The Recreation Vehicle Industry Association commissioned an Economic Impact Study on the RV industry, released on June 7, 2016. The study found that the RV industry contributes about $49.7 billion in economic output or 0.28 percent of the Gross Domestic Product. Through its production and distribution linkages, the industry impacts firms in 426 of the 440 sectors of the United States economy.
Nationwide, the industry is responsible for 216,170 jobs, both directly and inderectly, creating an economic impact of $37.5 billion. The full study results, along with each individual state and congressional district's economic impact is available on the website by clicking here .
Fri Mar 10, 2017
TROY, Michigan - Horizon Global Corporation has reported fourth quarter and full year financial results for 2016, culminating in a net sales increase of 6.6 percent.
During the fourth quarter, the company completed the acquisition of Westfalia, adding world class brands and products as well as design and manufacturing expertise to the company’s position as a global leader in the towing and trailering industry.
“The close of 2016 marks the achievement of two significant milestones,” Horizon Global President and CEO Mark Zeffiro says. "We completed our first calendar year as an independent public company, and second, we achieved one of our key financial priorities by delivering 10 percent adjusted segment operating margin, excluding Westfalia.
“We made great progress in the last 12 months, including the acquisition of Westfalia, a European leader in towing products that addresses a geographic gap in our global footprint. Similar to the Horizon Global legacy business, Westfalia experiences volume seasonality in both the OE and aftermarket channels, with the fourth quarter historically representing the lowest quarterly revenue during the calendar year. We remain focused on the integration of the Westfalia business, with a continued expectation of realizing €9 million of synergies in 2017.”
2016 Fourth Quarter Segment Highlights
In connection with the acquisition of Westfalia and beginning with the fourth quarter and full year 2016, Horizon Global will report results for three reportable segments based on geography. These segments include: Horizon Americas, Horizon Asia-Pacific, and Horizon Europe-Africa.
Horizon Americas. Net sales increased 6.6 percent on a reported basis, with strong volume in the OE, e-commerce and retail channels. Operating profit decreased $2.9 million to $3.1 million, or 3.3 percent of net sales, attributable, in part, to the impairment of certain intangible assets in the Brazil business. Adjusted operating profit decreased $1.9 million to $6.1 million, or 6.5 percent of net sales.
Horizon Asia-Pacific. Net sales increased 7 percent on a reported basis, driven by a new customer in the industrial channel and strong growth in the retail channel. Operating profit decreased $0.4 million to $2.4 million, or 9.2 percent of net sales, as a result of ramp-up costs associated with the new customer and a large OE recovery during 2015 that did not recur.
Horizon Europe-Africa. Net sales increased 568.9 percent on a reported basis, driven by the acquisition of Westfalia and strong growth in the OE channel, both in new and existing programs. Operating loss increased $12.9 million to $13.8 million, or 21.5 percent of net sales, as a result of the acquisition of Westfalia and the impacts of purchase accounting and transaction-related expenses, including professional fees and severance. Adjusted operating loss increased $2.1 million to $3 million or 4.6 percent of net sales.
“Our goal of 10 percent adjusted segment operating margin, excluding Westfalia, is now behind us and we are driving toward our next goal of achieving a 10 percent adjusted operating profit margin for our entire enterprise, including Westfalia,” Zeffiro says. “We are confident that the integration of Westfalia will contribute to the achievement of this next milestone. Margin improvement remains our No. 1 priority.
“In February of this year, we successfully completed a common stock offering and convertible senior notes offering, raising approximately $210 million in gross proceeds in the aggregate to strengthen the balance sheet, reduce interest costs and provide us with greater financial flexibility to pay down debt and pursue strategic acquisition opportunities. As we move through 2017, we are focused on expanding our market share, leveraging our strengths in both the OE and e-commerce channels and driving continuous improvement across our global operations as we work to achieve a profitable and sustainable business mix and deliver future financial performance that will reward our shareholders.”
2017 Full-Year Outlook
The company expects solid performances from each of its businesses in 2017, driven by the continued positive momentum across its brand portfolio and further expansion of market share in both the OE and e-commerce channels. In light of these expectations and the anticipated full-year benefits from the addition of Westfalia, the integration of the European operations and the impact of facilities consolidation and systems integration, the company is offering the following guidance for fiscal year 2017:
Revenue growth of 30 to 35 percent
Operating profit between $40 million and $46 million, up 370 to 410 basis points
Adjusted operating profit between $53 million and $59 million, up 60 to 100 basis points
Operating cash between $40 million and $50 million
Diluted earnings per share between $0.46 and $0.56
Adjusted diluted earnings per share between $0.90 and $1
Conference Call Details
Horizon Global hosted a conference call regarding fourth quarter and full year 2016 earnings on Thursday, March 9.
A replay of the call will be available on Horizon Global’s website or by phone by dialing 800-585-8367 and from outside the U.S. at 404-537-3406. Please use the conference identification number 60680926. The telephone replay will be available about two hours after the end of the call and continue through March 23.