Camping World Holdings, Inc. Reports Record Results for both Fourth Quarter and Full Year 2021

February 22, 2022

LINCOLNSHIRE, IL–(BUSINESS WIRE)–Camping World Holdings, Inc. (NYSE: CWH) (the “Company”), America’s Recreation Dealer, today reported results for the fourth quarter and full year ended December 31, 2021.

Marcus Lemonis, Chairman and CEO of Camping World Holdings, Inc. stated, “Since we took the Company public at the end of 2016, we have almost doubled our annual revenue to $6.9 billion and more than tripled our annual net income and Adjusted EBITDA ⁽¹⁾ to $642 million and $942 million, respectively. It is our management team’s plan to continue positioning the Company for growth over the next five years. The long term trends along with our strong cash flow have us focused on three things: growing our business, repurchasing our shares, and returning capital to our shareholders.”

Full Year-over-Year Operating Highlights

Revenue was $6.9 billion, an increase of $1.5 billion, or 26.9%.
Gross profit was $2.5 billion, an increase of $753.8 million, or 44.3%, and gross margin was 35.5%, an increase of 427 basis points.
Net income was $642.1 million, an increase of $297.9 million, or 86.5%. Net income margin was 9.3% for 2021 versus 6.3% for 2020.
Diluted earnings per share of Class A common stock was $6.07 in 2021 versus $3.09 in 2020 and adjusted earnings per share – diluted⁽¹⁾ of Class A common stock was $6.88 in 2021 versus $3.66 in 2020.
Adjusted EBITDA⁽¹⁾ was $942.1 million, an increase of $377.1 million, or 66.8%, and adjusted EBITDA margin⁽¹⁾ was 13.6% for 2021 versus 10.4% for 2020.
Vehicle inventories were $1.5 billion, an increase of $645.8 million: new vehicle inventories were $1.1 billion, an increase of $417.8 million, and used vehicle inventories were $406.4 million, an increase of $228.1 million.
On June 3, 2021, we refinanced our senior secured credit facilities, reducing our outstanding principal by $38.6 million, extending the term to 2028, and lowering the applicable margin rate by 25 bps. On December 20, 2021, we entered into an amendment to the new senior secured credit facilities to increase the principal amount of the new term loan facility by $300.0 million.
On September 30, 2021, we entered into an Eighth Amended and Restated Credit Agreement governing our floor plan facility which allows us to borrow $1.70 billion of floor plan notes payable with up to $70.0 million under the revolving line of credit, and extended the term to 2026.
During 2021, we opened 16 locations, which included twelve RV dealerships acquired in 2021, three RV dealerships acquired in 2020, and one greenfield location. We currently have operating dealerships, agreements to acquire land or existing RV dealerships, or have dealerships under construction in 46 of the 48 contiguous states.
During the year, we increased our regular quarterly dividend to holders of our Class A common stock from $0.23 per share to $0.50 per share, or from $0.92 per share to $2.00 per share on an annualized basis. On February 18, 2022, the Company’s Board of Directors authorized a twenty-five percent increase to our regular quarterly dividend from $0.50 per share to $0.625 per share, or from $2.00 per share to $2.50 per share on an annualized basis.

Fourth Quarter-over-Quarter Operating Highlights

Revenue was a fourth quarter record of $1.4 billion, an increase of $243.8 million, or 21.5%.
Gross profit was $484.6 million, an increase of $106.6 million, or 28.2%, and gross margin was 35.2%, an increase of 184 basis points.
Net income was $59.3 million, an increase of $18.9 million, or 46.9%. Net income margin was 4.3% for the fourth quarter of 2021 versus 3.6% for the fourth quarter of 2020.
Diluted earnings per share of Class A common stock was $0.54 for the fourth quarter of 2021 versus $0.34 for the fourth quarter of 2020 and adjusted earnings per share – diluted⁽¹⁾ of Class A common stock was $0.90 for the fourth quarter of 2021 and $0.48 for the fourth quarter of 2020.
Adjusted EBITDA⁽¹⁾ was $131.5 million, an increase of $40.3 million, or 44.2%, and adjusted EBITDA margin⁽¹⁾ was 9.5% for the fourth quarter of 2021 versus 8.0% for the fourth quarter of 2020.

