RVIA Economic Impact Study

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 .

Horizon Global Announces 11.6 Percent Decrease in Net Sales

Thu May 4, 2017

147809949933617.jpgHorizon Global Corporation has reported first quarter 2017 financial results, which showed an 11.6 percent decrease in net sales in the Americas. The company remains positive regarding its outlook and has increased earnings per share guidance for the full year 2017, according to a press release.

“During the first quarter, total company revenue growth was over 39 percent, with double-digit organic growth in both our Europe-Africa and Asia-Pacific operations,” Horizon Global CEO Mark Zeffiro says. "This revenue growth, coupled with lower-than-planned corporate costs, was more than offset by lower-than-expected performance in our Americas business. The slow start to the year in the Americas was driven by several factors, including overall market conditions with softness in GDP growth and lower retail sales. The first quarter also saw a shift in the timing of customer orders into the second quarter of this year, with this shift partially attributable to the ramp up of our new ERP system in the Americas. Importantly, Horizon Americas entered the second quarter with significant customer orders ready for delivery.

“We remain on track with our company’s performance expectations for the first half of the year. The overall integration of the Westfalia business is progressing as planned, and we are confident we will achieve synergy benefits during the year of approximately €9 million. We are seeing financial and commercial benefits as the industry leader in the European towing and trailering market beyond the planned synergies from the integration.

“We continue to drive progress on our key financial priorities - expanding our operating margin, improving our capital structure and organically growing the business to extract maximum value for our shareholders. Our confidence in our business remains strong, as evidenced by today’s announcement of the company’s share repurchase program and the increase in our full-year earnings per share guidance.”

Horizon Global reports results for three reportable segments based on geography. These segments include: Horizon Americas, Horizon Europe-Africa and Horizon Asia-Pacific.

Horizon Americas. Net sales decreased 11.6 percent, driven by several factors, including a shift in customer orders from the first quarter into the second quarter and the impact of the new ERP system on order processing in North America. Operating profit decreased $4.9 million to $5.2 million, or 5.3 percent of net sales, attributable, in part, to lower sales volumes and an unfavorable product sales mix.

Horizon Europe-Africa. Net sales increased by $65.8 million, driven by the acquisition of Westfalia and strong growth in the OE channel, both in new and existing programs, which resulted in double-digit organic growth. Operating profit decreased $0.7 million to $0.4 million, or 0.4 percent of net sales, as a result of higher severance and restructuring costs associated with the integration of Westfalia. Adjusted operating profit increased to $1.6 million or 2 percent of net sales.

Horizon Asia-Pacific. Net sales increased 18.1 percent, or 13.5 percent on a constant currency basis, driven by a new customer in the industrial channel and strong growth in the OE channel. Operating profit increased $0.8 million to $3.1 million, or 11.4 percent of net sales, on increased sales volumes. This 160 basis point improvement resulted from productivity initiatives and lower input costs driven by a stronger Australian dollar.

In April, the Horizon Global Board of Directors authorized a share repurchase program. Under the program, Horizon Global may repurchase up to 1.5 million shares of the company’s common stock in amounts and at prices as the company deems appropriate, on the open market or through privately negotiated transactions, depending on market conditions and subject to other factors.

“We strongly believe that our growth prospects and long-term strategy are not reflected in the company’s current share price," Zeffiro says. "This share repurchase program offers us the flexibility to enhance shareholder value through opportunistic repurchases of our common stock and demonstrates our steadfast confidence in the strength of our business and our team’s ability to execute against our strategic plan.

“We are raising our full-year earnings per share guidance. We are committed to drive growth across our multiple geographies, confident in our global team’s ability to execute against our plan and motivated by our desire to deliver value to our shareholders. We remain focused on margin improvement and our goal of achieving a 10 percent adjusted operating profit margin for the enterprise.”

For second quarter 2017, the company expects:

Revenues between $235 million to $245 million
Diluted earnings per share between $0.61 and $0.66
Adjusted diluted earnings per share between $0.67 and $0.72
For full-year 2017, the company expects:

Revenue growth of 30 to 35 percent; unchanged
Operating profit between $40 million and $46 million, up 370 to 410 basis points; unchanged
Adjusted operating profit between $53 million and $59 million, up 60 to 100 basis points; unchanged
Operating cash between $40 million and $50 million; unchanged
Diluted earnings per share between $0.50 and $0.60; increased
Adjusted diluted earnings per share between $0.94 and $1.04; increased

A replay of the Horizon Global conference 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 1710291.