Business Wire | Nov 2, 2020 07:30AM EST

Camping World Holdings, Inc. Reports Third Quarter 2020 Results and Announces Stock Repurchase Program

Nov. 02, 2020

LINCOLNSHIRE, IL--(BUSINESS WIRE)--Nov. 02, 2020--Camping World Holdings, Inc. (NYSE: CWH) (the "Company"), America's largest retailer of recreational vehicles ("RVs") and related services and products, today reported results for the third quarter ended September 30, 2020.

Marcus Lemonis, Chairman and CEO of Camping World Holdings, Inc. stated, "I am very pleased with our team's performance in the third quarter. Coming off of an extremely positive second quarter, demand remained strong and we were able to achieve record breaking third quarter results with net income of $155 million and Adjusted EBITDA of $217 million. Our ability to focus on fundamentals including maximizing gross margins and maintaining expense controls was key to our success in the quarter. Our year to date net income was $304 million and Adjusted EBITDA was $474 million."

Third quarter operating highlights and year-over-year comparisons:

* Revenue increased 21.0%, or $290.8 million, to $1.679 billion; * Gross profit increased 57.5% to $533.1 million and gross margin increased 737 basis points to 31.8%; * Selling, general and administrative expenses increased 7.8% to $323.0 million and selling, general and administrative expenses as a percentage of gross profit were 60.6% for the third quarter and 65.1% for the nine-month period ended September 30, 2020; * Net income increased 337.2% to $154.8 million and net income margin was 9.2% for the third quarter and 7.0% for the nine-month period ended September 30, 2020; * Adjusted EBITDA(1) increased 258.4% to $217.0 million and adjusted EBITDA margin was 12.9% for the third quarter and 11.0% for the nine-month period ended September 30, 2020; and * Cash and cash equivalents, maintained in our primary cash accounts, was $482.6 million on September 30, 2020 and we also maintained an additional $104.3 million of cash in our floorplan interest offset account on September 30, 2020; * The total leverage ratio under our senior secured credit facilities was 2.3x at September 30, 2020 and we expect the total leverage ratio to be below 2.0x at December 31, 2020.

2020 Adjusted EBITDA Guidance Update(2)

As a result of our financial performance during the three months ended September 30, 2020, we are updating our 2020 Adjusted EBITDA guidance from a range of $460 million to $490 million to a revised range of $495 million to $515 million.

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Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP measures. For a(1) reconciliation 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) Updated guidance provided on November 2, 2020. Prior guidance provided on September 14, 2020.

Stock Repurchase Program

On October 30, 2020, the Company's Board of Directors authorized a stock repurchase program for the repurchase of up to $100.0 million of the Company's Class A common stock, expiring on October 31, 2022. Repurchases under the program may be made in the open market, in privately negotiated transactions or otherwise, with the amount and timing of repurchases to be determined at the Company's discretion, depending on market conditions and corporate needs. Open market repurchases will be structured to occur in accordance with applicable federal securities laws, including within the pricing and volume requirements of Rule 10b-18 under the Securities Exchange Act of 1934, as amended. The Company may also, from time to time, enter into Rule 10b5-1 plans to facilitate repurchases of its shares under this authorization. This program does not obligate the Company to acquire any particular amount of Class A common stock and the program may be extended, modified, suspended or discontinued at any time at the Board's discretion. The Company expects to fund the repurchases using cash on hand.

Earnings Conference Call and Webcast Information

A conference call to discuss the Company's third quarter 2020 financial results is scheduled for today, November 2, 2020, at 3:00pm Eastern Time. Investors and analysts can participate on the conference call by dialing (888) 394-8218 or (323) 701-0225 and using conference ID# 8428019. 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 on the investor relations website for approximately 90 days.

Presentation

This press release presents historical results for the periods presented of the Company and its subsidiaries, which 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 the Company 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, the Company has a minority economic interest in CWGS, LLC. As of September 30, 2020, the Company owned 47.7% of CWGS, LLC. Accordingly, the Company consolidates the financial results of CWGS, LLC and reports a non-controlling interest in its consolidated financial statements. Unless otherwise indicated, all financial comparisons in this press release compare our financial results for the third quarter ended September 30, 2020 to our financial results from the third quarter ended September 30, 2019.

About Camping World Holdings, Inc.

Camping World Holdings, Inc. (together with its subsidiaries) is America's largest retailer of RVs and related products and services. Our vision is to build a long-term legacy business that makes RVing fun and easy, and our Camping World and Good Sam brands have been serving RV consumers since 1966. We strive to build long-term value for our customers, employees, and stockholders by combining a unique and comprehensive assortment of RV products and services with a national network of RV dealerships, service centers and customer support centers along with the industry's most extensive online presence and a highly-trained and knowledgeable team of associates serving our customers, the RV lifestyle, and the communities in which we operate. We also believe that our Good Sam organization and family of programs and services uniquely enables us to connect with our customers as stewards of the RV enthusiast community and the RV lifestyle.

For more information, please visit www.CampingWorld.com.

