UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended ~~September 30, 2023~~March 31, 2024


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____________ to _______________

Commission file number: 001-37908

CAMPING WORLD HOLDINGS, INC.

(Exact name of registrant as specified in its charter)

Delaware	81-1737145
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

~~250 Parkway~~2 Marriott Drive ~~Suite 270~~

Lincolnshire, IL 60069

(Address of ~~registrant’s~~ principal executive offices) (Zip Code)

Telephone: (847) 808-3000

(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Class A Common Stock,

$0.01 par value per share

CWH

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ⌧ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ⌧ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ⌧	Accelerated filer ☐
Non-accelerated filer ☐	Smaller reporting company ☐
	Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ⌧

As of ~~October 27, 2023,~~April 26, 2024, the registrant had ~~44,780,170~~45,072,058 shares of Class A common stock, 39,466,964 shares of Class B common stock and one share of Class C common stock outstanding.

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Camping World Holdings, Inc.

Quarterly Report on Form 10-Q

For the Quarterly Period Ended ~~September 30, 2023~~March 31, 2024

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		Page


PART I. FINANCIAL INFORMATION

Item 1	Financial Statements (unaudited)	5
	Unaudited Condensed Consolidated Balance Sheets – ~~September 30, 2023,~~March 31, 2024, December 31, ~~2022,~~2023, and ~~September 30, 2022~~March 31, 2023	5
	Unaudited Condensed Consolidated Statements of Operations – Three ~~and Nine~~ Months Ended ~~September 30,~~March 31, 2024 and 2023 ~~and 2022~~	6
	Unaudited Condensed Consolidated Statements of Stockholders’ Equity – Three ~~and Nine~~ Months Ended ~~September 30,~~March 31, 2024 and 2023 ~~and 2022~~	7
	Unaudited Condensed Consolidated Statements of Cash Flows ~~–Nine~~–Three Months Ended ~~September 30,~~March 31, 2024 and 2023 ~~and 2022~~	98
	Notes to Unaudited Condensed Consolidated Financial Statements	1110
Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	3630
Item 3	Quantitative and Qualitative Disclosures About Market Risk	6348
Item 4	Controls and Procedures	6449

PART II. OTHER INFORMATION

Item 1	Legal Proceedings	6449
Item 1A	Risk Factors	6449
Item 2	Unregistered Sales of Equity Securities and Use of Proceeds ~~and Issuer Purchases of Equity Securities~~	6549
Item 3	Defaults Upon Senior Securities	6550
Item 4	Mine Safety Disclosures	6550
Item 5	Other Information	6550
Item 6	Exhibits	6550

Signatures		6852

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BASIS OF PRESENTATION

As used in this Quarterly Report on Form 10-Q (this “Form 10-Q”), unless the context otherwise requires, references to:

●

“we,” “us,” “our,” “CWH,” the “Company,” “Camping World” and similar references refer to Camping World Holdings, Inc., and, unless referenced as “CWH” or otherwise stated, all of its subsidiaries, including CWGS Enterprises, LLC, which we refer to as “CWGS, LLC” and, unless otherwise stated, all of its subsidiaries.

●

"Active Customer" refers to a customer who has transacted with us in any of the eight most recently completed fiscal quarters prior to the date of measurement. Unless otherwise indicated, the date of measurement is March 31, 2024, our most recently completed fiscal quarter.

●

“Annual Report” refers to our Annual Report on Form 10-K for the year ended December 31, ~~2022~~2023 filed with the Securities and Exchange Commission (“SEC”) on February ~~23, 2023.~~26, 2024.

●

“Continuing Equity Owners” refers collectively to ML Acquisition, funds controlled by Crestview Partners II GP, L.P. and the Former Profits Unit Holders and each of their permitted transferees that ~~continue to~~ own common units in CWGS, LLC ~~after the initial public offering (“IPO”) of our stock and the related reorganization transactions (each as discussed in Note 1~~ — ~~Summary of Significant Accounting Policies to our condensed consolidated financial statements included in Part I, Item 1 of this Form 10-Q)~~ and who may redeem at each of their options their common units for, at our election (determined solely by our independent directors within the meaning of the rules of the New York Stock Exchange who are disinterested), cash or ~~newly issued~~newly-issued shares of our Class A common stock. Direct exchanges of common units in CWGS, LLC by the Continuing Equity Owners with CWH for Class A common stock are included in the reference to “redemptions” in relation to common units in CWGS, LLC.

●

“Crestview” refers to Crestview Advisors, L.L.C., a registered investment adviser to private equity funds, including funds affiliated with Crestview Partners II GP, L.P.

●

“CWGS LLC Agreement” refers to CWGS, LLC’s amended and restated limited liability company agreement, as amended.

●

“Former Profits Unit Holders” refers collectively to Brent L. Moody and Karin L. Bell, who are ~~named~~ executive officers; Andris A. Baltins and K. Dillon Schickli, who are members of our Board of Directors, and certain other current and former ~~executive and~~ non-executive employees, former executive officers, and former directors, in each case, who held ~~existing~~ common units inof CWGS, LLC pursuant to CWGS, LLC’s equity incentive plan that was in existence prior to our IPO and ~~who~~ received common units of CWGS, LLC in exchange for their profits units in ~~connection with our IPO.~~CWGS, LLC.

●

“ML Acquisition” refers to ML Acquisition Company, LLC, a Delaware limited liability company, indirectly ~~owned~~controlled by our Chairman and Chief Executive Officer, Marcus A. Lemonis.

●

“ML RV Group” refers to ML RV Group, LLC, a Delaware limited liability company, wholly-owned by our Chairman and Chief Executive Officer, Marcus Lemonis.

●

“RV” refers to recreational vehicles.

●

“Tax Receivable Agreement” refers to the tax receivable agreement that the Company entered into with CWGS, LLC, each of the Continuing Equity Owners and Crestview Partners II GP, L.P. in connection with the Company’s IPO.

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CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Form 10-Q contains forward-looking ~~statements.~~statements within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical facts contained in this Form 10-Q may be forward-looking statements. Statements regarding our future results of operations and financial position; the impact of COVID-19 on our business, results of operations and financial position; the expected impact of the February 2022 Cybersecurity Incident (as defined below); the expected impact of inflation;position, business strategy and plans and objectives of management for future ~~operations;~~operations, including, among others, statements regarding the timeline for and benefits of our restructuring activities; expected new ~~RV dealership~~store location openings and closures, including greenfield locations and acquired locations; the impact of COVID-19 on our business; sufficiency of our sources of liquidity and capital and ~~any~~ potential need for additional ~~financing or~~financing; our stock repurchase program; future capital expenditures, including with respect to our expansion of dealerships through acquisition and construction, and debt service obligations; refinancing, retirement or exchange of outstanding debt; ~~our stock repurchase program; future capital expenditures and debt service obligations;~~ expectations regarding industry trends and consumer behavior and growth; expectations regarding the impact of our inventory on our gross margins; industry trends or forecasts predicted by us or third parties; our ability to capture positive industry trends and pursue growth; our product offerings and strategy; inventory management; volatility in sales and potential impact of miscalculating the demand for our products or our product mix; expectations regarding increase of certain expenses in connection with our growth; cost reduction initiatives and expected cost savings; enhancements of wages and benefits of employees; expectations regarding our pending litigation, and our plans related to dividend payments, are forward-looking statements. In some cases, you can identify forward-looking statements by terms such as ‘‘may,’’ ‘‘will,’’ ‘‘should,’’ ‘‘expects,’’ ‘‘plans,’’ ‘‘anticipates,’’ ‘‘could,’’ ‘‘intends,’’ ‘‘targets,’’ ‘‘projects,’’ ‘‘contemplates,’’ ‘‘believes,’’ ‘‘estimates,’’ ‘‘predicts,’’ ‘‘potential’’ or ‘‘continue’’“anticipate,” “believe,” “can,” “continue,” “could,” “designed,” “estimate,” “expect,” “forecast,” “goal,” “intend,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” or the negative of these terms or other similar expressions. We have based these forward-looking statements largely on our current expectations and projections about future events and trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. These forward-looking statements are subject to a number of risks, uncertainties, and assumptions, including, but not limited to, the following:

●

general economic conditions in our markets, including inflation and interest rates, and ongoing economic and financial uncertainties;

●

the availability of financing to us and our customers;

●

fuel shortages, or high prices for fuel;

●

the well-being, as well as the continued popularity and reputation for quality, of our manufacturers;

●

trends in the RV industry;

●

changes in consumer preferences or our failure to gauge those preferences;

●

our strategic review of our Good Sam business and any potential resulting transaction;

●

competition in the market for services, protection plans, products and resources targeting the RV lifestyle or RV enthusiast;

●

our expansion into new, unfamiliar markets, businesses, or product lines or categories, as well as delays in opening or acquiring new RV dealership locations;

●

unforeseen expenses, difficulties, and delays frequently encountered in connection with expansion through acquisitions;

●

our failure to maintain the strength and value of our brands;

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●

our ability to successfully order and manage our inventory to reflect consumer demand in a volatile market and anticipate changing consumer preferences and buying trends;

●

fluctuations in our same store revenue and whether such revenue will be a meaningful indicator of future performance;

●

the cyclical and seasonal nature of our business;

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●

disruptions to or breaches of our or our third party providers’ information technology systems, including the February 2022 Cybersecurity Incident;

●

our ability to operate and expand our business and to respond to changing business and economic conditions, which depends on the availability of adequate capital;

●

the restrictive covenants imposed by our Senior Secured Credit Facilities and Floor Plan Facility;

●

risks related to COVID-19 and related impacts on our business;

●

our ability to execute and achieve the expected benefits of our restructuring activities or cost cutting initiatives and costs and impairment charges incurred in connection with these activities or initiatives may be materially higher than expected or anticipated;

●

our reliance on our fulfillment and distribution centers for our retail ~~RV furniture distribution,~~ and e-commerce businesses;

●

the impact of ongoing class action lawsuits against us and certain of our officers and directors, as well as any potential future class action litigation;

●

natural disasters, whether or not caused by climate change, unusual weather conditions, epidemic outbreaks, terrorist acts and political events;

●

our dependence on our relationships with third party providers of services, protection plans, products and resources and a disruption of these relationships or of these providers’ operations;

●

any delays, new or increased tariffs, increased cost or quality control deficiencies in the importation of our products manufactured abroad;

●

whether third party lending institutions and insurance companies will continue to provide financing for RV purchases;

●

our ability to retain senior executives and attract and retain other qualified employees;

●

risks associated with leasing substantial amounts of space, including our inability to maintain the leases for our RV dealership locations or locate alternative sites for our stores in our target markets and on terms that are acceptable to us;

●

our private brand offerings exposing us to various risks;

●

our business being subject to numerous federal, state and local regulations;

●

changes in government policies and legislation;

●

our failure to comply with certain environmental regulations;

●

risks related to climate change and other environmental, social, and governance matters;

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●

risks related to a failure in our e-commerce operations, security breaches and cybersecurity risks;

●

our inability to enforce our intellectual property rights and accusations of our infringement on the intellectual property rights of third parties;

●

our inability to maintain or upgrade our information technology systems or our inability to convert to alternate systems in an efficient and timely manner;

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●

risk of product liability claims if people or property are harmed by the products we sell and other litigation risks;

●

risks related to our pending litigation;

●

risks associated with our private brand offerings;

●

possibility of future asset impairment charges for goodwill, intangible assets or other long-lived assets;

●

potential litigation relating to products we sell or sold;

●

Marcus Lemonis, through his beneficial ownership of our shares directly or indirectly held by ML Acquisition Company, LLC and ML RV Group, LLC, has substantial control over us including matters requiring approval by our stockholders;

●

the exemptions from certain corporate governance requirements that we qualify for, and rely on, due to the fact that we are a ‘‘controlled company’’ within the meaning of the New York Stock Exchange, or NYSE, listing requirements;

●

whether we are able to realize any tax benefits that may arise from our organizational structure and any redemptions of CWGS Enterprises, LLC common units for cash or stock;

●

other risks relating to our organizational structure and to ownership of shares of our Class A common stock; and

●

the other factors set forth under ‘‘Risk Factors’’ in Item 1A of Part I of our Annual Report, in Item 1A of Part II of this Form 10-Q, and in our other filings with the SEC.

These risks may cause our actual results, performance or achievements to differ materially and adversely from those expressed or implied by the forward-looking statements.

Any forward-looking statements made herein speak only as of the date of this Form 10-Q, and you should not rely on forward-looking statements as predictions of future events. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that the future effects, results, performance, or achievements reflected in the forward-looking statements will be achieved or occur. We undertake no obligation to update any of these forward-looking statements for any reason after the date of this Form 10-Q or to conform these statements to actual results or revised expectations.

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Part I – FINANCIAL INFORMATION

Item 1. Financial Statements

Camping World Holdings, Inc. and Subsidiaries

Unaudited Condensed Consolidated Balance Sheets

(In Thousands Except Per Share Amounts)


	September 30,		December 31,		September 30,		March 31,		December 31,		March 31,
	2023		2022		2022		2024		2023		2023
Assets
Current assets:
Cash and cash equivalents	$	53,318	$	130,131	$	148,235	$	29,718	$	39,647	$	72,828
Contracts in transit		100,831		50,349		87,487		154,231		60,229		104,148
Accounts receivable, net		135,832		112,411		117,428		100,246		128,070		109,105
Inventories		1,869,042		2,123,858		1,900,127		2,077,592		2,042,949		1,980,106
Prepaid expenses and other assets		38,979		66,913		46,869		68,833		48,353		58,761
Assets held for sale		4,635		—		—		6,276		29,864		13,971
Total current assets		2,202,637		2,483,662		2,300,146		2,436,896		2,349,112		2,338,919

Property and equipment, net		841,548		758,281		728,208		878,956		834,426		751,287
Operating lease assets		736,246		742,306		719,656		768,903		740,052		729,958
Deferred tax assets, net		142,187		143,226		178,808		153,716		157,326		145,413
Intangible assets, net		14,444		20,945		21,819		12,998		13,717		15,381
Goodwill		688,139		622,423		533,217		735,680		711,222		622,545
Other assets		32,058		29,304		29,532		36,013		39,829		27,010
Total assets	$	4,657,259	$	4,800,147	$	4,511,386	$	5,023,162	$	4,845,684	$	4,630,513
Liabilities and stockholders' equity
Current liabilities:
Accounts payable	$	200,433	$	127,691	$	187,613	$	205,006	$	133,516	$	185,652
Accrued liabilities		171,956		147,833		252,644		148,674		149,096		172,428
Deferred revenues		99,813		95,695		101,917		95,854		92,366		94,166
Current portion of operating lease liabilities		62,987		61,745		61,001		60,663		63,695		61,421
Current portion of finance lease liabilities		5,563		10,244		10,397		19,014		17,133		5,590
Current portion of Tax Receivable Agreement liability		13,999		10,873		11,686		12,943		12,943		10,935
Current portion of long-term debt		23,257		25,229		15,827		25,651		22,121		26,969
Notes payable – floor plan, net		1,017,543		1,319,941		899,568		1,414,696		1,371,145		1,042,099
Other current liabilities		79,381		73,076		83,959		72,783		68,536		77,924
Liabilities related to assets held for sale		4,022		—		—		—		17,288		7,650
Total current liabilities		1,678,954		1,872,327		1,624,612		2,055,284		1,947,839		1,684,834

Operating lease liabilities, net of current portion		759,952		764,835		743,914		796,770		763,958		753,451
Finance lease liabilities, net of current portion		99,060		94,216		95,496		136,284		97,751		100,701
Tax Receivable Agreement liability, net of current portion		149,134		159,743		159,790		149,866		149,866		165,054
Revolving line of credit		20,885		20,885		20,885		31,885		20,885		20,885
Long-term debt, net of current portion		1,522,495		1,484,416		1,368,380		1,545,165		1,498,958		1,525,304
Deferred revenues		70,214		70,247		73,294		65,970		66,780		68,690
Other long-term liabilities		85,710		85,792		87,517		89,528		85,440		85,841
Total liabilities		4,386,404		4,552,461		4,173,888		4,870,752		4,631,477		4,404,760
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, 47,571, and 47,855 shares issued, respectively; 44,780, 42,441, and 42,129 shares outstanding, respectively		496		476		476
Class B common stock, par value $0.0001 per share – 75,000 shares authorized; 39,466, 41,466, and 69,066 shares issued, respectively; 39,466, 41,466, and 41,466 shares outstanding, respectively		4		4		4
Class A common stock, par value $0.01 per share – 250,000 shares authorized; 49,571, 49,571 and 49,571 shares issued, respectively; 45,072, 45,020 and 44,467 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		108,942		106,051		117,151		98,828		98,280		114,017
Treasury stock, at cost; 4,791, 5,130, and 5,442 shares, respectively		(167,847)		(179,732)		(190,658)
Treasury stock, at cost; 4,499, 4,551, and 5,104 shares, respectively								(157,631)		(159,440)		(178,832)
Retained earnings		207,657		221,031		280,772		157,303		185,244		196,409
Total stockholders' equity attributable to Camping World Holdings, Inc.		149,252		147,830		207,745		99,000		124,584		132,094
Non-controlling interests		121,603		99,856		129,753		53,410		89,623		93,659
Total stockholders' equity		270,855		247,686		337,498		152,410		214,207		225,753
Total liabilities and stockholders' equity	$	4,657,259	$	4,800,147	$	4,511,386	$	5,023,162	$	4,845,684	$	4,630,513

See accompanying Notes to Unaudited Condensed Consolidated Financial Statements

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Camping World Holdings, Inc. and Subsidiaries

Unaudited Condensed Consolidated Statements of Operations

(In Thousands Except Per Share Amounts)


	Three Months Ended				Nine Months Ended				Three Months Ended
	September 30,				September 30,				March 31,
	2023		2022		2023		2022		2024		2023
Revenue:
Good Sam Services and Plans	$	49,889	$	50,352	$	147,294	$	144,504	$	45,681	$	46,367
RV and Outdoor Retail
New vehicles		679,207		834,112		2,126,862		2,746,323		656,086		646,752
Used vehicles		590,227		525,988		1,657,935		1,484,978		337,685		444,746
Products, service and other		235,609		268,940		691,030		761,914		177,894		207,661
Finance and insurance, net		163,630		165,136		460,336		513,921		135,454		129,772
Good Sam Club		11,051		11,154		33,757		35,070		11,217		11,582
Subtotal		1,679,724		1,805,330		4,969,920		5,542,206		1,318,336		1,440,513
Total revenue		1,729,613		1,855,682		5,117,214		5,686,710		1,364,017		1,486,880
Costs applicable to revenue (exclusive of depreciation and amortization shown separately below):
Good Sam Services and Plans		10,021		18,871		43,844		54,532		15,183		16,152
RV and Outdoor Retail
New vehicles		576,480		675,119		1,811,398		2,171,660		565,039		557,542
Used vehicles		478,595		398,882		1,300,961		1,115,876		278,533		341,947
Products, service and other		139,976		167,298		422,037		467,680		101,675		129,018
Good Sam Club		1,455		1,824		3,766		6,279		1,190		1,201
Subtotal		1,196,506		1,243,123		3,538,162		3,761,495		946,437		1,029,708
Total costs applicable to revenue		1,206,527		1,261,994		3,582,006		3,816,027		961,620		1,045,860
Operating expenses:
Selling, general, and administrative		415,288		419,102		1,201,901		1,245,540		371,473		365,726
Depreciation and amortization		17,619		18,207		49,462		61,369		19,290		14,637
Long-lived asset impairment		1,747		887		9,269		3,505		5,827		7,045
Lease termination		375		—		375		1,122
Loss (gain) on sale or disposal of assets		131		(40)		(5,001)		390		1,585		(4,987)
Total operating expenses		435,160		438,156		1,256,006		1,311,926		398,175		382,421
Income from operations		87,926		155,532		279,202		558,757		4,222		58,599
Other expense:
Floor plan interest expense		(19,816)		(9,484)		(61,298)		(24,483)		(27,882)		(20,810)
Other interest expense, net		(35,242)		(20,526)		(99,873)		(49,762)		(36,094)		(31,113)
Tax Receivable Agreement liability adjustment		1,680		—		1,680		—
Other income (expense), net		24		(177)		(1,659)		(472)
Other expense, net										(94)		(1,500)
Total other expense		(53,354)		(30,187)		(161,150)		(74,717)		(64,070)		(53,423)
Income before income taxes		34,572		125,345		118,052		484,040
Income tax expense		(3,679)		(22,397)		(17,533)		(75,808)
Net income		30,893		102,948		100,519		408,232
Less: net income attributable to non-controlling interests		(14,932)		(61,822)		(52,686)		(238,065)
Net income attributable to Camping World Holdings, Inc.	$	15,961	$	41,126	$	47,833	$	170,167
(Loss) income before income taxes										(59,848)		5,176
Income tax benefit (expense)										9,042		(273)
Net (loss) income										(50,806)		4,903
Less: net (loss) income attributable to non-controlling interests										28,499		(1,734)
Net (loss) income attributable to Camping World Holdings, Inc.									$	(22,307)	$	3,169

Earnings per share of Class A common stock:
(Loss) earnings per share of Class A common stock:
Basic	$	0.36	$	0.98	$	1.07	$	4.01	$	(0.50)	$	0.07
Diluted	$	0.32	$	0.97	$	1.03	$	3.99	$	(0.51)	$	0.05
Weighted average shares of Class A common stock outstanding:
Basic		44,666		41,985		44,538		42,419		45,047		44,455
Diluted		85,180		42,505		84,917		42,947		85,092		84,717

See accompanying Notes to Unaudited Condensed Consolidated Financial Statements

Table of Contents

Camping World Holdings, Inc. and Subsidiaries

Unaudited Condensed Consolidated Statements of Stockholders' Equity

(In Thousands)

Additional

Non-

Class A Common Stock

Class B Common Stock

Class C Common Stock

Paid-In

Treasury Stock

Retained

Controlling


Shares

Amounts

Shares

Amounts

Shares

Amounts

Capital

Shares

Amounts

Earnings

Interest

Total
Balance at December 31, 2022

47,571

$
476

41,466

$
4

—

$
—

$
106,051

(5,130)

$
(179,732)

$
221,031

$
99,856

$
247,686
Equity-based compensation

—

—

—

—

—

—

3,345

—

—

—

3,013

6,358
Exercise of stock options

—

—

—

—

—

—

(25)

2

66

—

—

41
Non-controlling interest adjustment for capital contribution of proceeds from the exercise of stock options

—

—

—

—

—

—

(17)

—

—

—

17

—
Vesting of restricted stock units

—

—

—

—

—

—

(1,104)

37

1,300

—

(196)

—
Repurchases of Class A common stock for withholding taxes on vested RSUs

—

—

—

—

—

—

128

(13)

(466)

—

—

(338)
Redemption of LLC common units for Class A common stock

2,000

20

(2,000)

—

—

—

9,673

—

—

—

(4,739)

4,954
Distributions to holders of LLC common units

—

—

—

—

—

—

—

—

—

—

(6,046)

(6,046)
Dividends⁽¹⁾

—

—

—

—

—

—

—

—

—

(27,791)

—

(27,791)
Establishment of liabilities under the Tax Receivable Agreement and related changes to deferred tax assets associated with that liability

—

—

—

—

—

—

(4,014)

—

—

—

—

(4,014)
Non-controlling interest adjustment

—

—

—

—

—

—

(20)

—

—

—

20

—
Net income

—

—

—

—

—

—

—

—

—

3,169

1,734

4,903
Balance at March 31, 2023

49,571

$
496

39,466

$
4

—

$
—

$
114,017

(5,104)

$
(178,832)

$
196,409

$
93,659

$
225,753
Equity-based compensation

—

—

—

—

—

—

3,418

—

—

—

3,074

6,492
Exercise of stock options

—

—

—

—

—

—

(101)

8

266

—

—

165
Non-controlling interest adjustment for capital contribution of proceeds from the exercise of stock options

—

—

—

—

—

—

(70)

—

—

—

70

—
Vesting of restricted stock units

—

—

—

—

—

—

(1,965)

62

2,157

—

(192)

—
Repurchases of Class A common stock for withholding taxes on vested RSUs

—

—

—

—

—

—

87

(12)

(374)

—

—

(287)
Distributions to holders of LLC common units

—

—

—

—

—

—

—

—

—

—

(10,784)

(10,784)
Dividends⁽¹⁾

—

—

—

—

—

—

—

—

—

(27,819)

—

(27,819)
Non-controlling interest adjustment

—

—

—

—

—

—

458

—

—

—

(458)

—
Net income

—

—

—

—

—

—

—

—

—

28,703

36,020

64,723
Balance at June 30, 2023

49,571

$
496

39,466

$
4

—

$
—

$
115,844

(5,046)

$
(176,783)

$
197,293

$
121,389

$
258,243
Equity-based compensation

—

—

—

—

—

—

2,882

—

—

—

2,584

5,466
Exercise of stock options

—

—

—

—

—

—

(68)

5

181

—

—

113
Non-controlling interest adjustment for capital contribution of proceeds from the exercise of stock options

—

—

—

—

—

—

(46)

—

—

—

46

—
Vesting of restricted stock units

—

—

—

—

—

—

(11,313)

380

13,302

—

(1,989)

—
Repurchases of Class A common stock for withholding taxes on vested RSUs

—

—

—

—

—

—

1,089

(130)

(4,547)

—

—

(3,458)
Distributions to holders of LLC common units

—

—

—

—

—

—

—

—

—

—

(14,763)

(14,763)
Dividends⁽¹⁾

—

—

—

—

—

—

—

—

—

(5,597)

—

(5,597)
Establishment of liabilities under the Tax Receivable Agreement and related changes to deferred tax assets associated with that liability

—

—

—

—

—

—

(42)

—

—

—

—

(42)
Non-controlling interest adjustment

—

—

—

—

—

—

596

—

—

—

(596)

—
Net income

—

—

—

—

—

—

—

—

—

15,961

14,932

30,893
Balance at September 30, 2023

49,571

$
496

39,466

$
4

—

$
—

$
108,942

(4,791)

$
(167,847)

$
207,657

$
121,603

$
270,855

~~(1)~~

~~The Company declared dividends per share of Class A common stock of $0.625, $0.625 and $0.125 for the three months ended March 31, 2023, June 30, 2023 and September 30, 2023, respectively.~~


										Additional							Non-
	Class A Common Stock			Class B Common Stock			Class C Common Stock			Paid-In		Treasury Stock			Retained		Controlling
	Shares	Amounts		Shares	Amounts		Shares	Amounts		Capital		Shares	Amounts		Earnings		Interest		Total
Balance at December 31, 2023	49,571	$	496	39,466	$	4	—	$	—	$	98,280	(4,551)	$	(159,440)	$	185,244	$	89,623	$	214,207
Equity-based compensation	—		—	—		—	—		—		2,751	—		—		—		2,446		5,197
Exercise of stock options	—		—	—		—	—		—		(30)	2		81		—		—		51
Non-controlling interest adjustment for capital contribution of proceeds from the exercise of stock options	—		—	—		—	—		—		(22)	—		—		—		22		—
Vesting of restricted stock units	—		—	—		—	—		—		(2,234)	74		2,595		—		(361)		—
Repurchases of Class A common stock for withholding taxes on vested RSUs	—		—	—		—	—		—		209	(24)		(867)		—		—		(658)
Distributions to holders of LLC common units	—		—	—		—	—		—		—	—		—		—		(9,947)		(9,947)
Dividends⁽¹⁾	—		—	—		—	—		—		—	—		—		(5,634)		—		(5,634)
Non-controlling interest adjustment	—		—	—		—	—		—		(126)	—		—		—		126		—
Net loss	—		—	—		—	—		—		—	—		—		(22,307)		(28,499)		(50,806)
Balance at March 31, 2024	49,571	$	496	39,466	$	4	—	$	—	$	98,828	(4,499)	$	(157,631)	$	157,303	$	53,410	$	152,410

~~Table of Contents~~

Camping World Holdings, Inc. and Subsidiaries

Unaudited Condensed Consolidated Statements of Stockholders' Equity

(In Thousands)


										Additional							Non-													Additional							Non-
	Class A Common Stock			Class B Common Stock			Class C Common Stock			Paid-In		Treasury Stock			Retained		Controlling				Class A Common Stock			Class B Common Stock			Class C Common Stock			Paid-In		Treasury Stock			Retained		Controlling
	Shares	Amounts		Shares	Amounts		Shares	Amounts		Capital		Shares	Amounts		Earnings		Interest		Total		Shares	Amounts		Shares	Amounts		Shares	Amounts		Capital		Shares	Amounts		Earnings		Interest		Total
Balance at December 31, 2021	47,521	$	475	41,466	$	4	—		—	$	98,113	(3,390)		(130,006)	$	189,471	$	75,837	$	233,894
Balance at December 31, 2022																					47,571	$	476	41,466	$	4	—		—	$	106,051	(5,130)		(179,732)	$	221,031	$	99,856	$	247,686
Equity-based compensation	—		—	—		—	—		—		4,572	—		—		—		5,735		10,307	—		—	—		—	—		—		3,345	—		—		—		3,013		6,358
Exercise of stock options	—		—	—		—	—		—		(166)	11		397		—		—		231	—		—	—		—	—		—		(25)	2		66		—		—		41
Non-controlling interest adjustment for capital contribution of proceeds from the exercise of stock options	—		—	—		—	—		—		(111)	—		—		—		111		—	—		—	—		—	—		—		(17)	—		—		—		17		—
Vesting of restricted stock units	—		—	—		—	—		—		(4,067)	130		4,749		—		(682)		—	—		—	—		—	—		—		(1,104)	37		1,300		—		(196)		—
Repurchases of Class A common stock for withholding taxes on vested RSUs	—		—	—		—	—		—		243	(41)		(1,481)		—		—		(1,238)	—		—	—		—	—		—		128	(13)		(466)		—		—		(338)
Repurchases of Class A common stock to treasury stock											28,398	(2,593)		(79,757)				(37,774)		(89,133)
Redemption of LLC common units for Class A common stock	50		1	—		—	—		—		416	—		—		—		(45)		372	2,000		20	(2,000)		—	—		—		9,673	—		—		—		(4,739)		4,954
Distributions to holders of LLC common units	—		—	—		—	—		—		—	—		—		—		(24,836)		(24,836)	—		—	—		—	—		—		—	—		—		—		(6,046)		(6,046)
Dividends⁽²⁾	—		—	—		—	—		—		—	—		—		(26,427)		—		(26,427)
Dividends⁽¹⁾																					—		—	—		—	—		—		—	—		—		(27,791)		—		(27,791)
Establishment of liabilities under the Tax Receivable Agreement and related changes to deferred tax assets associated with that liability	—		—	—		—	—		—		(299)	—		—		—		—		(299)	—		—	—		—	—		—		(4,014)	—		—		—		—		(4,014)
Non-controlling interest adjustment	—		—	—		—	—		—		(1,028)	—		—		—		1,028		—	—		—	—		—	—		—		(20)	—		—		—		20		—
Net income	—		—	—		—	—		—		—	—		—		44,730		62,569		107,299	—		—	—		—	—		—		—	—		—		3,169		1,734		4,903
Balance at March 31, 2022	47,571	$	476	41,466	$	4	—	$	—	$	126,071	(5,883)	$	(206,098)	$	207,774	$	81,943	$	210,170
Equity-based compensation	—		—	—		—	—		—		4,467	—		—		—		4,500		8,967
Exercise of stock options	—		—	—		—	—		—		(25)	2		66		—		—		41
Non-controlling interest adjustment for capital contribution of proceeds from the exercise of stock options	—		—	—		—	—		—		(18)	—		—		—		18		—
Vesting of restricted stock units	—		—	—		—	—		—		(3,562)	108		3,798		—		(236)		—
Repurchases of Class A common stock for withholding taxes on vested RSUs	—		—	—		—	—		—		48	(9)		(327)		—		—		(279)
Distributions to holders of LLC common units	—		—	—		—	—		—		—	—		—		—		(90,842)		(90,842)
Dividends⁽²⁾	—		—	—		—	—		—		—	—		—		(26,111)		—		(26,111)
Non-controlling interest adjustment	—		—	—		—	—		—		527	—		—		—		(527)		—
Net income	—		—	—		—	—		—		—	—		—		84,311		113,674		197,985
Balance at June 30, 2022	47,571	$	476	41,466	$	4	—	$	—	$	127,508	(5,782)	$	(202,561)	$	265,974	$	108,530	$	299,931
Equity-based compensation	—		—	—		—	—		—		3,394	—		—		—		3,398		6,792
Exercise of stock options	—		—	—		—	—		—		(26)	2		71		—		—		45
Non-controlling interest adjustment for capital contribution of proceeds from the exercise of stock options	—		—	—		—	—		—		(20)	—		—		—		20		—
Vesting of restricted stock units	—		—	—		—	—		—		(14,713)	503		17,618		—		(2,905)		—
Repurchases of Class A common stock for withholding taxes on vested RSUs	—		—	—		—	—		—		829	(165)		(5,786)		—		—		(4,957)
Distributions to holders of LLC common units	—		—	—		—	—		—		—	—		—		—		(40,933)		(40,933)
Dividends⁽²⁾	—		—	—		—	—		—		—	—		—		(26,328)		—		(26,328)
Non-controlling interest adjustment	—		—	—		—	—		—		179	—		—		—		(179)		—
Net income	—		—	—		—	—		—		—	—		—		41,126		61,822		102,948
Balance at September 30, 2022	47,571	$	476	41,466	$	4	—	$	—	$	117,151	(5,442)	$	(190,658)	$	280,772	$	129,753	$	337,498
Balance at March 31, 2023																					49,571	$	496	39,466	$	4	—	$	—	$	114,017	(5,104)	$	(178,832)	$	196,409	$	93,659	$	225,753

~~(2)~~(1)

The Company declared dividends per share of Class A common stock of $0.125 and $0.625 for ~~each of~~ the three months ended March 31, ~~2022, June 30, 2022~~2024 and ~~September 30, 2022,~~2023, respectively.

