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Camping World Holdings, Inc. Reports Record Second Quarter Revenue and Second Strongest Second Quarter Earnings Since Inception

LINCOLNSHIRE, IL, August 02, 2022--(BUSINESS WIRE)--Camping World Holdings, Inc. (NYSE: CWH) (the "Company" or "CWH"), America’s Recreation Dealer, today reported results for the second quarter ended June 30, 2022.

Marcus Lemonis, Chairman and CEO of Camping World Holdings, Inc. stated, "We are pleased with the sale of almost 39,000 new and used RVs which contributed to record revenues for the second quarter. We believe our team has both the focus and experience to navigate our business through changes in market conditions as evidenced by our solid financial results."

Second Quarter Operating Highlights

  • Revenue was a record $2.2 billion for the second quarter, an increase of $106.8 million, or 5.2%.

  • Gross profit was $716.8 million, a decrease of $43.1 million, or 5.7%, and gross margin was 33.1%, a decrease of 380 basis points driven primarily by the higher cost of new vehicles.

  • Net income was $198.0 million, a decrease of $48.1 million, or 19.5%.

  • Diluted earnings per share of Class A common stock was $2.01 in 2022 versus $2.33 in 2021. Adjusted earnings per share - diluted(1) of Class A common stock was $2.16 in 2022 versus $2.51 in 2021.

  • Adjusted EBITDA(1) was $277.7 million, a decrease of $55.6 million, or 16.7%.

  • New and used vehicle inventories were $1.7 billion, an increase of $782.5 million from June 30, 2021. This increase was driven primarily by the easing of new vehicle supply chain constraints in our core categories experienced in much of the prior year. To a lesser extent, the increase was also driven by the strategic growth of our used vehicle business and an additional three locations.

  • On June 29, 2022, the Company paid our regular quarterly dividend of $0.625 per share of Class A common stock, or $2.50 per share on an annualized basis.

________________________

(1)

Adjusted earnings per share – diluted and adjusted EBITDA are non-GAAP measures. For a reconciliation of these

non-GAAP measures to the most directly comparable GAAP measures, see the "Non-GAAP Financial Measures" section later

in this press release.

Earnings Conference Call and Webcast Information

A conference call to discuss the Company’s second quarter 2022 financial results is scheduled for August 3, 2022, at 7:30 am Central Time. Investors and analysts can participate on the conference call by dialing 1-877-407-9039 (international callers please dial 1-201-689-8470) and using conference ID# 13730725. Interested parties can also listen to a live webcast or replay of the conference call by logging on to the Investor Relations section on the Company’s website at http://investor.campingworld.com. The replay of the conference call webcast will be available on the investor relations website for approximately 90 days.

Presentation

This press release presents historical results for the periods presented for the Company and its subsidiaries, which are presented in accordance with accounting principles generally accepted in the United States ("GAAP"), unless noted as a non-GAAP financial measure. The Company’s initial public offering ("IPO") and related reorganization transactions ("Reorganization Transactions") that occurred on October 6, 2016 resulted in the Company as the sole managing member of CWGS Enterprises, LLC ("CWGS, LLC"), with sole voting power in and control of the management of CWGS, LLC. The Company’s position as sole managing member of CWGS, LLC includes periods where the Company has held a minority economic interest in CWGS, LLC. As of June 30, 2022 and December 31, 2021, the Company owned 49.8% and 51.2%, respectively, of CWGS, LLC. Accordingly, the Company consolidates the financial results of CWGS, LLC and reports a non-controlling interest in its consolidated financial statements. Unless otherwise indicated, all financial comparisons in this press release compare our financial results for the second quarter ended June 30, 2022 to our financial results from the second quarter ended June 30, 2021.

About Camping World Holdings, Inc.

Camping World Holdings, Inc., headquartered in Lincolnshire, IL, (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. With over 185 locations in 42 states, Camping World has grown to become prime destinations for everything RV.

For more information, please visit http://www.CampingWorld.com.

Forward-Looking Statements

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 macroeconomic trends and our business plans and goals, including statements regarding the strength of our business, our long-term plan, potential stock repurchases, future dividend payments and our future financial results. 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: the COVID-19 pandemic, which has had, and could have in the future, certain negative impacts on our business; risks related to the cybersecurity incident announced in February 2022; 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 sales; 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 six 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 and lending institutions; 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, 2021 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.

In addition, this press release references projected annualized dividend payments. Future declarations of quarterly dividends are subject to the determination and discretion of the Company’s Board of Directors based on its consideration of various factors, including the Company’s results of operations, financial condition, level of indebtedness, anticipated capital requirements, contractual restrictions, restrictions in its debt agreements, restrictions under applicable law, receipt of excess tax distributions from CWGS Enterprises, LLC, its business prospects and other factors that Camping World’s Board of Directors may deem relevant.

We intend to use our official Facebook, Twitter, and Instagram accounts, each at the handle @CampingWorld, as a distribution channel of material information about the Company and for complying with our disclosure obligations under Regulation FD. The information we post through these social media channels may be deemed material. Accordingly, investors should subscribe to these accounts, in addition to following our press releases, SEC filings, public conference calls and webcasts. These social media channels may be updated from time to time.

