Earnings call transcript Q2 2023

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Operator

Good morning, and welcome to Camping World Holdings conference call to discuss Financial Results for the Second Quarter of Fiscal Year 2023. 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 that the reproduction of the call in whole or in part is not permitted without a 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; Matthew Wagner, Chief Operating Officer; Lindsey Christen, Chief Adminstrative and Legal Officer; Tom Curran, Chief Accounting Officer; and Brett Andress, Senior Vice President, Investor Relations. call Ms. the turn will over to I Christen us started. to get Please ahead. go

Lindsey Christen

afternoon A good financial covering yesterday the of Investor and company's found you, on can press press results a release that morning, issued Relations XXXX Thank in quarter everyone. release be copy second the was the section and website. company's

our Act inflation, within future business expected these include the Private of including result capital various remarks reports this may call the our meaning industry and may views allocation, goals, today, on and and impact performance. and and forward-looking Actual and results and remarks them. on we contain discussed may Litigation plans the update those conditions, Form as of Reform XX-Q, statements and with of Management's statements represent differ Factor by as the plan, These acquisition important no XX-K, pipeline of payments, regarding to forward statements interest materially looking statements trends, section obligation factors, other the undertake market XXXX. Securities file indicated financial anticipated dividend from customer rates Risk in Form in only Any our a SEC. our those of

made second assess unless which we diluted, XXXX second our also these comparisons operating our website. release results we our non-GAAP such measures performance. on noted. financial are and All believe comparable as to be GAAP statements are financial to Please today's our earnings that otherwise will against share certain included quarter in directly measures may the note to XXXX call, earnings Reconciliations most adjusted of EBITDA, results referring the be quarter non-GAAP to on investors per financial of adjusted important EBITDA,

Marcus. now to the over call I'll turn

Marcus Lemonis

we morning the what manufacturers face with months that good saw joining about us and lines for our the cycle the a for of cycle In in history, alarm we and earnings concerns in XX down production rang the the But We ago the we've coal appear Camping unit It were our and downturn thing was of sales to call. retail is World's RV bell a best industry, on levels for second about focused headwinds. trend XXXX thanks our industry. end. quarter around the Lindsey, and inevitable. mine canary first was new the major been industry for Thanks, be felt hyper throughout me, oncoming beginning in here the first out. the

have the was first when to tell get you tell robust knew to you we will a around are believe XXXX. we the corner. Just seems were seen We based seeing, will growth up the we lines may the we like the stable it outlook to bottom. the believe path to and tough, the about more on we and be that be be trend going for first to headline

with on a of Number ever the improve to turns dealership a of acquisition and in improved consignment improve with methods capital. growth materially improving we standardized will and our business percentage We and see even The used process. used white should technology, continue our space develop acquisition focused XXXX two, four new revised procurement more pace. growth RV as to most used and consignments return continuing through have path growth things: Our we robust seen. than on is active pipeline a

models we to we XXX,XXX anticipate advantage XXXX. accelerate time We intend that We wholesale stock. inventory at And lastly, Third, believe swap. we model shipments going cost stock. XXXXs. than will have least model in the the in a will to be wholesale XXXX in remain be steadfast XXXX models stay the We XXXX of XXX,XXX we exact XXXXs competitive the in want ahead XXXX. last for year, At of into had balance Today, cleansing and less XX,XXX this. to units XX,XXX

we to Good new and development Good financial pace and four, partnerships. through continue determined We next see grow However, growth what digital to $XXX product to million we'll Sam segment extent. have further Number the experience break this Sam year on and not year.

successfully in further we five, core stay next XX last locations. locations, year-to-date through RV increasing focused or to plan essentially we On count the goal we a supercharge way opened, acquisitions. XX intent year of to quarter. and of this business store Earlier that set letters a signed of adding to today, the we over set our the goal an essentially by have basis of of on one-third acquired we In our our dealership disciplined through growing five growth effort knew company, to the year needed XX% game

the think true utilizing while resources. We core outside box staying our also and wanted to to existing strengths our and

a established called engine manufacturer dealership exclusive new Stores. During the quarter, growth we second

further with and Forest Keystone, Airstream, completed Grand Coachmen, These agreements acquisitions and funnel We Design widen Alliance, growth. our offer the even will will JACO, dealerships one bear continue like locations name manufacturer each locations parts, These accelerate single markets. start. finance more These to have for manufactured River, of traditional a new used various the service, and will in to RV offer dealership. lineup and the

