RVIA’s financial condition, as presented during the RVIA Annual Meeting’s general session by new treasurer Gregg Fore, president of Elkhart, Ind.-based Dicor Corp., looks solid for 2006 and beyond – although expectations for next year are relatively conservative.
RVIA, as of June 30, had no short- or long-term debt, Fore told the trade group’s leadership on Sept. 23 at the St. Regis Resort in Monarch Beach, Calif. And its total assets of $21.6 million were nearly 15% greater than at the same time in 2005 “as equity positions have improved and with the additional surplus provided over the past 36 months” by fairly strong business. Liabilities totaled $9.4 million.
The national trade association also reported that Go RVing deferred assessments – monies collected but not yet spent on Go RVing advertising – had grown from $3.4 million in June of 2005 to $4.2 million this June as more seals were sold in the first nine months of the current fiscal year than had been expected.
Anticipated year-end 2006 revenues are $14.7 million – about $650,000 more than budgeted due largely to robust trade space and seal sales. Trade shows, Fore pointed out, represent six out of every 10 revenue dollars for the association, with nearly 80% of that coming from manufacturer space sales at Louisville and Pomona. Likewise, expenses this year are expected to total almost $12.2 million, yielding a projected net surplus for the year of $1.7 million.
One particularly positive trend, according to Fore, has to do with membership equity, essentially the association’s reserves that have been accumulated over the years.
“At the close of our fiscal year in 2002,” he said, “membership equity had declined to $4.6 million, due largely to a slow-down in RV shipments. The gain expected this year will establish our net equity at a new all-time record high of nearly $10.5 million and represents approximately three-fourths of our annual expense requirements for next year.”
In summary, Fore pointed out that RVIA has outperformed its budget in each of the past five years. “Over this period,” Fore told the annual meeting attendees, “operations provided a favorable variance to budget of nearly $3.5 million, more than a half a million dollars better in this year alone.”
In line with RVIA’s own forecasts for a 10.7% dip in wholesale shipments for next year due to a variety of economic variables, the trade association’s fiscal 2007 budget calls for total revenues of $13.1 million versus expenses of $13 million. “And in keeping with our conservative nature,” said Fore, “that would provide a small net surplus for next year.”