Camping World (CWH) 27 Feb 202019 Q4 Earnings call transcript

Company Profile

Participants

Brent Moody	President
Marcus Lemonis	Chairman & Chief Executive Officer
Mel Flanigan	Chief Financial Officer
Rick Nelson	Stephens
Craig Kennison	Baird
Mark Jordan	Jefferies
Brandon Rolle	Northcoast Research
John Lovallo	Bank of America
Gerrick Johnson	BMO Capital Markets
Marc Torrente	Wells Fargo
Sanjay Gulati	ArrowMark Partners

Call transcript

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Operator

Good afternoon and welcome to the Camping World headquarters -- good afternoon and welcome to the Camping World Holdings Conference Call to discuss Financial Results for the Fourth Quarter and Full Year 2019. 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 this call is being recorded and the reproduction of the call in whole or in part is not permitted without written authorization from the company.

Participating in the call today is Marcus Lemonis, Chairman and Chief Executive Officer; Brent Moody, President; and Mel Flanigan, Chief Financial Officer.

the to turn now will call Mr. over I to get started. us Moody

Brent Moody

Securities remarks was XXXX. of A in related business outdoor good call of full and in of our statements expenses, covering results be borrowings, and found growth and and statements goals, increase section release you this Investor the plans, that press the may Shift RV and with copy year compliance future this the diversification These include customer Litigation of retail a within afternoon financial in covenants, XXXX Strategic and regarding Thank on can location Reform quarter abilities, company's our forward-looking everyone. our release Act and website. our industry may and press performance. financial remarks afternoon share, our customer Private openings, base, contain and fourth increases the XXXX financial meaning Relations and acquisitions, the opportunities, market issued dispositions on trends, company's anticipated closures, Management's

those Form may reports file discussed by we Factors represent statements materially with as today in no Risk only SEC. in of from XX-K, including result indicated important and other undertake results Actual a the these statements to those Form our Any forward-looking section XX-Qs, of various them. and differ our as factors the update on our views obligation

to earnings certain share investors be important operating will adjusted to we non-GAAP measures believe adjusted that referring as note our we assess may diluted, call per also EBITDA, performance. on financial Please EBITDA, to and which be today's such

against website. comparable on XXXX measures measures fourth results to of our included otherwise comparisons fourth are our financial unless quarter Reconciliations GAAP XXXX our of earnings made results are release quarter non-GAAP the noted. most the in financial directly and All these

to Marcus. call the I'll now turn over

Marcus Lemonis

in giant would afternoon Good I'm be glad you, we're that understatement. Brent. and say that XXXX thank everyone a To

and beyond a only believe will vision far to performance clear a a plan we that. lead have We but not solid year, that this

know September when we not significant was we we in ability locations RVs. As shift our sell where announced service shift did feasible and/or you not a it where to decided or strategically from away have to business the last

this elected had while to year's We aggressively accomplished last and proud And it's impact results, on behind that it execute I'm us. plan. it an XXXX we

has significant here we liquidated, closed, As all been been both the identified improvement that the has that the we and today, locations have our we and in Strategic overall year in for Shift positioned product us This shift performance finished sit process. have beyond. this

sheet. leading towables to with new vehicle we We high-churn been and million, well-stocked clear equivalents advantage the in inventory grow sourcing core preowned of the our an balance our started XXXX able is pleased RV cash in up $XXX have have high-margin charge. a We're on we which area to and products We're million $XXX competitive in that XX% which retailing. believe both we with

to million predominantly up drastically substantially $XXX operations distribution were Our our and repair non-RV facilities inventory parts retail down million $XXX made was of in nearly and inventory retail consolidated.

customer months demand better. After far; are is encouraged so better, two we've results is almost seen and better, the are with year, we the into our margins employee very and experience

we that $X.X is to billion Our range of still revenue the think cautious, for prudent the it's early mind in in keeping remain in initial and to XXXX, it's outlook billion. year, $X.X

just which number accounted significant number after $XXX to for of the selling, XXXX, of repurposing we locations Now that closing, want revenue million that. of north in a so is normalize

of to be the $XXX expect the $XXX in we -- to is million. EBITDA adjusted million EBITDA range The adjusted

all-time high be way, would New be to by which, our mid-single-digits, and volume new up used RV a the company. unit for

over call a Mel the results to details to back and Q&A. come review going for our now the then to turn financial we'll of I'm

