Camping World Holdings Inc. (CWH) reported an increase in revenue and net income for its fourth quarter, ended Dec. 31.
During the period, sales grew 3.5% to $670 million while net income increased 13.6% to $13.6 million, or 9 cents per diluted share. Fourth-quarter gross profit increased 9.2% to $196.6 million and gross margin increased 154 basis points to 29.3%.
Income from operations grew 40% to $34.2 million while operating margin increased 133 basis points to 5.1%.
For the full year, revenue increased 7.3% to $3.53 billion and net income rose 13.8% to $203.2 million, or 9 cents per share. Income from operations increased 15.1% to $281.4 million and operating margin increased 54 basis points to 8.0%.
Marcus Lemonis, chairman and CEO, stated, “Our business in the fourth quarter and fiscal 2016 was very strong and we are pleased with the results. The fourth quarter and full year benefited from strong consumer demand for recreational vehicles and our ability to sell our comprehensive portfolio of products and services across a growing proprietary customer database. In particular, our focus on the towable segment of the RV industry and higher-margin product and service revenue is driving our operating margin growth and flowing through to our bottom line.”
Fourth-quarter highlights include:
• New vehicle units sold increased 24.5% to 7,986 in the quarter while the average selling price of a new vehicle decreased 8.5% to $41,731 in the fourth quarter fiscal 2016.
• Retail revenue increased 3.4% to $621.1 million from $600.5 million in the fourth quarter of fiscal 2015. he decrease in the average selling price of new vehicles was driven by a higher mix of lower-priced towable units, which was partially due to an increase in the number of first-time vehicle buyers.
• Within the retail segment, new vehicle revenue increased 13.8% to $333.3 million; used vehicle revenue decreased 19.7% to $128.9 million; parts, services and other revenue increased 3.2% to $117.7 million; and finance and insurance revenue increased 24.9% to $41.2 million.
• Finance and insurance net revenue as a percentage of total new and used vehicle revenue increased to 8.9% from 7.3% in the fourth quarter of fiscal 2015, and benefited from a sales mix shift toward lower-priced towable units and continued employee training on the sale of finance and insurance related programs.
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