Camping World Holdings, Inc., America’s Recreation Dealer, on Tuesday reported results for the first quarter ended March 31, 2022.
Marcus Lemonis, chairman and CEO of Camping World Holdings, Inc. stated, “I am pleased with how the year has started, particularly in light of general macroeconomic conditions. We know how to navigate when things change up or down. I’ve been reminded of the value of our nimbleness and I am very pleased with how our team pivots and adjusts to maximize profitability.”
First Quarter Operating Highlights
Revenue was a record $1.7 billion, an increase of $104.6 million, or 6.7%.
- Gross profit was $560.2 million, an increase of $39.7 million, or 7.6%, and gross margin was 33.7%, an increase of 29 basis points.
- Net income of $107.3 million included $8.8 million of pre-tax accelerated intangible asset amortization related to brand transitions and an increase of $5.6 million in pre-tax equity-based compensation expense in 2022 due in part to certain management separations. Additionally, $19.0 million of deferred income tax benefits in 2021 contributed to the net income decrease of $40.1 million, or 27.2%.
- Diluted earnings per share of Class A common stock was $1.02 in 2022 versus $1.40 in 2021, in large part due to the accelerated amortization, equity-based compensation, and 2021 income tax benefits described above. Adjusted earnings per share – diluted (1) of Class A common stock was $1.15 in 2022 versus $1.40 in 2021.
- Adjusted EBITDA(1) was $182.1 million, a decrease of $7.2 million, or 3.8%.
- New and used vehicle inventories were $1.8 billion, an increase of $ 938.3 million. This increase was driven by strategic growth of its used vehicle business, an additional 14 locations, and the easing of new vehicle supply chain constraints in its core categories experienced in much of the prior year.
- On March 29, 2022, the company paid its 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.
Stock Repurchase Program
During the three months ended March 31, 2022, the company repurchased 2,592,524 shares of Class A common stock under its stock repurchase program for approximately $79.8 million, including commissions paid, at a weighted average price per share of $30.76, which is recorded as treasury stock on the consolidated balance sheets. As of March 31, 2022, the remaining approved amount for repurchases of Class A common stock under the stock repurchase program was approximately $120.2 million and the program expires on December 31, 2025. Between March 31, 2021 and March 31, 2022, total common units in CWGS, LLC, including those held by CWH and the non-controlling interest, decreased 5.4 million to 83.7 million.
Earnings Conference Call and Webcast Information
A conference call to discuss the company’s first-quarter 2022 financial results is scheduled for May 4, 2022, at 7:30 am Central Time. Investors and analysts can participate in the conference call by dialing 1-877-425-9470 (international callers please dial 1-201-389-0878) and using conference ID# 13729203.
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 March 31, 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 financial results for the first quarter ended March 31, 2022 to financial results from the first quarter ended March 31, 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. Its vision is to build a long-term legacy business that makes RVing fun and easy, and Camping World and Good Sam brands have been serving RV consumers since 1966. It strives to build long-term value for 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 customers, the RV lifestyle, and the communities in which it operates.
Camping World also believes that its Good Sam organization and family of programs and services uniquely enables it to connect with 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.