As people sought to escape lockdowns and stay-at-home orders by visiting the vast outdoor spaces of the country, recreational vehicle lifestyle leader Camping World Holdings (CWH 0.30%) saw sales and profits soar.
In a bid to have its shareholders also enjoy the fruits of its success, Camping World announced Wednesday a special dividend of $1 per share that actually comprises three separate dividends.
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Sharing in the profits
Camping World has a unique dual-structure quarterly dividend consisting of its regular dividend of $0.09 per share that it recently raised, and what it calls a recurring special dividend of $0.14 per share. This quarter, though, it announced it was also issuing an additional special dividend of $0.77 per share.
The payouts are being funded by a $0.29 per share cash distribution from CWGS Enterprises. That's because Camping World owns a stake in CWGS, which is its subsidiary, and is required to make distributions, which in turn funds the RV dealer's dividends. It says the payment represents "a portion of the tax distributions from CWGS Enterprises, LLC that are in excess of the corporate income taxes payable by" Camping World.
Chairman and CEO Marcus Lemonis said in a statement he was glad the business was "in a position to return capital to our shareholders based on our strong results and cash position thus far in 2020."
Camping World reported earnings earlier this month that showed revenue increased 21% to almost $1.7 billion. Net profits more than tripled from the year ago period to $155 million.
The special dividend will be paid on Dec. 29 to shareholders of record as of Dec. 15.
