Post Earnings Coverage as Camping World’s Q4 Bottom-line Surged 105.9%; Outshined Forecasts

Upcoming AWS Coverage on Mack-Cali Realty Post-Earnings Results

LONDON, UK / ACCESSWIRE / March 22, 2017 / Active Wall St. announces its post-earnings coverage on Camping World Holdings, Inc. (NYSE: CWH). The Company reported its financial results for the fourth quarter fiscal 2016 (Q4 FY16) and full year fiscal 2016 (FY16) on March 08, 2017. The Lincolnshire, Illinois-based Company’s quarterly adjusted pro-forma earnings per fully exchanged and diluted share surged 105.9% y-o-y; beating market consensus estimates. Register with us now for your free membership at:

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One of Camping World Holdings’ competitors within the REIT – Office space, Mack-Cali Realty Corp. (NYSE: CLI), reported on February 28, 2017, its results for the fourth quarter 2016. AWS will be initiating a research report on Mack-Cali Realty in the coming days.

Today, AWS is promoting its earnings coverage on CWH; touching on CLI. Get our free coverage by signing up to:

http://www.activewallst.com/register/

Earnings Reviewed

During the quarter ended on December 31, 2016, Camping World’s total revenues increased 3.5% to $670.03 million, from $647.31 million recorded at the end of Q4 FY15. However, total revenue numbers for Q4 FY16 lagged behind market consensus estimates of $675.5 million.

The recreational vehicle retailer and services provider’s net income increased 13.6% to $13.64 million in Q4 FY16 from $12.00 million in Q4 FY15. The Company’s adjusted pro-forma earnings per fully exchanged and diluted share surged to $0.14 in Q4 FY16, from $0.07 in the previous year’s same quarter. Wall Street had expected the Company to report adjusted pro-forma earnings of $0.09 per fully exchanged and diluted share.

In FY16, Camping World’s total revenue came in at $3.53 billion, up 7.3% from $3.29 billion in the previous year. The Company net income increased 13.8% to $203.24 million in FY16 from $178.53 million in FY15. Meanwhile, the Company reported adjusted pro-forma earnings of $1.58 per fully exchanged and diluted share in FY16 compared to $1.27 per fully exchanged and diluted share in FY15.

Operational Metrics

For the reported quarter, the Company’s total gross profit grew 9.2% y-o-y to $196.59 million; whereas gross margin was up by 154 basis points y-o-y to 29.3% in Q4 FY16. The Company’s income from operations surged 40.0% in Q4 FY16 to $34.24 million from $24.46 million in Q4 FY15. Additionally, the Company’s operating margin was up by 133 basis points y-o-y in Q4 FY16 to 5.1%. In the reported quarter, adjusted EBITDA stood at $39.20 million, up 27.1% from $30.85 million in Q4 FY15. Furthermore, adjusted EBITDA margin increased 109 basis points to 5.9% in Q4 FY16 from 4.8% in the prior year’s same quarter.

Segment

Camping World’s Consumer services and plans revenues stood at $48.91 million in Q4 FY16, rising 4.4% from $46.85 million in Q4 FY15. The Company attributed the increase in segment revenues to rise in club memberships, roadside assistance contracts, and vehicle insurance written premiums. The segment reported gross profit of $28.70 million in Q4 FY16, rising 13.5% from $25.30 million in Q4 FY15. Moreover, the segment’s gross margin was up by 469 basis points y-o-y to 58.7% of segment’s revenue in Q4 FY16.

The Company’s Retail revenue increased 3.4% to $621.13 million in Q4 FY16 from $600.46 million in Q4 FY15. The segment’s gross profit also improved 8.6% during Q4 FY16 to $167.88 million, from $154.65 million in Q4 FY15. In the reported quarter, the segment’s gross margin rose 127 basis points y-o-y to 27.0%. The increase in the segment’s gross margin was driven primarily by an increase in the finance and insurance penetration rate to 8.9% of vehicle sales in Q4 FY16 from 7.3% of vehicle sales in Q4 FY15.

Cash Flow & Balance Sheet

During full-year FY16, Camping World’s net cash provided by operating activities were $223.71 million, up from $112.14 million in FY15. At the close of books in the reported quarter, Camping World had $114.20 million in cash and cash equivalents compared to $92.03 million at the close of books on December 31, 2015. Additionally, the Company had long-term debt amounting to $620.30 million as on December 31, 2016, compared to $673.30 million as on December 31, 2015.

Dividend

In a separate press release on March 02, 2017, Camping World’s Board of Directors declared a cash dividend of $0.1532 per share on the Company’s Class A Common Stock, which includes regular quarterly cash dividend of $0.08 per share and a $0.0732 per share special cash dividend. The dividend Payment is expected to be made on March 31, 2017, to stockholders of record at the close of business on March 17, 2017.

IPO

On October 13, 2016, Camping World had announced the closing of its initial public offering of 11,363,636 shares of its Class A common stock at a public offering price of $22.00 per share. The shares had begun trading on the New York Stock Exchange on October 07, 2016 under the ticker symbol “CWH”.

Stock Performance

At the close of trading session on Tuesday, March 21, 2017, Camping World Holdings’ stock price declined 5.15% to end the day at $32.03. A total volume of 396.85 thousand shares were exchanged during the session, which was above the 3-month average volume of 248.21 thousand shares. The Company’s share price has gained 1.29% in the past three months. The stock currently has a market cap of $2.59 billion. Additionally, shares of the Company are trading at a PE ratio of 13.47 and have a dividend yield of 1.00%.

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