________________________

⁽¹⁾ Adjusted earnings per share – diluted, adjusted EBITDA, and adjusted EBITDA Margin are non-GAAP measures. For a reconciliation of these non-GAAP measures to the most directly comparable GAAP measures, see the “Non-GAAP Financial Measures” section later in this press release.

Stock Repurchase Program

During the three months and the year ended December 31, 2021, the Company repurchased 1,779,416 and 3,988,881 shares of Class A common stock under this program, respectively, for approximately $69.4 million and $156.3 million, including commissions paid, at a weighted average price per share of $39.02 and $39.17, respectively, which is recorded as treasury stock on the consolidated balance sheets. As of December 31, 2021, the remaining approved amount for repurchases of Class A common stock under the share repurchase program was approximately $47.2 million.

On January 20, 2022, the Company’s Board of Directors authorized an increase to the Company’s stock repurchase program to allow for the repurchase of an additional $152.7 million of the Company’s Class A common stock and extended the expiration date of the program to December 31, 2025. Following this increase in authorization, approximately $200 million remained available for future repurchases.

Earnings Conference Call and Webcast Information

A conference call to discuss the Company’s fourth quarter and fiscal year 2021 financial results is scheduled for February 23, 2022, at 7:30 am Central Time. Investors and analysts can participate on the conference call by dialing (866) 239-9838 or (323) 794-2551 and using conference ID# 2143907. Interested parties can also listen to a live webcast or replay of the conference call by logging on to the Investor Relations section on the Company’s website at http://investor.campingworld.com. The replay of the conference call webcast will be available on the investor relations website for approximately 90 days.

Presentation

This press release presents historical results for the periods presented for the Company and its subsidiaries, which are presented in accordance with accounting principles generally accepted in the United States (“GAAP”), unless noted as a non-GAAP financial measure. The Company’s initial public offering (“IPO”) and related reorganization transactions (“Reorganization Transactions”) that occurred on October 6, 2016 resulted in the Company as the sole managing member of CWGS Enterprises, LLC (“CWGS, LLC”), with sole voting power in and control of the management of CWGS, LLC. Despite its position as sole managing member of CWGS, LLC, the Company had a minority economic interest in CWGS, LLC through March 11, 2021. As of December 31, 2021, the Company owned 51.2% of CWGS, LLC. Accordingly, the Company consolidates the financial results of CWGS, LLC and reports a non-controlling interest in its consolidated financial statements.

About Camping World Holdings, Inc.

Camping World Holdings, Inc., headquartered in Lincolnshire, IL, (together with its subsidiaries) is America’s largest retailer of RVs and related products and services. Our vision is to build a long-term legacy business that makes RVing fun and easy, and our Camping World and Good Sam brands have been serving RV consumers since 1966. We strive to build long-term value for our customers, employees, and shareholders by combining a unique and comprehensive assortment of RV products and services with a national network of RV dealerships, service centers and customer support centers along with the industry’s most extensive online presence and a highly-trained and knowledgeable team of associates serving our customers, the RV lifestyle, and the communities in which we operate. We also believe that our Good Sam organization and family of programs and services uniquely enables us to connect with our customers as stewards of the RV enthusiast community and the RV lifestyle. With over 185 locations in 40 states, Camping World has grown to become prime destinations for everything RV.

For more information, please visit www.CampingWorld.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements about our business plans and goals, including statements regarding the strength of our business, our long-term plan, potential stock repurchases, future dividend payments and our future financial results. These forward-looking statements are based on management’s current expectations.

