Camping World Holdings Inc. raised its full-year guidance after reporting earnings in the third quarter ended September 30 advanced 22.3 percent on a 14.2 percent gain.

Third Quarter Operating Highlights

  • Revenue was a third-quarter record $1.917 billion, an increase of $237.8 million, or 14.2 percent. Wall Street’s consensus estimate was $1.85 billion.
  • Gross profit was $691.4 million, an increase of $158.2 million, or 29.7 percent, and gross margin was 36.1 percent, an increase of 431 basis points.
  • Net income was $189.3 million, an increase of $34.5 million, or 22.3 percent. Net income margin was 9.9 percent versus 9.2 percent for the third quarter of 2020.
  • Diluted earnings per share of Class A common stock was $1.72 and adjusted earnings per share – diluted of Class A common stock was $1.98. Wall Street’s consensus estimate was $1.78 per share.
  • Adjusted EBITDA was $288.0 million, an increase of $71.0 million, or 32.7 percent, and adjusted EBITDA margin was 15.0 percent for the third quarter versus 12.9 percent for the third quarter of 2020.
  • Vehicle inventories were $1.4 billion, an increase of $433.8 million: new vehicle inventories were $723.6 million, an increase of $166.5 million, and used vehicle inventories were $391.5 million, an increase of $267.3 million.
  • On September 30, 2021, we entered into an Eighth Amended and Restated Credit Agreement governing its floor plan facility which allows it to borrow $1.70 billion of floor plan notes payable and, up to $70.0 million under the revolving line of credit, and extended the term to 2026.

2021 Adjusted EBITDA Guidance Update
Marcus Lemonis, chairman and CEO, “Our team’s strong performance for the quarter has allowed us to reach a company-high Trailing Twelve-Month Adjusted EBITDA of $902 million. As a result, we are raising our 2021 fiscal year guidance from Adjusted EBITDA of $840 million to $860 million to a revised Adjusted EBITDA of $915 million to $930 million.”

Stock Repurchase Program
On August 3, 2021, the company’s Board of Directors authorized an increase in the company’s stock repurchase program originally approved on October 30, 2020 for an additional $125.0 million of the company’s Class A common stock resulting in a total of $225.0 million authorized for repurchase. The Board of Directors extended the expiration of the repurchase authorization to August 31, 2023.

During the three months ended September 30, 2021, the company repurchased 1,059,723 shares of Class A common stock under this program for approximately $41.3 million, including commissions paid, at a weighted average price per share of $39.02, which is recorded as treasury stock on the condensed consolidated balance sheets. As of September 30, 2021, the remaining approved amount for repurchases of Class A common stock under the share repurchase program was approximately $116.7 million.

Camping World operates over 185 locations in 40 states, Camping World, and sister brand Gander RV & Outdoors.