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 business plans and goals, including the impact of COVID-19 on our business, future financial results and financial condition, our expected leverage ratio, demand for our products, our liquidity and working capital, our stock repurchase program, and our beliefs regarding our competitive position and prospects for the future. 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: risks related to the COVID-19 pandemic and its impact on our business, financial results and financial condition; our ability to execute and achieve the expected benefits of our 2019 Strategic Shift; the availability of financing to us and our customers; fuel shortages or high prices for fuel; the success of our manufacturers; general economic conditions in our markets; changes in consumer preferences; competition in our industry; risks related to acquisitions and expansion into new markets; our failure to maintain the strength and value of our brands; our ability to manage our inventory; fluctuations in our same store sales; the cyclical and seasonal nature of our business; our dependence on the availability of adequate capital and risks related to our debt; our reliance on four fulfillment and distribution centers; natural disasters, including epidemic outbreaks; risks associated with selling goods manufactured abroad; our dependence on our relationships with third party suppliers; our ability to retain senior executives and attract and retain other qualified employees; risks associated with leasing substantial amounts of space; regulatory risks; data privacy and cybersecurity risks; risks related to our intellectual property; the impact of ongoing or future lawsuits against us and certain of our officers and directors; and risks related to our organizational structure.

These and other important factors discussed under the caption "Risk Factors" in our Annual Report on Form 10-K filed for the year ended December 31, 2019, as updated in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2020, 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.

Camping WorldHoldings, Inc.and Subsidiaries

Consolidated Statements ofOperations (unaudited)

(In ThousandsExcept Per ShareAmounts)

Three Months Ended September Nine Months Ended September 30, 30,

2020 2019 2020 2019

Revenue:Good Sam $ 45,941 $ 42,235 $ 137,668 $ 133,895 Services andPlansRV and OutdoorRetailNew vehicles 907,588 680,716 2,303,080 1,989,163

Used vehicles 298,651 247,151 780,226 672,908

Products, 276,622 290,771 680,417 760,073 service andotherFinance and 138,779 114,466 378,553 334,582 insurance, netGood Sam Club 11,172 12,633 32,827 36,467

Subtotal 1,632,812 1,345,737 4,175,103 3,793,193

Total revenue 1,678,753 1,387,972 4,312,771 3,927,088

Costs applicableto revenue(exclusive ofdepreciation andamortizationshown separatelybelow):Good Sam Club 18,600 19,401 55,693 58,878 Services andPlansRV and OutdoorRetailNew vehicles 730,175 598,718 1,909,187 1,743,161

Used vehicles 223,033 194,947 595,655 530,474

Products, 171,666 233,174 421,276 537,885 service andotherGood Sam Club 2,130 3,259 6,510 9,900

Subtotal 1,127,004 1,030,098 2,932,628 2,821,420

Total costs 1,145,604 1,049,499 2,988,321 2,880,298 applicable torevenue Gross profit:Good Sam 27,341 22,834 81,975 75,017 Services andPlansRV and OutdoorRetailNew vehicles 177,413 81,998 393,893 246,002

Used vehicles 75,618 52,204 184,571 142,434

Products, 104,956 57,597 259,141 222,188 service andotherFinance and 138,779 114,466 378,553 334,582 insurance, netGood Sam Club 9,042 9,374 26,317 26,567

Subtotal 505,808 315,639 1,242,475 971,773

Total gross 533,149 338,473 1,324,450 1,046,790 profit Operatingexpenses:Selling, 322,990 299,564 862,237 870,995 general, andadministrativeDepreciation and 12,304 14,104 38,949 41,644 amortizationLong-lived asset 4,378 50,025 10,947 50,025 impairmentLease 505 - 1,957 - termination(Gain) loss on (121 ) 7,087 662 9,247 disposal ofassetsTotal operating 340,056 370,780 914,752 971,911 expenses Income (loss) 193,093 (32,307 ) 409,698 74,879 from operations Other income(expense):Floor plan (3,015 ) (9,005 ) (16,717 ) (31,884 )interest expenseOther interest (12,896 ) (17,568 ) (42,101 ) (53,422 )expense, netTax ReceivableAgreement - - - 8,477 liabilityadjustmentTotal other (15,911 ) (26,573 ) (58,818 ) (76,829 )expense Income before 177,182 (58,880 ) 350,880 (1,950 )income taxesIncome tax (22,398 ) (6,383 ) (47,003 ) (37,497 )expenseNet income 154,784 (65,263 ) 303,877 (39,447 )(loss)Less: net(income) loss (96,734 ) 34,571 (195,910 ) 7,377 attributable tonon-controllinginterestsNet income(loss) $ 58,050 $ (30,692 ) $ 107,967 $ (32,070 )attributable toCamping WorldHoldings, Inc. Earnings (loss)per share ofClass A commonstock:Basic $ 1.46 $ (0.82 ) $ 2.81 $ (0.86 )

Diluted $ 1.44 $ (0.82 ) $ 2.77 $ (0.86 )

Weighted averageshares of ClassA common stockoutstanding:Basic 39,880 37,361 38,356 37,266

Diluted 40,872 37,361 89,882 37,266

Camping WorldHoldings, Inc. Three Months Ended September Increase PercentSupplemental Data 30,

