Camping World Holdings reported earnings rose 45.6 percent in the third quarter ended September 30 on a sales gain of 3.2 percent.
Marcus Lemonis, chairman and CEO of Camping World Holdings, Inc. stated, “In this current environment, our company is focused on growing our overall used RV business, strategic and opportunistic dealership acquisitions, and tightening SG&A and capital expenditures with precision.”
Third Quarter Operating Highlights
Revenue was $1.9 billion for the third quarter, a decrease of $60.9 million, or 3.2 percent, driven primarily by a $45.7 million reduction in product revenues from categories we exited in 2021 including fishing, hunting, and apparel.
Used vehicle revenue was a record $526.0 million for the third quarter, an increase of $6.4 million, or 1.2 percent, while new vehicle revenue declined $30.2 million, or 3.5 percent. Used vehicle unit sales were a record 14,460 units for the third quarter, an increase of 829 units, or 6.1 percent.
Same-store used vehicle unit sales increased 2.0 percent for the third quarter, while same-store new vehicle unit sales decreased 7.2 percent.
Gross profit was $593.7 million, a decrease of $97.7 million, or 14.1 percent, and total gross margin was 32.0 percent, a decrease of 408 basis points driven primarily by the higher cost of new vehicles. Used vehicle gross margin decreased to a lesser extent.
Net income was $102.9 million, a decrease of $86.4 million, or 45.6 percent.
Diluted earnings per share of Class A common stock was $0.97 in 2022 versus $1.72 in 2021. Adjusted earnings per share – diluted(2) of Class A common stock was $1.07 in 2022 versus $1.98 in 2021.
Adjusted EBITDA was $173.4 million, a decrease of $114.6 million, or 39.8 percent.
New and used vehicle inventories were $1.6 billion, an increase of $491.1 million from September 30, 2021. This increase was driven primarily by restocking to normalized levels of new vehicles and, to a lesser extent, the strategic growth of our used vehicle business and an additional eight dealership locations.
On September 29, 2022, the company paid our regular quarterly dividend of $0.625 per share of Class A common stock or $2.50 per share on an annualized basis.
Photo courtesy Camping World