Camping World (CWH) 27 Feb 182017 Q4 Earnings call transcript

Company Profile

Participants

Marcus Lemonis	Chairman and CEO
Tom Wolfe	CFO, Secretary
Roger Nuttall	President
Brent Moody	Chief Operating and Legal Officer
Rick Nelson	Stephens
Craig Kennison	Robert W. Baird
Tim Conder	Wells Fargo Securities
Seth Sigman	Credit Suisse
Ryan Brinkman	J.P. Morgan
David Tamberrino	Goldman Sachs
James Chartier	Monness, Crespi, Hardt & Co., Inc.

Call transcript

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Operator

Good morning and welcome to the Camping World Holdings Conference Call to discuss Financial Results for the Fourth Quarter and Full Fiscal Year 2017. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. Please be advised that reproduction of this call in whole or in part is not permitted without written authorization from the company.

As a remainder, this call is being recorded.

and from Tom Marcus Brent Wolfe, Operating Legal today Chief Chairman Moody, call of and Officer; President Executive Chief Officer; the management Lemonis, are and Chief Retail. On Nuttall, Roger Financial Officer, I'll now turn over Mr. call the to started. get to Moody go sir. ahead, Please

Brent Moody

turn plans, quarter Investor was and that and Act fourth the the issued customer factors, may as found XXXX. section and copy may statements as afternoon, non-GAAP with also including the today Litigation today's file update of referring our this note to of investors within of measures in be the release the company's It's and the abilities, Form good which our differ materially risk measures undertake I'll related year and of can Web may to diversification performance. as financial in EBITDA statements With SEC. the Reform adjusted meaning included these filed represent fiscal Please you Web those certain may opportunities, those forward-looking discussed forward-looking views Securities anticipated important Marcus. most on pro Reconciliations contain other that such factors comparable result Private we important opening will by in -- to that, margin, only A press on increases our income, results industry in and our be Any customer afternoon full that our XX-K assess measures Thank be covering no borrowings openings, earnings important on to with and trends, them. the to acquisitions calls, XXXX of filed on of and the financial press session EBITDA statements be various these are location in a and our forma financial to this release management's indicated we base, non-GAAP Relations everyone. site. company's to business of net and believe reports financial expenses, the results our site. directly and call GAAP on operating SEC retail growth over These include we remarks and obligation performance. adjusted a our adjusted financial statements goals, to regarding from release our Actual note

Marcus Lemonis

feel performance we’re the underlying Thanks, Brent very We had and of and outdoor the quarter market. both everyone. its fourth in the business pleased air, I with and our and the RV like good coming. is afternoon in the a spring strong trends

to $XX increased to quarter, the XX% million, XX% income forma to net increased $XXX $XX total For million. increased and Adjusted pro revenue EBITDA adjusted XXX% million.

increased to XX% to was full-year, up $XXX adjusted and the revenue EBITDA million. For XX% billion $X.X

to year which market up part that drive and volumes regions. more these been the we RVs decision The share sales past and in business put us good few feel and position of quarter into of business. strong, made trends we drive remains strong carry about for about year, given record for and higher very the the a our the talking early little in remains Demand the really in All were we to this pick inventory the of into XXXX. for believe strong the results the to heading strategic respective a a demand, will momentum we’ve periods, fourth continue

one of fastest-growing such market, before. lower driving the and price segment of the allows millennials but Millennials the ever consumers more segments to to business. the Our of towables RV focus sell remain the market a us audience a group as much and on wider diverse of than

smaller smaller for demand range of strong consumers seeing and the opportunity continue believe give lot active as weekend consumer, the the these town wide their is demographics Today's Consumers kids of today a business are and lower-priced out to and our ultimate we the for about and and converge. mobile tournaments mobile hunting a of RVs activities. and just age customer to vacations, outdoors. utilizing parties and a experience tailgating are friends. lifestyles do similarities feel RVs consumer diversifying lifestyle with the We they’re units. across Family with outdoor that go and lead We very there all between fishing, anything ability significant ranges trips, RV

to up have stores diverse opened few and base Club in to Gander believe and store customer will early trends businesses a credit give running. the our We sports Early talent, Good and lifestyle we’re and Sam time of products customers us come all store outdoor unbelievable a following and services. to leverage active December with these over loyal year, Dan's, first Over us rates promising been WXX, Outdoors, - and cross-selling consumers. Uncle seeing our and outdoor healthy TheHouse.com, we’ve we Sam currently act omni-channel a have Good give access Erehwon, past acquired by products and conversion Gander stores Gander more great a in XX very of Outdoor and card. Overton's,

stores XX mid Our Gander nearly is by June. plan to open Outdoors

stores, being we and open I've in this we very said times, calculated business. we're manage and how As many how disciplined

path Outdoors the operating a out a Club mix number customers. layered in interested to only the profitability. diversified stores and negotiated new Overton's that aggressively are service of we of merchandise, Good rents, savings benefits believe Gander on and Sam have We to for We've department added and a our clear

in And increasing always will and Club Sam has model the our as broad of array congratulate growing members hard and That Sam assured and what cross-sell team our not be of I we to grow of results. we Good continue base that to products to customer and welcome turn stores dedication into continue to year, closing, business work and their base lot for existing the sell but to members financial growth our of and customers carry exciting a In their is file, services new change. and of members. Tom in a expand our and goal last want lot to and very I diversify. my are been Good it to XXXX. our Those just talk over we talk prepared remarks, then online, you to the to members a Club our products to call Our a will team -- be to