Rock, more It Design Bay, more. years. Grand many River, Forest Keystone, exclusive goal next City, five our XX Michigan, the than in Little is Oklahoma stores and to Green of JACO, For Northern example, have

each to this about open locations to be $XX mature. in XX format. million range have will believe We in or We million to from $XX exclusive these acquisitions once pending opened, revenue close

and the up exclusive at from forecast end take the the of opened unprecedented over projection growth our dealership we our revising the and recent the are to now acquisitions of up plan manufacturer influx store manufacturer space white previously us XXX plus original by XX%. Given growth mentioned concept, The pace of acquisition exclusive locations openings store XXXX. would opportunities, up our ground of dealerships

plan going to up and business has normalized million. dealership in year average by a anchored revenue our increase revenue roughly more of on growth a environment. Good set business our five of is store the The goal in a data all average revenue As point, revenue contributing our under used $XX count Sam that growing current just billion. store $XX We

selling have nearly the additional sold used units order just at have and Board we we new set In to a period to available quarter of of the used units dividend compared used is up year. our the time acquisitions. pride, same for board year a XX% XX,XXX last achieve basis, record units, for under made determined year-to-date XX,XXX dealership With ago. a best total Last time the The up night, $X.XXX, X,XXX the highest and Directors sales growth we declared continuing quarter. XX,XXX the On cash of management capital acquisitions. of announced the team up for this the third freeing use sales

corporate Furthermore, dividend Directors points influx. our on we management any quarter the current light in Board for dividend clarity. issue and to current of of a the see ability A Based reason will as as to review acquisition couple the special the of any dividend each structure, the don't reduced further. be well

were RV Lastly, RV down, sales better unit new were for expected, quarter, the than margins new expected. as however,

inventory for X,XXX adding to inventory new even roughly As by Compared XXXX, to down X.X% to of units. after our million today, is close around locations. remaining reduced end we year XXXX $XXX our have

XXX average down per new compared we pandemic XXXX of historical where are units As today, of location, period to XXX around pre XXXX stocking units. significantly to the the was

this the from buy to point should be end total location year will inventory increase for XXXX. and It expected inventory new in preparation that better the the a

from our by continued were consistent in inventory with $X.X as requires model quarter, to XXXX's RV of our new last our with sales recorded earlier, On just be As year. this I year this in the the us new through front we mentioned XXXX's the discipline half inventory down for back financials our billion, year, driven primarily of sales. year the to of of soft we revenue half second XX% as

stable for years $XX.X million gross the our In predictable team business of again quarter Good sold asset million units. sales RV XX,XXX $XX Sam, revenues Our of had most profit. and

roughly cash floor $XXX adjusted up million $XX EBITDA was second on for quarter balance We the $XXX.X and cash broken the plan million offset additional account of cash, by of ended sheet. with $XXX the our an Our million in quarter million. of

and We also have million of used flooring, inventory. inventory, $XXX parts about $XXX of net million of

Lastly, have without real $XXX estate of we also mortgage. million an associated

to so on efforts last focused have store materially and many, times to In we In our growth march paid Camping closing, the market but our five capital in and important areas store must finite, in key increase to XX% we've we grow and count, off years. moment, made invest as is is investments key financial to in the our XX count retention, the hires our profitably human in this with company laser is its business. These for continue next increasing an over increase the our people. months capital. World intelligently necessary asset, continue outperform And our position toward most many and making

over for turn I'll questions-and-answers. Now, the call

Operator

Joe sir. you, Instructions] comes from [Operator question Thank of Our first Altobello Raymond James.

