Holiday RV Superstores Reports Record Results In Third-Quarter, Nine-Month Period
14 September 1999
Holiday RV Superstores Reports Record Results In Third-Quarter, Nine-Month Period
ORLANDO, Fla., Sept. 14 -- Holiday RV Superstores, Inc.
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, Fla.-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.
"We are extremely pleased with our results, which built on our record-
setting pace in the first half of 1999," said Hardee McAlhaney, president and
chief executive officer of Holiday RV Superstores. "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."
Holiday RV Superstores is pursuing a plan to consolidate the $35 billion
RV- and marine-dealership market through acquisitions of complementary, multi-
location retailers. Holiday RV initiated this strategy following the June 30,
1999 acquisition of a controlling interest in the Company by Atlas
Recreational Holdings, Inc., a Florida-based investment group.
"The RV industry is dominated by single-store operators, creating an ideal
environment for consolidation," said Michael Riley, chairman of Atlas
Recreational Holdings and Holiday RV Superstores. "In addition, Holiday RV's
proven track record as a successful and profitable multi-store operator
positions us as the preferred partner for acquisition candidates. We have a
clear vision and are moving forward with our plan as evidenced by our
investments in operating systems and management team depth."
Holiday RV announced last week two new additions to its management team,
chief operating officer Victor L. Hess and chief financial officer Patrick R.
McNair. Hess joined Holiday RV from a large regional auto and RV dealership
chain, where he served as president. McNair came from a management position
at a billion-dollar real estate investment trust, where he led that company's
public offering and corporate finance activities.
Commenting on the operating results, McAlhaney said: "Consolidated gross
profit increased 8% to $3.5 million in the third quarter of 1999. This
reflects continued revenue growth among our higher-priced Class A motorhome
models. In addition, operating income increased 12% to $923,000, reflecting
not only higher sales levels, but also our focus on leveraging our cost
structure across all our operating divisions."
McAlhaney concluded: "A significant opportunity for growth exists at
Holiday RV. Our task is to maximize our management expertise, our proven
sales and service model, and the strategic and financial resources of Atlas to
achieve our vision."
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 NINE MONTHS ENDED
7/31/1999 7/31/1998 7/31/1999 7/31/1998
TOTAL REVENUE $19,696,900 $18,111,580 $64,137,964 $57,777,521
OPERATING INCOME 923,643 823,691 3,051,605 2,833,935
NET INCOME $497,451 $400,025 $1,782,180 $1,333,436
EARNINGS PER SHARE - BASIC $0.07 $0.06 $0.25 $0.18
EARNINGS PER SHARE - DILUTED $0.07 $0.05 $0.24 $0.18
BASIC SHARES 7,186,500 7,272,300 7,181,900 7,321,000
DILUTED SHARES 7,354,700 7,306,200 7,300,400 7,355,000