2020 2019 (decrease) Change

Unit salesNew vehicles 23,177 18,592 4,585 24.7 %

Used vehicles 10,530 10,061 469 4.7 %

Total 33,707 28,653 5,054 17.6 %

Average sellingpriceNew vehicles $ 39,159 $ 36,613 $ 2,546 7.0 %

Used vehicles $ 28,362 $ 24,565 $ 3,797 15.5 %

Same store unitsalesNew vehicles 21,038 16,995 4,043 23.8 %

Used vehicles 9,577 9,510 67 0.7 %

Total 30,615 26,505 4,110 15.5 %

Same store revenue($ in 000's)New vehicles $ 830,242 $ 628,419 $ 201,822 32.1 %

Used vehicles 276,302 237,896 38,406 16.1 %

Products, service 183,439 144,301 39,139 27.1 %and otherFinance and 127,924 106,728 21,196 19.9 %insurance, netTotal $ 1,417,908 $ 1,117,344 $ 300,563 26.9 %

Average gross profitper unitNew vehicles $ 7,655 $ 4,410 $ 3,244 73.6 %

Used vehicle $ 7,181 $ 5,189 $ 1,992 38.4 %

Finance and $ 4,117 $ 3,995 $ 122 3.1 %insurance, net pervehicle unitTotal vehicle $ 11,624 $ 8,679 $ 2,945 33.9 %front-end yield^(1) Gross marginGood Sam Services 59.5 % 54.1 % 545 bpsand PlansNew vehicles 19.5 % 12.0 % 750 bps

Used vehicles 25.3 % 21.1 % 420 bps

Products, service 37.9 % 19.8 % 1,813 bpsand otherFinance and 100.0 % 100.0 % unch. bpsinsurance, netGood Sam Club 80.9 % 74.2 % 673 bps

Subtotal RV and 31.0 % 23.5 % 752 bpsOutdoor RetailTotal gross margin 31.8 % 24.4 % 737 bps

Inventories ($ in000's)New vehicles $ 557,070 $ 874,168 $ (317,098 ) (36.3 %)

Used vehicles 124,167 163,348 (39,181 ) (24.0 %)

Products, parts, 246,485 342,698 (96,213 ) (28.1 %)accessories andmisc.Total RV and Outdoor $ 927,722 $ 1,380,214 $ (452,492 ) (32.8 %)Retail inventories Vehicle inventoryper location ($ in000's)New vehicle $ 3,665 $ 5,714 $ (2,049 ) (35.9 %)inventory per dealerlocationUsed vehicle $ 817 $ 1,068 $ (251 ) (23.5 %)inventory per dealerlocation Vehicle inventoryturnover^(2)New vehicle 2.7 2.1 0.6 27.1 %inventory turnoverUsed vehicle 5.2 4.9 0.3 6.9 %inventory turnover Retail locationsRV dealerships 152 153 (1 ) (0.7 %)

RV service & retail 10 13 (3 ) (23.1 %)centersSubtotal 162 166 (4 ) (2.4 %)

Other retail stores 1 43 (42 ) (97.7 %)

Total 163 209 (46 ) (22.0 %)

Other dataActive Customers^(3) 5,273,707 5,244,844 28,863 0.6 %

Good Sam Club 2,074,264 2,172,162 (97,898 ) (4.5 %)membersFinance andinsurance, net gross 11.5 % 12.3 % (83 ) n/a profit as a % of bpstotal vehiclerevenueSame store locations 142 n/a n/a n/a

(1) Front end yield is calculated as gross profit from new vehicles, used vehicles and finance and insurance (net), divided by combined new and used retail units sold.

(2) Inventory turnover calculated as vehicle costs applicable to revenue divided by average of beginning and ending vehicle inventory.

(3) An Active Customer is a customer who has transacted with us in any of the eight most recently completed fiscal quarters prior to the date of measurement.

^(1) Front end yield is calculated as gross profit from new vehicles, usedvehicles and finance and insurance (net), divided by combined new and usedretail units sold.

^(2) Inventory turnover calculated as vehicle costs applicable to revenuedivided by average of beginning and ending vehicle inventory.

^(3) An Active Customer is a customer who has transacted with us in any of theeight most recently completed fiscal quarters prior to the date of measurement.

Camping WorldHoldings, Inc. Nine Months Ended September Increase PercentSupplemental Data 30,

2020 2019 (decrease) Change

Unit salesNew vehicles 64,553 56,514 8,039 14.2 %

Used vehicles 30,830 29,047 1,783 6.1 %

Total 95,383 85,561 9,822 11.5 %

Average sellingpriceNew vehicles $ 35,677 $ 35,198 $ 480 1.4 %

Used vehicles $ 25,307 $ 23,166 $ 2,141 9.2 %

Same store unitsalesNew vehicles 58,421 52,676 5,745 10.9 %

Used vehicles 28,098 27,813 285 1.0 %

Total 86,519 80,489 6,030 7.5 %

Same store revenue($ in 000's)New vehicles $ 2,099,448 $ 1,874,312 $ 225,136 12.0 %

Used vehicles 724,166 652,874 71,291 10.9 %

Products, service 447,239 405,062 42,177 10.4 %and otherFinance and 348,147 317,874 30,273 9.5 %insurance, netTotal $ 3,618,999 $ 3,250,121 $ 368,878 11.3 %

Average gross profitper unitNew vehicles $ 6,102 $ 4,353 $ 1,749 40.2 %

Used vehicle $ 5,987 $ 4,904 $ 1,083 22.1 %

Finance and $ 3,969 $ 3,910 $ 58 1.5 %insurance, net pervehicle unitTotal vehicle $ 10,033 $ 8,450 $ 1,583 18.7 %front-end yield^(1) Gross marginGood Sam Services 59.5 % 56.0 % 352 bpsand PlansNew vehicles 17.1 % 12.4 % 474 bps

