Camping World Holdings Inc. reported first-quarter revenue decreased 3.5 percent to $1.03 billion primarily as a result of the company’s strategic shift in 2019 and the impact of the COVID-19 pandemic. That crushed Wall Street’s expectations by $53.5 million.

Non-GAAP EPS of -3 cents beat estimates by 12 cents, while GAAP EPS of -22 cents missed by 11 cents.

Marcus Lemonis, chairman and CEO of Camping World Holdings, said, “Overall, we are pleased with our first-quarter results, especially considering the impact of the pandemic at the end of the quarter. With our current expense structure, positioning of our inventory and what we consider to be sufficient liquidity and working capital, we believe we are well-positioned to take advantage of the positive trends we are seeing in our business and to grow market share.”

First-quarter operating highlights and year-over-year comparisons:

  • Revenue decreased 3.5 percent to $1.027 billion primarily as a result of the company’s strategic shift in 2019 and the impact of the COVID-19 pandemic;
  • Gross profit increased 1.5 percent to $302.7 million and gross margin increased 144 basis points to 29.5 percent;
  • Income from operations, net loss and diluted loss per share of Class A common stock were $13.3 million, $(14.1) million, and $(0.22), respectively, and included restructuring and long-lived asset impairment costs of $13.4 million primarily related to the 2019 Strategic Shift away from locations that do not sell and/or service RVs;
  • Adjusted EBITDA increased 68.5 percent to $36.0 million;
  • Cash totaled $283.3 million on March 31, 2020, including $109.4 million in our primary cash accounts and $173.9 million in our floorplan interest offset account; and
  • Unencumbered used RV inventory was $151.1 million, and retail inventories net of payables totaled $174.1 million on March 31, 2020.

Photo courtesy Camping World