The evolution of the former Affinity Group Inc. (AGI) continues. The name of the company was changed on May 2 to Good Sam Enterprises LLC, and Friday (November 11) during a conference call to bondholders, CEO Marcus Lemonis offered the public a new description of the company, according to a recent report in Woodall’s Campground Management.
“Roadside assistance is the No. 1 service offered by the company today. Roadside assistance has become the product of the day,” he explained.
Good Sam offers road assistance to nearly 500,000 RV, car, and truck customers and is close to announcing major private label insurance programs with Flying J (400,000 in its database) and NASCAR (72 million fans nationwide) and is in negotiations on establishing similar programs with leading RV builders Thor Industries Inc. and Winnebago Industries Inc., Lemonis said.
In preparation for the expected membership increase, Good Sam previously announced it has hired senior industry executive Ed Thor as vice president of business development. Thor joins the company after serving for more than 10 years with Coach-Net, a roadside assistance company focused on serving the manufacturers and dealers.
The move toward the financial services emphasis is a major redirection for the company which had been best known in recent years for its magazines and club member services.
Good Sam is also parent to national RV dealer network FreedomRoads LLC and Camping World retail stores.
In its quarterly report filed on Thursday (November 10), the company reported revenues of $128.6 million for the third quarter of 2011 increased by $4.0 million, or 3.2%, from the comparable period in 2010.
Net income in the third quarter of 2011 was $2.0 million compared to $1.8 million for the same period in 2010.
For the nine months, revenues were $362.3 million, an increase of $0.6 million, or 0.2%, from the comparable period in 2010. Net income during the nine-month period was $4.6 million compared to a net loss of $6.2 million for the same period in 2010.
“We feel very good where our business is at today,” Lemonis said.
He said getting the company’s sales, general and administrative costs down has been a primary focus this year. Approximately 100 employees were let go this year from the organization, and Lemonis anticipates no more than a dozen or 15 additional layoffs systemwide.
He noted that the company incurred in the third quarter health insurance costs totaling $600,000 above the third quarter in 2010.
The company also has incurred severance costs this year as well as costs associated with the businesses it sold, he added.
The company intends to make a replay of the conference call available through November 23. The replay may be accessed by logging onto earningscall.goodsamfamily.com.
Good Sam Enterprises, LLC
Good Sam Enterprises, LLC (GSE) and its wholly owned subsidiaries, serve the safety, security, comfort, and convenience needs of the North American outdoor and recreational vehicle market. The goal of GSE is to make RV ownership and the RV lifestyle more enjoyable. With various companies, brands, products, and services, GSE targets almost every aspect of this diverse and dynamic niche market.
The corporate headquarters is located in Ventura, California. Subsidiary operations and divisions can be found at multiple locations throughout the United States.
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