Used vehicles 23.7 % 21.2 % 249 bps

Products, service 38.1 % 29.2 % 885 bpsand otherFinance and 100.0 % 100.0 % unch. bpsinsurance, netGood Sam Club 80.2 % 72.9 % 732 bps

Subtotal RV and 29.8 % 25.6 % 414 bpsOutdoor RetailTotal gross margin 30.7 % 26.7 % 405 bps

Inventories ($ in000's)New vehicles $ 557,070 $ 874,168 $ (317,098 ) (36.3 %)

Used vehicles 124,167 163,348 (39,181 ) (24.0 %)

Products, parts, 246,485 342,698 (96,213 ) (28.1 %)accessories andmisc.Total RV and Outdoor $ 927,722 $ 1,380,214 $ (452,492 ) (32.8 %)Retail inventories Vehicle inventoryper location ($ in000's)New vehicle $ 3,665 $ 5,714 $ (2,049 ) (35.9 %)inventory per dealerlocationUsed vehicle $ 817 $ 1,068 $ (251 ) (23.5 %)inventory per dealerlocation Vehicle inventoryturnover^(2)New vehicle 2.7 2.1 0.6 27.1 %inventory turnoverUsed vehicle 5.2 4.9 0.3 6.9 %inventory turnover Retail locationsRV dealerships 152 153 (1 ) (0.7 %)

RV service & retail 10 13 (3 ) (23.1 %)centersSubtotal 162 166 (4 ) (2.4 %)

Other retail stores 1 43 (42 ) (97.7 %)

Total 163 209 (46 ) (22.0 %)

Other dataActive Customers^(3) 5,273,707 5,244,844 28,863 0.6 %

Good Sam Club 2,074,264 2,172,162 (97,898 ) (4.5 %)membersFinance andinsurance, net gross 12.3 % 12.6 % (29 ) n/a profit as a % of bpstotal vehiclerevenueSame store locations 142 n/a n/a n/a

(1) Front end yield is calculated as gross profit from new vehicles, used vehicles and finance and insurance (net), divided by combined new and used retail units sold.

(2) Inventory turnover calculated as vehicle costs applicable to revenue divided by average of beginning and ending vehicle inventory.

(3) An Active Customer is a customer who has transacted with us in any of the eight most recently completed fiscal quarters prior to the date of measurement.

^(1) Front end yield is calculated as gross profit from new vehicles, usedvehicles and finance and insurance (net), divided by combined new and usedretail units sold.

^(2) Inventory turnover calculated as vehicle costs applicable to revenuedivided by average of beginning and ending vehicle inventory.

^(3) An Active Customer is a customer who has transacted with us in any of theeight most recently completed fiscal quarters prior to the date of measurement.

Camping World Holdings, Inc. and SubsidiariesConsolidated Balance Sheets (unaudited)($ in Thousands Except Per Share Amounts) September 30, December 31,

2020 2019

AssetsCurrent assets:Cash and cash equivalents $ 482,640 $ 147,521

Contracts in transit 85,004 44,947

Accounts receivable, net 82,135 81,847

Inventories 927,722 1,358,539

Prepaid expenses and other assets 42,893 57,827

Total current assets 1,620,394 1,690,681

Property and equipment, net 313,496 314,374

Operating lease assets 781,615 807,537

Deferred tax asset, net 159,853 129,710

Intangibles assets, net 27,741 29,707

Goodwill 387,066 386,941

Other assets 16,675 17,290

Total assets $ 3,306,840 $ 3,376,240

Liabilities and stockholders' equity (deficit)Current liabilities:Accounts payable $ 203,311 $ 106,959

Accrued liabilities 159,289 130,316

Deferred revenues 94,129 87,093

Current portion of operating lease liabilities 60,933 58,613

Current portion of Tax Receivable Agreement 8,187 6,563 liabilityCurrent portion of long-term debt 14,355 14,085

Notes payable - floor plan, net 430,514 848,027

Other current liabilities 61,614 44,298

Total current liabilities 1,032,332 1,295,954

Operating lease obligations, net of current 818,452 843,312 portionTax Receivable Agreement liability, net of 131,802 108,228 current portionRevolving line of credit 20,885 40,885

Long-term debt, net of current portion 1,150,513 1,153,551

Deferred revenues 62,449 58,079

Other long-term liabilities 58,189 35,467

Total liabilities 3,274,622 3,535,476

Commitments and contingenciesStockholders' equity (deficit):Preferred stock, par value $0.01 per share -20,000,000 shares authorized; none issued and - - outstanding as of September 30, 2020 andDecember 31, 2019Class A common stock, par value $0.01 per share- 250,000,000 shares authorized; 43,001,308 427 375 issued and 42,724,586 outstanding as ofSeptember 30, 2020 and 37,701,584 issued and37,488,989 outstanding as of December 31, 2019Class B common stock, par value $0.0001 pershare - 75,000,000 shares authorized; 69,066,445 5 5 issued as of September 30, 2020 and December 31,2019; and 45,999,132 and 50,706,629 outstandingas of September 30, 2020 and December 31, 2019Class C common stock, par value $0.0001 pershare - one share authorized, issued and - - outstanding as of September 30, 2020 andDecember 31, 2019Additional paid-in capital 55,733 50,152

