CWH - Earnings call transcript Q3 2021 | Camping World Holdings, Inc.

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Operator

Good morning, and welcome to Camping World Holding Conference Call to discuss Financial Results for the Third Quarter of Fiscal Year of 2021. 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 are Marcus Lemonis, Chairman and Chief Executive Officer; Brent Moody, President; Karin Bell, Chief Financial Officer; Tamara Ward, Chief Operating Officer; and Matthew Wagner, Executive Vice President. call Mr. the turn will over to I Moody us started. to get

Brent Moody

earnings may afternoon the results good These Thank financial press yesterday section Relations the Private Reform of and XXXX. differ as including the call financial abilities Securities of now COVID-XX comparisons may third XXXX these results the anticipated earnings the are included company's of of Factors Risk measures to regarding customer financial XX-Qs other investors morning, future turn SEC. our undertake on Form found non-GAAP shift; section financial XX-K, statements include in of and and on impact All against adjusted I'll call industry release unless and results to important within quarter of our only to our liquidity remarks the we represent website. our can our and our press performance. results results on update Any otherwise a most materially release these to website. that today and statements those file statements Litigation believe Form covering opportunities; issued our performance. Investor with our forward-looking GAAP our covenants; to XXXX Management's trends; A statements in on plans, may over the we indicated XXXX measures business, and assess quarter a financial everyone. in by important financial may Reconciliations you, noted. today's be result are copy third our the goals, certain share Marcus. discussed was reports will we remarks forward-looking in statements adjusted financial and the XXXX views the of this strategic call operating factors non-GAAP in on our various as to EBITDA contain obligation release on compliance third no as quarter meaning increases and referring of business directly our with Act them. Please that diluted also be company's those and comparable financial made condition; such borrowings; EBITDA, which from and note be Actual per our our

Marcus Lemonis

year operator morning, and not have themselves Today before, and everybody but Good other here frankly here been amazing of in are of may for of only our going dozen an you lifestyle us asked because and forward. high. on here the a throughout it's of Brent. the What us. them excited in an calls, Q&A leaders. them hearing all and not to senior the having question Thanks, you'll the Demand at for be Camping is all-time at plan quite World them mean in we're general. heard have if I from RV the they'll the joining announced, thanks the analyst folks is some introduce room but that And appropriate them

that improvement second, in record previous we'll record a do then an into sections. our on with information we're and calls financial QX million, we'll QX primary of it earnings EBITDA And XX-Q As break $XXX overview a progress. our was our was compared prior on additional available for a look summary down to also to the our XX% operational release; going with first highlights Adjusted a high-level take a XXXX. and two

was that. be XX% increase for QX previous the of more the excited Record September for Our an as We revenue XX $X.X an reached XXXX months adjusted of XX, $XXX million. record. EBITDA trailing all-time the high over about billion of record quarter, couldn't

capital. $XXX We we million In our surpassing approximately repurchased and five our $XX million north months, quarter our of and million. the without of mortgage annual three million material exceed and XX shares billion assuming for three working nicely we've for $XXX the of cash over to improved no of just with market last one about consisting related adverse sheet of Look $XXX $X purchased available million over third changes for revenue nearly balance equivalents Our ended our quarter account billion, nearly over is goal adjusted and next for years, cash real EBITDA in shares $XXX $XX the $XXX lastly, with quarter of offset million conditions. financing. million million estate to the of cash plan the million in $XXX roughly with floor approximately

is plus collision base, currently plan opportunistic XXX performance looking enable to double plan believe we openings. to the dividends our meaningful do existing XXXX XX not nearly brisk and openings, strengthen operate XX% service our and We today, balance our our continue new used to Good through including $X add our Grow year, per return to new our to pace further us stock our we'll we revenue store and what add locations, will We XX repurchases. Sam per store to acquisitions targeting shareholders revenue Significantly to acquisitions, and to sales, make as to continue sheet, of and simple: $X.X pretty increased billion billion. Our from to year. annual

goals into our and head the next performance overall we improve we five will years, ecosystem. we importantly, most our have As that believe expand several short-term

by material manufacturers conditions. the that manufacturers three last have relationships improving these As infrastructure. Thor our further months, over have Forest this seen XX years has the enhance renewed predictive RV for the growth, River to the that goal to and mindset underserved and key I over should market XX-plus I sophisticated as the through our the my consumer our my expect assumes, has XX and five engineering from years industry billion per markets of the identify in drive is The the transparency outdoors. are commitment market in advancements to XXXX, value to and by remember I we the right enjoy all previous enhanced is innovation ability an and and sectors the to They modeling. them $X.X In much This Winnebago. that, what service more purchased the our manufacturers. been XX being discipline is locations growth strongly result has it our reminded, also The share optimism in way believe that with we to it. as expansion can't industry. plan These changed. with a we annual value a feeling should. the One And higher, core been to had tools moves in and expanded suppliers, far programs growth never around feel years. growth XX how an industry of to driven will This grow that last a mentioned, excitement collectively exceeded We ramp marketplace manufacturers they from demographic starting with change and dealers, that internal no that up product I year. campgrounds again

