(August 7, 2019)— Camping World Holdings, Inc. today reported results for the second quarter ended June 30, 2019.
Second quarter highlights and year-over-year financial comparisons:
- Revenue increased 2.3% to $1.474 billion;
- Gross profit decreased 0.6% to $410.0 million;
- Income from operations, net income and diluted earnings per share of Class A common stock were $90.3 million, $52.6 million, and $0.46, respectively;
- Adjusted EBITDA decreased 27.9% to $99.2 million; and
- The number of Active Customers increased 25.8% to 5.25 million and the number of Good Sam Club memberships increased 13.4% to approximately 2.18 million.
Second Quarter 2019 Results
Good Sam Services and Plans Segment
- Segment revenue) increased 5.6% to $44.7 million;
- Segment gross profit increased 5.2% to $25.9 million and segment gross margin decreased 23 basis points to 58.1%; and
- Segment income(4) increased 2.4% to $21.2 million.
RV and Outdoor Retail Segment
- Segment revenue increased 2.2% to $1,429.7 million;
- Same store revenue decreased 6.3% to $1.2 billion
- Segment gross profit decreased 1.0% to $384.0 million and segment gross margin decreased 85 basis points to 26.9%;
- Segment income decreased 24.2% to $75.7 million;
- Vehicle units sold increased 0.2% to 33,715 units;
- New vehicle units sold decreased 6.3% to 22,906 units
- Used vehicle units sold increased 17.6% to 10,809 units
- Average selling price per vehicle unit sold increased 0.4% to $30,391;
- New vehicles increased 2.9% to $34,003 per unit
- Used vehicles decreased 0.8% to $22,736 per unit
- Same store vehicle units sold decreased 7.8% to 29,426 units;
- New vehicle same store units sold decreased 15.0% to 19,753 units
- Used vehicle same store units sold increased 11.6% to 9,673 units
- Gross profit per vehicle sold including finance and insurance decreased slightly to $8,268;
- Finance and insurance revenue as a percentage of total vehicle revenue increased 71 basis points to 12.5%;
- New vehicle inventory per dealership location decreased 9.9% to $6.6 million from December 31, 2018;
- Products, service and other revenue increased 5.6% to $264.4 million and gross profit decreased 6.3% to $95.8 million;
- Same store products, service and other revenue decreased 10.8% to $144.9 million
- Good Sam Club revenue increased 19.0% to $12.4 million and gross profit increased 29.5% to $9.5 million; and
- Good Sam Club memberships increased 13.4% to approximately 2.18 million
- At June 30, 2019, the Company operated a total of 227 RV and outdoor retail locations, with 151 of these selling new and/or used RV vehicles.
Select Balance Sheet and Cash Flow Items
The Company’s working capital and cash and cash equivalents as of June 30, 2019 were $498.9 million and $101.3 million, respectively. Total inventories decreased 0.7% to $1.5 billion as compared to December 31, 2018, driven by a 1.7% decrease in new RVs and a 2.2% decrease in used RVs, partially offset by a 2.1% increase in products, parts, accessories and miscellaneous inventory. At June 30, 2019, the Company had $52.8 million of borrowings under its revolving line of credit as part of its Floor Plan Facility, $1.2 billion of term loans outstanding under the Senior Secured Credit Facilities, $21.0 million outstanding under the Real Estate Facility, and $813.6 million of floor plan notes payable under the Floor Plan Facility.
Camping World and Good Sam haven’t been a value for years. They do not provide a quality product/service and people are voting with their wallet and walking away. Seems like every RV story I read about them has a negative slant to it…perception is reality.
Bought stock and it has gone down hill since. Not worth anything.
I only go there to find new products that I can buy online for about half the cost. When the CEO came out a while back and said he does not want people that believe in Traditional Values to shop at his stores I took him seriously. Everything they sell can be found online for much less anyway. Plus its gotten so that moble RV mechanics are cheaper for the same work at the CW shops. So someone tell me why I should shop there? They don’t support the RVer but fleece them.
The last few times I have been in CW the staff was very friendly and helpful. Several years ago this was not the case. The CW management is working on improving the customer experience and selection of merchandise.
One potential reason for the increase in Good Sam memberships can be “free” memberships they provide upon purchase of an RV that inflates the numbers. When we purchased our new RV from CW 18 months ago, it included a three year “free” Good Sam membership. Unsure if the practice continues or if it applies to the purchase of used RV’s as well.
An additional reason why memberships increased is because membership is now open to towables owners also…
Rory, it has always been open to tankless. I think you are thinking about FMCA.
That should be towables! God bless spell check.
We have found Good Sam insurance a good value. They have done exactly what we paid for with them. Camping World on the other hand, we have found two who were very good and did exactly what we wanted, one in Hershey Pa. the other in Chattanooga Tn. The other Camping World, (approx 20) were very poor in customer service and had a terrible attitude towards customers. As a result we have stopped going to Camping World. I also understand it is so hard to find good people to work on RV’s
The CW in Chattanooga was an indebendant dealer for years-since the early seventies. I’m glad to hear they are still good.
It seems like with all the doom and gloom reports re: CW’s declining finances, their FR says their profits increased. Even the Good Sam segment has increased memberships. Either the articles I’ve been reading are false or the books have been cooked. The majority of RV’ers I know (at least 95%) want nothing to do with anything related to CW. I guess time will tell.
You have to look at the debt to equity ratio….terrible!
Their shares are down 30% this year. Don’t need to know anymore than that.