Camping World Holdings, Inc. Reports First Quarter 2021 Results and Raises Full Year Guidance
LINCOLNSHIRE, IL–(BUSINESS WIRE)–Camping World Holdings, Inc. (NYSE: CWH) (the “Company”), America’s Recreation Dealer, today reported results for the first quarter ended March 31, 2021.
First Quarter Operating Highlights
- Revenue increased by $530.5 million to $1.558 billion
- Gross profit increased by $217.8 million to $520.5 million, and gross margin increased by 395 basis points to 33.4%
- Income from operations increased by $155.3 million to $168.6 million
- Net income increased by $161.6 million to $147.4 million and included long-lived asset impairment and restructuring costs of $3.6 million related to the 2019 Strategic Shift. Net income margin was 9.5% versus a net loss margin of 1.4% for the first quarter of 2020
- Diluted earnings per share of Class A common stock and adjusted earnings per share – diluted(1) of Class A common stock were each $1.40
- Adjusted EBITDA(1) increased by $153.3 million to $189.3 million and adjusted EBITDA margin(1) was 12.2% for the first quarter versus 3.5% for the first quarter of 2020
- Vehicle inventories decreased by $299.6 million: new vehicle inventories were down $338.7 million and used vehicle inventories were up $39.1 million
- Products, parts, accessories and other inventories increased by $49.6 million to $284.2 million
Marcus Lemonis, Chairman and CEO of Camping World Holdings, Inc. stated, “As a result of our financial performance during the three months ended March 31, 2021, the continued strength of our business and the confidence in our business model, we are raising our 2021 fiscal year guidance(2) of Adjusted EBITDA of $640 million to $690 million to a revised Adjusted EBITDA of $770 million to $810 million.”
|
________________ |
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|
(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. A reconciliation for the Company’s Adjusted EBITDA outlook to the corresponding GAAP measures on a forward-looking basis cannot be provided without unreasonable efforts, as we are unable to provide reconciling information with respect to certain items. However, in 2021 the Company expects equity-based compensation of approximately $27-30 million, depreciation and amortization of approximately $53-58 million, other interest expense of approximately $47-50 million, and restructuring charges of approximately $10-13 million, each of which is a reconciling item to Net Income. |
|
(2) |
|
Prior guidance provided on February 25, 2021. |
Earnings Conference Call and Webcast Information
A conference call to discuss the Company’s first quarter 2021 financial results is scheduled for today, May 4, 2021, at 8:30 am Eastern Time. Investors and analysts can participate on the conference call by dialing (866) 548-4713 or (323) 794-2093 and using conference ID# 2210962. 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 March 31, 2021, the Company owned 50.9% of CWGS, LLC. Accordingly, the Company consolidates the financial results of CWGS, LLC and reports a non-controlling interest in its consolidated financial statements. Unless otherwise indicated, all financial comparisons in this press release compare our financial results for the first quarter ended March 31, 2021 to our financial results from the first quarter ended March 31, 2020.
About Camping World Holdings, Inc.
Camping World Holdings, Inc. (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.
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 strength of our business, our long-term plan and our financial outlook. 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; 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 filed for the year ended December 31, 2020 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.