Retained earnings (deficit) 6,033 (83,134 )

Total stockholders' equity (deficit) 62,198 (32,602 )attributable to Camping World Holdings, Inc.Non-controlling interests (29,980 ) (126,634 )

Total stockholders' equity (deficit) 32,218 (159,236 )

Total liabilities and stockholders' equity $ 3,306,840 $ 3,376,240 (deficit) Earnings Per Share

Basic earnings per share of Class A common stock is computed by dividing net income (loss) available to Camping World Holdings, Inc. by the weighted-average number of shares of Class A common stock outstanding during the period. Diluted earnings per share of Class A common stock is computed by dividing net income (loss) available to Camping World Holdings, Inc. by the weighted-average number of shares of Class A common stock outstanding adjusted to give effect to potentially dilutive securities.

The following table sets forth reconciliations of the numerators and denominators used to compute basic and diluted earnings per share of Class A common stock (unaudited):

Three Months Ended Nine Months Ended September 30, September 30,

(In thousands except 2020 2019 2020 2019per share amounts)Numerator:Net income (loss) $ 154,784 $ (65,263 ) $ 303,877 $ (39,447 )

Less: net (income) lossattributable to (96,734 ) 34,571 (195,910 ) 7,377 non-controllinginterestsNet income (loss)attributable to Camping $ 58,050 $ (30,692 ) $ 107,967 $ (32,070 )World Holdings, Inc. -basic and dilutedAdd: reallocation ofnet income attributableto non-controlling 794 - - - interests from theassumed dilitive effectof stock options andRSUsAdd: reallocation ofnet income attributableto non-controllinginterests from the - - 140,811 - assumed exchange ofcommon units of CWGS,LLC for Class A commonstockNet income (loss)attributable to Camping $ 58,844 $ (30,692 ) $ 248,778 $ (32,070 )World Holdings, Inc. -dilutedDenominator:Weighted-average sharesof Class A common stock 39,880 37,361 38,356 37,266 outstanding - basic anddilutedDilutive options to 191 - 64 - purchase Class A commonstockDilutive restricted 801 - 508 - stock unitsDilutive common unitsof CWGS, LLC that are - - 50,954 - convertible into ClassA common stockWeighted-average shares 40,872 37,361 89,882 37,266 of Class A common stockoutstanding - diluted Earnings (loss) per $ 1.46 $ (0.82 ) $ 2.81 $ (0.86 )share of Class A commonstock - basicEarnings (loss) per $ 1.44 $ (0.82 ) $ 2.77 $ (0.86 )share of Class A commonstock - diluted Weighted-averageanti-dilutivesecurities excludedfrom the computation ofdiluted earnings pershare of Class A commonstock:Stock options to - 767 483 809 purchase Class A commonstockRestricted stock units 1,761 1,266 1,028 1,373

Common units of CWGS,LLC that are 49,609 51,669 - 51,671 convertible into ClassA common stock Non-GAAP Financial Measures

To supplement our consolidated financial statements, which are prepared and presented in accordance with accounting principles generally accepted in the United States ("GAAP"), we use the following non-GAAP financial measures: EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income Attributable to Camping World Holdings, Inc. - Basic, Adjusted Net Income Attributable to Camping World Holdings, Inc. - Diluted, Adjusted Earnings Per Share - Basic, and Adjusted Earnings Per Share - Diluted (collectively the "Non-GAAP Financial Measures"). We believe that these Non-GAAP Financial Measures, when used in conjunction with GAAP financial measures, provide useful information about operating results, enhance the overall understanding of past financial performance and future prospects, and allow for greater transparency with respect to the key metrics we use in our financial and operational decision making. These Non-GAAP Financial Measures are also frequently used by analysts, investors and other interested parties to evaluate companies in the Company's industry. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP, and they should not be construed as an inference that the Company's future results will be unaffected by any items adjusted for in these Non-GAAP Financial Measures. In evaluating these Non-GAAP Financial Measures, you should be aware that in the future the Company may incur expenses that are the same as or similar to some of those adjusted in this presentation. The Non-GAAP Financial Measures that we use are not necessarily comparable to similarly titled measures used by other companies due to different methods of calculation. A reconciliation for the Company's Adjusted EBITDA outlook to the corresponding GAAP measure on a forward-looking basis cannot be provided without unreasonable efforts.

EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin

We define "EBITDA" as net income before other interest expense, net (excluding floor plan interest expense), provision for income tax expense and depreciation and amortization. We define "Adjusted EBITDA" as EBITDA further adjusted for the impact of certain non-cash and other items that we do not consider in our evaluation of ongoing operating performance. These items include, among other things, long-lived asset impairment, lease termination costs, (gain) loss on disposal of assets, equity-based compensation, Tax Receivable Agreement liability adjustment, restructuring costs related to the 2019 Strategic Shift, and other unusual or one-time items. We define "Adjusted EBITDA Margin" as Adjusted EBITDA as a percentage of total revenue. We caution investors that amounts presented in accordance with our definitions of EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin may not be comparable to similar measures disclosed by our competitors, because not all companies and analysts calculate EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin in the same manner. We present EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin because we consider them to be important supplemental measures of our performance and believe they are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in our industry. Management believes that investors' understanding of our performance is enhanced by including these Non-GAAP Financial Measures as a reasonable basis for comparing our ongoing results of operations.

