|
Industry News
Market Expansion Initiative for $22 per Unit Assessment Wins RVIA Board Approval
The RV Industry Coalition's Market Expansion Initiative to seek manufacturer support in
providing $22 per unit to fund market expansion is an old idea whose time has come. The initiative
re-ceived a lot of coverage at Louisville, at the Jan-uary RVDA Convention, and at state conventions in
the fall.
RVDA chairman, Tom Stinnett, of Tom Stinnett RV, Louisville, KY and Clarkesville, IN and
president, Mike Molino went before the RVIA board on March 10, 1996 to make the dealer's case.
They asked the RVIA board to support the initiative and approve the process, since RVDA is asking
RVIA to collect the fees that will finance the program.
The RVIA board voted 20 to 2 to approve the $22 per unit assessment to support market
expansion. Because this will be a general assessment, the RVIA board's action is subject to
ratification by a simple majority of the RVIA membership. RVIA will conduct a poll by written ballot.
"This is a great victory for the industry," Stinnett commented and Molino agreed. "We could
not have made a strong case without the help of the many members who wrote their manufacturers
and responded to our survey."
Atwood Mobile Products Sold to Excel
Excel Industries Inc. has agreed to purchase all the common shares of Anderson Industries
Inc., substantially increasing Excel's opportunities in the recreational vehicle market.
Anderson of Rockford, IL, is a holding company whose main asset is Atwood Industries Inc.,
a supplier to automotive and RV manufacturers.
The two companies have signed a definitive purchase agreement and, subject to approval by
the Department of Justice, the transaction is expected to close in late March or early April. The
purchase price was not disclosed.
James 0. Futterknecht Jr., chief executive officer of Excel, said that the acquisition of Atwood
Industries expands Excel's product lines, increases vehicle content to current customers and adds
new customers.
Futterknecht said Atwood will boost budgeted 1996 revenues for Excel to about $900 Million.
Atwood's sales have grown 10 percent annually since 1985 and are expected to be
approximately $375 million this year. Atwood employs about 3,700 people at 13 plants in the U.S. It
also has one plant in Mexico and one in Italy.
"Atwood, which is a long-time supplier to our markets, complements Excel's strengths," said
Futterknecht. "It substantially increases opportunities with the recreational vehicle industry and it
provides new products in the automotive business. Furthermore, it expands our injection molding
customer base and broadens those capabilities."
Atwood manufactures gas ranges, water heat-ers, furnaces, air conditioners, fifth-wheel
systems, seat hardware and other products for the RV, manufactured housing and other
non-automotive vehicular markets.
It is the largest domestic manual seat track supplier and second-largest door hinge supplier
to the car and truck markets.
Atwood also makes injection-molded plastic parts for the automotive and consumer
electronics markets.
"This acquisition meets our stated goal of broadening our customer base and adding new
products in areas of existing technical strength," said Futterknecht. "In the RV sector, it also
ex-pands product offerings to several of our biggest customers."
He said that two-thirds of Atwood's automotive business is with Chrysler and General
Motors.
"As we advised in the past, our automotive marketing plan has been to achieve good customer
balance in new programs and Atwood helps us meet that objective," said Futterknecht.
Excel Industries is the leading independent designer, manufacturer and supplier of window
and door systems to the combined automobile, light truck and van, bus, heavy truck and recreational
vehicle markets in North America.
Monaco Completes Acquisition of HRC
Jim Sheldon Named President of New Division
Monaco Coach Corporation (NASDAQ: MCCO) announced it has completed the acquisition of
the Holiday Rambler Recreational Vehicle Division of Harley-Davidson, Inc. Monaco also said it has
appointed industry veteran Jim Sheldon as president of the new division.
Monaco paid approximately $39 million in cash, preferred stock and a subordinated note
and assumed the liabilities of the acquired operations. The Holiday Rambler RV Division
manufacturing facilities and the related retail dealerships acquired by Monaco had combined 1995
revenues of almost $290 million. As previously announced, Monaco will sell the ten retail
dealerships purchased from Harley-Davidson and is presently identifying potential buyers for these
outlets.
Sheldon, who will also be a Monaco vice president, most recently was responsible for special
assignments in the area of RV operations for Fleetwood Enterprises, Inc. He also has served as
Fleetwood's managing director of European operations and directed the company's marketing
division. In his new position, Sheldon will be based at Holiday Rambler's facilities in Waka-rusa, IN.