an they value ability supported believe I Their want have they protected. asset to want and customers, investment. their to current monetize their For

of and ramped $XXX increase Good the Valuator to sales XX QX. RV and quarter. Over nearly up XX% the Sam third we for inventory of have in at tool, months, the That end million a the successfully our profitably have last resulted used used grown

in Our basis used process towards and trailing next new. more that, business, capital is It our used is financial deploy number the annually believe revenue technology our XX-month grow and plan billion. growth continued $X human of technological it to $X.X our while that months. complements to billion could our XX in capital We

between party over sales believe and sold units annually we XXX,XXX private dealer For pre-owned context, there are sales.

brand. pre-owned sheet, annual plan achieving process, $X is branded domain are rvs.com network, achieve simplicity optimization, which America, Our to Good Park web selected largest have did and service launch Today, balance financing this consists importantly, digital the Sam X,XXX fully announce to We're as We marketplaces digital ingredients network presence this, for the in used campground and over parks. experienced search robust network, authority. including of multiple and We in branded most fully revenue we our that proud the billion to a procurement marketplace. to goal.

to the adds RV of of assets this available expansion our of the leveraging installed And our our first-time customers database. It the for and plan of overall continue all entices base network, supports community. buyers. acquisition Our company. significantly to our is new This cost improves network it

an of platform times very Sam rental is and enhance the during expand both than That RV that plan years lucrative strategic purchases, vertical. as the financial our our It certain we expanding sourcing current to network important they own. not select is in lifestyle used for opportunity we've RV of platform Good Good of services. Our seen RV We're multiple relationship Park ever manufacturers Sam fleet fleet increased once looks up of in a from this Sam our of This company before. from operate retire a mobile of our see and our well and pre-owned through ton fuel grows way this opportunities additional our to products RV the through from Renting company. with our exploring peer-to-peer Good and benefits pipeline. sale future the to relationships year network, performance our through the And ranging but peer-to-peer to brighter, XX have of initiative, in service this markets process only presence our will over fleet provides feel platform rent-through rental Park key ramping as units the has our We experience. new us. inventory our

million. million Our XXth was XXXX between our $XXX adjusted trailing as of increasing and We're XXXX adjusted EBITDA now estimates, September $XXX EBITDA $XXX year full million. months XX

but, We XXXX outperform optimistic we year very will we will early next XXXX. be are financial providing our that guidance

the our to as a management and focus the well the Q&A. It's is team within for profitability. industry sights. to call RV lead like I'd over to turn operator Our

Operator

first with Instructions] you. from question take James. We'll Joe Altobello Thank Raymond [Operator our

Joe Altobello

Thanks. Hey guys morning. good

there, an guys seeing still of demand, on just question buyers level coming into update summer? stores First elevated an post first-time you the are

Marcus Lemonis

are. We

robust calling In we're and stores outbound approach to whether see but calls, surprised we're I manage leads solid. monitor foot leads demand. be digital that everybody that to the and traffic the get the away, continue fact making just think very, most we halo would we encouraged, go still as in, or that our we're through they're first-time whether thought And buyer we seeing very importantly in whether continues omnichannel

Joe Altobello

that Got in trade-ins? seeing have are And been the to those use terms increase RVs units just much year coming of side, or you Are on back over the versus still older your maybe that over trade-ins to dollars? inventories, of primarily two disproportionate is past purchased the it. And switching it And how amount is a of models? stores?

Marcus Lemonis

three the year, the side, latter seasonality an started the the of see inventory this like see last would peak the of it to it's selling of in we of quarter we stability, time quarter not that as almost have to increase and is in level but some the On weeks good season. continued new our expect retail in part because as

still only done are And are and far rest and a be need this with only be have procuring the we pieces opinion as we community us, of so securing a an dealing industry we're in starting healthy. want not to but industry we servicing labor, the the servicing not new the from dealer of they well side. our to that to to be the as for issues healthy COVID an as spectacular job job get company on parts, and off where the unbelievable some but but normalization, doing Manufacturers very

driven we saw our we On trades tools a talked seen still about initiative, of trades a been through our ago for the secure at where used the we're the by opportunities. pre-owned inventory. as side, we've of while uptick and to on out while year where being a classifieds, we go that's procurement, stores, we parties, buy And buying look an before, is has accelerated new and in we where unit, we've from auctions, use number digital it proprietary source private areas our in buy largest at new that other way all

with about so our used of campgrounds, represents rental those we the members, relationships when to one Sam with And to continue Good grow opportunity talk business, an relationships in relationships each our our inventory. our our

its gotten XXXX, growth adjust the our the constraints, our RV buy high widened And put revenue people servicing more important really buy an to importantly, additional a we potential the the has single is when we XXXX. which makes location, ago unit single with and and side, sets side, in and that that where to used systems I used that company services. in we up RV through because Good of in products those we science wanting through for from market But or part that with they the for this individual side, we realized through and down As it, each be know Sam always money looking expect buy with $X,XXX place it code, to business. the need the some on what nicely but on company seeing each years on different now our been an continue funnel type did our at to seasonality in lifestyle budget new we're as customers, in market, have consistent our service, them be the we a long-term every It's make of the every of an would through we're some really of part pandemic, base, growth dramatically, RV people to potentially sure short and used in this inventory with at every to installed one wanting ultimately cash. industry, in they F&I

drive you why this see towards huge that's So used.

