Camping World Holdings Inc. posted a loss in the third quarter due to its decision to strategically shift away from locations where the company does not have the ability or where it is not feasible to sell and/or service RVs. SGB Media reported that the company said it will close 28 of the 37 remaining Gander Outdoors doors that have not been converted into RV dealerships, as well as two of the seven outdoor lifestyle locations operated by TheHouse.com.
The loss from operations, net loss and diluted loss per share of Class A common stock in the third quarter were $32.3 million, $65.3 million, and 82 cents, respectively, and included long-lived asset impairment and restructuring costs of $76 million.
Camping World reported sales in the third quarter increased 6% to $1.39 billion. Adjusted EBITDA decreased 37.5% to $60.6 million, and was negatively impacted by discounting at retail locations earmarked for closure. Gross profit decreased 9.3% to $338.5 million.
Third Quarter 2019 Results
Good Sam Services and Plans Segment
- Segment revenue increased 2.2% to $42.2 million.
- Segment gross profit increased 0.2% to $22.8 million and segment gross margin decreased 108 basis points to 54.1 percent; and
- Segment income decreased 2.4% to $18.2 million.
RV and Outdoor Retail Segment
- Segment revenue increased 6.1% to $1.35 billion;
- Same store revenue decreased 5.0% to $1.04 billion
- Segment gross profit decreased 9.9% to $315.6 million and segment gross margin decreased 416 basis points to 23.5%.
- Segment loss was $42.8 million compared to segment income of $68.9 million in the third quarter last year and included $77.7 million of impairment and restructuring costs;
- Vehicle units sold increased 1.3% to 28,653 units;
- New vehicle units sold decreased 4.7% to 18,592 units.
- Used vehicle units sold increased 14.6% to 10,061 units.
- Average selling price per vehicle unit sold increased 2.3% to $32,383;
- New vehicles increased 2.4% to $36,613 per unit.
- Used vehicles increased 9.0% to $24,565 per unit.
- Same store vehicle units sold decreased 8.0% to 24,285 units;
- New vehicle same store units sold decreased 14.7% to 15,553 units.
- Used vehicle same store units sold increased 6.9% to 8,732 units.
- Gross profit per vehicle sold including finance and insurance increased 2.5% to $8,679.
- Finance and insurance revenue as a percentage of total vehicle revenue increased 47 basis points to 12.3%.
- New vehicle inventory per dealership location decreased 20.9% to $5.7 million from Dec. 31, 2018.
- Products, service and other revenue increased 13.5% to $290.8 million and gross profit decreased 44.1% to $57.6 million.
- Same store products, service and other revenue decreased 7.3% to $140.9 million.
- Good Sam Club revenue increased 17.7% to $12.6 million and gross profit increased 20.8% to $9.4 million; and Good Sam Club memberships increased 7.7% to approximately 2.17 million.
- At Sept. 30, the company operated a total of 209 RV and Outdoor Retail locations, with 153 of these selling and/or servicing RVs.
To view the full report click here.