These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, the following: the COVID-19 pandemic, which has had, and could have in the future, certain negative impacts on our business; risks related to the cybersecurity incident announced in February 2022; our ability to execute and achieve the expected benefits of our 2019 Strategic Shift; the availability of financing to us and our customers; fuel shortages or high prices for fuel; the success of our manufacturers; general economic conditions in our markets; changes in consumer preferences; competition in our industry; risks related to acquisitions and expansion into new markets; our failure to maintain the strength and value of our brands; our ability to manage our inventory; fluctuations in our same store sales; the cyclical and seasonal nature of our business; our dependence on the availability of adequate capital and risks related to our debt; our reliance on six fulfillment and distribution centers; natural disasters, including epidemic outbreaks; risks associated with selling goods manufactured abroad; our dependence on our relationships with third party suppliers and lending institutions; our ability to retain senior executives and attract and retain other qualified employees; risks associated with leasing substantial amounts of space; regulatory risks; data privacy and cybersecurity risks; risks related to our intellectual property; the impact of ongoing or future lawsuits against us and certain of our officers and directors; and risks related to our organizational structure.

These and other important factors discussed under the caption “Risk Factors” in our Annual Report on Form 10-K to be filed for the year ended December 31, 2021 and our other reports filed with the SEC could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management’s estimates as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change, except as required under applicable law. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release.

In addition, this press release references projected annualized dividend payments. Future declarations of quarterly dividends are subject to the determination and discretion of the Company’s Board of Directors based on its consideration of various factors, including the Company’s results of operations, financial condition, level of indebtedness, anticipated capital requirements, contractual restrictions, restrictions in its debt agreements, restrictions under applicable law, receipt of excess tax distributions from CWGS Enterprises, LLC, its business prospects and other factors that Camping World’s Board of Directors may deem relevant.

We intend to use our official Facebook, Twitter, and Instagram accounts, each at the handle @CampingWorld, as a distribution channel of material information about the Company and for complying with our disclosure obligations under Regulation FD. The information we post through these social media channels may be deemed material. Accordingly, investors should subscribe to these accounts, in addition to following our press releases, SEC filings, public conference calls and webcasts. These social media channels may be updated from time to time.

Camping World Holdings, Inc. and Subsidiaries
Consolidated Statements of Operations (unaudited)
(In Thousands Except Per Share Amounts)

	Three Months Ended						Year Ended
	December 31,						December 31,
	2021			2020			2021			2020
Revenue:
Good Sam Services and Plans	$	46,368		$	43,309		$	180,722		$	180,977
RV and Outdoor Retail
New vehicles		554,397			520,231			3,299,454			2,823,311
Used vehicles		412,273			204,627			1,686,217			984,853
Products, service and other		238,236			268,473			1,100,942			948,890
Finance and insurance, net		114,757			85,708			598,475			464,261
Good Sam Club		11,561			11,472			47,944			44,299
Subtotal		1,331,224			1,090,511			6,733,032			5,265,614
Total revenue		1,377,592			1,133,820			6,913,754			5,446,591
Costs applicable to revenue (exclusive of depreciation and amortization shown separately below):
Good Sam Services and Plans		19,636			17,245			72,877			72,938
RV and Outdoor Retail
New vehicles		409,272			411,350			2,423,478			2,320,537
Used vehicles		312,920			155,374			1,247,794			751,029
Products, service and other		149,532			169,440			706,074			590,716
Good Sam Club		1,617			2,382			7,203			8,892
Subtotal		873,341			738,546			4,384,549			3,671,174
Total costs applicable to revenue		892,977			755,791			4,457,426			3,744,112

Gross profit:
Good Sam Club services and plans		26,732			26,064			107,845			108,039
RV and Outdoor Retail
New vehicles		145,125			108,881			875,976			502,774
Used vehicles		99,353			49,253			438,423			233,824
Products, service and other		88,704			99,033			394,868			358,174
Finance and insurance, net		114,757			85,708			598,475			464,261
Good Sam Club		9,944			9,090			40,741			35,407
Subtotal		457,883			351,965			2,348,483			1,594,440
Total gross profit		484,615			378,029			2,456,328			1,702,479

