Cruise America Announces FY 1997 Earnings
30 June 1997
Cruise America's Net Earnings Rise 170% During FY1997; Earnings Per Share Reach $0.46, Compared With $0.17 in Previous Year
MESA, Ariz., June 30 -- Cruise America, Inc. (AMEX: RVR)
today announced sharply improved operating results for its 1997 fiscal year.
For the fiscal year ended April 30, 1997, the Company's net earnings
increased 170% to $2,713,000, or $0.46 per share, compared with net earnings
of $1,006,000, or $0.17 per share, in the previous fiscal year. Revenues
expanded 9% to approximately $95.6 million during the most recent fiscal year,
versus $87.9 million in FY1996.
Vehicle rental revenues increased 21% to approximately $53.8 million
during FY1997, compared with $44.3 million in the year ended April 30, 1996.
Sales of new and used vehicles declined to approximately $41.9 million, versus
approximately $43.6 million in FY 1996.
"Management was very satisfied with our Company's operating performance
during Fiscal 1997, which was even more impressive than the gain in earnings
per share," commented Randall Smalley, President and Chief Executive Officer
of Cruise America, Inc. "Pretax earnings rose 179% for the year and our
pretax profit margin improved to 4.0%, compared with 1.5% in the previous
year. Our effective income tax rate increased to 29% last year, which was up
from 26% in Fiscal 1996."
"Improved earnings from vehicle rental operations, which benefitted from
an expanded fleet size and higher utilization rates, more than offset a
decrease in revenues and profitability related to sales of new and used
recreational vehicles. Our rental fleet modularization program, which we
began in 1993, continues to have a positive impact upon Cruise America's
financial performance. At the present time, all of the motorhomes and
truck/campers in our rental fleet are comprised of modular vehicles, and we
are refurbishing motorhomes at our facility in Mesa, Arizona. The
refurbishment and mounting of motorhome coach bodies on new vehicle chassis
reduces depreciation expense, on a per-vehicle basis, and lowers capital
expenditure requirements for our fleet expansion program."
"Utilization rates during the early months of the current vacation season
have been strong, and the majority of our Western U. S. and Canadian locations
are already sold out for the Summer," continued Smalley. "Daily rental rates
have been increased for the 1997 rental season, and our rental fleet should
peak at around 4,100 units this Summer, compared with approximately
3,700 vehicles a year earlier. We will increase the number of heavyweight
Harley-Davidson and Honda motorcycles in our fleet to over 275 this year, as
rental demand in this category remains very high and utilization is less
seasonal than is the case for other recreational vehicles."
Cruise America, Inc. believes it is the largest Company in North America
specializing in the rental and sale of recreational vehicles, including
motorhomes, truck campers and motorcycles. The Company's common stock trades
on the American Stock Exchange under the ticker symbol "RVR."
This press release includes statements which may constitute forward-
looking statements made pursuant to the safe harbor provision of the Private
Securities Litigation Act of 1995. This information may involve risks and
uncertainties that could cause actual results to differ materially from the
forward-looking statements. Factors which would cause or contribute to such
differences include, but are not limited to, factors detailed in the Company's
Securities and Exchange Commission filings.
Cruise America, Inc.
Financial And Operating Highlights
Fiscal Year Ended
April 30 April 30
1997 1996
Rental Revenue $53,764,000 $44,319,000
Vehicle Sales 41,856,000 43,569,000
Total Revenue $95,620,000 $87,888,000
Earnings Before Income Taxes 3,797,000 1,359,000
Income Tax Expense 1,084,000 353,000
Net Earnings $2,713,000 $1,006,000
Earnings Per Share $0.46 $ 0.17
Shares Used In Calculation 5,869,000 5,859,000
SOURCE Cruise America, Inc.