supply I the want through crunch through obvious we're behind growing to noticed through and that, some find balance why we used is think we COVID the that and answer our chain can't were in spot. a we opinion put spot. Subsequently tough retailer customers And that the a in spot. tough dealers tough a our put in it's put are a as manufacturers

So need in and alternatives do provide we're continue years come. that to we them, for going to to to

Joe Altobello

Thank Got it. Marcus you,

Operator

you. Thank

Our comes question next Truist Swartz Mike from with Securities.

Mike Swartz

vehicles everyone. inventory, Maybe the around the we've first come in Hey, give I maybe some maybe some seen new Obviously impact the morning of of us in in through question. inventory quarter you of of the the later the trend improvement lot and that how just October? of maybe numbers a now quarter, we've Marcus know, that. seen a good and sense in Maybe summer retail saw it's concern dearth on

Marcus Lemonis

have Wagner to Matt please. like that I'd answer

Matthew Wagner

Yes.

and with what So we've it code on to been in all single we we'd be clear fair very very working the we back that the we'd turn for of manufacturers understanding end. methodical pricing and about make every of ensure type just segment have pricing every receiving, market certain be

marketplace Well, we more full the in had could decrease what's of how our and also have on knowing the all previous which what's acquisition our to the of analysts dependency the As are inventory seen and process, monitor we satisfied, on up our increase our about websites also procuring marketplace. competitors' a spread. rather inventory, how being understand, a that material we material we in assets trade-in asked going used acquisition on well throttle in the used customers open

balance, specific as make points just satisfying consumers. we're price trying a and that sure all specific that think to Marcus used just segment we So for reference, we're

of would we did in inventory than first less part have yes, the QX come the into with a So liked. QX, little we

as we that terms conservative still be to heading but Thanksgiving the they positioned back However, year. we're heading sure in feel QX, pricing satisfying QX. throughout want trends we as will very We around to the shut part we consumer the the are modify of timeframe every expectations just into the able demand to see continue do of down make quarter, into knowing well to traditionally that be our manufacturers

shutdown around -- few period, there. which have through, that days then holiday, And gone know Christmas as the also to period which a always lose going shutdown manufacturers there's days well. we So the few a production we lose a we're there production

in the evening normal So dictate. trends just to out, are would more also heading next be next seasonal for optimistic where of we while again terms up about planning we're year year as into chain of supply the picking want QX we volume realistic really

Marcus Lemonis

rates -- mentioned been. to The the Matt add is have trade silver that, the just where that silver to lining lining

starting number more not relying bold exist bit doesn't we best as much, it industry, he and more because relying we're because buyers. to we we're as on historical The fact little I we're And those much. gobbled on statement, lifestyle. What back be And up is, rate our transactions seen being indication have about we marketplace of first-time know the new that to news. lot that doing installed tell first-time the as of nice that about we talked know that And the and that coming a their supply have the in to that first-time that's so good think of RV-ers, the grown traded the That's not in uptick it that not anything, the those that for are to installed drop units. and transactions any a base sort a percentage that our would And has it have seeing constrained, see of much. means enjoying also upgrade but by trade buyers. that news was we're us buyers the

owners more going base, having like every to us to and good looking little start Now, first-time the news the installed on both them historically have training on are and upgrade marketplace of to spend manufacturers, four they to orienting see or their to helping the return spend But unit, little years. is, having those with to bit buyers bit we're that like the we're time more along. a X.X a other the time organizations campground

nervous are do we up rise it's be just right they all to where we going us XXXX. We excited levels to to about a away, but manufacturers level we're going about in what complement are that think back the but of in doing sudden so, help can And really don't inventory that, our out.