Tom Wolfe

you, everyone. good Thank and afternoon, Marcus,

pleased strong As financial results. Marcus a our fourth quarter stated, fiscal we’ve very are year with and and

million. the strong growth XX.X% contributed XX.X% $XX.X key retail services and to and of segment, plans of X.X% on finance vehicles $XXX.X Both was segments me revenue In driven in revenue insurance, same-store some revenue increases Let by and touch parts, other. $XXX new consumer sales the increased and retail the increased XX.X% service and million. with to highlights. up Total and to million

trend which Most standout driven for by and continue insurance of cross-sell view allows business -- notable $XX.X of insurance and quarter, number the margin towable higher to creates and are revenue. continued this vehicle the programs, and younger we increased was services. and greater retail overall We and revenue RV units a as dealerships revenue, in XX.X% that the to of fourth other expansion million increase assistance The to again recurring an in finance products which net finance us total number customer higher and of and healthy primarily a or and our roadside to biggest the increases experienced penetration. believe towards XX.X% a positive buyers as base

was and reduced costs costs for increase strong $XXX.X sports increased a increase variable coming XXX basis the segment from related The other SG&A with million in finance XX.X% SG&A increase incremental majority combined payroll XXX Increased in increase associated million. in was $XX.X The increased other sales of wage clubs the Plans the assistance quarter the to service which notable to for and of across-the-board and in same-store and Services Outdoors was of XX.X% outdoor XX.X% were margin. with of and revenue million with sales operated from increasing were million file Operating Gander $XX.X in An and Plans XX.X% expenses businesses strong new with expenses active to increase of the increase and parts, points sports Retail the and program insurance to points the Gross Consumer the from increased primarily the active to increased driven a million Consumer primary expenses in basis the Retail and in the quarter, and programs margin. and reason associated penetration gross primary selling the and expenses the benefited businesses. the roadside our increasing revenue, reasons and in XX.X% and preopening outdoor $XXX.X gross $XXX.X Services business. the size segment. margins products during by dealerships

$XX higher increased average million an profit, plan rate. in of million a from to EBITDA average XX by As interest $XXX,XXX interest refer $X.X basis average an margin margin increased margin. release adjusted includes new gross increased interest XXX a of included increased point which points the decrease to SG&A in of to from XX.X%, an a Adjusted Floor the $XX.X expense X.X%. point in to net inventory, from in Please offset to XX and expense primarily XX adjusted debt earnings EBITDA borrowing expenses for million preopening increase reconciliation primarily million XX.X% to the outstanding net partially income income basis the of million and percentage from expenses. added $X $XX.X and floor dealerships increased the in to XXXX, transaction which the basis expenses borrowing basis tables increase adjusted EBITDA, plan XX% Other expense rate. the EBITDA points

December $XXX.X XX.X% and businesses $X.X $XXX.X locations increased billion, recently cash Inventory XX XX working opened XXXX added. sheet, from during to balances outdoor the and to sports balance million, active were capital million the the and respectively. primarily Turning and

more quarter better decision the for in the in-stock certain upcoming gain As Marcus share indicated, strong effort levels. inventory season demand, fourth to strategic given did and we in an market to carry make in maintain markets sales a the

at notes would of said, increase million under inventory our back under coming outstanding $X.X like which Looking an over opportunity. the million by plan. we floor and have working for to to to of plan capital payable million incremental fund And plan dealership acquisition under We -- facility. with that floor the Marcus that call openings XXXX outlook. We $XXX I secured with for letters revolving basis, is the the on our store provide had line facility $XX of in on days $XXX.X to facility. borrowings of intend hand turn our senior and weeks inventory in our loans of XX%, term of days number our issued credit credit credit million estimated of inventory increased

Marcus Lemonis

Thanks, Tom.

very year really Outdoor We Camping and that believe excited be XXXX businesses big and RV Sports about for both World transition Holdings. are the the and a Active can

very feel way. for we definitely, it expect mentioned, we into good same about and to also I recreational sense no strong. in growing the of the demand not As to very vehicles record remained continue makes and at plan rate our the momentum that do But XXXX that business business

have company's business in for will $XXX the the for include We for million much do XXXX anticipate These that expenses outlook for Sports billion million Active the to approximately and Outdoor Outdoors range stores. $X.XXX of Outdoors the initial the in and Our adjusted in million range impact revenue XXXX. $XXX in on EBITDA an Gander Gander revenue million. adjusted $XXX in not preopening EBITDA $XX stores and calls estimates

year. back space want half the quarter. outdoor $XX look quarter-by-quarter for million would to $XXX in business expectation over of provide on fourth what -- from for We're a of said, and and million basis, With that to course to to million the year, I it turn first quarters, second little EBITDA $XXX the of selling flavor drag the peak half we go and this $XXX of a give fourth $XX accretive first operator from their forward over the an second million call third and to being looking Gander in to on EBITDA to you of half the but $XXX the from is with quarter. first like to quarterly adjusted million quarter million expect $XX million the the the like be perspective. the we the RV the to for Q&A million the the guidance that in changing would the the Outdoors the $XX stores season the session. start With quarter. of to seasonality the our opening the year Gander stores in Outdoors third would the and year a space not outdoor

Operator

take our Instructions] you. Please [Operator ahead. question Stephens. go from And from Rick Thank we'll first Nelson