See accompanying Notes to Unaudited Condensed Consolidated Financial Statements

Table of Contents

Camping World Holdings, Inc. and Subsidiaries

Unaudited Condensed Consolidated Statements of Cash Flows

(In Thousands)


	Nine Months Ended September 30,				Three Months Ended March 31,
	2023		2022		2024		2023
Operating activities
Net income	$	100,519	$	408,232
Net (loss) income					$	(50,806)	$	4,903

Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		49,462		61,369		19,290		14,637
Equity-based compensation		18,316		27,434		5,197		6,358
Loss on lease termination		375		1,122
Long-lived asset impairment		9,269		3,505		5,827		7,045
(Gain) loss on sale or disposal of assets		(5,001)		390
Loss (gain) on sale or disposal of assets						1,585		(4,987)
Provision for losses on accounts receivable		(533)		168		47		(414)
Non-cash lease expense		45,593		44,757		14,037		15,039
Accretion of original debt issuance discount		1,628		1,650		584		503
Non-cash interest		2,139		1,470		746		658
Deferred income taxes		7,071		10,245		3,610		4,126
Tax Receivable Agreement liability adjustment		(1,680)		—
Change in assets and liabilities, net of acquisitions:
Receivables and contracts in transit		(72,681)		(45,766)		(66,222)		(50,078)
Inventories		339,187		(77,388)		6,026		143,675
Prepaid expenses and other assets		25,703		16,876		(20,713)		7,961
Accounts payable and other accrued expenses		72,437		112,167		25,194		64,699
Payment pursuant to Tax Receivable Agreement		(10,937)		(11,322)
Deferred revenue		4,084		10,719		2,678		(3,086)
Operating lease liabilities		(44,932)		(47,388)		(14,440)		(14,609)
Other, net		3,254		5,679		(622)		2,787
Net cash provided by operating activities		543,273		523,919
Net cash (used in) provided by operating activities						(67,982)		199,217

Investing activities
Purchases of property and equipment		(95,641)		(118,445)		(25,927)		(25,314)
Proceeds from sale of property and equipment		2,723		1,105		143		183
Purchases of real property		(64,302)		(41,696)		(1,243)		(18,236)
Proceeds from the sale of real property		35,603		6,809		23,853		22,703
Purchases of businesses, net of cash acquired		(150,475)		(83,227)		(58,800)		—
Purchases of and loans to other investments		(3,444)		(3,000)
Purchases of intangible assets		(1,999)		(851)		(119)		(23)
Proceeds from sale of intangible assets						2,595		—
Net cash used in investing activities	$	(277,535)	$	(239,305)	$	(59,498)	$	(20,687)

Table of Contents

Camping World Holdings, Inc. and Subsidiaries

Unaudited Condensed Consolidated Statements of Cash Flows

(In Thousands)


	Nine Months Ended September 30,				Three Months Ended March 31,
	2023		2022		2024		2023
Financing activities
Proceeds from long-term debt	$	59,227	$	—	$	55,624	$	59,227
Payments on long-term debt		(26,556)		(11,869)		(23,406)		(9,058)
Net payments on notes payable – floor plan, net		(273,478)		(99,802)
Proceeds from landlord funded construction on finance leases		—		6,028
Net proceeds (payments) on notes payable – floor plan, net						93,273		(249,822)
Borrowings on revolving line of credit						43,000		—
Payments on revolving line of credit						(32,000)		—
Payments on finance leases		(4,160)		(4,541)		(1,828)		(1,233)
Proceeds from sale-leaseback arrangement		—		27,951
Payments on sale-leaseback arrangement		(139)		(87)		(48)		(46)
Payment of debt issuance costs		(881)		—		(876)		(767)
Dividends on Class A common stock		(61,207)		(78,866)		(5,634)		(27,791)
Proceeds from exercise of stock options		319		317		51		41
RSU shares withheld for tax		(4,083)		(6,474)		(658)		(338)
Repurchases of Class A common stock to treasury stock		—		(79,757)
Distributions to holders of LLC common units		(31,593)		(156,611)		(9,947)		(6,046)
Net cash used in financing activities		(342,551)		(403,711)
Net cash provided by (used in) financing activities						117,551		(235,833)

Decrease in cash and cash equivalents		(76,813)		(119,097)		(9,929)		(57,303)
Cash and cash equivalents at beginning of the period		130,131		267,332		39,647		130,131
Cash and cash equivalents at end of the period	$	53,318	$	148,235	$	29,718	$	72,828

See accompanying Notes to Unaudited Condensed Consolidated Financial Statements

109

Table of Contents

Camping World Holdings, Inc. and Subsidiaries

Notes to Unaudited Condensed Consolidated Financial Statements

~~September 30, 2023~~March 31, 2024

1. Summary of Significant Accounting Policies

Principles of Consolidation and Basis of Presentation

The condensed consolidated financial statements include the accounts of Camping World Holdings, Inc. and its subsidiaries, and are presented in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and pursuant to the rules and regulations of the SEC. Accordingly, these interim financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair statement of the results of operations, financial position and cash flows for the periods presented have been reflected. All intercompany accounts and transactions of the Company and its subsidiaries have been eliminated in consolidation.

The condensed consolidated financial statements as of and for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2024 and 2023 ~~and 2022~~ are unaudited. The condensed consolidated balance sheet as of December 31, ~~2022~~2023 has been derived from the audited financial statements at that date but does not include all of the disclosures required by GAAP. These interim condensed consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, ~~2022~~2023 filed with the SEC on February ~~23, 2023.~~26, 2024. Operating results for interim periods are not necessarily indicative of the results that may be expected for the full year.

CWH has sole voting power in and control of the management of CWGS, LLC (see Note 15 — Stockholders’ Equity). CWH’s position as sole managing member of CWGS, LLC includes periods where CWH held a minority economic interest in CWGS, LLC. As of ~~September 30, 2023,~~March 31, 2024, December 31, ~~2022,~~2023, and ~~September 30, 2022,~~March 31, 2023, CWH owned ~~52.8%~~53.0%, ~~50.2%~~52.9%, and ~~50.1%~~52.6%, respectively, of CWGS, LLC. Accordingly, the Company consolidates the financial results of CWGS, LLC and reports a non-controlling interest in its condensed consolidated financial statements.

The Company does not have any components of other comprehensive income recorded within its condensed consolidated financial statements, and, therefore, does not separately present a statement of comprehensive income in its condensed consolidated financial statements.

~~Cybersecurity Incident~~

The Company relies on the integrity, security and successful functioning of its information technology systems and network infrastructure (collectively, “IT Systems”) across its operations. In February 2022, the Company announced the occurrence of a cybersecurity incident that resulted in the encryption of certain IT Systems and theft of certain data and information (the “Cybersecurity Incident”). The Cybersecurity Incident resulted in the Company’s temporary inability to access certain of its IT Systems, caused by the disabling of some of its IT Systems by the threat actor and the Company temporarily taking certain other IT Systems offline as a precautionary measure. The Company engaged leading outside forensics and cybersecurity experts, launched containment and remediation efforts and a forensic investigation, which was completed as of September 30, 2022. The Company is continuing to take measures to enhance its IT Systems. Through its investigation, the Company identified that personal information of approximately 30,000 individuals was acquired without authorization, including, depending on the individual, dates of birth, Social Security numbers, and driver’s license numbers. The Company complied with notification obligations in accordance with relevant law and cooperated with law enforcement.

The Company has incurred costs related to investigation, containment, and remediation and expects to continue to incur incremental costs for the remediation of the Cybersecurity Incident, including legal and other professional fees, and investments to enhance the security of its IT Systems. Other actual and potential consequences include, but are not limited to, negative publicity, reputational damage, lost trust with customers,

~~Table of Contents~~

and regulatory enforcement action. In December 2022, three putative class action complaints were filed against the Company and certain of its subsidiaries arising out of the Cybersecurity Incident. On March 30, 2023, the Company and plaintiffs reached an agreement in principle to resolve the putative class action complaints for an immaterial amount subject to the execution of a settlement agreement and court approval. On April 11, 2023, for purposes of effectuating the settlement reached with Company, the original complaints were dismissed and refiled as a combined state court complaint. On June 15, 2023, the parties executed the settlement agreement. On June 28, 2023, the plaintiffs’ attorneys in the combined state court case filed a motion for preliminary approval of the settlement agreement. On August 10, 2023 the court held a hearing on plaintiffs’ motion for preliminary approval of the settlement agreement hearing at which time the court requested additional information. On September 28, 2023, the court denied plaintiffs’ motion for preliminary approval of the settlement agreement without prejudice. The next hearing date is December 5, 2023.

The Company does not expect that the Cybersecurity Incident will cause future disruptions to its business or that the Cybersecurity Incident, including anticipated costs associated with pending litigation, will have a future material impact on its business, results of operations or financial condition.

Seasonality

The Company has experienced, and expects to continue to experience, variability in revenue, net income, and cash flows as a result of annual seasonality in its business. Because RVs are used primarily by vacationers and campers, demand for services, protection plans, products, and resources generally declines during the winter season, while sales and profits are generally highest during the spring and summer months. In addition, unusually severe weather conditions in some geographic areas may impact demand.

The Company generates a disproportionately higher amount of its annual revenue in its second and third fiscal quarters, which include the spring and summer months. The Company incurs additional expenses in the second and third fiscal quarters due to higher sale volumes, increased staffing in its ~~RV dealership~~store locations and program costs. If, for any reason, the Company miscalculates the demand for its products or its product mix during the second and third fiscal quarters, its sales in these quarters could decline, resulting in higher labor costs as a percentage of gross profit, lower margins and excess inventory, which could cause the Company’s annual results of operations to suffer and its stock price to decline.

Additionally, selling, general, and administrative (“SG&A”) expenses as a percentage of gross profit tend to be higher in the first and fourth quarters due to the seasonality of the Company’s business.

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Due to the Company’s seasonality, the possible adverse impact from other risks associated with its business, including atypical weather, consumer spending levels and general business conditions, is potentially greater if any such risks occur during the Company’s peak sales seasons.

Recently Adopted Accounting Pronouncements

In ~~June 2022,~~March 2023, the ~~FASB~~Financial Accounting Standards Board (“FASB”) issued ~~ASU 2022-03, Fair Value Measurement~~Accounting Standards Update (“ASU”) 2023-01, Leases (Topic ~~820)~~842): ~~Fair Value Measurement~~Common Control Arrangements. For public companies, this standard requires the amortization of ~~Equity Securities Subject~~leasehold improvements associated with common control leases over the useful life to ~~Contractual Sale Restrictions. This standard clarifies~~ the guidance in ASC 820 on the fair value measurement of an equity security that is subject to a contractual sale restriction that prohibits the sale of an equity security, and requires specific disclosures related to such an equity security. The standard should be applied prospectively.common control group. The standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2023, with early adoption permitted. The ~~Company early adopted ASU 2021-08 as of January 1, 2023 and the adoption did not materially impact its condensed consolidated financial statements.~~

In September 2022, the FASB issued ASU 2022-04, Liabilities―Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations. This standard requires a buyer in a supplier finance program to disclose qualitative and quantitative information about the program to allow users to understand the program’s nature, activity during the period, changes from period to period and potential magnitude. Most of the disclosures are required only in annual reporting periods, except for the amount of obligation outstanding to be disclosed at each interim reporting period. The standard should be applied retrospectively to each period in which a balance sheet is presented, except for the amendment on rollforward information, which should be applied prospectively. The standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022, except for the disclosure of rollforward

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information, which is effective for fiscal years beginning after December 15, 2023, with early adoption permitted. As the Company already included many of the required disclosures in the financial statement footnotes prior to issuance, theCompany’s adoption of the ~~required~~ provisions of this ASU as of January 1, 2023 did not materially impact on the Company’s condensed consolidated financial statements.

In August 2023, the FASB issued ASU 2023-05, Business Combinations―Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement. This ASU requires joint ventures to recognize a new basis of accounting for contributed net assets as of the formation date, to measure the contributed identifiable net assets at fair value on the formation date using the business combination guidance in ASC 805-20 (with certain exceptions) regardless of whether an investor contributes a business, to measure the net assets’ fair value based on 100% of the joint venture’s equity immediately following formation, to record goodwill (or an equity adjustment, if negative) for the difference between the fair value of the joint venture’s equity and its net assets and to provide disclosures about the nature and financial effect of the formation transaction. The standard is effective prospectively for all joint venture formations with a formation date on or after January 1, 2025, with early adoption permitted. Additionally, for joint ventures that were formed before January 1, 2025, the Company may elect to apply the standard retrospectively. The Company’s early adoption of the provisions of this ASU as of January 1, 2023 did not materially impact on the Company’s condensed consolidated financial statements.

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. This ASU requires public entities to disclose significant segment expenses that are regularly provided to the chief operating decision maker (CODM) and included within each reported measure of segment profit or loss. The title and position of the CODM must be disclosed with an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources. If the CODM uses more than one measure of a segment’s profit or loss in assessing segment performance, and deciding how to allocate resources, an entity may report one or more of those additional measures of segment profit. Additionally, public entities must disclose an amount for “other segment items” by reportable segment representing the difference between segment revenue less the significant expenses disclosed and each reported measure of segment profit or loss, and a description of its composition. Moreover, all annual disclosures about a reportable segment's profit or loss and assets are to be presented in interim periods. The standard should be applied retrospectively to all prior periods presented in the financial statements. Upon transition, the segment expense categories and amounts disclosed in the prior periods should be based on the significant expense categories identified and disclosed in the period of adoption. The standard is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company adopted the provisions of this ASU as of January 1, 2024, with respect to the annual disclosures beginning with the year ending December 31, 2024 and interim disclosures beginning with the three months ending March 31, 2025, including the presentation of the comparable prior periods. The adoption of this ASU will result in additional segment reporting disclosures and does not otherwise have a material impact on the Company’s condensed consolidated financial statements.

Recently Issued Accounting Pronouncements

In ~~March~~December 2023, the FASB issued ASU ~~2023-01, Leases~~2023-09, Income Taxes (Topic ~~842)~~740): ~~Common Control Arrangements. For~~Improvements to Income Tax Disclosures. This ASU requires that public ~~companies, this standard requires~~business entities on an annual basis disclose (1) consistent categories and greater disaggregation of information in the ~~amortization of leasehold improvements associated with common control leases over the useful life to the common control group.~~rate reconciliation, and (2) income taxes paid disaggregated by jurisdiction. The standard is effective for fiscal years ~~and interim periods within those fiscal years,~~ beginning after December 15, ~~2023,~~ 2024,

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with early adoption permitted. The Company ~~does not expect~~is currently evaluating the impact that the adoption of the provisions of ~~this~~the ASU will have ~~a material impact on its condensed consolidated financial statements.~~

In August 2023, the FASB issued ASU 2023-05, Business Combinations―Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement. This ASU requires joint ventures to recognize a new basis of accounting for contributed net assets as of the formation date, to measure the contributed identifiable net assets at fair value on the formation date using the business combination guidance in ASC 805-20 (with certain exceptions) regardless of whether an investor contributes a business, to measure the net assets’ fair value based on 100% of the joint venture’s equity immediately following formation, to record goodwill (or an equity adjustment, if negative) for the difference between the fair value of the joint venture’s equity and its net assets and to provide disclosures about the nature and financial effect of the formation transaction. The standard is effective prospectively for all joint venture formations with a formation date on or after January 1, 2025, with early adoption permitted. Additionally, for joint ventures that were formed before January 1, 2025, the Company may elect to apply the standard retrospectively. The Company does not expect that the adoption of the provisions of this ASU will have a material impact on its condensed consolidated financial statements.

2. Revenue

Contract Assets

As of ~~September 30, 2023,~~March 31, 2024, December 31, ~~2022,~~2023, and ~~September 30, 2022 a~~March 31, 2023 contract ~~asset~~assets of ~~$18.1~~$13.4 million, ~~$18.4~~$16.1 million and ~~$19.5~~$17.4 million, respectively, relating to RV service revenues, ~~was~~were included in accounts receivable in the accompanying condensed consolidated balance sheets.

Deferred Revenues

The Company records deferred revenues when cash payments are received or due in advance of the Company’s performance, net of estimated refunds that are ~~recorded~~presented separately inas a component of accrued liabilities. For the ~~nine~~three months ended ~~September 30, 2023,~~March 31, 2024, the Company estimates approximately ~~$71.5~~$31.7 million of revenues recognized were included in the deferred revenue balance at the beginning of the period. These estimates consider factors including, but not limited to, average service term, cash received for the period, cancellations, contract extensions, and upgrades.

As of ~~September 30, 2023,~~March 31, 2024, the Company ~~has~~had unsatisfied performance obligations primarily relating to plans for its roadside assistance, ~~plans,~~ Good Sam Club memberships and loyalty point program, Coast to Coast memberships, the annual campground guide, and magazine publication revenue streams. The total unsatisfied performance obligations

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for these revenue streams at ~~September 30, 2023~~March 31, 2024 and the periods during which the Company expects to recognize the amounts as revenue are presented as follows (in thousands):


	As of		As of
	September 30, 2023		March 31, 2024
2023	$	38,724
2024		70,886	$	79,930
2025		30,218		41,666
2026		15,589		20,872
2027		8,499		10,723
2028				5,247
Thereafter		6,111		3,386
Total	$	170,027	$	161,824

3. Inventories and Floor Plan Payables

Inventories consisted of the following (in thousands):


	September 30,		December 31,		September 30,		March 31,		December 31,		March 31,
	2023		2022		2022		2024		2023		2023
Good Sam services and plans	$	526	$	625	$	351	$	392	$	452	$	530
New RVs		1,131,575		1,411,016		1,180,364		1,469,193		1,378,403		1,219,889
Used RVs		534,155		464,310		425,824		389,810		464,833		510,689
Products, parts, accessories and other		202,786		247,907		293,588		218,197		199,261		248,998
	$	1,869,042	$	2,123,858	$	1,900,127	$	2,077,592	$	2,042,949	$	1,980,106

Substantially all of the Company’s new RV inventory and certain of its used RV inventory, included in the RV and Outdoor Retail segment, is financed by a floor plan credit agreement (“Floor Plan Facility”) with a syndication of banks (“Floor Plan Lenders”). The borrowings under the floor plan credit agreement are collateralized by substantially all of the assets of FreedomRoads, LLC (“FR”), a wholly-owned subsidiary of FreedomRoads, which operates the RV dealerships. The floor plan borrowings are tied to specific vehicles and principal is due upon the sale of the related vehicle or upon reaching certain aging criteria.

As of ~~September 30, 2023,~~March 31, 2024, December 31, ~~2022,~~2023, and ~~September 30,~~March 31, 2023, FR maintained floor plan financing through the Eighth Amended and Restated Credit Agreement (“Floor Plan Facility”), which was amended in July 2023 (“Floor Plan Amendment”). The Floor Plan Facility at September 30, 2023 allowed FR to borrow (a) up to $1.85 billion under a floor plan facility, an increase by the Floor Plan Amendment from $1.70 billion, (b) up to $30.0 million under a letter of credit facility and (c) up to a maximum amount outstanding of $70.0 million under the revolving line of credit. The maturity date of the Floor Plan Facility is September 30, 2026.

The Floor Plan Facility also includes an accordion feature allowing FR, at its option, to request to increase the aggregate amount of the floor plan notes payable in $50 million increments up to a maximum $300.0 million, which was reset and increased by the Floor Plan Amendment in July 2023 from a maximum of $200.0 million. The Floor Plan Lenders are not under any obligation to provide commitments in respect of any future increase under the accordion feature. Also, the Floor Plan Amendment increased the percentage of the aggregate amount of the floor plan notes payable that may be used to finance used RV inventory to 30% from 20%. No incremental funds were drawn at the time of closing of the Floor Plan Amendment.

~~As of September 30, 2023, December 31, 2022, and September 30, 2022,~~ the applicable interest rate for the floor plan notes payable under the Floor Plan Facility was ~~7.27%~~7.87%, ~~6.01%~~7.28%, and ~~4.30%~~6.63%, respectively. ~~Under the Floor Plan Facility, at the Company’s option, the floor plan notes payable,~~As of March 31, 2024, December 31, 2023, and ~~borrowings for letters of credit, in each case, bear interest at a rate per annum equal to (a) the floating Bloomberg Short-Term Bank Yield Index rate (“BSBY”) plus~~March 31, 2023, the applicable interest rate for revolving line of 1.90% to 2.50% determined based on FR’s consolidated current ratio, or, (b) the base rate (as described below) plus the applicable rate of 0.40% to 1.00% determined based on FR’s consolidated current ratio.credit

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~~As of September 30, 2023, December 31, 2022, and September 30, 2022, the applicable interest rate for revolving line of credit~~ borrowings under the Floor Plan Facility was 7.62%, ~~6.21%~~7.63%, and ~~4.65%~~6.83%, respectively. Under the Floor Plan Facility, revolving line of credit borrowings bear interest at a rate per annum equal to, at the Company’s option, either: (a) a floating BSBY rate, plus 2.25%, in the case of floating BSBY rate loans, or (b) a base rate determined by reference to the greatest of: (i) the federal funds rate plus 0.50%, (ii) the prime rate published by Bank of America, N.A. and (iii) the floating BSBY rate plus 1.75%, plus 0.75%, in the case of base rate loans. Additionally, under the Floor Plan Facility, the revolving line of credit borrowings are limited by a borrowing base calculation, which did not limit the borrowing capacity at ~~September 30, 2023,~~March 31, 2024, December 31, ~~2022,~~2023, and ~~September 30, 2022.~~

The Floor Plan Facility includes a flooring line aggregate interest reduction (“FLAIR”) offset account that allows the Company to transfer cash to the Floor Plan Lenders as an offset to the payables under the Floor Plan Facility. These transfers reduce the amount of liability outstanding under the floor plan borrowings that would otherwise accrue interest, while retaining the ability to withdraw amounts from the FLAIR offset account subject to the financial covenants under the Floor Plan Facility. As a result of using the FLAIR offset account, the Company experiences a reduction in floor plan interest expense in its condensed consolidated statements of operations. As of September 30, 2023, DecemberMarch 31, 2022, and September 30, 2022, FR had $207.4 million, $217.7 million, and $218.6 million, respectively, in the FLAIR offset account. The maximum FLAIR percentage of outstanding floor plan borrowings is 35% under the Floor Plan Facility. The FLAIR offset account does not reduce the outstanding amount of loans under the Floor Plan Facility for purposes of determining the unencumbered borrowing capacity under the Floor Plan Facility.2023.

Management has determined that the credit agreement governing the Floor Plan Facility includes subjective acceleration clauses, which could impact debt classification. Management believes that no events have occurred at ~~September 30, 2023~~March 31, 2024 that would trigger a subjective acceleration clause. Additionally, the credit agreement governing the Floor Plan Facility contains certain financial covenants. FRFreedomRoads, LLC was in compliance with all financial debt covenants at ~~September 30, 2023,~~March 31, 2024, December 31, ~~2022,~~2023, and ~~September 30, 2022.~~March 31, 2023.

The following table details the outstanding amounts and available borrowings under the Floor Plan Facility as of ~~September 30, 2023~~March 31, 2024 and December 31, ~~2022,~~2023, and ~~September 30, 2022~~March 31, 2023 (in thousands):


	September 30,		December 31,		September 30,		March 31,		December 31,		March 31,
	2023		2022		2022		2024		2023		2023
Floor Plan Facility
Notes payable - floor plan:
Total commitment	$	1,850,000	$	1,700,000	$	1,700,000	$	1,850,000	$	1,850,000	$	1,700,000
Less: borrowings, net of FLAIR offset account		(1,017,543)		(1,319,941)		(899,568)		(1,414,696)		(1,371,145)		(1,042,099)
Less: FLAIR offset account(1)		(207,411)		(217,669)		(218,575)		(147,654)		(145,047)		(223,899)
Additional borrowing capacity		625,046		162,390		581,857		287,650		333,808		434,002
Less: short-term payable for sold inventory⁽¹⁾⁽²⁾		(62,420)		(33,501)		(40,011)		(91,299)		(41,577)		(61,520)
Less: purchase commitments⁽²⁾⁽³⁾		(42,715)		(43,807)		(37,671)		(31,551)		(27,420)		(22,991)
Unencumbered borrowing capacity	$	519,911	$	85,082	$	504,175	$	164,800	$	264,811	$	349,491

Revolving line of credit:	$	70,000	$	70,000	$	70,000	$	70,000	$	70,000	$	70,000
Less: borrowings		(20,885)		(20,885)		(20,885)		(31,885)		(20,885)		(20,885)
Additional borrowing capacity	$	49,115	$	49,115	$	49,115	$	38,115	$	49,115	$	49,115

Letters of credit:
Total commitment	$	30,000	$	30,000	$	30,000	$	30,000	$	30,000	$	30,000
Less: outstanding letters of credit		(11,300)		(11,371)		(11,371)		(12,300)		(12,300)		(11,371)
Additional letters of credit capacity	$	18,700	$	18,629	$	18,629	$	17,700	$	17,700	$	18,629

(1)

Flooring line aggregate interest reduction (“FLAIR”) offset account that allows the Company to transfer cash to the Floor Plan Lenders as an offset to the payables under the Floor Plan Facility. The FLAIR offset account does not reduce the outstanding amount of loans under the Floor Plan Facility for purposes of determining the unencumbered borrowing capacity under the Floor Plan Facility.

(2)

The short-term payable represents the amount due for sold inventory. A payment for any floor plan units sold is due within three to ten business days of sale. Due to the short-term nature of these payables, the Company reclassifies the amounts from notes payable‒floor plan, net to accounts payable in the condensed consolidated balance sheets. Changes in the vehicle floor plan payable are reported as cash flows from financing activities in the condensed consolidated statements of cash flows.

~~(2)~~(3)

Purchase commitments represent vehicles approved for floor plan financing where the inventory has not yet been received by the Company from the supplier and no floor plan borrowing is outstanding.

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4. Restructuring and Long-Lived Asset Impairment

~~Restructuring – 2019 Strategic Shift~~

On September 3, 2019, the Board of Directors of CWH approved a plan (the “2019 Strategic Shift”) to strategically shift its business away from locations where the Company does not have the ability or where it is not feasible to sell and/or service RVs at a sufficient capacity (the “Outdoor Lifestyle Locations”). Of the Outdoor Lifestyle Locations in the RV and Outdoor Retail segment operating at September 3, 2019, the Company has closed or divested 39 Outdoor Lifestyle Locations, two distribution centers, and 20 specialty retail locations relating to the 2019 Strategic Shift. As of December 31, 2020, the Company had completed the store closures and divestitures relating to the 2019 Strategic Shift. During the year ended December 31, 2021, the Company completed its analysis of its retail product offerings that are not RV related.

As of December 31, 2021, the activities under the 2019 Strategic Shift were completed with the exception of certain lease termination costs and other associated costs relating to the leases of previously closed locations under the 2019 Strategic Shift. The process of identifying subtenants and negotiating lease terminations has been delayed, which initially was in part due to the COVID-19 pandemic, and these delays are expected to continue. The timing of these negotiations will vary as both subleases and terminations are contingent on landlord approvals.

The Company currently estimates the total restructuring costs associated with the 2019 Strategic Shift to be in the range of $122.7 million to $131.3 million. The breakdown of the estimated restructuring costs are as follows:

●

~~one-time employee termination benefits relating to retail store or distribution center closures/divestitures of $1.2 million, all of which was incurred through December 31, 2020;~~

●

~~lease termination costs of $20.0 million to $27.0 million, of which $19.4 million has been incurred through September 30, 2023;~~

●

~~incremental inventory reserve charges of $57.4 million, all of which was incurred through December 31, 2021; and~~

●

~~other associated costs of $44.1 million to $45.7 million, of which $44.1 million has been incurred through September 30, 2023.~~

Through September 30, 2023, the Company has incurred $44.1 million of such other associated costs primarily representing labor, lease, and other operating expenses incurred during the post-close wind-down period for the locations related to the 2019 Strategic Shift. The additional amount of up to $1.6 million represents similar costs that may be incurred through the year ending December 31, 2023 for locations that continue in a wind-down period, primarily comprised of lease costs accounted for under ASC 842, ~~Leases~~, prior to lease termination. The Company expects that certain of the remaining leases under the 2019 Strategic Shift will be under contract to sublease or terminated by December 31, 2023. The remaining ongoing other associated costs, net of associated sublease income, are expected to be immaterial in periods after December 31, 2023. The foregoing lease termination cost estimate represents the expected cash payments to terminate certain leases but does not include the gain or loss from derecognition of the related operating lease assets and liabilities, which is dependent on the particular leases that will be terminated.

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~~The following table details the costs incurred during the three and nine months ended September 30, 2023 and 2022 associated with the 2019 Strategic Shift (in thousands):~~

Three Months Ended September 30,

Nine Months Ended September 30,

2023

2022

2023

2022
2019 Strategic Shift restructuring costs:

Lease termination costs⁽¹⁾

$
—

$
—

$
—

$
1,122
Other associated costs⁽²⁾

926

1,671

3,073

5,548
Total 2019 Strategic Shift restructuring costs

$
926

$
1,671

$
3,073

$
6,670

~~(1)~~

These costs were included in lease termination charges in the condensed consolidated statements of operations. This reflects termination fees paid, net of any gain from derecognition of the related operating lease assets and liabilities.

~~(2)~~

Other associated costs primarily represent lease and other operating expenses incurred during the post-close wind-down period for the locations related to the 2019 Strategic Shift for the periods presented and were included in selling, general, and administrative expenses in the condensed consolidated statements of operations.

~~The following table details changes in the restructuring accrual associated with the 2019 Strategic Shift (in thousands):~~

One-time

Lease

Other



Termination

Termination

Associated



Benefits

Costs⁽¹⁾

Costs⁽²⁾

Total
Balance at June 30, 2019

$
—

$
—

$
—

$
—
Charged to expense

1,239

13,532

31,840

46,611
Paid or otherwise settled

(1,239)

(13,532)

(30,914)

(45,685)
Balance at December 31, 2021

—

—

926

926
Charged to expense

—

2,023

5,548

7,571
Paid or otherwise settled

—

(2,023)

(5,639)

(7,662)
Balance at September 30, 2022

—

—

835

835
Charged to expense

—

4,074

1,478

5,552
Paid or otherwise settled

—

(4,074)

(1,444)

(5,518)
Balance at December 31, 2022

—

—

869

869
Charged to expense

—

—

3,073

3,073
Paid or otherwise settled

—

—

(2,858)

(2,858)
Balance at September 30, 2023

$
—

$
—

$
1,084

$
1,084

~~(1)~~

Lease termination costs exclude the $7.6 million, $0.9 million and $3.9 million of gains from the derecognition of the operating lease assets and liabilities relating to the terminated leases as part of the 2019 Strategic Shift for the 2.5 years ended December 31, 2021, for the nine months ended September 30, 2022, and for the three months ended December 31, 2022, respectively.

~~(2)~~

~~Other associated costs primarily represent labor, lease and other operating expenses incurred during the post-close wind-down period for the locations related to the 2019 Strategic Shift.~~

~~The Company evaluated the requirements of ASC No. 205-20,~~ ~~Presentation of Financial Statements – Discontinued Operations~~ relative to the 2019 Strategic Shift and determined that discontinued operations treatment is not applicable. Accordingly, the results of operations of the locations impacted by the 2019 Strategic Shift are reported as part of continuing operations in the accompanying condensed consolidated financial statements.

Restructuring – Active Sports

On March 1, 2023, management of the Company determined to implement plans (the “Active Sports Restructuring”) to exit and restructure operations of its indirect subsidiary, Active Sports, LLC, a specialty products retail business (“Active Sports”) as part of its review of underperforming assets and business lines. Upon liquidating a significant amount of inventory and exiting the related distribution centers, the Company reevaluated its exit plan and concluded instead that it would integrate the remaining operations into its existing distribution and fulfillment infrastructure while maintaining lower inventory levels and a smaller fixed cost structure. These plans have resulted in a much smaller operation and included the closure of the specialty retail ~~location.~~

The activities under the Active Sports Restructuring are expected to be substantially completed by December 31, 2023. The total restructuring costs associated with the Active Sports Restructuring are estimated

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~~to be in the range of $5.2 million to $5.5 million. The breakdown of the estimated restructuring costs are as follows:~~

●

~~one-time employee termination benefits relating to the specialty retail store and distribution center closures of $0.2 million, all of which has been incurred through September 30, 2023;~~

●

~~incremental inventory reserve charges of $3.9 million, all of which has been incurred through September 30, 2023;~~

●

~~lease termination charges of $0.4 million, all of which has been incurred through September 30, 2023; and~~

●

~~other associated costs of $0.7 million to $1.0 million, of which $0.7 million has been incurred through September 30, 2023.~~

location. The incremental inventory reserve charges are based, in part, on the Company’s estimates of the discounting necessary to liquidate the Active Sports inventory. ~~However, additional incremental inventory reserve charges may~~

The activities under the Active Sports Restructuring were substantially completed by December 31, 2023. Certain lease costs will continue to be ~~recorded in future periods~~incurred after December 31, 2023 on the remaining leases if ~~discounting in excess~~the Company is unable to terminate the leases under acceptable terms or offset the lease costs through sublease arrangements. The Company expects that the ongoing lease-related costs relating to the Active Sports Restructuring, net of ~~those estimates~~associated sublease income, will be less than $1.1 million per year.