| Camping World Holdings, Inc. and Subsidiaries | |||||||||
| Consolidated Statements of Operations (unaudited) | |||||||||
| (In Thousands Except Per Share Amounts) | |||||||||
| Three Months Ended March 31, | |||||||||
|
2021 |
2020 |
||||||||
| Revenue: | |||||||||
| Good Sam Services and Plans |
$ |
40,871 |
|
$ |
47,208 |
|
|||
| RV and Outdoor Retail | |||||||||
| New vehicles |
|
821,976 |
|
|
497,317 |
|
|||
| Used vehicles |
|
294,257 |
|
|
206,665 |
|
|||
| Products, service and other |
|
251,270 |
|
|
172,623 |
|
|||
| Finance and insurance, net |
|
138,254 |
|
|
92,456 |
|
|||
| Good Sam Club |
|
11,153 |
|
|
11,004 |
|
|||
| Subtotal |
|
1,516,910 |
|
|
980,065 |
|
|||
| Total revenue |
|
1,557,781 |
|
|
1,027,273 |
|
|||
| Costs applicable to revenue (exclusive of depreciation | |||||||||
| and amortization shown separately below): | |||||||||
| Good Sam Club Services and Plans |
|
14,424 |
|
|
21,859 |
|
|||
| RV and Outdoor Retail | |||||||||
| New vehicles |
|
643,680 |
|
|
426,442 |
|
|||
| Used vehicles |
|
223,193 |
|
|
163,793 |
|
|||
| Products, service and other |
|
154,146 |
|
|
110,269 |
|
|||
| Good Sam Club |
|
1,844 |
|
|
2,247 |
|
|||
| Subtotal |
|
1,022,863 |
|
|
702,751 |
|
|||
| Total costs applicable to revenue |
|
1,037,287 |
|
|
724,610 |
|
|||
| Gross profit: | |||||||||
| Good Sam Services and Plans |
|
26,447 |
|
|
25,349 |
|
|||
| RV and Outdoor Retail | |||||||||
| New vehicles |
|
178,296 |
|
|
70,875 |
|
|||
| Used vehicles |
|
71,064 |
|
|
42,872 |
|
|||
| Products, service and other |
|
97,124 |
|
|
62,354 |
|
|||
| Finance and insurance, net |
|
138,254 |
|
|
92,456 |
|
|||
| Good Sam Club |
|
9,309 |
|
|
8,757 |
|
|||
| Subtotal |
|
494,047 |
|
|
277,314 |
|
|||
| Total gross profit |
|
520,494 |
|
|
302,663 |
|
|||
| Operating expenses: | |||||||||
| Selling, general, and administrative |
|
337,034 |
|
|
267,656 |
|
|||
| Depreciation and amortization |
|
12,701 |
|
|
14,078 |
|
|||
| Long-lived asset impairment |
|
546 |
|
|
6,569 |
|
|||
| Lease termination |
|
1,756 |
|
|
584 |
|
|||
| (Gain) loss on disposal of assets |
|
(99 |
) |
|
511 |
|
|||
| Total operating expenses |
|
351,938 |
|
|
289,398 |
|
|||
| Income from operations |
|
168,556 |
|
|
13,265 |
|
|||
| Other income (expense): | |||||||||
| Floor plan interest expense |
|
(3,390 |
) |
|
(8,604 |
) |
|||
| Other interest expense, net |
|
(12,223 |
) |
|
(14,658 |
) |
|||
| Tax Receivable Agreement liability adjustment |
|
(3,520 |
) |
|
– |
|
|||
| Other income, net |
|
45 |
|
|
– |
|
|||
| Total other expense |
|
(19,088 |
) |
|
(23,262 |
) |
|||
| Income (loss) before income taxes |
|
149,468 |
|
|
(9,997 |
) |
|||
| Income tax expense |
|
(2,043 |
) |
|
(4,132 |
) |
|||
| Net income (loss) |
|
147,425 |
|
|
(14,129 |
) |
|||
| Less: net (income) loss attributable to non-controlling interests |
|
(85,103 |
) |
|
5,969 |
|
|||
| Net income (loss) attributable to Camping World Holdings, Inc. |
$ |
62,322 |