The following table reconciles EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin to the most directly comparable GAAP financial performance measures, which are net income (loss) and net income (loss) as a percentage of revenue, respectively (unaudited):

Three Months Ended Nine Months Ended

September 30, September 30,

($ in thousands) 2020 2019 2020 2019

EBITDA:Net income (loss) $ 154,784 $ (65,263 ) $ 303,877 $ (39,447 )

Other interest 12,896 17,568 42,101 53,422 expense, netDepreciation and 12,304 14,104 38,949 41,644 amortizationIncome tax expense 22,398 6,383 47,003 37,497

Subtotal EBITDA 202,382 (27,208 ) 431,930 93,116

Long-lived asset 4,378 50,025 10,947 50,025 impairment (a)Lease termination (b) 505 - 1,957 -

(Gain) loss on (121 ) 7,087 662 9,247 disposal of assets,net (c)Equity-based 6,201 2,934 13,695 9,513 compensation (d)Tax Receivable - - - (8,477 )Agreement liabilityadjustment (e)Restructuring costs 3,689 27,724 14,562 27,724 (f)Adjusted EBITDA $ 217,034 $ 60,562 $ 473,753 $ 181,148

Three Months Ended Nine Months Ended

September 30, September 30,

(as percentage of 2020 2019 2020 2019total revenue) EBITDA margin:Net income (loss) 9.2 % (4.7 %) 7.0 % (1.0 %)marginOther interest 0.8 % 1.3 % 1.0 % 1.4 %expense, netDepreciation and 0.7 % 1.0 % 0.9 % 1.1 %amortizationIncome tax expense 1.3 % 0.5 % 1.1 % 1.0 %

Subtotal EBITDA 12.1 % (2.0 %) 10.0 % 2.4 %marginLong-lived asset 0.3 % 3.6 % 0.3 % 1.3 %impairment (a)Lease termination (b) 0.0 % - 0.0 % -

(Gain) loss on (0.0 %) 0.5 % 0.0 % 0.2 %disposal of assets,net (c)Equity-based 0.4 % 0.2 % 0.3 % 0.2 %compensation (d)Tax Receivable - - - (0.2 %)Agreement liabilityadjustment (e)Restructuring costs 0.2 % 2.0 % 0.3 % 0.7 %(f)Adjusted EBITDA 12.9 % 4.4 % 11.0 % 4.6 %margin Represents long-lived asset impairment charges related to the RV and(a) Outdoor Retail segment, which primarily relate to locations affected by the 2019 Strategic Shift.

(b) Represents the loss on the termination of operating leases relating primarily to the 2019 Strategic Shift, net of lease termination fees.

(c) Represents an adjustment to eliminate the gains and losses on disposal and sales of various assets.

(d) Represents non-cash equity-based compensation expense relating to employees and directors, and consultants of the Company.

Represents an adjustment to eliminate the loss on remeasurement of the Tax(e) Receivable Agreement primarily due to changes in our effective income tax rate and the transfer of certain assets from GSS Enterprises LLC ("GSS") to Camping World, Inc ("CW").

Represents restructuring costs relating to our 2019 Strategic Shift. These restructuring costs include one-time employee termination benefits(f) relating to retail store or distribution center closures/divestitures, incremental inventory reserve charges, and other associated costs. These costs do not include lease termination costs, which are presented separately above.

Adjusted Net Income Attributable to Camping World Holdings, Inc. and Adjusted Earnings Per Share

We define "Adjusted Net Income Attributable to Camping World Holdings, Inc. - Basic" as net income attributable to Camping World Holdings, Inc. adjusted for the impact of certain non-cash and other items that we do not consider in our evaluation of ongoing operating performance. These items include, among other things, long-lived asset impairment, lease termination costs, (gain) loss on disposal of assets, equity-based compensation, Tax Receivable Agreement liability adjustment, restructuring costs related to the 2019 Strategic Shift, other unusual or one-time items, the income tax expense effect of these adjustments, and the effect of net income attributable to non-controlling interests from these adjustments.

We define "Adjusted Net Income Attributable to Camping World Holdings, Inc. - Diluted" as Adjusted Net Income Attributable to Camping World Holdings, Inc. - Basic adjusted for the reallocation of net income attributable to non-controlling interests from stock options and restricted stock units, if dilutive, or the assumed exchange, if dilutive, of all outstanding common units in CWGS, LLC for shares of newly-issued Class A common stock of Camping World Holdings, Inc.

We define "Adjusted Earnings Per Share - Basic" as Adjusted Net Income Attributable to Camping World Holdings, Inc. - Basic divided by the weighted-average shares of Class A common stock outstanding. We define "Adjusted Earnings Per Share - Diluted" as Adjusted Net Income Attributable to Camping World Holdings, Inc. - Diluted divided by the weighted-average shares of Class A common stock outstanding, assuming (i) the exchange of all outstanding common units in CWGS, LLC for newly-issued shares of Class A common stock of Camping World Holdings, Inc., if dilutive, and (ii) the dilutive effect of stock options and restricted stock units, if any. We present Adjusted Net Income Attributable to Camping World Holdings, Inc. - Basic, Adjusted Net Income Attributable to Camping World Holdings, Inc. - Diluted, Adjusted Earnings Per Share - Basic, and Adjusted Earnings Per Share - Diluted because we consider them to be important supplemental measures of our performance and we believe that investors' understanding of our performance is enhanced by including these Non GAAP financial measures as a reasonable basis for comparing our ongoing results of operations.

