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Health Concerns Force Jim Sheldon to Step Down at Monaco-Holiday Rambler Monaco Coach Corporation (NYSE: MNC) has announced that Jim Sheldon will be stepping down as company president due to health concerns. As a result, Monaco chairman and chief executive officer, Kay L. Toolson, will again assume responsibilities as company president. Monaco Coach Corporation chief financial officer, John Nepute, and chief administrative officer, Richard Bond, along with other senior members of management, will also assume additional responsibilities as a result of this change. According to Toolson, "Our thoughts and prayers are with Jim and his family, and his contribution to our success is appreciated by our entire organization." Fleetwood Withdraws Offer For Western RV Fleetwood Enterprises, Inc. (NYSE: FLE), has withdrawn its offer to purchase Western Recreational Vehicles, Inc. (a privately held company). According to Fleetwood president Nelson W. Potter, "After exploring carefully the potential benefits as well as strategic compatibility issues related to this proposed acquisition, we and the management of Western RV have mutually concluded that the synergies likely to be realized between the two companies are not as compelling as they were perceived to be when we began our discussions." Carriage, Inc., Sold to Investment Group Randall Burkholder, chief operating officer of Carriage, Inc., said that an investment group lead by Cushman Johnson LLC, a Phoenix, AZ-based merchant-banking firm, has purchased 100% of the stock of Carriage, Inc. from Clarence T. Yoder and Wilber Witmer. Burkholder stated that the transfer of ownership is effective immediately and that the new owners intend to retain current management and employees and continue the thirty-year tradition of superior products and service that has made Carriage a national leader in the manufacturing of conventional and fifth wheel travel trailers. William F. Hutchison, a native of Elkhart, IN, and a member of the new ownership group, has been appointed the company's chief executive officer. The principals of Cushman Johnson LLC, Glenn S. Cushman and Dean R. Johnson, have been appointed to the board of Carriage. Carriage, Inc., has manufacturing facilities in Millersburg, IN Thor Reports 120% Jump In Net Income Thor Industries, Inc., (NYSE: THO) had record sales and net income for the quarter and year ended July 31, 1999. Net income in the quarter surged 120% to $9.4 million, up from $4.3 million in the prior year. Net income for the year increased 59%, to $30.8 million compared to $19.4 million last year. EPS in the quarter jumped to a record 77c, up 120% from 35c last year. EPS for the year were $2.53 up 59% from $1.59 last year. Sales for the year were a record $805.8 million up 13% from $715.6 million last year. Sales in the quarter were $227.4 million, up 9% from $208.7 million last year. RV sales for the year were $588.9 million, up 8% from $547.5 million last year. Bus sales for the year were $216.9 million, up 29% from $168.1 million last year. Revised Forecast RVIA Economist Sees Shipments To Gain Nearly 7% in 1999 According to John DeWolf, RVIA's economist, RV shipments should be 310,000 to 311,500 units (at annual rates) for the two remaining quarters of 1999. Writing in the quarterly issue of ROADsigns, he said, "We expect the total for the year to be between 313,000 and 307,000. This will result in a gain of about 6.9% for the year over 1998. Growth should continue through the year 2000, when total units shipped should top 318,000 for a further annual gain of 1.7%." DeWolf also predicted both towables and motorhomes will see more shipments in 1999 than in 1998 towables by 5.9% more; motorhomes by 10.7% more. "However," he said, "this is largely because conventional travel trailers will be up 17.6% and type A motorhomes will be up 14.7%. Truck campers will also be up, but only slightly. Towables should up just over 3% in 2000 and motorhomes should hold about even." Coachmen RV Company and Walt Disney World Resort Forge Alliance Coachmen RV Co. and Walt Disney World® Resort announced a strategic alliance that combines their marketing strengths. Disney has designated Coachmen as the official RV of Disney's Fort Wilderness Resort and Campground and Disney's Wide World of Sports™ complex in Florida. Coachmen products will be prominently displayed at both of these attractions at Walt Disney World. In addition, two weeks of free camping at Fort Wilderness will be offered with the purchase of a new Coachmen brand motorhome, travel trailer or fifth wheel through Coachmen's own innovative and industry-leading Ultimate RV(SM) Vacation program. Holiday RV Superstores Reports Record Results In Third-Quarter Holiday RV Superstores, Inc. (Nasdaq: RVEE) continued to benefit from the expanding national market for upscale RVs, posting significant sales and earnings growth in the third quarter ended July 31, 1999. The Orlando, FL-based RV-and-boat dealership chain reported strong third quarter 1999 results, highlighted by net income of $497,451, or $0.07 per diluted share, on best-ever third quarter revenues of $19.7 million. This compares with net income of $400,025, or $0.05 per share, on net revenues of $18.1 million in the same period last year. The results represent a 24% increase in net income on a 9% increase in net revenues. For the nine-month period ended July 31, 1999, Holiday RV Superstores reported a 34% increase in net income on an 11% gain in revenues. The Company posted record net income of $1.8 million, or $0.24 per diluted share, on record revenues of $64.1 million, compared with net income of $1.3 million, or $0.18 per share, on net sales of $57.8 million in the same period last year. Holiday RV attributed the increase in revenues to heightened demand for RVs and boats, coupled with the higher average selling prices for both its new and used RVs. Hardee McAlhaney, president and CEO, said "We are extremely pleased with our results, which built on our record-setting pace in the first half of 1999, Our third-quarter results reflect the strength of the RV industry as well as our efforts to improve operating efficiency. We will continue to focus on driving top-line growth, as well as on refining our operating model at both the dealership and corporate levels. This will help ensure our business is scalable to accommodate our aggressive acquisition plan." |