|
$ |
(8,160 |
) |
|||
| Earnings (loss) per share of Class A common stock: | |||||||||
| Basic |
$ |
1.43 |
|
$ |
(0.22 |
) |
|||
| Diluted |
$ |
1.40 |
|
$ |
(0.22 |
) |
|||
| Weighted average shares of Class A common stock outstanding: | |||||||||
| Basic |
|
43,584 |
|
|
37,534 |
|
|||
| Diluted |
|
90,238 |
|
|
37,534 |
|
|||
| Camping World Holdings, Inc. | ||||||||||||||
| Supplemental Data | Three Months Ended March 31, | Increase | Percent | |||||||||||
|
2021 |
2020 |
(decrease) |
Change |
|||||||||||
| Unit sales | ||||||||||||||
| New vehicles |
|
21,433 |
|
|
14,208 |
|
|
7,225 |
|
50.9 |
% |
|||
| Used vehicles |
|
10,319 |
|
|
8,682 |
|
|
1,637 |
|
18.9 |
% |
|||
| Total |
|
31,752 |
|
|
22,890 |
|
|
8,862 |
|
38.7 |
% |
|||
| Average selling price | ||||||||||||||
| New vehicles |
$ |
38,351 |
|
$ |
35,003 |
|
$ |
3,348 |
|
9.6 |
% |
|||
| Used vehicles |
$ |
28,516 |
|
$ |
23,804 |
|
$ |
4,712 |
|
19.8 |
% |
|||
| Same store unit sales | ||||||||||||||
| New vehicles |
|
20,028 |
|
|
13,838 |
|
|
6,190 |
|
44.7 |
% |
|||
| Used vehicles |
|
9,742 |
|
|
8,484 |
|
|
1,258 |
|
14.8 |
% |
|||
| Total |
|
29,770 |
|
|
22,322 |
|
|
7,448 |
|
33.4 |
% |
|||
| Same store revenue ($ in 000’s) | ||||||||||||||
| New vehicles |
$ |
771,283 |
|
$ |
484,825 |
|
$ |
286,458 |
|
59.1 |
% |
|||
| Used vehicles |
|
279,514 |
|
|
202,191 |
|
|
77,323 |
|
38.2 |
% |
|||
| Products, service and other |
|
167,907 |
|
|
126,866 |
|
|
41,041 |
|
32.3 |
% |
|||
| Finance and insurance, net |
|
129,925 |
|
|
90,379 |
|
|
39,546 |
|
43.8 |
% |
|||
| Total |
$ |
1,348,629 |
|
$ |
904,261 |
|
$ |
444,368 |
|
49.1 |
% |
|||
| Average gross profit per unit | ||||||||||||||
| New vehicles |
$ |
8,319 |
|
$ |
4,988 |
|
$ |
3,330 |
|
66.8 |
% |
|||
| Used vehicle |
$ |
6,887 |
|
$ |
4,938 |
|
$ |
1,949 |
|
39.5 |
% |
|||
| Finance and insurance, net per vehicle unit |
$ |
4,354 |
|
$ |
4,039 |
|
$ |
315 |
|
7.8 |
% |
|||
| Total vehicle front-end yield(1) |
$ |
12,208 |
|
$ |
9,008 |
|
$ |
3,199 |
|
35.5 |
% |
|||
| Gross margin | ||||||||||||||
| Good Sam Services and Plans |
|
64.7 |
% |
|
53.7 |
% |
|
1,101 |
|
bps | ||||
| New vehicles |
|
21.7 |
% |
|
14.3 |
% |
|
744 |
|
bps | ||||
| Used vehicles |
|
24.2 |
% |
|
20.7 |
% |
|
341 |
|
bps | ||||
| Products, service and other |
|
38.7 |
% |
|
36.1 |
% |
|
253 |
|
bps | ||||
| Finance and insurance, net |
|
100.0 |
% |
|
100.0 |
% |
unch. | bps | ||||||
| Good Sam Club |
|
83.5 |
% |
|
79.6 |
% |
|
389 |
|
bps | ||||
| Subtotal RV and Outdoor Retail |
|
32.6 |
% |
|
28.3 |
% |
|
427 |
|
bps | ||||
| Total gross margin |
|
33.4 |
% |
|
29.5 |
% |
|
395 |
|
bps | ||||
| Inventories ($ in 000’s) | ||||||||||||||
| New vehicles |
$ |
715,085 |
|
$ |
1,053,802 |
|
$ |
(338,717 |
) |
(32.1 |
%) |
|||
| Used vehicles |
|
190,176 |
|
|
151,058 |
|
|
39,118 |
|
25.9 |
% |
|||
| Products, parts, accessories and misc. |
|
284,203 |
|
|
234,555 |
|
|
49,648 |
|
21.2 |
% |
|||
