Camping World Holdings has reported results for the third quarter ended Sept. 30, showing a gross profit decrease of 9.3 percent to $338.5 million.
Loss from operations, net loss and diluted loss per share of Class A common stock were $32.3 million, $65.3 million and included long-lived asset impairment and restructuring costs of $76 million related to the company’s previously disclosed 2019 strategic shift away from locations that do not sell and/or service RVs.
Revenue, however, increased 6 percent year-over-year to $1.39 billion. Good Sam services and plans segment revenue increased 2.2 percent to $42.2 million.
RV and outdoor retail segment store revenue decreased 5 percent to $1 billion. Vehicle units sold increased 1.3 percent to 28,653 units. New vehicle units sold decreased 4.7 percent to 18,592 units, while used vehicle units sold increased 14.6 percent to 10,061 units.
Average selling price per vehicle unit sold increased 2.3 percent to $32,383. New vehicles increased 2.4 percent to $36,613 per unit. Used vehicles increased 9.0 percent to $24,565 per unit
New vehicle inventory per dealership location, however, decreased 20.9 percent to $5.7 million from Dec. 31. Products, service and other revenue increased 13.5 percent to $290.8 million and gross profit decreased 44.1 percent to $57.6 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.
The company’s working capital and cash and cash equivalents as of Sept. 30 were $470.8 million and $130 million, respectively. Total inventories decreased 11.5 percent to $1.38 billion as compared to Dec. 31, 2018, driven by a 14.1 percent decrease in new RV inventory and 17.6 percent decrease in products, parts, accessories and miscellaneous inventory, partially offset by a 31.2 percent increase in used RV inventory.
Camping World expects the majority of the store closures and/or divestitures related to the 2019 strategic shift to be completed by Jan. 31.
In connection with the 2019 strategic shift, the company expects to incur costs relating to one-time employee termination benefits of $1 million, contract termination costs of between $10 million and $15 million, incremental inventory reserve charges of $27.3 million, and other associated costs of between $4 million and $6 million.