Monaco has filled other key roles in its new division with existing Holiday Rambler
management: Mike Myers, Holiday Rambler chief financial officer; Mark O'Leary. Holiday Rambler
vice president of operations, Jack Tingley, Holiday Rambler vice president of sales and marketing;
and Paul Barbour, Holiday Rambler vice president of consumer affairs. In addition, Monaco will
appoint Richard Bond, Holiday Rambler's general counsel, as vice president and general counsel of
Monaco Coach. Myers and Bond will be joining Monaco after they complete their assignments with
Harley-Davidson.
Kay Toolson, chairman and chief executive officer, said, "Through this acquisition, we gain
experienced managers, a skilled work force and high quality, well-designed products. Further, it
allows us to expand our current high-line product offering to include lines well-positioned in the
mid-range of the market. This, in turn, enhances our ability to offer customers a clear trade-up
strategy and a stepping stone to a more luxurious motorcoach."
Page Robertson, Monaco's president, added, "Our now team, led by Jim Sheldon, has the
near-term objectives of streamlining Holiday Rambler's operations and turning the division into a
strong financial contributor. In addition to the obvious marketing synergies, we see opportunities to
improve through cross fertilization of all our manufacturing facilities."
Toolson added that management is well along in formulating its business plan for Holiday
Rambler and identifying ways to reduce the existing overhead. "We are confident this acquisition
positions us to take full advantage of a future market resurgence," he said.
Financing for the transaction was provided to Monaco by a syndicate of financial institutions
led by BT Commercial Corporation.
Headquartered in Coburg, OR, with additional manufacturing facilities in Indiana, Monaco
Coach Corporation is a leading manufacturer of high-line motorcoaches. The company offers
customers five luxury motorcoach models: the Windsor, the Dynasty, the Executive, the Signature
Series and Royale Coach.
Monaco's Holiday Rambler Recreational Vehicle Division builds towables under the names
Aluma-Lite and Imperial, and motorcoaches under the names: Navigator, Imperial, Endeavor and
Vacationer.
Industry Pioneer George Jackson Dies
|
Hydro Flame Corp. founder George Jackson died in Arizona on January 30. He was 76. A
true pioneer in the industry, Jackson invented the first sealed combustion furnace for RVs in 1959.
Jackson served on the RVIA board of directors from 1980 to 1990 and on a number of
association committees including the Public and Legislative Affairs Committee.
"George was an RV in-dustry supporter second to none," said colleague and former RVIA
board member Eldon Wright of Atwood Mobile Products.
George Jackson is survived by wife Peggie and three children. Memorials or donations may
be sent to: YWCA's Women in Jeopardy Program, 322 East Broadway, Salt Lake City, UT, 84111.
RVIA Market Forecast
New RV Shipments Expect to Turn Upward Before the End of 1996
RVIA economist, John DeWolfe, predicts the slowdown in the economy will be over by the
middle of 1996. For RV shipments the next two quarters should see very modest declines, at annual
rates, followed by a quarter that holds about even. Writing in roadsigns, RVIA's economic forecast
newsletter, DeWolfe, said, "After that, we look for a gain in each quarter through the end of 1998 at
the every least." However, DeWolfe added, the drop in the first half of 1996, even though
modest, will be enough to result in a drop of just over 8% in total 1996 shipments. This should be
followed by a gain of almost 7% in 1997. Total decline over the two-year period should be only about
6,500 units, or less than 2%"
"Specifically," DeWolfe said, "we now expect shipments in 1996 to total 225,600 units, which
will make the year the third best since 1978. In 1997, shipments should rise to better than 240,000.
Shipments should be back up to a record high in 1998."
According to DeWolfe, towables will do slightly better than motorhomes in 1996 down 8.1%
vs. 8.9% for motorhomes. However, motorhomes should recover a little faster from the slowdown.
In 1997, motorhomes will be up 7.6% vs. a 6.3% gain for towables. Fifth-wheel travel trailers and
truck campers should both have slightly stronger shipments in 1997 than in 1995 while other types
won't better 1995's performance until 1998.
Make-A-Wish Foundation of Iowa and Winnebago Presents:
Rebecca's Awesome Adventure!
When Robert and Carolyn Martin's daughter was diagnosed with Wilm's Tumor, the furthest
thing from their minds was taking a family adventure to Disney World. But that was back in
November 1994, and now things are looking up for the Martins. Robert is an employee in the
Winnebago Industries chassis weld division.
Rebecca's diagnosis is optimistic. She has only one more round of chemotherapy to go
through.
The Make-A-Wish Foundation of Iowa works to fulfill the favorite wishes of children between
the ages of 2 1/2 and 18 who suffer from life-threatening medical conditions. The Martin family
applied and were accepted with Rebecca's adventure granted in February.