| Total RV and Outdoor Retail inventories |
$ |
1,189,464 |
|
$ |
1,439,415 |
|
$ |
(249,951 |
) |
(17.4 |
%) |
|||
| Vehicle inventory per location ($ in 000’s) | ||||||||||||||
| New vehicle inventory per dealer location |
$ |
4,334 |
|
$ |
6,712 |
|
$ |
(2,378 |
) |
(35.4 |
%) |
|||
| Used vehicle inventory per dealer location |
$ |
1,153 |
|
$ |
962 |
|
$ |
190 |
|
19.8 |
% |
|||
| Vehicle inventory turnover(2) | ||||||||||||||
| New vehicle inventory turnover |
|
3.8 |
|
|
2.1 |
|
|
1.7 |
|
81.4 |
% |
|||
| Used vehicle inventory turnover |
|
5.2 |
|
|
4.6 |
|
|
0.6 |
|
12.6 |
% |
|||
| Retail locations | ||||||||||||||
| RV dealerships |
|
165 |
|
|
157 |
|
|
8 |
|
5.1 |
% |
|||
| RV service & retail centers |
|
10 |
|
|
10 |
|
|
– |
|
0.0 |
% |
|||
| Subtotal |
|
175 |
|
|
167 |
|
|
8 |
|
4.8 |
% |
|||
| Other retail stores |
|
1 |
|
|
1 |
|
|
– |
|
0.0 |
% |
|||
| Total |
|
176 |
|
|
168 |
|
|
8 |
|
4.8 |
% |
|||
| Other data | ||||||||||||||
| Active Customers(3) |
|
5,488,280 |
|
|
5,131,687 |
|
|
356,593 |
|
6.9 |
% |
|||
| Good Sam Club members |
|
2,120,143 |
|
|
2,094,134 |
|
|
26,009 |
|
1.2 |
% |
|||
| Finance and insurance, net gross profit as a % of total vehicle revenue |
|
12.4 |
% |
|
13.1 |
% |
|
(75 |
) |
bps |
n/a |
|
||
| Same store locations |
|
158 |
|
|
n/a |
|
|
n/a |
|
n/a |
|
|||
|
(1) |
|
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. |
|
(2) |
|
Inventory turnover calculated as vehicle costs applicable to revenue divided by average quarterly ending vehicle inventory over the last twelve months. |
|
(3) |
|
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. The Active Customer quantity as of March 31, 2020 has been revised to 5,131,687 from 4,921,246 for a correction to the Active Customers for our specialty retail business. |
| Camping World Holdings, Inc. and Subsidiaries | |||||||
| Consolidated Balance Sheets (unaudited) | |||||||
| ($ in Thousands Except Per Share Amounts) | |||||||
| March 31, | December 31, | ||||||
|
2021 |
2020 |
||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents |
$ |
256,870 |
|
$ |
166,072 |
|
|
| Contracts in transit |
|
165,751 |
|
|
48,175 |
|
|
| Accounts receivable, net |
|
89,142 |
|
|
83,422 |
|
|
| Inventories |
|
1,189,508 |
|
|
1,136,345 |
|
|
| Prepaid expenses and other assets |
|
51,082 |
|
|
60,211 |
|
|
| Total current assets |
|
1,752,353 |
|
|
1,494,225 |
|
|
| Property and equipment, net |
|
405,035 |
|
|
367,898 |
|
|
| Operating lease assets |
|
767,256 |
|
|
769,487 |
|
|
| Deferred tax asset, net |
|
213,180 |
|
|
165,708 |
|
|
| Intangibles assets, net |
|
29,185 |
|
|
30,122 |
|
|
| Goodwill |
|
420,135 |
|
|
413,123 |
|
|
| Other assets |
|
16,016 |
|
|
15,868 |
|
|
| Total assets |
$ |
3,603,160 |
|
$ |
3,256,431 |
|
|
| Liabilities and stockholders’ equity (deficit) | |||||||
| Current liabilities: | |||||||
| Accounts payable |
$ |
245,261 |
|
$ |
148,462 |
|
|
| Accrued liabilities |
|
185,788 |
|
|
137,688 |
|
