Camping World Holdings, Inc. Reports Second Quarter 2024 Results with Record New Unit Market Share, Selling Over 22,000 New RVs, up 17% Year-Over-Year, Company Sees Meaningful New Same Store Volume Acceleration in June and July

Camping World Holdings, Inc. (NYSE: CWH) (the “Company” or “CWH”), America’s Recreation Dealer, today reported results for the second quarter ended June 30, 2024.

Marcus Lemonis, Chairman and Chief Executive Officer of Camping World Holdings, Inc. stated, “Our record new unit market share was a direct result of listening to the consumer and their mandate for affordability. We saw year-over-year same store new vehicle unit growth accelerate into the mid-teens in June and into the low-twenties in July, positioning our Company for a strong 2025.”

Matt Wagner, President of Camping World Holdings, Inc. commented, “As we prepare for an improved 2025, our unwavering philosophy is to remain disciplined around used aging and stocking levels, regardless of the macro environment. Over the last 30 days, we have begun to thoughtfully ramp up our used stocking levels, with year-over-year increases for the first time in over 10 months and a record volume of consignments. We have proceeded judiciously on mitigating used inventory risk which will keep pressure on used vehicle margins and volume in the second half.”

Mr. Lemonis concluded, “We are unbelievably encouraged by our new vehicle performance over the last several months, but especially the last 60 days. However, we are not naive about the macroeconomic environment around us, and we are taking a more aggressive position around our cost structure and the optimization of underperforming locations.”

Second Quarter-over-Quarter Operating Highlights

  • The total number of our store locations was 215 as of June 30, 2024, a net increase of 12 store locations from June 30, 2023, or 5.9%.
  • Revenue was $1.8 billion for the second quarter, a decrease of $94.2 million, or 5.0%.
  • New vehicle revenue was $847.1 million for the second quarter, an increase of $46.2 million, or 5.8%, and new vehicle unit sales were 22,084 units, an increase of 3,187 units, or 16.9%. Used vehicle revenue was $480.8 million for the second quarter, a decrease of $142.2 million, or 22.8%, and used vehicle unit sales were 15,700 units, a decrease of 2,074 units, or 11.7%. Combined new and used vehicle units sales were 37,784, an increase of 1,113 units, or 3.0%.
  • Average selling price of new vehicles declined 9.5% during the second quarter driven primarily by lower cost of 2024 model year travel trailers and discounting of pre-2024 model year new vehicles.
  • Average selling price of used vehicles declined 12.6% during the second quarter due to discounting of used vehicles in response to declines in new vehicle prices to maintain used vehicles as a lower cost alternative to new vehicles.
  • Same store new vehicle unit sales increased 9.7% for the second quarter and same store used vehicle unit sales decreased 17.0%.
  • Products, services and other revenue was $235.9 million, a decline of $11.8 million, or 4.8%, driven largely by a reduction in sales activity resulting from our Active Sports Restructuring and fewer used vehicles sold led to a decline in retail product attachment to vehicle sales, partially offset by increases in RV service revenue.
  • Gross profit was $547.7 million, a decrease of $23.4 million, or 4.1%, and total gross margin was 30.3%, an increase of 27 basis points. The gross profit decline was mainly due to the 5.0% decrease in revenue discussed above, which was partially offset by the increase in gross margin. The gross margin increase included a 543 basis point improvement in products, service and other gross margin, from higher labor billing rates on warranty service, the sale of our RV furniture business, improvements to the pricing for aftermarket accessories, and prior year incremental inventory reserve charges of $2.6 million relating to the Active Sports Restructuring that were not recurring in 2024. This gross margin increase was partially offset by a 392 basis point decrease in used vehicles gross margin, which was driven by the decrease in average selling price of used vehicles that was partially offset by a decrease in the average cost of used vehicles sold.
  • Selling, general and administrative expenses (“SG&A”) were $419.7 million, a decrease of $1.2 million, or 0.3%. SG&A Excluding Equity-based Compensation(1) was relatively unchanged at $414.4 million, a decrease of $0.2 million, or 0.1%, which was driven by $6.7 million reduced employee compensation costs and $5.8 million of reduced professional fees and services, which was partially offset by $11.8 million of additional advertising expenses.
  • Floor plan interest expense was $27.8 million, an increase of $7.1 million, or 34.5%, and other interest expense, net was $36.2 million, an increase of $2.6 million, or 7.9%. These increases were primarily as a result of the rise in interest rates and higher principal balances.
  • Net income was $23.4 million for the second quarter of 2024, a decrease of $41.3 million, or 63.8%.
  • Diluted earnings per share of Class A common stock was $0.22 for the second quarter of 2024 versus diluted earnings per share of Class A common stock of $0.64 for the second quarter of 2023. Adjusted earnings per share - diluted(1) of Class A common stock was $0.38 for the second quarter of 2024 versus adjusted earnings per share – diluted(1) of Class A common stock of $0.73 for the second quarter of 2023.
  • Adjusted EBITDA(1) was $105.6 million, a decrease of $33.7 million, or 24.2%, primarily due to $23.4 million decrease in gross profit, and the $7.1 million increase in floor plan interest.

(1)

Adjusted earnings per share – diluted, Adjusted EBITDA, and SG&A Excluding Equity-based Compensation are non-GAAP measures. For a reconciliation of these non-GAAP measures to the most directly comparable GAAP measures, see the “Non-GAAP Financial Measures” section later in this press release.

Earnings Conference Call and Webcast Information

A conference call to discuss the Company’s second quarter 2024 financial results is scheduled for August 1, 2024, at 7:30 am Central Time. Investors and analysts can participate on the conference call by dialing 1-844-826-3035 (international callers please dial 1-412-317-5195) and using conference ID# 10190122. Interested parties can also listen to a live webcast or replay of the conference call by logging on to the Investor Relations section on the Company’s website at http://investor.campingworld.com. The replay of the conference call webcast will be available on the investor relations website for approximately 90 days.

Presentation

This press release presents historical results for the periods presented for the Company and its subsidiaries, which are presented in accordance with accounting principles generally accepted in the United States (“GAAP”), unless noted as a non-GAAP financial measure. The Company’s initial public offering (“IPO”) and related reorganization transactions (“Reorganization Transactions”) that occurred on October 6, 2016 resulted in the Company as the sole managing member of CWGS Enterprises, LLC (“CWGS, LLC”), with sole voting power in and control of the management of CWGS, LLC. The Company’s position as sole managing member of CWGS, LLC includes periods where the Company has held a minority economic interest in CWGS, LLC. As of June 30, 2024, the Company owned 53.0% of CWGS, LLC. Accordingly, the Company consolidates the financial results of CWGS, LLC and reports a non-controlling interest in its consolidated financial statements. Unless otherwise indicated, all financial comparisons in this press release compare our financial results for the second quarter ended June 30, 2024 to our financial results from the second quarter ended June 30, 2023.

About Camping World Holdings, Inc.

Camping World Holdings, Inc., headquartered in Lincolnshire, IL, (together with its subsidiaries) is the world’s largest retailer of RVs and related products and services. Our vision is to build a long-term legacy business that makes RVing fun and easy. Our Camping World and Good Sam brands have been serving RV consumers since 1966. We strive to build long-term value for our customers, employees, and shareholders by combining a unique and comprehensive assortment of RV products and services with a national network of RV dealerships, service centers and customer support centers along with the industry’s most extensive online presence and a highly trained and knowledgeable team of employees serving our customers, the RV lifestyle, and the communities in which we operate. We also believe that our Good Sam organization and family of programs and services uniquely enable us to connect with our customers as stewards of the RV enthusiast community and the RV lifestyle. With RV sales and service locations in 43 states, Camping World has grown to become the prime destination for everything RV. For more information, visit www.CampingWorld.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements about our intention with regards to used aging and stocking levels, our cost management actions, our investments, our expectations regarding improvements in our business, macroeconomic and industry trends, business plans and goals, and future financial results and position, including vehicle margins and volume, in each case on any specific timeline or at all. These forward-looking statements are based on management’s current expectations.

