Camping World Q3 Sees Record 14,460 Used Units Sold

LINCOLNSHIRE, Ill. – Camping World Holdings Inc. (NYSE: CWH) America’s recreation dealer, on Nov. 1 reported results for the third quarter ended Sept. 30.

Marcus Lemonis, chairman and CEO of Camping World Holdings Inc. stated, “In this current environment, our company is focused on growing our overall used RV business, strategic and opportunistic dealership acquisitions and tightening SG&A and capital expenditures with precision.”

Third Quarter Operating Highlights

• Revenue was $1.9 billion for the third quarter, a decrease of $60.9 million, or 3.2%, driven primarily by a $45.7 million reduction in product revenues from categories we exited in 2021 including fishing, hunting, and apparel.
• Used vehicle revenue was a record $526.0 million for the third quarter⁽¹⁾, an increase of $6.4 million, or 1.2%, while new vehicle revenue declined $30.2 million, or 3.5%. Used vehicle unit sales were a record 14,460 units for the third quarter, an increase of 829 units, or 6.1%.
• Same store used vehicle unit sales increased 2.0% for the third quarter, while same store new vehicle unit sales decreased 7.2%.
• Gross profit was $593.7 million, a decrease of $97.7 million, or 14.1%, and total gross margin was 32.0%, a decrease of 408 basis points driven primarily by the higher cost of new vehicles. Used vehicle gross margin decreased to a lesser extent.
• Net income was $102.9 million, a decrease of $86.4 million, or 45.6%.
• Diluted earnings per share of Class A common stock was $0.97 in 2022 versus $1.72 in 2021. Adjusted earnings per share – diluted⁽²⁾ of Class A common stock was $1.07 in 2022 versus $1.98 in 2021.
• Adjusted EBITDA⁽²⁾ was $173.4 million, a decrease of $114.6 million, or 39.8%.
• New and used vehicle inventories were $1.6 billion, an increase of $491.1 million from September 30, 2021. This increase was driven primarily by restocking to normalized levels of new vehicles and, to a lesser extent, the strategic growth of our used vehicle business and an additional eight dealership locations.
• On September 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.

Marcus Lemonis

⁽¹⁾ Trailing twelve-month (“TTM”) used vehicle revenue as of Sept. 30 and 2021 was $1.9 billion and $1.5 billion, respectively. The TTM used vehicle revenue as of Sept. 30 is comprised of $1.5 billion and $0.4 billion for the nine months ended Sept. 30 and three months ended December 31, 2021, respectively. The TTM used vehicle revenue as of September 30, 2021 is comprised of $1.3 billion and $0.2 billion for the nine months ended September 30, 2021 and three months ended December 31, 2020, respectively.

⁽²⁾ 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 third quarter 2022 financial results is scheduled for November 2, 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# 13732920. 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 Sept. 30 and December 31, 2021, the company owned 50.1% 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 third quarter ended Sept. 30 to our financial results from the third quarter ended September 30, 2021.

Source: https://rvbusiness.com/camping-world-q3-sees-record-14460-used-units-sold/