Camping World Holdings Inc. (NYSE: CWH) saw its shares make a handy gain on Tuesday after it announced that it would be conducting a secondary offering. Now seems the best time for a secondary to capitalize on this company’s incredible growth, considering the stock has practically doubled over the past 52 weeks.
Excluding Tuesday’s move, Camping World has outperformed the U.S. broad markets, with the stock up over 32% year to date. Over the past year, the stock is up 97%.
The company did not mention any pricing details in the SEC filing, but it intends to offer 6.7 million shares with an overallotment option for an additional 1.005 million shares. At the most recent closing price $42.83, the entire offering is valued up to $330 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.
Camping World’s management believes it is the only provider of a comprehensive portfolio of services, protection plans, products and resources for recreational vehicle (RV) enthusiasts. Approximately 9 million households in the United States own an RV, and of that installed base, the company had approximately 3.5 million Active Customers at the end of June 2017, excluding the impact of the Gander Mountain acquisition.
The firm gave a summary of its financial performance and key metrics for the past year:
- Active Customer database had roughly 3.3 million customers at the end of 2016, representing a 6.4% five-year compound annual growth rate (CAGR).
- Total revenue was $3.5 billion for the 2016 fiscal year, representing a 17.4% five-year CAGR.
- Net income was $203.2 million, representing a 48.0% five-year CAGR.
- Adjusted EBITDA was $291.3 million, representing a 22.5% five-year CAGR.
Camping World will not receive any proceeds from this offering. Instead the selling shareholders will receive all proceeds.
Shares of Camping World were last seen up nearly 2% at $43.60, with a consensus analyst price target of $41.00 and a 52-week range of $20.51 to $45.84.
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