Camping World Holdings Inc. reported sales grew 28.3 percent in the second quarter ended June 30. The RV retailer slightly raised its full-year guidance.
Second Quarter Operating Highlights
- Revenue was a record $2.062 billion, an increase of $455.1 million, or 28.3 percent;
- Gross profit was a record $759.8 million, an increase of $271.2 million, or 55.5 percent, and gross margin was 36.9 percent, an increase of 644 basis points;
- Net income was a record $246.1 million, an increase of $82.9 million, or 50.8 percent. Net income margin was 11.9 percent versus 10.2 percent for the second quarter of 2020;
- Diluted earnings per share of Class A common stock was $2.33 and adjusted earnings per share, diluted of Class A common stock was $2.51;
- Adjusted EBITDA was a record $333.3 million, an increase of $112.6 million, or 51.0 percent, and adjusted EBITDA margin was 16.2 percent for the second quarter versus 13.7 percent for the second quarter of 2020;
- Vehicle inventories increased by $67.3 million, new vehicle inventories were down $65.5 million and used vehicle inventories were up $132.8 million;
- On June 3, 2021, the company refinanced its senior secured credit facilities, reducing its outstanding principal by $38.6 million, extending the term to 2028 and lowering the applicable margin rate by 25 bps;
- Nine RV dealership locations were acquired in the second quarter of 2021. 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.
Marcus Lemonis, chairman and CEO, Camping World Holdings, Inc. said, “Our team’s strong performance for the quarter has allowed us to reach a company high Trailing Twelve-Month Adjusted EBITDA of $831 million. As a result, we are raising our 2021 fiscal year guidance of Adjusted EBITDA of $770 million to $810 million to a revised Adjusted EBITDA of $840 million to $860 million.”
Stock Repurchase Program
On October 30, 2020, the company’s Board of Directors authorized a stock repurchase program for the repurchase of up to $100.0 million of the company’s Class A common stock expiring on October 31, 2022.
During the three months ended June 30, 2021, the company repurchased 1,149,742 shares of Class A common stock under this program for approximately $45.5 million, including commissions paid, at a weighted average price per share of $39.55, which is recorded as treasury stock on the condensed consolidated balance sheets. As of June 30, 2021, the remaining approved amount for repurchases of Class A common stock under the share repurchase program was approximately $33.0 million.
Camping World has over 185 locations in 40 states under the Camping World banner and sister brand Gander RV & Outdoors.
Photo courtesy Camping World