Mel Flanigan

Marcus everyone. good and afternoon Thanks

Camping time it's mentioned, exciting World. Marcus very a As for

devoted much that fourth the the While behind the identifying addressing Shift was activity culminating third with XXXX activities Strategic of the quarters, of and in is majority challenges, to and some now us. related to operational

We number key And team also business opportunities. clear energized today initiatives identified and and our a actioned is forward. our by of direction

on we result, a a towards -- cash flow. profitability on renewed growth path As we're and we're believe a revenue in solid

expectations. essentially time, Services and core year-to-year last for almost go-forward the and up our flat Good for and were Vehicle mentioned these are our revenue Plans up we were well businesses performing was Gross categories As X% year. profit meeting Sam inventories X%.

declined due XX.X%, consolidated liquidation overall the to retail to margin Our gross primarily XXX of basis inventories. points

trend I compared in we points continue last in XXXX importantly, now it saw keep XXXX toward of quarter, lean XXX two during QX to note We're of accelerating conscious and new and that our about sequentially. to fourth points margin. the made work new up coupled recapturing margins first inventories basis QX the decisions used vehicle year demand. to XXX and want was with this vehicle months improve More We seeing vehicle basis

the Obviously, in but it's at we're Adjusted million $XXX average from came seeing too far. the year with early down lost most for large EBITDA store with XXXX, to increased what higher and part $XXX throughout we're so in to SG&A million pleased draw with due in driven store by profits the associated retail outside conclusions, year. of counts coupled the closures costs

Of of the about the parts as and $XXX We million a from ended million that was XXXX in accessories Strategic result inventories XXXX Looking $XXX Overall X.X% with million year ago. vehicle inventories. up cash, reduction product, $X.X in $XXX in a $XX Shift and sheet. about million declined was at balance to billion.

compliance facility X% and believe down covenants plan compliance over we with net floor we ago. financial was future. the relevant had plan million. our a inventory was in just used from down facility year, will year XX, in $XX while floor foreseeable about New million million the under for vehicle remain $XX At the We're two in under for borrowing $XXX December the up

So vision very that our retailer we're our outdoor across Last and external our expansion quarter, focus and for experience the and we greater let button and years capable improve the broad acquisitions customer communication said cash pause on leadership we the alignment that the and with me finish pressing RV around improve world. improve We several largest that, primary team. are that said we performance improve working to financial drive this. to said going the we're to flow is and and position in as next our

made proudly can we've progress. say significant we that Today,

our our world-class team growing business a never and to actions unified industry-leading RV of been contribute to All these developing organization. creating continue energized the has and tremendous more opportunity and across

customers we focused In XXXX, our team has and trends responded members each all early are makes easy. building team taking a that fun other business legacy the We're very the and and and care our are RV-ing of encouraged way on with seeing.

getting and and our our getting are employee metrics RV margins of started. customer we're Our better, improving seen just record are many attendance and shows have

With turn the call over the I'll go Operator, that, to ahead. Q&A. operator for please

Operator

Stephens. We'll Rick Instructions] Nelson take with [Operator you. first question our from Thank

Rick Nelson

Thanks. Hello. afternoon. Good

was you guidance quite improvement Marcus EBITDA for So XXXX. in the provided an

growth? key the various business you drivers about that segments, think be the to we are think do going to As what

Marcus Lemonis

not September be that most or important that significant the would first that improvement. we I those were to the on chunk think service team able locations told is back the eradicating last RVs of we Well, sell and in a the call

that In that, needed but addition the unfortunately to layoffs, modifications infrastructure our last we've some and call we to to consolidating massive believe we it since lead our teams made for right-size infrastructure and did future.

is, importantly of we've return think margins. maybe seen I and a most lastly, nice

While we're we room prudent, then walk it wanted be up Rick it's the cautious. SG&A, over we for here, is to is improvement. candidly, And XX to can and we a and what maybe most that, significantly the early starting based that better basis important market seen with all out, we've XXXX not going believe we've the margins the and how from of beginning is put our to was walk XX count we be on improved it unit in be, of last the just levels that to be the thing months number used stores, to we mid-single combined tighter where February want it if new than on we January those of to XXXX be back to RV elimination just going believe to things way and digits wanted

we're budgeting coming quarters. continues January The up the entire this team we'll revise seen and in that if be in hopeful that, process. management able But participated the February, like in we guidance believe we've trend to