These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, the following: general economic conditions, including inflation and interest rates; the availability of financing to us and our customers; fuel shortages, high prices for fuel or changes in energy sources; the success of our manufacturers; changes in consumer preferences; risks related to our strategic review of our Good Sam business; competition in our industry; risks related to acquisitions, new store openings and expansion into new markets; our failure to maintain the strength and value of our brands; our ability to manage our inventory; fluctuations in our same store sales; the cyclical and seasonal nature of our business; our dependence on the availability of adequate capital and risks related to our debt; risks related to COVID-19; our ability to execute and achieve the expected benefits of our cost cutting or restructuring initiatives; our reliance on our fulfillment and distribution centers; natural disasters, including epidemic outbreaks; our dependence on our relationships with third party suppliers and lending institutions; risks associated with selling goods manufactured abroad; our ability to retain senior executives and attract and retain other qualified employees; risks associated with leasing substantial amounts of space; risks associated with our private brand offerings; we may incur asset impairment charges for goodwill, intangible assets or other long-lived assets; tax risks; our private brand offerings exposing us to various risks; regulatory risks; data privacy and cybersecurity risks; risks related to our intellectual property; the impact of ongoing or future lawsuits against us and certain of our officers and directors; risks related to climate change and other environmental, social and governance matters; and risks related to our organizational structure.

These and other important factors discussed under the caption “Risk Factors” in our Annual Report on Form 10‑K for the year ended December 31, 2023 and our other reports filed with the SEC could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management’s estimates as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change, except as required under applicable law. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release.

Future declarations of quarterly dividends, if any, are subject to the determination and discretion of the Company’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, receipt of excess tax distributions from CWGS Enterprises, LLC, its business prospects and other factors that the Company’s Board of Directors may deem relevant.

We intend to use our official Facebook, X (formerly known as Twitter), and Instagram accounts, each at the handle @CampingWorld, as well as the investor page of our website, investor.campingworld.com, as a distribution channel of material information about the Company and for complying with our disclosure obligations under Regulation FD. The information we post through these social media channels and on our investor webpage may be deemed material. Accordingly, investors should subscribe to these accounts and our investor alerts, in addition to following our press releases, SEC filings, public conference calls and webcasts. These social media channels may be updated from time to time.

Camping World Holdings, Inc. and Subsidiaries

Consolidated Statements of Operations (unaudited)

(In Thousands Except Per Share Amounts)

 

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30,

 

June 30,

 

 

2024

 

2023

 

2024

 

2023

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

Good Sam Services and Plans

 

$

52,548

 

 

$

51,038

 

 

$

98,229

 

 

$

97,405

 

RV and Outdoor Retail

 

 

 

 

 

 

 

 

 

 

 

 

New vehicles

 

 

847,105

 

 

 

800,903

 

 

 

1,503,191

 

 

 

1,447,655

 

Used vehicles

 

 

480,774

 

 

 

622,962

 

 

 

818,459

 

 

 

1,067,708

 

Products, service and other

 

 

235,947

 

 

 

247,760

 

 

 

413,841

 

 

 

455,421

 

Finance and insurance, net

 

 

179,016

 

 

 

166,934

 

 

 

314,470

 

 

 

296,706

 

Good Sam Club

 

 

11,115

 

 

 

11,124

 

 

 

22,332

 

 

 

22,706

 

Subtotal

 

 

1,753,957

 

 

 

1,849,683

 

 

 

3,072,293

 

 

 

3,290,196

 

Total revenue

 

 

1,806,505

 

 

 

1,900,721

 

 

 

3,170,522

 

 

 

3,387,601

 

Costs applicable to revenue (exclusive of depreciation and amortization shown separately below):

 

 

 

 

 

 

 

 

 

 

 

 

Good Sam Services and Plans

 

 

17,192

 

 

 

17,671

 

 

 

32,375

 

 

 

33,823

 

RV and Outdoor Retail

 

 

 

 

 

 

 

 

 

 

 

 

New vehicles

 

 

717,650

 

 

 

677,376

 

 

 

1,282,689

 

 

 

1,234,918

 

Used vehicles

 

 

389,601

 

 

 

480,419

 

 

 

668,134

 

 

 

822,366

 

Products, service and other

 

 

132,933

 

 

 

153,043

 

 

 

234,608

 

 

 

282,061

 

Good Sam Club

 

 

1,470

 

 

 

1,110

 

 

 

2,660

 

 

 

2,311

 

Subtotal

 

 

1,241,654

 

 

 

1,311,948

 

 

 

2,188,091

 

 

 

2,341,656

 

Total costs applicable to revenue

 

 

1,258,846

 

 

 

1,329,619

 

 

 

2,220,466

 

 

 

2,375,479

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit (exclusive of depreciation and amortization shown separately below):

 

 

 

 

 

 

 

 

 

 

 

 

Good Sam Services and Plans

 

 

35,356

 

 

 

33,367

 

 

 

65,854

 

 

 

63,582

 

RV and Outdoor Retail

 

 

 

 

 

 

 

 

 

 

 

 

New vehicles

 

 

129,455

 

 

 

123,527

 

 

 

220,502

 

 

 

212,737

 

Used vehicles

 

 

91,173

 

 

 

142,543

 

 

 

150,325

 

 

 

245,342

 

Products, service and other

 

 

103,014

 

 

 

94,717

 

 

 

179,233

 

 

 

173,360

 

Finance and insurance, net

 

 

179,016

 

 

 

166,934

 

 

 

314,470

 

 

 

296,706

 

Good Sam Club

 

 

9,645

 

 

 

10,014

 

 

 

19,672

 

 

 

20,395

 

Subtotal

 

 

512,303

 

 

 

537,735

 

 

 

884,202

 

 

 

948,540

 

Total gross profit

 

 

547,659

 

 

 

571,102

 

 

 

950,056

 

 

 

1,012,122

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general, and administrative

 

 

419,676

 

 

 

420,887

 

 

 

791,149

 

 

 

786,613

 

Depreciation and amortization

 

 

20,032

 

 

 

17,206

 

 

 

39,322

 

 

 

31,843

 

Long-lived asset impairment

 

 

4,584

 

 

 

477

 

 

 

10,411

 

 

 

7,522

 

Lease termination

 

 

40

 

 

 

 

 

 

40

 

 

 

 

Loss (gain) on sale or disposal of assets

 

 

7,945

 

 

 

(145

)

 

 

9,530

 

 

 

(5,132

)

Total operating expenses

 

 

452,277

 

 

 

438,425

 

 

 

850,452

 

 

 

820,846

 

Income from operations

 

 

95,382

 

 

 

132,677

 

 

 

99,604

 

 

 

191,276

 

Other expense

 

 

 

 

 

 

 

 

 

 

 

 

Floor plan interest expense

 

 

(27,799

)

 

 

(20,672

)

 

 

(55,681

)

 

 

(41,482

)

Other interest expense, net

 

 

(36,153

)

 

 

(33,518

)

 

 

(72,247

)

 

 

(64,631

)

Other expense, net

 

 

(81

)

 

 

(183

)

 

 

(175

)

 

 

(1,683

)

Total other expense

 

 

(64,033

)

 

 

(54,373

)

 

 

(128,103

)

 

 

(107,796

)

Income (loss) before income taxes

 

 

31,349

 

 

 

78,304

 

 

 

(28,499

)

 

 

83,480

 

Income tax (expense) benefit

 

 

(7,935

)

 

 

(13,581

)

 

 

1,107

 

 

 

(13,854

)

Net income (loss)

 

 

23,414

 

 

 

64,723

 

 

 

(27,392

)

 

 

69,626

 

Less: net income (loss) attributable to non-controlling interests

 

 

(13,643

)

 

 

(36,020

)

 

 

14,856

 

 

 

(37,754

)

Net income (loss) attributable to Camping World Holdings, Inc.