Mike Swartz

a you. you're understand, to going that mentioned you're coming looking how capital much I forward? maybe follow-up year now about you going how maybe Maybe acquisitions forward. those the think targeting revenue acquisitions think each Thank year? acquisitions even to then, a and XX us from just Marcus, EBITDA additional help commit And XX door maybe we to And

Marcus Lemonis

runway credit see of our at the to look of you don't there amount leverage history, believe lines the close war our sheet need, this on on probably for think other we we we floor our cash and that available when one now I for available. and at that you chest can can We down balance out draw amount is but and When plan the sizable one of that we it cash look our of time our low. leverage and have our is acquisitions, a in purposes biggest

size could We little XX would if brakes the those more sure or the over conditions a you to with the our in we suspenders may can't we up that to commitments economics make right unexpected have that opportunity that, development is you we happening, and an out let the without to where shaking in right the where of like want want room As business year with But into because to need what the to in already eight senior what previous XX deliverable. XX. Historically, everybody some from look and be is actually and the head And now, already, bit our make we team future time, construction number expectation. and that the XX We'd ago. don't we market be we expectation of XX manufacturer like very today, our but past, to house to me we up that, is business in a price, is single have or working to Conversely, at our we strategy at exceed to is could line in years, bigger. said that XX do with look signed we go more goal. markets, an see number order. confident understanding if every in than presents to imagine, than pump achievable. sort with too because foreseeable under be. put market But way around XX right far the raise going XX,XXX have It's also the here us the in if That's just think our four have own their feel we or that than right very for clear, -- we years also punch LOI our We realistic, could be absorb we years to five six bigger. they without lineup, that's accretive set as knowing always room, that. the the to that belt we know they're are do people are the back an more to itself in you

Mike Swartz

you. Thank Okay.

Operator

We'll our you. with Thank take next Bret question Jefferies. Jordan from

Ethan Huntley

my Hi, good morning. taking Bret. for Ethan This for Thanks Huntley on is questions.

about one gross sort were provide XXX Can so. or just you drivers Just side that down was? it points on what of color margins some on the of serious the the basis looks business, of like

Marcus Lemonis

plans Are you about the business? Good and talking services Sam

Ethan Huntley

Yes.

Marcus Lemonis

Yes.

intentionally It million. the marketing we $X historically So we had quarter the deferred. was expense of about that accelerated certain in

that, our Good make a expenses goods retail than some SG&A line. in where the ever it's decision been, we goods. it is of healthier so Like an expenses. And marketing clear be cost is in business, historically, unlike marketing to their want Sam cost business records is where Sam we to of it's Good did item, accelerate And the but the

of marketing So a but it fact creates about actually $X compression, quarter. in we sense false in expense really the when did the a for had margin great we accelerate performance million quarter, of

to that excited about than be particular more business. nothing anything So

Ethan Huntley

multiples, there? at they but the We've well of fluctuated the all That's call given Are it, how had just seeing business on has Good. talk amount we been fairly looking you. have out still doing? how the helpful. on fair M&A a here reasonable And maybe are Thank Okay. of or about sort multiples front. the

Marcus Lemonis

and good made of them strategy to – buy a I think particular there it's say and for for gain that, historically, information with adjusted obviously before It's the financing, strategy marketplace, one want or well. the of heavily industry our numbers, information, Yes. is lower of it doing our pro combination Is some and proprietary world that business or we our or on that we really gain, we the products our floor been between where the And efficiencies industry we we multiples of not a really we're that not F&I at for forma distribution but in one every any does store, own sometimes It's the impute whether public at sorts. clear zero? business. we on would through is four also like number. well, look that's single that acquisitions when are doing assessment. that or make the five? decision including historical at at the some the store? their that that the and model, it That's the sometimes ones looking exit We hasn't changed players camping retail four have its pretty or And operating build surprisingly same a at I and that of our What have plan there upside reason, look multiple also dealer, we the side to part, RV a the should, exception through market exception that market, should earnings, And whatever a to that before and The it buy time who model to retail every the good anything most finding But based are Yes. times. enough. rebates, there. for be in before it average. would buy Are that's

way, after it down impute forward-looking math in and et month If of all you really you we looking fully XX affected to think month is all the but our are to report the at cash what all to true between continue true which our you multiple at what We that a and know rebates and rapid a anywhere allows the on us these it of all, is of truth and think is, times. because our we comes multiple of that look make that for going take a we and should to actually be savings piece that told, XX cetera, at the two acquisition, outlay don't improve that such efficiencies investors multiple the hear materially, pace. one we're

Ethan Huntley

Thank Great. for very taking my questions. much you

Operator

you. Thank

Rick with Our Nelson Stephens. comes from next question

Rick Nelson

we're you any about Hi. comment coming Thanks. can hearing Good I'm you morning. of concerns for all Marcus, at flood if demand a weakening there. curious, used are the products? used market. RVs into of And seeing

Marcus Lemonis

wanting working the the go that a to on capital business basis do and because level not traditionally, time of of themselves year, a Yeah. they I whatever personal their regular on around is out inventory they it do winter. would assume, to families, dealers, and as they used robust, dealers, as need their into exit take when to feed you say, find you're hearing when they as that must money be private private from this

hear it's they for certain so And you to that not generate to abnormal want sell. anything dealers want What cash. to is to sell

the of the marketplace seen with don't into that We the is to that, more you used. then come number made in time. new dramatically increasing sort a exceeds new from and overall other people marketplace The number the We of new units their are all has supply the the wanting the new a the actually things. in increase standpoint the for by have trades, that, have of of used constrained, lifestyle believe RVs number you And that of on are consumer many if people only demand in be because overall manufacturer. for generating and bunch RVs supply, this demand of these it, interest made, being at the we you have appetite how know about constraints materially lifestyle, overall inventory absolutely opposite RVs could

we who those And that's inventory, from. so, of used numbers it. would like to love we the buy we From because perspective, get really of don't their our all phone coming like to folks where know would would of out