Operating expenses:
Selling, general, and administrative		379,941			293,834			1,573,609			1,156,071
Debt restructure expense		3,023			—			12,078			—
Depreciation and amortization		17,121			13,032			66,418			51,981
Long-lived asset impairment		1,646			1,406			3,044			12,353
Lease termination		126			2,590			2,211			4,547
(Gain) loss on sales or disposal of assets		(583	)		670			(576	)		1,332
Total operating expenses		401,274			311,532			1,656,784			1,226,284
Income from operations		83,341			66,497			799,544			476,195
Other expense:
Floor plan interest expense		(4,222	)		(2,972	)		(14,108	)		(19,689	)
Other interest expense, net		(11,650	)		(12,588	)		(46,912	)		(54,689	)
Loss on debt restructure		—			—			(1,390	)		—
Tax Receivable Agreement liability adjustment		707			141			(2,813	)		141
Other expense, net		(45	)		—			(122	)		—
Total other expense		(15,210	)		(15,419	)		(65,345	)		(74,237	)
Income before income taxes		68,131			51,078			734,199			401,958
Income tax expense		(8,865	)		(10,740	)		(92,124	)		(57,743	)
Net income		59,266			40,338			642,075			344,215
Less: net income attributable to non-controlling interests		(32,018	)		(25,960	)		(363,614	)		(221,870	)
Net income attributable to Camping World Holdings, Inc.	$	27,248		$	14,378		$	278,461		$	122,345

Earnings per share of Class A common stock:
Basic	$	0.61		$	0.34		$	6.19		$	3.11
Diluted	$	0.54		$	0.34		$	6.07		$	3.09
Weighted average shares of Class A common stock outstanding:
Basic		44,820			42,444			45,009			39,383
Diluted		88,566			43,233			89,762			40,009


Camping World Holdings, Inc.
Supplemental Data

	Three Months Ended December 31,						Increase				Percent
	2021			2020			(decrease)				Change
Unit sales
New vehicles		11,415			13,274			(1,859	)		(14.0	%)
Used vehicles		10,669			6,930			3,739			54.0	%
Total		22,084			20,204			1,880			9.3	%

Average selling price
New vehicles	$	48,567		$	39,192		$	9,376			23.9	%
Used vehicles	$	38,642		$	29,528		$	9,114			30.9	%

Same store unit sales⁽¹⁾
New vehicles		10,181			12,845			(2,664	)		(20.7	%)
Used vehicles		9,511			6,796			2,715			39.9	%
Total		19,692			19,641			51			0.3	%

Same store revenue⁽¹⁾ ($ in 000’s)
New vehicles	$	496,222		$	504,592		$	(8,370	)		(1.7	%)
Used vehicles		370,672			200,874			169,798			84.5	%
Products, service and other		136,515			168,702			(32,187	)		(19.1	%)
Finance and insurance, net		102,557			83,537			19,020			22.8	%
Total	$	1,105,966		$	957,705		$	148,261			15.5	%

Average gross profit per unit
New vehicles	$	12,714		$	8,203		$	4,511			55.0	%
Used vehicles	$	9,312		$	7,107		$	2,205			31.0	%
Finance and insurance, net per vehicle unit	$	5,196		$	4,242		$	954			22.5	%
Total vehicle front-end yield⁽²⁾	$	16,267		$	12,069		$	4,198			34.8	%

Gross margin
Good Sam Services and Plans		57.7	%		60.2	%		(253	)	bps
New vehicles		26.2	%		20.9	%		525		bps
Used vehicles		24.1	%		24.1	%		3		bps
Products, service and other		37.2	%		36.9	%		35		bps
Finance and insurance, net		100.0	%		100.0	%		unch.		bps
Good Sam Club		86.0	%		79.2	%		678		bps
Subtotal RV and Outdoor Retail		34.4	%		32.3	%		212		bps
Total gross margin		35.2	%		33.3	%		184		bps

Inventories ($ in 000’s)
New vehicles	$	1,108,836		$	691,114		$	417,722			60.4	%
Used vehicles		406,398			178,336			228,062			127.9	%
Products, parts, accessories and misc.		278,148			266,786			11,362			4.3	%
Total RV and Outdoor Retail inventories	$	1,793,382		$	1,136,236		$	657,146			57.8	%

Vehicle inventory per location ($ in 000’s)
New vehicle inventory per dealer location	$	6,336		$	4,319		$	2,017			46.7	%
Used vehicle inventory per dealer location	$	2,322			1,115		$	1,208			108.4	%