Rick Nelson

for growth. new Thanks Great. The digit mid-single combine used your guidance and that.

you new growth thinking will each those independently, As side? you of new Or used how the bit? are we a at in down little and be thinking look about big are

Marcus Lemonis

at things side of the We so of up. flat we'll our X% to We largely, mind and unused deemphasize, grow XX% we pre-owned home business we ability and because to on hoping of well. candidly back transaction believe, the on Keep we on more motor and a we it last believe heavy up closer new positive side, very to that, realistic be be half the to success we'll up be want in and significantly to both good side. look slightly year, on single-digits on on side or can we be in that, have the did things. I'm that, new the count the diesel used low from continue unit new as

unit the in seen a XX part high bring travel call dollar unit. by in to our big – continuing a it low even Coleman of down have We've business. the is XX better We trailer much and recently Coleman. more reinvest to launched a days new last return that XX

believe which maybe fact, be post-recession. new where sell under done be in been that it's We've just launched to hasn't we're Coleman, big cash unit going for a $XX,XXX percentage. we to able able a In to

of we we're and that are the are hard today. over in frankly So we providing redesign the our market. believe way width way really worked that to to winter want number value of to We've a that finding see customers them a customer-friendly content in that quite the products believe a

secondly after going used the one, two the overall growth continue share consumer; of drive to on to our our then side, do we're definitely with to continue to to relationship things: new So business. go the to improve

Rick Nelson

in I curious the Okay. XX XX your mode in XXXX? Thanks you've but RVs last there they're to added where months. the XXXX as and for know in a Also money probably finally, lost for expectations start-up group that. stores how

Marcus Lemonis

are and fact, the where we couldn't in and more, on few even the locations number layout right. get ended up December, we certain couldn't a right of think we talked plug the this. we pulling identified we – even zoning get When in only with made a September, have And I we those in you We the decision and about locations. left Rick I

are What and really added we about left of new XX the we stores we had the we've a months, that in good acquisitions. with feel last couple

in with – par acquired in to have performed trend well the from that we for XX days into and part, expect that But of a and one retail other go we we mostly be to of retail to rest as deeper we fact, places. be RV a first, couple will on XXXX the little call up the In the Boston but of converted of the year locations with normalized our combination that in stores. most surprisingly it strictly line

by encouraged signs. we're early seen very So what we've

Rick Nelson

Great.

and Sounds good. luck. good Thanks

Marcus Lemonis

Thank sir. you,

Operator

question We'll Kennison with take from Craig our Baird. next

Craig Kennison

get store you – locations fairly bit distributed? RVs you of that standpoint, for post a Thanks then your geographic footprint my end store sell today? the a as for locations? shuffling nationwide little many today? feel the did afternoon. well. evenly exiting Or taking Good a from do a just footprint have up those it And questions How is Why

Marcus Lemonis

So XXX XXX Delta as that a sell locations operate RVs, we services RVs. we of them company, the have

very markets Camping And take are database. World RVs that to and able not care sell we're profitable the of have able service at customer stand-alone but historical to in grow so we some are that those and we the stores

the in both lot half added with said I believe is standpoint, years, about today, think juice experienced our softening of foreseeable have as in to the adding combination five footprint squeeze call over XXXX a we've there because for September, a future out stores XXXX. we pause next the are the we stores From growth that the and of of the the historical and on are on locations as we back in the of orange we we

markets we're we really us levels back that Texas Pennsylvania do continue feel want our markets to margins forward, Those markets like decide we're like to that Ohio When RV We robust, Wisconsin. the cash back and level Minnesota where Colorado, opportunity. Denver, to we those looking move and comfortable is outdoor perform and well registration side and to with come and our to where on and good. we flow markets the get a the at feel EBITDA have where lifestyle

about The ironic see all in an locations, space infinite it XX-year to of XXX amount We white America. I is America. with an North North see in to And space of clear we in amount while infinite plan thing statement. our we of operate want that five white be

to if in principally look States. Sam, Good continue our wouldn't in a expanded the today, next years, We the in we north, primarily file borders marketplace. surprise today pretty for – me we Now Sam over in United as north healthy and space do five Good dominating operate Canada. have continue XX white size the to we It