As of March 31, 2024, the total restructuring costs associated with the Active Sports Restructuring were $6.2 million. The breakdown of these restructuring costs is ~~necessary.~~as follows:

●

one-time employee termination benefits relating to the specialty retail store and distribution center closures of $0.2 million;

●

incremental inventory reserve charges of $4.3 million;

●

lease termination charges of $0.4 million; and

●

other associated costs of $1.3 million.

The following table details the costs incurred during the three ~~and nine~~ months ended ~~September 30,~~March 31, 2024 and 2023 ~~and 2022~~ associated with the Active Sports Restructuring (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,				Three Months Ended March 31,
	2023		2022		2023		2022		2024		2023
Active Sports Restructuring costs:
One-time termination benefits⁽¹⁾	$	—	$	—	$	193	$	—
Incremental inventory reserve charges⁽¹⁾		1,250		—		3,896		—
Lease termination costs ⁽²⁾		375		—		375		—
Other associated costs⁽³⁾		299		—		719		—
Other associated costs⁽¹⁾									$	260	$	—
Total Active Sports Restructuring costs	$	1,924	$	—	$	5,183	$	—	$	260	$	—

(1)	~~These costs were included in costs applicable to revenues – products, service and other in the condensed consolidated statements of operations.~~

~~(2)~~

These costs were included in lease termination charges in the condensed consolidated statements of operations. As there were no termination fees paid, this represents the non-cash loss associated with the derecognition of the related operating lease assets and liabilities.

~~(3)~~

Other associated costs primarily represent ~~labor,~~ lease and other operating expenses incurred during the post-close wind-down period for the Active Sports Restructuring for the periods presented and were included primarily in selling, general, and administrative expenses in the condensed consolidated statements of operations.

The following table details changes in the restructuring accrual associated with the Active Sports Restructuring (in thousands):


	One-time		Other				One-time		Other
	Termination		Associated				Termination		Associated
	Benefits		Costs ⁽¹⁾		Total		Benefits		Costs ⁽¹⁾		Total
Balance at March 31, 2023	$	—	$	—	$	—	$	—	$	—	$	—
Charged to expense		193		719		912		193		1,003		1,196
Paid or otherwise settled		(193)		(719)		(912)		(193)		(1,003)		(1,196)
Balance at September 30, 2023	$	—	$	—	$	—
Balance at December 31, 2023								—		—		—
Charged to expense								—		260		260
Paid or otherwise settled								—		(260)		(260)
Balance at March 31, 2024							$	—	$	—	$	—

(1)	Other associated costs primarily represent labor, lease and other operating expenses incurred during the post-close wind-down period for the specialty retail location and distribution centers related to the Active Sports Restructuring.

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Long-Lived Asset Impairment

During the three months ended March 31, 2023, the Company recorded an impairment charge totaling $6.6 million related to the Active Sports Restructuring, of which $4.5 million related to intangible assets, and $2.1 million related to other long-lived asset categories.

~~During~~Additionally, during the three ~~and nine~~ months ended ~~September 30,~~March 31, 2024 and March 31, 2023, ~~and the nine months ended September 30, 2022,~~ the Company had indicators of impairment of the long-lived assets for certain locations, which were unrelated to the Active Sports Restructuring. Such indicators primarily included decreases in market rental rates or market value of real

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property for closed locations, or based on the Company’s review of location performance in the normal course of ~~business, which included the determination to close certain locations. Certain of these location closures are expected to occur during the three months ended December 31, 2023.~~business. As a result of updating certain assumptions in the long-lived asset impairment analysis for these locations, the Company determined that the fair value of certain long-lived assets were below their carrying value and were impaired.

The long-lived asset impairment charges were calculated as the amount that the carrying value of these locations exceeded the estimated fair value, except that individual assets cannot be impaired below their individual fair values when that fair value can be determined without undue cost and effort. Estimated fair value is typically based on estimated discounted future cash flows, while property appraisals or market rent analyses are utilized for determining the fair value of certain assets related to properties and leases.

The following table details long-lived asset impairment charges by type of long-lived asset and by restructuring activity, all of which relate to the RV and Outdoor Retail segment (in thousands):

Three Months Ended September 30,

Nine Months Ended September 30,

2023

2022

2023

2022
Long-lived asset impairment charges by type of long-lived asset:

Leasehold improvements

$
1,117

$
—

$
1,857

$
2,557
Operating lease right of use assets

631

887

1,107

887
Furniture and equipment

—

—

329

61
Software

—

—

1,362

—
Construction in progress and software in development

—

—

113

—
Intangible assets

—

—

4,501

—
Total long-lived asset impairment charges

$
1,748

$
887

$
9,269

$
3,505

Long-lived asset impairment charges by restructuring activity:

2019 Strategic Shift

$
—

$
—

$
—

$
887
Active Sports Restructuring

—

—

6,648

—
Unrelated to restructuring activities

1,748

887

2,621

2,618
Total long-lived asset impairment charges

$
1,748

$
887

$
9,269

$
3,505

~~5. Assets Held for Sale~~

The Company continually evaluates its portfolio for non-strategic assets and classifies assets and liabilities to be sold (“Disposal Group”) as held for sale in the period in which all specified GAAP criteria are met. Upon determining that a Disposal Group meets the criteria to be classified as held for sale, but does not meet the criteria for discontinued operations, the Company reports the assets and liabilities of the Disposal Group, if material, as separate line items on the condensed consolidated balance sheets and ceases to record depreciation and amortization relating to the Disposal Group.

The Company initially measures a Disposal Group that is classified as held for sale at the lower of its carrying value or fair value less any costs to sell. Any loss resulting from this measurement is recognized in the period in which the held for sale criteria are met. Conversely, gains are not recognized on the sale of a Disposal

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~~Group until the date of sale. The estimated fair value for Disposal Groups comprised of properties are typically based on appraisals and/or offers from prospective buyers.~~

As of September 30, 2023, two properties from the RV and Outdoor Retail segment, relating to a closed RV dealership and real estate, met the criteria to be classified as held for sale. Additionally, as of September 30, 2023, one of these properties had associated secured borrowings under the Company’s Real Estate Facilities (see Note 7 — ~~Long-Term Debt for definition and further details), which will require payment of the associated balance upon sale of the property.~~

~~The following table presents the components of assets held for sale and liabilities related to assets held for sale at September 30, 2023, December 31, 2022, and September 30, 2022 (in thousands):~~


	September 30,		December 31,		September 30,		Three Months Ended March 31,
	2023		2022		2022		2024		2023
Assets held for sale:
Property and equipment, net	$	4,635	$	—	$	—
Long-lived asset impairment charges by type of long-lived asset:
Leasehold improvements							$	2,285	$	740
Operating lease right of use assets								1,290		—
Building and improvements								2,252		—
Furniture and equipment								—		329
Software								—		1,362
Construction in progress and software in development								—		113
Intangible assets								—		4,501
Total long-lived asset impairment charges							$	5,827	$	7,045
	$	4,635	$	—	$	—
Liabilities related to assets held for sale:
Current portion of long-term debt	$	201	$	—	$	—
Long-term debt, net of current portion		3,821		—		—
Long-lived asset impairment charges by restructuring activity:
Active Sports Restructuring							$	—	$	6,648
Unrelated to restructuring activities								5,827		397
Total long-lived asset impairment charges							$	5,827	$	7,045
	$	4,022	$	—	$	—

~~6. Goodwill~~5. Assets Held for Sale

As of March 31, 2024, December 31, 2023, and ~~Intangible Assets~~March 31, 2023, three, five, and two RV and Outdoor Retail segment properties, respectively, met the criteria to be classified as held for sale. Additionally, as of December 31, 2023 and March 31, 2023, certain of these properties had associated secured borrowings under the Company’s Real Estate Facilities (see Note 7 — Long-Term Debt for definition and further details).

~~Goodwill~~

The following table presents ~~a summary~~the components of ~~changes in the Company’s goodwill by segment~~assets held for ~~the nine months ended September 30,~~sale and liabilities related to assets held for sale at March 31, 2024, December 31, 2023, and ~~2022~~March 31, 2023 (in thousands):

Good Sam

Services and

RV and


Plans

Outdoor Retail

Consolidated
Balance at December 31, 2021 (excluding impairment charges)

$
70,713

$
654,758

$
725,471
Accumulated impairment charges

(46,884)

(194,953)

(241,837)
Balance at December 31, 2021

23,829

459,805

483,634
Acquisitions

405

49,178

49,583
Balance at September 30, 2022

24,234

508,983

533,217
Acquisitions

—

89,206

89,206
Balance at December 31, 2022

24,234

598,189

622,423
Acquisitions

—

65,716

65,716
Balance at September 30, 2023

$
24,234

$
663,905

$
688,139


	March 31,		December 31,		March 31,
	2024		2023		2023
Assets held for sale:
Property and equipment, net	$	6,276	$	29,864	$	13,971
	$	6,276	$	29,864	$	13,971
Liabilities related to assets held for sale:
Current portion of long-term debt	$	—	$	864	$	788
Long-term debt, net of current portion		—		16,424		6,862
	$	—	$	17,288	$	7,650

2015

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6. Goodwill and Intangible Assets

Goodwill

The following table presents a summary of changes in the Company’s goodwill by segment for the three months ended March 31, 2024 and 2023 (in thousands):


	Good Sam
	Services and		RV and
	Plans		Outdoor Retail		Consolidated
Balance at December 31, 2022 (excluding impairment charges)	$	71,118	$	793,142	$	864,260
Accumulated impairment charges		(46,884)		(194,953)		(241,837)
Balance at December 31, 2022		24,234		598,189		622,423
Acquisitions		—		122		122
Balance at March 31, 2023		24,234		598,311		622,545
Acquisitions		—		88,677		88,677
Balance at December 31, 2023		24,234		686,988		711,222
Acquisitions		—		24,458		24,458
Balance at March 31, 2024	$	24,234	$	711,446	$	735,680

Intangible Assets

Finite-lived intangible assets and related accumulated amortization consisted of the following at ~~September 30, 2023,~~March 31, 2024, December 31, ~~2022~~2023 and ~~September 30, 2022~~March 31, 2023 (in thousands):

September 30, 2023

Cost or

Accumulated


Fair Value

Amortization

Net
Good Sam Services and Plans:

Membership, customer lists and other

$
9,640

(9,179)

$
461
Trademarks and trade names

2,132

(202)

1,930
Websites

3,050

(1,009)

2,041
RV and Outdoor Retail:

Customer lists, domain names and other

5,618

(3,103)

2,515
Supplier lists

1,696

(1,018)

678
Trademarks and trade names

27,251

(20,941)

6,310
Websites

6,032

(5,523)

509

$
55,419

$
(40,975)

$
14,444

December 31, 2022

Cost or

Accumulated


Fair Value

Amortization

Net
Good Sam Services and Plans:

Membership, customer lists and other

$
9,640

$
(8,971)

$
669
Trademarks and trade names

2,132

(95)

2,037
Websites

3,050

(682)

2,368
RV and Outdoor Retail:

Customer lists and domain names

5,626

(2,880)

2,746
Supplier lists

1,696

(763)

933
Trademarks and trade names

29,564

(19,691)

9,873
Websites

7,519

(5,200)

2,319

$
59,227

$
(38,282)

$
20,945

September 30, 2022

Cost or

Accumulated


Fair Value

Amortization

Net
Good Sam Services and Plans:

Membership, customer lists and other

$
9,640

$
(8,901)

$
739
Trademarks and trade names

2,132

(59)

2,073
Websites

3,050

(573)

2,477
RV and Outdoor Retail:

Customer lists and domain names

5,626

(2,735)

2,891
Supplier lists

1,696

(678)

1,018
Trademarks and trade names

29,564

(19,335)

10,229
Websites

7,486

(5,094)

2,392

$
59,194

$
(37,375)

$
21,819

During the first quarter of 2022, the Company recorded $8.8 million of incremental accelerated amortization from the adjustment of the useful lives of certain trademark and trade name intangible assets relating to brands not traditionally associated with RVs that the Company phased out.


	March 31, 2024
	Cost or		Accumulated
	Fair Value		Amortization		Net
Good Sam Services and Plans:
Membership, customer lists and other	$	9,740		(9,316)	$	424
Trademarks and trade names		2,132		(273)		1,859
Websites		3,050		(1,227)		1,823
RV and Outdoor Retail:
Customer lists, domain names and other		5,543		(3,439)		2,104
Supplier lists		1,696		(1,187)		509
Trademarks and trade names		27,251		(21,725)		5,526
Websites		6,344		(5,591)		753
	$	55,756	$	(42,758)	$	12,998

	December 31, 2023
	Cost or		Accumulated
	Fair Value		Amortization		Net
Good Sam Services and Plans:
Membership, customer lists and other	$	9,640	$	(9,246)	$	394
Trademarks and trade names		2,132		(238)		1,894
Websites		3,050		(1,118)		1,932
RV and Outdoor Retail:
Customer lists and domain names		5,543		(3,269)		2,274
Supplier lists		1,696		(1,102)		594
Trademarks and trade names		27,251		(21,390)		5,861
Websites		6,325		(5,557)		768
	$	55,637	$	(41,920)	$	13,717

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	March 31, 2023
	Cost or		Accumulated
	Fair Value		Amortization		Net
Good Sam Services and Plans:
Membership, customer lists and other	$	9,640	$	(9,040)	$	600
Trademarks and trade names		2,132		(130)		2,002
Websites		3,050		(792)		2,258
RV and Outdoor Retail:
Customer lists and domain names		4,872		(3,025)		1,847
Supplier lists		1,696		(824)		872
Trademarks and trade names		27,251		(20,049)		7,202
Websites		6,085		(5,485)		600
	$	54,726	$	(39,345)	$	15,381

7. Long-Term Debt

Outstanding long-term debt consisted of the following (in thousands):


	September 30,		December 31,		September 30,		March 31,		December 31,		March 31,
	2023		2022		2022		2024		2023		2023
Term Loan Facility ⁽¹⁾	$	1,348,882	$	1,360,454	$	1,359,230	$	1,343,580	$	1,346,229	$	1,354,221
Real Estate Facilities ⁽²⁾		188,543		145,911		21,666		219,068		166,604		194,802
Other Long-Term Debt		8,327		3,280		3,311		8,168		8,246		3,250
Subtotal		1,545,752		1,509,645		1,384,207		1,570,816		1,521,079		1,552,273
Less: current portion		(23,257)		(25,229)		(15,827)		(25,651)		(22,121)		(26,969)
Total	$	1,522,495	$	1,484,416	$	1,368,380	$	1,545,165	$	1,498,958	$	1,525,304

(1)

Net of ~~$12.6~~$11.4 million, ~~$14.2~~$12.0 million, and ~~$15.2~~$13.7 million of original issue discount at ~~September 30, 2023,~~March 31, 2024, December 31, ~~2022,~~2023, and ~~September 30, 2022,~~March 31, 2023, respectively, and ~~$5.0~~$4.4 million, ~~$5.8~~$4.7 million, and ~~$6.1~~$5.5 million of finance costs at ~~September 30, 2023,~~March 31, 2024, December 31, ~~2022,~~2023, and ~~September 30, 2022,~~March 31, 2023, respectively.

(2)	Net of ~~$3.5~~$3.9 million, ~~$3.4~~$3.3 million, and ~~$0.2~~$3.9 million of finance costs at ~~September 30, 2023,~~March 31, 2024, December 31, ~~2022,~~2023, and ~~September 30, 2022,~~March 31, 2023, respectively.

Senior Secured Credit Facilities

As of ~~September 30, 2023,~~March 31, 2024, December 31, ~~2022,~~2023, and ~~September 30, 2022,~~March 31, 2023, CWGS Group, LLC (the “Borrower”), a wholly-owned subsidiary of CWGS, LLC, was party to a credit agreement (the “Credit Agreement”) for ~~senior secured credit facilities (the “Senior Secured Credit Facilities”). The Senior Secured Credit Facilities consist of~~ a ~~$1.4 billion~~ term loan facility (the “Term Loan Facility”) and a ~~$65.0 million~~ revolving credit facility (the “Revolving Credit Facility”~~). Under~~ and collectively the ~~Senior~~“Senior Secured Credit Facilities, the Company has the ability to request to increase the amount of term loans or revolving loans in an aggregate amount not to exceed the greater of (a) a “fixed” amount set at $725.0 million and (b) 100% of consolidated EBITDA for the most recent four consecutive fiscal quarters on a pro forma basis (as defined in the Credit Agreement)Facilities”). ~~The lenders under the Senior Secured Credit Facilities are not under any obligation to provide commitments in respect of any such increase.~~

The Term Loan Facility requires mandatory principal payments in equal quarterly installments of $3.5 million. The December 31, 2022 principal payment was due in January 2023, since December 31, 2022 was on a Saturday. Additionally, the Company is required to prepay the term loan borrowings in an aggregate amount up to 50% of excess cash flow, as defined in the Credit Agreement, for such fiscal year depending on the Total Leverage Ratio (as defined by the Credit Agreement) beginning with the year ended December 31, 2022. The Company does not expect that an additional excess cash flow payment will be required relating to 2023.

The funds available under the Revolving Credit Facility may be utilized for borrowings or letters of credit; however, a maximum of $25.0 million may be allocated to such letters of credit. The Revolving Credit Facility matures in June 2026 and the Term Loan Facility matures in June 2028.

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The following table details the outstanding amounts and available borrowings under the Senior Secured Credit Facilities as of (in thousands):


	September 30,		December 31,		September 30,		March 31,		December 31,		March 31,
	2023		2022		2022		2024		2023		2023
Senior Secured Credit Facilities:
Term Loan Facility:
Principal amount of borrowings	$	1,400,000	$	1,400,000	$	1,400,000	$	1,400,000	$	1,400,000	$	1,400,000
Less: cumulative principal payments		(33,530)		(19,515)		(19,515)		(40,538)		(37,034)		(26,523)
Less: unamortized original issue discount		(12,596)		(14,224)		(15,177)		(11,433)		(12,016)		(13,721)
Less: unamortized finance costs		(4,992)		(5,807)		(6,078)		(4,449)		(4,721)		(5,535)
		1,348,882		1,360,454		1,359,230		1,343,580		1,346,229		1,354,221
Less: current portion		(14,015)		(14,015)		(14,015)		(14,015)		(14,015)		(14,015)
Long-term debt, net of current portion	$	1,334,867	$	1,346,439	$	1,345,215	$	1,329,565	$	1,332,214	$	1,340,206
Revolving Credit Facility:
Total commitment	$	65,000	$	65,000	$	65,000	$	65,000	$	65,000	$	65,000
Less: outstanding letters of credit		(4,930)		(4,930)		(4,930)		(4,930)		(4,930)		(4,930)
Less: total net leverage ratio borrowing limitation		(37,320)		—		—		(37,320)		(37,320)		—
Additional borrowing capacity	$	22,750	$	60,070	$	60,070	$	22,750	$	22,750	$	60,070

As of ~~September 30, 2023,~~March 31, 2024, December 31, ~~2022,~~2023, and ~~September 30, 2022,~~March 31, 2023, the average interest rate on the Term Loan Facility was ~~7.95%~~7.94%, ~~6.80%~~7.97%, and ~~5.34%~~7.20%, respectively, and the effective interest rate was ~~8.19%~~8.18%, ~~7.03%~~8.21%, and ~~5.32%~~7.44%, respectively.

The Senior Secured Credit Facilities are fully and unconditionally guaranteed, jointly and severally, on a senior secured basis by each of the Company’s existing and future domestic restricted subsidiaries with the exception of FreedomRoads Intermediate Holdco, LLC, the direct parent of FR, and FR, and its subsidiaries. The Credit Agreement contains certain restrictive covenants pertaining to, but not limited to, mergers, changes in the nature of the business, acquisitions, additional indebtedness, sales of assets, investments, and the payment of dividends subject to certain limitations and minimum operating covenants. Additionally, managementManagement has determined that the Senior Secured Credit Facilities include subjective acceleration clauses, which could impact debt classification. Management believes that no events have occurred at ~~September 30, 2023~~March 31, 2024 that would trigger a subjective acceleration clause.

The Credit Agreement requires the Borrower and its subsidiaries to comply on a quarterly basis with a maximum Total Net Leverage Ratio (as defined in the Credit Agreement), which covenant is in effect only if, as of the end of each calendar quarter, the aggregate amount of borrowings under the revolving credit facility, ~~(including swingline loans),~~ letters of credit and unreimbursed letter of credit disbursements outstanding at such time is greater than 35% of the total commitment on the Revolving Credit Facility (excluding (i) up to $15.0 million attributable to any outstanding undrawn letters of credit and (ii) any cash collateralized or backstopped letters of credit), as defined in the Credit Agreement. As of ~~September 30, 2023,~~March 31, 2024, the Company was not subject to this covenant as borrowings under the Revolving Credit Facility did not exceed the 35% threshold, however the Company’s borrowing capacity was reduced by $37.3 million in light of this covenant. The Company was in compliance with all applicable financial debt covenants at ~~September 30, 2023,~~March 31, 2024, December 31, ~~2022,~~2023, and ~~September 30, 2022.~~March 31, 2023.

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Real Estate Facilities

~~On October 27, 2022,~~As of March 31, 2024, December 31, 2023, and March 31, 2023, subsidiaries of FRHP Lincolnshire, LLC (“FRHP”), an indirect wholly-owned subsidiary of CWGS, LLC, ~~entered into~~were parties to a credit agreement with a syndication of banks for a real estate credit facility (the “M&T Real Estate Facility”) ~~with aggregate maximum principal capacity of $250.0 million with an option that allows~~. During the three months ended March 31, 2024 and 2023, FRHP ~~to request~~borrowed an additional ~~$100.0~~$55.6 million ~~of principal capacity. The lenders~~and $59.2 million, respectively, under the M&T Real Estate ~~Facility are not~~Facility. During the three months ended March 31, 2024, FRHP repaid $15.6 million in conjunction with a sale-leaseback transaction of two properties secured under ~~any obligation to provide commitments in respect of any such increase. The M&T Real Estate Facility bears interest at FRHP’s option of either (as defined in the credit agreement for~~ the M&T Real Estate ~~Facility): (a)~~Facility. Additionally, during the ~~Secured Overnight Financing Rate (“SOFR”) plus the applicable rate~~three months ended March 31, 2024, FRHP repaid $1.7 million of 2.30% or (b) the highest of (i) the Federal Funds Rate plus 1.80%, (ii) the Prime Rate plus 1.30%, or (iii) SOFR plus 2.30%. The M&T Real Estate Facility has an unused commitment fee of 0.20% of the aggregate unused principal amount and it matures in October 2027. Additionally, the M&T Real Estate Facility ~~is subject~~relating to a ~~debt service coverage ratio covenant (as defined in the credit agreement for the M&T Real Estate Facility). All obligations under the M&T Real Estate Facility~~separate property of which a portion of that property was sold.

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As of March 31, 2024, December 31, 2023, and ~~the guarantees of those obligations are secured, subject~~March 31, 2023, Camping World Property, LLC, successor by conversion to ~~certain exceptions, by the mortgaged real property assets. During the nine months ended September 30, 2023, FRHP borrowed an additional $59.2 million under the M&T Real Estate Facility.~~

~~In November 2018, September 2021 and December 2021,~~ Camping World Property, Inc. (the ‘‘Real Estate Borrower’’), an indirect wholly-owned subsidiary of CWGS, LLC, and CIBC Bank USA (“Lender”), ~~entered into~~were parties to loan and security agreements for real estate credit facilities ~~(as~~((as amended from time to time, the “First CIBC Real Estate Facility”, the “Second CIBC Real Estate Facility”, and the “Third CIBC Real Estate Facility”, respectively, and collectively the “CIBC Real Estate Facilities”) and together with ~~aggregate maximum principal capacities of $21.5 million, $9.0 million, and $10.1 million for~~ the ~~First CIBC~~M&T Real Estate Facility, ~~Second CIBC Real~~the “Real Estate Facility, and Third CIBC Real Estate Facility, respectively. Borrowings under the CIBC Real Estate Facilities are guaranteed by CWGS Group, LLC, a wholly-owned subsidiary of CWGS, LLC. The CIBC Real Estate Facilities may be used to finance the acquisition of real estate assets. The CIBC Real Estate Facilities are secured by a first priority security interest on the real estate assets acquired with the proceeds of the CIBC Real Estate Facilities (“CIBC Real Estate Facility Properties”Facilities”).

In June 2023, the Real Estate Borrower sold one ~~of the CIBC Real Estate Facility Properties~~property located in Franklin, Kentucky, which was secured by the Second CIBC Real Estate Facility. As part of the settlement of the property sale, the outstanding balance of the Second CIBC Real Estate Facility of $7.4 million was repaid and terminated by the Real Estate Borrower. ~~The First CIBC Real Estate Facility was amended in October 2023 to extend the maturity date from October 2023 to October 2028. The Third CIBC Real Estate Facility matures in December 2026.~~

The following table shows a summary of the outstanding balances, remaining available borrowings, and weighted average interest rate under the M&T Real Estate Facility and the CIBC Real Estate Facilities (collectively the “Real Estate Facilities”) at ~~September 30, 2023:~~March 31, 2024:


	As of September 30, 2023								As of March 31, 2024
	Principal			Remaining			Wtd. Average		Principal		Remaining			Wtd. Average
(In thousands)	Outstanding⁽¹⁾			Available⁽²⁾			Interest Rate		Outstanding⁽¹⁾		Available⁽²⁾			Interest Rate
Real Estate Facilities
M&T Real Estate Facility	$	179,662	⁽⁴⁾	$	68,394	⁽³⁾		7.62%	$	206,549	$	7,390	⁽³⁾		7.63%
First CIBC Real Estate Facility		3,725			—			8.17%		3,585		—			8.33%
Third CIBC Real Estate Facility		9,178			—			7.92%		8,934		—			8.08%
Less: Amount reclassified to liabilities related to assets held for sale		(4,022)			—
	$	188,543		$	68,394				$	219,068	$	7,390

(1)	Outstanding principal amounts are net of unamortized finance costs.

(2)	Amounts cannot be reborrowed.

(3)	Additional borrowings on the M&T Real Estate Facility are subject to a debt service coverage ratio covenant and to the property collateral requirements under the M&T Real Estate Facility.

~~(4)~~

~~$4.0 million of this amount is classified as liabilities related to assets held for sale (see Note 5 ― Assets Held for Sale).~~

Management has determined that the credit agreements governing the Real Estate Facilities include subjective acceleration clauses, which could impact debt classification. Management believes that no events

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have occurred at ~~September 30, 2023~~March 31, 2024 that would trigger a subjective acceleration clause. Additionally, the Real Estate Facilities are subject to certain cross default provisions, a debt service coverage ratio, and other customary covenants. The Company was in compliance with all financial debt covenants at ~~September 30, 2023,~~March 31, 2024, December 31, ~~2022,~~2023, and ~~September 30, 2022.~~March 31, 2023.

Other Long-Term Debt

In December 2021, FRHP assumed a mortgage as part of a real estate purchase. This mortgage is secured by the acquired property, is guaranteed by CWGS Group, LLC, a wholly-owned subsidiary of CWGS, LLC and matures in December 2026. In June 2023, FRHP assumed a promissory note as part of a real estate purchase. This note is secured by the acquired property and matures in April 2041. As of ~~September 30, 2023,~~March 31, 2024, the outstanding principal balance of ~~these~~other long-term debt ~~instruments~~ was ~~$8.3~~$8.2 million with a weighted average interest rate of 4.27%.

8. Lease Obligations

The following table presents certain information related to the costs for leases where the Company is the lessee (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,				Three Months Ended March 31,
	2023		2022		2023		2022		2024		2023
Operating lease cost	$	29,639	$	27,824	$	88,220	$	84,401	$	29,190	$	29,205
Finance lease cost:
Amortization of finance lease assets		1,987		3,165		1,242		8,830		2,860		(2,813)
Interest on finance lease liabilities		1,543		1,441		4,482		3,580		2,466		1,399
Short-term lease cost		475		392		1,539		1,410		377		514
Variable lease cost		4,941		5,878		17,358		17,674		5,329		6,289
Sublease income		(782)		(432)		(2,114)		(1,131)		(654)		(657)
Net lease costs	$	37,803	$	38,268	$	110,727	$	114,764	$	39,568	$	33,937

As of ~~September 30, 2023,~~March 31, 2024, December 31, ~~2022,~~2023, and ~~September 30, 2022,~~March 31, 2023, finance lease assets of ~~$90.8~~$139.8 million, ~~$88.1~~$100.4 million, and ~~$91.2~~$93.6 million, respectively, were included in property and equipment, net in the accompanying condensed consolidated balance sheets.

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The following table presents supplemental cash flow information related to leases (in thousands):


	Nine Months Ended September 30,				Three Months Ended March 31,
	2023		2022		2024		2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	87,604	$	85,175	$	29,588	$	28,774
Operating cash flows for finance leases		4,478		3,508		2,466		1,395
Financing cash flows for finance leases		4,160		4,541		1,829		1,233
Lease assets obtained in exchange for lease liabilities:
New, remeasured and terminated operating leases		40,598		14,433		44,183		2,693
New, remeasured and terminated finance leases		8,959		24,440		42,228		7,700

~~Sale-Leaseback Arrangement Recorded as Financing Transaction~~

~~On February 8, 2022, FRHP sold~~During the three ~~properties for a total sale price of $28.0 million. Concurrent with the sale of these properties,~~months ended March 31, 2024, the Company entered into ~~three separate twenty-year lease agreements, whereby~~sale-leaseback transactions for two properties associated with store locations in the Company agreed to lease back the properties from the acquiring company. Under each lease agreement, FR has four consecutive options to extend the lease term for additional periods of five years for each option. This transaction is accounted for as a financing transaction.RV and Outdoor Retail segment. The Company received consideration of $23.5 million of cash and recorded a ~~liability for the amount received, will continue to depreciate the non-land portion~~gain of ~~the assets, and has imputed an interest rate so~~$0.1 million that ~~the net carrying amount of the financial liability and remaining non-land assets will be zero at the end of the~~

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~~initial lease terms. The financial liability~~ is included in ~~other long-term liabilities~~loss (gain) on sale or disposal of assets in the condensed consolidated ~~balance sheets.~~statements of income for the three months ended March 31, 2024. The Company entered into a 20-year lease agreement as the lessee with each buyer of the properties.

9. Fair Value Measurements

Accounting guidance for fair value measurements establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.

For floor plan notes payable under the Floor Plan Facility, the amounts reported in the accompanying condensed consolidated balance sheets approximate the fair value due to their short-term nature or the existence of variable interest rates that approximate prevailing market rates.


	Fair Value	September 30, 2023				December 31, 2022				September 30, 2022				Fair Value	March 31, 2024				December 31, 2023				March 31, 2023
($ in thousands)	Measurement	Carrying Value		Fair Value		Carrying Value		Fair Value		Carrying Value		Fair Value		Measurement	Carrying Value		Fair Value		Carrying Value		Fair Value		Carrying Value		Fair Value
Term Loan Facility	Level 2	$	1,348,882	$	1,380,135	$	1,360,454	$	1,394,290	$	1,359,230	$	1,394,290	Level 2	$	1,343,580	$	1,322,077	$	1,346,229	$	1,328,892	$	1,354,221	$	1,387,212
Floor Plan Facility Revolving Line of Credit	Level 2		20,885		20,999		20,885		19,823		20,885		18,191	Level 2		31,885		33,134		20,885		21,732		20,885		21,213
Real Estate Facilities⁽¹⁾	Level 2		192,565		195,585		145,911		145,664		21,666		20,153	Level 2		219,068		230,710		183,892		195,029		202,452		211,085
Other Long-Term Debt	Level 2		8,327		6,700		3,280		2,944		3,311		2,926	Level 2		8,168		6,708		8,246		6,702		3,250		2,945

(1)	The carrying value of Real Estate Facilities at ~~September 30,~~December 31, 2023 ~~includes the $4.0~~and March 31, 2023, include $17.3 million and $7.7 million, respectively, reported as liabilities related to assets held for sale in the condensed consolidated balance sheet.

