CWH
Camping World Holdings, INC
NYSE
8-K: Camping World Holdings Announces $288.8 Million Public Offering of Class A Common Stock
Sentiment:
Capital Raise Announcement
1 November 2024 4:15 PM
Camping World Holdings, Inc. has successfully completed a public offering of 14,634,146 shares of Class A common stock, raising approximately $288.8 million in net proceeds.
Capital raise
The company is issuing 14,634,146 shares of Class A common stock at $20.50 per share.
Underwriters have an option to purchase an additional 2,195,121 shares.
The company expects to receive approximately $288.8 million in net proceeds from the offering.
Summary
- Camping World Holdings, Inc. entered into an underwriting agreement on October 30, 2024, for a public offering of its Class A common stock.
- The company offered 14,634,146 shares at a price of $20.50 per share.
- The underwriters were granted an option to purchase an additional 2,195,121 shares within 30 days.
- The offering closed on November 1, 2024.
- The company estimates net proceeds of approximately $288.8 million after deducting underwriting discounts, commissions, and offering expenses.
- The proceeds will be used to purchase common units from CWGS, LLC.
- CWGS, LLC intends to use the proceeds for general corporate purposes, including strengthening the balance sheet, working capital, and debt reduction.
Sentiment
Score: 7
Explanation: The sentiment is moderately positive as the company successfully raised a significant amount of capital, which is expected to improve its financial position. However, there are inherent risks associated with any capital raise, and the market's reaction to the offering is yet to be seen.
Positives
- The company successfully raised a significant amount of capital through the public offering.
- The funds will be used to strengthen the balance sheet and support growth initiatives.
- The offering provides CWGS, LLC with additional financial flexibility.
- The closing of the offering was completed quickly, within a few days of the agreement.
Risks
- The company is relying on the underwriters to sell the shares.
- There is a risk that the underwriters may not exercise their option to purchase additional shares.
- The company's plans for the use of proceeds are subject to change.
- The market price of the company's stock could be affected by the offering.
Future Outlook
The company intends to use the net proceeds from the offering to purchase common units from CWGS, LLC, which will then use the funds for general corporate purposes, including strengthening the balance sheet, working capital for growth, and debt pay down.
Management Comments
- CWGS, LLC intends to use the net proceeds from the sale of common units to the Company for general corporate purposes, including strengthening the balance sheet, working capital for growth and debt pay down.
Industry Context
This capital raise is likely aimed at strengthening Camping World's financial position and enabling further growth in the recreational vehicle market, which has seen increased demand in recent years. This move could also be in response to competitive pressures or to fund strategic acquisitions.
Comparison to Industry Standards
- The offering size of 14,634,146 shares is a significant capital raise for a company of Camping World's size, indicating a substantial need for funds.
- The use of proceeds for debt reduction and working capital is a common strategy for companies looking to improve their financial health and support growth.
- Comparable companies in the RV and outdoor recreation industry, such as Thor Industries and Winnebago, have also undertaken capital raises or debt restructuring to manage their balance sheets and fund expansion.
- The offering price of $20.50 per share will be compared to the current trading price of the stock to assess the market's reaction to the offering.
Stakeholder Impact
- Shareholders will experience dilution due to the issuance of new shares.
- The company's financial position is expected to improve, which could benefit shareholders in the long term.
- Employees may benefit from the company's improved financial stability and growth prospects.
- Creditors may benefit from the company's debt reduction efforts.
- Customers and suppliers may see a more stable and reliable business partner.
Next Steps
- The company will use the proceeds to purchase common units from CWGS, LLC.
- CWGS, LLC will use the funds for general corporate purposes, including debt reduction.
- The underwriters may exercise their option to purchase additional shares within 30 days.
Related Party Transactions
- The company will use the proceeds of the offering to purchase common units directly from CWGS, LLC.
Key Dates
- 2024-10-30: Date of the underwriting agreement and filing of the registration statement.
- 2024-11-01: Closing date of the public offering.
Keywords
public offering, Class A common stock, underwriting agreement, capital raise, CWGS Enterprises, net proceeds, share issuance, debt paydown, balance sheet, working capital
CWH
Camping World Holdings, INC
NYSE
Sector: TBD
Filings with Classifications
Better than expected
9 June 2025 8:00 PM
Beneficial Ownership Report
- The disclosure of a new 5.3% passive stake by a major institutional investor like Millennium Management is generally viewed as a positive signal for the company, indicating confidence from a sophisticated market participant.
Worse than expected
1 May 2025 5:04 PM
Quarterly Report
- The company reported a net loss, which is worse than breakeven or a profit.
- Active customer count decreased by 14.2% year-over-year.
- Good Sam Club membership decreased by 13.2% year-over-year.
Better than expected
29 April 2025 4:10 PM
Earnings Release
- The company's Adjusted EBITDA increased nearly 4x year-over-year.
- The company's net loss improved by 51.4% year-over-year.
Worse than expected
4 April 2025 4:05 PM
Definitive Proxy Statement
- The company experienced a net loss of $(78.9) million in 2024, compared to net income in previous years.