Her first wish was to visit her Uncle Doug. Doug Kellogg is the brother of Carolyn Martin and
is a missionary in Haiti. Doug was with the Martin family during the first month and a half of
Rebecca's illness and became very close to her. Since the Make-A-Wish Foundation couldn't make
that wish come possible, they resorted to her second wish which was to go to Disney World and have
her uncle meet her there. The extended family met in Disney World for their exciting visit.
In appreciation for Winnebago Industries sponsorship of her trip, Rebecca and her family
brought a cake to share with the company's management staff. Pictured here with Rebecca are (left to
right): president and chief executive officer Fred Dohrmann; Jerry Clouse, vice president, treasurer
and international development; Jim Jaskoviak, vice president of sales and marketing; Ray Beebe,
vice president, general counsel and secretary; Ed Barker, vice president controller and chief financial
officer and Bruce Hertzke, chief operating officer.
LaSalle-Deitch and BPC Merge
to Become LaSalle Bristol
LaSalle-Deitch Co., Inc. and the BPC Division of Bristol Corporation have merged to become
LaSalle Bristol, a Hey-wood Williams Comp-any, according to William Schmuhl, pre-sident and chief
executive officer of Hey-wood Williams, Inc. HWI is the U.S. holding company for Heywood Williams
Group PLC, a U.K.-based building products and automotive components company.
LaSalle-Deitch is a supplier to the manufactured housing, modular housing, and RV
industries. As a manufacturer and distributor of plum-bing products and fixtures, the BPC Division
produces non-metallic faucets and pipe fittings, and distributes a full line of plumbing products to the
manufactured housing, modular housing and RV industries.
The businesses are already operating out of joint warehouses in the Southeast, Texas and
Pennsylvania; a new 375,000 square foot facility is under construction in Elkhart, IN, to house the
Indiana operations of the new LaSalle Bristol. Over time, all warehouse locations of each company
will be consolidated to better serve customers' needs.
Effective March 12, 1996, the merger included changes in management. William Schmuhl
was elected by HWI's board of directors to serve as president and chief executive officer of HWI. He
replaces Robert Hotovy, who retired in early 1996 after serving as president of HWI and the Creation
Group, another division of Heywood Williams, Inc.
Clark Peters has been named president and chief executive officer of the newly formed
LaSalle Bristol. Assisting in managing the company will be senior vice presidents Don Bobay,
finance; Larry Campbell, LaSalle Bristol West; Don De-Shano, marketing; and Bill Kuehne,
operations.
The new company has designed its logo to incorporate the logos of the merging companies.
The LaSalle-Deitch logo, representing the spokes of a wheel reaching out to its customers, has been
paired with the BPC logo, symbolized by an arrow, always moving forward.
Traffic Up, Sales Brisk
at Nation's RV Retail Shows
Sales rose even as temperatures and snow fell at retail recreation vehicle (RV) shows around
the nation this winter. Show sponsors have been buoyed by strong attendance and showgoers who
are serious about buying an RV.
The Great Lakes RV Show, held in Cleveland last month, typifies the '96 show scene. "This
was the biggest show we've ever done. Atten-dance was up over last year, which had been the best
year to date," said Tracey Egan, executive director of the Great Lakes RV Association. "The
enthusiasm at the show was great, and we saw a resurgence in motorhome and mid-level travel
trailer sales."
The scene was much the same in Tampa at January's Florida RV Supershow. "Business was
brisk, there were more qualified buyers than usual and profits were up," said Lance Wilson, executive
director of the Florida RV Trade Asso-ciation, which sponsors the event. "Attendance was up by eight
percent over last year with interest in all RV types, from the entry-level vehicles all the way up to
high-end coaches."
Wilson added that younger, baby boomer shoppers were much in evidence. "I was walking
the show with one of my board members when he stopped, looked around and asked, `Have you ever
seen so many young people at an RV show?' I realized he was right. We were both encouraged
because younger buyers are the future of this industry."
Business was likewise strong at the New Jersey Trailer and Camping Show and the Rhode
Island RV Show, said Jim McLaughlin, who organizes both. "Traffic was up tremendously during the
New Jersey event with dealers selling a good mix of entry-level and higher-end product," he said.
"The Rhode Island show attendance was equal to last year despite inclement weather, and dealers hit
the sales numbers they wanted to hit."