Vehicle inventory turnover⁽³⁾
New vehicle inventory turnover		3.0			3.1			(0.0	)		(1.5	%)
Used vehicle inventory turnover		4.0			5.2			(1.2	)		(22.7	%)

Retail locations
RV dealerships		175			160			15			9.4	%
RV service & retail centers		10			10			—			0.0	%
Subtotal		185			170			15			8.8	%
Other retail stores		2			1			1			100.0	%
Total		187			171			16			9.4	%

Other data
Active Customers⁽⁴⁾		5,452,287			5,314,104			138,183			2.6	%
Good Sam Club members		2,124,284			2,088,064			36,220			1.7	%
Service bays ⁽⁵⁾		2,575			2,291			284			12.4	%
Finance and insurance gross profit as a % of total vehicle revenue		11.9	%		11.8	%		5		bps	n/a
Same store locations		158			n/a			n/a			n/a


	Year Ended December 31,						Increase				Percent
	2021			2020			(decrease)				Change
Unit sales
New vehicles		77,777			77,827			(50	)		(0.1	%)
Used vehicles		48,938			37,760			11,178			29.6	%
Total		126,715			115,587			11,128			9.6	%

Average selling price
New vehicles	$	42,422		$	36,277		$	6,145			16.9	%
Used vehicles	$	34,456		$	26,082		$	8,374			32.1	%

Same store unit sales⁽¹⁾
New vehicles		70,053			76,365			(6,312	)		(8.3	%)
Used vehicles		44,466			37,161			7,305			19.7	%
Total		114,519			113,526			993			0.9	%

Same store revenue⁽¹⁾ ($ in 000’s)
New vehicles	$	2,984,049		$	2,771,177		$	212,872			7.7	%
Used vehicles		1,543,936			969,033			574,903			59.3	%
Products, service and other		716,629			673,316			43,313			6.4	%
Finance and insurance, net		543,985			456,933			87,052			19.1	%
Total	$	5,788,599		$	4,870,459		$	918,140			18.9	%

Average gross profit per unit
New vehicles	$	11,263		$	6,460		$	4,803			74.3	%
Used vehicles		8,959			6,192			2,766			44.7	%
Finance and insurance, net per vehicle unit		4,723			4,017			706			17.6	%
Total vehicle front-end yield⁽²⁾		15,096			10,389			4,707			45.3	%

Gross margin
Good Sam Services and Plans		59.7	%		59.7	%		(2	)	bps
New vehicles		26.5	%		17.8	%		874		bps
Used vehicles		26.0	%		23.7	%		226		bps
Products, service and other		35.9	%		37.7	%		(188	)	bps
Finance and insurance, net		100.0	%		100.0	%		unch.		bps
Good Sam Club		85.0	%		79.9	%		505		bps
Subtotal RV and Outdoor Retail		34.9	%		30.3	%		460		bps
Total gross margin		35.5	%		31.3	%		427		bps

Inventories ($ in 000’s)
New vehicles	$	1,108,836		$	691,114		$	417,722			60.4	%
Used vehicles		406,398			178,336			228,062			127.9	%
Products, parts, accessories and misc.		278,148			266,786			11,362			4.3	%
Total RV and Outdoor Retail inventories	$	1,793,382		$	1,136,236		$	657,146			57.8	%

Vehicle inventory per location ($ in 000’s)
New vehicle inventory per dealer location	$	6,336		$	4,319		$	2,017			46.7	%
Used vehicle inventory per dealer location		2,322			1,115			1,208			108.4	%

Vehicle inventory turnover⁽³⁾
New vehicle inventory turnover		3.0			3.1			(0.0	)		(1.5	%)
Used vehicle inventory turnover		4.0			5.2			(1.2	)		(22.7	%)

Retail locations
RV dealerships		175			160			15			9.4	%
RV service & retail centers		10			10			—			0.0	%
Subtotal		185			170			15			8.8	%
Other retail stores		2			1			1			100.0	%
Total		187			171			16			9.4	%

Other data
Active Customers⁽⁴⁾		5,452,287			5,314,104			138,183			2.6	%
Good Sam Club members		2,124,284			2,088,064			36,220			1.7	%
Service bays ⁽⁵⁾		2,575			2,291			284			12.4	%
Finance and insurance gross profit as a % of total vehicle revenue		12.0	%		12.2	%		(19	)	bps	n/a
Same store locations		158			n/a			n/a			n/a

⁽¹⁾ Our same store revenue and units calculations for a given period include only those stores that were open both at the end of the corresponding period and at the beginning of the preceding fiscal year.

