ($0.17) per share, in the comparable 1995 quarter. Revenue for the year ended December 31, 1996 totaled $139.3 million, versus $169.6 million for the comparable period of the prior year. Net loss for full year 1996 was $0.1 million, or ($0.03) per share, versus net income of $3.3 million, or $0.64 per share, for the same period in 1995. Tim McGuire, chairman and CEO, said, "In early 1996, Coast lost a key supplier which represented 24% of the company's sales in 1995. Since that time, we have made significant strides to recapture that portion of the business by securing distribution agreements with manufacturers of competing lines. We also made progress toward transitioning a large portion of our product mix to proprietary brands and exclusive suppliers. Proprietary products represented 23% of total sales in 1996 as compared to 15% of total sales in 1995. Offsetting these gains were the higher than usual sales expenses related to the increased marketing effort on our proprietary products. "We remain confident in our strategy of
transitioning toward proprietary products and exclusive
distributor arrangements and believe the company will
emerge fundamentally stronger and well positioned for
positive sales and earnings growth in 1997 and
beyond." Connecticut and New York Propose Lemon Law Changes Affecting RVs Connecticut became the first state to place motorhomes under the state lemon law back in 1982. Now it is trying to become the first state to place trailers under the law. Legislation is now being considered which would extend the coverage of the law to protect purchasers of trailers having a value of at least $5,000. In addition, New York may require RV manufacturers to
repurchase or replace, at the owner's option, lemon
motorhomes even if the problem concerns the chassis. The
point in which the vehicle is considered a lemon is when
a vehicle is deemed inoperable due to failure of parts
under warranty which are unavailable. This bill has been
introduced in the past but has never succeeded. Manchester Moves to Covington Facility Manchester Tank & Equipment, Co., recently held a
grand opening of its new Southeast Distribution Center in
Covington, GA. The facility was built and designed
specifically as a distribution center. RVIA Adopts New Mission Statement The RVIA board of directors adopted a new mission state at its meeting in March. The new mission statement is:
Fleetwood Reports Third Quarter Results Fleetwood Enterprises, Inc., announced earnings for the third quarter and nine months ended January 26, 1997. Net income for the third quarter declined to $13,779,000 or 38 cents per share compared to $17,302,000 or 37 cents per share for last year's similar period. Most of the decline was the result of the divestiture in May 1996 of Fleetwood Credit Corp., the Company's RV finance subsidiary, which had contributed earnings of $2,358,000 or five cents per share in last year's third quarter. Earnings per share from continuing operations increased 19% from 32 cents to 38 cents as a result of the repurchase of approximately 10.3 million shares earlier in the current fiscal year. Net income for the nine months increased to $103,661,000 or $2.58 per share compared to $64,111,000 or $1.38 per share in the corresponding period last year. Current year earnings include a one-time gain from the sale of Fleetwood Credit Corp. of $33.9 million or 84 cents per share. Fleetwood Credit Corp. contributed earnings from operations of two cents per share in the current nine months compared to 15 cents per share for last year's first nine-month period. Nine-month earnings from continuing operations rose 20%t to $68,883,000, but the per share amount jumped 40% to $1.72 versus $1.23 in the prior year. Also, the directors have declared the company's regular quarterly cash dividend of 16 cents per share of Common stock, payable May 14, 1997 to shareholders of record April 4, 1997. New York Reintroduces Bill To Allow Out-Of-State Dealers In Shows Out-of-state dealers may or may not be able to enter New York RV shows, depending upon the outcome of this year's legislative session in Albany. Currently, out-of-state dealers are not permitted to show or sell in New York, but some have appeared in shows in the past with little or no resistance from state authorities. Again this year, a separate piece of legislation is being considered to make it legal for dealers from out-of-state to enter New York RV shows. The only requirement is that the dealer must be licensed to do business in his or her state. This bill is similar to a show bill introduced last year by the same sponsor, state Sen. Hugh Farley. Separate legislation is being considered to ensure the
opposite, that out-of-state dealers do not show in New
York. According to the bill, a dealer licensed in another
state would be subject to the sAme dealer requirements as
a New York dealer selling off-premises within the state
