Camping World Surges 5% On 2021 Outlook, New Goals
By Editor - Tue Sep 15, 9:56 am
Shares of recreational vehicle or RV maker Camping World jumped 4.8% on Monday following the company’s announcement of its 2021 outlook and new long-term goals. The stock is now rising a further 3% in Tuesday's pre-market trading.Ahead of its Investor Presentation conference call scheduled today, Camping World Holdings (CWH) revealed its long-term goals, initiatives and outlook for 2021. Notably, the company expects to grow adjusted EBITDA in the mid-single digits over the next 5 years, with a goal of generating over $500 million in adjusted EBITDA in 2021, compared to a projected EBITDA of $460 million to $490 million in 2020.It is targeting a minimum adjusted EBITDA margin of 7.5%. The company also intends to have a net leverage ratio of less than 2.0x by the end of this year. Camping World aims to boost its average revenue per member by 10% in the next 36 months. Currently, its 2.1 million Good Sam members generate average annual revenue of about $1,850 each.Camping World’s growth initiatives include the launch of a new peer-to-peer RV rental marketplace and a mobile service marketplace in the spring of 2021. It is investing heavily in product development to create “more efficient, more responsible, light weight, innovative and tech-savvy products both with RV’s and the products that complement them.”On September 8, J.P.