⁽²⁾ Front end yield is calculated as gross profit from new vehicles, used vehicles and finance and insurance (net), divided by combined new and used retail units sold.

⁽³⁾Inventory turnover calculated as vehicle costs applicable to revenue over the last twelve months divided by average quarterly ending vehicle inventory over the last twelve months.

⁽⁴⁾An Active Customer is a customer who has transacted with us in any of the eight most recently completed fiscal quarters prior to the date of measurement.

⁽⁵⁾ A service bay is a fully constructed bay dedicated to service, installation, and collision offerings.


Camping World Holdings, Inc. and Subsidiaries
Consolidated Balance Sheets (unaudited)
($ in Thousands Except Per Share Amounts)

	December 31,			December 31,
	2021			2020
Assets
Current assets:
Cash and cash equivalents	$	267,332		$	166,072
Contracts in transit		57,741			48,175
Accounts receivable, net		101,644			83,422
Inventories		1,792,865			1,136,345
Prepaid expenses and other assets		64,295			60,211
Total current assets		2,283,877			1,494,225
Property and equipment, net		599,324			367,898
Operating lease assets		750,876			769,487
Deferred tax assets, net		199,321			165,708
Intangible assets, net		30,970			30,122
Goodwill		483,634			413,123
Other assets		24,927			15,868
Total assets	$	4,372,929		$	3,256,431
Liabilities and stockholders’ equity (deficit)
Current liabilities:
Accounts payable	$	136,757		$	148,462
Accrued liabilities		189,595			137,688
Deferred revenues		95,467			88,213
Current portion of operating lease liabilities		62,217			62,405
Current portion of finance lease liabilities		4,964			2,240
Current portion of Tax Receivable Agreement liability		11,322			8,089
Current portion of long-term debt		15,822			12,174
Notes payable – floor plan, net		1,011,345			522,455
Other current liabilities		70,834			53,795
Total current liabilities		1,598,323			1,035,521
Operating lease liabilities, net of current portion		774,889			804,555
Finance lease liabilities, net of current portion		74,752			27,742
Tax Receivable Agreement liability, net of current portion		171,073			137,845
Revolving line of credit		20,885			20,885
Long-term debt, net of current portion		1,377,751			1,122,675
Deferred revenues		69,024			61,519
Other long-term liabilities		52,338			54,920
Total liabilities		4,139,035			3,265,662
Commitments and contingencies
Stockholders’ equity (deficit):
Preferred stock, par value $0.01 per share – 20,000,000 shares authorized; none issued and outstanding as of December 31, 2021 and 2020		—			—
Class A common stock, par value $0.01 per share – 250,000,000 shares authorized; 47,805,259 issued and 44,130,956 outstanding as of December 31, 2021 and 43,083,008 issued and 42,226,389 outstanding as of December 31, 2020		475			428
Class B common stock, par value $0.0001 per share – 75,000,000 shares authorized; 69,066,445 issued as of December 31, 2021 and 2020; and 41,466,964 and 45,999,132 outstanding as of December 31, 2021 and 2020		4			5
Class C common stock, par value $0.0001 per share – one share authorized, issued and outstanding as of December 31, 2021 and 2020		—			—
Additional paid-in capital		98,113			63,342
Treasury stock, at cost; 3,390,131 and 572,447 shares as of December 31, 2021 and 2020		(130,006	)		(15,187	)
Retained earnings (deficit)		189,471			(21,814	)
Total stockholders’ equity attributable to Camping World Holdings, Inc.		158,057			26,774
Non-controlling interests		75,837			(36,005	)
Total stockholders’ equity (deficit)		233,894			(9,231	)
Total liabilities and stockholders’ equity (deficit)	$	4,372,929		$	3,256,431