Camping World Holdings Inc. reported earnings more than tripled in the third quarter ended September 30 as sales climbed 21.0 percent.

Marcus Lemonis, chairman and CEO of Camping World Holdings, Inc. stated, “I am very pleased with our team’s performance in the third quarter. Coming off of an extremely positive second quarter, demand remained strong and we were able to achieve record breaking third quarter results with net income of $155 million and Adjusted EBITDA of $217 million. Our ability to focus on fundamentals including maximizing gross margins and maintaining expense controls was key to our success in the quarter. Our year to date net income was $304 million and Adjusted EBITDA was $474 million.”

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

  • Revenue increased 21.0 percent, or $290.8 million, to $1.679 billion, topping the analyst consensus estimate of $1.51 billion.
  • Gross profit increased 57.5 percent to $533.1 million and gross margin increased 737 basis points to 31.8 percent;
  • Selling, general and administrative expenses increased 7.8 percent to $323.0 million and selling, general and administrative expenses as a percentage of gross profit were 60.6 percent for the third quarter and 65.1 percent for the nine-month period ended September 30, 2020;
  • Net income increased 337.2 percent to $154.8 million and net income margin was 9.2 percent for the third quarter and 7.0 percent for the nine-month period ended September 30, 2020;
  • Earnings came to $1.44 agianst a loss of 82 cents a year ago and ahead of analysts’ consensus estimate of 96 cents.
  • Adjusted EBITDA(1) increased 258.4 percent to $217.0 million and adjusted EBITDA margin was 12.9 percent for the third quarter and 11.0 percent for the nine-month period ended September 30, 2020; and
  • Cash and cash equivalents, maintained in its primary cash accounts, was $482.6 million on September 30, 2020 and an additional $104.3 million of cash was maintained in its floorplan interest offset account on September 30, 2020;
  • The total leverage ratio under its senior secured credit facilities was 2.3x at September 30, 2020 and the total leverage ratio is expected to be below 2.0x at December 31, 2020.

2020 Adjusted EBITDA Guidance Update
As a result of its financial performance during the three months ended September 30, 2020, Camping World said it is updating its 2020 Adjusted EBITDA guidance from a range of $460 million to $490 million to a revised range of $495 million to $515 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.

Image courtesy Camping World