Market Overview

Camping World Holdings, Inc. Reports Third Quarter Results

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Camping World Holdings, Inc. (NYSE:CWH) ("Camping World," "Company,"
"we," "us" or "our") today reported results for the third quarter ended
September 30, 2017.

Third Quarter 2017 Summary

  • Total revenue increased 25.0% to $1.24 billion;
  • Gross profit increased 27.3% to $356.7 million and gross margin
    increased 51 basis points to 28.8%;
  • Income from operations increased 27.8% to $112.1 million and operating
    margin increased 20 basis points to 9.0%;
  • Net income increased 24.6% to $85.3 million, net income margin
    decreased 2 basis points to 6.9% and adjusted pro forma net income(1)
    increased 53.4% to $68.6 million
  • Diluted earnings per share(2) was $0.68 and adjusted pro
    forma earnings per fully exchanged and diluted share (1)
    increased 44.7% to $0.77; and
  • Adjusted EBITDA(1) increased 35.2% to $122.1 million and
    adjusted EBITDA margin(1) increased 74 basis points to 9.9%.

_______________________________________

(1)   Adjusted pro forma net income, adjusted pro forma earnings per fully
exchanged and diluted share, adjusted EBITDA and adjusted EBITDA
margin are non-GAAP measures. For reconciliations of these non-GAAP
measures to the most directly comparable GAAP measures, see the
"Non-GAAP Financial Measures" section later in this press release.
(2) Diluted earnings per Class A common stock is applicable only for
periods after the Company's initial public offering. For a
discussion of earnings per share see the "Earnings Per Share"
section later in this press release.

Marcus Lemonis, Chairman and Chief Executive Officer, stated, "We are
very pleased with our third quarter results and the continued strength
in the underlying trends across our business. For the quarter, total
revenue grew 25.0%, adjusted pro forma net income increased 53.4% and
adjusted EBITDA grew 35.2%, once again demonstrating the power and
leverage of our unique business and operating model. Looking ahead, we
believe we are well positioned to continue gaining share in the RV
market and broadening our reach across the outdoor lifestyle consumer
market."

Presentation

This press release presents historical results, for the periods
presented, of the Company and its subsidiaries that are presented in
accordance with accounting principles generally accepted in the United
States ("GAAP"), unless noted as a non-GAAP financial measure. The
Company's initial public offering ("IPO") and related reorganization
transactions ("Reorganization Transactions") that occurred on October 6,
2016 resulted in CWH as the sole managing member of CWGS Enterprises,
LLC ("CWGS, LLC"), with sole voting power in and control of the
management of CWGS, LLC. Despite its position as sole managing member of
CWGS, LLC, CWH has a minority economic interest in CWGS, LLC. As of
September 30, 2017, CWH owned 34.1% of CWGS, LLC. Accordingly, the
Company consolidates the financial results of CWGS, LLC and reports a
non-controlling interest in its consolidated financial statements. As
the Reorganization Transactions are considered transactions among
entities under common control, the financial statements for the periods
prior to the IPO and related Reorganization Transactions have been
adjusted to combine the previously separate entities for presentation
purposes. Unless otherwise indicated, all financial comparisons in this
press release compare our financial results from the 2017 third quarter
to our financial results from the 2016 third quarter.

Third Quarter 2017 Results Compared to Third
Quarter 2016 Results

Units and Average Selling Prices

New vehicle units sold increased 33.3% to 19,107 units and the average
selling price of a new vehicle decreased 1.6% to $37,430. The increase
in new vehicle units sold was primarily driven by strong consumer demand
for new vehicles. The decrease in the average selling price of a new
vehicle was driven by a higher mix of lower-priced towable units.

Used vehicle units sold increased 7.2% to 8,557 units and the average
selling price of a used vehicle decreased 3.3% to $22,009. The increase
in used vehicle units sold was primarily driven by sales at new stores.

Revenue

Total revenue increased 25.0% to $1.24 billion from $991.1 million in
last year's third quarter. Consumer Services and Plans revenue increased
1.6% to $46.2 million and Retail revenue increased 26.1% to $1.19
billion. In the Retail segment, new vehicle revenue increased 31.2% to
$715.2 million primarily driven by the 33.3% increase in new vehicle
unit sales, used vehicle revenue increased 3.7% to $188.3 million,
parts, services and other revenue increased 24.3% to $187.8 million and
finance and insurance revenue increased 50.0% to $101.6 million. Finance
and insurance, net revenue as a percentage of total new and used vehicle
revenue increased to 11.2% from 9.3% in last year's third quarter.

Same store sales for the base of 115 retail locations that were open
both at the end of the corresponding period and at the beginning of the
preceding fiscal year increased 9.4% to $982.2 million for the three
months ended September 30, 2017. The increase in same store sales was
primarily driven by a 14.5% increase in new vehicle same store sales, a
30.5% increase in finance and insurance same store sales, and a 1.4%
increase in parts, services and other same store sales, partially offset
by a 7.9% decrease in used vehicle same store sales.

