Camping World Holdings, Inc. reported earnings were down in the first quarter ended March 31 but represented the second strongest first-quarter earnings in the company’s history. Sales grew 6.7 percent.

Marcus Lemonis, chairman and CEO, said, “I am pleased with how the year has started, particularly in light of general macroeconomic conditions. We know how to navigate when things change up or down. I’ve been reminded of the value of our nimbleness, and I am very pleased with how our team pivots and adjusts to maximize profitability.”

First Quarter Operating Highlights

  • Revenue was a record $1.7 billion, an increase of $104.6 million, or 6.7 percent.
  • Gross profit was $560.2 million, an increase of $39.7 million, or 7.6 percent, and gross margin was 33.7 percent, an increase of 29 basis points.
  • Net income of $107.3 million included $8.8 million of pre-tax accelerated intangible asset amortization related to brand transitions and an increase of $5.6 million in pre-tax equity-based compensation expense in 2022 due in part to certain management separations. $19.0 million of deferred income tax benefits in 2021 contributed to the net income decrease of $40.1 million, or 27.2 percent.
  • Diluted earnings per share of Class A common stock was $1.02 in 2022 versus $1.40 in 2021, in large part due to the accelerated amortization, equity-based compensation and 2021 income tax benefits described above.
  • Adjusted earnings per share, diluted of Class A common stock, were $1.15 in 2022 versus $1.40 in 2021.
  • Adjusted EBITDA was $182.1 million, a decrease of $7.2 million, or 3.8 percent.
  • New and used vehicle inventories were $1.8 billion, an increase of $ 938.3 million. This increase was driven by strategic growth of its used vehicle business, an additional 14 locations and the easing of new vehicle supply chain constraints in the company’s core categories experienced in much of the prior year.
  • On March 29, 2022, the company paid its regular quarterly dividend of $0.625 per share of Class A common stock or $2.50 per share on an annualized basis.

Stock Repurchase Program
During the three months ended March 31, 2022, the company repurchased 2,592,524 shares of Class A common stock under its stock repurchase program for approximately $79.8 million, including commissions paid at a weighted average price per share of $30.76, which is recorded as treasury stock on the consolidated balance sheets. As of March 31, 2022, the remaining approved amount for repurchases of Class A common stock under the stock repurchase program was approximately $120.2 million and the program expires on December 31, 2025. Between March 31, 2021 and March 31, 2022, total common units in CWGS, LLC, including those held by CWH and the non-controlling interest, decreased 5.4 million to 83.7 million.

Photo courtesy Camping World