Craig Kennison

mid-single regarding on growth the Or store base outlook. then digit changes? the digit Does essentially same-store all that year-over-year basis outlook? imply change materially And your sales mid-single did Thanks. after a a

Marcus Lemonis

sorry, – is I new asking I'm store you missed apologize or are that that. Craig a I about on basis? same-store

Craig Kennison

growth just for mid-single the growth? stores of get No that's have embedded number same you I'm need clear that's same-store unit a okay. the better growth. to same-store outlook to roughly in there? rate trying get do to not revenue outlook basis digit sales sales a your Do on understand question. a I'm unit much mid-single-digit to order sorry in year-over-year Or you

Marcus Lemonis

what same same-store we will in base that digits. our we growth No believe mid-single the be we have described the relatively and

locations digit We are of mid-single mind then are a keep in not that that hopeful they're we number and that qualifiers. same-store because in not have formula

get And bigger. so as we get into will XXXX, number that

in to or and quoted around I this be qualify – I category. store but that locations XXX want that XXX XXX same I with believe believe on don't specificity there's

is same that ago. or days same-store growth that XXX so spoke about And that plus minus we year that a we had

We be the did we able dealership Those locations were we at seven sales locations. lease. were in expectations. in looked close want consolidated or our that them either year. But the the and They perform to exit were what there. just so be said, to in? locations just did going that don't not Now XXXX aren't we XXXX, World have we everything calendar to we And Camping do to obviously

Craig Kennison

you. Got it. Thank

Operator

Please question next Jordan our take with Mark We'll from Jefferies. go ahead.

Mark Jordan

questions. my taking for Thanks guys. Hey,

you what trade-ins via percentage thinking Just about been trending units used you your kind have the And supply used of trade-ins? of do lately? unit source

Marcus Lemonis

million different So we've historically consign marketing been our to the or call it plus XX% of RV trade. given sit But that company the about XX being thing much now sell are database platform in a people active owners units. that different that's plus their our is are

consign. not and importantly, cash combination a have science trading, going with so to of data that buy, our emotion balance to we on ability million buying and the of the on sheet, through auctions And most curve our lastly using $XXX and our obviously

gosh, on at units would probably, say, have consignment time. given any I We X,XXX over

and way changing we to reason used our believe grow grow And were used to our our to we're well, revenue able able that be we'll continue we so the acquisition is revenue, -- the process. that

right to for business right put to to being other at to have our right that not years from of our and something is tool used time in of that used available The trade, almost location. them us developed but the and the for transactions, algorithm we trades done value we've trade, see, is understand to the price allows thing we've a to new everybody variety XX transactions, own that to proprietary it an right the things, into

that's formula metric, and an volume an the industry appropriate NADA has the into believe in are that go relied we the transactions NADA because are of auto business Historically, on substantial.

sort In of RV RVs just any the of used business, doesn't auctions volume. the at remarketing exist with

for we've out will are at So a tested expect a we've that we irrelevant. we you time, out year time, have that and books grow are that that in over And dedicated on of tested and a the and spent to as believe in years. theory changer know coming there the that we big store XX dollars path used types differentiator time the It's over to units asset of our can is a we for to game a it last certain developing, that that that's come. learned we've the that have over millions an five team side years this us large

Mark Jordan

recently? Or driving Okay. what RV or about sentiment, there anything couple bit getting you're there upgrade? talk seeing a out an a Is Great. then What's last can what's really little that's about over driving of months Thanks. demand? customers customer a used getting new RV? And interested you either the maybe

Marcus Lemonis

we're Shockingly, as are all operate the administration dealerships. through dealers of those us And consumer our the a rates RVs, Sizes, dealerships shows, that that's with town. look buy a Prius. with to products that they And more led of we think talked to the who a own redesigning families label number shows is and about private in more And frankly coming noticed just number RVs we our a with get unit to at quite about can rate. families along of seeing participate what what and gate younger. be and pulled in people kids and the as continue consumer greater well at have we've redesign our to

installed people. XX-year base at we really us XX-year rapid layer family-friendly, before for top already seen drive and olds, make million on existing to That than the olds, more the was because down of continue important pace we're fix price, ever in olds XX-year a it of have seeing to to floor XX-plus plans come

