Camping World Holdings Inc. today (May 8) reported total revenue increased 20.4% to a first-quarter record of $1.1 billion during the period ended March 31.
Net income during the quarter decreased to $17.3 million, or 8 cents per diluted share, from $49.6 million, or 38 cents a share, a year ago.
Adjusted pro forma net income increased 16.5% to $36.9 million, and adjusted pro forma earnings per diluted share increased 9.7% to 41 cents while Adjusted EBITDA decreased 0.1% to $71.8 million.
The company said earnings reflected $19.7 million of pre-opening expenses related to the Gander Outdoors store openings.
Other highlights include:
- Total number of recreational vehicles sold increased 21% to a first-quarter record of 24,547 units from 20,279 units the previous year.
- Total same store sales increased 3.9% to a first-quarter record of $838.6 million.
- Finance and insurance revenue as a percentage of total vehicle revenue increased 205 basis points to an all-time high of 12.2%;
- Gross profit increased 21% to a first-quarter record of $304.8 million and gross margin increased 13 basis points to a first quarter record of 28.7%.
- Income from operations decreased to $49.8 million.
Chairman and Chief Executive Office Marcus Lemonis stated, “We had a very strong first quarter and are pleased with the continued performance of our business. For the quarter, total revenue increased 20.4% to a first quarter record $1.1 billion, total gross profit increased 21.0% to a first quarter record $304.8 million, adjusted pro forma net income increased 16.5% to $36.9 million and Adjusted EBITDA of $71.8 million was right in line with our expectation. While the unseasonably cold weather throughout a good portion of the country has likely impacted the early part of the peak selling season, we believe the backdrop across the RV industry remains strong and we continue to plan our business around a mid-single digit increase in same store sales in 2018.”
Lemonis continued, “We remain committed to profitable growth and have not seen any changes in the overall acquisition environment. In the first quarter, we announced five new acquisitions with six locations across five different states and plans to open eight new Supercenters late this year and early next year that we anticipate will begin to combine all of our brands in one location and serve a broad range of RV, outdoor and active lifestyle customers.”
The average selling price of a unit sold decreased 4.3% to $30,619 from $32,010 in the first quarter of 2017. New vehicle units sold increased 18.4% to 16,296 units and the average selling price of a new vehicle decreased 2.8% to $35,561. Used vehicle units sold increased 26.6% to 8,251 units and the average selling price of a used vehicle decreased 6.8% to $20,857 per unit.
Same store sales for the base of 120 retail locations that were open on March 31, 2018 and Jan. 1, 2017 increased 3.9% to $838.6 million for the quarter. The increase in same store sales was primarily driven by a 22% increase in finance and insurance same store sales, a 1.6% increase in new vehicle same store sales, a 5.4% increase in used vehicle same store sales, and a 1.% increase in parts, services and other same store sales.
The company operated a total of 141 Camping World retail locations, one Overton’s location, two TheHouse.com locations, 28 Gander Outdoors locations, two W82 locations, five Uncle Dan’s locations, and four Erehwon Mountain Outfitter locations as of March 31, 2018, compared to 126 Camping World retail locations at March 31, 2017.
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