There are many good reasons for the high interest in RV shows this winter, according to
David J. Humphreys, president of RVIA. "Besides offering an antidote to cabin fever and a pleasant
way to spend an afternoon, an RV show is the ultimate in one-stop shopping," he said. "Consu-mers
are able to see different vehicle types, sizes and floorplans from numerous manufacturers at one
location. Shoppers have a chance to get in and get the feel of the vehicles, to determine which best
suit their needs. Also, competing dealers are all in the same location, which creates a favorable
environment for buyers."
What's catching the attention of showgoers? At the Greensboro RV and Camping Show in
Greensboro, NC, the top product attraction was slideouts. Organizers of the Northeast RV and
Camping Show in Hartford, CT, also reported that slideout models, particularly large fifth-wheel
travel trailers with slideouts, were good sellers. Folding camping trailers attracted a lot of attention
too, reflecting the influx of younger buyers into the industry.
RVIA has intensified efforts to offer promotional support to retail shows after research by
Louis Harris and Associates showed that 31 percent of the most likely new buyers and 32 percent of
former buyers attend an RV show. These initiatives include: distributing press materials to show
promoters and editorial contacts to generate media interest in the shows; supplying generic RV video
footage for show advertising and television coverage; and providing free promotional literature for
show sponsors to distribute to attendees.
Lazy Days Continues To Break Records
Lazy Days RV Center set another sales record in January. The previous sales record of
$15.5 million, set during March of 1995, was shattered by the Lazy Days sales team with gross sales
exceeding $16.6 million for the month.
During the month, Lazy Days set a new monthly sales record by delivering 260 units with 40
customers taking delivery of their new recreational vehicles on January 31st.
The Lazy Days sales team attributes the tremendous growth and success of Lazy Days to a
simple philosophy..."Teamwork with a total commitment to our customers, our training, our
purpose, making customers for life, and our goals."
Sets Industry Record For Holiday Rambler:
Lazy Days, a long time dealer for Holiday Rambler, set a new benchmark for the number of
Holiday Ramblers sold in one year by selling 212 units in 1995. These unit sales represent an
increase of 55% over last year and 12 units over Lazy Days goal of 200.
Top Sales Representatives:
With over 40 Sales Representatives, competition is tough for the top position at Lazy Days
R.V. Center. Claiming the motorized top salesperson title for 1995 is Norm Williams. Norm started
at Lazy Days just 2 years ago and in 1995 managed to generate over $5 million in retail sales. Don
Wallace, president, Lazy Days, commended Norm for his impeccable product knowledge and his
strong work ethic. Norm achieved 155% of his profit goal and sold 66.5 units.
George Hamaker is top sales representative for the towable division for 1995. George
generated over $2 million in gross sales, and sold 84 units. Towable sales manager Dan Lassetter,
said, "George owes his success to his dedication to our training program's Six Steps to Customer
Service, and he is always persistent."
George has been with Lazy Days just 2 years.
Stag Parkway Focuses on Value to Dealers
Bruce Jenner, keynote speaker opening the re-cent StagParkway show in Atlanta, GA, said
that to be a real champion it takes a deeper level of commitment to being better than your
competition.
Stan Sunshine, new president of StagParkway, along with Mike McKay, vice president of
marketing, expanded on that theme and explained that the changes going on at StagParkway are
design-ed to enhance the value of StagParkway to its dealers. They cited StagParkway's decision to
add five regional sales managers in the field who will focus strictly on sales activities with
dealerships.
Dealer and exhibitor enthusiasm were high at the show and orders were very good, according
to StagParkway personnel.
Cruise America's Earnings Rise 53%
During First Nine Months of FY96
Cruise America, Inc. (AMEX: "RVR") reports operating results for the third quarter and first
nine months of its 1996 fiscal year.
For the three-month period ended January 31, 1996, the company's revenue increased 34%
to approximately $13.8 million, compared with $10.3 million in the corresponding period of the
previous fiscal year. A net loss of $4,004,000 ($0.70 per share) was recorded in the third quarter of
FY1996, versus a prior-year net loss of $3,581,000 ($0.63 per share). Historically, CruiseAmerica is
unprofitable during the seasonally-slow second half of its fiscal year, when rental demand for RVs is
significantly lower than in the Spring/Summer vacation months.
For the nine months ended January 31, 1996, Cruise America, Inc. reported a 53% increase
in net income to a record $4,364,000 ($0.76 per share), compared with a net profit of $2,848,000
($0.50 per share) in the year-earlier period. Revenue for the first three quarters of FY1996 rose 7%
to approximately $76.1 million, versus prior-year revenues of $71.1 million. Rental revenue for the
most recent nine-month period increased 26% to $41.3 million (versus $32.8 million), while sales of
recreational vehicles declined 9% to $34.8 million (versus $38.3 million), when compared with the
corresponding prior-year period.