10. Commitments and Contingencies

Litigation

Weissmann Complaint

On June 22, 2021, FreedomRoads Holding Company, LLC (“FR Holdco”), an indirect wholly-owned subsidiary of CWGS, LLC, filed a one-count complaint captioned FreedomRoads Holding Company, LLC v. Steve Weissmann in the Circuit Court of Cook County, Illinois against Steve Weissmann (“Weissmann”) for breach of contractual obligation under note guarantee (the “Note”) (the “Weissmann Complaint”). On October 8, 2021, Weissmann brought a counterclaim against FR Holdco and third-party defendants Marcus Lemonis, NBCUniversal Media, LLC, the Consumer National Broadcasting Company, Camping World, Inc. (“CW”), and Machete Productions (“Machete”) (the “Weissmann Counterclaim”), in which he alleges claims in connection with the Note and his appearance on the reality television show The Profit. Weissmann alleges the following causes of action against FR Holdco and all third-party defendants, including CW: (i) fraud; (ii) fraud in the inducement; (iii) fraudulent concealment; (iv) breach of fiduciary duty; (v) defamation; (vi) defamation per se; (vii) false light; (viii) intentional infliction of emotional distress; (ix) negligence; (x) unjust enrichment; and (xi) RICO § 1962. Weissmann seeks costs and damages in an amount to be proven at trial but no less than the

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amount in the Note (approximately $2.5 million); in connection with his RICO claim, Weissmann asserts he is entitled to damages in the amount of three times the Note. On February 18, 2022, NBCUniversal, CNBC, and Machete filed a motion to compel arbitration (the “NBC Arbitration Motion”). On May 5, 2022, an agreed order was filed staying the litigation in favor of arbitration. On May 31, 2022, FR Holdco filed an arbitration demand against Weissmann for collection on the Note. Weissmann filed his response and counterclaims, and third-party claims against FR Holdco, CW, Marcus Lemonis, NBCUniversal, and Machete on July 7, 2022. On or about July 21, 2022, FR Holdco and the other respondents filed their responses and affirmative defenses. ~~The arbitration hearing is scheduled to begin~~On March 11, ~~2024.~~2024, FR Holdco’s arbitration demand and the Weissmann arbitration demand were tried before a single arbitrator pursuant to the JAMS streamlined arbitration rules in a confidential arbitration hearing. On April 23, 2024, the post-hearing briefing concluded and a decision is expected within thirty (30) days of that date.

Tumbleweed Complaint

On November 10, 2021, Tumbleweed Tiny House Company, Inc. (“Tumbleweed”) filed a complaint against FR Holdco, CW, Marcus Lemonis, NBCUniversal Media, LLC, and Machete Productions in which Tumbleweed alleges claims in connection with the Note and its appearance on the reality television show The

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Profit (the “Tumbleweed Complaint”), seeking primarily monetary damages. Tumbleweed alleges the following claims against the defendants, including FR Holdco and CW: (i) fraud; (ii) false promise; (iii) breach of fiduciary duty (and aiding and abetting the same); (iv) breach of contract; (v) breach of oral contract; (vi) tortious interference with prospective economic advantage; (vii) fraud in the inducement; (viii) negligent misrepresentation; (ix) fraudulent concealment; (x) conspiracy; (xi) unlawful business practices; (xii) defamation; and (xiii) declaratory judgment. On April 21, 2022, the Court granted a motion to compel arbitration filed by NBCUniversal and joined by all defendants, including FR Holdco, CW, and Marcus Lemonis, compelling Tumbleweed’s claims to arbitration. Tumbleweed served its arbitration demand on FR Holdco, CW, and Marcus Lemonis on May 17, 2022. FR Holdco, CW, and Marcus Lemonis filed responses and affirmative defenses on May 31, 2022. On July 20, 2022, pursuant to the JAMS streamlined arbitration rules, the Tumbleweed Complaint was consolidated together with the Weissmann Complaint. The parties have exchanged discovery. ~~The arbitration hearing is scheduled to begin~~On March 11, ~~2024.~~2024, FR Holdco’s arbitration demand and the Weissman arbitration demand were tried before a single arbitrator pursuant to the JAMS streamlined arbitration rules in a confidential arbitration hearing. On April 23, 2024, the post-hearing briefing concluded and a decision is expected within thirty (30) days of that date.

Precise Complaint

On May 3, 2022, Lynn E. Feldman, Esquire, in her capacity as the Chapter 7 Trustee (the “Trustee”) for the Estate of Precise Graphix, LLC (the “Precise Estate”) filed a complaint against NBCUniversal Media, LLC, Machete Corporation, and CW in which the Trustee alleges claims on behalf of the Precise Estate in connection with its appearance on The Profit and subsequent commercial relationship with CW (the “Precise Complaint”), seeking primarily monetary damages from CW. The Trustee alleges the following claims against defendants, including CW: (i) fraud; (ii) false promise; (iii) breach of fiduciary duty; (iv) breach of contract; (v) breach of oral contract; (vi) fraud in the inducement; (vii) negligent misrepresentation; (viii) fraudulent concealment; (ix) conspiracy; (x) unlawful business practices in violation of California Business and Professions Code §17200; (xi) aiding and abetting; (xii) breach of fiduciary duty; and (xiii) declaratory judgment. The Trustee did not serve the Precise Complaint on CW. On July 3, 2022, the Precise Estate filed its arbitration demand against CW, NBCUniversal, and Machete alleging substantially similar claims as the Precise Complaint. On April 4, 2023, the Precise Estate’s arbitration demand was tried before a single arbitrator pursuant to the JAMS streamlined arbitration rules in a confidential arbitration hearing. On May 31, 2023, the Arbitration was concluded and an award was entered by the Arbitrator against the Precise Estate in the amount of $7.1 million (the “Final Award”), of which CW would be entitled to $3.7 million. On June 13, 2023, the Trustee filed a notice of appeal of the Final Award with JAMS. On June 29, 2023, CW advanced the Trustee’s portion of the fee required by JAMS to advance the appeal. On July 5, 2023, CW filed an application in the United States Bankruptcy Court for the Eastern District of Pennsylvania (the “USBC”) seeking an order, inter alia, allowing the JAMS fee as an administrative expense of the Precise Estate. On July 14, 2023, the Trustee and respondents, including CW, filed a stipulation and agreed order (the “Stipulation”) as follows: (1) upon approval and entry of the Stipulation, CW’s claim for $3,500 shall be allowed and reimbursed; (2) the Trustee will notify JAMS that she is irrevocably withdrawing and ending her pending appeal of the Final Award; and (3) the Trustee will not dispute the amount of the Final Award. On July 17, 2023, the USBC entered the Stipulation as an order,

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which became final upon the expiration of the ten (10) day appeal period. Precise withdrew its appeal and on August 14, 2023 JAMS closed the arbitration. On September 25, 2023, the Superior Court of the State of California, upon motion by defendants, confirmed the arbitration award. On October 6, 2023, defendants filed an application in the matter of In re: Precise Graphix, LLC, pending in the United States Bankruptcy Court for the Eastern District of Pennsylvania (the “Bankruptcy Court”) seeking to have the fee award deemed an administrative expense in the Precise Estate. ~~Hearing on~~On April 4, 2024, the ~~application~~Trustee, CW, and the Precise Estate entered into a settlement agreement which provides for, among other things, an allowed claim against the Precise Estate in favor of CW in the amount of $3.7 million, a portion of which is ~~set for November 9, 2023.~~payable upon the entry of a final order of the Bankruptcy Estate approving the settlement agreement and mutual releases from the parties (the “Settlement Agreement”). On April 7, 2024, the Trustee filed a motion seeking approval of the Settlement Agreement.

General

While the outcome of litigation cannot be predicted with certainty, and some of these lawsuits, claims or proceedings may be determined adversely to the Company, management does not believe that the disposition of any such pending matters is likely to have a material adverse effect on the Company’s financial statements. The Company does not have sufficient information to estimate a possible loss or range of possible loss for the matters discussed above. No assurance can be made that these or similar suits will not result in a material financial exposure in excess of insurance coverage, which could have a material adverse effect upon the Company’s financial condition and results of operations.

From time to time, the Company is involved in other litigation arising in the normal course of business operations.

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Financial Assurances

In the normal course of business, the Company obtains standby letters of credit and surety bonds from financial institutions and other third parties. These instruments guarantee the Company’s future performance and provide third parties with financial and performance assurance in the event that the Company does not perform. These instruments support a wide variety of the Company’s business activities. As of ~~September 30, 2023,~~March 31, 2024, December 31, ~~2022,~~2023, and ~~September 30, 2022,~~March 31, 2023, outstanding standby letters of credit issued through our Floor Plan Facility were ~~$11.3~~$12.3 million, ~~$11.4~~$12.3 million, and $11.4 million, respectively (see Note 3 — Inventories and Floor Plan Payables). The outstanding standby letters of credit issued through the Senior Secured Credit Facilities as of March 31, 2024, December 31, 2023, and March 31, 2023 were $4.9 million ~~$4.9 million, and $4.9 million, respectively~~ (see ~~Note 3 — Inventories and Floor Plan Payables and~~ Note 7 — Long-Term Debt). As of ~~September 30,~~March 31, 2023, December 31, ~~2022,~~2023, and ~~September 30, 2022,~~March 31, 2023, outstanding surety bonds were ~~$24.6~~$24.4 million, ~~$22.0~~$23.2 million, and ~~$20.7~~$22.4 million, respectively. The underlying liabilities to which these instruments relate are reflected on the Company’s condensed consolidated balance sheets, where applicable. Therefore, no additional liability is reflected for the letters of credit and surety bonds themselves.

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11. Statement of Cash Flows

Supplemental disclosures of cash flow information for the following periods (in thousands) were as follows:



	Nine Months Ended September 30,				Three months ended March 31,
	2023		2022		2024		2023
Cash paid during the period for:
Cash paid (refunded) during the period for:
Interest	$	159,191	$	69,007	$	61,812	$	29,289
Income taxes		3,040		40,925		(111)		(93)
Non-cash investing and financing activities:
Vehicles transferred to property and equipment from inventory		378		945		143		136
Capital expenditures in accounts payable and accrued liabilities		13,637		12,834		6,203		6,068
Purchase of real property through assumption of other long-term debt		5,185		—
Note receivable exchanged for amounts owed by other investment		2,153		—
Prior period deposit applied to portion of purchase price of RV dealership acquisition						8,873		—
Par value of Class A common stock issued for redemption of common units in CWGS, LLC		20		1		—		20
Cost of treasury stock issued for vested restricted stock units		16,759		26,165		2,595		1,300

12. Acquisitions

During the ~~nine~~three months ended ~~September 30,~~March 31, 2024 and 2023, ~~and 2022,~~ subsidiaries of the Company acquired the assets of multiple RV dealerships ~~as well as an outdoor publication during the nine months ended September 30, 2022,~~ that constituted businesses under GAAP. The Company used cash and borrowings under its Floor Plan Facility to complete the acquisitions. The Company considers acquisitions of independent dealerships to be a fast and capital efficient alternative to opening new ~~RV dealership~~store locations to expand its business and grow its customer base. ~~Additionally, the Company considered the 2022 acquisition of the outdoor publication as a furtherance of its strategy to target a younger demographic of RV enthusiasts.~~ The acquired businesses were recorded at their estimated fair values under the acquisition method of accounting. The balance of the purchase prices in excess of the fair values of net assets acquired were recorded as goodwill.

During the ~~nine~~three months ended ~~September 30, 2023,~~March 31, 2024, the RV and Outdoor Retail segment acquired the assets of various RV dealerships comprised of 15nine locations for an aggregate purchase price of approximately ~~$150.5~~$67.7 million, of which ~~three~~one RV dealerships had not opened by ~~September 30, 2023.~~March 31, 2024. Separate from these acquisitions, during the ~~nine~~three months ended ~~September 30, 2023,~~March 31, 2024, the Company purchased real property for an aggregate purchase price of ~~$69.5 million, of which $5.2 million was paid through~~$1.2 million.

During the ~~assumption of~~three months ended March 31, 2023, the ~~related promissory note (see Note 7 — Long-Term Debt — Other Long-Term Debt).~~RV and Outdoor Retail segment did not acquire any RV dealerships.

2823

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During the nine months ended September 30, 2022, the RV and Outdoor Retail segment acquired the assets of various RV dealerships comprised of five locations for an aggregate purchase price of approximately $79.8 million. Also, during the nine months ended September 30, 2022, the Good Sam Services and Plans segment acquired the assets of the outdoor publication for $3.4 million. Separate from these acquisitions, during the nine months ended September 30, 2022, the Company purchased real property for an aggregate purchase price of $41.7 million.

The estimated fair values of the assets acquired and liabilities assumed for the acquisitions discussed above consist of the following, net of insignificant measurement period adjustments relating to acquisitions from the respective previous year:


	Nine Months Ended September 30,				Three Months Ended March 31,
($ in thousands)	2023		2022		2024		2023
Tangible assets (liabilities) acquired (assumed):
Accounts receivable, net	$	—	$	(68)
Inventories, net		83,939		30,828		40,394		(122)
Prepaid expenses and other assets		163		48
Property and equipment, net		1,147		206		287		—
Operating lease assets		916		739		15,328		—
Customer deposits		—		(77)
Accrued liabilities		(6)		75		(40)		—
Current portion of operating lease liabilities		(208)		(235)		(1,112)		—
Other current liabilities		(484)		—		(21)		—
Operating lease liabilities, net of current portion		(708)		(504)		(14,216)		—
Total tangible net assets acquired		84,759		31,012		40,620		(122)
Total intangible assets acquired		—		2,632		2,595		—
Goodwill		65,716		49,583		24,458		122
Purchase price of acquisitions						67,673		—
Application of deposit paid in prior period						(8,873)		—
Cash paid for acquisitions, net of cash acquired		150,475		83,227		58,800		—
Inventory purchases financed via floor plan		(70,568)		(19,971)		(48,684)		—
Cash payment net of floor plan financing	$	79,907	$	63,256	$	10,116	$	—

The fair values above for the three months ended March 31, 2024 are preliminary as they are subject to measurement period adjustments for up to one year from the date of acquisition as new information is obtained about facts and circumstances that existed as of the acquisition date relating to the valuation of the acquired assets, primarily the acquired inventories. For the ~~nine~~three months ended ~~September 30,~~March 31, 2024, the fair values include a measurement period adjustment to record $2.6 million of other intangible assets from a RV dealership acquisition that occurred during the year ended December 31, 2023. These intangible assets had an estimated useful life of 15 years; however, these intangible assets were sold for $2.6 million during the three months ended March 31, 2024. For the three months ended March 31, 2023, the fair values ~~above include~~represent measurement period adjustments for valuation of acquired inventories relating to dealership acquisitions during the year ended December 31, 2022. The measurement period relating to dealership acquisitions is typically open for twelve months from the acquisition date, primarily for refining the estimate of the fair value of acquired vehicle inventories.

The primary items that generated the goodwill are the value of the expected synergies between the acquired businesses and the Company and the acquired assembled workforce, neither of which qualify for recognition as a separately identified intangible asset. For the ~~nine~~three months ended ~~September 30,~~March 31, 2024 and 2023, ~~and 2022,~~ acquired goodwill of ~~$65.7~~$24.5 million and ~~$49.6~~$0.1 million, respectively, was expected to be deductible for tax purposes. For the nine months ended September 30, 2022, the Good Sam Services and Plans segment acquisition of the outdoor publication resulted in the recognition of intangible assets for trademarks and trade names of $2.1 million and other intangible assets of $0.5 million with estimated useful lives of 15 years and 3 years, respectively.

Included in the condensed consolidated financial statements for the ~~nine~~three months ended ~~September 30, 2023 and 2022 were~~March 31, 2024 was revenue of ~~$60.5~~$7.0 million and ~~$39.4 million, respectively, and~~insignificant pre-tax ~~loss of $2.4 million and pre-tax~~ income ~~of $1.4 million, respectively,~~ from the acquired dealerships from the applicable acquisition dates. Included in the condensed consolidated financial statements for the three months ended March 31, 2023 was no revenue or pre-tax income from acquired dealerships. Pro forma information on these acquisitions has not been included, because the Company has deemed them to not be individually or cumulatively material.

In October 2023, the Company announced its intent to acquire the assets of a consortium of twelve RV dealerships. The reasons for this acquisition and the primary items generating the goodwill are consistent with the previous RV dealership acquisitions discussed above. The Company anticipates that the acquisition will close by December 31, 2023.

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13. Income Taxes

CWH is organized as a Subchapter C corporation and, as of ~~September 30, 2023,~~March 31, 2024, is a ~~52.8%~~53.0% owner of CWGS, LLC (see Note 16 — Non-Controlling Interests). CWGS, LLC is organized as a limited liability company and treated as a partnership for U.S. federal and most applicable state and local income tax purposes and as such, is generally not subject to any U.S. federal entity-level income taxes. However, certain CWGS, LLC subsidiaries, including Americas Road and Travel Club, Inc. and FreedomRoads RV, Inc. and their wholly-owned subsidiaries, are subject to entity-level taxes as they are Subchapter C corporations (“C-Corps”).

~~LLC Conversion~~24

~~CW, including certain~~Table of its subsidiaries, were previously taxable as C-Corps and subject to entity-level taxes. CW had historically generated operating losses for tax purposes. Only losses subject to taxes in certain state jurisdictions were available to offset taxable income generated by the Company’s other businesses. The Company completed the steps necessary to convert CW and certain of its subsidiaries from C-Corps to LLCs with an effective date of January 2, 2023 (the “LLC Conversion”). All required filings for the conversion to LLCs were made by December 31, 2022. Accordingly, the effect of the LLC Conversion was recorded during the year ended December 31, 2022, pursuant to the rules prescribed under ASC 740, ~~Income Taxes~~, as the filings were perfunctory. Beginning with the year ending December 31, 2023, the operating losses of CW and its subsidiaries will offset taxable income generated by the Company’s other LLC businesses. As a result, both income tax expense recognized by CWH and the amount of required tax distributions paid to holders of common units in CWGS, LLC, under the CWGS LLC Agreement, will decrease. The LLC Conversion has allowed the Company to more easily integrate its retail and dealership operations and more seamlessly share resources within the RV and Outdoor Retail segment, while providing an expected future cash flow benefit for the operating companies.Contents

During the nine months ended September 30, 2023, the Company recorded income tax benefit of $0.7 million related to the LLC Conversion. Additionally, the Company recorded an income tax benefit of $4.3 million related to an entity classification election for an entity included in the LLC Conversion filed in the third quarter of 2023. The election is effective as of the date of the LLC Conversion.

Effective Income Tax Rate

For the ~~nine~~three months ended ~~September 30,~~March 31, 2024 and 2023, the Company's effective income tax rate was ~~14.9%~~15.1% and 5.3%, ~~which~~respectively. The effective tax rate differed from the federal statutory rate of 21.0% primarily due to state taxes and a portion of the Company’s earnings being attributable to non-controlling interests in limited liability companies, which are not subject to entity level ~~taxes, and~~taxes. Additionally, the ~~benefit for certain entity classification elections described above.~~

~~For the nine months ended September 30, 2022, the Company's~~March 31, 2023 effective ~~income~~ tax rate was ~~15.7%, which differed from~~further decreased by the ~~federal statutory rate of 21.0% primarily due to a portion~~benefit of the ~~Company’s earnings being attributable to non-controlling interests~~CWI LLC Conversion effective in limited liability companies, which are not subject to entity level taxes, net of income tax benefits of $0.8 million related to current state combined unitary losses. Additionally, for the nine months ended September 30, 2022, the Company reduced its deferred tax asset by $9.4 million relating to CWH’s investment in CWGS, LLC for the change in ownership of CWGS, LLC from the treasury stock repurchase of 2.6 million shares of Class A common stock (see Note 15 — Stockholders’ Equity). These treasury stock repurchases result in a commensurate reduction in common units in CWGS, LLC held by CWH.January 2023.

Tax Receivable Agreement

The Company is party to ~~the Tax~~a tax receivable agreement (the “Tax Receivable ~~Agreement~~Agreement”) that provides for the payment by the Company to the Continuing Equity Owners and Crestview Partners II GP, L.P. of 85% of the amount of tax benefits, if any, the Company actually realizes, or in some circumstances is deemed to realize, as a result of (i) increases in the tax basis from the purchase of common units from Crestview Partners II GP, ~~L.P.~~L.P in exchange for Class A common stock in connection with the consummation of the IPO and the related transactions and any future redemptions that are funded by the Company and any ~~future~~further redemptions of common units by Continuing Equity Owners ~~as described above~~ and (ii) certain other tax benefits attributable to payments made under the Tax Receivable Agreement.

~~Table~~ The above payments are predicated on CWGS, LLC making an election under Section 754 of ~~Contents~~the Internal Revenue Code effective for each tax year in which a redemption of common units for cash or stock occurs. These tax benefit payments are not conditioned upon one or more of the Continuing Equity Owners or Crestview Partners II GP, L.P. maintaining a continued ownership interest in CWGS, LLC. In general, the Continuing Equity Owners’ or Crestview Partners II GP, L.P.’s rights under the Tax Receivable Agreement are assignable, including to transferees of its common units in CWGS, LLC (other than the Company as transferee pursuant to a redemption of common units in CWGS, LLC). The Company expects to benefit from the remaining 15% of the tax benefits, if any, which may be realized.

On January 1, 2023, giftees of common units that had been gifted by CWGS Holding, LLC, a wholly-owned subsidiary of ML Acquisition Company, LLC, which is indirectly owned by Marcus Lemonis, the Company’s Chairman and Chief Executive Officer, redeemed 2.0 million common units in CWGS, LLC for 2.0 million shares of the Company’s Class A common stock (see Note 16 — Non-Controlling Interests). The increase in deferred tax assets, the non-current portion of the Tax Receivable Agreement liability, and additional paid-in capital resulting from these redemptions was $6.3 million, $5.4 million, and $0.9 million, respectively. Payments pursuant to the Tax Receivable Agreement relating to these redemptions will begin during the year ending December 31, 2024.

During the ~~nine~~three months ended September 30, 2022, the Tax Receivable Agreement liability and the related Deferred Tax Assets for the Tax Receivable Agreement liability and the investment in CWGS, LLC increased $0.4 million and $0.5 million, respectively, as a resultMarch 31, 2024, there were no redemptions of acommon units by Continuing Equity Owner’s redemption of 50,000 common units in CWGS, LLC for 50,000 shares of the Company’s Class A common stock and were recorded to additional paid-in capital (see the condensed consolidated statements of stockholders’ equity). Payments pursuant to the Tax Receivable Agreement relating to this redemption began during the year ending December 31, 2023.Owners.

14. Related Party Transactions

Transactions with Directors, Equity Holders and Executive Officers

FreedomRoads leases various RV dealership locations from managers and officers. During the ~~nine~~three months ended ~~September 30,~~March 31, 2023, ~~and 2022,~~ the related party lease expense for these locations was ~~$3.2~~$1.5 million, ~~and $1.9 million, respectively,~~ which ~~were~~was included in selling, general, and administrative expenses in the condensed consolidated statements of operations. For the three months ended March 31, 2024 there was no related party lease expense.

InFrom January 2012 until its expiration in March 2024, FreedomRoads ~~entered into a lease for~~was the ~~offices~~lessee of what is now its previous corporate headquarters in Lincolnshire, Illinois ~~which was~~(as amended ~~in March 2013, November 2019, October 2020, and October 2021 (the~~from time to time, the “Lincolnshire Lease”). For the three months ended ~~September 30,~~March 31, 2024 and 2023, ~~and 2022,~~ rental payments for the Lincolnshire Lease, including common area maintenance charges, were each $0.2 ~~million. For the nine months ended September 30, 2023 and 2022, rental payments for the Lincolnshire Lease, including common area maintenance charges, were each $0.7 million. These rental payments~~million, which were included in selling, general, and administrative expenses in the condensed consolidated statements of operations. The Company’s Chairman and Chief Executive Officer ~~has~~had personally guaranteed the Lincolnshire Lease.

~~Other Transactions~~25

~~The Company paid Kaplan, Strangis and Kaplan, P.A.,~~Table of which Andris A. Baltins is a member, and a member of the Company’s Board of Directors, $0.2 million during the nine months ended September 30, 2022 for legal services, which were included in selling, general, and administrative expenses in the condensed consolidated statements of operations.Contents

15. Stockholders’ Equity

Stock Repurchase Program

During the ~~nine~~three months ended ~~September 30, 2023~~March 31, 2024 and three months ended ~~September 30, 2022,~~March 31, 2023, the Company did not repurchase Class A common stock under the stock repurchase program. During the nine months ended September 30, 2022, the Company repurchased 2,592,524 shares of Class A common stock under this program for approximately $79.8 million, including commissions paid, at a weighted average price per share of $30.76, which was recorded as treasury stock on the condensed consolidated balance sheets. Class A common stock held as treasury stock is not considered outstanding. During the nine months ended September 30, 2023 and 2022, the Company reissued 339,230 and 540,646 shares of Class A common stock from treasury stock, respectively, to settle the exercises of stock options and vesting of restricted stock units.

~~Table of Contents~~

Repurchases under the stock repurchase program are subject to any applicable limitations on the availability of funds to be distributed to the Company by CWGS, LLC to fund repurchases and may be made in the open market, in privately negotiated transactions or otherwise, with the amount and timing of repurchases to be determined at the Company’s discretion, depending on market conditions and corporate needs. Open market repurchases will be structured to occur in accordance with applicable federal securities laws, including within the pricing and volume requirements of Rule 10b-18 under the Securities Exchange Act of 1934, as amended. The Company may also, from time to time, enter into Rule 10b5-1 plans to facilitate repurchases of its shares under this authorization. This program does not obligate the Company to acquire any particular amount of Class A common stock and the program may be extended, modified, suspended or discontinued at any time at the Board’s discretion. The Company expects to fund the repurchases using cash on hand. As of ~~September 30, 2023,~~March 31, 2024, the remaining approved amount for repurchases of Class A common stock under the share repurchase program was approximately $120.2 million and the program expires on December 31, 2025.

16. Non-Controlling Interests

CWH is the sole managing member of CWGS, LLC and, as a result, consolidates the financial results of CWGS, LLC. The Company reports a non-controlling interest representing the common units of CWGS, LLC held by Continuing Equity Owners. Changes in CWH’s ownership interest in CWGS, LLC while CWH retains its controlling interest in CWGS, LLC will be accounted for as equity transactions. As such, future redemptions of common units of CWGS, LLC by the Continuing Equity Owners will result in a change in ownership and reduce or increase the amount recorded as non-controlling interest and increase or decrease additional paid-in capital when CWGS, LLC has positive or negative net assets, respectively. At the end of each period, the Company will record a non-controlling interest adjustment to additional paid-in capital such that the non-controlling interest on the condensed consolidated balance sheet is equal to the non-controlling interest’s ownership share of the underlying CWGS, LLC net assets (see the condensed consolidated statement of stockholders’ equity).

The following table summarizes the CWGS, LLC common unit ownership by CWH and the Continuing Equity Owners:


	As of September 30, 2023				As of December 31, 2022				As of September 30, 2022				As of March 31, 2024				As of December 31, 2023				As of March 31, 2023
	Common Units		Ownership %		Common Units		Ownership %		Common Units		Ownership %		Common Units		Ownership %		Common Units		Ownership %		Common Units		Ownership %
CWH		44,780,170		52.8%		42,440,940		50.2%		42,129,078		50.1%		45,071,762		53.0%		45,020,116		52.9%		44,466,636		52.6%
Continuing Equity Owners		40,044,536		47.2%		42,044,536		49.8%		42,044,536		49.9%		40,044,536		47.0%		40,044,536		47.1%		40,044,536		47.4%
Total		84,824,706		100.0%		84,485,476		100.0%		84,173,614		100.0%		85,116,298		100.0%		85,064,652		100.0%		84,511,172		100.0%

During December 2022, CWGS Holding, LLC, a wholly-owned subsidiary of ML Acquisition Company, LLC, which is indirectly owned by ~~each of~~The Stephen Adams ~~a former member of the Company’s Board of Directors,~~Living Trust and Marcus Lemonis, the Company’s Chairman and Chief Executive Officer, gifted 2,000,000 common units of CWGS, LLC in total to a college and hospital (“2022 Common Unit Giftees”), which resulted in the corresponding 2,000,000 shares of Class B common stock being transferred to the 2022 Common Unit Giftees. On January 1, 2023, the 2022 Common Unit Giftees redeemed the 2,000,000 common units of CWGS, LLC for 2,000,000 shares of the Company’s Class A common stock, which also resulted in the cancellation of

~~Table of Contents~~

2,000,000 shares of the Company’s Class B common stock that had been transferred to the 2022 Common Unit Giftees with no additional consideration provided.

The following table summarizes the effects of changes in ownership in CWGS, LLC on the Company’s equity:


	Three Months Ended September 30,				Nine Months Ended September 30,				Three Months Ended March 31,
($ in thousands)	2023		2022		2023		2022		2024		2023
Net income attributable to Camping World Holdings, Inc.	$	15,961	$	41,126	$	47,833	$	170,167
Net (loss) income attributable to Camping World Holdings, Inc.									$	(22,307)	$	3,169
Transfers to non-controlling interests:
Decrease in additional paid-in capital as a result of the purchase of common units from CWGS, LLC with proceeds from the exercise of stock options		(46)		(20)		(133)		(149)		(22)		(17)
Decrease in additional paid-in capital as a result of the vesting of restricted stock units		(11,313)		(14,713)		(14,382)		(22,342)		(2,234)		(1,104)
Increase in additional paid-in capital as a result of repurchases of Class A common stock for withholding taxes on vested RSUs		1,089		829		1,304		1,120		209		128
Increase in additional paid-in capital as a result of repurchases of Class A common stock for treasury stock		—		—		—		28,398
Increase in additional paid-in capital as a result of the redemption of common units of CWGS, LLC		—		—		9,673		416		—		9,673
Change from net income attributable to Camping World Holdings, Inc. and transfers to non-controlling interests	$	5,691	$	27,222	$	44,295	$	177,610
Change from net (loss) income attributable to Camping World Holdings, Inc. and transfers to non-controlling interests									$	(24,354)	$	11,849

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17. Equity-Based Compensation Plans

The following table summarizes the equity-based compensation that has been included in the following line items within the condensed consolidated statements of operations during:


	Three Months Ended September 30,				Nine Months Ended September 30,				Three Months Ended March 31,
($ in thousands)	2023		2022		2023		2022		2024		2023
Equity-based compensation expense:
Costs applicable to revenue	$	142	$	196	$	496	$	559	$	92	$	132
Selling, general, and administrative		5,324		6,596		17,820		26,875		5,105		6,226
Total equity-based compensation expense	$	5,466	$	6,792	$	18,316	$	27,434	$	5,197	$	6,358

The following table summarizes stock option activity for the ~~nine~~three months ended ~~September 30, 2023:~~March 31, 2024:




	Stock Options
	(in thousands)
Outstanding at December 31, ~~2022~~2023		~~238~~193
Exercised		~~(15)~~(2)
Forfeited		~~(20)~~(4)
Outstanding and exercisable at ~~September 30, 2023~~March 31, 2024		~~203~~187

The following table summarizes restricted stock unit (“RSU”) activity for the ~~nine~~three months ended ~~September 30, 2023:~~March 31, 2024:


	Restricted
	Stock Units
	(in thousands)
Outstanding at December 31, ~~2022~~2023		~~2,549~~1,875
Granted		~~461~~289
Vested		~~(478)~~(74)
Forfeited		~~(321)~~(23)
Outstanding at ~~September 30, 2023~~March 31, 2024		~~2,211~~2,067

During the ~~nine~~three months ended ~~September 30, 2023,~~March 31, 2024, the Company granted ~~429,338~~289,250 RSUs to employees and a newly-appointed nonemployee director with an aggregate grant date fair value of ~~$8.5~~$7.4 million and weighted-average grant date fair value

~~Table~~ of ~~Contents~~

~~of $19.73~~$25.59 per RSU, which will be recognized, net of forfeitures, over a vesting period of five ~~years. In accordance with~~years for employees and one year for the ~~Company’s non-employee director compensation policy, five members~~nonemployee director.

18. (Loss) Earnings Per Share

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

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


	Three Months Ended March 31,
(In thousands except per share amounts)	2024		2023
Numerator:
Net (loss) income	$	(50,806)	$	4,903
Less: net (loss) income attributable to non-controlling interests		28,499		(1,734)
Net (loss) income attributable to Camping World Holdings, Inc. — basic	$	(22,307)	$	3,169
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		(21,275)		1,297
Net (loss) income attributable to Camping World Holdings, Inc. — diluted	$	(43,582)	$	4,466
Denominator:
Weighted-average shares of Class A common stock outstanding — basic		45,047		44,455
Dilutive options to purchase Class A common stock		—		15
Dilutive restricted stock units		—		202
Dilutive common units of CWGS, LLC that are convertible into Class A common stock		40,045		40,045
Weighted-average shares of Class A common stock outstanding — diluted		85,092		84,717

(Loss) earnings per share of Class A common stock — basic	$	(0.50)	$	0.07
(Loss) earnings per share of Class A common stock — diluted	$	(0.51)	$	0.05

Weighted-average anti-dilutive securities excluded from the computation of diluted (loss) earnings per share of Class A common stock:
Stock options to purchase Class A common stock		189		—
Restricted stock units		1,841		2,122

Shares of the Company’s ~~Board of Directors each received grants of 6,240 RSUs on~~Class B common stock and Class C common stock do not share in the ~~date~~earnings or losses of the ~~Company’s annual stockholders’ meeting in May 2023 with a grant date fair value~~Company and are therefore not participating securities. As such, separate basic and diluted (loss) earnings per share of ~~$24.04 per RSU, which will be recognized, net of forfeitures, over a vesting period of one year.~~Class B common stock or Class C common stock under the two-class method has not been presented.