he/she must have a place of business in New York. Neither
bill has been acted upon since introduction. Thor Reports Record Backlog Wade F.B. Thompson, Thor chairman, reports that order
backlog on March 1, 1997 was a record $120 million, and
that both RV and Bus backlogs were up from last year. Iowa May Modify Business Requirements of Travel Trailer Dealers According to legislation recently introduced in Iowa, travel trailer dealers would not be required to maintain regular business hours at the dealers principal place of business or any other place of business during the months of December, January, or February. Currently, state law requires that such dealers be
consistently open for a minimum of 32 posted hours each
week between Monday and Friday. Dealer Issues in Brief
Cruise America Reports 34% Gain in Nine-Month Earnings Cruise America, Inc., reports operating results for the third quarter and first nine months of its 1997 fiscal year. Total revenues for the nine months ended January 31, 1997 increased to $78.6 million, versus revenues of $76.1 million in the corresponding period of the prior year. Net income for the first nine months of FY1997 increased 34% to a record $5,858,000, or $0.99 per share, compared with a net profit of $4,364,000, or $0.76 per share, in the year-earlier period. For the quarter ended January 31, 1997, the company's
total revenues approximated $14.0 million, compared with
$13.8 million in the third quarter of the previous fiscal
year. A net loss of $4,059,000 ($0.69 per share) was
posted in the most recent quarter, versus a net loss of
$4,004,000 ($0.70 per share) in the prior-year period.
Cruise America, Inc. is traditionally unprofitable during
its third fiscal quarter, reflecting seasonal patterns in
recreational vehicle rental activity. Dusseldorf to Host Caravan Salon 97 The fairgrounds in Dusseldorf, Germany, will again host Caravan Salon 97, International Trade Fair for Recreational Vehicles, Mobile Homes, Trailers and Camping Equipment. The event will take place from September 27 - October 5, 1997. For more information contact:
Fleetwood's Discovery #1 in First Year Fleetwood captures nearly 10 percent of diesel market share in latest sales month. Less than a year after its introduction Discovery Class A motorhome has become the Number one selling diesel-powered motorhome in America. According to the latest monthly Statistical Surveys
report, Discovery seized just under 10 percent of all new
diesel motor home sales in the United States for the
month of December. Rexhall Will Buy Back 100,000 Shares Rexhall Industries, Inc., will begin repurchasing up to 100,000 shares of its own stock in the open market. This plan has been approved by the board of directors and will be the company's largest buy-back since it went public. Bill Rex, president and CEO, said, "With our stock trading in the $5 to $6 range, it is at or near book value. We feel this is a tremendous opportunity to take advantage of our stock's low price." Late in 1996, Rexhall's stock traded as high as $11 a
share. ARVC to Hold National Convention in Reno The National ARVC 31st Annual Convention & National Camping Industry Exposition, is scheduled from November 19-22, 1997 at the Reno Hilton in Reno, NV. Hosted by the National Association of RV Parks &
Campgrounds (ARVC), the 1997 convention and expo features
a program that will help attendees improve their
profitability. Focusing on the theme, "The Road To
Profit," RV park and campground owners and operators
will examine and discuss a range of industry trends and
business issues during seminars and open. Improving Customer Service, Implementing TQM Tops RVDA Education Foundation Agenda Improving customer service and implementing Total Quality Management (TQM) at RV dealerships topped the list of objectives developed at an informal meeting of RVDA Education Foundation contributors held in conjunction with the RVDA Board of Directors meeting in San Diego, CA, in March. RV dealers at the meeting were asked to rate
educational subject areas that the Foundation should
focus on in the coming year. Topics associated with
customer service received the highest number of
responses. Dealers are also interested in having the
Foundation develop educational materials based on
principles of TQM. Coast Adds Product Lines Coast has announced the addition of the Roadmaster Tow Bar and Safe-T-Plus Steering Control product lines. Product is available from all Coast's locations throughout the U.S. and Canada Jeff Wannamaker, Coast's president, said, "We are very pleased to be affiliated with these two fine companies. The addition of these lines to our business offers significant growth and profit opportunities for all our companies as well as our dealer customers." Follow this link for more news of the RV Industry |
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