Rick Nelson

quarter line of with and you levels? RV on first know I Thank if you. us great inventory Congrats update Marcus, year great could on heavy might a you to you the the your that point? there public inventories, think you you on but cycle were where inventories in company. with we’re could think this concerning with indicated are if in think be you sector you anything comment at -- plan,

Marcus Lemonis

widening were we the ramp driving -- on really in market, of average short trailer know, and when look moments we there grab we fifth of the travel you wheel up entry-level several I made to particularly, Yes, side. and our of inventory half anticipation entry-level stocked, where Roger time And continuing the concerted in the the felt down and that year to mouth at market a first were effort cost share. the in

up so, we not is with. going grab believe that And we were we things share to gamble, stock very made decision but a that to that calculated believe a

were the our our stores stores seeing that hit in that speak the for also today. making some lack XXXX lower-priced while can't or of that very our share units really expectations believe we that I as the we out not can't to those on to well-positioned industry, in speak own we but that backlogs make now, we of right And of company be or to we grabbing of acquisitions any for is know balance We more acquisitions have process setting the we’re the making and that feel to are we're manufacturers, to going in confident success. the we inventory. key

seeing no I from is to slowdown the trend standpoint we can't site. but are speak So industry, a in

Rick Nelson

you rates, Interest is all? some color. side the there hikes. for demand that at Thanks impact Great. the having Do see on

Marcus Lemonis

look, over as prices as rate when there high been a availability gas The our told people We make industry doesn't We've recent that don't. much XX%, and of mean, folks between really always not the difference. -- rates course in most the to of the I interest months. that business finance XXX XXX of important ability interest the have this and time were moving as are credit. history of as moments rates because

with that see demand we in any don't we So our business interest affecting anything rates in at -- that the from we've anticipate near-term rise all a standpoint.

Rick Nelson

curious tax as Okay. see corporate Good to know. that World's Also affecting? tax reform, you Camping as well you How the how that rate I’m consumer? impacting see

Marcus Lemonis

Tom, please? mind would that addressing issue, you

Tom Wolfe

partnership is with the including the XX.XX%, Reform World the partners, of roughly of distribution goes because to to At XXXX down it number Camping Sure. that the rate all dropping Holdings in XX.X% Tax XX%. or level,

XX.X% -- and down Reform. the of to because cash So was we dropping will This CWH 'XX tax Tax rate for additional XX.X% that into have business. C-Corp for that’s the reinvestment blended the

Rick Nelson

Right.

Marcus Lemonis

an getting that we do. to afford the and potentially up slightly into to a savings We somebody from that free reason find we be a it Good average to hope are side income, that why on discretionary translates part and conservative folks. we hope translates We to is payment. credit we into consumer entry-level for we buyers that’s consumers our of our enough know the think ratios consumer begin but approach table? pretty that it could the entry-level money income more And financial new standpoint, still what could to more debt has able good with aggressive bring for with. is that more believe You

as strategy so that's part well. our And of

about excited opportunity. So we’re the

Rick Nelson

Thanks luck. the and and Marcus Tom, good color, for

Marcus Lemonis

Thank you.

Tom Wolfe

you. Thank

Operator

our move [indiscernible] go of on will America. Bank We from question to Please with next ahead.

Unidentified Analyst

afternoon. my Good Hi. call. Thanks for taking

Marcus Lemonis

you. Thank

Unidentified Analyst

assuming pretty I in And what you was aggressive guidance of XXXX builds in you're versus Greenfield talk terms acquisitions? -- -- in was if in you of then wondering the was a if XXXX? your M&A. wondering was I year about could XXXX terms environment

Marcus Lemonis

Great question.

our we very on -- and at went I I've been consistent public we with us to So look when being roadshow. always prior how this

want acquisition the we've given business anywhere cases, head in to Last or our acquisitions. we lever an continue company. acquired or into as for opened than blessed we are some to financial looking to strategic that we're a year make Dealership We opportunistic number. acquisitions found most XX look X sense. we between And very transactions. and growth we important had we geographic do cases, were look 'XX, things that that year that either opportunistic more other that is of and sort In we for ones. In in historically

We will and would we to opportunistic overpay but for about moment like that we will up with be bet. we at that? in and not we and put consistent right XXXX? repeat discussions now today line, again be this, how We never business in signing hopper to top we a clear things run growth. do deals of our and just want several -- for we on And we You but are don't, that's few process will super to we're Do do the look years. have this us But XX will pace with others. the in

And in so, see change don't any pace. we

exceed that do below fall not X lever expect we expectation, we to to that but years XX Some minimum.

Unidentified Analyst

on the Greenfield outlook for just And then XXXX?

Marcus Lemonis

estate an to to Lifestyle Overton number may opportunity along Erehwon are of or we've improvement we an the Based also put Center, We’ve refinancing and developers been with secure to to by approached Yes, the slightly find getting better of on that been those. real in and a us that well have year. store more real bullish about we're feeling do our so this lucky estate commercial an some a looking expect are Outdoor opportunistic store company, growth opportunities finding who able attractive. a want the our basis land we estate overall to prices dealership we to on been Greenfield look market. only should few speak can't to on stores for we've we real and pretty the as keeps commercial But some open the built to and an

Unidentified Analyst

then that expanded to Can you're and about more the about the Sam for on stores. across? then to up sign Good providing Gander last consumers And drive membership, what question and talk you incentives just cost Okay. [ph] incentives spoke doing

Marcus Lemonis

Yes.