~~18. Earnings Per Share~~19. Segments Information

Basic earnings per share of Class A common stock is computed by dividing net income attributable to Camping World Holdings, Inc. by the weighted-average number of shares of Class A common stock outstanding during the period. Diluted earnings per share of Class A common stock is computed by dividing net income 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~~Reportable segment revenue; segment income; floor plan interest expense; depreciation and ~~denominators used to compute basic~~amortization; other interest expense, net; and ~~diluted earnings per share of Class A common stock:~~total assets are as follows:

Three Months Ended September 30,

Nine Months Ended September 30,
(In thousands except per share amounts)

2023

2022

2023

2022
Numerator:

Net income

$
30,893

$
102,948

$
100,519

$
408,232
Less: net income attributable to non-controlling interests

(14,932)

(61,822)

(52,686)

(238,065)
Net income attributable to Camping World Holdings, Inc. — basic

$
15,961

$
41,126

47,833

170,167
Add: reallocation of net income attributable to non-controlling interests from the assumed dilutive effect of stock options and RSUs

—

281

—

1,019
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

11,468

—

40,037

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

$
27,429

$
41,407

$
87,870

$
171,186
Denominator:

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

44,666

41,985

44,538

42,419
Dilutive options to purchase Class A common stock

35

53

26

62
Dilutive restricted stock units

434

467

308

466
Dilutive common units of CWGS, LLC that are convertible into Class A common stock

40,045

—

40,045

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

85,180

42,505

84,917

42,947

Earnings per share of Class A common stock — basic

$
0.36

$
0.98

$
1.07

$
4.01
Earnings per share of Class A common stock — diluted

$
0.32

$
0.97

$
1.03

$
3.99

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

Restricted stock units

852

1,396

1,353

2,094
Common units of CWGS, LLC that are convertible into Class A common stock

—

42,045

—

42,045

Shares of the Company’s Class B common stock and Class C common stock do not share in the earnings or losses of the Company and are therefore not participating securities. As such, separate basic and diluted earnings per share of Class B common stock or Class C common stock under the two-class method has not been presented.


	Three Months Ended March 31, 2024
	Good Sam		RV and
	Services		Outdoor		Intersegment
($ in thousands)	and Plans		Retail		Eliminations		Total
Revenue:
Good Sam services and plans	$	46,611	$	—	$	(930)	$	45,681
New vehicles		—		657,521		(1,435)		656,086
Used vehicles		—		338,452		(767)		337,685
Products, service and other		—		178,015		(121)		177,894
Finance and insurance, net		—		135,852		(398)		135,454
Good Sam Club		—		11,217		—		11,217
Total consolidated revenue	$	46,611	$	1,321,057	$	(3,651)	$	1,364,017

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~~19. Segments Information~~

~~Reportable segment revenue; segment income; floor plan interest expense; depreciation and amortization; other interest expense, net; and total assets are as follows:~~

	Three Months Ended March 31, 2023
	Good Sam		RV and
	Services		Outdoor		Intersegment
($ in thousands)	and Plans		Retail		Eliminations		Total
Revenue:
Good Sam services and plans	$	46,963	$	—	$	(596)	$	46,367
New vehicles		—		647,930		(1,178)		646,752
Used vehicles		—		445,687		(941)		444,746
Products, service and other		—		207,835		(174)		207,661
Finance and insurance, net		—		130,305		(533)		129,772
Good Sam Club		—		11,582		—		11,582
Total consolidated revenue	$	46,963	$	1,443,339	$	(3,422)	$	1,486,880

Three Months Ended September 30, 2023

Three Months Ended September 30, 2022

Good Sam

RV and

Good Sam

RV and

Services

Outdoor

Intersegment

Services

Outdoor

Intersegment

($ in thousands)

and Plans

Retail

Eliminations

Total

and Plans

Retail

Eliminations

Total
Revenue:

Good Sam services and plans

$
50,022

$
—

$
(133)

$
49,889

$
50,413

$
—

$
(61)

$
50,352
New vehicles

—

680,497

(1,290)

679,207

—

835,596

(1,484)

834,112
Used vehicles

—

591,494

(1,267)

590,227

—

527,078

(1,090)

525,988
Products, service and other

—

235,764

(155)

235,609

—

269,177

(237)

268,940
Finance and insurance, net

—

164,573

(943)

163,630

—

169,825

(4,689)

165,136
Good Sam Club

—

11,051

—

11,051

—

11,154

—

11,154
Total consolidated revenue

$
50,022

$
1,683,379

$
(3,788)

$
1,729,613

$
50,413

$
1,812,830

$
(7,561)

$
1,855,682

Nine Months Ended September 30, 2023

Nine Months Ended September 30, 2022

Good Sam

RV and

Good Sam

RV and

Services

Outdoor

Intersegment

Services

Outdoor

Intersegment

($ in thousands)

and Plans

Retail

Eliminations

Total

and Plans

Retail

Eliminations

Total
Revenue:

Good Sam services and plans

$
148,117

$
—

$
(823)

$
147,294

$
144,914

$
—

$
(410)

$
144,504
New vehicles

—

2,130,930

(4,068)

2,126,862

—

2,751,391

(5,068)

2,746,323
Used vehicles

—

1,661,472

(3,537)

1,657,935

—

1,488,078

(3,100)

1,484,978
Products, service and other

—

691,557

(527)

691,030

—

762,724

(810)

761,914
Finance and insurance, net

—

462,899

(2,563)

460,336

—

528,798

(14,877)

513,921
Good Sam Club

—

33,757

—

33,757

—

35,070

—

35,070
Total consolidated revenue

$
148,117

$
4,980,615

$
(11,518)

$
5,117,214

$
144,914

$
5,566,061

$
(24,265)

$
5,686,710


	Three Months Ended September 30,				Nine Months Ended September 30,				Three Months Ended March 31,
($ in thousands)	2023		2022		2023		2022		2024		2023
Segment income:⁽¹⁾
Segment (loss) income:⁽¹⁾
Good Sam Services and Plans	$	32,684	$	23,946	$	83,143	$	67,242	$	22,583	$	23,619
RV and Outdoor Retail		56,543		143,098		195,283		538,082		(23,391)		32,584
Total segment income		89,227		167,044		278,426		605,324
Total segment (loss) income										(808)		56,203
Corporate & other		(3,498)		(2,789)		(11,060)		(9,681)		(3,562)		(3,777)
Depreciation and amortization		(17,619)		(18,207)		(49,462)		(61,369)		(19,290)		(14,637)
Other interest expense, net		(35,242)		(20,526)		(99,873)		(49,762)		(36,094)		(31,113)
Tax Receivable Agreement liability adjustment		1,680		—		1,680		—
Other income (expense), net		24		(177)		(1,659)		(472)
Income before income taxes	$	34,572	$	125,345	$	118,052	$	484,040
Other expense, net										(94)		(1,500)
(Loss) income before income taxes									$	(59,848)	$	5,176

(1)

Segment income is defined as income from operations before depreciation and amortization plus floor plan interest expense.


	Three Months Ended September 30,				Nine Months Ended September 30,				Three Months Ended March 31,
($ in thousands)	2023		2022		2023		2022		2024		2023
Depreciation and amortization:
Good Sam Services and Plans	$	735	$	979	$	2,461	$	2,478	$	848	$	952
RV and Outdoor Retail		16,884		17,228		47,001		58,891		18,442		13,685
Total depreciation and amortization	$	17,619	$	18,207	$	49,462	$	61,369	$	19,290	$	14,637


	Three Months Ended September 30,				Nine Months Ended September 30,				Three Months Ended March 31,
($ in thousands)	2023		2022		2023		2022		2024		2023
Other interest expense, net:
Good Sam Services and Plans	$	(68)	$	22	$	(177)	$	24	$	(18)	$	(55)
RV and Outdoor Retail		7,178		3,865		19,960		9,791		8,114		5,797
Subtotal		7,110		3,887		19,783		9,815		8,096		5,742
Corporate & other		28,132		16,639		80,090		39,947		27,998		25,371
Total other interest expense, net	$	35,242	$	20,526	$	99,873	$	49,762	$	36,094	$	31,113


	March 31,		December 31,		March 31,
($ in thousands)	2024		2023		2023
Assets:
Good Sam Services and Plans	$	83,411	$	113,619	$	89,308
RV and Outdoor Retail		4,744,164		4,568,372		4,331,314
Subtotal		4,827,575		4,681,991		4,420,622
Corporate & other		195,587		163,693		209,891
Total assets	$	5,023,162	$	4,845,684	$	4,630,513

20. Subsequent Event

On May 3, 2024, the Company closed on the sale of certain assets of the RV and Outdoor Retail segment’s RV furniture business (“CWDS”) and, in connection with the sale, entered into a supply agreement with the buyer. The total cash consideration is expected to be between $19.0 million and $21.0 million. The

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September 30,

December 31,

September 30,
($ in thousands)

2023

2022

2022
Assets:

Good Sam Services and Plans

$
91,887

$
130,841

$
93,539
RV and Outdoor Retail

4,383,561

4,448,354

4,150,947
Subtotal

4,475,448

4,579,195

4,244,486
Corporate & other

181,811

220,952

266,900
Total assets

$
4,657,259

$
4,800,147

$
4,511,386

Company expects to recognize an immaterial loss on the transaction. The Company believes that it will gain operational efficiencies by exiting the manufacture of RV furniture and focusing its resources on the sourcing and sale of its products. CWDS did not meet the criteria to be reported as held for sale as of March 31, 2024 and the loss on sale of CWDS will be recorded in loss (gain) on sale or disposal of assets in the condensed consolidated statements of operations for the three months ended June 30, 2024.

Item 2: Management’s Discussion and Analysis of Financial Condition and Results of Operations

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis of our financial condition and results of operations should be read together with our financial statements and related notes included in Part I, Item 1 of this Form 10-Q, as well as our Annual Report on Form 10-K for the year ended December 31, ~~2022~~2023, filed with the SEC on February 26, 2024 (the “Annual Report”). This discussion contains forward-looking statements based upon current plans, expectations and beliefs involving risks and uncertainties. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of various important factors, including those set forth under “Risk Factors” included in Part I, Item 1A of our Annual Report, Part II, Item 1A of this Form 10-Q, the “Cautionary Note Regarding Forward-Looking Statements” in this Form 10-Q and in other parts of this Form 10-Q. Except to the extent that differences among reportable segments are material to an understanding of our business taken as a whole, we present the discussion in Management’s Discussion and Analysis of Financial Condition and Results of Operations on a consolidated basis.

For purposes of this Form 10-Q, we define an "Active Customer" as a customer who has transacted with us in any of the eight most recently completed fiscal quarters prior to the date of measurement. Unless otherwise indicated, the date of measurement is ~~September 30, 2023,~~March 31, 2024, our most recently completed fiscal quarter.

Overview

Camping World Holdings, Inc. (together with its subsidiaries) is ~~America’s~~the world’s largest retailer of ~~recreational~~ RVs and related products and services. Our vision is to build a long-term legacy business that makes RVing fun and easy, and 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 stockholders 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 associates 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~~services and ~~services~~plans uniquely enables us to connect with our customers as stewards of the RV lifestyle. On ~~September 30, 2023,~~March 31, 2024, we operated a total of ~~209~~215 locations, ~~which sell~~with all of them selling and/or ~~service~~servicing RVs. See Note 1 – Summary of Significant Accounting Policies to our condensed consolidated financial statements included in Part I, Item 1 of this Form 10-Q.

A summary of the changes in quantities and types of retail stores and changes in same stores from ~~September 30, 2022~~March 31, 2023 to ~~September 30, 2023,~~March 31, 2024, are in the table below:

RV
RV Service &
Other

Same

Dealerships
Retail Centers
Retail Stores

Total

Store⁽¹⁾
Number of store locations as of September 30, 2022

184

8

1

193

168
Opened ⁽²⁾

20

2

—

22

—
Converted

2

(2)

—

—

(2)
Closed

(1)

(4)

(1)

(6)

(6)
Achieved designation of same store ⁽¹⁾

—

—

—

—

15
Number of store locations as of September 30, 2023

205

4

—

209

175

~~Table of Contents~~


	RV		RV Service &		Other			Same
	Dealerships		Retail Centers		Retail Stores		Total	Store⁽¹⁾
Number of store locations as of March 31, 2023		188		6		1	195	179
Opened		32		1		—	33	—
Converted		1		(1)		—	—	(1)
Closed		(10)		(2)		(1)	(13)	(12)
Achieved designation of same store ⁽¹⁾							—	16
Number of store locations as of March 31, 2024		211		4		—	215	182

(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)~~

Three recently acquired RV dealerships had not opened as of September 30, 2023 (See Note 12 – Acquisitions to our condensed consolidated financial statements included in Part I, Item 1 of this Form 10-Q).

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Strategic Review

As disclosed in our Annual Report, on January 17, 2024, we announced that we are reviewing potential strategic alternatives for our Good Sam business, which could include a potential sale, spin off or other disposition of the business. No decision has been made whether to proceed with any particular alternative. We have not set a deadline for the strategic alternatives review process, and there can be no assurance that this process will result in any particular outcome.

Industry Trends

According to the RV Industry Association’s survey of manufacturers, which almost entirely focuses on North America, wholesale shipments of new RVs for ~~2022~~2023 were ~~493,268~~313,174 units, ~~17.8%~~36.5% less than in ~~2021,~~2022. According to their most recent quarterly publication of Roadsigns, they noted that annual shipments formed a tentative low in October 2023 and began to rise to the ~~all-time record year for~~end of the year. They predict a slow rise in RV shipments ~~but was still the third best year on record. Wholesale shipments of new RVs~~ for the first ~~nine months~~half of ~~2023 were 42.8% less than~~2024, with a more accelerated rise in the ~~first nine months~~second half of ~~2022, primarily due~~2024, to ~~reduced shipments~~total approximately 350,000 units shipped for total 2024, an increase of ~~towable vehicles.~~

Thor Industries, our largest supplier of RVs, disclosed in its Form 10-K for the fiscal year ended July 31, 2023 as filed with the Securities and Exchange Commission on September 25, 2023 that its North American RV order backlog had declined 67% compared to July 31, 2022, primarily as a result of a reduction in orders from independent dealers. Thor Industries also disclosed that it believes that as of July 31, 2023, the North American RV independent dealer inventory levels were generally higher than comfortable stocking levels for most of its towable products and generally aligned with desired levels for its motorized products.13.8%.

The per unit cost of new vehicles ~~has~~in fiscal year 2022 and 2023 had been significantly higher than we experienced prior to the COVID-19 pandemic, due to the RV manufacturers’ supply constraints during the pandemic, strong demand for new vehicles during the pandemic, higher inflation, and higher interest rates. These higher costs had been partially mitigated by the higher average selling prices on new vehicles initially, but we experienced a decrease in new vehicle gross margins during the year ended December 31, 2022, which ~~has~~ continued ~~during~~in 2023, as a result of these higher costs. We experienced a ~~5.7%~~4.3% decrease in the average sale price of new vehicles during ~~the third quarter of~~fiscal year 2023 compared to ~~the same period of~~ 2022, driven by more price sensitive customers in a higher interest rate environment. We expect average selling prices may continue to decrease over time as industry-wide supply continues to normalize, which may continue to reduce new vehicle gross profit per unit. We will continue to evaluate supplier pricing and the mix of our vehicle offerings, such as lower-priced towables, among other criteria, as part of our vehicle procurement process.

~~Certain~~Since certain of our RV manufacturers ~~have~~had indicated that they ~~expect~~expected new towable vehicle average manufacturer selling prices to decline by up to 10% for 2024 model year vehicles, we focused on clearing out a significant portion of our pre-2024 model year new vehicles primarily during the fourth quarter of 2023 and early 2024 to improve the mix of our new vehicle inventory toward the lower cost 2024 model year vehicles. ~~A decrease in~~These new vehicle cost decreases further decreased average selling prices ~~for new towable vehicles may lead to additional discounting on~~of new vehicles ~~from prior model years, which could negatively impact our near-term new vehicle gross margins as we sell through our stock of pre-2024 model year vehicles.~~ in 2024.

Additionally, these new vehicle price pressures ~~could~~have resulted, and may continue to result, in a decline in residual values of used vehicles, which ~~may lead~~led us to discount used vehicle pricing in order to maintain ~~our rate of sale and inventory turns,~~used vehicles as a lower cost alternative to new vehicles, which ~~could~~has negatively ~~impact~~impacted used vehicle gross margins. ~~Certain finance and insurance and Good Sam services and plans revenues that are at least partially based on new and/or~~We also experienced lower used vehicle inventory levels in 2024 as we slowed procurement to allow RV owner pricing ~~could be negatively impacted by new and/or used vehicle average selling price decreases.~~expectations to adjust as a result of 2024 model year pricing declines.

Financial Institutions

The Company maintains the majority of its cash and cash equivalents in accounts with major U.S. and multi-national financial institutions, and our deposits at certain of these institutions exceed insured limits. Market conditions can impact the viability of these institutions. In the event of failure of any of the financial institutions where we maintain our cash and cash equivalents, there can be no assurance that we will be able to access uninsured funds in a timely manner or at all.

3731

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Inflation

~~During the nine months ended September 30, 2023,~~As noted in “Industry Trends” above, we have experienced ~~the impact of inflation on our operations, particularly~~deflation with ~~the increased cost of new vehicles. The price risk relating~~respect to new vehicles ~~includes the cost from the manufacturer, as well as freight~~ and, logistics costs. Each of these costs have been impacted, to differing degrees, by factors such as high demand for product, supply chain disruptions, labor shortages, and increased fuel costs, some of which were caused, in part, by the COVID-19 pandemic. These cost pressures began to recede during the third quarter of 2023 and we expect this trend to continue into 2024.

~~We have increased labor rates~~ as a ~~response to the generally higher~~byproduct of that new vehicle cost decrease, used vehicles. New and used vehicles regularly represent a majority of ~~living experienced in much of the United States in recent quarters. While we regularly review~~ our compensation arrangements to ensure that our pay practices are competitive, we made meaningful adjustments to labor rates, largely in the fourth quarter of 2022, which were mostly offset by other cost reductions which included reduced headcount in the fourth quarter of 2022 and the elimination or reduction of underperforming assets, locations, and business lines. Additionally, during September and October of 2023, we implemented employee headcount reductions and adjustments to employee variable compensation plans that are expected to result in approximately $60.0 million of annual cost savings, primarily for selling, general and administrative expenses. These cost savings exclude any additional employee headcount from our expected expansion of store locations.

~~Inflationary~~costs. However, inflationary factors, such as increases to our other product and overhead costs, may adversely affect our operating results if the selling prices of our products and services do not increase proportionately with those increased costs or if demand for our products and services declines as a result of price increases to address inflationary costs. We finance substantially all of our new vehicle inventory and certain of our used vehicle inventory through revolving floor plan arrangements. Inflationary increases in the costs of new and/or used vehicles financed through the revolving floor plan arrangement result in an increase in the outstanding principal balance of the revolving floor plan arrangement. Additionally, our leases require us to pay taxes, maintenance, repairs, insurance and utilities, all of which are generally subject to inflationary increases. Further, the cost of remodeling acquired RV dealership locations and constructing new RV dealership locations is subject to inflationary increases in the costs of labor and material, which results in higher rent expense on new RV dealership locations. Finally, our credit agreements include interest rates that vary based on various benchmarks. Such rates have historically increased during periods of increasing inflation.

Restructuring

In 2019, we made a strategic decision to refocus our business around our core RV competencies (the “2019 Strategic Shift”). The Company does not expect to close additional locations or incur further one-time termination benefits or incremental reserve charges in connection with the 2019 Strategic Shift. The remaining potential ongoing charges under the 2019 Strategic Shift relate to lease termination costs and other associated costs relating to the leases of previously closed locations under the 2019 Strategic Shift. The process of identifying subtenants and negotiating lease terminations has been delayed,, which ~~initially~~ was in part due to the COVID-19 pandemic, and these delays are expected to continue. The timing of these negotiations will vary as both subleases and terminations are contingent on landlord approvals. We expect that certain of the remaining leases under the 2019 Strategic Shift will be subleased or terminatedsubstantially complete by December 31, ~~2023.~~

2021. On March 1, 2023, our management determined to implement plans (the “Active Sports Restructuring”) to exit and restructure operations of our indirect subsidiary, Active Sports, LLC, a specialty products retail business (“Active Sports”)~~. The activities under the Active Sports Restructuring are expected to be~~, which was substantially ~~completed~~complete by December 31, 2023. ~~The total restructuring costs associated with~~For the 2019 Strategic Shift and Active Sports Restructuring, the remaining potential ongoing charges related to lease termination costs and other associated costs relating to the leases of certain previously closed locations and facilities. The timing of sublease and/or termination negotiations will vary as both are ~~estimated~~contingent on landlord approvals. We expect that the ongoing lease-related costs relating to the 2019 Strategic Shift and Active Sports Restructuring, net of associated sublease income, will be ~~in the range of $5.2~~less than $4.0 million ~~to $5.5 million.~~

and $1.1 million per year, respectively. See Note 4 — Restructuring and Long-Lived Asset Impairment to our condensed consolidated financial statements included in Part I, Item 1 of this Form 10-Q.

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

~~Beginning~~New vehicle gross margins in the first quarter of ~~2021 and continuing through the~~2024 were relatively similar to first quarter of 2023 ~~we experienced sequential decreases in new vehicle gross margin, primarily due to~~and within the ~~higher cost~~range of ~~new vehicles resulting from the lower industry supply of travel trailers and motorhomes for much of 2021. Additionally, new and used vehicle~~ gross margins ~~have declined~~ for ~~each~~the pre-COVID-19 pandemic periods presented in the table below. As discussed in “Industry Trends” above, first quarter of ~~the first three quarters of 2023 compared to the corresponding periods in 2022. However, third quarter 2023~~2024 new vehicle gross margins were ~~slightly~~negatively impacted by clearing out the higher ~~than a similar range that we experienced in the third quarter pre-COVID-19 pandemic periods of 2016 to 2019, which we believe are more typical demand environments than during the COVID-19 pandemic.~~

~~During the third quarter of 2023, as the procurement prices of~~cost pre-2024 model year ~~2024 new vehicles declined compared to model years 2022 and 2023, we actively discounted certain used~~ vehicles to ~~reduce~~improve the mix of new inventory ~~levels of aged used~~toward the lower cost 2024 model year vehicles. ~~This discounting had a negative impact on~~Additionally, used vehicle gross margins ~~during~~were negatively impacted in the ~~third~~first quarter of ~~2023.~~

~~Additionally,~~2024 from the ~~percentage of total unit sales relating~~discounting necessary to maintain used vehicles ~~was significantly higher~~as a lower cost alternative for our customers. Beginning primarily in the ~~third~~fourth quarter of 2023, ~~compared~~we adjusted our acceptable procurement cost of used vehicles to reflect the ~~pre-COVID-19 pandemic periods~~lower average market price of ~~2016~~RVs that was driven by the lower cost 2024 models. Used vehicle gross margins are expected to ~~2019. We are continuing to execute on our used vehicle strategy, which differentiates us from the competition with proprietary tools, such~~improve as ~~the RV Valuator, a focus on the development and retention of our service technician team, and investment in our service bay infrastructure.~~we sell through inventory previously procured at higher costs.

The following table presents vehicle gross margin and unit sale mix for the three months ended ~~September 30, 2023~~March 31, 2024 and pre-COVID-19 pandemic periods of the three months ended ~~September 30,~~March 31, 2019, 2018, 2017, and 2016 (unaudited):


	Three Months Ended September 30,					Three Months Ended March 31,
	2023	2019⁽¹⁾	2018⁽¹⁾	2017⁽¹⁾	2016⁽¹⁾	2024	2019⁽¹⁾	2018⁽¹⁾	2017⁽¹⁾	2016⁽¹⁾
Gross margin:
New vehicles	15.1%	12.0%	12.6%	14.3%	13.9%	13.9%	12.6%	13.0%	13.6%	14.5%
Used vehicles	18.9%	21.1%	22.9%	25.3%	23.0%	17.5%	20.6%	22.0%	23.3%	18.3%

Unit sales mix:
New vehicles	47.0%	64.9%	69.0%	69.1%	64.2%	61.2%	64.7%	66.4%	67.9%	56.7%
Used vehicles	53.0%	35.1%	31.0%	30.9%	35.8%	38.8%	35.3%	33.6%	32.1%	43.3%

(1)

These periods were prior to the COVID-19 pandemic.

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Our Corporate Structure Impact on Income Taxes

Our corporate structure is commonly referred to as an “Up-C” structure and typically results in a different relationship between income (loss) before income taxes and income tax expense than would be experienced by most public companies with a more traditional corporate structure. More traditional structures are typically comprised predominately of Subchapter C corporations (“C-Corps”) and/or lacking significant non-controlling interests with holdings through limited liability companies or partnerships. Typically, most of our income tax expense is recorded at the CWH level, our public holding company, based on its allocation of taxable income from CWGS, LLC.

More specifically, CWH is organized as a C-Corp and, as of ~~September 30, 2023,~~March 31, 2024, is a ~~52.8%~~53.0% owner of CWGS, LLC. CWGS, LLC is organized as a limited liability company and treated as a partnership for U.S. federal and most applicable state and local income tax purposes and, as such is generally not subject to any U.S. federal entity-level income taxes (“Pass-Through”), with the exception of Americas Road and Travel Club, Inc. and FreedomRoads RV, Inc., and their wholly-owned subsidiaries, which are C-Corps embedded within the CWGS, LLC structure. ~~As discussed below, prior to 2023, Camping World, Inc. (“CW”) and its wholly-owned subsidiaries were also C-Corps embedded within the CWGS, LLC structure.~~

By January 2, 2023, the “LLC Conversion” (see Note 13 — Income Taxes to our condensed consolidated financial statements included in Part I, Item 1 of this Form 10-Q) was completed. We expect that, beginning with the year ending December 31, 2023, the LLC Conversion will allow certain losses that previously would have been confined within the C-Corp portion of CWGS, LLC to instead offset a portion of income generated

~~Table of Contents~~

by the Pass-Through portion of CWGS, LLC, which would reduce the amount of income tax expense recorded by CWH. The LLC Conversion is also expected to reduce the amount of tax distributions required to be paid by CWGS, LLC to CWH and the non-controlling interest holders under the CWGS LLC Agreement beginning with the year ending December 31, 2023.

CWH receives an allocation of its share of the net income (loss) of CWGS, LLC based on CWH’s weighted-average ownership of CWGS, LLC for the period. CWH recognizes income tax expense on its pre-tax income including its portion of this income allocation from CWGS, LLC primarily relating to Pass-Through entities. The income tax relating to the net income (loss) of CWGS, LLC allocated to CWH that relates to separately taxed C-Corp entities is recorded within the consolidated results of CWGS, LLC. No income tax expense is recognized by the Company for the portion of net income of CWGS, LLC allocated to non-controlling interest other than income tax expense recorded by CWGS, LLC. Rather, tax distributions are paid to the non-controlling interest holders which are recorded as distributions to holders of LLC common units in the condensed consolidated statements of cash flows. CWH is subject to U.S. federal, state and local income taxes with respect to its allocable share of any taxable income of CWGS, LLC and is taxed at the prevailing corporate tax rates. For the three months ended ~~September 30,~~March 31, 2024 and 2023, ~~and 2022,~~ the Company used effective income tax rate assumptions of ~~25.1%~~25.0% and ~~25.4%~~25.3%, respectively, for income adjustments applicable to CWH when calculating the adjusted net (loss) income attributable to Camping World Holdings, Inc. ─ basic and diluted (see “Non-GAAP Financial Measures” in Part I, Item 2 of this Form 10-Q). CWGS, LLC may be liable for various other state and local taxes.

The following table presents the allocation of CWGS, LLC’s C-Corp and Pass-Through net (loss) income to CWH, the allocation of CWGS, LLC’s net (loss) income to non-controlling interests, income tax ~~expense~~benefit (expense) recognized by CWH, and other items:

Three Months Ended September 30,

Nine Months Ended September 30,
($ in thousands)

2023

2022

2023

2022
C-Corp portion of CWGS, LLC net income (loss) allocated to CWH

$
1,263

$
(1,701)

$
2,872

$
(14,852)
Pass-Through portion of CWGS, LLC net income allocated to CWH

15,392

63,435

55,727

254,243
CWGS, LLC net income allocated to CWH

16,655

61,734

58,599

239,391
CWGS, LLC net income allocated to noncontrolling interests

14,932

61,822

52,686

238,065
CWGS, LLC net income

31,587

123,556

111,285

477,456
Tax Receivable Agreement liability adjustment

1,680

—

1,680

—
Income tax expense recorded by CWH

(2,662)

(20,811)

(13,374)

(69,582)
Other incremental CWH net income

288

203

928

358
Net income

$
30,893

$
102,948

$
100,519

$
408,232


	Three Months Ended March 31,
($ in thousands)	2024		2023
C-Corp portion of CWGS, LLC net income allocated to CWH	$	446	$	10
Pass-Through portion of CWGS, LLC net (loss) income allocated to CWH		(32,505)		1,914
CWGS, LLC net (loss) income allocated to CWH		(32,059)		1,924
CWGS, LLC net (loss) income allocated to noncontrolling interests		(28,499)		1,734
CWGS, LLC net (loss) income		(60,558)		3,658
Income tax benefit (expense) recorded by CWH		9,362		944
Other incremental CWH net (loss) income		390		301
Net (loss) income	$	(50,806)	$	4,903

The following table presents further information on income tax ~~expense:~~benefit (expense):


	Three Months Ended September 30,				Nine Months Ended September 30,				Three Months Ended March 31,
($ in thousands)	2023		2022		2023		2022		2024		2023
Income tax expense recorded by CWH	$	(2,662)	$	(20,811)	$	(13,374)	$	(69,582)
Income tax benefit recorded by CWH									$	9,362	$	944
Income tax expense recorded by CWGS, LLC		(1,017)		(1,586)		(4,159)		(6,226)		(320)		(1,217)
Income tax expense	$	(3,679)	$	(22,397)	$	(17,533)	$	(75,808)
Income tax benefit (expense)									$	9,042	$	(273)

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Results of Operations

Three Months Ended ~~September 30, 2023~~March 31, 2024 Compared to Three Months Ended ~~September 30, 2022~~March 31, 2023

The following table sets forth information comparing the components of net income for the three months ended ~~September 30, 2023~~March 31, 2024 and ~~2022:~~2023:


	Three Months Ended									Three Months Ended
	September 30, 2023			September 30, 2022						March 31, 2024			March 31, 2023
			Percent of			Percent of	Favorable/ (Unfavorable)					Percent of			Percent of	Favorable/ (Unfavorable)
($ in thousands)	Amount		Revenue	Amount		Revenue	$		%	Amount		Revenue	Amount		Revenue	$		%
Revenue:
Good Sam Services and Plans	$	49,889	2.9%	$	50,352	2.7%	$	(463)	(0.9%)	$	45,681	3.3%	$	46,367	3.1%	$	(686)	(1.5%)
RV and Outdoor Retail:
RV and Outdoor Retail
New vehicles		679,207	39.3%		834,112	44.9%		(154,905)	(18.6%)		656,086	48.1%		646,752	43.5%		9,334	1.4%
Used vehicles		590,227	34.1%		525,988	28.3%		64,239	12.2%		337,685	24.8%		444,746	29.9%		(107,061)	(24.1%)
Products, service and other		235,609	13.6%		268,940	14.5%		(33,331)	(12.4%)		177,894	13.0%		207,661	14.0%		(29,767)	(14.3%)
Finance and insurance, net		163,630	9.5%		165,136	8.9%		(1,506)	(0.9%)		135,454	9.9%		129,772	8.7%		5,682	4.4%
Good Sam Club		11,051	0.6%		11,154	0.6%		(103)	(0.9%)		11,217	0.8%		11,582	0.8%		(365)	(3.2%)
Subtotal		1,679,724	97.1%		1,805,330	97.3%		(125,606)	(7.0%)		1,318,336	96.7%		1,440,513	96.9%		(122,177)	(8.5%)
Total revenue		1,729,613	100.0%		1,855,682	100.0%		(126,069)	(6.8%)		1,364,017	100.0%		1,486,880	100.0%		(122,863)	(8.3%)