Sentiment strong. has been

and force and the and we our appointment, process able tailwinds seeing in that our the spent blessed the work really we the where help on we're a higher place continuing we're to damn to improvement showing appointment and that customer have, more in that we're us we're at anticipating be to traffic that appointment to we business think booking ever conversion increase area in appointment seen we feels position, years from leads a and leading own experiencing sales pretty convert the some sale, have the time level. a up, that web We that to that are finally in and We science Sentiment and have rates the come. could to than converting good. of to

Mark Jordan

very Thank Great. you much. right. All

Operator

Our question Rolle with Brandon Research. from next is Northcoast

Brandon Rolle

Good market inventory you're used any in evening. Could with be of taking for seem sales terms are units? you talk used what of -- pricing the vehicle about back? lesser on auction competition seeing now right Are you new dealers in units given at new bouncing to now seeing

Marcus Lemonis

to can't doing, properly feel like stocked other speak but dealers We what are XXXX. we we're for

January in In fact we little were even and a a quite few we believe flatfooted February new light little and inventory missed maybe frankly, on caught our a maybe opportunities.

the we over leads what On that past. maybe tighter really very to XXXX seeing think on we back And used. mean that years and the and drop-off the think that contributed tighter have in used is to side, always seen of a to our solid I that drop level supply and the XXXX of shipments winters of at the in the not higher prices are supply historically speaks very, values -- I bulk

bringing have numbers. we like that people quite ago some falling dealing to have we're we we're finding our send used frankly or that XXXX As away XXXX. and we year the bolstered the values would and walked in trades strong Numbers buyers saw working a They're not that have really they're online science we're segments, we and from. been would with with very auctions they're in

knows as eye So tight. on on we call manage everybody our we're keeping very an the used inventory it

how liquidate painful aging into to is historically, rule age. it to expensive Our the when how because really you been because clean and it marketplace live compared or it's certain have reaches that strong see is It's you back you we is to a units. to strong a it how unit replace and wholesale go and then mandate that

strong there. very it's So

Brandon Rolle

Good Thank to you. hear.

Operator

John We'll Bank from take Lovallo our America. question with next of

John Lovallo

taking I think February full what have Hey the are less from Recognizing guys. of weather was for meaningful year-over-year? months other you months just lower couple January you reported Thank maybe may consumer-oriented first year. to similar and mean, And on questions. do basis? in benefited that up companies my that what new volume volume year-over-year a have warmer typically

Marcus Lemonis

end We're to I of a that the of that pretty in obviously yet, them have we're -- is front -- see quite in signs can January. And trend that not numbers we're March or a at have while. the dying not for February plus you tell frankly we been but

softer, way that in relative a look always in it at plus but that continue true even January when excuse we sign up curve natural and -- is know that is basis in and will that Now trend in on February, that a things go January -- a up. we me better where trend a being we maybe meaningful that in believe just sits

so, X.X we and in we'll example, in and pretty in June, X.X August. And and units sell July March go for February, May, ride we'll January two high to units if

we're the same-store year. the feeling, reporting XX of not days number So positive on now a first basis feeling positive, a in only but right

John Lovallo

vehicles is trade-in. trade-in? I sales I question great. new that wondering RV lighter think I'm guess But sales that of you used the you curious sales XX% new of helpful. your actually if sales Okay, procured should ability would are side? And that I via used then limit your on RV before what accompanied That's you that RV percentage new answered what than was via the I'm were or expect And say vehicle

Marcus Lemonis

and the more XX% type entry-level we XX% travel probably people company most are than of so trade lot we in need. and transactions because a range that's buyers see coming of the may more to new need So with first-time we typically trailer

idea We think that RVs margin used our to of the expect just of get new by-product. we we It invest just subscribing financially. If to is to that to -- look get or inventory, I in lot to never be transaction and great this we of used. the not a new every something give a new trade. we But is sell dollars in inventory want a do lot want away a a positive

make their and of look new, finance and and we nine the on accept sales if a Now do and on called times transactions used do margins cell But the unit. to going that accepting the make than this I'm a that. that holistic a manager transaction, on and said, at we know they of and a only trade-in new take if trade out new I we the relationship make me service are lot I'm have but deal say can the look lower my that. on of two minute have I'm then trade can phone to couple bucks a buy I because they nine from a new, I money I on with at the going customer

new I so And the XXX%. deal liquor versus trade? without deal trade $XXX will take $XXX Absolutely, on a a

John Lovallo

Thanks Great. guys.