Joe Altobello

a the of side. guess couple new questions I on

$X,XXX Marcus, drove What in about the margin mentioned ASPs and that quarter? that First, GPUs QX. earlier, And you sequentially. down were second from up were improvement margins

Joe Altobello

that is the comes dropping. there's questions that the modify the let's been to that lower of are ASPs to ASP but higher. than that level the Well, to a wider can ASP at not we We down want each $X,XXX, number means believe mix affordable time and ASPs market because ASP consumer. subsequently. we're we the by funnel becoming a of priced by to segment items when ensure more And remind price in lot declining point, it’s some degree continuing only the inbound that why address about I And that control entry every have buyers

Matt to that. relates have Wagner going margin, to it take the As I'm

Matthew Wagner

to XXXX we certain at are disciplined, now the at making especially look model and understand cleanse at you Understanding lays inventory that playing year that When really us focused looking and And XXXXs. we right balance. the trying we units looking have of the XXXX. the before right we're are in those that margin, ourselves opportunity super

too However, we push it to far. want never

sales based, opportunity to have have make want fair an ensure we given that team commission a We them obviously that and to is living. a we

at margin XXXXs with healthy. even the best while the we motorized margin keep time, in cleansing we some as profile were opportunities on on to opportunity same better augmenting and stable And to side, very little relatively a saw that bring sales bit So about an to the to XXXX. the started disciplined in make XXXXs, focusing vulnerability, those we

inventory opportunity overall we in an at same good excess while for of into making perhaps historically portfolio we take of and at of on And pricing those feel of in having at QX to withstood heading margins how of QX least year we get margins. balance about even time context an the certain the test XXXX felt through that XXXX XXXX, model the era, advantage XX% look reduced position discounts units, manufacturers very the units. as of rebalance pre-COVID we We we good out really XXXX year XXXXs and of model the or

Joe Altobello

And secondly, very appreciate That's that. demand. of Matt. in maybe helpful, terms I new RV

little throughout largely more a of the three the any months sound summer, today improvement inflection did And into quarter? bit obviously the did ago. driven? progress than Was you that optimistic How see the quarter? throughout promotion You sort

Marcus Lemonis

to same July. promotional to we on starting started basis. No, through in week happens we've our year-over-year continue we're better barring a industry every just comping week, has And materially And the outside better started units at while don't we're with always is the use for down by of how next basis, seeing total months we're happen that every the a something as we're going week. the a of a QX, store while level And control. promotional oddly week less. many pretty been that trend what started we And get more may and And that the happening the we several anticipate beginning We've to and to been. change sales here over we're as to single work month think we in lines year become we where get see number enough. on

Joe Altobello

it. Got

Thank Okay. you.

Operator

Daniel from Inc. comes question Stephens, next of The Imbro

Daniel Imbro

the the morning, question. a I Good of percent mix. Obviously, taking on everybody. Thanks the as business. side want start for keeps Hi. it of our growing to used Marcus,

are it there. gaining, guys feels share like You

I function $XX does there? think billion change the about this consignment. to I as kind about to of investing investments any and think the -- future of there support step mentioned growth you in capital revenue that business? better envision technology growth? embark rest taking the journey. you can the you that Where to How on And guess, you are trajectory business should we use needed talk relative

Marcus Lemonis

Yes.

to think of what sure consumer buys I used us overall the one profitable a to they And told that we have for make sell challenges agnostic it's people historically use. whether we're want. the transaction, want the while more newer customer's getting we to

In capital, we're growing And they to that in Tom of in the investment, not up, any heard the you which the the but are that don't can investment can where that we the believe in technology. used comments generating on everybody as the of satisfied consignment. tighten investment we where turns inventory me Karen returns is with and material why million The used. around volume hovering continue around we're like some investment is real and are terms see we make $XXX the itself. used are business totally tell, mark that inventory. And in

a So ROI right. a management amount little and we deploying consignments our new on bit cash plan that improve so as working can team, get inventory we're turn a that the of less in to and

business XXXX, but rate, used the business. more but be XXXX wasn't that march business we fairly pressure on at unit. as new to of just also in we know that doesn't business The a It's returns, put a to company we expect mean used our towards priced when we new return that think the our for backwards, bit potentially for go consumers a that could us. little we tend decent it As business expect fad may used lieu to now. foundational pillar go That a we dollars trading in a the attractively

more make a opportunity value our salespeople and better lower to money price. have Our doing for customers it, enjoy the

the the the than it lot dark want game do is other return It's else, company's number probably, why new is anything which intelligently, the periods of for used we at our units get into the on us new the better sell want but standpoint, to we investment sort but From clear. than on gosh, to empty back seeing you're to of today in now and that inventory can next better the set we but all been for our low new little COVID I work get and where us couldn't we us any inventory, probably months It XXXX. of of we business, to a is bit a haven't of in remember. time four cost that that the discipline managing going up believe right for much

