Camping World Holdings Inc. reported sales grew 17.5 percent in the fourth quarter and 11.3 percent in the year ended December 31.
Marcus Lemonis, Chairman and CEO of Camping World Holdings, Inc. stated, “We have one focus in our company and that’s on our long-term plan.”
Full Year-over-Year Operating Highlights
- Revenue increased 11.3 percent to $5.4 billion;
- Gross profit increased 32.2 percent to $1.7 billion;
- Income from operations of $476.2 million, an increase of $467.4 million;
- Net income of $344.2 million, an increase of $464.5 million, and included long-lived asset impairment and restructuring costs of $30.0 million primarily related to the 2019 strategic shift away from locations that do not sell and/or service RVs (“2019 Strategic Shift”);
- Diluted earnings per share of Class A common stock and adjusted earnings per share – diluted(1) of Class A common stock were $3.09, and $3.66, respectively;
- Adjusted EBITDA of $565.0 million, an increase of $399.0 million;
- Vehicle inventories decreased $262.6 million: new vehicle inventories were down $275.0 million and used vehicle inventories were up $12.4 million;
- Products, parts, accessories, and other inventories increased $40.9 million to $266.8 million;
- The number of Active Customers increased 3.8 percent to approximately 5.31 million and the number of Good Sam Club members decreased 1.7 percent to approximately 2.09 million primarily due to expiring members related to store closures resulting from the 2019 Strategic Shift.
Fourth Quarter-over-Quarter Operating Highlights
- Revenue increased 17.5 percent to $1.1 billion;
- Gross profit increased 57.1 percent to $378.0 million;
- Income from operations of $66.5 million, an increase of $132.6 million;
- Net income of $40.3 million, an increase of $121.2 million, and included long-lived asset impairment and restructuring costs of $4.5 million related to the 2019 Strategic Shift;
- Diluted earnings per share of Class A common stock, and adjusted earnings per share diluted of Class A common stock, were $0.34 and $0.48, respectively; and
- Adjusted EBITDA of $91.2 million, an increase of $106.4 million, was positively impacted by a strong RV market resulting in year-over-year increased revenue.
2019 Strategic Shift and Long-lived Asset Impairment
In 2019, Camping World said it made a strategic decision to refocus its business around its core RV competencies and consolidated its non-RV retail business through the closure of a number of stores and liquidation of select products and merchandise categories. The company currently estimates the total restructuring costs associated with the 2019 Strategic Shift will be in the range of $89.6 million to $110.6 million. In 2020 and 2019, the company recorded restructuring costs of $17.6 million and $47.2 million, respectively, related to the 2019 Strategic Shift. The remaining costs relate to lease termination and other costs for locations that continue in a wind-down period in 2021, primarily comprised of lease costs accounted for under ASC 842.
During the year ended December 31, 2020, the company identified indicators of impairment at previously closed stores in certain markets. Of the $12.4 million long-lived asset impairment charge during the year ended December 31, 2020, $12.3 million related to the 2019 Strategic Shift. Of the $66.3 million long-lived asset impairment charge during the year ended December 31, 2019, $57.4 million related to the 2019 Strategic Shift.
Photo courtesy Camping World