is one grow number So grow work and Good what regardless the in goal file file. to our our our you to department of company of Sam

this and And Good our new up to about over Sam heading Tamara Club, so discounts there with transitioned the And with our been asset. is Chief of is our It important approach -- both business. the really degree outdoor -- into Officer. up a is she person Ward, is years. XX an most online elevated omni-channel overseeing offering her Sam, her role name in-store XX our XXX coming company the for to in she was has is Good She we Marketing which members --

Good of think promotional may but an real range, seen significantly that people growth there's value which Camping the stores have told on We the World growth, success $XX. space number inside raising us that historically not the may opportunity, and finding RV conservative, pay true massive being were trips -- XX% a to fishing Obviously, in to in company. that join centric. on inside get is and have ways in in we've of without apparel hunting and in higher price. that has about Gander we is growth didn't of Sam seen see we when that expect think The goal sticky to getting that, actually the exclusively experienced than file. the adamant inside products have the discounts the Club XX% be could see And early apparel the that benefit perceived offer by few they we customer's now XXXX and discount everything higher people were we that's Good So have really a before our we're and Sam to history they and outdoor

marketplace. amount three environment have more at of and consumer of also gotten be we to terms to two multiyear selling aggressive lessen put better mail discounts a and into in offering and into expense that and the the joint, the give We the of our both more value responsible

for So mail XX% growth, better consumers expect multi-year forward, really to seen [ph] going more we’ve and growth digital ethos we better deals the which marketplace, our less in XX% is before. for and value never

Unidentified Analyst

helpful. Thanks, That’s Okay. Marcus. really

Operator

Baird. Now we Please move on from to ahead. Kennison Craig go

Craig Kennison

then guidance respect perspective incremental? A or thank of in acquisitions you. would But, perspective are follow-up. or be do and questions couple included acquisitions that Yes, to with first guidance, housekeeping a

Marcus Lemonis

Tom?

Tom Wolfe

its the Yes, guidance of acquisitions. with included, guidance the -- the

Craig Kennison

XX potential the for additional X perhaps includes acquisitions? to guidance So

Tom Wolfe

with No, acquisitions. as we discussed early about with on, start we our roughly budget five

incremental. in that anything So addition to be would

Marcus Lemonis

those mind, were Craig, And X openings, to XX a openings. keep you’ve month know, a new company around a they’ve they’re and burn in stores acquisitions bit as our been for of to you new And XX to there store them. while, XX --

openings And so, new some definitely of in. XX store have months. those we’ve factored the We in pretty and [indiscernible] is first in, factored some

Craig Kennison

Thank you second would How point. be from cash the flow presuming good from a follow-up windfall that then, tax a allocate you standpoint rates. Yes, lower windfall? have would tax on And you. policy,

Marcus Lemonis

wouldn't it call At point I Tom. -- windfall. a sorry, this

the the things, is, of we had is it expected. we pointed that is our I what percentages to out you that big particularly think, reinvest Tom, But in not continue expectation as XXXX. two that as percentage key regardless into

entirely brands Demandware. more be platform Web so to flexibility -- we in we lot deploying new will mobility new and as entire an business. and into out acquisitions launching are have a our want and We move We more make digital with to

businesses, to for platform. current growing more point other into to we e-commerce anything the modifying of more use do our then so some dealership acquisitions. platforms money acquisitions consumers we to build reach than and at marketing this else there's more obviously way not and then bolster want technology-based and We a We need are digital be to for deploying going the lot business our anticipate that and looking we and

Craig Kennison

the Outdoor which finally, to the Thanks. to on And with relative what then, been about entirely a bonus talked strategy has you respect IPO.

opportunity wrap now around categories more that Just is come, more you’ve trying you've in some is key to about other sports, a board categories. variety that fishing, there headed, of my in where it or deals locked done expansion of those to Are categories? camping, geographic hands

Marcus Lemonis

great That's that. that say you

So, this I I always for excited am. become think tried how draw But people about visual really for and stool. a business how four-legged it I has

and our RV strongest Our our that's leg business is dance our primary focus. what that and brought one us the is to number

We is Gander the business are which sort of Outdoors. adding everything

and is insurance, the The funnel. the the care products. one and roadside opportunity that Overton's all Dan's. that very product of Club We component Overton's and XX,XXX fishing of warranties sole there an & active the and similarities and have for those Erehwon, and see Good all a growth Good sports, the the And this between a because business, Stop Every membership file. consumer degree store everything those of a singular products way And future the And that pool sits shipping to going we stool. Sam entire give is We of RV benefits, a Club. the move legs will to that's discounts if that grow & Sam seat it we in people that seat the profitable, that any like value a have inside in stool I legs. like a share to that is to and receive base. members, try on the what’s inside allows start take still key is XX,XXX the Stop and has be believe Good And and free Gander's market legs purpose, on digitally marine at that consumer whatever taking Shop. lid, company through seat to That and aggressive valuable then appetite on legs how and those four were may them believe have is Sam be and be our an card, of XXX we our can marine be member last to to those stores lot are the that really credit and are benefits, Shop warranty, into dip person is Good couldn't then I common the consumer them the larger they both have like going purpose, to which Sam of exclusive that's the -- out attract or WXX, one we individual and drive we of are to how our that figure grabbing of find three also that. roadside, things Uncle platform. very to insurance, that to and just and current

the me Let question. second answer

acquiring is accretive the add second legs which that stronger. answer that me and Let to those the we've continue business make seen acquiring Camping opportunity campingworld.com, And that at strategy. doing part of the the growth shareholders the Sam lay about World. much what of that a Overton's, so and that we we and just surface. nicely scratching the stools digital our is question, will Anything an Good value to customer, nice will be look for at Digital to or are strategic important our is us taught House, into businesses