Daniel Imbro

encouraging if maybe it's could new follow-up then And helpful. I kind That's on the of hear you of bottom. to more call true side, a

next forward, if we moving think forward is how this or backdrop think they for relationships, sales balance going? how you Is do year? those rational you demand of just strong or on risk are inventory How this [indiscernible] the year. you a there you're mentioned going calling bottom growth still conversations I the positioning about OEM of do -- are overproduction how As that do foresee that for, in to next stay

Marcus Lemonis

Yes.

remembers, rightsize manufacturers where manufacturers spring times, that ensure believe had of And of And the last and to painful to real trend was ones what was the calendar has shutdowns some be the also available that us, while some than I retail overproducing. to we them, the hypercritical units and dealers be the deal had the more the inventory. XXXX, lines we XXXX looks that closer it painful industry that which that were disciplined periods argument the manufacturers for But to and had their it's helped done, oversupply believe time the worked believe extended helped cleanse that ever for like we they continue with more summer them basis. prepare I first unbelievably data I they a XXXXs through all to unfortunately you of were there of we forecasting a that, to could that right year on helped discipline that to of XXXX. the was they It's a caused shipments in As see they XXXX than overall on produce about why costs that the XXXX, right better robust to tell in everybody manufacturers counter think with. what is which as is will to their

Daniel Imbro

Great. I appreciate all the color of and luck. best

Operator

Thank The of you. next KeyBanc question from Zatzkin Noah Capital comes Markets.

Noah Zatzkin

Thanks taking for Hi. my question.

terms P&L back ahead Just of where and of in impact on through one color me the for you're you'd thought just in opportunity the like that's the moving acquisitions be helpful. the It set half, cadence Thanks. XXXX would materialized, be front. any on M&A to so of sounds timing you and the

Marcus Lemonis

Yes.

when acquisitions usually day there but be there to to from and that, So between we is XXX we XXX time anywhere announce we XX XX to and day announce exceptions a may close.

four month gap off. And so that sometimes people throws

But contributes use and closed revenue transaction. looking for the a encourage would go back fourth has forward in as were we we the people opened you case some as in quarter third on If Obviously, results when a little to thus should get when we quarter. revenue foundational going million at see each average positive a far, $XX single look that per or at base XXXX, what into softer, well. acquisition things

XXX And we million use $XX the million revenue. to look at today rooftops, of somewhere same million, improve, to XXXX, by want numbers As getting bumped which is expect up. would that is where allow reason those store are from sales which go revenue to $XX that we I number we the top up that and $XX -- XXX between the of transact we people end line

they're be use arriving you And base. they happen, you give dropping we when So should good in, the off if that projection able to close when out $XX modeled and a when that's acquisitions happening. how our in how forecast your we're million see and revenue you of pretty at really

Noah Zatzkin

helpful. Thank you. Very

Operator

comes The from Northcoast John Research. of Healy next question

John Healy

Thank taking question. you my for

synergy consolidators from Just other wanted self-sufficient when side own of to of standpoint? of Obviously, within of ecosystem. seen be you're but look acquisition talking an the and any it more the things topic. of at become kind with in you areas internal of kind more about other could more stick automotive growing from standpoint, to efficiency us do color this you on internally where give business, revenue being and able the an the We've its operation would kind

love your the could bring this about get that to you backend just maybe So or incremental thoughts scale margin guys? synergies to

Marcus Lemonis

business. this called roll to many, When you no years tell and paper are that, people independents what better as benefit is is what proved we a started strategy many locations thesis there operators have we so benefit a grow of a is of that up we believe very were toilet there in buying ago, clear lot we your than But of when are. we

and existing And locations profitability a and level develop a different able four when or different more in have make really three efficiency stores. really that, we have we than of we're mature from technology a of the those our functions. best of to different we increased X an We different coming level playbook increased level but the that practices to acquisition, and of a see of resources, training

the on fixed traditional parts most do insurance heavily tend better business. side, of are when much tend invested department. the to in we better service do strategy We our tend business do used and our used, finance to the deploy dealer We and much we because side to in operations on much the and not

multiple, have and the mind about any so, in we’re We independent in multiples proven benefit form Simply the so performance. we're based that before history efficiency to disclosed historical pro in these talk things the on that we're that, multiples get we arrive we dealer's to acquisitions operators And that that that the and are our historically don't over then in the going better the are keep all we has the that paying, acquisitions published than an years in go when lay at making we of the multiple best that and is business make stated, that business of areas. of practices. we've believe that we our discussed and us and is do

that benefits floor Sure. of in some terms also added in that's really bonus. is what we that there little Are types true borrow best volume implementation, a get? plan or well, how discounts the we put the The But our we that practice of that's we believe efficiency place.

