Recreation USA Announces 87% Increase in 1st Q Revenue
15 March 2000
ORLANDO, Fla.--Holiday RV Superstores, Inc., DBA Recreation USA, today reported results for the fiscal first quarter ended January 31, 2000.
Recreation USA, the nation's largest publicly traded retailer of recreational vehicles, reported that net revenues for the fiscal quarter ended January 31, 2000 increased 87 percent to $34,039,000, compared with net revenues of $18,183,000 reported for the fiscal first quarter ended January 31, 1999.
Ronald G. Huneycutt, Chief Executive Officer, commenting on the increased sales revenue said, "The expansion of our dealership base with the purchase of five dealership locations in Florida gives us the ability to acquire market share through regional penetration and geographic coverage." Mr. Huneycutt states, "Recreation USA's market share growth allows us to be a dominant dealer in the Florida market. Our acquisition template provides a platform in which regional dominance, revenue and earnings are substantially increased in the areas of the sale of vehicles, customer parts and service, warranty, and retail finance contracts. The Company anticipates greater customer satisfaction as our full service and repairs facilities continue to be expanded."
The Company reported a net loss for the 2000 fiscal first quarter of ($193,000), or ($0.03) per basic and diluted share, compared with net income of $442,000, or $0.06 per basic and diluted share, for the 1999 fiscal first quarter. Mr. Huneycutt, noted that the higher than normal net income of $442,000 in the first quarter of 1999 was principally attained from a $193,000 after tax gain on the sale of the Atlanta dealership. Revenue on a same store basis resulted in a 2.4% increase. The loss for the 2000 fiscal first quarter was primarily attributable to acquisition expenses, and expenses related to expanding the Company's infrastructure and marketing.
In announcing the results, Michael Riley, Chairman, said, "We are implementing our region by region strategy of accretive and non-dilutive acquisitions in increasing market share penetration. Mr. Riley notes, "Even though our numbers reflect a net loss in our traditionally flat quarter, management has done well not to exceed the 5% of purchase price cost anticipated in its purchase acquisition and integration model while nearly doubling the size of our Company's revenue and employee base." Mr. Riley added, "The recent acquisition earlier this month of Little Valley Auto and RV Sales, Inc., once again gives us a very profitable and accretive transaction establishing a strategic location base in our Mid-Atlantic region."
About Recreation USA:
Recreation USA is the nation's only publicly traded chain of dealerships specializing in the sales of recreational vehicles and boats, and is positioned to become the dominant nationwide retailer of recreational vehicles and recreational boats. Additionally, the Company offers its customers the opportunity to purchase recreational products through its e-commerce website, WWW.RECUSA. COM.
Holiday RV Superstores, Inc.
Financial Summary
Quarter Ended Quarter Ended
January 31, 2000 January 31, 1999
---------------- ----------------
Total Revenue $ 34,039,000 $ 18,183,000
Gross Profit $ 5,535,000 $ 3,070,000
Operating Income $ 509,000 $ 641,000
Net (loss) Income $ (193,000) $ 442,000 (1)
Earnings (loss) Per
Basic and Diluted Share $ (0.03) $ 0.06
Basic Common Shares 7,226,000 7,192,200
Diluted Common Shares 7,226,000 7,260,600
(1) Includes $193,000 after tax gain attributed to the sales of the
Atlanta store location.