Jimmy Houston to be Reese Spokesperson
Reese Products has named Jimmy Houston as an official spokesperson for the company.
Jimmy Houston is a nationally renown fisherman with 10 National Tournament victories to
his credit and is host of "Jimmy Houston Outdoors"', a nationally-syndicated television program
which is broadcast on ESPN. Houston is a two-time winner of the B.A.S.S. "Angler of the Year", ranks
15th in the "Angler of the Year" standings and is 31st among the all-time money winners.
In 1990, Jimmy was inducted into the National Fresh Water Fishing Hall of Fame, Hall of
Legendary Anglers and is an original inductee into the Pro Bass Angler Association Hall of Fame.
Thor Sales Up in Second Quarter
Thor Industries, Inc, (NYSE:THO) reported sales for the second quarter ended January 31,
1996 were a record $119,781,000, up 5% from $114,369,000 last year. Net income for the quarter
was $1,964,000, versus $2,209,000 last year. E.P.S. for the quarter were 22 cents versus 25 cents
last year.
Sales for the six months ended January 31, 1996 were a record $271,300,000, up 7% from
$253,539,000 last year. Net income for the six months was $6,377,000, versus $7,992,000 last
year. E.P.S for the six months were 72 cents versus 90 cents last year.
Wade Thompson, Thor chairman said, "Results were adversely affected in the second
quarter by extreme weather conditions.
"Our confidence in the future is demonstrated by our purchase of 200,700 shares of our
common stock since October 31, 1995. We believe it represents excellent value at current levels."
Thor also announced a dividend of 3 cents per share payrable on April 5, 1996 to
stockholders of record on March 22, 1996.
Allied Leisure Products
Creates Allied University
Allied Leisure Products, Inc. (ALP), a Rocky Mountain regional warehouse distributor,
recognizes the need for RV dealer training. In 1994, Allied Leisure introduced Allied University. The
format is very similar to that of a local college. A full schedule of classes is announced ahead of time.
Participants register for classes, earn credit hours, receive certificates of completion for each class,
and, depending on the number of credit hours earned, receive cash prizes. In 1994, Allied University
started with eight one-credit hour classes that averaged 15 participants in each class. In 1995, Allied
University conducted eleven classes ranging from one to six credit hours. Classes averaged 25
particpants.
Craig Waugh, general manager of ALP & "Dean of RV Service" at AU said, "RV dealerships
seem to recognize the need for technical training. Our participants have been service technicians,
parts personnel, salesman, general managers, and owners."
AU's motto is "Training = Sales."
"Training benefits manufacturers, distributors, dealers, and consumers," Craig added. "As
long as RV dealers see the need for training, and quality people attend, Allied University will continue
to conduct service schools."
Winnebago Features Pro Golf Tips
at FMCA Show
Winnebago Industries, Inc. offered personalized golf tips from the pros during the Family
Motor Coaching Association's Winter Convention held last month in Perry, GA. U.S. Open winner
Orville Moody was on hand to talk to visitors and give tips. Moody's golf career spans more than
three decades. Famous for his 1969 victory at the U.S. Open, Moody's light has shown even brighter
since joining the Senior PGA Tour in 1984. He has earned more than 11 tournament victories since
that time.
Ron Cerrudo, golf pro for the Home Base Ship Yard Golf Club at Hilton Head, SC, was also
featured. Cerrudo spent more than 11 years on tour, has won 3 tournaments and has participated
with the World Cup and Walker Cup teams. He is past "Teacher of the Year" in the Carolina section
and is currently on the national PGA teaching committee.
Winnebago displayed over 40 of the company's 1996 motorhome product lines ranging from
the luxurious Vectra, Vectra Grand Tour and Luxor models to the economical Winnebago Minnie and
Itasca Spirit models.
Dates for Caravan Salon 96 Announced
Caravan Salon 96, International Trade Fair for RV's, mobile homes, trailers and camping
equipment, will again take place at the fairgrounds in Dusseldorf, Germany, from September 28 -
October 6, 1996.
A special feature at Caravan Salon 96 will be the U.S. Pavilion, organized by Dusseldorf
Trade Shows, Inc., and sponsored by the Recreational Vehicle Industry Association (RVIA).
For further information on visiting or exhibiting at the show, contact Dusseldorf Trade
Shows, Inc., 150 North Michigan Avenue, Suite 2920, Chicago, IL 60601. Telephone: (312)
781-5180; Fax: (312) 781-5188.
Back to RV News Contents Page