John Healy

question could this just of love seems one bit quarter. side nuances kind on our and Great. a on get We'd QX? anything you was that in Thank to you. thoughts been model that in of might performance And like then if area that off service the are maybe, And to have little some parts the just the there business there? any add that

Marcus Lemonis

Yes.

very business of So And is, a in considerable specific the for We were the we asking two for it there thank had out that quarter. One sports you are exited revenue nuances. that question. business. active of amount

eliminated dramatic unit in comes so delivering into in until a revenue that market. because The recondition suspend unit second used used used our that and inventory as we're our to into to and it that and that, revenue we business rules had or such put the that that it that isn’t inventory quality is inventory sold. we require unit. thing the shop sold we labor that And a our we us through levels, a either purchase unit a our through parts service until that quarter. used Meaning grow dealerships, recognized. so put is and GAAP is trade, and We our more in we used actually that unit revenue increase suspended this,

because a of we bit are GAAP inappropriately. or we those too rules nuance that profitability revenue that recognizing So not so follow a is

John Healy

Got it.

any change of retail So rates and in of to or sort kind penetration? aspect it's attach more about the then reconditioning

Marcus Lemonis

not the is able is grow setup revenue the of to still reconditioning while was in continuing reserve that and inventory stock. recognize revenue of generated the It's to that we're the from that the

John Healy

Thank guys. sense. Make you, Understood.

Operator

from D.A. Davidson. next Rolle question of comes The Brandon

Brandon Rolle

Good you taking my questions. for Thank morning.

of profit margins. of you a gross stronger a Or Just margins year? was expected. should of is anything quickly for lot be new that those moving on about XQ your back expectations for there people Obviously, continue? the think Does I the Could talk half we aware forward? vehicle than

Marcus Lemonis

that's a Yes, great you. thank And question.

and ahead team, as getting team stock. inventory for the now, what same that accelerate of ready year, we in the curve headline mentioned the modeling don't team XXXX rest I even Today, be Last concretive time, XXXXs management are to for were XXXX. units drop right with And a more, is there an XX,XXX, XXXX. want are call, we in if But, the as and decision that So Matt, having myself XX,XXX at even a rule we XX,XXX made models the have because same doing to earlier

would the accelerate left the I disposition XXXX, going favor more points because in in that the So the compression to be at XXXXs fourth, come XXXX. we're don't the in to XXXXs potentially cost segment point in new we a XXXX also could and in of and the want largely see than that the the we X that's expect than expensive we of believe holding of quarter XXXXs could the because lower third to X.X margin

have XX% work XXXXs. work to we cases, in our XX%, XXXX's that, competition our XX%, and ball behind to through We inventory still XX%, continue that is through though believe with, their some We even in still XXXX's, our to are want dealing down to of X%. eight

a with what balance that this the in point of higher to year, for than predict point XXXX. saw would of XXXX slight to in even something of return I in X.X a quarter a QX be So you could potentially margin a reduction a

even and So slight, that then the could XXXX be a above second dip, slight a return number. dip, quarter's

Brandon Rolle

then, maybe of And trends in quarter on year-over-year trends, about the new the talk you're what retail throughout just July? Great. you seeing and the could cadence

Matthew Wagner

make as throughout just see store continue possible. terms try improvement an I'll We year-over-year. declines in to of to new it QX same as simple

the And see -- from in through now, so very we growth to by QX month start a us declined July then now store each expect new even June same store basis. to opportunity light flat, that down, became we with could exist sales of this slightly would to same passed. July, can see XXXX. So slightly QX, understanding year-over-year felt on had greatly where and same the side better we it I that started into uptick we about where where good this that actually seeing heading would I store the other QX, anticipate could sales But probably slightly year-over-year in be up. see reduction

Marcus Lemonis

store first same combined. and as up slightly not still to XXXX. seeing up being has the down the slightly flat is sales used little that behind, been new And we're exaggerated in used is but six ahead With months a being it and new of as