Gross profit (exclusive of depreciation and amortization shown separately below):
Good Sam Services and Plans		39,868	2.3%		31,481	1.7%		8,387	26.6%		30,498	2.2%		30,215	2.0%		283	0.9%
RV and Outdoor Retail:
RV and Outdoor Retail
New vehicles		102,727	5.9%		158,993	8.6%		(56,266)	(35.4%)		91,047	6.7%		89,210	6.0%		1,837	2.1%
Used vehicles		111,632	6.5%		127,106	6.8%		(15,474)	(12.2%)		59,152	4.3%		102,799	6.9%		(43,647)	(42.5%)
Products, service and other		95,633	5.5%		101,642	5.5%		(6,009)	(5.9%)		76,219	5.6%		78,643	5.3%		(2,424)	(3.1%)
Finance and insurance, net		163,630	9.5%		165,136	8.9%		(1,506)	(0.9%)		135,454	9.9%		129,772	8.7%		5,682	4.4%
Good Sam Club		9,596	0.6%		9,330	0.5%		266	2.9%		10,027	0.7%		10,381	0.7%		(354)	(3.4%)
Subtotal		483,218	27.9%		562,207	30.3%		(78,989)	(14.0%)		371,899	27.3%		410,805	27.6%		(38,906)	(9.5%)
Total gross profit		523,086	30.2%		593,688	32.0%		(70,602)	(11.9%)		402,397	29.5%		441,020	29.7%		(38,623)	(8.8%)

Operating expenses:
Selling, general and administrative expenses		415,288	24.0%		419,102	22.6%		3,814	0.9%
Selling, general and administrative											371,473	27.2%		365,726	24.6%		(5,747)	(1.6%)
Depreciation and amortization		17,619	1.0%		18,207	1.0%		588	3.2%		19,290	1.4%		14,637	1.0%		(4,653)	(31.8%)
Long-lived asset impairment		1,747	0.1%		887	0.0%		(860)	(97.0%)		5,827	0.4%		7,045	0.5%		1,218	17.3%
Lease termination		375	0.0%		—	—		(375)	n/m
Loss (gain) on sale or disposal of assets		131	0.0%		(40)	(0.0%)		(171)	n/m		1,585	0.1%		(4,987)	(0.3%)		(6,572)	n/m
Total operating expenses		435,160	25.2%		438,156	23.6%		2,996	0.7%		398,175	29.2%		382,421	25.7%		15,754	4.1%
Income from operations		87,926	5.1%		155,532	8.4%		(67,606)	(43.5%)		4,222	0.3%		58,599	3.9%		(54,377)	(92.8%)
Other expense:
Other expense
Floor plan interest expense		(19,816)	(1.1%)		(9,484)	(0.5%)		(10,332)	(108.9%)		(27,882)	(2.0%)		(20,810)	(1.4%)		(7,072)	(34.0%)
Other interest expense, net		(35,242)	(2.0%)		(20,526)	(1.1%)		(14,716)	(71.7%)		(36,094)	(2.6%)		(31,113)	(2.1%)		(4,981)	(16.0%)
Tax Receivable Agreement liability adjustment		1,680	0.1%		—	—		1,680	n/m
Other income (expense), net		24	0.0%		(177)	(0.0%)		201	n/m
Other expense, net											(94)	(0.0%)		(1,500)	(0.1%)		1,406	93.7%
Total other expense		(53,354)	(3.1%)		(30,187)	(1.6%)		(23,167)	(76.7%)		(64,070)	(4.7%)		(53,423)	(3.6%)		(10,647)	(19.9%)
Income before income taxes		34,572	2.0%		125,345	6.8%		(90,773)	(72.4%)
Income tax expense		(3,679)	(0.2%)		(22,397)	(1.2%)		18,718	83.6%
Net income		30,893	1.8%		102,948	5.5%		(72,055)	(70.0%)
Less: net income attributable to non-controlling interests		(14,932)	(0.9%)		(61,822)	(3.3%)		46,890	75.8%
Net income attributable to Camping World Holdings, Inc.	$	15,961	0.9%	$	41,126	2.2%	$	(25,165)	(61.2%)
(Loss) income before income taxes											(59,848)	(4.4%)		5,176	0.3%		(65,024)	n/m
Income tax benefit (expense)											9,042	0.7%		(273)	(0.0%)		9,315	n/m
Net (loss) income											(50,806)	(3.7%)		4,903	0.3%		(55,709)	n/m
Less: net loss (income) attributable to non-controlling interests											28,499	2.1%		(1,734)	(0.1%)		30,233	n/m
Net (loss) income attributable to Camping World Holdings, Inc.										$	(22,307)	(1.6%)	$	3,169	0.2%	$	(25,476)	n/m

n/m – not meaningful

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Supplemental Data

Three Months Ended September 30,

Increase

Percent

2023

2022

(decrease)


Change
Unit sales








New vehicles

15,205

17,616

(2,411)

(13.7%)
Used vehicles

17,125

14,460

2,665

18.4%
Total

32,330

32,076

254

0.8%

Average selling price

New vehicles

$
44,670

$
47,350

$
(2,680)

(5.7%)
Used vehicles

34,466

36,375

(1,909)

(5.2%)

Same store unit sales⁽¹⁾

New vehicles

13,483

17,166

(3,683)

(21.5%)
Used vehicles

15,599

14,072

1,527

10.9%
Total

29,082

31,238

(2,156)

(6.9%)

Same store revenue⁽¹⁾ ($ in 000s)

New vehicles

$
602,014

$
814,326

$
(212,312)

(26.1%)
Used vehicles

535,521

514,350

21,171

4.1%
Products, service and other

180,071

207,032

(26,961)

(13.0%)
Finance and insurance, net

146,112

161,332

(15,220)

(9.4%)
Total

$
1,463,718

$
1,697,040

$
(233,322)

(13.7%)

Average gross profit per unit

New vehicles

$
6,756

$
9,025

$
(2,269)

(25.1%)
Used vehicles

6,519

8,790

(2,271)

(25.8%)
Finance and insurance, net per vehicle unit

5,061

5,148

(87)

(1.7%)
Total vehicle front-end yield⁽²⁾

11,692

14,068

(2,376)

(16.9%)

Gross margin

Good Sam Services and Plans

79.9%

62.5%

1,739
bps

New vehicles

15.1%

19.1%

(394)
bps

Used vehicles

18.9%

24.2%

(525)
bps

Products, service and other

40.6%

37.8%

280
bps

Finance and insurance, net

100.0%

100.0%

unch.
bps

Good Sam Club

86.8%

83.6%

319
bps

Subtotal RV and Outdoor Retail

28.8%

31.1%

(237)
bps

Total gross margin

30.2%

32.0%

(175)
bps

RV and Outdoor Retail inventories ($ in 000s)

New vehicles

$
1,131,575

$
1,180,364

$
(48,789)

(4.1%)
Used vehicles

534,155

425,824

108,331

25.4%
Products, parts, accessories and misc.

202,786

293,588

(90,802)

(30.9%)
Total RV and Outdoor Retail inventories

$
1,868,516

$
1,899,776

$
(31,260)

(1.6%)

Vehicle inventory per location ($ in 000s)

New vehicle inventory per dealer location

$
5,520

$
6,415

$
(895)

(14.0%)
Used vehicle inventory per dealer location

2,606

2,314

291

12.6%

Vehicle inventory turnover⁽³⁾

New vehicle inventory turnover

1.8

2.0

(0.3)

(12.9%)
Used vehicle inventory turnover

3.0

3.5

(0.6)

(16.2%)

Retail locations

RV dealerships

205

184

21

11.4%
RV service & retail centers

4

8

(4)

(50.0%)
Subtotal

209

192

17

8.9%
Other retail stores

—

1

(1)

(100.0%)
Total

209

193

16

8.3%

Other data

Active Customers⁽⁴⁾

5,111,478

5,366,558

(255,080)

(4.8%)
Good Sam Club members

2,051,768

2,038,826

12,942

0.6%
Service bays ⁽⁵⁾

2,800

2,639

161

6.1%
Finance and insurance gross profit as a % of total vehicle revenue

12.9%

12.1%

75
bps

n/a
Same store locations

175

n/a

n/a

n/a

Supplemental Data


	Three Months Ended March 31,				Increase			Percent
	2024		2023		(decrease)			Change
Unit sales
New vehicles		16,882		13,912		2,970			21.3%
Used vehicles		10,694		12,432		(1,738)			(14.0%)
Total		27,576		26,344		1,232			4.7%

Average selling price
New vehicles	$	38,863	$	46,489	$	(7,626)			(16.4%)
Used vehicles		31,577		35,774		(4,197)			(11.7%)

Same store unit sales⁽¹⁾
New vehicles		15,623		13,526		2,097			15.5%
Used vehicles		10,030		12,126		(2,096)			(17.3%)
Total		25,653		25,652		1			0.0%

Same store revenue⁽¹⁾ ($ in 000s)
New vehicles	$	606,808	$	630,290	$	(23,482)			(3.7%)
Used vehicles		312,410		434,471		(122,061)			(28.1%)
Products, service and other		144,382		158,467		(14,085)			(8.9%)
Finance and insurance, net		127,064		126,830		234			0.2%
Total	$	1,190,664	$	1,350,058	$	(159,394)			(11.8%)

Average gross profit per unit
New vehicles	$	5,393	$	6,412	$	(1,019)			(15.9%)
Used vehicles		5,531		8,269		(2,738)			(33.1%)
Finance and insurance, net per vehicle unit		4,912		4,926		(14)			(0.3%)
Total vehicle front-end yield⁽²⁾		10,359		12,215		(1,856)			(15.2%)

Gross margin
Good Sam Services and Plans		66.8%		65.2%		161	bps
New vehicles		13.9%		13.8%		8	bps
Used vehicles		17.5%		23.1%		(560)	bps
Products, service and other		42.8%		37.9%		498	bps
Finance and insurance, net		100.0%		100.0%		unch.
Good Sam Club		89.4%		89.6%		(24)	bps
Subtotal RV and Outdoor Retail		28.2%		28.5%		(31)	bps
Total gross margin		29.5%		29.7%		(16)	bps

RV and Outdoor Retail inventories ($ in 000s)
New vehicles	$	1,469,193	$	1,219,889	$	249,304			20.4%
Used vehicles		389,810		510,689		(120,879)			(23.7%)
Products, parts, accessories and misc.		218,197		248,998		(30,801)			(12.4%)
Total RV and Outdoor Retail inventories	$	2,077,200	$	1,979,576	$	97,624			4.9%

Vehicle inventory per location ($ in 000s)
New vehicle inventory per dealer location	$	6,963	$	6,489	$	474			7.3%
Used vehicle inventory per dealer location		1,847		2,716		(869)			(32.0%)

Vehicle inventory turnover⁽³⁾
New vehicle inventory turnover		1.7		1.9		(0.3)			(13.1%)
Used vehicle inventory turnover		3.0		3.3		(0.4)			(10.6%)

Retail locations
RV dealerships		211		188		23			12.2%
RV service & retail centers		4		6		(2)			(33.3%)
Subtotal		215		194		21			10.8%
Other retail stores		—		1		(1)			(100.0%)
Total		215		195		20			10.3%

Other data
Active Customers⁽⁴⁾		4,827,623		5,291,750		(464,127)			(8.8%)
Good Sam Club members ⁽⁵⁾		1,961,112		2,025,438		(64,326)			(3.2%)
Service bays ⁽⁶⁾		2,857		2,682		175			6.5%
Finance and insurance gross profit as a % of total vehicle revenue		13.6%		11.9%		174	bps		n/a
Same store locations		182		n/a		n/a			n/a

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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.

Revenue and Gross Profit

Good Sam Services and Plans

Good Sam Services and Plans revenue decreased slightly primarily from ~~favorable adjustments to roadside assistance cancellation assumptions~~reduced contracts in ~~the prior year that were not recurring in the current year,~~force for our extended vehicle warranty programs, partially offset by increased contracts in force from the Good Sam Insurance Agency programs.

Good Sam Services and Plans gross profit increased slightly from higher gross margin, which were partially offset by the revenue decrease described above. Good Sam Services and Plans gross margin increased primarily due to ~~a nonrecurring $5.5 million in savings from finalizing contract negotiations to exit an arrangement with a service partner in the current year in addition to reduced program costs,~~ increased ~~contracts~~policies in force ~~from~~for the Good Sam Insurance Agency programs and reduced expenses for the extended vehicle warranty programs. Gross margin increased in the three months ended September 30, 2023 compared to the three months ended September 30, 2022, primarily due to the nonrecurring contract termination fee agreed to with a service partner in the current year and our efforts to reducemarketing expenses.

RV and Outdoor Retail

New Vehicles

New vehicles revenue ~~decreased~~increased primarily due to a ~~13.7% decrease~~21.3% increase in new vehicles sold, ~~and~~partially offset by a ~~5.7% decrease in the average selling price per new vehicle sold. On a same store basis, new vehicles revenue decreased 26.1% to $602.0 million and new vehicles sold decreased 21.5%.~~

~~New vehicles gross profit decreased primarily due to the 13.7% decrease in new vehicles sold and a 5.7%~~16.4% decrease in the average selling price per new vehicle sold ~~partially offset~~driven primarily by the lower cost 2024 model year travel trailers and discounting of pre-2024 model year new vehicles. On a ~~1.1%~~same store basis, new vehicles revenue decreased 3.7% to $606.8 million with an increase in new vehicles sold of 15.5%, primarily due to a reduced average sales price per vehicle sold.

New vehicle gross profit increased primarily due to the slight new vehicle revenue increase described above and a 16.5% decrease in the average cost per new vehicle ~~sold.~~sold that was driven by the lower cost 2024 model year new vehicles. The ~~decrease in~~ new ~~vehicles~~vehicle gross margin increased slightly by 8 basis points as the lower cost per new vehicle sold was ~~primarily due to~~not entirely offset by decreases in the ~~decreased~~ average selling price ~~per~~of new ~~vehicle sold.~~vehicles.

Used Vehicles

Used vehicles revenue ~~increased~~decreased primarily due to ~~an 18.4% increase~~a 14.0% reduction in used vehicles sold ~~driven by~~and an ~~increase in demand for used vehicles, as they are a lower-cost alternative to new vehicles, partially offset by a 5.2%~~11.7% decrease in the average selling price per used vehicle sold. These decreases were driven by the lower cost and selling price of 2024 model year new vehicles, which impacted used vehicles as discussed in “Industry Trends” above. On a same store basis, used vehicles revenue ~~increased 4.1%~~decreased 28.1% to ~~$535.5~~$312.4 million and used vehicles sold ~~increased 10.9%~~decreased 17.3%.

Used vehicles gross profit decreased primarily due to ~~a 5.2% decrease in~~ the ~~average price per~~ used vehicle ~~sold and~~revenue decrease described above, partially offset by a ~~1.3% increase~~5.3% decrease in the average cost per used vehicle ~~sold, partially offset by an 18.4% increase in used vehicles~~ sold. Used vehicle gross margin

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decreased primarily due to a ~~5.2% decrease in the~~lower average selling price per used vehicle sold, partially offset by a 5.3% reduction in cost per used vehicle sold.

Products, service and other

Products, service and other revenue decreased primarily due to ~~lower demand and lower stocking levels of lifestyle and activities, and design and home products, as well as~~ a reduction in ~~demand for our RV furniture distribution business as RV manufacturers slowed RV production. Revenues were also impacted negatively by~~sales activity resulting from our Active Sports ~~Restructuring.~~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. On a same store basis, products, service and other revenue

~~Table of Contents~~

decreased ~~13.0%~~8.9% to ~~$180.1~~$144.4 million for the three months ended ~~September 30, 2023~~March 31, 2024 from the three months ended ~~September 30, 2022.~~March 31, 2023.

Products, service and other gross profit decreased primarily due to the Active Sports Restructuring and the demand trends noted ~~above and discounting of Active Sports merchandise in conjunction with the Active Sports Restructuring.~~above. The increase in products, service and other gross margin was primarily due to higher labor billing ~~rates.~~rates on warranty service and improvements to the pricing strategy.

Finance and Insurance, net

Finance and insurance revenue and gross profit is recorded net, since the Company is acting as an agent in the transaction, and commission is recognized when a finance and insurance product contract payment has been received or financing has been arranged. Finance and insurance, net revenue ~~decreased slightly,~~increased $5.7 million, which was primarily a result of ~~lower average selling prices~~an increased number of ~~new~~contracts sold and ~~used vehicles, partially offset by $8.1 million of favorable adjustments to cancellation reserve assumptions.~~an increase in revenue per contract. Finance and insurance, net revenue as a percentage of new and used vehicle revenue was ~~12.9%~~13.6% for the three months ended ~~September 30, 2023,~~March 31, 2024, an increase from ~~12.1%~~11.9% for the three months ended ~~September 30, 2022.~~March 31, 2023. On a same store basis, finance and insurance, net revenue ~~decreased 9.4%, or $15.2 million, to $146.1 million~~increased 0.2% versus the three months ended ~~September 30, 2022.~~March 31, 2023.

Good Sam Club

Good Sam Club revenue ~~remained relatively unchanged~~and gross margin decreased slightly from the ~~prior year primarily due~~3.2% decrease in Good Sam Club members, excluding free basic plan members. The decrease in Good Sam Club members resulted from reduced standard Good Sam Club membership enrollment from an increase in the standard membership price and the introduction of the free basic plan in late 2023 that provides for limited participation in the loyalty point program without access to ~~a slight reduction~~the remaining member benefits. For the remainder of 2024, we expect to continue to see declines in ~~marketing fee revenue from~~ the Good Sam Club ~~branded credit card partially offset by increased Good Sam Club memberships.~~members as a result of this price increase and the availability of the free basic plan.

~~Good Sam Club gross margin increased primarily due to reduced marketing expenses.~~

Operating Expenses and Other

Selling, general and administrative expenses

Selling, general and administrative expenses ~~decreased~~increased primarily due to ~~approximately $11.5~~$8.0 million of ~~reduced~~additional advertising expenses, $2.6 million of additional professional fees and services, and $1.0 million of increased other expenses, partially offset by ~~increased~~reduced employee compensation costs of ~~$3.6~~$5.9 million, ~~and increased facility costs related to the 16 additional store locations added during the twelve months ended September 30, 2023.~~

~~Equity-based~~which included a decrease in equity-based compensation expenses, included in the employee compensation costs referred to above, decreased $1.3 million (See Note 17 — Equity-Based Compensation to our condensed consolidated financial statements included in Part I, Item 1expense of this Form 10-Q) resulting primarily from fewer weighted-average restricted stock units outstanding from significantly fewer restricted stock units granted in 2022 and 2023 compared to any of the years from 2017 to 2021.$1.1 million.

Long-Lived Asset Impairment

~~Long-lived asset impairment was $1.7 million for the three months ended September 30, 2023 and $0.9 million for the three months ended September 30, 2022. See~~As discussed in Note 4 – Restructuring and Long-Lived Asset Impairment to our condensed consolidated financial statements included in Part I, Item 1 of this Form ~~10-Q.~~10-Q, we recognized $5.8 million of long-lived asset impairments that were unrelated to restructuring activities during the three months ended March 31, 2024 compared to $7.0 million of long-lived asset impairments for the three months ended March 31, 2023 that related primarily to the Active Sports Restructuring.

Floor plan interest expense

The significant increase in floor plan interest expense was primarily due to a ~~331~~126 basis point increase in the average floor plan borrowing rate, ~~in addition to~~and an increase in the average floor plan balance. The average interest

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~~average interest rates~~rate for the Floor Plan Facility for the three months ended ~~September 30,~~March 31, 2024 and 2023 was 7.68% and ~~2022 were 7.36% and 4.05%~~6.42%, respectively.

Other interest expense, net

Other interest expense, net increased primarily due to a ~~304~~77 basis point increase in the Term Loan Facility average interest rate and a higher average principal balance from additional borrowings on the Company’s Real Estate Facilities (see Note 7 – Long-Term Debt to our condensed consolidated financial statements included in Part I, Item 1 of this Form 10-Q). The average interest ~~rates~~rate for the Term Loan Facility for the three months ended ~~September 30,~~March 31, 2024 and 2023 was 7.97% and ~~2022 were 7.87% and 4.83%~~7.20%, respectively.

~~Tax Receivable Agreement Liability adjustment~~

~~The Tax Receivable Agreement Liability adjustment for 2023 consisted of a benefit of $1.7 million related to a remeasurement from a decrease in blended state income tax rates.~~

Income tax (benefit) expense

~~Income~~The reduction of income tax expense ~~decreased~~to an income tax benefit was primarily due to ~~lower income~~losses generated from CWGS, LLC for which the Company is subject to U.S. federal and state taxes on its allocable ~~share and a $4.3 million benefit for certain entity classification elections relating to the LLC Conversion.~~share.

Segment ~~results~~Results

The following table sets forth a reconciliation of total segment income to consolidated income before income taxes for each of our segments for the periods presented:


	Three Months Ended									Three Months Ended
	September 30, 2023			September 30, 2022			Favorable/			March 31, 2024			March 31, 2023			Favorable/
			Percent of			Percent of	(Unfavorable)					Percent of			Percent of	(Unfavorable)
($ in thousands)	Amount		Revenue	Amount		Revenue	$		%	Amount		Revenue	Amount		Revenue	$		%
Revenue:
Good Sam Services and Plans	$	50,022	2.9%	$	50,413	2.7%	$	(391)	(0.8%)	$	46,611	3.4%	$	46,963	3.2%	$	(352)	(0.7%)
RV and Outdoor Retail		1,683,379	97.3%		1,812,830	97.7%		(129,451)	(7.1%)		1,321,057	96.9%		1,443,339	97.1%		(122,282)	(8.5%)
Elimination of intersegment revenue		(3,788)	(0.2%)		(7,561)	(0.4%)		3,773	49.9%		(3,651)	(0.3%)		(3,422)	(0.2%)		(229)	(6.7%)
Total consolidated revenue		1,729,613	100.0%		1,855,682	100.0%		(126,069)	(6.8%)		1,364,017	100.0%		1,486,880	100.0%		(122,863)	(8.3%)
Segment income⁽¹⁾:
Segment (loss) income⁽¹⁾:
Good Sam Services and Plans		32,684	1.9%		23,946	1.3%		8,738	36.5%		22,583	1.7%		23,619	1.6%		(1,036)	(4.4%)
RV and Outdoor Retail		56,543	3.3%		143,098	7.7%		(86,555)	(60.5%)		(23,391)	(1.7%)		32,584	2.2%		(55,975)	n/m
Total segment income		89,227	5.2%		167,044	9.0%		(77,817)	(46.6%)
Total segment (loss) income											(808)	(0.1%)		56,203	3.8%		(57,011)	n/m
Corporate & other		(3,498)	(0.2%)		(2,789)	(0.2%)		(709)	(25.4%)		(3,562)	(0.3%)		(3,777)	(0.3%)		215	5.7%
Depreciation and amortization		(17,619)	(1.0%)		(18,207)	(1.0%)		588	3.2%		(19,290)	(1.4%)		(14,637)	(1.0%)		(4,653)	(31.8%)
Other interest expense, net		(35,242)	(2.0%)		(20,526)	(1.1%)		(14,716)	(71.7%)		(36,094)	(2.6%)		(31,113)	(2.1%)		(4,981)	(16.0%)
Tax Receivable Agreement liability adjustment		1,680	0.1%		—	—		1,680	n/m
Other income (expense), net		24	0.0%		(177)	(0.0%)		201	113.6%
Income before income taxes	$	34,572	2.0%	$	125,345	6.8%	$	(90,773)	(72.4%)
Other expense, net											(94)	(0.0%)		(1,500)	(0.1%)		1,406	93.7%
(Loss) income before income taxes										$	(59,848)	(4.4%)	$	5,176	0.3%	$	(65,024)	n/m

Same store revenue- RV and Outdoor Retail⁽²⁾	$	1,463,718		$	1,697,040		$	(233,322)	(13.7%)	$	1,190,664		$	1,350,058		$	(159,394)	(11.8%)

~~(1)~~

~~Segment income represents income for each of our reportable segments and is defined as income from operations before depreciation and amortization, plus floor plan interest expense.~~

~~(2)~~

~~Same store revenue definition not applicable to the Good Sam Services and Plans segment.~~

~~Table of Contents~~

~~Good Sam Services and Plans~~

Good Sam Services and Plans revenue decreased primarily from favorable adjustments to roadside assistance cancellation assumptions in the prior year that were not recurring in the current year, partially offset by increased contracts in force from the Good Sam Insurance Agency programs.

Good Sam Services and Plans segment income increased primarily due to a nonrecurring $5.5 million in savings from finalizing contract negotiations to exit an arrangement with a service partner in the current year in addition to reduced program costs, increased contracts in force from the Good Sam Insurance Agency programs, and reduced expenses for the extended vehicle warranty programs. Segment income margin increased 1,784 basis points to 65.3% primarily due to the nonrecurring contract termination fee from a service partner in the current year and our efforts to reduce expenses.

~~RV and Outdoor Retail~~

RV and Outdoor Retail segment revenue decreased primarily due to a $155.1 million, or 18.6%, decrease in new vehicles revenue, a $33.4 million, or 12.4%, decrease in products, service and other revenue, a $5.3 million, or 3.1%, decrease in finance and insurance, net revenue, and a $0.1 million, or 0.9%, decrease in Good Sam Club revenue, partially offset by a $64.4 million, or 12.2%, increase in used vehicles revenue.

RV and Outdoor Retail segment income decreased primarily due to decreased segment gross profit of $78.1 million primarily relating to reduced average selling price per vehicle sold and a $10.3 million increase in floor plan interest expense, partially offset by a $3.3 million decrease in selling, general and administrative expenses (see discussion of selling, general and administrative expenses above for the similar drivers of this change). RV and Outdoor Retail segment income margin decreased to 3.4% in the three months ended September 30, 2023 from 7.9% in the three months ended September 30, 2022 primarily due lower average new and used selling price per vehicle.

~~Table of Contents~~

~~Results of Operations~~

~~Nine Months Ended September 30, 2023 Compared to Nine Months Ended September 30, 2022~~

~~The following table sets forth information comparing the components of net income for the nine months ended September 30, 2023 and 2022:~~

Nine Months Ended

September 30, 2023

September 30, 2022

Percent of

Percent of

Favorable/ (Unfavorable)
($ in thousands)

Amount

Revenue

Amount

Revenue

$

%
Revenue:

Good Sam Services and Plans

$
147,294

2.9%

$
144,504

2.5%

$
2,790

1.9%
RV and Outdoor Retail:

New vehicles

2,126,862

41.6%

2,746,323

48.3%

(619,461)

(22.6%)
Used vehicles

1,657,935

32.4%

1,484,978

26.1%

172,957

11.6%
Products, service and other

691,030

13.5%

761,914

13.4%

(70,884)

(9.3%)
Finance and insurance, net

460,336

9.0%

513,921

9.0%

(53,585)

(10.4%)
Good Sam Club

33,757

0.7%

35,070

0.6%

(1,313)

(3.7%)
Subtotal

4,969,920

97.1%

5,542,206

97.5%

(572,286)

(10.3%)
Total revenue

5,117,214

100.0%

5,686,710

100.0%

(569,496)

(10.0%)

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

Good Sam Services and Plans

103,450

2.0%

89,972

1.6%

13,478

15.0%
RV and Outdoor Retail:

New vehicles

315,464

6.2%

574,663

10.1%

(259,199)

(45.1%)
Used vehicles

356,974

7.0%

369,102

6.5%

(12,128)

(3.3%)
Products, service and other

268,993

5.3%

294,234

5.2%

(25,241)

(8.6%)
Finance and insurance, net

460,336

9.0%

513,921

9.0%

(53,585)

(10.4%)
Good Sam Club

29,991

0.6%

28,791

0.5%

1,200

4.2%
Subtotal

1,431,758

28.0%

1,780,711

31.3%

(348,953)

(19.6%)
Total gross profit

1,535,208

30.0%

1,870,683

32.9%

(335,475)

(17.9%)

Operating expenses:

Selling, general and administrative expenses

1,201,901

23.5%

1,245,540

21.9%

43,639

3.5%
Depreciation and amortization

49,462

1.0%

61,369

1.1%

11,907

19.4%
Long-lived asset impairment

9,269

0.2%

3,505

0.1%

(5,764)

(164.5%)
Lease termination

375

0.0%

1,122

0.0%

747

66.6%
(Gain) loss on sale or disposal of assets

(5,001)

(0.1%)

390

0.0%

5,391

n/m
Total operating expenses

1,256,006

24.5%

1,311,926

23.1%

55,920

4.3%
Income from operations

279,202

5.5%

558,757

9.8%

(279,555)

(50.0%)
Other expense:

Floor plan interest expense

(61,298)

(1.2%)

(24,483)

(0.4%)

(36,815)

(150.4%)
Other interest expense, net

(99,873)

(2.0%)

(49,762)

(0.9%)

(50,111)

(100.7%)
Tax Receivable Agreement liability adjustment

1,680

0.0%

—

—

1,680

n/m
Other expense, net

(1,659)

(0.0%)

(472)

(0.0%)

(1,187)

(251.5%)
Total other expense

(161,150)

(3.1%)

(74,717)

(1.3%)

(86,433)

(115.7%)
Income before income taxes

118,052

2.3%

484,040

8.5%

(365,988)

(75.6%)
Income tax expense

(17,533)

(0.3%)

(75,808)

(1.3%)

58,275

76.9%
Net income

100,519

2.0%

408,232

7.2%

(307,713)

(75.4%)
Less: net income attributable to non-controlling interests

(52,686)

(1.0%)

(238,065)

(4.2%)

185,379

77.9%
Net income attributable to Camping World Holdings, Inc.

$
47,833

0.9%

$
170,167

3.0%

$
(122,334)

(71.9%)

n/m – not meaningful

~~Table of Contents~~

~~Supplemental Data~~

Nine Months Ended September 30,

Increase

Percent

2023

2022

(decrease)


Change
Unit sales








New vehicles

48,014

60,040

(12,026)

(20.0%)
Used vehicles

47,331

40,991

6,340

15.5%
Total

95,345

101,031

(5,686)

(5.6%)

Average selling price

New vehicles

$
44,297

$
45,742

$
(1,445)

(3.2%)
Used vehicles

35,029

36,227

(1,198)

(3.3%)

Same store unit sales⁽¹⁾

New vehicles

43,989

58,831

(14,842)

(25.2%)
Used vehicles

43,916

40,280

3,636

9.0%
Total

87,905

99,111

(11,206)

(11.3%)

Same store revenue⁽¹⁾ ($ in 000s)

New vehicles

$
1,949,145

$
2,695,945

$
(746,800)

(27.7%)
Used vehicles

1,533,574

1,463,333

70,241

4.8%
Products, service and other

519,211

576,843

(57,632)

(10.0%)
Finance and insurance, net

422,725

505,391

(82,666)

(16.4%)
Total

$
4,424,655

$
5,241,512

$
(816,857)

(15.6%)

Average gross profit per unit

New vehicles

$
6,570

$
9,571

$
(3,001)

(31.4%)
Used vehicles

7,542

9,004

(1,462)

(16.2%)
Finance and insurance, net per vehicle unit

4,828

5,087

(259)

(5.1%)
Total vehicle front-end yield⁽²⁾

11,881

14,428

(2,547)

(17.7%)

Gross margin

Good Sam Services and Plans

70.2%

62.3%

797
bps

New vehicles

14.8%

20.9%

(609)
bps

Used vehicles

21.5%

24.9%

(332)
bps

Products, service and other

38.9%

38.6%

31
bps

Finance and insurance, net

100.0%

100.0%

unch.
bps

Good Sam Club

88.8%

82.1%

675
bps

Subtotal RV and Outdoor Retail

28.8%

32.1%

(332)
bps

Total gross margin

30.0%

32.9%

(289)
bps

Other data

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

12.2%

12.1%

2
bps

n/a
Same store locations

175

n/a

n/a

n/a

~~(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.~~

~~Revenue and Gross Profit~~

~~Good Sam Services and Plans~~

Good Sam Services and Plans revenue increased primarily due to increased contracts in force from the extended vehicle warranty and Good Sam Insurance Agency programs, partially offset by a reduction from the Good Sam TravelAssist programs.

Good Sam Services and Plans gross profit and gross margin increased primarily due to a nonrecurring $5.5 million in savings from finalizing contract negotiations to exit an arrangement with a service partner in the

~~Table of Contents~~

~~current year and increased contracts in force from the roadside assistance, extended vehicle warranty, and Good Sam Insurance Agency programs, in addition to our efforts to reduce expenses.~~

~~RV and Outdoor Retail~~

~~New Vehicles~~

New vehicles revenue decreased primarily due to a 20.0% decrease in new vehicles sold, and, to a lesser extent, a 3.2% decrease in the average selling price per new vehicle sold. On a same store basis, new vehicles revenue decreased 27.7% to $1.9 billion and new vehicles sold decreased 25.2%.

New vehicles gross profit decreased primarily due to a 20.0% decrease in new vehicles sold, a 3.2% decrease in the average selling price per vehicle sold, and a 4.3% increase in the average cost of new vehicles sold. New vehicle gross margin decreased 609 basis points primarily due to compression from the higher cost per new unit sold and the lower average selling price of new vehicles.

~~Used Vehicles~~

Used vehicles revenue increased primarily due to a 15.5% increase in vehicles sold, driven by an increase in demand for used vehicles, as they are a lower-cost alternative to new vehicles, partially offset by a 3.3% decrease in average selling price per used vehicle sold. On a same store basis, used vehicles revenue increased 4.8% to $1.5 billion and used vehicles sold increased 9.0%.

