(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.