 

$

9,771

 

 

$

28,703

 

 

$

(12,536

)

 

$

31,872

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (loss) per share of Class A common stock:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.22

 

 

$

0.65

 

 

$

(0.28

)

 

$

0.72

 

Diluted

 

$

0.22

 

 

$

0.64

 

 

$

(0.28

)

 

$

0.71

 

Weighted average shares of Class A common stock outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

45,093

 

 

 

44,490

 

 

 

45,070

 

 

 

44,473

 

Diluted

 

 

45,244

 

 

 

44,804

 

 

 

45,070

 

 

 

84,783

 

Camping World Holdings, Inc. and Subsidiaries

Supplemental Data (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

Increase

 

 

Percent

 

 

2024

 

2023

 

(decrease)

 

 

Change

Unit sales

 

 

 

 

 

 

 

 

 

New vehicles

 

 

22,084

 

 

 

18,897

 

 

 

3,187

 

 

 

 

16.9

%

Used vehicles

 

 

15,700

 

 

 

17,774

 

 

 

(2,074

)

 

 

 

(11.7

%)

Total

 

 

37,784

 

 

 

36,671

 

 

 

1,113

 

 

 

 

3.0

%

 

 

 

 

 

 

 

 

 

 

Average selling price

 

 

 

 

 

 

 

 

 

New vehicles

 

$

38,358

 

 

$

42,383

 

 

$

(4,025

)

 

 

 

(9.5

%)

Used vehicles

 

 

30,623

 

 

 

35,049

 

 

 

(4,426

)

 

 

 

(12.6

%)

 

 

 

 

 

 

 

 

 

 

Same store unit sales(1)

 

 

 

 

 

 

 

 

 

New vehicles

 

 

19,824

 

 

 

18,065

 

 

 

1,759

 

 

 

 

9.7

%

Used vehicles

 

 

14,269

 

 

 

17,195

 

 

 

(2,926

)

 

 

 

(17.0

%)

Total

 

 

34,093

 

 

 

35,260

 

 

 

(1,167

)

 

 

 

(3.3

%)

 

 

 

 

 

 

 

 

 

 

Same store revenue(1) ($ in 000s)

 

New vehicles

 

$

761,528

 

 

$

767,728

 

 

$

(6,200

)

 

 

 

(0.8

%)

Used vehicles

 

 

436,111

 

 

 

603,063

 

 

 

(166,952

)

 

 

 

(27.7

%)

Products, service and other

 

 

184,785

 

 

 

198,381

 

 

 

(13,596

)

 

 

 

(6.9

%)

Finance and insurance, net

 

 

160,923

 

 

 

161,210

 

 

 

(287

)

 

 

 

(0.2

%)

Total

 

$

1,543,347

 

 

$

1,730,382

 

 

$

(187,035

)

 

 

 

(10.8

%)

 

 

 

 

 

 

 

 

 

 

Average gross profit per unit

 

 

 

 

 

 

 

 

 

New vehicles

 

$

5,862

 

 

$

6,537

 

 

$

(675

)

 

 

 

(10.3

%)

Used vehicles

 

 

5,807

 

 

 

8,020

 

 

 

(2,213

)

 

 

 

(27.6

%)

Finance and insurance, net per vehicle unit

 

 

4,738

 

 

 

4,552

 

 

 

186

 

 

 

 

4.1

%

Total vehicle front-end yield(2)

 

 

10,577

 

 

 

11,808

 

 

 

(1,231

)

 

 

 

(10.4

%)

 

 

 

 

 

 

 

 

 

 

Gross margin

 

 

 

 

 

 

 

 

 

Good Sam Services and Plans

 

 

67.3

%

 

 

65.4

%

 

 

191

 

bps

 

 

 

New vehicles

 

 

15.3

%

 

 

15.4

%

 

 

(14

)

bps

 

 

 

Used vehicles

 

 

19.0

%

 

 

22.9

%

 

 

(392

)

bps

 

 

 

Products, service and other

 

 

43.7

%

 

 

38.2

%

 

 

543

 

bps

 

 

 

Finance and insurance, net

 

 

100.0

%

 

 

100.0

%

 

 

unch.

 

 

 

 

Good Sam Club

 

 

86.8

%

 

 

90.0

%

 

 

(325

)

bps

 

 

 

Subtotal RV and Outdoor Retail

 

 

29.2

%

 

 

29.1

%

 

 

14

 

bps

 

 

 

Total gross margin

 

 

30.3

%

 

 

30.0

%

 

 

27

 

bps

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail locations

 

 

 

 

 

 

 

 

 

RV dealerships

 

 

211

 

 

 

196

 

 

 

15

 

 

 

 

7.7

%

RV service & retail centers

 

 

4

 

 

 

7

 

 

 

(3

)

 

 

 

(42.9

%)

Total

 

 

215

 

 

 

203

 

 

 

12

 

 

 

 

5.9

%

 

 

 

 

 

 

 

 

 

 

RV and Outdoor Retail inventories ($ in 000s)

 

 

 

 

 

 

 

 

 

New vehicles

 

$

1,477,510

 

 

$

1,206,493

 

 

$

271,017

 

 

 

 

22.5

%

Used vehicles

 

 

349,843

 

 

 

651,396

 

 

 

(301,553

)

 

 

 

(46.3

%)

Products, parts, accessories and misc.

 

 

186,758

 

 

 

218,570

 

 

 

(31,812

)

 

 

 

(14.6

%)

Total RV and Outdoor Retail inventories

 

$

2,014,111

 

 

$

2,076,459

 

 

$

(62,348

)

 

 

 

(3.0

%)

 

 

 

 

 

 

 

 

 

 

Vehicle inventory per location ($ in 000s)

 

 

 

 

 

 

 

 

 

New vehicle inventory per dealer location

 

$

7,002

 

 

$

6,156

 

 

$

847

 

 

 

 

13.8

%

Used vehicle inventory per dealer location

 

 

1,658

 

 

 

3,323

 

 

 

(1,665

)

 

 

 

(50.1

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Vehicle inventory turnover(3)

 

 

 

 

 

 

 

 

 

New vehicle inventory turnover

 

 

2.0

 

 

 

1.8

 

 

 

0.2

 

 

 

 

10.8

%

Used vehicle inventory turnover

 

 

3.9

 

 

 

3.0

 

 

 

0.9

 

 

 

 

31.6

%

 

 

 

 

 

 

 

 

 

 

Other data

 

 

 

 

 

 

 

 

 

 

Active Customers(4)

 

 

4,762,376

 

 

 

5,218,340

 

 

 

(455,964

)

 

 

 

(8.7

%)

Good Sam Club members (5)

 

 

1,880,126

 

 

 

2,036,119

 

 

 

(155,993

)

 

 

 

(7.7

%)

Service bays (6)

 

 

2,877

 

 

 

2,720

 

 

 

157

 

 

 

 

5.8

%

Finance and insurance gross profit as a % of total vehicle revenue

 

 

13.5

%

 

 

11.7

%

 

 

176

 

bps

 

 

n/a

 

Same store locations

 

 

182

 

 

 

n/a

 

 

 

n/a

 

 

 

 

n/a

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30,

 

Increase

 

 

Percent

 

 

2024

 

2023

 

(decrease)

 

 

Change

Unit sales

 

 

 

 

 

 

 

 

 

 

 

 

 

New vehicles

 

 

38,966

 

 

 

32,809

 

 

 

6,157

 

 

 

 

18.8

%

Used vehicles

 

 

26,394

 

 

 

30,206

 

 

 

(3,812

)

 

 

 

(12.6

%)

Total

 

 

65,360

 

 

 

63,015

 

 

 

2,345

 

 

 

 

3.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average selling price

 

 

 

 

 

 

 

 

 

 

 

 

 

New vehicles

 

$

38,577

 

 

$

44,124

 

 

$

(5,547

)

 

 

 

(12.6

%)

Used vehicles

 

 

31,009

 

 

 

35,348

 

 

 

(4,338

)

 

 

 

(12.3

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Same store unit sales(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

New vehicles

 

 

35,447

 

 

 

31,591

 

 

 

3,856

 

 

 

 

12.2

%

Used vehicles

 

 

24,299

 

 

 

29,321

 

 

 

(5,022

)

 

 

 

(17.1

%)

Total

 

 

59,746

 

 

 

60,912

 

 

 

(1,166

)

 

 

 

