Camping World Holdings Reports $7B in 2022 Revenue

RV Business

LINCOLNSHIRE, Ill. – Highlighted by $7 billion in annual revenue – an increase of $53.3 million, or 0.8% – Camping World Holdings Inc. (NYSE: CWH), today )Feb. 21) reported results for the fourth quarter and full year ended Dec. 31, 2022.

Marcus Lemonis

“The last several years of strong performance has bolstered our confidence in the long-term prospects of our business,” stated Marcus Lemonis, chairman and CEO of Camping World Holdings Inc.

“In light of the short-term softening of demand and new vehicle margin compression, we recognized the need for aggressive annualized cost reductions, starting in the fall of 2022. This includes reduced headcount, the elimination or reduction of underperforming assets, locations, and business lines, while enhancing the wages and benefits of our employees,” Lemonis continued.

Full Year-over-Year Operating Highlights

Used vehicle revenue was a record $1.9 billion, an increase of $191.4 million, or 11.3%, while new vehicle revenue declined $71.4 million, or 2.2%.
Used vehicle unit sales were a record 51,325 units, an increase of 2,387 units, or 4.9%, while new vehicle unit sales were 70,429 units, a decrease of 7,348 units, or 9.4%.
Same store used vehicle unit sales increased slightly by 0.1%, while same store new vehicle unit sales decreased 13.6%.
Gross profit was $2.3 billion, a decrease of $194.0 million, or 7.9%. Total gross margin was 32.5%, a decrease of 306 basis points driven primarily by the higher cost of new vehicles, which was partially offset by the higher average selling price of new vehicles. Used vehicle gross margin decreased to a lesser extent.
Floor plan interest expense was $42.0 million, an increase of $27.9 million, or 197.9%, as a result of the rise in interest rates and the increased average principal balance from higher new vehicle costs, higher borrowings on used vehicles, and relief from the new vehicle supply constraints that existed during much of 2021.
Net income was $351.0 million, a decrease of $291.0 million, or 45.3%.
Diluted earnings per share of Class A common stock was $3.22 in 2022 versus $6.07 in 2021. Adjusted earnings per share – diluted(1) of Class A common stock was $4.17 in 2022 versus $6.88 in 2021.
Adjusted EBITDA(1) was $653.4 million, a decrease of $288.7 million, or 30.6%.
New and used vehicle inventories were $1.9 billion, an increase of $360.1 million. This increase was driven primarily by higher new vehicle unit costs, an additional 14 dealership locations, restocking to normalized levels of new vehicles and, to a lesser extent, the strategic growth of our used vehicle business.
The company paid an annualized cash dividend of $2.50 per share of Class A common stock, an increase of $1.02 per share of Class A common stock.

Fourth Quarter-over-Quarter Operating Highlights

Revenue was $1.3 billion, a decrease of $97.3 million, or 7.1%.
Used vehicle revenue was $392.6 million for the fourth quarter, a decrease of $19.7 million, or 4.8%, and new vehicle revenue declined $72.6 million, or 13.1%. Used vehicle unit sales were 10,334 units for the fourth quarter, a decrease of 335 units, or 3.1%.
Same store used vehicle unit sales decreased 7.6% for the fourth quarter, and same store new vehicle unit sales decreased 14.1%.
Gross profit was $391.6 million, a decrease of $93.0 million, or 19.2%. Total gross margin was 30.6%, a decrease of 459 basis points driven primarily by the higher cost of new vehicles and the lower average selling price of new vehicles. Used vehicle and products, service and other gross margins decreased to a lesser extent. The products, service and other gross margins declined primarily from clearance and discounting on certain product categories to reduce our retail inventory levels and supply chain costs.
Floor plan interest expense was $17.5 million, an increase of $13.3 million, or 315.6%, as a result of the rise in interest rates and the increased average principal balance from higher new vehicle costs, higher borrowings on used vehicles, and relief from the new vehicle supply constraints that existed during much of 2021.
At or around Dec. 31, 2022, the company completed the conversion of certain subsidiaries to limited liability companies resulting in income tax expense of $28.4 million, which was primarily for the write-off of deferred tax assets, net of the release of valuation allowance. The company expects this conversion will reduce its ongoing income tax expense and reduce its ongoing tax distribution requirements.
Net loss was $57.2 million, a decrease of income of $116.5 million, or 196.5%.
Diluted loss per share of Class A common stock was $0.79 in 2022 versus diluted earnings per share of Class A common stock of $0.54 in 2021. Adjusted loss per share – diluted(1) of Class A common stock was $0.20 in 2022 versus adjusted earnings per share – diluted(1) of Class A common stock of $0.90 in 2021.
Adjusted EBITDA(1) was $20.2 million, a decrease of $111.3 million, or 84.6%.

NOTE: (1) Adjusted (loss) 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 fourth quarter and fiscal year 2022 financial results is scheduled for 7:30 am Central Time, Feb. 22, 2023. 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# 13735202. 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.

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

Source: https://rvbusiness.com/camping-world-holdings-reports-7b-in-2022-revenue/