Camping World Holdings Inc. on Wednesday reported revenue for the second quarter of $1.5 billion, a 2.3 percent increase from the year-ago period. The figured marked a record revenue for the company and also defied some current headwinds facing the RV industry, as SGB recently outlined.

Marcus A. Lemonis, chairman and CEO, said, “For the second quarter, our company generated record revenue of nearly $1.5 billion and sold an all-time high of 33,715 new and used recreational vehicles. Despite some of the headwinds across the new RV market, which were evidenced by a significant decline in both new RV wholesale shipments and RV registration reports, we grew both revenue and unit volume and achieved close to $100 million in adjusted EBITDA in the quarter. While some of the broader macro factors impacting the RV industry are outside of our control right now, we are focused on optimizing our assets and improving the RV consumer experience.”

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

  • Revenue increased 2.3 percent to $1.474 billion;
  • Gross profit decreased 0.6 percent to $410 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 percent to $99.2 million; and
  • The number of Active Customers increased 25.8 percent to 5.25 million and the number of Good Sam Club memberships increased 13.4 percent to approximately 2.18 million.

Second Quarter 2019 Results | Good Sam Services and Plans Segment

  • Segment revenue increased 5.6 percent to $44.7 million;
  • Segment gross profit increased 5.2 percent to $25.9 million and segment gross margin decreased 23 basis points to 58.1 percent; and
  • Segment income increased 2.4 percent to $21.2 million.

RV and Outdoor Retail Segment

  • Segment revenue increased 2.2 percent to $1,429.7 million;
    • Same-store revenue decreased 6.3 percent to $1.2 billion
  • Segment gross profit decreased 1 percent to $384 million and segment gross margin decreased 85 basis points to 26.9 percent;
  • Segment income decreased 24.2 percent to $75.7 million;
  • Vehicle units sold increased 0.2 percent to 33,715 units;
    • New vehicle units sold decreased 6.3 percent to 22,906 units
    • Used vehicle units sold increased 17.6 percent to 10,809 units
  • Average selling price per vehicle unit sold increased 0.4 percent to $30,391;
    • New vehicles increased 2.9 percent to $34,003 per unit
    • Used vehicles decreased 0.8 percent to $22,736 per unit
  • Same-store vehicle units sold decreased 7.8 percent to 29,426 units;
    • New vehicle same store units sold decreased 15 percent to 19,753 units
    • Used vehicle same store units sold increased 11.6 percent 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 percent;
  • New vehicle inventory per dealership location decreased 9.9 percent to $6.6 million from December 31, 2018;
  • Products, service and other revenue increased 5.6 percent to $264.4 million and gross profit decreased 6.3 percent to $95.8 million;
    • Same-store products, service and other revenue decreased 10.8 percent to $144.9 million
  • Good Sam Club revenue increased 19 percent to $12.4 million and gross profit increased 29.5 percent to $9.5 million; and
    • Good Sam Club memberships increased 13.4 percent 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 percent to $1.5 billion as compared to December 31, 2018, driven by a 1.7 percent decrease in new RVs and a 2.2 percent decrease in used RVs, partially offset by a 2.1 percent 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 million outstanding under the Real Estate Facility, and $813.6 million of floor plan notes payable under the Floor Plan Facility.

Revisions for Correction of Immaterial Errors

The company corrected for errors that were immaterial to previously-reported consolidated financial statements. These errors were identified in connection with the preparation of the financial statements for the year ended December 31, 2018, and related primarily to i) the cancellation reserve for certain of its finance and insurance offerings within the former Dealership segment in other current liabilities and other long-term liabilities, ii) the calculation of the Tax Receivable Agreement liability that arose from transactions in 2017, iii) the classification in the condensed consolidated statements of cash flows of non-cash capital expenditures included in accounts payable and non-cash leasehold improvements paid by lessor in other, net, and iv) the adoption of Accounting Standards Codification (“ASC”) No. 606, Revenue from Contracts with Customers (“ASC 606”) on January 1, 2018. The amounts in the previous period have been revised to reflect the correction of these errors.