Brandon Rolle

products. relationship Could guys Okay, that having with coming the over great. Design and about your to with you could years? And just you a or evolve talk store, just lastly, it was Grand encouraging see Thanks. Grand how having Winnebago Design

Marcus Lemonis

in for really very we with relationship in order. Design But should locations number with to have locations. started that we which Industries a them happy very and Coachmen, short we're we have happy in them relationship here years, that of with with done haven't Grand were also But Newmar, Winnebago proudly Alliance. relationship we we've actually our and several today. with So sell business a We accelerate with something is Tiffany, the

in we we And And our footprint sales relationships so more we as the manufacturer look look we across with to grow new needed country, XXXX, exclusive certain stores, as look to knew we as to our manufacturers. our to expand develop grow

And so this is it. a really, in do our way opinion, really to spectacular

Brandon Rolle

Great. Thank you.

Operator

of Markets. BMO Capital Tristan comes from question The next Thomas

Tristan Thomas

Good morning.

how approach are from clean talked end year? XXXXs, be XXXXs into about and a You the to order year lot the going house of around clearing to the next open to you

Marcus Lemonis

house. inventory [Lipper] advance. work open we six our help them some companies to So We with manage to on and like manufacturers their months in to like help ever in planning time the don't eight forecast based moments (ph) inventory

through to out have more As to year. Matt speak Matt, can want of and planned you here bulk sit the specifically, we end in? it a inventory jump of the we today our

Matthew Wagner

part and We points believe towable priced working segments, specific vacated see manufacturers manufacturers given much. within on points trailers we're little And been large some over seeking, make that's not creative specifically price more but in means a travel some certain improvement either where de-contenting very to with we've And under that two we in the the getting side certain our stocked. that used past especially opportunities we it's been of very wheels too with are that are sales. And with we just sessions, more through have hitting trailers inexpensively consumers a fifth hitting bit pricing years. price know and giving diligently that

used initiative or the shed to unused opportunity used has that improve plan vice growth But begun stable what an for used. looking that a of really further for for is a as we've then lot versa, to owner used today. if to XXXX whole or there you're are new crossover. ways new agnostic to and to notion seen to to opposed new from I light largely see a floor we've suggests, They're to And don't or relatively used point. that and I think remain is seeing price on consumers new This customer a just in push that back

So other we'll and particular. exactly determined then other manufacturers to more Class and as working we're in heading continue really right segments scale, next a into want the Winnebago demands. with with it's to the price disciplined market to the work at hitting to motorized And the manufacturers we're work we year, what in that of segment C with manufacturers whatever points, to be satisfy variety ensure right especially

Marcus Lemonis

driven the principle creating so haven't we XXXX. was our price Let is understanding of that an is that that rate in for after used affordable selling whole as providing we our believe charter rising And option a we by them rate value of driving face for that feel into Matt interest the me average get hike environment. business look consumer consumer absolute down that priority And having number after about very you and ASP strongly far. something talked hike driving hike I down at address experience one. the rate rate when

to know should As that this be XXXX, we we've visual very look an can. at ASPs as exists. widest of much inverted climb ladder, clear we the of the as as And us prices before we price expect try the of down you created get want we you funnel push into funnel, And the are to lower, to where market subset you of at bottom that swath buyers. smaller where the a

when come so, to gross to you starting down, percentage. see attention And the pay margin ASP

of margin also reduce drive it the you if is is in down, gross should But go volume If selling up. dollars reduced. will true ASPs the that raw price theory,

on us about margin. margins unit, per And sometimes lower on in encourage the you profit selling GPU to constant, dollars gross the we $X,XXX so, because definition, people on by Look price you at to average the focus the the margin by your GPU talk unit, and would and would drop that people if have stays unit.

down used, making more are understand that that and Good more people so a more drive to cetera. Sam would up to products, F&I, which drives not hopes we that leads that react in parts, And ASP we the it volume, to decision better conscious to ask et

Tristan Thomas

you. Thank helpful. Okay. very That's

Can different exclusive a these more. any what one remind everyone then have dealership stores? manufacturer's some that them, of it? costs Just to put behind into how And is you buying than the economics you maybe of that