And continue that opportunities so look for we're as well. in digital to going to regard

Craig Kennison

congratulations. you a visual. That’s great Thank and

Marcus Lemonis

am excited to the about me. more about I have and business I I years ever And excited don't excited. adding mean, tell customer. you I've of in value been you’ve our this. never the strength how more known the can think been I’ve all

Operator

And to we move ahead. on Tim will go Conder Securities. from Fargo Please Wells

Tim Conder

couple here. team things of and Thank A you. congratulations. And Marcus

whoever First preopening does out does wants or -- Marcus the to take Gander? the of include housekeeping. the that Tom, -- related all expenses quarterly to start this, a guidance with to anticipated

Tom Wolfe

number. out EBITDA Yes, backed number, it that’s that adjusted that’s -- an because of so

Tim Conder

okay. Okay,

reconfirm. Just wanted to

And then Okay. …

Marcus Lemonis

just Can real that that with little it's can to I if quick? address you. I’m just I I want -- okay a sorry. that address to add color

Tim Conder

Sure.

Marcus Lemonis

thing to first process opening right it us the for in get this Gander time. important Outdoors was most The

new Sam than could see it they’re be expected built we be get invest and to deliver for they we opening now and to we open. I hurry XX,XXX though to locations quarter me, shouldn't. was time, picking service on more this to If files the with stuff the up a retail many the a be very But and was one rolling numbers a running signing And that Sam used wrong all XX,XXX line. everybody bit and and if that top so are fourth component. time an a to was that a opposed credit staff with they that the chain will we I product right that expect the fast nontraditional get taking what shot heavy have shouldn't, first getting in there's of that right as the vendors year now, the in way infrastructure this it as that the that that XXX,XXX as that more such doing card And I with big okay North all that’s supply Good as can have that model everybody team to they many picking little open told would we that XXXX could heavy the run did built for we a to believer Good at and up leases and as that they results. like shouldn’t, because do retailers right 'XX going longer out they in added, right it that end are will hiring we little component not a that as capital took and of real even I'm long really our was possibility clear only

when or any Outdoors Overton's that Erehwon or or value the and these, predictable or Dan's always our measure grow So of for cash know Uncle goal you Gander flow. business primary of to annuity please is our build

a opening please so patient schedule. race. This be And with is our not

Tim Conder

Okay.

Marcus Lemonis

Tim. Sorry,

Tim Conder

previously region maybe store-in-store, that for that product expected very everywhere how not recently were there, Good and purchase what you going, Marcus, was country. No, out had Erehwon to the in, the just the Sam signage, that Overton and last and laid sell the in helpful, before week you’re open how we and one product, you're linkage something selecting everything the stores the

Thor store partner being A parts anyway do you looking all partner exactly accessories, store. it evident the JV a recent and World? industry. competition see And bolster for That that internally, then relates a and that in to benefiting a challenge parts Camping or to it you the there? So but very not that as accessories. this being did. as remains Are question appears maybe or How

Marcus Lemonis

recreational more in more recreational anybody sell vehicles in we we service America. than Look, and than vehicles anybody America

as our industry So in long not industry, this think fight. the it coaches problem customers that rectifying we improvement. dog has their We still parts to room ensuring have demand. When an as to have a needed has a go the manufacturer. comes for this or Camping that believe the World that that for repairs way parts we In

So that's first.

only has want what experience Second, RV, our buy the the goal outdoor fishing. at We of space, us is what to right. let outside on inside and from whole to us unit and the biker our the that's get World embellish go customer the which Camping really and enhance and to is

on -- have company. that doing come know of it, is ways between are time it we or do who I to that’s create better form out we we his companies a a Forest with repair Roger up agnostic together the well some to consumer the and going to one are really think doing consumer, to time their moving can the works and an faster leave. what partnerships starting and day customer brings come ultimately time and to to the retailer of as coach in repair in win. the And manner. with done product Roger -- that day I they that in to in time job better River, our Thor is carry shorten has have any And the items And thing a for the that the whether inventory site we

when want about, share. inventory? inventory people talk oh, to so, carrying more guys because And are Yes, we these we’re carrying grab more

Overton's months I from RV you’re be we But investment more lawsuits not our long Gander that more the near because have a the seen less they've ways the to have a company, department customer. we We I good an we in that of and we've on return industry, of money something taken return as and is propelled the still customer And for recent that are to more learned the we customer trailblazer anything spend things think really done that capital carrying in of future. development needs is our development individual. that space. the in on going care go is a If service, inventory that some product product to spend acquisition, it's be singular believe us feel of believe and the an should to that focus and

so great years, expect didn't I I there. RV or with talent more the that love more and We you probably likes I because and innovation out control other more it. we criticizes -- Everybody to and enough blame, we that development -- for segment the marketplaces. of take proprietary And sourcing love coming won't opportunity creation stuff should be -- we’ve our some people. We probably really acquired wasn't the and think and there's doing creative in we