Arizona State University Study Shows 1.5% Decline in Snowbirds The Center for Business Research at the Arizona State University College of Business in Phoenix has released its annual study of winter residents. The study provides the most comprehensive information about the number, economic impact and characteristics of Arizona's winter visitors who primarily stay in the state's RV and manufactured housing parks. The 98-99 study reported a slight decline of 1.5% or 3,000 winter residents compared to the 97-98 statistics. Center director, Tim Hogan, said, "This was the second year that the report showed a decline after increases in winter being reported going back to 1990. The declines were attributed to unseasonably wet and cool Arizona winters for the past several years and the weaker Canadian dollar. Workhorse Unveils Free Purchasers of Class A motorhomes with a Workhorse chassis can now get a free front-end alignment from their dealer, performed after the motorhome is loaded and ready to go. John Margalski, director of RV sales for Workhorse Custom Chassis, said, "The industry has needed this for a long time. The front end can't be properly aligned when the motorhome is purchased; everything changes when the owner loads up the unit and gets ready to hit the road. "While most RV dealers stress this at the time of the sale, there's usually a charge once the unit is fully loaded. And that's the other kicker: with everything on board and the tanks filled, the new owners are usually in a hurry to get on their way. They may be unaware that they've exceeded the vehicle's net carrying capacity or may not have balanced the load. They don't see the need for alignment so early in the game, particularly at extra cost. Workhorse's free front-end alignment program aims to change all that. And keep new owners satisfied with their purchase." Missouri RV and Park Trailer Standards Program Eliminated Missouri's Senate Bill 19 has become public law. Effective August 28, 1999, the Missouri Department of Manufactured Housing, RV and Modular Units will cease its enforcement and state seal program with both RV and Recreational Park Trailer products. The remaining states with active seal enforcement programs for Recreational Park Trailers include Arizona, Kentucky, Nebraska New Jersey, Oregon, Tennessee and Washington. According to the provisions of Senate Bill 19, recreation vehicle dealers and manufacturers are no longer required to register annually with the Missouri Public Service Commission. In addition, RV manufacturers will no longer be required to submit plan approvals to the Missouri Public Service Commission or purchase and affix Missouri Public Service Commission Seals of Compliance. All models constructed prior to August 28, 1999 must continue to be approved by the Missouri Public Service Commission and are required to bear a Missouri Public Service Commission Seal of Compliance. Manufacturers must also continue to submit the monthly Seals of Compliance forms covering seals assigned through the month of August. Camping World Intros Its First RV Body Shop Mass merchant Camping World continues to expand its mission into market segments traditionally provided by RV dealers and service centers by opening its first full-service RV body shop. Located outside Denver, Colorado, as an extension of its Wheat Ridge retail store, the Camping World RV Body Shop is a state-of-the-art facility dedicated to repair and body work on RVs. This 10,000-square-foot shop is much larger than the previous Wheat Ridge repair location and now has enough parking for 30 RVs. Everything from the repair and replacement of metal and rubber roofs to collision damage and fiberglass repairs can be done. Hail, wind and sand damage to RVs can be repaired as well. The shop is equipped with a technologically advanced paint department, including a bake-oven paint booth and computerized paint matching system. The paint booths' furnace is capable of bringing the temperature inside the booth up to 140 degrees in approximately 15 minutes. With this kind of equipment, the painter controls the climate in which the finish is applied. If refinishing is needed and the paint codes are not available or missing, a tool called "Prophet" is used to match paint. When placed against the RV, the hand-held Prophet can electronically read the existing paint, regardless of age or existing finish, and the computer translates it into a paint-mixing formula for an exact match. After the final coat has been added, the painter has the option of turning on the furnace to bake the finish. Camping World says the RV Body Shop welcomes all insurance claims and works closely with most insurance companies. Affinity Group Holdings Up 4% in Quarter Affinity Group Holdings, Inc. (AGHI), reported revenues of $102.1 million for the second quarter ended June 30, 1999, an increase of approximately $3.9 million or 