(1.9

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Same store revenue(1) ($ in 000s)

 

 

 

 

 

 

 

 

 

 

 

 

 

New vehicles

 

$

1,368,241

 

 

$

1,398,018

 

 

$

(29,777

)

 

 

 

(2.1

%)

Used vehicles

 

 

748,589

 

 

 

1,037,534

 

 

 

(288,945

)

 

 

 

(27.8

%)

Products, service and other

 

 

329,200

 

 

 

356,855

 

 

 

(27,655

)

 

 

 

(7.7

%)

Finance and insurance, net

 

 

287,914

 

 

 

288,022

 

 

 

(108

)

 

 

 

(0.0

%)

Total

 

$

2,733,944

 

 

$

3,080,429

 

 

$

(346,485

)

 

 

 

(11.2

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average gross profit per unit

 

 

 

 

 

 

 

 

 

 

 

 

 

New vehicles

 

$

5,659

 

 

$

6,484

 

 

$

(825

)

 

 

 

(12.7

%)

Used vehicles

 

 

5,695

 

 

 

8,122

 

 

 

(2,427

)

 

 

 

(29.9

%)

Finance and insurance, net per vehicle unit

 

 

4,811

 

 

 

4,708

 

 

 

103

 

 

 

 

2.2

%

Total vehicle front-end yield(2)

 

 

10,485

 

 

 

11,978

 

 

 

(1,493

)

 

 

 

(12.5

%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross margin

 

 

 

 

 

 

 

 

 

 

 

 

 

Good Sam Services and Plans

 

 

67.0

%

 

 

65.3

%

 

 

177

 

bps

 

 

 

New vehicles

 

 

14.7

%

 

 

14.7

%

 

 

(3

)

bps

 

 

 

Used vehicles

 

 

18.4

%

 

 

23.0

%

 

 

(461

)

bps

 

 

 

Products, service and other

 

 

43.3

%

 

 

38.1

%

 

 

524

 

bps

 

 

 

Finance and insurance, net

 

 

100.0

%

 

 

100.0

%

 

 

unch.

bps

 

 

 

Good Sam Club

 

 

88.1

%

 

 

89.8

%

 

 

(173

)

bps

 

 

 

Subtotal RV and Outdoor Retail

 

 

28.8

%

 

 

28.8

%

 

 

(5

)

bps

 

 

 

Total gross margin

 

 

30.0

%

 

 

29.9

%

 

 

9

 

bps

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other data

 

 

 

 

 

 

 

 

 

 

 

 

 

Finance and insurance gross profit as a % of total vehicle revenue

 

 

13.5

%

 

 

11.8

%

 

 

175

 

bps

 

 

n/a

 

Same store locations

 

 

182

 

 

 

n/a

 

 

 

n/a

 

 

 

 

n/a

 

unch – unchanged

bps – basis points

n/a – not applicable

 

 

(1)

Our same store revenue and units calculations for a given period include only those stores that were open both at the end of the corresponding period and at the beginning of the preceding fiscal year.

(2)

Front end yield is calculated as gross profit from new vehicles, used vehicles and finance and insurance (net), divided by combined new and used vehicle unit sales.

(3)

Inventory turnover is calculated as vehicle costs applicable to revenue over the last twelve months divided by the average quarterly ending vehicle inventory over the last twelve months.

(4)

An Active Customer is a customer who has transacted with us in any of the eight most recently completed fiscal quarters prior to the date of measurement.

(5)

Excludes Good Sam Club members under the free basic plan, which was introduced in November 2023 and provides for limited participation in the loyalty point program without access to the remaining member benefits.

(6)

A service bay is a fully-constructed bay dedicated to service, installation, and collision offerings.

Camping World Holdings, Inc. and Subsidiaries

Consolidated Balance Sheets (unaudited)

(In Thousands Except Per Share Amounts)

 

 

 

 

 

 

 

 

 

 

 

 

June 30,

 

December 31,

 

June 30,

 

 

2024

 

2023

 

2023

Assets

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

23,743

 

 

$

39,647

 

 

$

54,458

 

Contracts in transit

 

 

165,033

 

 

 

60,229

 

 

 

132,466

 

Accounts receivable, net

 

 

128,938

 

 

 

128,070

 

 

 

119,247

 

Inventories

 

 

2,014,444

 

 

 

2,042,949

 

 

 

2,077,024

 

Prepaid expenses and other assets

 

 

68,220

 

 

 

48,353

 

 

 

56,063

 

Assets held for sale

 

 

8,418

 

 

 

29,864

 

 

 

4,635

 

Total current assets

 

 

2,408,796

 

 

 

2,349,112

 

 

 

2,443,893

 

 

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

856,308

 

 

 

834,426

 

 

 

785,003

 

Operating lease assets

 

 

760,143

 

 

 

740,052

 

 

 

730,460

 

Deferred tax assets, net

 

 

150,105

 

 

 

157,326

 

 

 

141,233

 

Intangible assets, net

 

 

21,354

 

 

 

13,717

 

 

 

15,028

 

Goodwill

 

 

731,015

 

 

 

711,222

 

 

 

655,744

 

Other assets

 

 

34,387

 

 

 

39,829

 

 

 

31,732

 

Total assets

 

$

4,962,108

 

 

$

4,845,684

 

 

$

4,803,093

 

Liabilities and stockholders' equity

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

Accounts payable

 

$

260,390

 

 

$

133,516

 

 

$

200,516

 

Accrued liabilities

 

 

187,120

 

 

 

149,096

 

 

 

192,639

 

Deferred revenues

 

 

99,045

 

 

 

92,366

 

 

 

96,850

 

Current portion of operating lease liabilities

 

 

62,795

 

 

 

63,695

 

 

 

61,808

 

Current portion of finance lease liabilities

 

 

7,335

 

 

 

17,133

 

 

 

5,337

 

Current portion of Tax Receivable Agreement liability

 

 

12,277

 

 

 

12,943

 

 

 

13,999

 

Current portion of long-term debt

 

 

24,082

 

 

 

22,121

 

 

 

26,766

 

Notes payable – floor plan, net

 

 

1,296,352

 

 

 

1,371,145

 

 

 

1,155,356

 

Other current liabilities

 

 

80,343

 

 

 

68,536

 

 

 

84,552

 

Liabilities related to assets held for sale

 

 

 

 

 

17,288

 

 

 

4,125

 

Total current liabilities

 

 

2,029,739

 

 

 

1,947,839

 

 

 

1,841,948

 

 

 

 

 

 

 

 

 

 

 

Operating lease liabilities, net of current portion

 

 

788,613

 

 

 

763,958

 

 

 

753,999

 

Finance lease liabilities, net of current portion

 

 

134,538

 

 

 

97,751

 

 

 

99,341

 

Tax Receivable Agreement liability, net of current portion

 

 

137,589

 

 

 

149,866

 

 

 

151,053

 

Revolving line of credit

 

 

31,885

 

 

 

20,885

 

 

 

20,885

 

Long-term debt, net of current portion

 

 

1,513,986

 

 

 

1,498,958

 

 

 

1,521,629

 

Deferred revenues

 

 

66,981

 

 

 

66,780

 

 

 

69,809

 

Other long-term liabilities

 

 

92,140

 

 

 

85,440

 

 

 

86,186

 

Total liabilities

 

 

4,795,471

 

 

 

4,631,477

 

 

 

4,544,850

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

Stockholders' equity:

 

 

 

 

 

 

 

 

 

Preferred stock, par value $0.01 per share – 20,000 shares authorized; none issued and outstanding

 

 

 

 

 

 

 

 

 

Class A common stock, par value $0.01 per share – 250,000 shares authorized; 49,571, 49,571 and 49,571 shares issued, respectively; 45,115, 45,020 and 44,525 shares outstanding, respectively

 

 

496

 

 

 

496

 

 

 

496

 

Class B common stock, par value $0.0001 per share – 75,000 shares authorized; 39,466, 39,466 and 39,466 shares issued, respectively; 39,466, 39,466 and 39,466 shares outstanding, respectively

 

 

4

 

 

 

4

 

 

 

4

 

Class C common stock, par value $0.0001 per share – 0.001 share authorized, issued and outstanding

 

 

 

 

 

 

 

 

 

Additional paid-in capital

 

 

100,076

 

 

 

98,280

 

 

 

115,844

 

Treasury stock, at cost; 4,456, 4,551, and 5,046 shares, respectively

 

 

(156,116

)

 

 

(159,440

)

 

 

(176,783

)

Retained earnings

 

 

161,434

 

 

 

185,244

 

 

 

197,293

 

Total stockholders' equity attributable to Camping World Holdings, Inc.