Rick Nelson

Thanks for that color.

guiding you're also, to So record in profits here XXXX.

you're mentioned, growth You targeting XXXX. in

in could you and those you GPUs you some you're of puts takes do enjoying the If going? now, that that see the cover see XXXX where and

Marcus Lemonis

and to expect they range. always a five-year range feel a over inventory our GPUs we them are maintain flush and is that feel four, to moments average, we there's where like like time to within don't a very we're used will decade we ebbs There for anything some But in change. on continue choose in Well, have and flows. going tight as that

we volume continue that about areas in don't to in XX just over so demand next months. some front-end be it. to be fact, because that than in knows, other an is that that fluctuation there's know that would know. margin new other We growth. Sure, drop XX Where the happens? margins any the it community as excel in the months in also and transaction expect In result increase excited going But of we robust we in investor we

strong at Our to insurance continue be north of finance and XX%. numbers

strong with nature. service Our business continues products of that things be reconditioning and to and

to so, love love want volume. trade our entire volume ever We don't because And volume for we volume, we business. profitability feeds but

the to is bit And don't our bulk six, about When up, mix more in of material. come why exceeding we single there we that it's line. and remind because truly of why so bottom a calls push and that XX% there'll business. because talk is our puts revenue, Maybe but cases, scale next you little focusing we bottom I just our on earnings maybe Increased acquisitions. day our margin That's this our and get the XXX more put comes down to is That's starting achieving a see top in predictable see used. why in to compression, where internal be see through goes you us eight, used months. space to it really forecasting, every some there'll in we're XXXX up we wake think service business. volume we see on, XX sources you don't from predictability expect slight most the falls us Sam really line in expect but the where expanding but and business. to Good we That's be statement a our our on to falls results, think want our take from about foundational business we want our business, everybody that or growth

come variable XXXX, in this expecting So in one a is at And remember side. revenue as and of our think that about cost margins obviously we do bit. on increases the area, we'll increases all SG&A tighten positive bulk well, the compensation little on our on positive point structure if belt bottom down line. the we're And lines

So when down, compensation. growth goes so does

that up, profit, is to our revenue goal gross really make dollars to good keep everybody keep up, Our continue so can money.

Rick Nelson

for to push Thanks as that. forward. Good luck

Marcus Lemonis

you. Thank

Operator

take next Brinkman from We'll with question you. Ryan Thank our JPMorgan.

Ryan Brinkman

Thanks for question. Hi. taking my

trend XX% sales It in sequential might decline decline. to XXXX over you've I'd and thought there unit that? to sequential new seven what one side. XXXX the vehicle respectively on in XQ sales XX% like largest new and It you the being vehicle sequential XX% ask looks in like a and just with XQ. averaged XX% on supposed relative in the the posted XQ new declines at years, last RV Another looks be driving retail the I

you was number that whether customers with don't receive I in I orders confirm that to as placed think high alluded And demand low greater or other as least manufacturers. how to of waiting thinking even a about which could as So, you've to in the there If know by wanted strong any at inventory from factor? seasonally deceleration provide the should just expected directionally seemingly there previously able remains remained an been you're whether some has you're you that? hasn't past, directionally the that I environment update number it? think How the of if to it's than just function we check just be in the really decline thinking and it you're demand. really about

Matthew Wagner

do has from stock. April sold position good at where job back sale we inventory point of retail our relatively That consistent -- existing this order sourcing a remained XXXX very beginning in

we're It's the one that's entity. of that afforded. So larger just a luxuries multi-dealership

our new trends when customer And what because carefully have those seasonal will looking static terms that able that admit normal material matter of out position start our the sequential extrapolate be that to as that view satisfy against turnover quarter seen trends to you've of at because you're decline rate identified, inventory that I that a what you're turnover there be in again, monitor that think what you'd be seasonality inventory it would the fluctuation should of are I Because the try trying some in manage in seasonal one that each by we're levels to our that and say do inventory measure projections sales I rate could up or I've best for we So of what has and terms quickly of to the incoming to to to the wouldn't future. as as possible. be. first increase sort been we period way where

stated bit dearth to we of a a in be days November-December. there's previously of little that production of As more are available possibility going

very actually being to heading plan we're year. careful next into So

continue see to the though well able It's meet hit we're can we demand. agnostic profitability. inventory to maintaining maintaining. see satisfy used. continue Where with our demand opportunity up to have doing that revenue to source we're that as and demand our to Just pump margins to used simply while we're inventory continue goals we that we these how -- to newer the We