4.0% from the comparable period in 1998. Camping World, Inc., was the major contributor leading merchandise revenue of $61.2 million, an increase of $6 million or 10.8% over the second quarter of 1998. According to AGHI, this increase was attributable to a $4.0 million increase in retail showroom sales, which included $2.0 million from the addition of two new stores and $2.0 million from a 5.6% increase in same store sales over the second quarter of 1998. In addition, mail order sales increased $1.6 million, and installation fees and other supplies and services increased $0.4 million. Both other major categories were down in the second quarter. Publication revenue of $10.6 million for the second quarter of 1999 decreased by $0.9 million from the comparable period in 1998. According to AGHI, this revenue decrease was principally attributable to a reduction in the number of issues published by Ehlert Publishing Group, Inc. ("EPG"). Membership services revenues of $30.2 million for the second quarter of 1999 decreased by approximately $1.2 million or 3.7% from the comparable period in 1998. According to AFHI, this revenue decrease was largely attributable to a $1.9millionreduction in revenue from the extended vehicle warranty program due to the use of one-year renewable sales contracts in lieu of the multi-year sales contracts used in 1998, and a $0.5 million decrease in fee income generated from the sales of vehicle insurance policies. According to AGHI, this decrease was partially offset by a revenue increase of $0.7 million in marketing fee income generated from the sales of health and life insurance policies as a result of a renewed contract with our third party administrator, and $0.5 million in additional member services revenue as a result of increased enrollment in the Good Sam Club and the Camping World President's Club. AGHI is the parent company of the Affinity Group, Inc., which is the parent company of TL Enterprises, Good Sam Club, Camping World, Inc., Woodalls, Coast to Coast, Inc., and other companies in the RV industry. |
Workhorse Pulls
Together In its commitment to providing the highest levels of service to the RV industry and Class A motorhome owners, Workhorse Custom Chassis (WCC) has added three regional assistant managers of RV sales. Assisting John Margalski, director of RV sales, are Wayne Abercrombie, Western Region; Andrew (Drew) Brengman, Midwestern Region; and Andréa Wieme, Eastern Region. Margalski is the contact with RV manufacturers. The assistant managers are the liaison with dealers; they'll also train manufacturer and dealer sales staffs. Abercrombie held a number of positions with Electronic Data Systems, Detroit, in their Chevrolet Customer Assistance Center and as Chevrolet motor home liaison. Brengman was previously Workhorse service and warranty administrator. Prior to that, he had handled EDS' Chevrolet manufacturer and motorhome customer concerns. Wieme developed and implemented several new training programs for DaimlerChrysler's service and parts department while at Ross Roy Communications, Bloomfield, Mich. Also a former EDS manager, she was responsible for Chevrolet motor home customer assistance. National R.V. Unveils Redesigned Website National R.V. Holdings, Inc., (NYSE: NVH) has unveiled its newly remodeled web site (www.nrvh.com). The National RV Holdings site has undergone extensive modifications as to format and content while continuing to afford the opportunity to explore product offerings at both the Country Coach and National RV divisions of the company. One of the main advantages of the new format is that ability to meet the company's future expansion and growth plans by providing a flexible web based platform. Wayne Mertes, CEO of National RV Holdings, said, "Now, those people who view us through the Internet can more readily see the depth of our company, look at the Country Coach and National R.V. product offerings, browse floor plans, find dealers and service centers, contact key departments or even send a resume or apply for a job. The site is an ongoing work in progress and reflects management's commitment to continual change and improvement.'' One of the new features of the site is an Investor Relations section that enables prospective and existing shareholders to view press releases, SEC filings, delayed stock quotes or request a copy of the company's annual report. Holiday RV Superstores Holiday RV Superstores, Inc. (Nasdaq: RVEE) has announced the appointments of Victor L. Hess as chief operating officer and Patrick R. McNair as chief financial officer. Hardee McAlhaney, Holiday RV president and CEO, said, The appointments strengthen our leadership team resources as it moves to lead overall growth and consolidation in the $35 billion RV and marine retail business." Victor Hess joins Holiday RV Superstores from Guaranty Chevrolet Pontiac Oldsmobile and RV, where he was president of this $275 million multi-state dealer and one of the nation's largest RV retailers. Hess, 51, also served as chief financial officer for a multi-franchise auto dealership chain and as treasurer for the McCoy Group, a holding company of truck dealerships and trucking companies. Patrick McNair, CPA, joins Holiday RV from CNL Fund Advisors, where he served as vice president of finance and administration working on acquisitions, public offerings and investment structuring for this $1 billion real estate investment trust (REIT). McNair, 36, also held financial leadership roles at Sawtek, Inc., a publicly traded electronics manufacturer, and WLR Foods Inc., a publicly held national food manufacturer and distributor. |
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