Used vehicles gross profit decreased 3.3% primarily due to a 3.3% decrease in average price per used vehicle sold and a 1.0% increase in the cost per used vehicle sold, partially offset by 15.5% increase in used vehicles sold. Used vehicle gross margin decreased 332 basis points primarily due to the decrease in the average selling price per used vehicle and compression from the higher cost per used vehicle sold.

~~Products, service and other~~

Products, service and other revenue decreased primarily due to lower demand and lower stocking levels of lifestyle and activities, and design and home products, as well as a reduction in demand for our RV furniture distribution business as RV manufacturers slowed RV production. Revenues were also impacted negatively by our Active Sports Restructuring. On a same store basis, products, service and other revenue decreased 10.0% to $519.2 million for the nine months ended September 30, 2023 from the nine months ended September 30, 2022.

Products, service and other gross profit and gross margin decreased versus the prior year primarily due to the demand trends noted above, discounting to reduce inventory levels, discounting of Active Sports merchandise in conjunction with the Active Sports Restructuring, and compression from higher costs.

~~Finance and Insurance, net~~

~~Table of Contents~~

~~nine months ended September 30, 2022. On a same store basis, finance and insurance, net revenue decreased 16.4%, or $82.7 million, to $422.7 million versus the nine months ended September 30, 2022.~~

~~Good Sam Club~~

~~Good Sam Club revenue decreased 3.7% primarily due to reduced marketing fee revenue from the Good Sam Club branded credit card.~~

~~Good Sam Club gross profit and gross margin increased primarily due to reduced marketing and wage-related expenses.~~

~~Operating Expenses and Other~~

~~Selling, general and administrative expenses~~

Selling, general and administrative expenses decreased primarily due to approximately $39.1 million of reduced advertising expenses and decreased employee compensation costs of $23.2 million, partially offset by increased facility costs related to the net 16 additional store locations added during the twelve months ended September 30, 2023 and increases in professional service fees.

Equity-based compensation expenses, included in the employee compensation costs referred to above, decreased $9.1 million (See Note 17 — Equity-Based Compensation to our condensed consolidated financial statements included in Part I, Item 1 of this Form 10-Q) resulting primarily from (i) $2.8 million less expense related to the modification of restricted stock units to accelerate and/or continue vesting under employee separation agreements, post-termination consulting arrangements, and/or transition agreements, and (ii) fewer weighted-average restricted stock units outstanding from significantly fewer restricted stock units granted in 2022 and 2023 compared to any of the years from 2017 to 2021.

~~Depreciation and amortization~~

Depreciation and amortization decreased primarily from $8.8 million of incremental accelerated amortization during the nine months ended September 30, 2022 from the adjustment of the useful lives of certain trademark and trade name intangible assets associated with brands not traditionally associated with RVs that we were phasing out, and reduced capital expenditures. These trademark and trade name intangible assets were fully amortized as of March 31, 2022.

~~Long-Lived Asset Impairment~~

Long-lived asset impairment was $9.3 million for the nine months ended September 30, 2023 and $3.5 million for the nine months ended September 30, 2022. See Note 4 – Restructuring and Long-Lived Asset Impairment to our condensed consolidated financial statements included in Part I, Item 1 of this Form 10-Q.

~~Floor plan interest expense~~

The significant increase in floor plan interest expense was primarily due to a 405 basis point increase in the average floor plan borrowing rate. The average interest rates for the Floor Plan Facility for the nine months ended September 30, 2023 and 2022 were 6.90% and 2.84%, respectively.

~~Other interest expense, net~~

Other interest expense, net increased primarily due to a 371 basis point increase in the Term Loan Facility average interest rate and a higher average principal balance from additional borrowings on the Company’s Real Estate Facilities (see Note 7 – Long-Term Debt to our condensed consolidated financial statements included in Part I, Item 1 of this Form 10-Q). The average interest rates for the Term Loan Facility for the nine months ended September 30, 2023 and 2022 were 7.48% and 3.77%, respectively.

~~Table of Contents~~

~~Other expense, net~~

~~Other expense, net increased primarily as a result of a $1.3 million impairment of an equity method investment.~~

~~Tax Receivable Agreement Liability adjustment~~

~~The Tax Receivable Agreement Liability adjustment for 2023 consisted of a benefit of $1.7 million related to a remeasurement from a decrease in blended state income tax rates.~~

~~Income tax expense~~

Income tax expense decreased primarily due to lower income generated from CWGS, LLC for which the Company is subject to U.S. federal and state taxes on its allocable share and a $4.3 million benefit for certain entity classification elections relating to the LLC Conversion.

~~Segment results~~

~~The following table sets forth a reconciliation of total segment income to consolidated income before income taxes for each of our segments for the periods presented:~~

Nine Months Ended

September 30, 2023

September 30, 2022

Favorable/

Percent of

Percent of

(Unfavorable)
($ in thousands)

Amount

Revenue

Amount

Revenue

$

%
Revenue:

Good Sam Services and Plans

$
148,117

2.9%

$
144,914

2.5%

$
3,203

2.2%
RV and Outdoor Retail

4,980,615

97.3%

5,566,061

97.9%

(585,446)

(10.5%)
Elimination of intersegment revenue

(11,518)

(0.2%)

(24,265)

(0.4%)

12,747

52.5%
Total consolidated revenue

5,117,214

100.0%

5,686,710

100.0%

(569,496)

(10.0%)
Segment income⁽¹⁾:

Good Sam Services and Plans

83,143

1.6%

67,242

1.2%

15,901

23.6%
RV and Outdoor Retail

195,283

3.8%

538,082

9.5%

(342,799)

(63.7%)
Total segment income

278,426

5.4%

605,324

10.6%

(326,898)

(54.0%)
Corporate & other

(11,060)

(0.2%)

(9,681)

(0.2%)

(1,379)

(14.2%)
Depreciation and amortization

(49,462)

(1.0%)

(61,369)

(1.1%)

11,907

19.4%
Other interest expense, net

(99,873)

(2.0%)

(49,762)

(0.9%)

(50,111)

(100.7%)
Tax Receivable Agreement liability adjustment

1,680

0.0%

—

—

1,680

n/m
Other expense, net

(1,659)

(0.0%)

(472)

(0.0%)

(1,187)

(251.5%)
Income before income taxes

$
118,052

2.3%

$
484,040

8.5%

$
(365,988)

(75.6%)

Same store revenue- RV and Outdoor Retail⁽²⁾

$
4,424,655

$
5,241,512

$
(816,857)

(15.6%)

(1)	Segment income represents income for each of our reportable segments and is defined as income from operations before depreciation and amortization, plus floor plan interest expense.

(2)	Same store revenue definition not applicable to the Good Sam Services and Plans segment.

Good Sam Services and Plans

Good Sam Services and Plans revenue ~~increased~~decreased slightly primarily ~~due to~~from reduced contracts in force for our extended vehicle warranty programs, partially offset by increased contracts in force from the ~~extended vehicle warranty and~~ Good Sam Insurance Agency ~~programs, partially offset by a reduction from the Good Sam TravelAssist~~ programs.

Good Sam Services and Plans segment income ~~and segment income margin increased~~decreased primarily due to ~~a nonrecurring $5.5 million savings from finalizing contract negotiations to exit an arrangement with a service partner in the current year and increased~~reduced contracts in force ~~from the roadside assistance,~~for our extended vehicle warranty programs and increased general and administrative expenses, resulting from increased advertising and outside service fees. Segment income margin decreased 184 basis points to 48.4% primarily due to increased general and administrative expenses.

5138

Table of Contents

~~warranty, and Good Sam Insurance Agency programs, in addition to our efforts to reduce expenses. Segment income margin increased 973 basis points to 56.1%.~~

RV and Outdoor Retail

RV and Outdoor Retail segment revenue decreased primarily due to a ~~$620.5~~$107.2 million, or ~~22.6%~~24.1%, decrease in ~~new~~used vehicles revenue, a ~~$71.2~~$29.8 million, or ~~9.3%~~14.3%, decrease in products, service and other revenue, and a ~~$65.9~~$0.4 million, or ~~12.5%, decrease in finance and insurance, net revenue, and a $1.3 million, or 3.7%~~3.2%, decrease in Good Sam Club revenue, partially offset by a ~~$173.4~~$9.6 million, or ~~11.7%~~1.5%, increase in ~~used~~new vehicles revenue, and a $5.5 million, or 4.3%, increase in finance and insurance, net revenue.

RV and Outdoor Retail segment income decreased primarily due to ~~a 5.6% reduction in total vehicles sold, and~~ decreased segment gross profit of ~~$346.4~~$39.0 million primarily relating to reduced volume and average sales price of used vehicles sold, ~~which also tends to result in~~ a ~~correlating decrease in finance and insurance, net revenue, and reduced price per vehicle sold, a $36.8~~$7.1 million increase in floor plan interest expense, ~~and~~ a ~~$5.8~~$6.6 million increase in ~~long-lived asset impairment, partially offset by~~loss on sale or disposal of assets, and a ~~$40.1~~$4.5 million ~~decrease~~increase in selling, general and administrative expenses (see discussion of selling, general and administrative expenses above for the similar drivers of this change), ~~and~~partially offset by a ~~$5.4~~$1.2 million ~~increase~~reduction in ~~gain on sale or disposal of assets.~~long-lived asset impairment. RV and Outdoor Retail segment income (loss) margin decreased 403 basis points to ~~3.9% in~~(1.8%) for the ~~nine~~three months ended ~~September 30, 2023~~March 31, 2024 from ~~9.7% in~~ the ~~nine~~three months ended ~~September 30, 2022~~March 31, 2023 primarily due ~~to reduced~~a lower volume of used vehicles sold and a lower average ~~prices and increased average costs~~price per vehicle ~~sold for the nine months ended September 30, 3023 versus the comparable period in 2022.~~

~~Corporate and other expenses~~

The decrease in corporate and other expenses was primarily due to the fees incurred in the first quarter of 2022 relating to the cybersecurity incident in February 2022 that were not recurring in 2023, partially offset by increased professional fees.sold.

Non-GAAP Financial Measures

To supplement our condensed 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, Adjusted Net (Loss) Income Attributable to Camping World Holdings, Inc. – Basic, Adjusted Net (Loss) Income Attributable to Camping World Holdings, Inc. – Diluted, Adjusted (Loss) Earnings Per Share – Basic, and Adjusted (Loss) Earnings Per Share – Diluted (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. 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.

~~Table of Contents~~

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 ~~the 2019 Strategic Shift~~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. For a discussion of ~~the 2019 Strategic Shift,~~restructuring activities, see Note 4 — Restructuring and Long-Lived Asset Impairment to our condensed consolidated financial statements included in Part I, Item 1 of this Form 10-Q.

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.

Table of Contents

EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin

We define “EBITDA” as net (loss) income before other interest expense, net (excluding floor plan interest expense), provision for income tax expense 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 costs,~~ gains and losses on sale or disposal of assets, net, equity-based compensation, ~~Tax Receivable Agreement liability adjustment, restructuring costs related to the Active Sports Restructuring and the 2019 Strategic Shift,~~ loss and impairment on investments in equity securities, 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:


	Three Months Ended September 30,				Nine Months Ended September 30,				Three Months Ended March 31,
($ in thousands)	2023		2022		2023		2022		2024		2023
EBITDA and Adjusted EBITDA:
Net income	$	30,893	$	102,948	$	100,519	$	408,232
Net (loss) income									$	(50,806)	$	4,903
Other interest expense, net		35,242		20,526		99,873		49,762		36,094		31,113
Depreciation and amortization		17,619		18,207		49,462		61,369		19,290		14,637
Income tax expense		3,679		22,397		17,533		75,808
Income tax (benefit) expense										(9,042)		273
Subtotal EBITDA		87,433		164,078		267,387		595,171		(4,464)		50,926
Long-lived asset impairment (a)		1,747		887		9,269		3,505		5,827		7,045
Lease termination (b)		375		—		375		1,122
Loss (gain) on sale or disposal of assets, net (c)		131		(40)		(5,001)		390
Equity-based compensation (d)		5,466		6,792		18,316		27,434
Tax Receivable Agreement liability adjustment (e)		(1,680)		—		(1,680)		—
Restructuring costs (f)		1,549		1,671		4,808		5,548
(Gain) loss and impairment on investments in equity securities (g)		(23)		—		1,660		—
Loss (gain) on sale or disposal of assets, net (b)										1,585		(4,987)
Equity-based compensation (c)										5,197		6,358
Loss and impairment on investments in equity securities (d)										94		1,499
Adjusted EBITDA	$	94,998	$	173,388	$	295,134	$	633,170	$	8,239	$	60,841

~~Table of Contents~~


	Three Months Ended September 30,				Nine Months Ended September 30,				Three Months Ended March 31,
(as percentage of total revenue)	2023		2022		2023		2022		2024		2023
Adjusted EBITDA margin:
Net income margin		1.8%		5.5%		2.0%		7.2%
Net (loss) income margin										(3.7%)		0.3%
Other interest expense, net		2.0%		1.1%		2.0%		0.9%		2.6%		2.1%
Depreciation and amortization		1.0%		1.0%		1.0%		1.1%		1.4%		1.0%
Income tax expense		0.2%		1.2%		0.3%		1.3%
Income tax (benefit) expense										(0.7%)		0.0%
Subtotal EBITDA margin		5.1%		8.8%		5.2%		10.5%		(0.3%)		3.4%
Long-lived asset impairment (a)		0.1%		0.0%		0.2%		0.1%		0.4%		0.5%
Lease termination (b)		0.0%		—		0.0%		0.0%
Loss (gain) on sale or disposal of assets, net (c)		0.0%		(0.0%)		(0.1%)		0.0%
Equity-based compensation (d)		0.3%		0.4%		0.4%		0.5%
Tax Receivable Agreement liability adjustment (e)		(0.1%)		—		(0.0%)		—
Restructuring costs (f)		0.1%		0.1%		0.1%		0.1%
(Gain) loss and impairment on investments in equity securities (g)		(0.0%)		—		0.0%		—
Loss (gain) on sale or disposal of assets, net (b)										0.1%		(0.3%)
Equity-based compensation (c)										0.4%		0.4%
Loss and impairment on investments in equity securities (d)										0.0%		0.1%
Adjusted EBITDA margin		5.5%		9.3%		5.8%		11.1%		0.6%		4.1%

(a)

Represents long-lived asset impairment charges related to the RV and Outdoor Retail segment. See Note 4 – Restructuring and Long-Lived Asset Impairment to our condensed consolidated financial statements included in Part I, Item 1 of this Form 10-Q for additional information.

(b)

Represents the loss on the termination of operating leases resulting from the lease termination fees and the derecognition of the operating lease assets and liabilities. See Note 4– Restructuring and Long-Lived Asset Impairment to our condensed consolidated financial statements included in Part I, Item 1 of this Form 10-Q for additional information.

~~(c)~~

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

~~(d)~~(c)

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

~~(e)~~(d)

Represents an adjustment to eliminate the gains on remeasurement of the Tax Receivable Agreement primarily due to changes in our blended statutory income tax rate. See Note 13 ― Income Taxes to our condensed consolidated financial statements included in Part I, Item 1 of this Form 10-Q.

~~(f)~~

Represents restructuring costs relating to the Active Sports Restructuring during the three and nine months ended September 30, 2023 and our 2019 Strategic Shift for periods ended on or before December 31, 2022. 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. See Note 4 – Restructuring and Long-Lived Asset Impairment to our condensed consolidated financial statements included in Part I, Item 1 of this Form 10-Q for additional information.

~~(g)~~

~~Represents gain and~~ loss and impairment on investments in equity securities and interest income relating to any notes receivables with those investments for periods beginning after December 31, 2022. Amounts relating to periods prior to 2023 were not significant. These amounts are included in other expense, net in the condensed consolidated statements of operations.investments. During the ~~nine~~three months ended ~~September 30,~~March 31, 2023, this amount included a $1.3 million impairment on an equity method investment.

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

We define “Adjusted Net (Loss) Income Attributable to Camping World Holdings, Inc. – Basic” as net (loss) income 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, ~~Tax Receivable Agreement liability adjustment, restructuring costs related to the Active Sports Restructuring and the 2019 Strategic Shift,~~ loss and impairment on investments in equity securities, other unusual or one-time items, the income tax ~~expense~~benefit (expense) effect of these adjustments, and the effect of net (loss) income attributable to non-controlling interests from these adjustments.

We define “Adjusted Net (Loss) Income Attributable to Camping World Holdings, Inc. – Diluted” as Adjusted Net (Loss) Income Attributable to Camping World Holdings, Inc. – Basic adjusted for the reallocation of net (loss) income 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.

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We define “Adjusted (Loss) Earnings Per Share – Basic” as Adjusted Net (Loss) Income Attributable to Camping World Holdings, Inc. - Basic divided by the weighted-average shares of Class A common stock outstanding. We define “Adjusted (Loss) Earnings Per Share – Diluted” as Adjusted Net (Loss) Income 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 (Loss) Income Attributable to Camping World Holdings, Inc. – Basic, Adjusted Net (Loss) Income Attributable to Camping World Holdings, Inc. – Diluted, Adjusted (Loss) Earnings Per Share – Basic, and Adjusted (Loss) Earnings 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.

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

Three Months Ended September 30,

Nine Months Ended September 30,
(In thousands except per share amounts)

2023

2022

2023

2022
Numerator:

Net income attributable to Camping World Holdings, Inc.

$
15,961

$
41,126

$
47,833

$
170,167
Adjustments related to basic calculation:

Long-lived asset impairment (a):

Gross adjustment

1,747

887

9,269

3,505
Income tax expense for above adjustment (b)

(231)

—

(1,233)

(99)
Lease termination (c):

Gross adjustment

375

—

375

1,122
Income tax expense for above adjustment (b)

(50)

—

(50)

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

Gross adjustment

131

(40)

(5,001)

390
Income tax (expense) benefit for above adjustment (b)

(17)

(12)

667

(15)
Equity-based compensation (e):

Gross adjustment

5,466

6,792

18,316

27,434
Income tax expense for above adjustment (b)

(730)

(792)

(2,459)

(3,080)
Tax Receivable Agreement liability adjustment (f):

Gross adjustment

(1,680)

—

(1,680)

—
Income tax benefit for above adjustment (b)

422

—

422

—
Restructuring costs (g):

Gross adjustment

1,549

1,671

4,808

5,548
Income tax expense for above adjustment (b)

(205)

—

(639)

—
(Gain) loss and impairment on investments in equity securities (h):

Gross adjustment

(23)

—

1,660

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

3

—

(222)

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

(4,364)

(4,642)

(13,907)

(18,866)
Adjusted net income attributable to Camping World Holdings, Inc. – basic

18,354

44,990

58,159

186,106
Adjustments related to diluted calculation:

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

—

409

—

1,519
Income tax on reallocation of net income attributable to non-controlling interests from the dilutive effect of stock options and restricted stock units (k)

—

(104)

—

(404)
Reallocation of net income attributable to non-controlling interests from the dilutive redemption of common units in CWGS, LLC (j)

19,296

—

66,593

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

(4,554)

—

(16,140)

—
Adjusted net income attributable to Camping World Holdings, Inc. – diluted

$
33,096

$
45,295

$
108,612

$
187,221

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Three Months Ended September 30,

Nine Months Ended September 30,
(In thousands except per share amounts)

2023

2022

2023

2022
Denominator:

Weighted-average Class A common shares outstanding – basic

44,666

41,985

44,538

42,419
Adjustments related to diluted calculation:

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

40,045

—

40,045

—
Dilutive options to purchase Class A common stock (m)

35

53

26

62
Dilutive restricted stock units (m)

434

467

308

466
Adjusted weighted average Class A common shares outstanding – diluted

85,180

42,505

84,917

42,947

Adjusted earnings per share - basic

$
0.41

$
1.07

$
1.31

$
4.39
Adjusted earnings per share - diluted

$
0.39

$
1.07

$
1.28

$
4.36

Anti-dilutive amounts (n):

Numerator:

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

$
—

$
66,055

$
—

$
255,412
Income tax on reallocation of net income attributable to non-controlling interests from the anti-dilutive redemption of common units in CWGS, LLC (k)

$
—

$
(16,804)

$
—

$
(66,789)
Assumed income tax benefit of combining C-Corps with full or partial valuation allowances with the income of other consolidated entities after the anti-dilutive redemption of common units in CWGS, LLC (l)

$
—

$
627

$
—

$
6,464
Denominator:

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

—

42,045

—

42,045

Reconciliation of per share amounts:

Earnings per share of Class A common stock — basic

$
0.36

$
0.98

$
1.07

$
4.01
Non-GAAP Adjustments (o)

0.05

0.09

0.24

0.38
Adjusted earnings per share - basic

$
0.41

$
1.07

$
1.31

$
4.39

Earnings per share of Class A common stock — diluted

$
0.32

$
0.97

$
1.03

$
3.99
Non-GAAP Adjustments (o)

0.05

0.10

0.23

0.37
Dilutive redemption of common units in CWGS, LLC for shares of Class A common stock (p)

0.02

—

0.02

—
Adjusted earnings per share - diluted

$
0.39

$
1.07

$
1.28

$
4.36


	Three Months Ended March 31,
(In thousands except per share amounts)	2024		2023
Numerator:
Net (loss) income attributable to Camping World Holdings, Inc.	$	(22,307)	$	3,169
Adjustments related to basic calculation:
Long-lived asset impairment (a):
Gross adjustment		5,827		7,045
Income tax expense for above adjustment (b)		(771)		(938)
Loss (gain) on sale or disposal of assets (c):
Gross adjustment		1,585		(4,987)
Income tax (expense) benefit for above adjustment (b)		(210)		665
Equity-based compensation (d):
Gross adjustment		5,197		6,358
Income tax expense for above adjustment (b)		(695)		(857)
Loss and impairment on investments in equity securities (e):
Gross adjustment		94		1,499
Income tax expense for above adjustment (b)		(12)		(200)
Adjustment to net (loss) income attributable to non-controlling interests resulting from the above adjustments (f)		(5,971)		(4,688)
Adjusted net (loss) income attributable to Camping World Holdings, Inc. – basic		(17,263)		7,066
Adjustments related to diluted calculation:
Reallocation of net (loss) income attributable to non-controlling interests from the dilutive redemption of common units in CWGS, LLC (g)		(22,528)		6,422
Income tax on reallocation of net (loss) income attributable to non-controlling interests from the dilutive redemption of common units in CWGS, LLC (h)		5,736		(1,615)
Adjusted net (loss) income attributable to Camping World Holdings, Inc. – diluted	$	(34,055)	$	11,873
Denominator:
Weighted-average Class A common shares outstanding – basic		45,047		44,455
Adjustments related to diluted calculation:
Dilutive redemption of common units in CWGS, LLC for shares of Class A common stock (i)		40,045		40,045
Dilutive options to purchase Class A common stock (i)		—		15
Dilutive restricted stock units (i)		—		202
Adjusted weighted average Class A common shares outstanding – diluted		85,092		84,717

Adjusted (loss) earnings per share - basic	$	(0.38)	$	0.16
Adjusted (loss) earnings per share - diluted	$	(0.40)	$	0.14

Anti-dilutive amounts (j):
Denominator:
Anti-dilutive options to purchase Class A common stock (i)		29		—
Anti-dilutive restricted stock units (i)		264		—

Reconciliation of per share amounts:
(Loss) earnings per share of Class A common stock — basic	$	(0.50)	$	0.07
Non-GAAP Adjustments (k)		0.12		0.09
Adjusted (loss) earnings per share - basic	$	(0.38)	$	0.16

(Loss) earnings per share of Class A common stock — diluted	$	(0.51)	$	0.05
Non-GAAP Adjustments (k)		0.11		0.09
Adjusted (loss) earnings per share - diluted	$	(0.40)	$	0.14

(a)

(b)

Represents the current and deferred income tax expense or benefit effect of the above adjustments. ~~For periods that ended on or before December 31, 2022, many of these adjustments were related to entities with full valuation allowances for which no tax benefit could be recognized.~~ This assumption uses effective tax rates ~~between 25.1%~~of 25.0% and ~~25.4%~~25.3% for the adjustments for the ~~2023~~2024 and ~~2022~~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 termination of operating leases resulting from the lease termination fees and the derecognition of the operating lease assets and liabilities. See Note 4 – Restructuring and Long-Lived Asset Impairment to our condensed consolidated financial statements included in Part I, Item 1 of this Form 10-Q for additional information.

~~(d)~~

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

~~(e)~~(d)

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

~~(f)~~

Represents an adjustment to eliminate the gain on remeasurement of the Tax Receivable Agreement primarily due to changes in our blended statutory income tax rate. See Note 13 ― Income Taxes to our condensed consolidated financial statements included in Part I, Item 1 of this Form 10-Q.

~~(g)~~

Represents restructuring costs relating to Active Sports Restructuring during the three and nine months ended September 30, 2023 and our 2019 Strategic Shift for periods that ended on or before December 31, 2022. 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. See Note 4 – Restructuring and Long-Lived Asset Impairment to our condensed consolidated financial statements included in Part I, Item 1 of this Form 10-Q for additional information.

~~(h)~~(e)

Represents loss and impairment on investments in equity securitiesand interest income relating to any notes receivables with those investments for periods beginning after December 31, 2022. Amounts relating to periods prior to 2023 were not significant. These amounts are included in other expense, net in the condensed consolidated statements of operations.investments. During the ~~nine~~three months ended ~~September 30,~~March 31, 2023, this amount included a $1.3 million impairment on an equity method investment.

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~~(i)~~(f)

Represents the adjustment to net (loss) income attributable to non-controlling interests resulting from the above adjustments that impact the net (loss) income of CWGS, LLC. This adjustment uses the non-controlling interest’s weighted average ownership of CWGS, LLC of ~~47.3%~~47.1% and

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~~50.0%~~ 47.4% for the three months ended ~~September 30,~~March 31, 2024 and 2023, ~~and 2022,~~ respectively, ~~and 47.3% and 49.8% for the nine months ended September 30, 2023 and 2022, respectively.~~

~~(j)~~(g)

Represents the reallocation of net (loss) income 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.

~~(k)~~(h)

Represents the income tax expense effect of the above adjustment for reallocation of net (loss) income attributable to non-controlling interests. This assumption uses effective tax rates ~~between 25.1%~~of 25.0% and ~~25.4%~~25.3% for the adjustments for the 2024 and 2023 ~~and 2022~~ periods.

~~(l)~~

As a result of the LLC Conversion, this adjustment only relates to periods ended on or before December 31, 2022. Typically represents adjustments to reflect the income tax benefit of losses of consolidated C-Corps that under the Company’s previous equity structure, prior to the LLC Conversion, could not be used against the income of other consolidated subsidiaries of CWGS, LLC. Subsequent to the redemption of all common units in CWGS, LLC and prior to the LLC Conversion, the Company believes certain actions could have been taken such that the C-Corps’ losses could offset income of other consolidated subsidiaries. The adjustment reflects the income tax benefit assuming effective tax rate of 25.4% during 2022 for the losses experienced by the consolidated C-Corps for which valuation allowances had been recorded. No assumed release of valuation allowance established for previous periods were included in these amounts. Beginning in 2023, these C-Corp losses offset income of other consolidated subsidiaries as a result of LLC Conversion at or around December 31, 2022.

~~(m)~~(i)

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

~~(n)~~(j)

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

~~(o)~~(k)

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

~~(p)~~

Represents the per share impact of stock options, restricted stock units, and/or common units of CWGS, LLC from the difference in their dilutive impact between the GAAP and Non-GAAP earnings per share calculations.

As discussed under “Our Corporate Structure Impact on Income Taxes” in Part I, Item 2 of this Form 10-Q, 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 (loss) earnings 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 (loss) earnings 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 ~~(n)~~(j) above).

Liquidity and Capital Resources

General

Our primary requirements for liquidity and capital have been working capital, inventory management, acquiring and building new ~~RV dealership~~store locations, the improvement and expansion of existing ~~retail~~store locations, debt service, distributions to holders of equity interests in CWGS, LLC and our Class A common stock, and general corporate needs. These cash requirements have historically been met through cash provided by operating activities, cash and cash equivalents, proceeds from registered offerings of our Class A common stock, borrowings under our Senior Secured Credit Facilities (as defined in Part I, Item 1 of this Form 10-Q), borrowings under our Floor Plan Facility (as defined in Part I, Item 1 of this Form 10-Q), and borrowings under our Real Estate Facilities (as defined in Part I, Item 1 of this Form 10-Q).

~~As a public company, our~~Our additional liquidity needs are expected to include public company costs, payment of cash dividends, any exercise of the redemption right by the Continuing Equity Owners from time to time (should we elect to redeem common units for a cash payment), our stock repurchase program as described below, payments under the Tax Receivable Agreement, and state and federal taxes to the extent not reduced as a result of the Tax Receivable Agreement. The Continuing Equity Owners may exercise such redemption right for as long as their common units remain outstanding. Although the actual timing and amount of any payments that may be made under the Tax Receivable Agreement will vary, we expect that the payments that we will be required to make to the Continuing Equity Owners, Former Profits Unit Holders and Crestview Partners II GP, L.P. will be significant. Any payments made by us to Continuing Equity Owners, Former Profits Unit Holders and Crestview Partners II GP, L.P. under the Tax Receivable Agreement will generally reduce the amount of overall cash flow that might have otherwise been available to us or to CWGS, LLC and, to the extent that we are unable to make payments under the Tax Receivable Agreement for any reason, the unpaid amounts generally will be deferred and will accrue interest until paid by us; provided, however, that nonpayment for a specified period may constitute a material breach of a material obligation under the Tax Receivable Agreement

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and therefore may accelerate payments due under the Tax Receivable Agreement. For a discussion of the Tax Receivable Agreement, see Note 13 — Income Taxes to our condensed consolidated financial statements included in Part I, Item 1 of this Form 10-Q.

Stock Repurchase Program

During the three months ended ~~September 30, 2023,~~March 31, 2024, we did not repurchase Class A common stock under our stock repurchase program, which expires on December 31, 2025. As of ~~September 30, 2023,~~March 31, 2024, $120.2 million was available under the stock repurchase program to repurchase additional shares of our Class A common stock.

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Dividends

On May 24, 2023, in conjunction with the announcement of the declaration of the second quarter 2023 dividend to holders of Class A common stock, we announced that we had initiated an analysis of our capital allocation strategy as part of our commitment to driving long-term growth and maintaining a competitive dividend. After completing the capital allocation strategy analysis during July 2023, weWe announced on August 1, 2023, that the Board of Directors approved a decrease of the quarterly cash dividend to $0.125 per share of Class A common stock from $0.625 per share, beginning with the quarterly cash dividend to be paid in September 2023. For the quarter ended March 31, 2024, we paid our quarterly cash dividend of $0.125 per share of Class A common stock for an aggregate $5.6 million. This dividend was funded entirely from the Excess Tax Distribution (as defined under “Dividend Policy” included in Part II, Item 5 of our Annual Report), with no portion funded by common unit cash distributions from CWGS, LLC. We believe that this decrease in the quarterly cash dividend will help us continue to execute our expansion plans through accretive RV dealership acquisitions.

For each of the quarters from the three months ended March 31, 2022 to the three months ended June 30, 2023, we paid a quarterly cash dividend on our Class A common stock of $0.625 per share, which was funded with a $0.15 per common unit cash distribution from CWGS, LLC and the remaining $0.475 per share of Class A common stock funded with all or a portion of the Excess Tax Distribution.

Our ability to pay cash dividends on our Class A common stock depends on, among other things, our results of operations, financial condition, level of indebtedness, capital requirements, contractual restrictions, restrictions in our debt agreements and in any preferred stock, restrictions under applicable law, the extent to which such distributions would render CWGS, LLC insolvent, our business prospects and other factors that our Board of Directors may deem relevant. Our dividend policy has certain risks and limitations particularly with respect to liquidity, and we may not pay future dividends according to our policy, or at all. See “Dividend Policy” included in Part II, Item 5 of our Annual Report and “Risk Factors ─ Risks Relating to Ownership of Our Class A Common Stock ─ Our ability to pay regular and special dividends on our Class A common stock is subject to the discretion of our Board of Directors and may be limited by our structure and statutory restrictions” included in Part I, Item 1A of our Annual Report.

Acquisitions and Capital Expenditures

During the ~~nine~~three months ended ~~September 30, 2023,~~March 31, 2024, the RV and Outdoor Retail segment purchased real property for an aggregate purchase price of ~~$64.3~~$1.2 million.

We announced a number of initiatives heading into 2023, including an online RV sales process, service bay expansion, the addition of design centers to our existing store footprint, and continued expansion through dealership acquisitions. We have also announced a number of land acquisitions in anticipation of constructing new stores.

Over the next twelve months, our expansion of dealerships through ~~acquisition~~construction and ~~construction~~acquisition is expected to cost between ~~$90.0~~$70.0 million and ~~$130.0~~$90.0 million from a combination of business acquisitions and capital expenditures relating to land, buildings, and improvements. ~~Included in this range is $48.3 million related to business acquisitions where, at a minimum, we have already signed a letter of intent with the seller.~~ These cost estimates exclude amounts for acquired inventories, which are primarily financed through our Floor Plan Facility. Additionally, the cost estimates do not consider potential funding received through sale leaseback transactions or other means for real estate and construction activities. We are in the early stages of evaluating

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additional dealership acquisition opportunities and will update our cost estimates in future periodic reports, if necessary, as there are further developments. Factors that could impact the quantity of future locations or the cost to acquire or open those locations include, but are not limited to, our ability to locate potential acquisition targets or greenfield locations in a geographic area and at a cost that meets our success criteria; continued strong cash flow generation from our operations to fund these acquisitions and new locations; and availability of financing on our Floor Plan Facility. We expect the additional cash requirements of the other announced initiatives to be immaterial.