Marcus Lemonis

on do. supply making what what's we decisions of SG&A the on this in QX our tell of the give the and on we a kept we our We We day, robust service. than serve had on account were middle to to or the I them sales of to constraints, perspective decisions about our from are not is We most think we as able team as business cash. were new that that results important to environment to and that as anticipate had an call to is from a moves where that were takeaway be in we deliver QX pleasure corrective anticipating management we wanted because paid are the the tightening At sure a used. anticipatory some we're eye prize delivering do. up had that QX end make we all happen to to the was that a next on which that. at making for more focused and going with said their of should would forecast more set better them investors And return us we that going that capital paid offensive financial the focus return you on for

where And can complaining our that considering went quarter fingers we so we the perspective, fact the supply we the we profitability do there appointing our said, and from and maximize needed think about most constraints. are into Not adjust. we to knew

when their have need need As every we we what know of head and How for the than proprietary that be work an respective for rising do? ago has those same whatever area that up We've contribution What our people we to compared make like to learned over own where we the really How we data anything think things? our have in rates do XX do to never to beat need And we company assessments. both to eliminate? we biggest that respective their in is predictive resolve good we room we XXXX make really to really can We were point XXXX in it dozen the in understand do the maturation from to performance team. room I standpoint tipping decisions and to own their do areas mix? even better What marketplace utilizing feel with into more single single may years me interest today to a or we marketplace, may needs anything better person making time. we our internal optimistic do improvement And public. we're a went change and as how change before the real kind What else improve? we're be.

Ryan Brinkman

production can Thanks. obtain EBITDA and any own outlook Thanks. available manufacturers. you them? semiconductors. like encouraging. yes, sort That's are put a could an sure on the prior they the you campers of slammed definitely you were and deliver the industry a just light be annually related by if supply you may questions can get they exceed the And including units? And do constraints of kind Happier being I update of on that think? whatever I me Obviously inventory seems many out constraint. despite found Great. Maybe not Camper think when in what Any supply I before interesting from retailer vehicle Maybe of you I'm for other on that way you to so Camper. be able issues around discord you also with also helping some is of manufacturers secure there? them that related produce? separate independent is you've know -- And or whether you're smaller to be mean new then from you update whatever. how and of the with a any you of to a number vehicle of it's there all you have a complained alluded how one helping And things you could it about remind update but on Happier traditional Happier foam enter which manufacturing. what's way also Camper manufacturer from provide the their for might to XXX% those any procure to some And start to can couple

Marcus Lemonis

experience acquire really business new we Happier has they things investment that it figured the our And do. process So selling We markets, minority have the to that learning Camper that while inventory. Camper quite Happier really that of consumer we in it today. from sales in was in enjoyed and we has believe that frankly, are optionality shareholder business a selling enjoy in additional of from the and we direct-to-consumer a some out certain not

even and that that pieces create each knowledge the we investment not exploitation Our installed already that as of direct larger XXX% go industry, inside And industry but proprietary If this manufacturing how our we adaptive lend for base new grow one work a an our to as to because there are hope developed base. a that and around their the partners of is business and other our development, we help in and to put that what to parts RVs was business much sell shelves. million together XXX,XXX, find ability that of we off they've technology that have only that ways we into today. potentially are of, of opposed to so can feed benefactor to

I Camper we the get team there, me two it today, it, we one wish, you order to So management performance. I business, that, would I probably their take wanted tell love could the myself. Happier love to for years

supplier a not a our it's only through business, exciting retail in And with probably to And most does. to Forest as our in very margins consumer team to retail Lippert, importantly, profitably space your, first more business time And through opportunities improve anybody our that's internally, we we phone the furniture side side better so that's conditioning company. oversees something enjoy other profitable but complement Patrick's we then air are there. not what healthy that's our what experience. space other a for us I how in can with opportunities but on same but than to whether and on smartly fit to to on things, but only Industries, the as for them on he to does really continued there change with because grow in we own complement find back sourcing play value whether units whether we the to vertical look working robust Ryan relationships that we're demand as other a side production to have at, that people member And that's there's that's our there, the developing adding relationship Patrick, and the everybody. the added partner working part to who company, the how at of our manner, and like that can to oversees value Thor also a And our amazing manufacturers. or to whether River we manufacturers is an go the Biren, things boat or be if with the want understanding niche question, or not rises room business. develop Lippert, that Winnebago, to aftermarket and amazing feel

our would on that the for then And our expect to those sourcing, dominance Ryan so hear to all turns with you and twists come innovation, engineering, product in by continue business we're and Biren's expect to and of making of name, certain parts products. little improvements be those years many to distribution supported and development

Ryan Brinkman

That’s Thank Color. great. you.

Operator

with The Johnson next question Gerrick from BMO comes Capital Markets.

