Profits at Camping World Holdings Inc. rose 47 percent in the fourth quarter ended December 31 on a 22 percent revenue gain.

Marcus Lemonis, chairman and CEO, Camping World Holdings, Inc. said, “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.”

Full Year-over-Year Operating Highlights

  • Revenue was $6.9 billion, an increase of $1.5 billion, or 26.9 percent;
  • Gross profit was $2.5 billion, an increase of $753.8 million, or 44.3 percent, and gross margin was 35.5 percent, an increase of 427 basis points;
  • Net income was $642.1 million, an increase of $297.9 million, or 86.5 percent. Net income margin was 9.3 percent for 2021 versus 6.3 percent 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 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 percent, and adjusted EBITDA margin was 13.6 percent for 2021 versus 10.4 percent 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. Used vehicle inventories were $406.4 million, an increase of $228.1 million;
  • On June 3, 2021, the company refinanced its senior secured credit facilities, reducing the outstanding principal by $38.6 million, extending the term to 2028, and lowering the applicable margin rate by 25 bps. On December 20, 2021, it 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, it entered into an Eighth Amended and Restated Credit Agreement governing its floor plan facility which allowed the company 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, the company opened 16 locations, which included twelve RV dealerships acquired in 2021, three RV dealerships acquired in 2020 and one greenfield location. It currently has operating dealerships, agreements to acquire land or existing RV dealerships or have dealerships under construction, in 46 of the 48 contiguous states in the U.S.; and
  • During the year, it increased its 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 its 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 percent;
  • Gross profit was $484.6 million, an increase of $106.6 million, or 28.2 percent, and gross margin was 35.2 percent, an increase of 184 basis points;
  • Net income was $59.3 million, an increase of $18.9 million, or 46.9 percent. Net income margin was 4.3 percent for the fourth quarter of 2021 versus 3.6 percent 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 of Class A common stock was $0.90 for the fourth quarter of 2021 and $0.48 for the fourth quarter of 2020; and
  • Adjusted EBITDA was $131.5 million, an increase of $40.3 million, or 44.2 percent, and adjusted EBITDA margin was 9.5 percent for the fourth quarter of 2021 versus 8.0 percent 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.

Photo courtesy Camping World