Operator

Instructions] take question Markets. our We'll [Operator Capital from BMO Johnson, Gerrick next

Gerrick Johnson

Good afternoon.

Thank to the of dealerships, it's what Gander have of for be want you outdoor you. of what's lifestyle dealerships that many and are and your that's how RV RV your outlook it's with up that existing that cleaned And the is wondering and stores product? where business now XXX former do merchandise? for Just the outlook part those

Marcus Lemonis

really with a locations out seen those. we will really have ahead dealership, we and aren't of legacy right we dealing we're from we have if go and good business really, and the Approximately is signs of performing keep dealership XX the eye rip. locations not that or exit watchful those any what Again

we feel And we only they RVs is, component really Camping way have primarily a look sell between have they a retail RV the we store because store locations But then footprint. delta is field traditional the and good, RVs a Gander operations that World retail these primarily, of secondarily. now the size locations at the service and

our put them revenue highest them, assortment yield shrink us XXXX categories down One, continue shareholders' the that eliminated between number more came assets twofold. reason importantly, XX we the our money, but cash, part the businesses the return. from all And certain of shrink closing to to we selling to are so, over XXXX that locations is our put and in our of the cash and going in or

is maximizing foot there maximizing return. balance and traffic The

assortment we us. products So a but margins in drive we any or This terrible want to sense don't traffic, at allows us that to still plentiful make cost. that want for categories turns have to be doesn't have terrible or any

Gerrick Johnson

Thank you.

Operator

We'll Conder with Wells take from next our question Tim Fargo.

Marc Torrente

afternoon. the Thank Tim. our has seems I out is just, on for terms though, of you actually taking Torrente Good Hey. the questions. Mark promotional as This are It most of for environment industry guess, inventory in seeing as what worked you there? access been through.

So do you this expect promotions to normal year? be more

Marcus Lemonis

eye their dealers we dealers always but other pricing units. on have how the what watchful are are a to speak can't doing, I

whole, whole to be need as We Our dealers to the manufacturers to a only need as promotional, hope industry, be dealerships not to is healthy. healthy. because is make that industry other the money, we a we but less We be need need healthy. the our

than RVers the important million dealing that, that's marketplace. XX more we're that the is reason with And in

place places number to places product have rig We a of number service. the a industry camp finite a to and stay and place to they're staying of my a a finite is get of to And in get fixed.

thing, an not industry It's everybody a World thing. right a service think infrastructure the as in knows Camping to the that's I has whole industry put that place. struggled really And

So for have sure. focused. believe seeing very promotions we that we We're last we May, to really not stay that's at were the level

aggressive we're to to their will our business grow and grow want we to We're going aggressive going want are be business. people money. make marketers, dealers to as have But marketers, to all other but to going be

is and sure there's a There share. return we're making so, a on definite balance. that the And balance margin normalcy to driving

Marc Torrente

added Okay. Thank are the, million $XX And in those in then, this Have your all expected you. adjusted guess, I $XX incurred for And million EBITDA back to those QX? wind-down guidance? year. costs in

Marcus Lemonis

Yes.

cost, that, not first closing end will because we few And bit of have from stores of it lagging auditors, that have done So We that. and the the our permission to we deal distribution to the of with of we believe and quarter. most obviously all margin. a by the if but last some have centers be get

it in been back we'll them of working we've to very and As leases a of to continue relates that well. successful number the as add out

Marc Torrente

Thank Okay. you.

Operator

take next from Gulati Instructions] with [Operator ArrowMark Sanjay We'll our question Partners.

Sanjay Gulati

for to team, thanks should don't the of lot was vacation-focused your for kind issue this just on it's customer that context and affect call. suspect base, touch my could wanting Marcus insights a an on your Any travel taking given the Coronavirus. of Hey, be supply and affecting it I But companies? I how chain.