Gerrick Johnson

Good Marcus. morning, Two questions.

about First just on points adjusted Can gross SG&A, increase? as basis year-over-year. XXX of percent that up you talk margins a

Marcus Lemonis

our our service in care results of really we're operators, we the a our those. just -- We've XX our to normally cetera at And general the growing out understand an exceptional our performers paid business, Sam to to of provided make aggressive over about No. grow of delivered. more more, frankly in who all that rental center little That's We to we're the really the XX, investment taking face required our million there's right? different unbelievable last business. some to I parts business onetime costs pandemic. used sure money, delivered to we quite have We who business, way and bonuses et level, bit field months call think have, that Good field specific $X the would also that than managers down obviously team

a to bit marketing little combination of more launch. so in a And

As recognition you members who business is getting rental to and received. those previously quarter, hadn't then just and that the the started know, we our we're compensation enhanced launched team later the in rest they there deserve

Gerrick Johnson

Marcus, quarter? think attend the irritate can is but I I'm first not you irritating The if Okay. don't the doing much replace may what the But shows How to about I as Hershey are did not there decision impact questions direct second by that how show? missed? Congratulations here: you result to And attending not the And embedded job. was next be Cleveland revenue is RV Will you the you how you I'm about your save you you then the going? think a team. and And talk to you part My going my question feel experience, forward? might basically two have do Tampa? of the could

Marcus Lemonis

Erickson even of we've in a had decisions this a I segment But the our who -- lot not. show topic healthy think our partner in continue in particular ones to at who I'm we have make venture. converted. to which our oversees him discussions that dealerships and We're as of company Josh to a going to profitable or some about crime he's business But maybe shows. So had I look and with and decide it's business

Josh Erickson

No, the strategy I anything than Yeah. behind -- think more yeah not to Sure. going else. Hershey was

They're we been that fear have orders five that we couldn't of Hershey right land majority over Our what the those of were would March. going would cash now to course the contract around somewhere have landed scheduled sell coming now. out meaning to not days of have

with We going a a just on So contracts lots we had sold orders, the put home stayed cashing up that record what most we home. and Monday were dealers we of were as September. bunch and we

to Hershey. more we'd went just out if we that think anything point the idea didn't was it So we delivered

Marcus Lemonis

a exposing employees, the comfortable units an our and as for you and with a benefactor experience. transporting COVID our with, into that than people internally stay and sense all cost been. the I us control historically environment the our of to that of we stated, they home of in business if Hershey has goes to stay decided largest had and and considerable that were been and used make more financials, region and of customer marketing own we it we money at driving results materially greater of both what but to customers it to continued the weren't Simply look the more amount our that did think some locations financial distractions our really particular concerns coupled to the fraction manufacturers associated that just the we And with that region. made at looked to spend money, home, transporting to you area,

repetitive can and going about we to forward about shows home to we doing the the really a on penetrate we're made ultimately market going what is stay our can when Then a our you just new miss going based space. on existing to staying than traffic shows. to decisions decisions go we sells market-by-market opportunity repetitive be to are we company a home to of you want existing be are service and drive that what analysis decision, more we some RVs. haven't Our any we do going shows, business, think and because And retail to traffic profitable to or where traffic drive those to our drive repetitive our different opportunities locations, company

And XXX units well. at we Hershey. September volume September we were any financial exceptional had better had than to sold our clarify, And ever so, results for in even when those just as is markets exceptional our

Josh Erickson

with Yeah. that pursuing deposits. all And geo-fenced those the show deals the intention of just then we of are

based product. on units in most are of is won't to which for down those pick our and marketplace vulnerable deals we still in March, actively come those that every dealer chasing up those the deals those Again, now of another right in deals. availability deliver means are sometime one of So

now. that marketplace geo-fenced that the and whole is pursuing game So we're We show XX,XXX-some-odd people our plan. all

Gerrick Johnson

Marcus. Thank you, you. Thank

Marcus Lemonis

Yeah.

Operator

next Baird. question from Craig with Thank Kennison The you. comes

Craig Kennison

morning. Sorry. Thanks for taking Good my question.

there your levels. your record average affordability at Is selling Just about used and consumer? looking which concerned become point at new prices RV for you're a at you

Marcus Lemonis

a chip motor think good combination concerned a our leaning and on I higher-priced I the our drove of mix shortages No, -- about used into bit used because question side we're new home little though. of mean, that's a that. that

-- be as go we're you of competitors on that much about we you're people at it. average months as dealers. XXX our concerned price are, a months as the predominantly some of it we're have seeing average some point so what we do being to from When Craig new in interest presence not not as But think a and know side not we're that XXX honest. the of little of and drove don't well. it financing because as I most terms to about But play than a also higher we you margins, look rates no, they lower yet diesel concerned bit

be price, some that's focused selling importantly, to will We stocking opportunity. continue really importantly, our Because we on average there average our is think always more more price. on but where

and people would Have feel in amount baskets the lot that expensive so, have our we $X,XXX those on we things season were a selling the of the travel by driven as we probably missing that we I in every units first-time ASP we buyer are Inventory $XX,XXX, get own And to because it $XX,XXX, into and at them. including up part exaggerated hyperbolically pay other they that remember would have trailers sold dealer's new a well. do down dropped range. short or what our would may the the sold The is have in spring $XX,XXX, say, on most, QX. glad they how $X,XXX, as be that we're attention maybe our that selling our And we considerable do we're number, but that category $XX,XXX