The Company operated a total of 137 Camping World retail locations, two
Overton's locations, two TheHouse.com locations, and one W82 location as
of September 30, 2017 compared to 120 Camping World retail locations and
zero Overton's, TheHouse.com, and W82 locations at September 30, 2016.

Gross Profit

Total gross profit increased 27.3% to $356.7 million, or 28.8% of total
revenue, from $280.2 million, or 28.3% of total revenue, in last year's
third quarter. On a segment basis, Consumer Services and Plans gross
profit increased 2.3% to $26.1 million, or 56.5% of segment revenue,
from $25.5 million, or 56.1% of segment revenue, and Retail gross profit
increased 29.8% to $330.6 million, or 27.7% of segment revenue, from
$254.8 million, or 26.9% of segment revenue, in last year's third
quarter. A 41 basis point improvement in Consumer Services and Plans
gross margin was primarily driven by an increase in roadside assistance
file size and reduced program costs. A 77 basis point increase in Retail
gross margin was primarily driven by an increase in the finance and
insurance, net revenue as a percentage of total new and used vehicle
revenue to 11.2% of vehicle sales from 9.3% of vehicle sales in last
year's third quarter, and the 33.3% increase in new units sold.

Operating Expenses

Operating expenses increased 27.0% to $244.6 million from $192.5 million
in last year's third quarter. Selling, general and administrative
("SG&A") expenses increased 26.8% to $236.2 million from $186.3 million
in last year's third quarter. The increase in SG&A expenses was
primarily driven by the additional expenses associated with the
incremental eighteen dealerships and two Overton's locations operated
during the third quarter of 2017 versus the prior year period, $7.3
million of pre-opening and payroll costs associated with the Gander
Mountain Acquisition, and $0.5 million of transaction expenses
associated with the acquisition into new or complimentary markets. As a
percentage of total gross profit, SG&A expenses declined 25 basis points
to 66.2% compared to last year's third quarter. Depreciation and
amortization expense increased 34.8% to $8.4 million primarily due to
the addition of acquired and greenfield locations, and acquired
businesses.

Floor Plan Interest & Other Interest Expenses

Floor plan interest expense increased to $7.4 million from $4.3 million
in last year's third quarter. The increase was primarily attributable to
higher inventory from new dealership locations and locations expecting
higher unit sales, as well as a 68 basis point increase in the average
floor plan borrowing rate. Other interest expense decreased $1.7 million
to $11.0 million from $12.7 million in last year's third quarter. The
decrease was primarily attributable to a decrease in average debt
outstanding, and an 86 basis point decrease in the average interest rate.

Net Income, Adjusted Pro Forma Net Income(1),
Diluted Earnings Per Share, and Adjusted Pro Forma Earnings Per Fully
Exchanged and Diluted Share
(1)

Net income increased 24.6% to $85.3 million. Adjusted pro forma net
income(1) increased 53.4% to $68.6 million from $44.8
million. Diluted earnings per share(2) was $0.68, and
adjusted pro forma earnings per diluted fully exchanged and diluted share(1)
increased 44.7% to $0.77 from $0.53 in last year's third quarter.

Adjusted EBITDA and Adjusted EBITDA Margin(1)

Adjusted EBITDA(1) increased 35.2% to $122.1 million from
$90.3 million and adjusted EBITDA margin(2) increased 74
basis points to 9.9% from 9.1% in the third quarter of fiscal 2016.

Select Balance Sheet and Cash Flow Items

The Company's working capital and cash and cash equivalents balance at
September 30, 2017 were $343.7 million and $163.2 million, respectively,
compared to $266.8 million and $114.2 million, respectively, at December
31, 2016. At the end of the third quarter 2017, the Company had $3.2
million of letters of credit outstanding under its $35 million revolving
credit facility, $734.5 million of term loan principal outstanding under
its senior secured credit facilities and $799.7 million of floor plan
notes payable outstanding under its floor plan financing facility.
Inventory at the end of the third quarter of fiscal 2017 increased 32.4%
to $1,204.1 million compared to $909.3 million at December 31, 2016.

Conference Call Information

A conference call to discuss the fiscal 2017 third quarter financial
results is scheduled for today, November 9, 2017, at 4:30 p.m. Eastern
Time. Investors and analysts can participate on the conference call by
dialing 800-441-0022 or 719-457-2605 and using conference ID # 6378900.
Interested parties can also listen to a live webcast or replay of the
conference call by logging on to the Investor Relations section on the
Company's website at http://investor.campingworld.com.
The replay of the conference call webcast will be available at the
investor relations website until November 16, 2017.

