Camping World Holdings, Inc., America’s Recreation Dealer, on Tuesday reported results for the fourth quarter and full-year ended December 31, 2021.
“Since we took the Company public at the end of 2016, we have almost doubled our annual revenue to $6.9 billion and more than tripled our annual net income and Adjusted EBITDA (1) to $642 million and $942 million, respectively. It is our management team’s plan to continue positioning the Company for growth over the next five years. The long term trends along with our strong cash flow have us focused on three things: growing our business, repurchasing our shares, and returning capital to our shareholders,” Marcus Lemonis, Chairman and CEO of Camping World Holdings, Inc. stated.
Full Year-over-Year Operating Highlights
- Revenue was $6.9 billion, an increase of $1.5 billion, or 26.9%.
- Gross profit was $2.5 billion, an increase of $753.8 million, or 44.3%, and gross margin was 35.5%, an increase of 427 basis points.
- Net income was $642.1 million, an increase of $297.9 million, or 86.5%. Net income margin was 9.3% for 2021 versus 6.3% for 2020.
- Diluted earnings per share of Class A common stock was $6.07 in 2021 versus $3.09 in 2020 and adjusted earnings per share – diluted(1) of Class A common stock was $6.88 in 2021 versus $3.66 in 2020.
- Adjusted EBITDA was $942.1 million, an increase of $377.1 million, or 66.8%, and adjusted EBITDA margin was 13.6% for 2021 versus 10.4% for 2020.
- Vehicle inventories were $1.5 billion, an increase of $645.8 million: new vehicle inventories were $1.1 billion, an increase of $417.8 million, and used vehicle inventories were $406.4 million, an increase of $228.1 million.
- On June 3, 2021, we refinanced our senior secured credit facilities, reducing our outstanding principal by $38.6 million, extending the term to 2028, and lowering the applicable margin rate by 25 bps. On December 20, 2021, we entered into an amendment to the new senior secured credit facilities to increase the principal amount of the new term loan facility by $300.0 million.
- On September 30, 2021, we entered into an Eighth Amended and Restated Credit Agreement governing our floor plan facility which allows us to borrow $1.70 billion of floor plan notes payable with up to $70.0 million under the revolving line of credit, and extended the term to 2026.
- During 2021, we opened 16 locations, which included twelve RV dealerships acquired in 2021, three RV dealerships acquired in 2020, and one greenfield location. We currently have operating dealerships, agreements to acquire land or existing RV dealerships, or have dealerships under construction in 46 of the 48 contiguous states.
- During the year, we increased our regular quarterly dividend to holders of our Class A common stock from $0.23 per share to $0.50 per share, or from $0.92 per share to $2.00 per share on an annualized basis. On February 18, 2022, the Company’s Board of Directors authorized a twenty-five percent increase to our regular quarterly dividend from $0.50 per share to $0.625 per share, or from $2.00 per share to $2.50 per share on an annualized basis.
Fourth Quarter-over-Quarter Operating Highlights
- Revenue was a fourth-quarter record of $1.4 billion, an increase of $243.8 million, or 21.5%.
- Gross profit was $484.6 million, an increase of $106.6 million, or 28.2%, and gross margin was 35.2%, an increase of 184 basis points.
- Net income was $59.3 million, an increase of $18.9 million, or 46.9%. Net income margin was 4.3% for the fourth quarter of 2021 versus 3.6% for the fourth quarter of 2020.
- Diluted earnings per share of Class A common stock was $0.54 for the fourth quarter of 2021 versus $0.34 for the fourth quarter of 2020 and adjusted earnings per share – diluted(1) of Class A common stock was $0.90 for the fourth quarter of 2021 and $0.48 for the fourth quarter of 2020.
- Adjusted EBITDA(1) was $131.5 million, an increase of $40.3 million, or 44.2%, and adjusted EBITDA margin(1) was 9.5% for the fourth quarter of 2021 versus 8.0% for the fourth quarter of 2020.
Stock Repurchase Program
During the three months and the year ended December 31, 2021, the company repurchased 1,779,416 and 3,988,881 shares of Class A common stock under this program, respectively, for approximately $69.4 million and $156.3 million, including commissions paid, at a weighted average price per share of $39.02 and $39.17, respectively, which is recorded as treasury stock on the consolidated balance sheets. As of December 31, 2021, the remaining approved amount for repurchases of Class A common stock under the share repurchase program was approximately $47.2 million.
On January 20, 2022, the Company’s Board of Directors authorized an increase to the Company’s stock repurchase program to allow for the repurchase of an additional $152.7 million of the company’s Class A common stock and extended the expiration date of the program to December 31, 2025. Following this increase in authorization, approximately $200 million remained available for future repurchases.
Earnings Conference Call and Webcast Information
A conference call to discuss the Company’s fourth quarter and fiscal year 2021 financial results is scheduled for February 23, 2022, at 7:30 am Central Time. Investors and analysts can participate in the conference call by dialing (866) 239-9838 or (323) 794-2551 and using conference ID# 2143907. 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.