LINCOLNSHIRE, Ill. — Camping World Holdings announced today that its board of directors declared a cash dividend of $0.08 per share on the company’s Class A common stock and equivalent payments to the common unit holders of CWGS Enterprises.
Payment will be made Dec. 20 to stockholders of record at the close of business Dec. 7.
Camping World intends to pay a regular quarterly cash dividend to the holders of its Class A common stock, funded by a regular quarterly cash distribution by CWGS Enterprises to all common unit holders, the release explained.
The dividend initiation is occurring three months earlier and at a higher level than anticipated in the prospectus dated Oct. 6, as filed with the Securities and Exchange Commission.
“We are pleased to initiate our quarterly dividend program, which not only follows through on what we told investors during our IPO, but is also sooner and higher than initially expected,” said Marcus Lemonis, chairman and CEO. “We believe this demonstrates our confidence in our growth prospects, free cash flow generation and long-term financial outlook.
“This dividend program reinforces our commitment to delivering value to our shareholders, while continuing to invest in our business and maintaining our strong balance sheet,” he added.
“We intend to initiate the regular quarterly cash dividend at $0.08 per share, as compared to $0.0605 per share disclosed in our prospectus,” said Thomas Wolfe, chief financial officer. “Going forward, we will evaluate our dividend level based on our net income and free cash flow.”
Future declarations of quarterly dividends are subject to the determination and discretion of Camping World’s Board of Directors based on its consideration of various factors, including:
- The company’s results of operations
- Financial condition
- Level of indebtedness
- Anticipated capital requirements
- Contractual restrictions
- Restrictions in its debt agreements
- Restrictions under applicable law
- Its business prospects
- Other factors that Camping World’s Board of Directors may deem relevant.
In addition to the regular quarterly dividend, Camping World intends to pay a special cash dividend of all or a portion of excess tax distributions to holders of Camping World Class A common stock commencing in 2017.
SOURCE: Camping World press release