Camping World Holdings Inc. reported a 32.9% increase in revenue to $889 million for its fourth quarter, ended Dec. 31.
The company posted a net loss of $52.5 million during the period that included a $99.8 million tax receivable liability adjustment to other income and $165.4 million of income taxes related to changes stemming from the U.S. tax reform enacted in December 2017. Net loss margin was 5.9% and diluted earnings per share was $1.87.
Other highlights included:
- Gross profit increased 37.1% to $266.6 million and gross margin increased 92 basis points to 30.0%;
- Income from operations increased 37.9% to $44.3 million and operating margin increased 28 basis points to 7.4%.
- Adjusted pro forma net income increased 112.8% to $22.0 million and Adjusted Pro Forma Earnings per Fully Exchanged and Diluted Share increased 100% to 25 cents.
- Adjusted EBITDA increased 76% to $65.3 million and adjusted EBITDA margin increased 180 basis points to 7.3%.
Fiscal 2017 Summary
- Total revenue increased 21.8% to $4.3 billion.
- Gross profit increased 25.1% to $1.2 billion and gross margin increased 77 basis points to 29.1%.
- Income from operations increased 29.4% to $361.4 million, and operating margin increased 50 basis points to 8.4%.
- Net income was $186 million and included a $99.7 million tax receivable liability adjustment to other income, and $165.4 million of income taxes related to changes stemming from the U.S. tax reform enacted in December 2017. Net income margin was 4.3% and diluted earnings per share was 70 cents.
- Diluted earnings per share was $1.87, adjusted pro forma net income increased 51% to $198.7 million and adjusted pro forma earnings per fully exchanged and diluted share increased 45.9% to $2.29.
- Adjusted EBITDA(1) increased 38.2% to $399.6 million and adjusted EBITDA margin increased 111 basis points to 9.3%.
Chairman and Chief Executive Officer Marcus Lemonis stated, “We had a very strong fourth quarter and fiscal year and are pleased with the continued performance of our business and underlying trends in the RV market. Demand for towable and smaller recreational vehicles remained strong throughout 2017, and we made the strategic decision to carry a little more inventory in order to drive volumes and gain market share in the final months of the year. This decision paid off and we generated record fourth quarter revenue and adjusted EBITDA. In the fourth quarter, revenue increased 33% to $889 million, adjusted pro forma net income increased 113% to $22 million, and adjusted EBITDA increased 76% to $65 million.
“Over the past year, we have acquired a number of outdoor and active sports businesses that give us access to a more diverse base of outdoor lifestyle customers,” he continued. “Overton’s, Gander Outdoors, TheHouse.com, Uncle Dan’s, W82 and Erehwon all come with great talent, great products and a loyal customer following that we believe we can leverage over time through cross-selling and cross-promotions. We began opening our first Gander Outdoors stores in December 2017 and are pleased with the early trends, including Good Sam Club conversion rates at these stores.”
The company noted that certain revisions have been recorded in prior periods to correct for errors that were immaterial to its previously-reported consolidated financial statements. In connection with the preparation of the financial statements for the year, errors were identified relating to the lack of deferral of a portion of Good Sam roadside assistance policies sold through the finance and insurance process with the sale of new and used vehicles; the application of a portion of certain vendor rebates against the related inventory balances; the elimination of the intercompany allocation of certain revenue from new and used vehicles to consumer services and plans; and the allocation of the intercompany markup between costs applicable to new and used vehicles. As a result of these revisions, new vehicles revenue, used vehicles revenue, finance and insurance, net revenue, costs applicable to revenue – new vehicles, costs applicable to revenue – used vehicles, all within the retail segment, and net income attributable to non-controlling interests and earnings per share, basic and diluted were corrected.
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