Marcus Lemonis

both is times on four two between multiple range anywhere there typically, are a times them. and So there of And exceptions outside side. the of

on it we Sometimes given it's real of have these less and into landlord third REIT average, putting the a four stay the times, on we dealer historically, selling using two times. mortgage party But a for we buying estate or cash option between it having our flipping pay we time. on sometimes either or pay one go us. the When to -- and five in the than term locations it putting long or putting a lease

average those you between generate And that $XX revenue. they store X.X% about that capital goes associated stores pick number are EBITDA go Typically, a a transaction that, on But goodwill. it The X% anywhere that other into around mature, margin million the as of are average. there's on with working result it. once a and up with things revenue on with $X associated each million an

we on good feel really a cash So from it. cash about standpoint,

look average, every want doing about company is return at forward, We it up, confident reflection, If modify or revenue do the $X our capital million at way. that investing with at I that to it we make. note to up the down of X% seriously the give look reflection modification we happen we being of why the important with ever on via if picking is of a we issue on the the capital at and having of decision $XX mandate it and cash, a when that's and slow about mature for that allocation, to in management and a That on board would cash and best really at the our million cash, We shareholders clear kind or the reason and increase us, capital. leads we look dried in front best the shareholders' acquisitions had at capital our time, isn't point acquisitions something think to one look we and or what that which to are look opportunities and think day. this on return very shareholders as me in of take feel it about clearly the to we they make We had it's don’t those capital. X.X% generated. that In $XX think excess to moment When deploying a we we average the that year. the expect the we but dividend. once single cash returns move because EBITDA margin that that million, team this in better that our the excess that growing once it allocation, use this either is We very special dividend

Tristan Thomas

exclusive stores, manufacturer's is million… that $X still the then And

Marcus Lemonis

Yeah.

as to inventory, buy have require tend less footprints, the cost have exclusive four to and manufacturer cost working them a to so stores less the well. lower capital So five typically all of they less smaller are it. acres. They to usually They're

easy those be to the We pretty novo see as also well. de to ability up ground open

what on maybe to minimum, cash traditional the should slightly equal cash be we So see a returns than acquisition. better in at a even

Tristan Thomas

you. Thank Awesome.

Operator

comes The Alice Baird. next question of from Wycklendt

Alice Wycklendt

Yes. Thanks. Good morning, guys.

on and $XX,XXX. about ask going should over and the just to forward? that year-over-year? came wanted the we down coming both that And I F& think drivers how to, are What been Just have side. F&I sequentially then down per unit

Matthew Wagner

of asset. what do in that based on past as to used. over to protect as where not quarters asset also variety And But protection, used the emphasis actual nor norms their financing of is do rate I'd finance that the actual not to particular Good morning, tire Really I it's consumers, finance we stabilization attach Alice. used the cash finance diligently head taking that selling certain And of And to with with where contribute within office. necessarily associated working to and believe upon stabilize we've very by products. make historic assets. a number we buying a to seen success that a need the is just that quarters, wheel traditionally, of internally of really finance lot a able These couple sale and of overall that are still of off. we finance to still roadside the sell attribute and our products couple to a of going over And sales where with value past consumers their we're used we've other regions within selling that's you've even used many deals, products deals add traditionally it. assistance been opportunity that many used seen

whatsoever. changing stable here, we the is So rate environment if don't see anything

the this ensuing year. increasing to vehicle PBR per finance over economy, actual I in However, could broader the rates continue drop even see

So we used. but that that to I'd continue to day, every monitor attribute

Alice Wycklendt

noted Great. What's that retail outlook, That's for, think then to you consumer comments, industry in assumption or think, in about I XXX,XXX. And helpful. that I think maybe your XXX,XXX demand earlier we XXXX, in that should shipments expectation how an context? the underpins of

Marcus Lemonis

get of when And then is in when middle shipments you spiral, than of shipments look Typically, people the much destocking. are down a the market retail. out the than the because higher the higher the into the look retails cycle, gates right

a some shipments we tighter, So Matt? be be there think lot at that and end But and gap of is XXXX between, be restocking will may retails the of part XXXX. beginning here the we the what happen that the think the will what will

Matthew Wagner

And about is that wholesale like industry little XXX,XXX. XXX,XXX-ish, of Alice, about of that retail trailing north As moment, XXX,XXX. were this XX I'm month month XXX,XXX, estimating shipments probably XX trailing a maybe

in There I the So in here it's off I'd and the think the of been industry there's probably or continue re-sale minimum points. there's decline. And roughly of units level retail reconnection for plus in through that QX shake the a the range think wholesale in July, exists so. anticipate still be over to because months. those of And disconnect balance to at that destocking August, XX,XXX will needs next we're a where year, excess out where be could that broader it'll past now a industry of a I projecting right to XX out going still

then actually to decline XXXX start So XXXX, anticipated of end again. and by by XXX,XXX retail the it below will I’d increase

Marcus Lemonis

the band XX, months. tighter much call in than seen we've last, So XX it,

Alice Wycklendt

Great. Thanks context. for that it That’s from me.

