Holiday RV Superstores Reports Record Sales and Earnings
25 May 1999
Holiday RV Superstores Reports Record Sales and Earnings ORLANDO, Fla., May 25 -- Benefiting from the surging national
market for high-end recreational vehicles, Holiday RV Superstores, Inc.
today reported its best-ever quarter of sales and earnings.
The Orlando, Fla.-based RV-and-boat dealership chain reported record net
income of $842,555, or $0.12 per share, on record revenues of $26.3 million in
the second quarter ended April 30, 1999, compared with net income of $770,385,
or $0.11 per share, on net sales of $24.1 million in the same period last
year. The results represent a 9.1% increase in earnings per share on an 8.7%
increase in net sales over last year's second quarter.
For the six-month period ended April 30, 1999, Holiday RV Superstores
reported a 38% increase in earnings per share on a 12% gain in revenues. The
Company posted record net income of $1.3 million, or $0.18 per share, on
record revenues of $44.4 million, compared with net income of $933,411, or
$0.13 per share, on net sales of $39.6 million in the same period last year.
"We are very pleased with our results," said Newton C. Kindlund, chairman
and chief executive officer of Holiday RV Superstores. "Strong consumer
demand for upscale recreational vehicles, particularly among Baby Boomers,
continues to drive our financial performance. We posted a solid, double-digit
increase in sales of new RVs during the second quarter and continued to focus
on effectively managing operations, resulting in our best quarter and six-
month period of profitability since we began trading on Nasdaq in 1987."
Holiday RV Superstores attributed the increase in revenues primarily to
higher average selling prices for new and used RVs. The gains in RV sales
helped offset lower parts-and-service revenues during the second quarter and
six-month period. Continued focus on cost-management at the dealership and
corporate levels, combined with a significant reduction in interest expense,
contributed to the record levels of profitability.
Commenting on the operating results, Chief Financial Officer Hardee
McAlhaney said: "Consolidated gross profit increased $288,000 in the first
half of fiscal 1999, reflecting increased sales of higher-priced Class 'A'
RVs, which carry lower margins but offer greater dollar profit contribution.
Inventories grew in line with overall sales during the quarter and six-month
period, and our already-solid balance sheet continues to improve. With more
than $10.4 million in cash, significant borrowing power and a proven operating
model, we have put ourselves in prime position to make the most of industry
growth and lead the consolidation of the fragmented RV dealership business in
the United States."
Kindlund concluded: "Our strategic locations and diverse product lineup
have put us in a favorable position to capitalize on continued growth in the
$16 billion RV industry, which is experiencing its strongest expansion in two
decades. Moving forward, we expect the shift toward higher-priced Class 'A'
RV models will continue to have a positive impact on our sales and
profitability."
Holiday RV SuperStores (http://www.holidayrv.com) is the nation's only publicly
traded chain of dealerships specializing in sales of recreational vehicles and
boats. The Company sells, services and finances more than 52 RV and boat
brands -- including Winnebago, Fleetwood, Airstream, Beaver, National RV,
Bayliner, Sea Ray and Mariah -- from its chain of seven dealerships in
California, Florida, New Mexico and South Carolina.
The statements contained in this news release include certain predictions
and projections that may be considered forward-looking statements under
securities laws. These statements involve a number of risks and uncertainties
that could cause results to differ materially including, but not limited to,
the performance of the recreational vehicle or boat industries, certain
customers or affiliated companies, as well as other economic, competitive,
governmental and technological factors affecting the Company's operations,
markets, products, services and prices.
HOLIDAY RV SUPERSTORES, INCORPORATED AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(Unaudited)
THREE MONTHS ENDED SIX MONTHS ENDED
4/30/99 4/30/98 4/30/99 4/30/98
TOTAL REVENUE $26,258,070 $24,146,941 $44,441,064 $39,665,941
OPERATING INCOME 1,487,048 1,508,944 2,127,962 2,010,244
NET INCOME $842,555 $770,385 $1,284,729 $933,411
BASIC AND DILUTED EARNINGS
PER SHARE $0.12 $0.11 $0.18 $0.13
BASIC SHARES 7,166,500 7,281,500 7,180,000 7,345,700
DILUTED SHARES 7,256,800 7,302,000 7,263,700 7,366,500