 

 

105,894

 

 

 

124,584

 

 

 

136,854

 

Non-controlling interests

 

 

60,743

 

 

 

89,623

 

 

 

121,389

 

Total stockholders' equity

 

 

166,637

 

 

 

214,207

 

 

 

258,243

 

Total liabilities and stockholders' equity

 

$

4,962,108

 

 

$

4,845,684

 

 

$

4,803,093

Camping World Holdings, Inc. and Subsidiaries

Summary of Consolidated Statements of Cash Flows (unaudited)

(In Thousands)

 

 

 

 

 

 

 

 

 

Six Months Ended June 30,

 

 

2024

 

2023

 

 

 

 

 

 

 

Net cash provided by operating activities

 

$

84,341

 

 

$

227,964

 

 

 

 

 

 

 

 

Investing activities

 

 

 

 

 

 

Purchases of property and equipment

 

 

(48,553

)

 

 

(53,053

)

Proceeds from sale of property and equipment

 

 

3,583

 

 

 

2,034

 

Purchases of real property

 

 

(1,243

)

 

 

(36,981

)

Proceeds from the sale of real property

 

 

31,195

 

 

 

35,603

 

Purchases of businesses, net of cash acquired

 

 

(62,323

)

 

 

(74,414

)

Proceeds from divestiture of business

 

 

19,957

 

 

 

 

Purchases of and loans to other investments

 

 

 

 

 

(3,444

)

Purchases of intangible assets

 

 

(142

)

 

 

(1,652

)

Proceeds from sale of intangible assets

 

 

2,595

 

 

 

 

Net cash used in investing activities

 

 

(54,931

)

 

 

(131,907

)

 

 

 

 

 

 

 

Financing activities

 

 

 

 

 

 

Proceeds from long-term debt

 

 

55,624

 

 

 

59,227

 

Payments on long-term debt

 

 

(57,351

)

 

 

(22,776

)

Net payments on notes payable – floor plan, net

 

 

(19,160

)

 

 

(131,462

)

Borrowings on revolving line of credit

 

 

43,000

 

 

 

 

Payments on revolving line of credit

 

 

(32,000

)

 

 

 

Payments on finance leases

 

 

(3,682

)

 

 

(2,847

)

Payments on sale-leaseback arrangement

 

 

(97

)

 

 

(92

)

Payment of debt issuance costs

 

 

(876

)

 

 

(858

)

Dividends on Class A common stock

 

 

(11,274

)

 

 

(55,610

)

Proceeds from exercise of stock options

 

 

51

 

 

 

143

 

RSU shares withheld for tax

 

 

(754

)

 

 

(625

)

Distributions to holders of LLC common units

 

 

(18,795

)

 

 

(16,830

)

Net cash used in financing activities

 

 

(45,314

)

 

 

(171,730

)

 

 

 

 

 

 

 

Decrease in cash and cash equivalents

 

 

(15,904

)

 

 

(75,673

)

Cash and cash equivalents at beginning of the period

 

 

39,647

 

 

 

130,131

 

Cash and cash equivalents at end of the period

 

$

23,743

 

 

$

54,458

Comparison of Certain Trends to Pre-COVID-19 Pandemic Periods

New vehicle gross margins in the second quarter of 2024 were relatively similar to second quarter of 2023 and slightly above the range of gross margins for the pre-COVID-19 pandemic periods presented in the table below. Additionally, used vehicle gross margins were negatively impacted in the second quarter of 2024 from the discounting necessary to maintain used vehicles as a lower cost alternative for our customers. Beginning primarily in the fourth quarter of 2023, we adjusted our acceptable procurement cost of used vehicles to reflect the lower average market price of RVs that was driven by the lower cost 2024 models.

The following table presents vehicle gross margin and unit sales mix for the three months ended June 30, 2024 and pre-COVID-19 pandemic periods for the three months ended June 30, 2019, 2018, 2017, and 2016 (unaudited):

 

 

Three Months Ended June 30,

 

 

2024

 

2019(1)

 

2018(1)

 

2017(1)

 

2016(1)

Gross margin:

 

 

 

 

 

 

 

 

 

 

New vehicles

 

15.3

%

 

12.5

%

 

13.6

%

 

15.1

%

 

14.9

%

Used vehicles

 

19.0

%

 

21.6

%

 

22.9

%

 

25.9

%

 

20.4

%

 

 

 

 

 

 

 

 

 

 

 

Unit sales mix:

 

 

 

 

 

 

 

 

 

 

New vehicles

 

58.4

%

 

67.9

%

 

72.7

%

 

70.7

%

 

61.6

%

Used vehicles

 

41.6

%

 

32.1

%

 

27.3

%

 

29.3

%

 

38.4

%

(1)

These periods were prior to the COVID-19 pandemic.

Earnings (Loss) Per Share

Basic earnings (loss) per share of Class A common stock is computed by dividing net income (loss) attributable to Camping World Holdings, Inc. by the weighted-average number of shares of Class A common stock outstanding during the period. Diluted earnings (loss) per share of Class A common stock is computed by dividing net income (loss) attributable to Camping World Holdings, Inc. by the weighted-average number of shares of Class A common stock outstanding adjusted to give effect to potentially dilutive securities.

The following table sets forth reconciliations of the numerators and denominators used to compute basic and diluted earnings (loss) per share of Class A common stock (unaudited):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

(In thousands except per share amounts)

 

2024

 

2023

 

2024

 

2023

Numerator:

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

23,414

 

 

$

64,723

 

 

$

(27,392

)

 

$

69,626

 

Less: net income (loss) attributable to non-controlling interests

 

 

(13,643

)

 

 

(36,020

)

 

 

14,856

 

 

 

(37,754

)

Net income (loss) attributable to Camping World Holdings, Inc. — basic

 

$

9,771

 

 

$

28,703

 

 

$

(12,536

)

 

$

31,872

 

Add: reallocation of net income attributable to non-controlling interests from the assumed dilutive effect of stock options and RSUs

 

 

19

 

 

 

101

 

 

 

 

 

 

 

Add: reallocation of net income attributable to non-controlling interests from the assumed redemption of common units of CWGS, LLC for Class A common stock

 

 

 

 

 

 

 

 

 

 

 

28,569

 

Net income (loss) attributable to Camping World Holdings, Inc. — diluted

 

$

9,790

 

 

$

28,804

 

 

$

(12,536

)

 

$

60,441

 

Denominator:

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average shares of Class A common stock outstanding — basic

 

 

45,093

 

 

 

44,490

 

 

 

45,070

 

 

 

44,473

 

Dilutive options to purchase Class A common stock

 

 

 

 

 

29

 

 

 

 

 

 

22

 

Dilutive restricted stock units

 

 

151

 

 

 

285

 

 

 

 

 

 

243

 

Dilutive common units of CWGS, LLC that are convertible into Class A common stock

 

 

 

 

 

 

 

 

 

 

 

40,045

 

Weighted-average shares of Class A common stock outstanding — diluted

 

 

45,244

 

 

 

44,804

 

 

 

45,070

 

 

 

84,783

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (loss) per share of Class A common stock — basic

 

$

0.22

 

 

$

0.65

 

 

$

(0.28

)

 

$

0.72

 

Earnings (loss) per share of Class A common stock — diluted

 

$

0.22

 

 

$

0.64

 

 

$

(0.28

)

 

$

0.71

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average anti-dilutive securities excluded from the computation of diluted earnings (loss) per share of Class A common stock:

 

 

 

 

 

 

 

 

 

 

 

 

Stock options to purchase Class A common stock

 

 

186

 

