Camping World Gears Up for Secondary Offering

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Camping World Holdings Inc. (NYSE: CWH) has filed an amended S-1 form with the U.S. Securities and Exchange Commission (SEC) regarding its secondary offering. The company plans to offer 10 million shares, with an overallotment option for an additional 1.5 million shares. At the Friday’s closing price of $31.86, the entire offering is valued up to $366.39 million.

The underwriters for the offering are Goldman Sachs, JPMorgan, Merrill Lynch, Credit Suisse, Baird, BMO Capital Markets, KeyBanc Capital Markets, Stephens and Wells Fargo.

The company believes that it is the only provider of a comprehensive portfolio of services, protection plans, products and resources for recreational vehicle (RV) enthusiasts. Roughly 9 million households in the United States own an RV, and of that installed base, it has approximately 3.3 million active customers.

Camping World generates recurring revenue by providing RV owners and enthusiasts the full spectrum of services, protection plans, products and resources that it believes are essential to operate, maintain and protect their RV and to enjoy the RV lifestyle. The firm provides these offerings through its two iconic brands: Good Sam and Camping World.

In terms of its finances, the company detailed in the filing:

  • Our Active Customer database had approximately 3.3 million customers on December 31, 2016, representing a 6.4% five-year compound annual growth rate (CAGR).
  • Our total revenue was $3.5 billion for the fiscal year ended December 31, 2016, representing a 17.4% five-year CAGR.
  • Our net income was $203.2 million for the fiscal year ended December 31, 2016, representing a 48.0% five-year CAGR.
  • Our Adjusted EBITDA was $291.3 million for the fiscal year ended December 31, 2016, representing a 22.5% five-year CAGR.

The company intends to use the net proceeds from this offering to purchase common units directly from CWGS, with the remainder to be used for general corporate purposes, including the funding of the Gander Mountain Acquisition, including the related re-opening and initial working capital needs of 70 or more retail locations. Camping World will not receive proceeds for the sale of shares by the selling stockholders.

Shares of Camping World were recently trading at $31.00, with a consensus analyst price target of $37.25 and a 52-week trading range of $20.45 to $36.60.