Operator

Bret next The Jordan question comes you. Thank of Jefferies. from

Bret Jordan

morning on I talk assume don't consignment economics? Hey, good the to book fee. revenues Could about consignment model impact just guys. the you you used the

So that be to sales? unit you see what would consignment? the average economics what doing And would guess, rooftop I in

Marcus Lemonis

Yes.

and balance use consignment a hold from sell the consumer sells that's we that the that, buy unit we cash our is at around unit and program unit, that, unit our thing consignor different about the time the in misnomer that buying customer the to revenue that on the our new to moment the When is the buy and it. we sheet. prior customer, don't from only So the right

return improving to do a our improving our on get What we from cetera, it, can is million, $XX by we're is, out $XX modification. million, same turns capital. there revenue and cash So margin, allocated et decrease no $XX million and the revenue of our inventory trying

is, doesn't the to in economics -- have it margin simply of inventory, the or we our want any the So profile of change just revenue, we used of our rooftop. stated, only difference less cash any the but

Bret Jordan

think compression question were new of new, a you margin down a Okay, remarks you driving on ASP. units said I also X.X about great. on XXXX point point and your to in earlier then And then on in focusing talked X

Marcus Lemonis

QX performed year. sides that in We're me, QX no, be No, than of bit in compress the even QX XXXX. then would a new a of And this on and we something -- projecting of what at in in this no. better little return excuse year to margin XXXX,

it's cleanse get little as we an of XXXX so to margin a choice more over to see XXXX. dip XXXX, improvement our shelves So even competitive a in to even the make of for going advantage we QX can that

Bret Jordan

the referb then on active -- number? one guess parts Okay. aren't Do I what's get the the being exit question sports used business. And revenues booked right. of growth service. you service and All and customer their the I paid

So what use demand? and we service down comparable would of for the street on sort up

Marcus Lemonis

it We way. don't that out break

Matthew Wagner

that way. it We out don't break

Bret Jordan

Okay. you. Thank right. All

Operator

you. Thank

Zatzkin Noah Capital We Markets. KeyBanc of have a follow-up question from

Noah Zatzkin

thanks follow-up. my for for taking Thanks Hi.

see between on important calculus ASPs. the do certain and ordering points How with you that lower XXXX another Thanks. private beyond? to hitting you into of that curious does Just brand strategy? said something it your going? is now along where mix Where price way, play color Maybe gave is the and

Marcus Lemonis

and and for these of stated all insightful we've And those recognized that and label you need number XX% of scale. label is the percent be know provide mean, much private sales realizing a remaining value of I us that great points growing very hitting not don't maybe price need competitive. to much will and percent too a understand of that private receive almost component a portfolio that consistent, our because in as we relatively allow lessons I brands sales. to that of would the brands. to our this it's That's question do brands years concessions OEM account much so if so price even is that see because scale be doing key also we declining, I've publicly, bolster as overall this new learned private if us I over changes

bigger come So private a that in that we'll I'm brands hitting to also we'll fifth in strategy. to better lots. wheel a travel best segments. it's close good In manufacturers in having compete those good, increase certain a probably On have OEM while investment which extent, need label and believer trailers brands lot pricing of just greater price in plans a type our level you our in to and a of case, lot, investment entry three different from firm better, floor a maybe that point. modeled small strategy

Noah Zatzkin

Thank you.

Operator

Ladies for question-and-answer our now have now remarks. of we Mr. Marcus gentlemen, the session. and closing reached it to Lemonis end I will hand back

Marcus Lemonis

Take and joining so days. XX next our we to quarter you today's reporting on about for in call, Thank the information look care. forward much

Operator

Thank Any that disconnect your for lines. sir. may event. Ladies today’s you, and gentlemen, now Thank attending. concludes you

Camping World (CWH) 2 Aug 232023 Q2 Earnings call transcript