- Adjusted EBITDA decreased by 37.5% from 2023 to 2024.
- The company had a shortfall from the budgeted Adjusted EBITDA goal of $371.4 million with final consolidated Adjusted EBITDA performance of $178.8 million.
Worse than expected
28 February 2025 9:06 PM
Annual Results
- Revenue decreased from $6.23 billion to $6.10 billion.
- Net income decreased from $52.9 million to a net loss of $(78.9) million.
- Adjusted EBITDA decreased from $286.2 million to $178.8 million.
Better than expected
25 February 2025 4:10 PM
Earnings Release
- The company's Q4 results show improvements in revenue, gross profit, and adjusted EBITDA compared to the previous year, indicating a positive trend.
Delay expected
13 February 2025 2:00 AM
Beneficial Ownership Amendment
- The dissolution of CWGS Holding, LLC and ML Acquisition Company, LLC, which was previously expected to occur by December 31, 2024, has been delayed indefinitely, as the Reporting Persons do not know when it may occur in the future.
Worse than expected
13 February 2025 2:00 AM
Beneficial Ownership Amendment
- The document states that the previously disclosed belief that CWGS Holding, LLC and ML Acquisition Company, LLC would be dissolved by December 31, 2024, did not materialize. This non-occurrence of an expected event, particularly one that could simplify corporate structure, is a negative deviation from prior expectations.
Better than expected
14 January 2025 4:31 PM
Investor Presentation
- Camping World's new unit sales growth of 22% significantly outperformed the industry's decline of 13%.
Capital raise
1 November 2024 4:15 PM
Capital Raise Announcement
- The company is issuing 14,634,146 shares of Class A common stock at $20.50 per share.
- Underwriters have an option to purchase an additional 2,195,121 shares.
- The company expects to receive approximately $288.8 million in net proceeds from the offering.
Worse than expected
29 October 2024 4:05 PM
Quarterly Report
- The company's net income attributable to Camping World Holdings, Inc. decreased significantly year-over-year.
- The company's gross profit decreased by 4.7% year-over-year.
- The company's same store revenue decreased by 2.7%.
Worse than expected
28 October 2024 4:10 PM
Quarterly Report
- Net income decreased by 73.9% year-over-year, indicating a significant decline in profitability.
- Adjusted EBITDA decreased by 28.9% year-over-year, reflecting a substantial drop in operational performance.
- Diluted earnings per share decreased by 71.9% year-over-year, showing a sharp decline in earnings per share.
- Used vehicle revenue decreased by 24.2% year-over-year, indicating a significant drop in sales in this segment.
Worse than expected
13 September 2024 7:09 PM
SEC Form 4 Filing
- The CEO selling a significant amount of shares is worse than expected.
Capital raise
30 August 2024 4:06 PM
Credit Agreement Amendment
- The company has increased its borrowing capacity by $50 million.
- There is an option to request an additional $100 million in borrowing capacity.
Worse than expected
1 August 2024 4:05 PM
Quarterly Report
- The company's net income attributable to Camping World Holdings decreased significantly by 66.0% year-over-year.
- The company's same-store revenue decreased by 10.8%, indicating a decline in sales performance at established locations.
- The company's used vehicle revenue decreased by 22.8%, reflecting a significant downturn in that segment.
Worse than expected
31 July 2024 4:10 PM
Quarterly Report
- Net income decreased by 63.8% year-over-year.
- Adjusted EBITDA decreased by 24.2% year-over-year.
- Used vehicle revenue decreased by 22.8% year-over-year.
- The company experienced a decline in average selling prices for both new and used vehicles.
Worse than expected
3 May 2024 4:12 PM
Quarterly Report
- The company's net loss of $22.3 million is a significant decrease from the net income of $3.2 million in the same period last year.
- The company's total revenue decreased by 8.3% year-over-year, indicating a decline in sales.
- The company's used vehicle sales and gross profit experienced a substantial decline, impacting overall profitability.
- The company's active customer base decreased by 8.8% year-over-year, indicating a loss of market share.
Worse than expected
1 May 2024 4:10 PM
Quarterly Report
- The company reported a net loss of $50.8 million, a significant downturn from the previous year's net income of $4.9 million.
- Adjusted EBITDA decreased substantially by 86.5% to $8.2 million.
- Gross profit and gross margin decreased, impacting overall profitability.
Worse than expected
21 February 2024 4:12 PM
Annual Results
- The company's full-year revenue, net income, and adjusted EBITDA were all significantly lower than the previous year.
- The company experienced a net loss for the fourth quarter.
- The company reduced its annualized cash dividend by $1.00 per share.
Disclaimer: This summary was generated by artificial intelligence and its accuracy is not guaranteed. The information provided here is for general informational purposes only and does not constitute financial advice, recommendation, or endorsement of any kind. It may contain errors or omissions. You should not rely on this information to make financial decisions. Always seek the advice of a qualified financial professional before making any investment or financial decisions. Use of this information is at your own risk.