 

 

 

 

 

188

 

 

 

 

Restricted stock units

 

 

1,037

 

 

 

1,099

 

 

 

1,980

 

 

 

1,608

 

Common units of CWGS, LLC that are convertible into Class A common stock

 

 

40,045

 

 

 

40,045

 

 

 

40,045

 

 

 

 

Non-GAAP Financial Measures

To supplement our consolidated financial statements, which are prepared and presented in accordance with accounting principles generally accepted in the United States (“GAAP”), we use the following non-GAAP financial measures: EBITDA; Adjusted EBITDA; Adjusted EBITDA Margin; trailing twelve-month (“TTM”) Adjusted EBITDA; Adjusted Net Income (Loss) Attributable to Camping World Holdings, Inc. – Basic; Adjusted Net Income (Loss) Attributable to Camping World Holdings, Inc. – Diluted; Adjusted Earnings (Loss) Per Share – Basic; Adjusted Earnings (Loss) Per Share – Diluted; and SG&A Excluding Equity-based Compensation (collectively the "Non-GAAP Financial Measures"). We believe that these Non-GAAP Financial Measures, when used in conjunction with GAAP financial measures, provide useful information about operating results, enhance the overall understanding of past financial performance and future prospects, and allow for greater transparency with respect to the key metrics we use in our financial and operational decision making. Certain of these Non-GAAP Financial Measures are also frequently used by analysts, investors and other interested parties to evaluate companies in the Company’s industry and are used by management to evaluate our operating performance, to evaluate the effectiveness of strategic initiatives and for planning purposes. By providing these Non-GAAP Financial Measures, together with reconciliations, we believe we are enhancing investors’ understanding of our business and our results of operations, as well as assisting investors in evaluating how well we are executing our strategic initiatives. In addition, our Senior Secured Credit Facilities use Adjusted EBITDA, as calculated for our subsidiary CWGS Group, LLC, to measure our compliance with covenants such as the consolidated leverage ratio. The Non-GAAP Financial Measures have limitations as analytical tools, and the presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. They should not be construed as an inference that the Company’s future results will be unaffected by any items adjusted for in these Non-GAAP Financial Measures. In evaluating these Non-GAAP Financial Measures, it is reasonable to expect that certain of these items will occur in future periods. However, we believe these adjustments are appropriate because the amounts recognized can vary significantly from period to period, do not directly relate to the ongoing operations of our business and complicate comparisons of our internal operating results and operating results of other companies over time. Each of the normal recurring adjustments and other adjustments described in this section and in the reconciliation tables below help management with a measure of our core operating performance over time by removing items that are not related to day-to-day operations.

For periods beginning after December 31, 2022 for the 2019 Strategic Shift and for periods beginning after December 31, 2023 for the Active Sports Restructuring, we are no longer including the other associated costs category of expenses relating to those restructuring activities as restructuring costs for purposes of our Non-GAAP Financial Measures, since these costs are not expected to be significant in future periods.

Our earnings call on August 1, 2024 may present guidance that includes Adjusted EBITDA. A full reconciliation of the forecasted Adjusted EBITDA to its most-directly comparable GAAP metric cannot be provided without unreasonable efforts due to the inherent difficulty in forecasting and quantifying with reasonable accuracy significant items required for the reconciliations.

The Non-GAAP Financial Measures that we use are not necessarily comparable to similarly titled measures used by other companies due to different methods of calculation.

EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin

We define “EBITDA” as net income (loss) before other interest expense, net (excluding floor plan interest expense), provision for income tax (expense) benefit and depreciation and amortization. We define “Adjusted EBITDA” as EBITDA further adjusted for the impact of certain noncash and other items that we do not consider in our evaluation of ongoing operating performance. These items include, among other things, long-lived asset impairment, lease termination, gains and losses on sale or disposal of assets, net, equity-based compensation, loss and impairment on investments in equity securities, Tax Receivable Agreement liability adjustment, restructuring costs related to the Active Sports Restructuring, and other unusual or one-time items. We define “Adjusted EBITDA Margin” as Adjusted EBITDA as a percentage of total revenue. We caution investors that amounts presented in accordance with our definitions of EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin may not be comparable to similar measures disclosed by our competitors, because not all companies and analysts calculate EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin in the same manner. We present EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin because we consider them to be important supplemental measures of our performance and believe they are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in our industry. Management believes that investors’ understanding of our performance is enhanced by including these Non-GAAP Financial Measures as a reasonable basis for comparing our ongoing results of operations.

The following table reconciles EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin to the most directly comparable GAAP financial performance measures (unaudited):

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

($ in thousands)

 

2024

 

2023

 

2024

 

2023

EBITDA and Adjusted EBITDA:

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

23,414

 

$

64,723

 

 

$

(27,392

)

 

$

69,626

 

Other interest expense, net

 

 

36,153

 

 

33,518

 

 

 

72,247

 

 

 

64,631

 

Depreciation and amortization

 

 

20,032

 

 

17,206

 

 

 

39,322

 

 

 

31,843

 

Income tax expense (benefit)

 

 

7,935

 

 

13,581

 

 

 

(1,107

)

 

 

13,854

 

Subtotal EBITDA

 

 

87,534

 

 

129,028

 

 

 

83,070

 

 

 

179,954

 

Long-lived asset impairment (a)

 

 

4,584

 

 

477

 

 

 

10,411

 

 

 

7,522

 

Lease termination (b)

 

 

40

 

 

 

 

 

40

 

 

 

 

Loss (gain) on sale or disposal of assets, net (c)

 

 

7,945

 

 

(145

)

 

 

9,530

 

 

 

(5,132

)

Equity-based compensation (d)

 

 

5,397

 

 

6,492

 

 

 

10,594

 

 

 

12,850

 

Restructuring costs (e)

 

 

 

 

3,259

 

 

 

 

 

 

3,259

 

Loss and impairment on investments in equity securities (f)

 

 

81

 

 

184

 

 

 

175

 

 

 

1,683

 

Adjusted EBITDA

 

$

105,581

 

$

139,295

 

 

$

113,820

 

 

$

200,136

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

(as percentage of total revenue)

 

2024

 

2023

 

2024

 

2023

Adjusted EBITDA margin:

 

 

 

 

 

 

 

 

Net income (loss) margin

 

1.3

%

 

3.4

%

 

(0.9

%)

 

2.1

%

Other interest expense, net

 

2.0

%

 

1.8

%

 

2.3

%

 

1.9

%

Depreciation and amortization

 

1.1

%

 

0.9

%

 

1.2

%

 

0.9

%

Income tax expense (benefit)

 

0.4

%

 

0.7

%

 

(0.0

%)

 

0.4

%

Subtotal EBITDA margin

 

4.8

%

 

6.8

%

 

2.6

%

 

5.3

%

Long-lived asset impairment (a)

 

0.3

%

 

0.0

%

 

0.3

%

 

0.2

%

Lease termination (b)

 

0.0

%

 

 

 

0.0

%

 

 

Loss (gain) on sale or disposal of assets, net (c)

 

0.4

%

 

(0.0

%)

 

0.3

%

 

(0.2

%)

Equity-based compensation (d)

 

0.3

%

 

0.3

%

 

0.3

%

 

0.4

%

Restructuring costs (e)

 

 

 

0.2

%

 

 

 

0.1

%

Loss and impairment on investments in equity securities (f)

 

0.0

%

 

0.0

%

 

0.0

%

 

0.0

%

Adjusted EBITDA margin

 

5.8

%

 

7.3

%

 

3.6

%

 

5.9

%

 

Three Months Ended

 

TTM Ended

 

June 30,

 

March 31,

 

December 31,

 

September 30,

 

June 30,

($ in thousands)

2024

 

2024

 

2023

 

2023

 

2024

Adjusted EBITDA:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

$

23,414

 

$

(50,806

)

 

$

(49,918

)

 

$

30,893

 

 

$

(46,417

)

Other interest expense, net

 

36,153

 

 

36,094

 

 

 

35,397

 

 

 

35,242

 

 

 

142,886

 

Depreciation and amortization

 

20,032

 

 

19,290

 

