In conjunction with Camping World Holdings, Inc. (NYSE: CWH) (the "Company") 2020 Investor Presentation conference call on Tuesday, September 15, 2020 at 11:00 a.m. Central Time, the Company has released an informational video and slide presentation that is available on the Investor Relations section of the Company’s website, which contains its long-term goals, initiatives and 2021 outlook highlights, of which are outlined below:
- The Company believes it can grow adjusted EBITDA in the mid-single digits over the next 5 years, with a goal of generating more than $500 million in Adjusted EBITDA1 in 2021, up from a projected range of $460 to $490 million in 2020. Annually, the Company is targeting a minimum Adjusted EBITDA margin1 of 7.5% and SG&A expenses as a percentage of gross profit of approximately 68% (excluding non-cash stock based compensation).
- The Company’s goal is to have a net leverage ratio of less than 2.0x by December 31, 2020.
- Currently each of the Company’s 2.1 million Good Sam Members generate average annual revenue of approximately $1,850. The Company’s goal is to grow both its file size and average revenue per member by 10% in the next 36 months.
- The Company has launched proprietary technology this year called the Good Sam RV Valuator. This technology leverages over 15 years of internal data and a proprietary algorithm to generate fair market values of all used RV inventory. The Company believes this could benefit its used vehicle revenue growth by up to an additional 5% annually.
- The Company plans to launch a new peer-to-peer RV rental marketplace in the spring of 2021. The Company believes this platform will expand the RV community, provide Good Sam Members an opportunity to yield a return on their RV investment, generate opportunities to source used inventory, and introduce the breadth of products offered by the Company to a larger consumer base.
- The Company plans to launch a mobile service marketplace in the spring of 2021 that allows Good Sam Members to schedule service appointments and request immediate support from independent repair centers and mobile service providers. In exchange for a monthly fee, independent repair centers and mobile service providers will be provided a platform to join the network. This marketplace embodies the philosophy of supporting the RV enthusiast, which is shared by our Good Sam Park Network and Good Sam Roadside Assistance.
- The Company is committed to investing heavily in product development that continues to create more efficient, more responsible, light weight, innovative and tech-savvy products both with RV’s and the products that complement them.
An informational video and slide presentation containing the Company’s future goals and initiatives can be found on the Investor Relations section of the Company’s website, under the Events and Presentation section at: https://investor.campingworld.com/events-and-presentations/event-details/2020/Investor-Day/.
Investors, analysts and other individuals are encouraged to watch the informational video and review the slide deck presentation ahead of the Company’s 2020 Investor Presentation conference call at 11:00 a.m. Central Time on Tuesday, September 15, 2020. The 2020 Investor Presentation conference call will be hosted by Marcus Lemonis, the Company’s Chairman and Chief Executive Officer, and will consist of a brief discussion of the Company’s future goals and initiatives outlined in this press release and a question and answer session.
Investors, analysts and other individuals interested in participating in the Company’s 2020 Investor Presentation Conference Call may do so by dialing 1-877-407-0792 (international callers please dial 1-201-689-8263) approximately 10 minutes prior to the start of the call. A live audio webcast of the conference call will also be available online at: https://investor.campingworld.com/events-and-presentations/default.aspx.
About Camping World
Camping World Holdings, Inc. (together with its subsidiaries) is America’s largest retailer of RVs and related products and services. Our vision is to build a long-term legacy business that makes RVing fun and easy, and our Camping World and Good Sam brands have been serving RV consumers since 1966. We strive to build long-term value for our customers, employees, and shareholders by combining a unique and comprehensive assortment of RV products and services with a national network of RV dealerships, service centers and customer support centers along with the industry’s most extensive online presence and a highly-trained and knowledgeable team of associates serving our customers, the RV lifestyle, and the communities in which we operate. We also believe that our Good Sam organization and family of programs and services uniquely enables us to connect with our customers as stewards of the RV enthusiast community and the RV lifestyle.
For more information, visit www.CampingWorld.com.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements about our business plans and goals, our expectations regarding market potential, our future financial results, demand for our products, our liquidity and working capital, capital allocation priorities, our growth strategy, new technology initiatives, our plans and our beliefs regarding our competitive position and prospects for the future. These forward-looking statements are based on management’s current expectations.
These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, the following: risks related to the COVID-19 pandemic and its impact on our business, financial results and financial condition; our ability to execute and achieve the expected benefits of our 2019 Strategic Shift; the availability of financing to us and our customers; fuel shortages or high prices for fuel; the success of our manufacturers; general economic conditions in our markets; changes in consumer preferences; competition in our industry; risks related to acquisitions and expansion into new markets; our failure to maintain the strength and value of our brands; our ability to manage our inventory; fluctuations in our same store revenue; the cyclical and seasonal nature of our business; our dependence on the availability of adequate capital and risks related to our debt; our reliance on four fulfillment and distribution centers; natural disasters, including epidemic outbreaks; risks associated with selling goods manufactured abroad; our dependence on our relationships with third party suppliers; our ability to retain senior executives and attract and retain other qualified employees; risks associated with leasing substantial amounts of space; regulatory risks; data privacy and cybersecurity risks; risks related to our intellectual property; the impact of ongoing or future lawsuits against us and certain of our officers and directors; and risks related to our organizational structure.
These and other important factors discussed under the caption "Risk Factors" in our Annual Report on Form 10-K filed for the year ended December 31, 2019, as updated in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2020, and our other reports filed with the SEC could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management’s estimates as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change, except as required under applicable law. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release.
Non-GAAP Financial Measures
Adjusted EBITDA and Adjusted EBITDA margin are not measurements of financial performance prepared in accordance with GAAP. A reconciliation for the Company’s Adjusted EBITDA and Adjusted EBITDA margin goals to the corresponding GAAP measures on a forward-looking basis cannot be provided without unreasonable efforts.
1 Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures. See "Non-GAAP Financial Measures" at the end of this release for additional information.