Tim Conder

you. Thank great. Okay,

Operator

Sigman from comes Our Credit Suisse. next Seth question from

Seth Sigman

and Thanks for follow-up on from the A taking of questions the quarter. quarter. question couple the congrats

look like bit. you it at vehicle used when business, So looks the quite improves a it

of use at it the up sense us basis fact, looks several on give like In a in And unit least. what’s store, maybe is you time this per towards new trend the it at up? was start business there? it a Can you the on picking just look quarters Thanks. if for first of going a

Marcus Lemonis

the ourselves back. team very Roger Yes, our I A the key on don't in of business. I and use us know critical want performance the that pat things. are to couple of

so I in probably accumulate marketplace done one. starting what mean creating number more the cycle see trades. more been to got is has trades Number by able that That's better we’ve job love. expectation see the we of ago we bar it Roger our and to we to out, think [indiscernible] it did regard. start was little X.X pretty that was up third, team that always trade and calls that then, And the I new really we've think and bit. aggressive in to low I a are a to improvement would pick The as year start much a X.X two, the we

would but we’re a give for And minus Roger heading I with would improvement, there's probably give on right focus and us plenty direction in I us now. but it the room so, and a B probably real agree, that of yes, think right

Seth Sigman

bit what speak about customer think that new demographic about can and maybe you side? used trends the little the When on the how that's drives of some business, than seen about profile the and you that the demographic if of a different you’ve talked you've new

Marcus Lemonis

-- typically segment. of see or have a No, we variance, believe but to it by really not, typically don't about think that great much a it We question. you

all So it types done, is Travel doesn't it really really is little -- anything. more by for delineate a Its that's that’s new type or so a their is with going and category of tournament Trailers between us a used used. skew than SKUs to younger, by it like have it enough typically new by kids more or by a fisherman, buyer, by a somebody report segment and first-time typically hunter, soccer and

Seth Sigman

QX of from but in QX. bigger to period? know what that. about the specifically EBITDA seems the I of Gander for pretty first to adjusted year, time expected in a Okay. half growth big guidance to Is just wanted just a would that driving be just acceleration to Thank rate one you final know the follow-up. And that then you, the for think ramp seasonally second imply When for for year it's that? quarter you the

Marcus Lemonis

pointed out. Yes, somebody glad that I'm really that

going after be intention. not this, guidance are not our giving that’s We quarterly to

Our this. business look historically has like always

RV Good quarter, very First a second pretty these usually categories, we driven in RV and our outdoor are over bigger with outdoor The into fourth didn't a Good time, hope also market into nobody Sam at we in and are in driven it like our got that the And our singularly And is the we outdoor similar pace quarter we matter usually Good grow. and to, the and business EBITDA would no we're third RVs and in by we the grow space space. cash believe is wanted tapping grow to that the are we how we that Yes, space, part by time, to at company. things flow that the at the but the because company the Sam revenue quarter able materially, wanted is moment And Sam we outdoor other to, enough. our all were much other become of hope this the reason the levels business. we RV be quarter, feel are robust. yes, RVs.

fourth all to Overton's, right. about well, those quarterly quarter numbers takes consistent similar pretty pretty of seen fishing, mid it going -- second XX and and and Overton's low the that you’ve that think have XXs So marine, look I first the the our been across off it's third Particularly, really -- in quarter, as in when to businesses.

Seth Sigman

you. Thank Okay.

Operator

Ryan go ahead. Brinkman with Please Morgan. J.P.

Ryan Brinkman

Mountain are Gander Hi. you us that sense the of that versus of merchandise Thanks stores for Camping maybe the of of how in of some give taking is my traditional the terms offering just a much question. split in legacy Gander Can wares? you the more World now, product

Marcus Lemonis

Yes.

averages to new three Gander in square box. way feet distinct is box square the one the around feet, want that be So, units about and people we box that XXX,XXX used XX,XXX to business a now right think

compete three what a market-by-market the in was And store Gander now remarkably using all company and that our database our literally we've directly historical bait, a things sales. that pieces, used hunting did audience a split mean, fishing of -- data that to done has target pie fishing be think by regard. used is to apparel. I in the That is historically, department's into with team live public. that the this, marine and and massive skewed, So, done could Big on you Overton's that

things sports those all active of are our for younger skateboarding, snowboarding, appropriately boarding, that it's more skiing, The biking, second that pie paddle hiking, kayaking, the merchandised is and that lifestyle really market. customer, customer, understanding active

that inside As we our manufacturer acquired of was a their acquisition, company. House part of TheHouse.com, bike

superstar model. to historical obviously but used inside is to are less bikes, well. was hunting, of superstar the And Framed firearms, And want it called then going [ph] vertical easy which the there, that our active all the our the business to Gander as a driving historical and we’re last, significantly through because be bikes lifestyle we things than marine so be distribution own a business, really Gander be, archery,

Ryan Brinkman

Camping such Very For for the potentially other do boaters parts business, in store retail grow organizations of those more Outdoor outdoor has create sort by the interesting. of membership tradeshows for your or example, sportsmen creating just don't business? consideration maybe those of I or sort organizing there compares my you your of other to concept, any then, vehicles retailing, as other by or used etcetera? markets types that parallel lastly mind which etcetera, been know World And its me, as for

Marcus Lemonis

outdoor we a lifestyle space. we're to have and into it make products -- expanded ones -- well. now looking have that RV is the organization of other we tradeshow profitable as in and very been So We've so acquisitions its historically that today other

there they've us, grassroots things. other marketing to a to process all standpoint, done what local an RV their RV an customer the clubs we’ve are Overton's through and access of at opportunity plus organizations, is because club, membership of terms to because that loyalty Gander an of pivot the tradeshow and some outdoor and a really for it give just sure and trying Good From current really Sam that outdoor they we them do level. has be everything of need not from --our our take In making learned club these standpoint, to

even some extrapolate used I we're about we're kayak business. before thought learning and with that some are local local archery and clubs, really some biking learn into think clubs, all are things we those to that going never RV how We that our clubs,

sponsorships stuff how And acquisition there Both all of social learned, involvement and we've it and level. media, but are grassroots is that's local what happening the a they with the that so community clubs. is are of at part activate

a national We are company. not

the across We to are company a local have happens country. that stores

Ryan Brinkman

Thank you. Very helpful.