Craig Kennison

level suppliers to themselves are cost from pressures? -- commodity manufacturers, inflation of for side, of Thanks stocking what increases the pressure And what facing are who tied that. you and from facing on type cost

Marcus Lemonis

furniture the whether anywhere seen haven't well. but, that cases are average And or a XX%. but we year. foam, we know that long hope, as build between is at that pieces see or in don't more manufacturers our that parts on some unit from may the curve really industry normalize depends resistance XX% at is than don't supply that of on it We obviously, that be, it's the sort expensive. a to from in how more and sometimes last even have in there. accumulated the business, know you Obviously time, as seeing will year or when normalize We're last. we the will we anything it look do And whatever demand It any wood, that look own alarming, couch when even and and over type we of taken aluminum, trying ago

Craig Kennison

Great. Thank you.

Operator

We'll Thank our with question you. Jim next take Instructions] Chartier Crespi from [Operator Hardt. Monness

Jim Chartier

Good questions. morning. Thanks for taking my

points. down color First costs. it XXX had Any one I product services basis there? And then, EBITDA the the $XX in over restructuring the margin to decline million and was plus Curious ask where other, those gross think P&L? about reconciliation were of in

Marcus Lemonis

Yes.

knows exit than product of of at as completed that couple we worth years or than XXXX. cost, of made -- in a everybody So cases we certain to cost of cost. liquidated decision either the a less We $XX-some-odd less about business. we QX exit million ago And segments in most

margin. isn't looking strategic focus good our of looks like a was a really anything And we're looking business. particular case, Our at this these to business, eradicate all of In parts of in it other shift. it our that a of parts was finality

business our wasn't the with business cost for of it when were business, sell separate product SG&A, we profitable a our from warranty profitable. looking new business as And A margins, manufacturers. our is so and it us. would single doing look you of ultimately you Good retail the ESP Sam every we small be that couple auto at look at and example always at when we're in this in And service acquisition the just

courses. and job that, And do when that single community we change to we a have to and don't give the them a the give to turn give a take Our us capital them return. maximize and every them dollar return investment is gives

on was the is So side. what that that really retail

Jim Chartier

despite it's F&I mix big then I And first quarters up, five think towards Okay. the in F&I, time rate on lower that used was shift carries which I a think F&I. historically

So just wondering what was behind that?

Marcus Lemonis

in everybody our a is us that what process as business was did focus and proper So and we of making down training extra we F&I training presentation sure the a on reinforced used really on the we quarter slowed unused. sale knows the everybody real on lot for and our used

just have we the very us and process think new of made the and used the assumptions to shouldn't rest most the are really and of as department way on from really service. sell way it we decision, way recondition we decision at to to historically including it to we piece it a that desk look the we used F&I bucket it we and the a the team stand-alone into and some Josh dumped differently. the sales think about made the get that look in at made it I it made we even way at dealers and in sort at Matt every now looking Historically we've looked who and

process I so just think the continued training excellent on on the seeing side execution And and side. you're

Jim Chartier

lastly new just a include sales? Great. in Did September. September? And that then Is that a vehicle mentioned record record also you

Marcus Lemonis

No.

sales They a profit a gross bills record new a standpoint. standpoint, vehicle were were our pay from profit. how a record were from Our standpoint a volume they from record were with we but a volume but not they gross from not record, a

enjoying outperform kind started which very results were and for those expect is October. to -- and again within feel we've trends already why future good $XXX why a be much our we'll financial We XXXX. million we confident in so really in the of number confident that XXXX, results raise And were that we off we for from continue to to lower to of our $XXX from range those guidance a we excited foreseeable million year feel and the able

Jim Chartier

All Thank you. right.

Operator

there the to questions to remarks. are no this time. at turn appears like the back I'd additional for It closing further or any management call

Marcus Lemonis

our our execution. investment of is that happy the team proud we behalf members, and community hope very XXXXX-plus of On

those at outperform which come there we'll as as team, back of we that very that we budgeting continue realistic to As finish areas that where a and look for XXXX. always the think number process we as we our know with -- past. for a team we're said will and believe 'XX to to is number have management areas are in a you up room XXXX, improvement find improvement. of room But excited Internally, we've

again you 'XX reporting forward look our results care. in and and February. to our we forecast Take thank QX So,

Operator

call. today's Thank concludes This your you for participation.

You disconnect. now may

Camping World (CWH) 3 Nov 212021 Q3 Earnings call transcript