A 10-for-1 reverse stock split was enacted Tuesday (Aug. 7) by Holiday RV Superstores Inc., the dealership chain doing business as Recreation USA.
The reverse stock split means the number of outstanding shares of Holiday RV Superstores stock was reduced to around 983,000 shares, from 9.8 million.
Holiday RV Superstores stock closed at 37 cents a share Monday. The stock opened today (Aug. 8) at $2.50 a share.
The reverse stock split was enacted in an attempt to maintain the company’s listing on the Nasdaq SmallCap Market. For the next 19 stock market trading days, Holiday RV Superstores shares will trade under the symbol RVEED. Thereafter, it will resume trading under the symbol RVEE.
Although consultant firm Spader Business Management is reporting that the average large RV dealership had sharply higher profits earlier this year, Holiday RV Superstores lost money.
The average large RV dealership, which the Spader firm defines as having more than $10 million in annual sales, earned about $396,000 during the first five months of this year, a 49% increase when compared with the same period a year earlier.
Meanwhile, Holiday RV Superstores reported a net loss of $973,000 for the three months ended April 30 and a net loss of $5.4 million for the six months ended April 30, according to Securities & Exchange Commission (SEC) documents.
Holiday RV Superstores had $38.3 million in sales revenue during the six months ended April 30.