Operator

from from [Operator our question take Sachs. will Instructions] David We next Goldman Tamberrino

David Tamberrino

you. of Thank here. couple I Great. questions a had

an this first for quarter. call Marcus, much reported but revenue maybe top growth your to in not couple you from it perspective, next That revenue, minus know growth is? $XXX grow so on core the RV. business, guidance inorganic that’s Good add really call another I that just earlier as $XXX $XX or million in said it in past stores, it you leads that million $XX as had some only conservative from base about understand to $XX you're revenue your X% expecting wanted of year, for average from line years, it in million how comments the and the to year's acquisitions six XX% this guide another So from Sam disaggregate million business, million the

Marcus Lemonis

we know, You better up have a year deliver focus this and now. it. in our put math knew everybody well absolutely we number revenue pick guy, which you it I But we wanted can importantly not from does on profitability. we steer the and hit, away just know darn do been environment that did the way to does a have that with kind in the you segments you can that I’m to but I for us report me you more guys -- of

that to ago to what profitability and what like define goal $XXX -- focus is million. just to a roadshow, line, sources to It to get And is laughed are It over about open was return a hit continue to our short. are top care not as everybody on continue on to you don't at going top get -- think we we are maybe hit going We on anything me to return $XXX,XXX going revenue. hit We to the line. make world-class. felt I to we capital not it goal $XXX,XXX to to year just our we do line, top not on acquisitions to

million. more difficulty] staff. inventory, compromise line how And or know How on million hear, not doesn't the doesn't our that compromise to me but million, our is and beat I top $XXX really $X than to what do $XXX the So may I [technical million. revenue I'm I makes to come, that's if a focused our important do acquisition I million customer makes but probably marketplace in $XX that's an wants $X million that that does $X what make

for give the to with and I very them focus to a on the harness is that -- is that number may get that may That's the answer going Dave that million. ultimately my and that's shareholders to [indiscernible] good but at you to $XXX team work I you that get number everybody So want, team, that's Tom our how that's they -- Marcus everybody not that revenue the not was how how want represent, but you goal the paid. I getting be

David Tamberrino

in your in doing process, I you’re actually thought essentially I guide the comment comments that’s understand is, thinking Marcus. EBITDA appreciate and that the is. And X.X% question what my line next or of goes margins

much all-in after margins you double today. roadshow, the the EBITDA the to How above basis or points from the that Gander targeting process, during During Can there? we diligence digits, stores talked plus to in you further have can go about full-year? get a launched X% lap XXX

Marcus Lemonis

risk the line And me there's unfortunately too must think the customers, staying enough think which to money. find trying team I know returning I'd return number, I X% time money And -- I'm which do guys file, stick at this people margin because also marketplace, like launching as internal this growth. know difficulty] that that time good. going it. [technical -- to call, where that Everybody hold And X% always do a everything careful to but we're to to new really the there's margin to digital pretty very number, this I I'm there we're between focusing absolute drive is capital, you sometimes, value we an thinks shareholder be on being be competitive against number spending to and crazy. with is to will one which to that largest is in and want EBITDA can there's is I means happy which do I this damn my I not I to the compression that because focusing fine brands medium. debate else think to on on and get me I costs the and of is trying and costs world much on management I XX? like do. me

we We will the will have strong. I card are really that we at have have capital butt, execute so to going then kick return really to I it's on to projection, with get at some but credit to and is because that we be the margins and to will. value That's -- being will Overton's and XX. club I'm And Gander have to my mean, file sell well. asked lifestyle we is to that consumers can, that products Dave, we take to execute high question give you a can add their I X%. as to number. The if that? think to

David Tamberrino

was last from your Along year-end incremental for assuming that you growth growth XXXX XX% unique active to the Good single-digit year And year? conversion walk how the in the is XXXX? many rate interesting that customer Good the the size? of mid the WXX, from Gander, low Sam's what’s rest what you're year-end What TheHouse, over with Completely fair. the at customers best to it revenue get can kind new through business, lines you’ve acquired of Sam acquisitions us

Marcus Lemonis

for have file ending Tom, size do So size. file I don't the you have 'XX? that

Tom Wolfe

size Yes, file its actual … the X,XXX,XXX and

Marcus Lemonis

of For the the end year?