Marcus Lemonis

the is now around the couple and obviously about right -- most customers question a of two-pronged employees the probably everybody us. is there's communities and and health really This our concerned we're a our to answer that asking There this. important are

side retailers On rely to extent we our the maybe don't in on other that chain business big the supply retail do. China imports

that get relates pretty this of a and plastics shape, Now as be believe certain we point, we're good it amount to At products that certain from certain them, that we in we little have to textiles. here going nothing answer days? May us. there is to to is, delays there The things XX out that. a think but XX be and yes, could few push we alarming

abreast an and American-made the to about side, love be keep this manufacturer And we there happening. on of knows, as is overseas. may RV everybody but us things That's rely product. sourced pieces, the of that the that one business, certain components our manufacturing On parts what's we are partners

supply in size have with replacement our because or of our and consolidated they expect relationships key our and material because been important to chain. and plan we the of five companies, And that, is buy, preferential seven any the essentially four treatment, Above to but note because working break that that eight advance. I not beyond find we ordering of that to we know parts pieces, to what's get manufacturers the process say don't in months but volume out diligently

It's has been pipeline that very so, And built. fluid.

days' We the ground the have appropriate on supply today.

we -- through we'll properly spring believe And day selling off-line. appropriate stocked we the We coming the be have be season. and summer will supply

that that me never before. is people inquiries happened number we maybe heard gotten has from surprised the have have that of of has we What

for agencies RV-ing vacations, virus alternative as or frankly, and we certain for but do spaces. recovery travel what alternative consumers we and certain travel to domicile that international the anticipate prefer industry away, disaster understand that we means and project at an as federal companies, to an think certain business. even an RV our look would certain travel, Looking for discuss for we alternative that to go the may Quite off-site work to domestic companies, or as don't completely

are And that them inquiries we and so have prepared of reason decision. we have those we're business for we the that the the populated by days XX the number good those But to in any all within address prepared been surprised to it's last receive time. XX a of

Sanjay Gulati

you call state already focused how earlier rather. through well-positioned That’s or in want very further in positioned in that other in touch one remaining building is you Could on terms Marcus. reductions as into XXXX. a reduction on know to XXXX I the on of this past inventory helpful. year? were And or Thanks, on going may the touched be inventory you potentially this you question have

Marcus Lemonis

the it our -- reduction looking the we results turns return of a our side or where I a investment. reduction want dollars best think, of further on get we we're in at think margins a improving shift, inventory and to we're constantly and on mix to retail put going whether

On at as If turns commensurate as more opportunity, margins expect inventory level. I are in team long dollars our comfortable to the continue this would find continue allocating Mel the more financial with RV we the that know growth used investment. stay and that the side, I can will the

On new half the year that being conservative travel aggressive our hurt we a side, more our the particularly last in believe in XXXX. entry-level our and the back because fourth quarter fifth ourselves slightly those little maybe we that little probably market a have and terms really in too trailers entry-level stocking our to be looking are profitably trailers of we in fastest products share grow the and entry-level mid-travel wheels will probably

growing but in year XXXX share, you growing margin our out you on what our think in that company focus laser, saw more XXXX this differently I laser number. a saw and see is importantly of you'll EBITDA

have come return market We as get we But on X% contracts get the to are in for on our need industry improve costs, an renegotiating infrastructure, not happen. whole interim, to happen that to to we're that path to reducing healthier does, to and then to return goal X%. to easier we back we and the our there. find capital. waiting we'll a doesn't and way a be to have our for If our investment back. X% improve trying We -- rightsizing the return assuming are But it and that renegotiating are leases

Sanjay Gulati

Thanks, much it. Appreciate Marcus. Understood.

Operator

Ladies at any back the this time like Marcus and to Lemonis additional closing I'd conference remarks. to gentlemen, for turn or

Marcus Lemonis

that part look continues, us believe have projection come. the results raise is consistent we the of you. in and We to if comfortable is XXXX's trend very Thank We're to may to we behind opportunity glad we're attainable. in stable and forward that our latter an XXXX Look, years the delivering year. reliable, expectations the

Operator

gentlemen, and today's your We conference. Ladies appreciate participation. this concludes

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