Camping World Holdings Inc. (CWH) has filed with the U.S. Securities and Exchange Commission (SEC) for a secondary offering. The company intends to offer 7 million shares, with an overallotment option for an additional 1.05 million shares. At the most recent closing price of $31.72, the entire offering is valued up to $253.76 million.
The underwriters for the offering are Goldman Sachs and JPMorgan.
The company believes that it is the only provider of a comprehensive portfolio of services, protection plans, products and resources for recreational vehicle (RV) enthusiasts. Roughly 9 million households in the United States own an RV, and of that installed base, it has approximately 3.3 million active customers.
Camping World generates recurring revenue by providing RV owners and enthusiasts the full spectrum of services, protection plans, products and resources that it believes are essential to operate, maintain and protect their RV and to enjoy the RV lifestyle. The firm provides these offerings through its two iconic brands: Good Sam and Camping World.
In terms of its finances, the company detailed in the filing:
- Active Customer database had approximately 3.3 million customers on December 31, 2016, representing a 6.4% five-year compound annual growth rate (CAGR).
- Total revenue was $3.5 billion for the fiscal year ended December 31, 2016, representing a 17.4% five-year CAGR.
- Net income was $203.2 million for the fiscal year ended December 31, 2016, representing a 48.0% five-year CAGR.
- Adjusted EBITDA was $291.3 million for the fiscal year ended December 31, 2016, representing a 22.5% five-year CAGR.
The selling stockholders will receive all the proceeds from this offering.
CWH shares closed most recently at $31.72.
Headquartered in the northern Chicago suburb of Lincolnshire, Ill., CWH is parent company to 135 Camping World retail stores across the nation — taking into account the 13 stores acquired, or soon-to-be-acquired, in 2Q 2017, as reported in the SEC filing — as well as the 1.7 million-member Good Sam Club and its related insurance and extended service contract offerings.
Click here to read the full report.