Recreation USA Secures Major Block of Financing in its Growth Strategy
29 August 2000
Recreation USA Secures Major Block of Financing in its Growth Strategy
Total Floor Plan Facilities Near $80 million as Bank of America Increases
Their Credit Line to $44.5 million
ORLANDO, Fla., Aug. 29 Holiday RV Superstores, Inc.
today announced it has secured increased floor plan financing
to $44.5 million to allow the leading RV dealer to expand its inventory and
product depth.
The Orlando, Fla. chain of recreational vehicle and marine dealerships,
which operates under the tradename Recreation USA, said the expanded floor-
plan facility from Georgia-based Bank of America Specialty Group reflects the
Company's strong financial performance and will support Recreation USA's
recent acquisitions and its accelerated growth strategy for the future.
"A floor-plan facility of this size demonstrates Bank of America's
confidence in our ability to execute our plan to consolidate the fragmented
marine and RV dealership industries," said Ronald G. Huneycutt, president and
chief executive officer of Recreation USA. "We have developed a close working
relationship with Bank of America, and expect BOA will continue to be a
significant partner as we continue our rapid acquisition pace and successfully
build a national dealership brand."
Howell Reddick, senior vice president of Bank of America Specialty Group,
added, "We understand Recreation USA's vision for this industry and are
pleased to play a key role in financing its growth today, and as its needs
grow in the future."
The increase in the Bank of America floor plan financing line brings the
Company's overall floor plan to just under $80 million. Recreation USA said
the available limit exceeds its current needs, but provides the Company with
additional flexibility to seize opportunities in new or existing lines, as
well as providing for additional growth.
"As with any dealership, Recreation USA is judged by the quality -- and
quantity -- of inventory we carry," Huneycutt said. "Consumers expect a wide
array of choices, and we must have those high-demand products in stock for a
premier customer experience. In addition, obtaining a comprehensive financing
facility is a fundamental part of our business plan as we go forward with our
acquisition strategy."
In mid-1999, Recreation USA announced its intention to consolidate the
highly fragmented RV and marine dealership industries in its quest to reach
$1 billion in revenues. The Company, which has purchased nine retail stores
in the past eight months, intends to build the nation's first dominant
national brand by:
* Carrying a diverse range of high-quality and in-demand products,
including more than 60 brands of RVs and more than 10 brands of boats, at
price points designed to appeal to a wide range of consumers.
* Demonstrating a strong commitment to customer service before, during
and after the sale.
* Focusing on service and repair, an area that remains one of the chief
complaints among consumers.
* Offering a full e-commerce site (http://www.recusa.com ) that features an
online "virtual dealership," making Recreation USA the first in the industry
to marry bricks and clicks.
* Employing a knowledgeable staff of sales associates who can arrange
financing, insurance, trade-ins and delivery as they finalize the sale.
"We see our new floor plan financing arrangement with Bank of America as
another step that moves us closer to becoming the place where America shops
for RVs and boats," Huneycutt said.