 

 

19,181

 

 

 

17,619

 

 

 

76,122

 

Income tax expense (benefit)

 

7,935

 

 

(9,042

)

 

 

(18,732

)

 

 

3,679

 

 

 

(16,160

)

Subtotal EBITDA

 

87,534

 

 

(4,464

)

 

 

(14,072

)

 

 

87,433

 

 

 

156,431

 

Long-lived asset impairment (a)

 

4,584

 

 

5,827

 

 

 

 

 

 

1,747

 

 

 

12,158

 

Lease termination (b)

 

40

 

 

 

 

 

(478

)

 

 

375

 

 

 

(63

)

Loss (gain) on sale or disposal of assets, net (c)

 

7,945

 

 

1,585

 

 

 

(221

)

 

 

131

 

 

 

9,440

 

Equity-based compensation (d)

 

5,397

 

 

5,197

 

 

 

5,770

 

 

 

5,466

 

 

 

21,830

 

Restructuring costs (e)

 

 

 

 

 

 

732

 

 

 

1,549

 

 

 

2,281

 

Loss and impairment on investments in equity securities (f)

 

81

 

 

94

 

 

 

110

 

 

 

(23

)

 

 

262

 

Tax Receivable Agreement liability adjustment (g)

 

 

 

 

 

 

(762

)

 

 

(1,680

)

 

 

(2,442

)

Adjusted EBITDA

$

105,581

 

$

8,239

 

 

$

(8,921

)

 

$

94,998

 

 

$

199,897

 

(a)

Represents long-lived asset impairment charges related to the RV and Outdoor Retail segment.

(b)

Represents the loss on the termination of operating leases resulting from lease termination fees and the derecognition of the operating lease assets and liabilities.

(c)

Represents an adjustment to eliminate the gains and losses on disposals and sales of various assets.

(d)

Represents non-cash equity-based compensation expense relating to employees, directors, and consultants of the Company.

(e)

Represents restructuring costs relating to the Active Sports Restructuring. These restructuring costs include one-time termination benefits, incremental inventory reserve charges, and other associated costs. These costs exclude lease termination costs, which are presented separately above.

(f)

Represents gain and loss and impairment on investments in equity securities and interest income relating to any notes receivables with those investments. These amounts are included in other expense, net in the consolidated statements of operations. During the six months ended June 30, 2023, this amount included a $1.3 million impairment on an equity method investment.

(g)

Represents an adjustment to eliminate the gains on remeasurement of the Tax Receivable Agreement primarily due to changes in the Company’s blended statutory income tax rate.

Adjusted Net Income (Loss) Attributable to Camping World Holdings, Inc. and Adjusted Earnings (Loss) Per Share

We define “Adjusted Net Income (Loss) Attributable to Camping World Holdings, Inc. – Basic” as net income (loss) attributable to Camping World Holdings, Inc. adjusted for the impact of certain non-cash and other items that we do not consider in our evaluation of ongoing operating performance. These items include, among other things, long-lived asset impairment, lease termination costs, gains and losses on sale or disposal of assets, net, equity-based compensation, loss and impairment on investments in equity securities, other unusual or one-time items, the income tax (expense) benefit effect of these adjustments, and the effect of net income (loss) attributable to non-controlling interests from these adjustments.

We define “Adjusted Net Income (Loss) Attributable to Camping World Holdings, Inc. – Diluted” as Adjusted Net Income (Loss) Attributable to Camping World Holdings, Inc. – Basic adjusted for the reallocation of net income (loss) attributable to non-controlling interests from stock options and restricted stock units, if dilutive, or the assumed redemption, if dilutive, of all outstanding common units in CWGS, LLC for shares of newly-issued Class A common stock of Camping World Holdings, Inc.

We define “Adjusted Earnings (Loss) Per Share – Basic” as Adjusted Net Income (Loss) Attributable to Camping World Holdings, Inc. - Basic divided by the weighted-average shares of Class A common stock outstanding. We define “Adjusted Earnings (Loss) Per Share – Diluted” as Adjusted Net Income (Loss) Attributable to Camping World Holdings, Inc. – Diluted divided by the weighted-average shares of Class A common stock outstanding, assuming (i) the redemption of all outstanding common units in CWGS, LLC for newly-issued shares of Class A common stock of Camping World Holdings, Inc., if dilutive, and (ii) the dilutive effect of stock options and restricted stock units, if any. We present Adjusted Net Income (Loss) Attributable to Camping World Holdings, Inc. – Basic, Adjusted Net Income (Loss) Attributable to Camping World Holdings, Inc. – Diluted, Adjusted Earnings (Loss) Per Share – Basic, and Adjusted Earnings (Loss) Per Share – Diluted because we consider them to be important supplemental measures of our performance and we believe that investors’ understanding of our performance is enhanced by including these Non-GAAP financial measures as a reasonable basis for comparing our ongoing results of operations.

The following table reconciles Adjusted Net Income (Loss) Attributable to Camping World Holdings, Inc. – Basic, Adjusted Net Income (Loss) Attributable to Camping World Holdings, Inc. – Diluted, Adjusted Earnings (Loss) Per Share – Basic, and Adjusted Earnings (Loss) Per Share – Diluted to the most directly comparable GAAP financial performance measure:

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

(In thousands except per share amounts)

 

2024

 

2023

 

2024

 

2023

Numerator:

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to Camping World Holdings, Inc.

 

$

9,771

 

 

$

28,703

 

 

$

(12,536

)

 

$

31,872

 

Adjustments related to basic calculation:

 

 

 

 

 

 

 

 

 

 

 

 

Long-lived asset impairment (a):

 

 

 

 

 

 

 

 

 

 

 

 

Gross adjustment

 

 

4,584

 

 

 

477

 

 

 

10,411

 

 

 

7,522

 

Income tax expense for above adjustment (b)

 

 

(607

)

 

 

(64

)

 

 

(1,378

)

 

 

(1,002

)

Lease termination (c):

 

 

 

 

 

 

 

 

 

 

 

 

Gross adjustment

 

 

40

 

 

 

 

 

 

40

 

 

 

 

Income tax expense for above adjustment (b)

 

 

(5

)

 

 

 

 

 

(5

)

 

 

 

Loss (gain) on sale or disposal of assets (d):

 

 

 

 

 

 

 

 

 

 

 

 

Gross adjustment

 

 

7,945

 

 

 

(145

)

 

 

9,530

 

 

 

(5,132

)

Income tax (expense) benefit for above adjustment (b)

 

 

(1,052

)

 

 

19

 

 

 

(1,262

)

 

 

684

 

Equity-based compensation (e):

 

 

 

 

 

 

 

 

 

 

 

 

Gross adjustment

 

 

5,397

 

 

 

6,492

 

 

 

10,594

 

 

 

12,850

 

Income tax expense for above adjustment (b)

 

 

(722

)

 

 

(872

)

 

 

(1,417

)

 

 

(1,729

)

Restructuring costs (f):

 

 

 

 

 

 

 

 

 

 

 

 

Gross adjustment

 

 

 

 

 

3,259

 

 

 

 

 

 

3,259

 

Income tax expense for above adjustment (b)

 

 

 

 

 

(434

)

 

 

 

 

 

(434

)

Loss and impairment on investments in equity securities (g):

 

 

 

 

 

 

 

 

 

 

 

 

Gross adjustment

 

 

81

 

 

 

184

 

 

 

175

 

 

 

1,683

 

Income tax expense for above adjustment (b)

 

 

(11

)

 

 

(25

)

 

 

(23

)

 

 

(225

)

Adjustment to net income (loss) attributable to non-controlling interests resulting from the above adjustments (h)

 

 

(8,481

)

 

 

(4,855

)

 

 

(14,452

)

 

 

(9,543

)

Adjusted net income (loss) attributable to Camping World Holdings, Inc. – basic

 

 

16,940

 

 

 

32,739

 

 

 

(323

)

 

 

39,805

 

Adjustments related to diluted calculation:

 

 

 

 

 

 

 

 

 

 

 

 

Reallocation of net income (loss) attributable to non-controlling interests from the dilutive effect of stock options and restricted stock units (i)