2019 Strategic Shift and Active Sports Restructuring

In connection with the 2019 Strategic Shift during the nine months ended September 30, 2023, we paid or otherwise settled $2.9 million of other associated costs. We expect that up to approximately $1.6 million of other associated costs and $0.6 million to $7.6 million of lease termination costs will result in future cash expenditures. The process of identifying subtenants and negotiating lease terminations has been delayed, which initially was in part due to the COVID-19 pandemic, and these delays are expected to continue. The timing of these negotiations will vary as both subleases and terminations are contingent on landlord approvals. We expect that certainSee “Restructuring” above for a summary of the ~~remaining leases under the 2019 Strategic Shift will be under contract to sublease or terminated by December 31, 2023. The remaining~~ ongoing other associated costs, net of associated sublease income, are expected to be immaterial in periods after December 31, 2023. For a discussion of the 2019 Strategic Shift and other restructuring activities, see Note 4 — Restructuring and Long-Lived Asset Impairmentcash requirements related to our ~~condensed consolidated financial statements included in Part I, Item 1 of this Form 10-Q.~~restructuring activities.

Other Cash Requirements or Commitments

Substantially all of our new RV inventory and, at times, certain of our used RV inventory is financed under our Floor Plan Facility (defined in Note 3 – Inventories and Floor Plan Payables to our condensed consolidated financial statements included in Part I, Item 1 of this Form 10-Q). See “Summary of Credit Facilities, Other Long-Term Debt, and Finance Lease Arrangements” for a summary of the cash requirements related to our indebtedness.

Cash requirements relating to the Tax Receivable Agreement liability, operating and finance lease obligations, and service and marketing sponsorship agreements have not materially changed since our Annual Report.

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Sources of Liquidity and Capital

We believe that our sources of liquidity and capital including cash provided by operating activities and borrowings under our various credit facilities, other long-term debt, and finance lease arrangements (see Liquidity and Capital Resources — Summary of Credit Facilities, Other Long-Term Debt, and Finance Lease Arrangements in Part I, Item 2 of this Form 10-Q), including additional borrowing capacity where applicable, will be sufficient to finance our continued operations, growth strategy, including the opening of any additional ~~RV dealership~~store locations, quarterly cash dividends (as described above), required payments for our obligations under the Tax Receivable Agreement, and additional expenses we expect to incur for at least the next twelve months. However, we cannot assure you that our cash provided by operating activities, cash and cash equivalents or cash available under our Revolving Credit Facility, our Floor Plan Facility, and our Real Estate Facilities, ~~including any potential additional borrowings,~~ will be sufficient to meet our future needs. If we are unable to generate sufficient cash flows from operations in the future and if availability under our Revolving Credit Facility, our Floor Plan Facility, our Real Estate Facilities is not sufficient, we may have to obtain additional financing. If we obtain additional capital by issuing equity, the interests of our existing stockholders will be diluted. If we incur additional indebtedness, that indebtedness may impose significant financial and other covenants that may significantly restrict our operations. We cannot assure you that we could obtain refinancing or additional financing on favorable terms or at all, including the expected additional borrowings noted above and particularly in light of the current macroeconomic uncertainty. See “Risk Factors — Risks Related to our Business — Our ability to operate and expand our business and to respond to changing business and economic conditions will depend on the availability of adequate capital” included in Part I, Item 1A of our Annual Report.

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As of ~~September 30, 2023,~~March 31, 2024, December 31, ~~2022,~~2023, and ~~September 30, 2022,~~March 31, 2023, we had working capital of ~~$523.7~~$381.6 million, ~~$611.3~~$401.3 million, and ~~$675.5~~$654.1 million, respectively, including ~~$53.3~~$29.7 million, ~~$130.1~~$39.6 million, and ~~$148.2~~$72.8 million, respectively, of cash and cash equivalents. Our working capital reflects the cash provided by deferred revenue and gains reported under current liabilities of ~~$99.8~~$95.9 million, ~~$95.7~~$92.4 million, and ~~$101.9~~$94.2 million as of ~~September 30, 2023,~~March 31, 2024, December 31, ~~2022,~~2023, and ~~September 30, 2022,~~March 31, 2023, respectively. Deferred revenue primarily consists of cash collected for club memberships and roadside assistance contracts in advance of services to be provided, which is deferred and recognized as revenue over the life of the membership, and deferred revenue for the annual guide. We use net proceeds from this deferred membership revenue to lower our long-term borrowings and finance our working capital needs. Our Floor Plan Facility includes a flooring line aggregate interest reduction (“FLAIR”) offset account that allows us to transfer cash as an offset to the payables under the Floor Plan Facility. The FLAIR offset account at ~~September 30, 2023~~March 31, 2024 was ~~$207.4~~$147.7 million, ~~all~~$34.1 million of which could have been withdrawn while remaining in compliance with the financial covenants of the Floor Plan Facility.

Seasonality

We have experienced, and expect to continue to experience, variability in revenue, net income, and cash flows as a result of annual seasonality in our business (see Note 1 — Summary of Significant Accounting Policies — Seasonality to our condensed consolidated financial statements included in Part I, Item 1 of this Form 10-Q).

Cash Flow

The following table shows summary cash flow information for the ~~nine~~three months ended ~~September 30, 2023~~March 31, 2024 and ~~2022:~~2023:



	Nine Months Ended September 30,				Three Months Ended March 31,
(In thousands)	2023		2022		2024		2023
Net cash provided by operating activities	$	543,273	$	523,919
Net cash (used in) provided by operating activities					$	(67,982)	$	199,217
Net cash used in investing activities		(277,535)		(239,305)		(59,498)		(20,687)
Net cash used in financing activities		(342,551)		(403,711)
Net cash provided by (used in) financing activities						117,551		(235,833)
Net decrease in cash and cash equivalents	$	(76,813)	$	(119,097)	$	(9,929)	$	(57,303)

Operating activities. Our cash flows from operating activities are primarily collections from contracts in transit and customers following the sale of new and used vehicles, as well as from the sale of retail products and services and Good Sam services and plans. Contracts in transit represent amounts due from third-party lenders from whom pre-arranged agreements have been determined, and to whom the retail installment sales

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contracts have been assigned. Our primary uses of cash from operating activities are repayments of vehicle floor plan payables, payments to retail product suppliers, personnel-related expenditures, payments related to leased property, advertising, and various services and program costs.

Net cash ~~provided by~~used in operating activities was ~~$543.3~~$68.0 million in the ~~nine~~three months ended ~~September 30, 2023, an increase~~March 31, 2024, a decrease of ~~$19.4~~$267.2 million from ~~$523.9~~$199.2 million of net cash provided by operating activities in the ~~nine~~three months ended ~~September 30, 2022.~~March 31, 2023. The ~~increase~~decrease was primarily due to a ~~$416.6~~$137.6 million ~~increase~~decrease in the working capital adjustment for inventory, ~~an $8.8~~a $55.7 million ~~increase~~reduction in net income, a $39.5 million decrease in the working capital adjustment for accounts payable and other accrued expenses, a $28.7 million decrease in the working capital adjustment for prepaid expenses and other assets, ~~and~~ a ~~$5.8 million increase in long-lived asset impairment, partially offset by a $307.7 million reduction in net income, a $39.7~~$16.1 million decrease in the working capital adjustment for ~~accounts payable~~receivables and ~~accrued expenses,~~contracts in transit, a ~~$26.9~~$1.0 million decrease in non-cash lease expense, a $1.2 million decrease in long-lived asset impairment, a $1.2 million decrease in equity-based compensation and a $0.5 million increase in deferred income taxes, partially offset by a $6.6 million increase in loss on sale or disposal of assets, a $5.8 million increase in the working capital adjustment for deferred revenue, a $4.7 million in increase in depreciation and amortization, a $3.4 million decrease in the working capital adjustment for ~~accounts receivable~~other, net, and ~~contracts in transit, an $11.9 million decrease in depreciation and amortization,~~ a ~~$9.1 million decrease in equity-based compensation, a $6.6 million decrease in deferred revenue, a $5.4~~$0.5 million increase in ~~gain~~provisions for losses on ~~sale or disposal of assets, and a $3.2 million decrease in deferred income taxes.~~accounts receivable.

Investing activities. Our investment in business activities primarily consists of expanding our operations through organic growth and the acquisition of RV dealership locations. Substantially all of our new RV dealership locations and capital expenditures have been financed using cash provided by operating activities and borrowings under our various credit facilities, other long-term debt, and finance lease arrangements, as applicable (see Liquidity and Capital Resources — Summary of Credit Facilities, Other Long-Term Debt, and Finance Lease Arrangements in Part I, Item 2 of this Form 10-Q).

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The table below summarizes our capital expenditures for the ~~nine~~three months ended ~~September 30, 2023~~March 31, 2024 and ~~2022:~~2023:



	Nine Months Ended September 30,				Three Months Ended March 31,
(In thousands)	2023		2022		2024		2023
IT hardware and software	$	9,691	$	9,454	$	5,146	$	3,074
Greenfield and acquired dealership locations		33,159		49,079		3,999		11,757
Existing retail locations		44,482		55,445
Existing store locations						12,916		9,776
Corporate and other		8,309		4,467		3,866		707
Total capital expenditures	$	95,641	$	118,445	$	25,927	$	25,314

Our capital expenditures consist primarily of investing in acquired and greenfield retail and RV dealership locations, existing retail locations, information technology, hardware, and software. The expected minimum capital expenditures relating to new dealerships and real estate purchases through December 31, ~~2023~~2024 are discussed above. As of ~~September 30, 2023,~~March 31, 2024, we had entered into contracts for construction of new dealership buildings for an aggregate future commitment of capital expenditures of ~~$31.4~~$26.7 million. There were no other material commitments for capital expenditures as of ~~September 30, 2023.~~March 31, 2024.

Net cash used in investing activities was ~~$277.5~~$59.5 million for the ~~nine~~three months ended ~~September 30, 2023.~~March 31, 2024. The ~~$277.5~~$59.5 million of cash used in investing activities was comprised of ~~$150.5~~$58.8 million for the acquisition of RV dealerships, net of cash acquired, ~~$95.6~~$25.9 million of capital expenditures primarily related to retail locations, ~~$64.3~~$1.2 million for the purchases of real property, ~~$3.4 million for the purchase of~~ and ~~loans to other investments, and $2.0~~$0.1 million for the purchases of intangible assets, partially offset by $23.9 million of proceeds from the sale of real property, $2.6 million of ~~$35.6~~proceeds from the sale of intangible assets, and $0.1 million ~~and~~of proceeds ~~of $2.7~~from ~~million from~~ the sale of property and equipment.

Net cash used in investing activities was ~~$239.3~~$20.7 million for the ~~nine~~three months ended ~~September 30, 2022.~~March 31, 2023. The ~~$239.3~~$20.7 million of cash used in investing activities was comprised of ~~$118.4~~$25.3 million of capital expenditures primarily related to retail locations ~~$83.2 million for the purchase of RV~~ and ~~outdoor retail businesses and a publication business, $41.7~~$18.2 million for the purchases of real property, ~~$3.0~~including $4.9 million ~~for~~related to a purchase ~~of other investments, and $0.9 million for the purchase of intangible assets,~~option exercised on leased property, partially offset by proceeds from the sale of real property of ~~$6.8~~$22.7 million and proceeds of ~~$1.1~~$0.2 million from the sale of property and equipment. See Note 12 – Acquisitions to our condensed consolidated financial statements included in Part 1, Item 1 of this Form 10-Q.

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Financing activities. Our financing activities primarily consist of proceeds from the issuance of debt, the repayment of principal, cash dividends to holders of Class A common stock, and cash distributions to holders of CWGS, LLC common units.

Our net cash provided by financing activities was $117.6 million for the three months ended March 31, 2024. The $117.6 million of cash provided by financing activities was primarily due to $93.3 million of net proceeds from borrowings under the Floor Plan Facility, $55.6 million of proceeds from long-term debt, $43.0 million from borrowings on revolving line of credit and $0.1 million of proceeds from exercise of stock options, partially offset by $32.0 million of payments on the revolving line of credit, $23.4 million payments on long-term debt, $9.9 million of member distributions, $5.6 million of dividends paid on Class A common stock, $1.8 million for finance lease payments, $0.9 million of payment of debt issuance costs, and $0.7 million of withholding taxes paid upon the vesting of restricted stock units.

Our net cash used in financing activities was ~~$342.6~~$235.8 million for the ~~nine~~three months ended ~~September 30,~~March 31, 2023. The ~~$342.6~~$235.8 million of cash used in financing activities was primarily due to ~~$273.5~~$249.8 million of net payments on borrowings under the Floor Plan Facility, ~~$61.2~~$27.8 million of dividends paid on Class A common stock, ~~$26.6~~$9.1 million of payments on long-term debt, ~~$31.6~~$6.0 million of member distributions, ~~$4.2~~$1.2 million for finance lease payments, ~~$4.1~~$0.8 million for debt issuance costs payments, and $0.3 million of withholding taxes paid upon the vesting of restricted stock units, ~~(“RSUs”), and $0.9 million for debt issuance costs payments,~~ partially offset by $59.2 million of proceeds from long-term ~~debt and by $0.3 million of proceeds from exercise of stock options.~~debt.

~~Our net cash used in financing activities was $403.7 million for the nine months ended September 30, 2022.~~ The $403.7 million of cash used in financing activities was primarily due to $156.6 million of member distributions, $99.8 million of net payments on borrowings under the Floor Plan Facility, $79.8 million for the repurchase of Class A common stock, $78.9 million of dividends paid on Class A common stock, $11.9 million of payments on long-term debt, $4.5 million for finance lease payments, $6.5 million of withholding taxes paid upon the vesting of restricted stock units (“RSUs”), and $0.1 million for sale-leaseback arrangement payments, partially offset by $28.0 million of net proceeds from a sale-leaseback arrangement, $6.0 million of proceeds from landlord funded construction on finance leases, and $0.3 million of proceeds from exercise of stock options.

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Summary of Credit Facilities, Other Long-Term Debt, and Finance Lease Arrangements

As of March 31, 2024, we had outstanding debt in the form of our Senior Secured Credit Facilities, our Floor Plan Facility, our Real Estate Facilities, other long-term debt, and finance lease obligations. We may from time to time seek to refinance, retire or exchange our outstanding debt. Such refinancings, repayments or exchanges, if any, will depend on prevailing market conditions, our liquidity requirements, contractual restrictions and other factors. The amounts involved may be material.

The following table shows a summary of the outstanding balances, current portion, and remaining available borrowings under our credit facilities, ~~and~~ other long-term debt and finance lease arrangements (see definitions and further details in Note 3 – Inventories and Floor Plan Payables, Note 7 – Long-Term Debt, and Note 8 – Leases to our condensed consolidated financial statements included in Part I, Item 1 of this Form 10-Q) at ~~September 30, 2023:~~March 31, 2024:


				Current			Remaining						Current		Remaining
(In thousands)	Outstanding			Portion			Available			Outstanding			Portion		Available
Floor Plan Facility:
Notes payable - floor plan	$	1,017,543		$	1,017,543		$	519,911	⁽¹⁾	$	1,414,696		$	1,414,696	$	164,800	⁽¹⁾
Revolving line of credit		20,885			—			49,115	⁽²⁾		31,885			—		38,115	⁽²⁾
Senior Secured Credit Facilities:
Term Loan Facility		1,348,882			14,015			—			1,343,580			14,015		—
Revolving Credit Facility		—			—			22,750	⁽³⁾		—			—		22,750	⁽³⁾
Other:
Real Estate Facilities		192,565	⁽⁴⁾		9,124	⁽⁴⁾		68,394	⁽⁵⁾		219,068	⁽⁴⁾		11,310		7,390	⁽⁴⁾
Other long-term debt		8,327			319			—			8,168			326		—
Finance lease obligations		104,623			5,563			—			155,298			19,014		—
	$	2,692,825		$	1,046,564		$	660,170		$	3,172,695		$	1,459,361	$	233,055

(1)

The unencumbered borrowing capacity for the Floor Plan Facility represents the additional borrowing capacity less any accounts payable for sold inventory and less any purchase commitments. Additional borrowings are subject to the vehicle collateral requirements under the Floor Plan Facility. ~~In July 2023, an amendment to the~~The Floor Plan Facility ~~increased~~also includes an accordion feature allowing us, at our option, to request to increase the ~~borrowing capacity under~~aggregate amount of the floor plan notes payable ~~by $150.0~~in $50.0 million increments up to a maximum amount of $300.0 million. The Floor Plan Lenders are not under any obligation to provide commitments in respect of any future increase under the accordion feature.

(2)

The revolving line of credit borrowings are ~~limited by~~subject to a borrowing base calculation but were not limited as of ~~September 30, 2023.~~March 31, 2024.

(3)

The Revolving Credit Facility remaining available balance was reduced by outstanding undrawn letters of credit. The Credit Agreement requires compliance with a Total Net Leverage Ratio covenant when borrowings on the Revolving Credit Facility (excluding certain amounts relating to letters of credit) is over a 35%, or $22.8 million, threshold (Note 7 – Long-Term Debt to our condensed consolidated financial statements included in Part I, Item 1 of this Form 10-Q). The otherwise remaining available borrowings of $60.1 million were reduced by $37.3 million to $22.8 million in light of this financial covenant at ~~September 30, 2023.~~March 31, 2024.

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(4)

~~Includes $4.0 million outstanding and $0.2 million current portion that are classified as liabilities related to assets held for sale (see Note 5 – Assets Held for Sale).~~

~~(5)~~

Additional borrowings on the Real Estate Facilities are subject to a debt service coverage ratio covenant and to the property collateral requirements under the Real Estate Facilities. Under the M&T Real Estate Facility, we have an option to request an additional $100.0 million of principal capacity. The lenders under the M&T Real Estate Facility are not under any obligation to provide commitments in respect of any such increase.

We have experienced an increase in interest rates, which are expected to remain elevated throughout ~~2023 and continuing into~~ 2024. As of ~~September 30,~~March 31, 2024 and 2023, ~~and 2022,~~ the applicable interest rate for the floor plan notes payable under the Floor Plan Facility was ~~7.27%~~7.87% and ~~4.30%~~6.63%, respectively. As of ~~September 30,~~March 31, 2024 and 2023, ~~and 2022,~~ the average interest rate for the Term Loan Facility was ~~7.95%~~7.94% and ~~5.34%~~7.20%, respectively. The increase in interest rates and, to a lesser extent, higher average principal balances on our Real Estate Facilities have resulted in a combined year-over-year increase of our floor plan interest expense and other interest expense, net of ~~$25.0 million and $86.9~~$12.1 million for the three ~~and nine~~ months ended ~~September 30, 2023~~March 31, 2024 compared to the three ~~and nine~~ months ended ~~September 30, 2022,~~March 31, 2023, respectively.

Sale/Leaseback Arrangements

We have in the past and may in the future enter into sale-leaseback transactions to finance certain property acquisitions and capital expenditures, pursuant to which we sell property and/or leasehold improvements to third parties and agree to lease those assets back for a certain period of time. Such sales generate proceeds which vary from period to period.

~~On February 8, 2022, FRHP Lincolnshire, LLC sold~~ During the three ~~properties for a total sale price of $28.0 million. Concurrent with the sale of these properties, the Company~~months ended March 31, 2024, we entered into ~~three separate twenty-year lease agreements, whereby~~sale-leaseback transactions for two properties associated with store locations in the ~~Company will lease back the properties from the acquiring company. Under each lease agreement, FR has four consecutive options to extend the lease term for additional periods~~RV and Outdoor Retail segment. We received consideration of ~~five years for each option. This transaction is accounted for as a financing transaction. The Company~~$23.5 million of cash and recorded a ~~liability for the amount received, will continue to depreciate the non-land portion~~gain of ~~the assets, and has imputed an interest rate so~~$0.1 million that ~~the net carrying amount of the financial liability and remaining assets will be zero at the~~

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~~end of the initial lease terms. The financial liability~~ is included in ~~other long-term liabilities~~loss (gain) on sale or disposal of assets in the condensed consolidated ~~balance sheet~~statements of income for the three months ended March 31, 2024. We entered into a 20-year lease agreement as the lessee with each buyer of ~~September 30, 2023.~~the properties.

Deferred Revenue

Deferred revenue consists of our sales for products not yet recognized as revenue at the end of a given period. Our deferred revenue as of ~~September 30, 2023~~March 31, 2024 was ~~$170.0~~$161.8 million.

Critical Accounting Policies and Estimates

We prepare our condensed consolidated financial statements in accordance with GAAP, and in doing so, we have to make estimates, assumptions and judgments affecting the reported amounts of assets, liabilities, revenues and expenses, as well as the related disclosure of contingent assets and liabilities. We base our estimates, assumptions and judgments on historical experience and on various other factors we believe to be reasonable under the circumstances. Different assumptions and judgments would change estimates used in the preparation of our condensed consolidated financial statements, which, in turn, could change our results from those reported. We evaluate our critical accounting estimates, assumptions and judgments on an ongoing basis.

There has been no material change in our critical accounting policies and estimates from those previously reported and disclosed in our Annual Report.

Recent Accounting Pronouncements

See Note 1 – Summary of Significant Accounting Policies to our condensed consolidated financial statements in Item 1, Part I of this Form 10-Q.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

~~We are exposed to~~For a discussion of the Company’s quantitative and qualitative disclosures about market ~~risk from~~risks, see Item 7A. Quantitative and Qualitative Disclosures About Market Risks, in our Annual Report. As of March 31, 2024, there have been no material changes in ~~interest rates. This market risk arises in the normal course of business, as we do not engage in speculative trading activities. The following analysis provides quantitative information regarding~~ this ~~risk.~~information.

~~Interest Rate Risk~~

Our operating results are subject to risk from interest rate fluctuations on our Senior Secured Credit Facilities, our Floor Plan Facility, and our Real Estate Facilities, which carry variable interest rates. Interest rate risk is the exposure to loss resulting from changes in the level of interest rates and the spread between different interest rates. Because our Senior Secured Credit Facilities, Floor Plan Facility, and Real Estate Facilities bear interest at variable rates, we are exposed to market risks relating to changes in interest rates. Interest rate risk is highly sensitive due to many factors, including U.S. monetary and tax policies, U.S. and international economic factors and other factors beyond our control.

Based on September 30, 2023 debt levels (see Liquidity and Capital Resources — Summary of Credit Facilities, Other Long-Term Debt, and Finance Lease Arrangements in Part I, Item 2 of this Form 10-Q), an increase or decrease of 100 basis points in the effective interest rate would cause an increase or decrease in interest expense:

•

~~under our Term Loan Facility of $13.9 million over the next 12 months;~~

•

~~under our Floor Plan Facility of approximately $10.3 million over the next 12 months;~~

•

~~under our Floor Plan Facility revolving line of credit of approximately $0.2 million over the next 12 months;~~

•

~~under our Real Estate Facilities of approximately $2.0 million over the next 12 months; and~~

•

~~under our Other Long-Term Debt would be immaterial.~~

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See “Results of Operations” in Part I, Item 2 of this Form 10-Q for a discussion of interest expense for the nine months ended September 30, 2023 compared to the nine months ended September 30, 2022, respectively.

~~We do not use derivative financial instruments for speculative or trading purposes, but this does not preclude our adoption of specific hedging strategies in the future.~~

Item 4. Controls and Procedures

Limitations on Effectiveness of Controls and Procedures

In designing and evaluating our disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. In addition, the design of disclosure controls and procedures must reflect the fact that there are resource constraints and that management is required to apply judgment in evaluating the benefits of possible controls and procedures relative to their costs.

Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated, as of the end of the period covered by this Quarterly Report on Form 10-Q, the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)). Based on that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective at the reasonable assurance level as of ~~September 30, 2023.~~March 31, 2024.

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) identified in connection with the evaluation of our internal control performed during the fiscal quarter ended ~~September 30, 2023,~~March 31, 2024, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

Part II. Other Information

Item 1. Legal Proceedings

See Note 10 – Commitments and Contingencies to our condensed consolidated financial statements in Item 1, Part I of this Form 10-Q.

Item 1A. Risk Factors

There have been no material changes to our risk factors as previously disclosed in Item 1A of Part I of our Annual ~~Report on Form 10-K for the year ended December 31, 2022 filed with the Securities and Exchange Commission on February 23, 2023.~~Report.

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Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities

The following table presents information related to our repurchases of Class A common stock for the periods indicated:


Period	Total Number of Shares Purchased	Average Price Paid per Share	Total Number of Shares Purchased as Part of Publicly Announced Programs⁽¹⁾	Approximate Dollar Value of Shares that May Yet Be Purchased Under the Programs⁽¹⁾
~~July~~January 1, ~~2023~~2024 to ~~July~~January 31, ~~2023~~2024	—	$—	—	$120,166,000
~~August~~February 1, ~~2023~~2024 to ~~August 31, 2023~~February 29, 2024	—	—	—	120,166,000
~~September~~March 1, ~~2023~~2024 to ~~September 30, 2023~~March 31, 2024	—	—	—	120,166,000
Total	—	$—	—	$120,166,000

(1)

On October 30, 2020, our Board of Directors authorized a stock repurchase program for the repurchase of up to $100.0 million of the Company’s Class A common stock, expiring on October 31, 2022. In August 2021 and January 2022, our Board of Directors authorized increases to the stock repurchase program for the repurchase of up to an additional $125.0 million and $152.7 million of the Company’s Class A common stock, respectively. Following these extensions, the stock repurchase program now expires on December 31, 2025. This

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program does not obligate the Company to acquire any particular amount of Class A common stock and the program may be extended, modified, suspended or discontinued at any time at the board’s discretion.

The table above excludes shares net settled by the Company in connection with tax withholdings associated with the vesting of restricted stock units as these shares were not issued and outstanding.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

(a)	Disclosure in lieu of reporting on a Current Report on Form 8-K.

None.

(b)	Material changes to the procedures by which security holders may recommend nominees to the board of directors.

None.

(c)	Insider trading arrangements and policies.

During the three months ended ~~September 30, 2023,~~March 31, 2024, no director or officer of the Company adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K.

Item 6. Exhibits

Exhibits Index


		Incorporated by Reference						Incorporated by Reference
Exhibit Number	Exhibit Description	Form	File No.	Exhibit	Filing Date	Filed/ Furnished Herewith	Exhibit Description	Form	File No.	Exhibit	Filing Date	Filed/ Furnished Herewith
3.1	Amended and Restated Certificate of Incorporation of Camping World Holdings, Inc.	10-Q	001-37908	3.1	11/10/16

3.2	Amended and Restated Bylaws of Camping World Holdings, Inc.	10-Q	001-37908	3.2	11/10/16

4.1	Specimen Stock Certificate evidencing the shares of Class A common stock	S-1/A	333-211977	4.1	9/13/16		Specimen Stock Certificate evidencing the shares of Class A common stock	S-1/A	333-211977	4.1	9/13/16

10.1							Camping World Holdings, Inc. Non-Employee Director Compensation Policy					*

31.1							Rule 13a-14(a) / 15d-14(a) Certification of Chief Executive Officer					*

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Incorporated by Reference

Exhibit
Number

Exhibit Description

Form

File No.

Exhibit

Filing
Date

Filed/
Furnished
Herewith
10.1

Amendment No. 1 to the Eighth Amended and Restated Credit Agreement, dated July 18, 2023, among FreedomRoads, LLC, as the company and a borrower, certain subsidiaries of FreedomRoads, LLC, as subsidiary borrowers, Bank of America, N.A., as administrative agent, and the lenders party thereto

8-K

001-37908

10.1

7/20/23

10.2

Second Amendment to Employment Agreement with Karin L. Bell, dated July 13, 2023

10-Q

001-37908

10.2

8/2/23

10.3

Employment Agreement, effective as of July 13, 2023 between Camping World Holdings, Inc., CWGS Enterprises, LLC and Thomas E. Kirn

10-Q

001-37908

10.3

8/2/23

10.4

Employment Agreement, effective as of July 13, 2023 between Camping World Holdings, Inc., CWGS Enterprises, LLC and Lindsey Christen

10-Q

001-37908

10.4

8/2/23

31.1

Rule 13a-14(a) / 15d-14(a) Certification of Chief Executive Officer

*

31.2

Rule 13a-14(a) / 15d-14(a) Certification of Chief Financial Officer

*

32.1

Section 1350 Certification of Chief Executive Officer

**

32.2

Section 1350 Certification of Chief Financial Officer

**

101.INS

Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.

***

101.SCH

Inline XBRL Taxonomy Extension Schema Document

***

101.CAL

Inline XBRL Taxonomy Extension Calculation Linkbase Document

***

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		Incorporated by Reference
Exhibit Number	Exhibit Description	Form	File No.	Exhibit	Filing Date	Filed/ Furnished Herewith

31.2	Rule 13a-14(a) / 15d-14(a) Certification of Chief Financial Officer					*

32.1	Section 1350 Certification of Chief Executive Officer					**

32.2	Section 1350 Certification of Chief Financial Officer					**

101.INS	Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.					***

101.SCH	Inline XBRL Taxonomy Extension Schema Document					***

101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document					***

101.DEF	Inline XBRL Extension Definition Linkbase Document					***

101.LAB	Inline XBRL Taxonomy Label Linkbase Document					***

101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document					***

104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)					***

* Filed herewith

** Furnished herewith

*** Submitted electronically herewith

6751

Table of Contents

~~SIGNATURE~~SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	Camping World Holdings, Inc.

Date: ~~November 2, 2023~~May 3, 2024	By:	/s/ Karin L. Bell
		Karin L. Bell
		Chief Financial Officer

		(Authorized Officer and Principal Financial Officer)

6852


	One-time		Lease		Other
	Termination		Termination		Associated
	Benefits		Costs⁽¹⁾		Costs⁽²⁾		Total
Balance at June 30, 2019	$	—	$	—	$	—	$	—
Charged to expense		1,239		13,532		31,840		46,611
Paid or otherwise settled		(1,239)		(13,532)		(30,914)		(45,685)
Balance at December 31, 2021		—		—		926		926
Charged to expense		—		2,023		5,548		7,571
Paid or otherwise settled		—		(2,023)		(5,639)		(7,662)
Balance at September 30, 2022		—		—		835		835
Charged to expense		—		4,074		1,478		5,552
Paid or otherwise settled		—		(4,074)		(1,444)		(5,518)
Balance at December 31, 2022		—		—		869		869
Charged to expense		—		—		3,073		3,073
Paid or otherwise settled		—		—		(2,858)		(2,858)
Balance at September 30, 2023	$	—	$	—	$	1,084	$	1,084


	Three Months Ended September 30, 2023								Three Months Ended September 30, 2022
	Good Sam		RV and						Good Sam		RV and
	Services		Outdoor		Intersegment				Services		Outdoor		Intersegment
($ in thousands)	and Plans		Retail		Eliminations		Total		and Plans		Retail		Eliminations		Total
Revenue:
Good Sam services and plans	$	50,022	$	—	$	(133)	$	49,889	$	50,413	$	—	$	(61)	$	50,352
New vehicles		—		680,497		(1,290)		679,207		—		835,596		(1,484)		834,112
Used vehicles		—		591,494		(1,267)		590,227		—		527,078		(1,090)		525,988
Products, service and other		—		235,764		(155)		235,609		—		269,177		(237)		268,940
Finance and insurance, net		—		164,573		(943)		163,630		—		169,825		(4,689)		165,136
Good Sam Club		—		11,051		—		11,051		—		11,154		—		11,154
Total consolidated revenue	$	50,022	$	1,683,379	$	(3,788)	$	1,729,613	$	50,413	$	1,812,830	$	(7,561)	$	1,855,682

	Nine Months Ended September 30, 2023								Nine Months Ended September 30, 2022
	Good Sam		RV and						Good Sam		RV and
	Services		Outdoor		Intersegment				Services		Outdoor		Intersegment
($ in thousands)	and Plans		Retail		Eliminations		Total		and Plans		Retail		Eliminations		Total
Revenue:
Good Sam services and plans	$	148,117	$	—	$	(823)	$	147,294	$	144,914	$	—	$	(410)	$	144,504
New vehicles		—		2,130,930		(4,068)		2,126,862		—		2,751,391		(5,068)		2,746,323
Used vehicles		—		1,661,472		(3,537)		1,657,935		—		1,488,078		(3,100)		1,484,978
Products, service and other		—		691,557		(527)		691,030		—		762,724		(810)		761,914
Finance and insurance, net		—		462,899		(2,563)		460,336		—		528,798		(14,877)		513,921
Good Sam Club		—		33,757		—		33,757		—		35,070		—		35,070
Total consolidated revenue	$	148,117	$	4,980,615	$	(11,518)	$	5,117,214	$	144,914	$	5,566,061	$	(24,265)	$	5,686,710