|
| Deferred revenues |
|
88,006 |
|
|
88,213 |
|
|
| Current portion of operating lease liabilities |
|
63,007 |
|
|
62,405 |
|
|
| Current portion of finance lease liabilities |
|
2,585 |
|
|
2,240 |
|
|
| Current portion of Tax Receivable Agreement liability |
|
8,089 |
|
|
8,089 |
|
|
| Current portion of long-term debt |
|
12,174 |
|
|
12,174 |
|
|
| Notes payable – floor plan, net |
|
539,687 |
|
|
522,455 |
|
|
| Other current liabilities |
|
66,748 |
|
|
53,795 |
|
|
| Total current liabilities |
|
1,211,345 |
|
|
1,035,521 |
|
|
| Operating lease obligations, net of current portion |
|
801,181 |
|
|
804,555 |
|
|
| Finance lease obligations, net of current portion |
|
37,791 |
|
|
27,742 |
|
|
| Tax Receivable Agreement liability, net of current portion |
|
167,457 |
|
|
137,845 |
|
|
| Revolving line of credit |
|
20,885 |
|
|
20,885 |
|
|
| Long-term debt, net of current portion |
|
1,120,581 |
|
|
1,122,675 |
|
|
| Deferred revenues |
|
64,269 |
|
|
61,519 |
|
|
| Other long-term liabilities |
|
55,001 |
|
|
54,920 |
|
|
| Total liabilities |
|
3,478,510 |
|
|
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 March 31, 2021 and December 31, 2020 |
|
– |
|
|
– |
|
|
| Class A common stock, par value $0.01 per share – 250,000,000 shares authorized; 46,112,336 issued and 45,388,998 outstanding as of March 31, 2021 and 43,083,008 issued and 42,226,389 outstanding as of December 31, 2020 |
|
458 |
|
|
428 |
|
|
| Class B common stock, par value $0.0001 per share – 75,000,000 shares authorized; 69,066,445 issued as of March 31, 2021 and December 31, 2020; and 43,151,528 and 45,999,132 outstanding as of March 31, 2021 and December 31, 2020 |
|
4 |
|
|
5 |
|
|
| Class C common stock, par value $0.0001 per share – one share authorized, issued and outstanding as of March 31, 2021 and December 31, 2020 |
|
– |
|
|
– |
|
|
| Additional paid-in capital |
|
69,209 |
|
|
63,342 |
|
|
| Treasury stock, at cost; 439,166 and 572,447 shares as of March 31, 2021 and December 31, 2020 |
|
(11,651 |
) |
|
(15,187 |
) |
|
| Retained earnings (deficit) |
|
30,155 |
|
|
(21,814 |
) |
|
| Total stockholders’ equity attributable to Camping World Holdings, Inc. |
|
88,175 |
|
|
26,774 |
|
|
| Non-controlling interests |
|
36,475 |
|
|
(36,005 |
) |
|
| Total stockholders’ equity (deficit) |
|
124,650 |
|
|
(9,231 |
) |
|
| Total liabilities and stockholders’ equity (deficit) |
$ |
3,603,160 |
|
$ |
3,256,431 |
|
|
Earnings Per Share
Basic earnings per share of Class A common stock is computed by dividing net income (loss) available to Camping World Holdings, Inc. by the weighted-average number of shares of Class A common stock outstanding during the period. Diluted earnings per share of Class A common stock is computed by dividing net income (loss) available to Camping World Holdings, Inc. by the weighted-average number of shares of Class A common stock outstanding adjusted to give effect to potentially dilutive securities.