Tom Wolfe

speakers]. [multiple and …

Marcus Lemonis

the it. of I be we didn't that at the of the to infrastructure businesses Tom, to because added the nothing or even the actually Oh, that sell number you tell of we that any acquired e-commerce able end end year. to will -- open year have those at any stores

started while and the And fall, came were but we really we in as foods that not we wish so January. Amazon lockbox good whole I tomorrow, had where did just and acquisitions process we in as the those

file Tom, So of percentage growth was the growth -- in 'XX what from the 'XX? in XXXX the

Tom Wolfe

About X% X.X%. --

Marcus Lemonis

Right.

pure the XX, telling be and because on to you that's that I'm going So know, business. base that regard. that plus we're in of you I conservative I’m historical

been Overton's As open, at Gander management these stores and team our has unbelievable.

will more we're plus We the give I’m out starting as I be be you confident these the and that stores able XX will hoping -- roll out. on it next to to going call now I'm more to and [indiscernible] are businesses. that over guidance of maybe we for other on again you next

David Tamberrino

of in? diverted that. to customers kicks used between the of and new? new but there are Okay. There side, what use. RV a little is F&I to want up-sell a supply an about business question, because new think there's used. I maybe dollar do gap have those XX% two the the and on businesses you a appreciate F&I is cycle supply bit I those Last business, understand you used thinking -- be can rate customers are any headwinds you a of are as what attachment to the for increased used new from from traditional hundred and used not, traditional just asked business there's then I increased a of might sensitivities auto auto car about that versus which the and you how you away this couple

Marcus Lemonis

bud? you call, are the Roger, on Hey,

Roger Nuttall

Yes, here, Marcus. I’m David. Thanks,

will have, headwinds on much on the attachment that modification real It's back the don’t X.X last how come perhaps in might new any isn't we're as XX% just You at perceive I or availability, opportunity get point margins at know attachment new that this cannibalization on that, we from F&I the the has renew rates you’re great XX% that the focus But months, used we just about the and to the as increased the increased financing, if it there where alone of X just and around that to on we made do peace on was on wouldn't by of -- have that I bit a in about used. the a maybe new, are new rate really used. we looking is and used supply. on used, well much supply and back how sitting little surprised the bit sitting we over the happen. we that that our be if financing the once units is when little know and sell

David Tamberrino

us would that of as new between I dollar versus to point Is it. kind Got -- there there dollar math figure amount used? a but can try is do amount, a you and variance the to out

Marcus Lemonis

think it's don’t very it? I much, is

Roger Nuttall

side The that look mix way that we have that because really of we [indiscernible] little - XX.X% as that percentage a the [technical -- XX%. we dollar look to on is and at that, probably XX% at we to retail look don’t there the of on a the unit, the on a sale that the we’re That as new. the to difficulty] see around that X.X% X% net probably normally higher We today amount at per factor new used. XX% on percentage

David Tamberrino

folks. questions. taking details, my really I very much Got Thank the you it. appreciate for

Marcus Lemonis

car this manufacturers not that that to and the rates. our think And love the our you public margins business, auto for out have thank pointing is attachment because are I would

you So us separating them. for from thank

Operator

final ahead. our Jim Monness, Hardt. from Please comes question Chartier with And Crespi, go

James Chartier

question. taking be for wanted or to are clarify, XX% Thanks the I Consumer afternoon. [indiscernible] talking you to Good Plans my and XX% company just the do to file? you revenue about Services expect grow

Marcus Lemonis

Sam club Good file. The

James Chartier

Okay.

Marcus Lemonis

year that pay people And club is to a $XX or so a [indiscernible].

James Chartier

club have so you does that cross-sell Okay. Sam Good for how time them more people opportunities Does over increase -- those do … the sell time. you -- over How you do customer as to how revenue

Marcus Lemonis

does. It

James Chartier

… additional file?

Marcus Lemonis

great a Yes, question. that’s

understand only believe we about that we services enhance bring we them and nurture out know lifestyle, and and then proactively and sell we file the people as what and So products we them, into have. more they go them their we

the whether that get on a only them whatever roadside deal between about we trip, may their as their the insurance. So sell better time contribution products services, hiking month be, revenue insurance and they get grow, XX in start member him it's lag boat grow. to see X come better really a warranty, when those is a on rate assistance, file or a time him and we can to There

it does following all a things Sam know, growth every year. member And And the to starts a hope then we of by necessarily we see products and so Good if it's to the to similar in that see XX% this one year, important not compound, the but of services.

correlation, and buy to so the a Some brother warranty growth slightly products. may we insurance three. But a two there wealthy just we they X want take the a -- take best necessarily to into enough they entrance to other isn't their that see they best has have they X, the may the to club that the are behind in the necessarily by members usually direct some or are don't will are and who not so XX X don't buy They but ones access and file. Good consumer ones there one, products performance. -- lag that months something, buy Sam to some or have for The may take the discounts, exclusivity the the

James Chartier

the then attached you how on over dealerships, have to expect Gander it dealership time? new of stores opening And upon or many Okay. a the XX will

Marcus Lemonis

to to close my and Moody's Roger's and to get Brent time, XX. goal over was Yes,

of fell deals off. those Some

anything because some. but think New got negotiating is to leverage, right commit prepared up still of our give some have our now to I don't we're we're goal in. ones and to them added

James Chartier

you. luck. of great. Okay, Thank Best

Marcus Lemonis

you. Thank

Operator

to call no hand for Mr. like Marcus back are to over the closing questions. further there And Lemonis I’d now remarks.

Marcus Lemonis

Great. Thank for you so of much you’ve joined. those

in the we we're This heading from tell can company. are in the space, tone we're not excited of today. company company this a outdoor voice the building You for future -- about for where the how our is

Sam club The the that patient and we growth why file Good be so, do And that is Sam good remember and all with this. of

to soon. Talk Thank you joining. for thanks So you.

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