The following table reconciles Adjusted Net Income Attributable to Camping World Holdings, Inc. - Basic, Adjusted Net Income Attributable to Camping World Holdings, Inc. - Diluted, Adjusted Earnings Per Share - Basic, and Adjusted Earnings Per Share - Diluted to the most directly comparable GAAP financial performance measure, which is net income attributable to Camping World Holdings, Inc., in the case of the Adjusted Net Income non-GAAP financial measures, and weighted-average shares of Class A common stock outstanding - basic, in the case of the Adjusted Earnings Per Share non-GAAP financial measures:

Three Months Ended Nine Months Ended

September 30, September 30,

(In thousands except per 2020 2019 2020 2019share amounts)Numerator:Net income (loss) $ 58,050 $ (30,692 ) $ 107,967 $ (32,070 )attributable to CampingWorld Holdings, Inc.Adjustments related tobasic calculation:Long-lived assetimpairment (a):Gross adjustment 4,378 50,025 10,947 50,025

Income tax expense for - (82 ) (13 ) (82 )above adjustment (b)Lease termination (c):Gross adjustment 505 - 1,957 -

Income tax expense for - - (23 ) - above adjustment (b)Loss on disposal ofassets and otherexpense, net (d):Gross adjustment (121 ) 7,087 662 9,247

Income tax (expense) 1 (467 ) (2 ) (461 )benefit for aboveadjustment (b)Equity-basedcompensation (e):Gross adjustment 6,201 2,934 13,695 9,513

Income tax expense for (611 ) (246 ) (1,296 ) (815 )above adjustment (b)Tax Receivable Agreementliability adjustment(f):Gross adjustment - - - (8,477 )

Income tax benefit for - - - 2,143 above adjustment (b)Restructuring costs (g):Gross adjustment 3,689 27,724 14,562 27,724

Income tax expense for (12 ) - (70 ) - above adjustment (b)Adjustment to net(income) lossattributable to (8,118 ) (50,937 ) (23,845 ) (56,014 )non-controllinginterests resulting fromthe above adjustments(h)Adjusted net incomeattributable to Camping 63,962 5,346 124,541 733 World Holdings, Inc. -basicAdjustments related todiluted calculation:Reallocation of netincome attributable tonon-controlling - 4 1,700 - interests from thedilutive effect of stockoptions and restrictedstock units (i)Income tax onreallocation of netincome attributable tonon-controlling - (2 ) (420 ) - interests from thedilutive effect of stockoptions and restrictedstock units (j)Reallocation of netincome attributable tonon-controlling 104,852 - - - interests from thedilutive exchange ofcommon units in CWGS,LLC (i)Income tax onreallocation of netincome attributable tonon-controlling (25,069 ) - - - interests from thedilutive exchange ofcommon units in CWGS,LLC (j)Assumed income taxexpense of combiningC-corporations with fullvaluation allowances (769 ) - - - with the income of otherconsolidated entitiesafter the dilutiveexchange of common unitsin CWGS, LLC (k)Adjusted net incomeattributable to Camping $ 142,976 $ 5,348 $ 125,821 $ 733 World Holdings, Inc. -basic and dilutedDenominator:Weighted-average Class A 39,880 37,361 38,356 37,266 common sharesoutstanding - basicAdjustments related todiluted calculation:Dilutive exchange ofcommon units in CWGS, 49,609 - - - LLC for shares of ClassA common stock (l)Dilutive options 191 - 64 - restricted stock units(l)Dilutive restricted 801 21 508 - stock units (l)Adjusted weightedaverage Class A common 90,481 37,382 38,928 37,266 shares outstanding -diluted Adjusted earnings per $ 1.60 $ 0.14 $ 3.25 $ 0.02 share - basicAdjusted earnings per $ 1.58 $ 0.14 $ 3.23 $ 0.02 share - diluted Anti-dilutive amounts(m):Numerator:Reallocation of netincome attributable tonon-controlling - $ 16,362 $ 218,054 $ 48,637 interests from theanti-dilutive exchangeof common units in CWGS,LLC (i)Income tax onreallocation of netincome attributable tonon-controlling - $ (8,958 ) $ (56,513 ) $ (26,049 )interests from theanti-dilutive exchangeof common units in CWGS,LLC (j)Assumed income taxbenefit of combiningC-corporations with fullvaluation allowances - $ 28,228 $ 5,666 $ 44,252 with the income of otherconsolidated entitiesafter the anti-dilutiveexchange of common unitsin CWGS, LLC (k)Denominator:Anti-dilutive exchangeof common units in CWGS, - 51,669 50,954 51,671 LLC for shares of ClassA common stock (l)Anti-dilutive restricted - - - 15 stock units (l) Represents long-lived asset impairment charges related to the RV and(a) Outdoor Retail segment, which primarily relate to locations affected by the 2019 Strategic Shift.

Represents the current and deferred income tax expense or benefit effect of the above adjustments, many of which are related to entities with full valuation allowances for which no tax benefit can be currently recognized.(b) This assumption uses an effective tax rate of 25.0% and 25.3% for the adjustments for 2020 and 2019, respectively, which represents the estimated tax rate that would apply had the above adjustments been included in the determination of our non-GAAP metric.