Camping World Holdings, Inc. and Subsidiaries

Consolidated Statements of Operations (unaudited)

(In Thousands Except Per Share Amounts)

Three Months Ended

Six Months Ended

June 30,

June 30,

2022

2021

2022

2021

Revenue:

Good Sam Services and Plans

$

49,593

$

46,902

$

94,152

$

87,773

RV and Outdoor Retail

New vehicles

1,077,252

1,058,778

1,912,211

1,880,754

Used vehicles

555,958

460,137

958,990

754,394

Products, service and other

278,001

305,554

492,974

556,824

Finance and insurance, net

195,407

177,685

348,785

315,939

Good Sam Club

12,421

12,751

23,916

23,904

Subtotal

2,119,039

2,014,905

3,736,876

3,531,815

Total revenue

2,168,632

2,061,807

3,831,028

3,619,588

Costs applicable to revenue (exclusive of depreciation and amortization shown separately below):

Good Sam Services and Plans

18,958

17,180

35,661

31,604

RV and Outdoor Retail

New vehicles

852,171

758,108

1,496,541

1,401,788

Used vehicles

414,169

334,829

716,994

558,022

Products, service and other

164,222

189,952

300,382

344,098

Good Sam Club

2,319

1,895

4,455

3,739

Subtotal

1,432,881

1,284,784

2,518,372

2,307,647

Total costs applicable to revenue

1,451,839

1,301,964

2,554,033

2,339,251

Gross profit:

Good Sam Services and Plans

30,635

29,722

58,491

56,169

RV and Outdoor Retail

New vehicles

225,081

300,670

415,670

478,966

Used vehicles

141,789

125,308

241,996

196,372

Products, service and other

113,779

115,602

192,592

212,726

Finance and insurance, net

195,407

177,685

348,785

315,939

Good Sam Club

10,102

10,856

19,461

20,165

Subtotal

686,158

730,121

1,218,504

1,224,168

Total gross profit

716,793

759,843

1,276,995

1,280,337

Operating expenses:

Selling, general, and administrative

441,123

432,249

826,438

769,283

Debt restructure expense

9,031

9,031

Depreciation and amortization

17,627

13,044

43,162

25,745

Long-lived asset impairment

2,618

536

2,618

1,082

Lease termination

944

1,122

1,756

Loss (gain) on sale or disposal of assets

381

10

430

(89

)

Total operating expenses

462,693

454,870

873,770

806,808

Income from operations

254,100

304,973

403,225

473,529

Other expense:

Floor plan interest expense

(8,733

)

(3,371

)

(14,999

)

(6,761

)

Other interest expense, net

(14,935

)

(11,789

)

(29,236

)

(24,012

)

Loss on debt restructure

(1,390

)

(1,390

)

Tax Receivable Agreement liability adjustment

(3,520

)

Other (expense) income, net

(72

)

(295

)

45

Total other expense

(23,740

)

(16,550

)

(44,530

)

(35,638

)

Income before income taxes

230,360

288,423

358,695

437,891

Income tax expense

(32,375

)

(42,347

)

(53,411

)

(44,390

)

Net income

197,985

246,076

305,284

393,501

Less: net income attributable to non-controlling interests

(113,674

)

(136,888

)

(176,243

)

(221,991

)

Net income attributable to Camping World Holdings, Inc.

$

84,311

$

109,188

$

129,041

$

171,510

Earnings per share of Class A common stock:

Basic

$

2.02

$

2.37

$

3.03

$

3.83

Diluted

$

2.01

$

2.33

$

3.01

$

3.74

Weighted average shares of Class A common stock outstanding:

Basic

41,737

45,983

42,640

44,790

Diluted

42,139

47,550

43,171

90,422

Camping World Holdings, Inc.

Supplemental Data

Three Months Ended June 30,

Increase

Percent

2022

2021

(decrease)

Change

Unit sales

New vehicles

23,404

26,181

(2,777

)

(10.6

%)

Used vehicles

15,555

14,319

1,236

8.6

%

Total

38,959

40,500

(1,541

)

(3.8

%)

Average selling price

New vehicles

$

46,029

$

40,441

$

5,588

13.8

%

Used vehicles

$

35,741

$

32,135

$

3,607

11.2

%

Same store unit sales(1)

New vehicles

21,163

25,000

(3,837

)

(15.3

%)

Used vehicles

14,307

13,785

522

3.8

%

Total

35,470

38,785

(3,315

)

(8.5

%)

Same store revenue(1) ($ in 000's)

New vehicles

$

981,826

$

1,017,141

$

(35,315

)

(3.5

%)

Used vehicles

516,752

447,648

69,104

15.4

%

Products, service and other

191,032

232,019

(40,987

)

(17.7

%)

Finance and insurance, net

180,189

171,916

8,273

4.8

%

Total

$

1,869,799

$

1,868,724

$

1,075

0.1

%

Average gross profit per unit

New vehicles

$

9,617

$

11,484

$

(1,867

)

...