About Camping World

Camping World, headquartered in Lincolnshire, Illinois, is the leading
outdoor and camping retailer, offering an extensive assortment of
recreational vehicles for sale, RV and camping gear, RV maintenance and
repair and the industry's broadest and deepest range of services,
protection plans, products and resources. Since the Company's founding
in 1966, Camping World has grown to become one of the most well-known
destinations for everything RV, with 137 retail locations in 36 states
and a comprehensive e-commerce platform.

Forward Looking Statements

This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. All
statements contained in this press release that do not relate to matters
of historical fact should be considered forward-looking statements,
including, without limitation, statements about our expectation to
continue gaining market share in the RV business and broadening our
reach across the outdoor lifestyle consumer market. These
forward-looking statements are based on management's current
expectations.

These statements are neither promises nor guarantees, but involve known
and unknown risks, uncertainties and other important factors that may
cause our actual results, performance or achievements to be materially
different from any future results, performance or achievements expressed
or implied by the forward-looking statements, including, but not limited
to, the following: the availability of financing to us and our
customers; fuel shortages, or high prices for fuel; the well-being, as
well as the continued popularity and reputation for quality, of our
manufacturers; general economic conditions in our markets and ongoing
economic and financial uncertainties; our ability to attract and retain
customers; competition in the market for services, protection plans,
products and resources targeting the RV lifestyle or RV enthusiast; our
expansion into new, unfamiliar markets as well as delays in opening or
acquiring new retail locations; unforeseen expenses, difficulties, and
delays frequently encountered in connection with expansion through
acquisitions; our failure to maintain the strength and value of our
brands; our ability to successfully order and manage our inventory to
reflect consumer demand in a volatile market and anticipate changing
consumer preferences and buying trends; fluctuations in our same store
sales and whether they will be a meaningful indicator of future
performance; the cyclical and seasonal nature of our business; our
ability to operate and expand our business and to respond to changing
business and economic conditions, which depends on the availability of
adequate capital; the restrictive covenants in our existing senior
secured credit facilities and our floorplan financial facility; our
reliance on three fulfillment and distribution centers for our retail,
e-commerce and catalog businesses; natural disasters, whether or not
caused by climate change, unusual weather condition, epidemic outbreaks,
terrorist acts and political events; our dependence on our relationships
with third party providers of services, protection plans, products and
resources and a disruption of these relationships or of these providers'
operations; whether third party lending institutions and insurance
companies will continue to provide financing for RV purchases; our
inability to retain senior executives and attract and retain other
qualified employees; our ability to meet our labor needs; our inability
to maintain the leases for our retail locations or locate alternative
sites for our stores in our target markets and on terms that are
acceptable to us; our business being subject to numerous federal, state
and local regulations; regulations applicable to the sale of extended
service contracts; our dealerships' susceptibility to termination,
non-renewal or renegotiation of dealer agreements if state dealer laws
are repealed or weakened; our failure to comply with certain
environmental regulations; climate change legislation or regulations
restricting emission of "greenhouse gases;" a failure in our e-commerce
operations, security breaches and cybersecurity risks; our inability to
enforce our intellectual property rights and accusations of our
infringement on the intellectual property rights of third parties; our
inability to maintain or upgrade our information technology systems or
our inability to convert to alternate systems in an efficient and timely
manner; disruptions to our information technology systems or breaches of
our network security; Marcus Lemonis, through his beneficial ownership
of our shares directly or indirectly held by ML Acquisition Company, LLC
and ML RV Group, LLC, has substantial control over us and may approve or
disapprove substantially all transactions and other matters requiring
approval by our stockholders, including, but not limited to, the
election of directors; the exemptions from certain corporate governance
requirements that we will qualify for, and intend to rely on, due to the
fact that we are a "controlled company" within the meaning of the New
York Stock Exchange, or NYSE, listing requirements; and whether we are
able to realize any tax benefits that may arise from our organizational
structure and any redemptions or exchanges of CWGS, LLC common units for
cash or stock.

These and other important factors discussed under the caption "Risk
Factors" in our Annual Report on Form 10-K filed with the Securities and
Exchange Commission, or SEC, on March 13, 2017, and our other reports
filed with the SEC could cause actual results to differ materially from
those indicated by the forward-looking statements made in this press
release. Any such forward-looking statements represent management's
estimates as of the date of this press release. While we may elect to
update such forward-looking statements at some point in the future, we
disclaim any obligation to do so, even if subsequent events cause our
views to change, except as required under applicable law. These
forward-looking statements should not be relied upon as representing our
views as of any date subsequent to the date of this press release.

Results of Operations for the Third Quarter of Fiscal 2017

       
Camping World Holdings, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(In Thousands Except Per Share Amounts)
 
Three Months Ended September 30,   Nine Months Ended September 30,
2017 2016 2017 2016
(unaudited) (unaudited) (unaudited) (unaudited)
Revenue:
Consumer services and plans $ 46,169 $ 45,442 $ 144,518 $ 135,868
Retail
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