(c) Represents the termination of operating leases relating primarily to the 2019 Strategic Shift, net of lease termination costs.

Represents an adjustment to eliminate the gains and losses on sales of(d) various assets, and losses on the disposal or sale of real estate at closed RV and Outdoor Retail locations.

(e) Represents non-cash equity-based compensation expense relating to employees, directors, and consultants of the Company.

Represents an adjustment to eliminate the loss on remeasurement of the Tax(f) Receivable Agreement primarily due to changes in our effective income tax rate and the transfer of certain assets from GSS to CW.

Represents restructuring costs relating to our 2019 Strategic Shift. These restructuring costs include one-time employee termination benefits(g) relating to retail store or distribution center closures/divestitures, incremental inventory reserve charges, and other associated costs. These costs do not include lease termination costs, which are presented separately above.

Represents the adjustment to net income attributable to non-controlling interests resulting from the above adjustments that impact the net income(h) of CWGS, LLC. This adjustment uses the non-controlling interest's weighted average ownership of CWGS, LLC of 55.4% and 58.0% for the three months ended September 30, 2020 and 2019, respectively, and 57.1% and 58.1% for the nine months ended September 30, 2020, respectively.

Represents the reallocation of net income attributable to non-controlling(i) interests from the impact of the assumed change in ownership of CWGS, LLC from stock options, restricted stock units, and/or common units of CWGS, LLC.

Represents the income tax expense effect of the above adjustment for(j) reallocation of net income attributable to non-controlling interests. This assumption uses an effective tax rate of 25.0% and 25.3% for the adjustments for the 2020 and 2019 periods, respectively.

Represents adjustments to reflect the income tax benefit of losses of consolidated C-corporations that under the Company's current equity structure cannot be used against the income of other consolidated subsidiaries of CWGS, LLC. Subsequent to the exchange of all common units in CWGS, LLC, the Company believes certain actions could be taken such(k) that the C-corporations' losses could offset income of other consolidated subsidiaries. The adjustment reflects the income tax benefit assuming effective tax rate of 25.0% and 25.3% during 2020 and 2019 periods, respectively, for the losses experienced by the consolidated C-corporations for which valuation allowances have been recorded. No assumed release of valuation allowance established for previous periods are included in these amounts.

(l) Represents the impact to the denominator for stock options, restricted stock units, and/or common units of CWGS, LLC.

(m) The below amounts have not been considered in our adjusted earnings per share - diluted amounts as the effect of these items are anti-dilutive.

Uses and Limitations of Non-GAAP Financial Measures

Management and our board of directors use the Non-GAAP Financial Measures:

* as a measurement of operating performance because they assist us in comparing the operating performance of our business on a consistent basis, as they remove the impact of items not directly resulting from our core operations; * for planning purposes, including the preparation of our internal annual operating budget and financial projections; * to evaluate the performance and effectiveness of our operational strategies; and * to evaluate our capacity to fund capital expenditures and expand our business.

By providing these Non-GAAP Financial Measures, together with reconciliations, we believe we are enhancing investors' understanding of our business and our results of operations, as well as assisting investors in evaluating how well we are executing our strategic initiatives. In addition, our Senior Secured Credit Facilities use EBITDA to measure our compliance with covenants such as consolidated leverage ratio. The Non-GAAP Financial Measures have limitations as analytical tools, and should not be considered in isolation, or as an alternative to, or a substitute for net income or other financial statement data presented in our unaudited consolidated financial statements included in this press release as indicators of financial performance. Some of the limitations are:

* such measures do not reflect our cash expenditures, or future requirements for capital expenditures or contractual commitments; * such measures do not reflect changes in, or cash requirements for, our working capital needs; * some of such measures do not reflect the interest expense, or the cash requirements necessary to service interest or principal payments on our debt; * some of such measures do not reflect our tax expense or the cash requirements to pay our taxes; * although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future and such measures do not reflect any cash requirements for such replacements; and * other companies in our industry may calculate such measures differently than we do, limiting their usefulness as comparative measures.

Due to these limitations, the Non-GAAP Financial Measures should not be considered as measures of discretionary cash available to us to invest in the growth of our business. We compensate for these limitations by relying primarily on our GAAP results and using these Non-GAAP Financial Measures only supplementally. As noted in the tables above, certain of the Non-GAAP Financial Measures include adjustments for long-lived asset impairment, lease termination costs, loss on disposal of assets, equity-based compensation, Tax Receivable Agreement liability adjustment, restructuring costs related to the 2019 Strategic Shift, other unusual or one-time items, and the income tax expense effect described above, as applicable. It is reasonable to expect that certain of these items will occur in future periods. However, we believe these adjustments are appropriate because the amounts recognized can vary significantly from period to period, do not directly relate to the ongoing operations of our business and complicate comparisons of our internal operating results and operating results of other companies over time. Each of the normal recurring adjustments and other adjustments described in this paragraph and in the reconciliation tables above help management with a measure of our core operating performance over time by removing items that are not related to day-to-day operations.

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CONTACT: Investors: InvestorRelations@campingworld.com (866) 895-5330

CONTACT: Media Outlets: Karen Porter PR-CWGS@CampingWorld.com