 

 

39

 

 

 

151

 

 

 

(38

)

 

 

 

Income tax on reallocation of net income (loss) attributable to non-controlling interests from the dilutive effect of stock options and restricted stock units (j)

 

 

(9

)

 

 

(37

)

 

 

10

 

 

 

 

Reallocation of net income (loss) attributable to non-controlling interests from the dilutive redemption of common units in CWGS, LLC (i)

 

 

 

 

 

 

 

 

 

 

 

47,298

 

Income tax on reallocation of net income (loss) attributable to non-controlling interests from the dilutive redemption of common units in CWGS, LLC (j)

 

 

 

 

 

 

 

 

 

 

 

(11,586

)

Adjusted net income (loss) attributable to Camping World Holdings, Inc. – diluted

 

$

16,970

 

 

$

32,853

 

 

$

(351

)

 

$

75,517

 

Denominator:

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average Class A common shares outstanding – basic

 

 

45,093

 

 

 

44,490

 

 

 

45,070

 

 

 

44,473

 

Adjustments related to diluted calculation:

 

 

 

 

 

 

 

 

 

 

 

 

Dilutive redemption of common units in CWGS, LLC for shares of Class A common stock (k)

 

 

 

 

 

 

 

 

 

 

 

40,045

 

Dilutive options to purchase Class A common stock (k)

 

 

 

 

 

29

 

 

 

14

 

 

 

22

 

Dilutive restricted stock units (k)

 

 

151

 

 

 

285

 

 

 

207

 

 

 

243

 

Adjusted weighted average Class A common shares outstanding – diluted

 

 

45,244

 

 

 

44,804

 

 

 

45,291

 

 

 

84,783

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted earnings (loss) per share - basic

 

$

0.38

 

 

$

0.74

 

 

$

(0.01

)

 

$

0.90

 

Adjusted earnings (loss) per share - diluted

 

$

0.38

 

 

$

0.73

 

 

$

(0.01

)

 

$

0.89

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Anti-dilutive amounts (l):

 

 

 

 

 

 

 

 

 

 

 

 

Numerator:

 

 

 

 

 

 

 

 

 

 

 

 

Reallocation of net income (loss) attributable to non-controlling interests from the anti-dilutive redemption of common units in CWGS, LLC (i)

 

$

22,085

 

 

$

40,724

 

 

$

(366

)

 

$

 

Income tax on reallocation of net income (loss) attributable to non-controlling interests from the anti-dilutive redemption of common units in CWGS, LLC (j)

 

$

(5,126

)

 

$

(9,934

)

 

$

592

 

 

$

 

Denominator:

 

 

 

 

 

 

 

 

 

 

 

 

Anti-dilutive redemption of common units in CWGS, LLC for shares of Class A common stock (k)

 

 

40,045

 

 

 

40,045

 

 

 

40,045

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of per share amounts:

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (loss) per share of Class A common stock — basic

 

$

0.22

 

 

$

0.65

 

 

$

(0.28

)

 

$

0.72

 

Non-GAAP Adjustments (m)

 

 

0.16

 

 

 

0.09

 

 

 

0.27

 

 

 

0.18

 

Adjusted earnings (loss) per share - basic

 

$

0.38

 

 

$

0.74

 

 

$

(0.01

)

 

$

0.90

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (loss) per share of Class A common stock — diluted

 

$

0.22

 

 

$

0.64

 

 

$

(0.28

)

 

$

0.71

 

Non-GAAP Adjustments (m)

 

 

0.16

 

 

 

0.09

 

 

 

0.27

 

 

 

0.18

 

Adjusted earnings (loss) per share - diluted

 

$

0.38

 

 

$

0.73

 

 

$

(0.01

)

 

$

0.89

 

(a)

Represents long-lived asset impairment charges related to the RV and Outdoor Retail segment.

(b)

Represents the current and deferred income tax expense or benefit effect of the above adjustments. This assumption uses effective tax rates of 25.0% and 25.3% for the adjustments for the 2024 and 2023 periods, which represent the estimated tax rates that would apply had the above adjustments been included in the determination of our non-GAAP metric.

(c)

Represents the loss on the termination of operating leases resulting from lease termination fees and the derecognition of the operating lease assets and liabilities.

(d)

Represents an adjustment to eliminate the gains and losses on disposals and sales of various assets.

(e)

Represents non-cash equity-based compensation expense relating to employees, directors, and consultants of the Company.

(f)

Represents restructuring costs relating to Active Sports Restructuring during the three and six months ended June 30, 2023. These restructuring costs include one-time termination benefits, incremental inventory reserve charges, and other associated costs. These costs exclude lease termination costs.

(g)

Represents loss and impairment on investments in equity securities and interest income relating to any notes receivables with those investments. During the six months ended June 30, 2023, this amount included a $1.3 million impairment on an equity method investment.

(h)

Represents the adjustment to net income (loss) attributable to non-controlling interests resulting from the above adjustments that impact the net income (loss) of CWGS, LLC. This adjustment uses the non-controlling interest’s weighted average ownership of CWGS, LLC of 47.0% and 47.4% for the three months ended June 30, 2024 and 2023, respectively, and 47.0% and 47.4% for the six months ended June 30, 2024 and 2023, respectively.

(i)

Represents the reallocation of net income (loss) attributable to non-controlling interests from the impact of the assumed change in ownership of CWGS, LLC from stock options, restricted stock units, and/or common units of CWGS, LLC.

(j)

Represents the income tax expense effect of the above adjustment for reallocation of net income (loss) attributable to non-controlling interests. This assumption uses effective tax rates of 25.0% and 25.3% for the adjustments for 2024 and 2023 periods.

(k)

Represents the impact to the denominator for stock options, restricted stock units, and/or common units of CWGS, LLC.

(l)

The below amounts have not been considered in our adjusted earnings (loss) per share – diluted amounts as the effect of these items are anti-dilutive.

(m)

Represents the per share impact of the Non-GAAP adjustments to net income (loss) detailed above (see (a) through (h) above).

Our “Up-C” corporate structure may make it difficult to compare our results with those of companies with a more traditional corporate structure. There can be a significant fluctuation in the numerator and denominator for the calculation of our adjusted earnings (loss) per share – diluted depending on if the common units in CWGS, LLC are considered dilutive or anti-dilutive for a given period. To improve comparability of our financial results, users of our financial statements may find it useful to review our earnings (loss) per share assuming the full redemption of common units in CWGS, LLC for all periods, even when those common units would be anti-dilutive. The relevant numerator and denominator adjustments have been provided under “Anti-dilutive amounts” in the table above (see (l) above).

SG&A Excluding Equity-based Compensation

We define “SG&A Excluding Equity-based Compensation” as SG&A before Equity-based Compensation relating to SG&A. We caution investors that amounts presented in accordance with our definition of SG&A Excluding Equity-based Compensation may not be comparable to similar measures disclosed by our competitors, because not all companies and analysts calculate SG&A Excluding Equity-based Compensation in the same manner. We present SG&A Excluding Equity-based Compensation because we believe that investors’ understanding of our performance and drivers of our other Non-GAAP Financial Measures, such as Adjusted EBITDA, is enhanced by including this Non-GAAP Financial Measure as a reasonable basis for comparing our ongoing results of operations.

The following table reconciles SG&A Excluding Equity-based Compensation to the most directly comparable GAAP financial performance measure:

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

($ in thousands)

 

2024

 

2023

 

2024

 

2023

SG&A Excluding Equity-based Compensation:

 

 

 

 

 

 

 

 

 

 

 

 

SG&A

 

$

419,676

 

 

$

420,887

 

 

$

791,149

 

 

$

786,613

 

Equity-based Compensation - SG&A

 

 

(5,308

)

 

 

(6,270

)

 

 

(10,413

)

 

 

(12,497

)

SG&A Excluding Equity-based Compensation

 

$

414,368

 

 

$

414,617

 

 

$

780,736

 

 

$

774,116

 

As a percentage of gross profit

 

 

75.7

%

 

 

72.6

%

 

 

82.2

%

 

 

76.5

%

 

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