The following table sets forth reconciliations of the numerators and denominators used to compute basic and diluted earnings per share of Class A common stock (unaudited):
| Camping World Holdings, Inc. | ||||||||
| Three Months Ended March 31, | ||||||||
| (In thousands except per share amounts) |
2021 |
2020 |
||||||
| Numerator: | ||||||||
| Net income (loss) |
$ |
147,425 |
|
$ |
(14,129 |
) |
||
| Less: net (income) loss attributable to non-controlling interests |
|
(85,103 |
) |
|
5,969 |
|
||
| Net income (loss) attributable to Camping World Holdings, Inc. — basic |
|
62,322 |
|
|
(8,160 |
) |
||
| Add: reallocation of net income attributable to non-controlling interests from the assumed exchange of common units of CWGS, LLC for Class A common stock |
|
63,980 |
|
|
— |
|
||
| Net income (loss) attributable to Camping World Holdings, Inc. – diluted |
$ |
126,302 |
|
$ |
(8,160 |
) |
||
| Denominator: | ||||||||
| Weighted-average shares of Class A common stock outstanding — basic |
|
43,584 |
|
|
37,534 |
|
||
| Dilutive options to purchase Class A common stock |
|
165 |
|
|
— |
|
||
| Dilutive restricted stock units |
|
955 |
|
|
— |
|
||
| Dilutive common units of CWGS, LLC that are convertible into Class A common stock |
|
45,534 |
|
|
— |
|
||
| Weighted-average shares of Class A common stock outstanding — diluted |
|
90,238 |
|
|
37,534 |
|
||
| Earnings (loss) per share of Class A common stock — basic |
$ |
1.43 |
|
$ |
(0.22 |
) |
||
| Earnings (loss) per share of Class A common stock — diluted |
$ |
1.40 |
|
$ |
(0.22 |
) |
||
| Weighted-average anti-dilutive securities excluded from the computation of diluted earnings per share of Class A common stock: | ||||||||
| Stock options to purchase Class A common stock |
|
— |
|
|
738 |
|
||
| Restricted stock units |
|
1 |
|
|
1,732 |
|
||
| Common units of CWGS, LLC that are convertible into Class A common stock |
|
— |
|
|
51,649 |
|
||
Non-GAAP Financial Measures
To supplement our consolidated financial statements, which are prepared and presented in accordance with accounting principles generally accepted in the United States (“GAAP”), we use the following non-GAAP financial measures: EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income Attributable to Camping World Holdings, Inc. – Basic, Adjusted Net Income Attributable to Camping World Holdings, Inc. – Diluted, Adjusted Earnings Per Share – Basic, and Adjusted Earnings Per Share – Diluted (collectively the “Non-GAAP Financial Measures”). We believe that these Non-GAAP Financial Measures, when used in conjunction with GAAP financial measures, provide useful information about operating results, enhance the overall understanding of past financial performance and future prospects, and allow for greater transparency with respect to the key metrics we use in our financial and operational decision making. These Non-GAAP Financial Measures are also frequently used by analysts, investors and other interested parties to evaluate companies in the Company’s industry. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP, and they should not be construed as an inference that the Company’s future results will be unaffected by any items adjusted for in these non-GAAP Financial Measures. In evaluating these non-GAAP Financial Measures, you should be aware that in the future the Company may incur expenses that are the same as or similar to some of those adjusted in this presentation. The Non-GAAP Financial Measures that we use are not necessarily comparable to similarly titled measures used by other companies due to different methods of calculation.
EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin
We define “EBITDA” as net income before other interest expense, net (excluding floor plan interest expense), provision for income tax expense and depreciation and amortization. We define “Adjusted EBITDA” as EBITDA further adjusted for the impact of certain non-cash and other items that we do not consider in our evaluation of ongoing operating performance. These items include, among other things, long-lived asset impairment, lease termination costs, gains and losses on disposal of assets and other expense, net, equity-based compensation, Tax Receivable Agreement liability adjustment, restructuring costs related to the 2019 Strategic Shift, and other unusual or one-time items. We define “Adjusted EBITDA Margin” as Adjusted EBITDA as a percentage of total revenue. We caution investors that amounts presented in accordance with our definitions of EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin may not be comparable to similar measures disclosed by our competitors, because not all companies and analysts calculate EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin in the same manner. We present EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin because we consider them to be important supplemental measures of our performance and believe they are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in our industry. Management believes that investors’ understanding of our performance is enhanced by including these Non-GAAP Financial Measures as a reasonable basis for comparing our ongoing results of operations.
The following table reconciles EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin to the most directly comparable GAAP financial performance measures, which are net income (loss) and net income (loss) margin, respectively (unaudited):
| Three Months Ended | |||||||
| March 31, | |||||||
| ($ in thousands) |
2021 |
2020 |
|||||
| EBITDA: | |||||||
| Net income (loss) |
$ |
147,425 |
|
$ |
(14,129 |
) |
|
| Other interest expense, net |
|
12,223 |
|
|
14,658 |
|
|
| Depreciation and amortization |
|
12,701 |
|
|
14,078 |
|
|
| Income tax expense |
|
2,043 |
|
|
4,132 |
|
|
| Subtotal EBITDA |
|
174,392 |
|
|
18,739 |
|
|
| Long-lived asset impairment (a) |
|
546 |
|
|
6,569 |
|
|
| Lease termination (b) |
|
1,756 |
|
|
584 |
|
|
| (Gain) loss on disposal of assets, net (c) |
|
(99 |
) |
|
511 |
|
|
| Equity-based compensation (d) |
|
6,109 |
|
|
3,312 |
|
|
| Tax Receivable Agreement liability adjustment (e) |
|
3,520 |
|
|
— |
|
|
| Restructuring costs (f) |
|
3,067 |
|
|
6,282 |
|
|
| Adjusted EBITDA |
$ |
189,291 |
|
$ |
35,997 |
|
|
| Three Months Ended | |||||||
| March 31, | |||||||
| (as percentage of total revenue) |
2021 |
2020 |
|||||
| EBITDA margin: | |||||||
| Net income (loss) margin |
|
9.5 |
% |
|
(1.4 |
%) |
|
| Other interest expense, net |
|
0.8 |
% |
|
1.4 |
% |
|
| Depreciation and amortization |
|
0.8 |
% |
|
1.4 |
% |
|
| Income tax expense |
|
0.1 |
% |
|
0.4 |
% |
|
| Subtotal EBITDA margin |
|
11.2 |
% |
|
1.8 |
% |
|
| Long-lived asset impairment (a) |
|
0.0 |
% |
|
0.6 |
% |
|
| Lease termination (b) |
|
0.1 |
% |
|
0.1 |
% |
|
| (Gain) loss on disposal of assets, net (c) |
|
(0.0 |
%) |
|
0.0 |
% |
|
| Equity-based compensation (d) |
|
0.4 |
% |
|
0.3 |
% |
|
| Tax Receivable Agreement liability adjustment (e) |
|
0.2 |
% |
|
— |
|
|
| Restructuring costs (f) |
|
0.2 |
% |
|
0.6 |
% |
|
| Adjusted EBITDA margin |
|
12.2 |
% |
|
3.5 |
% |
|
Contacts
Investors:
InvestorRelations@campingworld.com
(866) 895-5330
Media Outlets:
Karen Porter
PR-CWGS@CampingWorld.com