Camping World reported sales grew 13.0 percent in the second quarter, helped by the launch of Gander RV Sales. Net earning declined in the period due to pre-opening expenses related to the Gander Outdoors store openings, but adjusted pro forma net income increased 10.6 percent.

Second quarter highlights and year-over-year financial comparisons include:

  • Total revenue of $1.445 billion, an increase of 13.0 percent and an all-time company high
  • Record total gross profit of $416.2 million, an increase of 11.7 percent
  • Sales of new and used recreational vehicles (“RVs”) were over $1.0 billion, an increase of 6.5 percent
  • A record 33,637 new and used RVs sold, an increase of 8.5 percent
  • A record 21,745 new towable units sold, an increase of 14.1 percent in total and 5.1 percent on a same store basis, with travel trailer same store units increasing 6.7 percent
  • Finance and insurance revenue and gross profit of $124.1 million, an increase of 23.7 percent and an all-time high
  • Good Sam Club file size of over 1.92 million members, an increase of 9.2 percent over the prior year and the highest since inception
  • Income from operations, net income and diluted earnings per share of Class A common stock decreased to $120.2 million, $81.8 million and $0.72, respectively and included $15.4 million of pre-opening expenses related to the Gander Outdoors store openings
  • Adjusted pro forma net income increased 10.6 percent to $85.6 million and adjusted pro forma earnings per fully exchanged and diluted share increased 6.8 percent to $0.96
  • Adjusted EBITDA decreased 1.2 percent to $140.2 million

Marcus A. Lemonis, chairman and chief executive officer, stated, “Our RV business is on pace for another record year. While the early part of the RV selling season was impacted by unseasonal weather, we saw nice improvements as the second quarter progressed and our team did an excellent job of balancing our promotional activity to maintain strong profitability while driving sales growth and dramatically lowering our inventory levels of new RVs. We continue to invest in the growth of RV dealerships through traditional RV acquisitions, new store openings and the launch of Gander RV Sales, which will transform our recently acquired Gander Outdoors’ locations through the integration of RV sales and service. The launch of Gander RV Sales has provided the opportunity to rapidly expand our RV business in key states like Wisconsin, Minnesota, Texas, Michigan, Ohio, Pennsylvania, New York, North Carolina and Illinois, which represent nine of the top 16 RV states, according to Statistical Survey, Inc.’s new RV registration data and accounted for nearly 35 percent of all RV registrations over the past twelve months.”

Strategic Growth Initiatives

The company continues to pursue opportunities to expand its customer base and grow its market share in the RV, outdoor and active lifestyle categories. Recent strategic highlights include:

  • Completed six dealership acquisitions and added new RV dealerships in Sioux City, SD; Sherwood, AR; Nashville, TN; Redding, CA; Oklahoma City, OK and Newport News, VA in the second quarter 2018
  • Opened 52 Gander Outdoors stores in key markets with very strong RV registrations in the first half of 2018
  • Added RV sales to the Gander Outdoors stores in Kenosha, WI and Fayetteville, NC in the second quarter 2018
  • Signed agreement to purchase Russ Dean RV in the Pasco, WA market
  • On track to add RV parts, accessories and services to all Gander Outdoors locations and operate co-branded Camping World and Gander Outdoors stores by the end of 2018
  • Announced plans to expand the number of RV sales locations by more than 30 percent through next year with the launch of Gander RV Sales in up to 40 locations, new store openings and continued acquisitions

Second Quarter 2018 Segment Results

The company has two reportable segments: (1) Consumer Services and Plans and (2) Retail. The Consumer Services and Plans segment is comprised of emergency roadside assistance; property and casualty insurance programs; travel assist programs; extended vehicle service contracts; co-branded credit cards; vehicle financing and refinancing; membership clubs and publications and directories. The company’s Retail segment is comprised of new and used RVs; parts and service; finance and insurance, camping, fishing, hunting, hiking, rock climbing, marine and other active sports products.

Revenue, income and other operating highlights for the two segments in the second quarter were as follows:

Consumer Services and Plans

  • Consumer Services and Plans revenue increased 9.7 percent to $52.7 million
  • Consumer Services and Plans segment income increased 15.2 percent to $27.6 million

Other highlights:

  • The number of RV-related active customers increased 4.6 percent to 3.714 million over the prior year
  • The number of members in Good Sam Club increased 4.6 percent, or 85,000, from March 31, 2018 and membership reached an all-time-high of more than 1.92 million members


  • Retail revenue increased 13.1 percent to $1.392 billion
  • Retail segment income decreased 18.4 percent to $95.5 million

Other highlights:

  • Vehicles sold increased 8.5 percent to 33,637 units
  • New vehicles increased 11.5 percent to 24,442 units
  • Used vehicles increased 1.3 percent to 9,195 units
  • Average selling price per unit sold decreased 1.9 percent to $30,269
  • New vehicles decreased 4.8 percent to $33,038 per unit
  • Used vehicles increased 6.3 percent to $22,909 per unit
  • Same-store unit volume of new vehicles increased 2.4 percent, with travel trailers increasing 6.7 percent
  • New travel trailer unit sales to total new unit sales increased 259 basis points to 72.2 percent, contributing to the decrease in average selling price per vehicle
  • Gross profit per vehicle sold including finance and insurance decreased 2.2 percent to $8,384
  • Finance and insurance revenue as a percentage of total vehicle revenue increased 170 basis points to 12.2 percent
  • Inventory of new vehicles decreased 14.2 percent in total and 17.5 percent on a per dealership basis from March 31, 2018
  • There were 223 retail locations as of June 30, 2018, including: 147 Camping World retail locations, 54 Gander Outdoors locations, two Overton’s locations, two locations, two W82 locations, five Uncle Dan’s locations, four Erehwon locations and seven Rock Creek locations
  • Of the 223 locations, 132 sold recreational vehicles

Select Balance Sheet and Cash Flow Items

The company’s working capital and cash and cash equivalents on June 30, 2018 were $593.2 million and $212.4 million, respectively, compared to $478.7 million and $224.2 million, respectively, at December 31, 2017. Total inventories increased 5.0 percent to $1.49 billion on June 30, 2018 from $1.42 billion on December 31, 2017, primarily from the new stores acquired or opened. New vehicle inventory decreased 12.7 percent to $971.6 million and new vehicle inventory per dealership decreased 18.0 percent to $7.4 million on June 30, 2018 from $1,113.2 million and $9.0 million, respectively, on December 31, 2017. Parts, accessories and miscellaneous inventory increased $212.8 million to $409.4 million on June 30, 2018 from $196.5 million on December 31, 2017, primarily attributable to the growth in the Outdoor and Active Sports businesses. At June 30, 2018, the company had $24.4 million of borrowings under its revolving line of credit as part of its Floor Plan Facility, $1.16 billion of term loans outstanding under the Senior Secured Credit Facilities and $854.6 million of floor plan notes payable under the Floor Plan Facility.

Photo courtesy Gander Outdoors