Camping World (CWH) 2 May 242024 Q1 Earnings call transcript

Company Profile

Participants

Lindsey Christen	executive
Marcus Lemonis	executive
Matt Wagner	executive
Thomas Kirn	executive
Joseph Altobello	analyst
James Hardiman	analyst
Scott Stember	analyst
Noah Zatzkin	analyst
Michael Swartz	analyst
Bret Jordan	analyst
Brandon Rollé	analyst
Tristan Thomas-Martin	analyst
Alice Wycklendt	analyst

Call transcript

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Operator

Ladies and gentlemen, good morning, and welcome to the Camping World Holdings' Conference Call to discuss financial results for the first quarter of fiscal year 2024. [Operator Instructions] 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.

Joining on 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 Administrative and Legal Officer; Tom Kim, Chief Accounting Officer; and Brett Andres, Senior Vice President, Investor Relations. I will now turn the call over to Ms. Christen to get us started. ahead. go Please

Lindsey Christen

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

Marcus Lemonis

Good highlights Thanks, will quarter On of comments our Lindsey. XXXX and welcome team operational and future exciting today's financial on while call. quarter morning, both to first the the the cover the call, providing ahead.

used its quarter, unparalleled execute up the the new entered we we margins. market targets new gaining share eliminate units, and recalibration As sales of new specific locations nonperforming on The demand share inventory the on, improves our on momentum year-over-year driven growth quarter very pricing, our levels by and to while date, essentially XX improving open and thesis during assets. around the double-digit affordability. second the same-store of both to quarter had and market lower-priced reduction first interdependency

feel about of to intersection demand our the towards and efforts continue We affordability. driving strongly strong

up slightly of We below financial flexibility their retreat ultimately interest build monthly and company be once units to our average selling at could or Consumers price expect the around rates $XX,XXX payments. XXXX. new in see models in monthly

identified growth, business. income the assets. continue quarter, which profit in penetration, both our XXXX to ultimately This eliminate locked the working or lending up and These thoughtful we we change have to with sold intelligent business. case total moves finance sell price, signed have around will improvement only earnings provide a our strategy unit. and our strategic product impact working So selling to in believe sales we aftermarket in parts led mix partners we be but a our parts and In successful and and going underperforming and environment successful location to definitive Through agreement addition continue margin to has provide will supplier that forward. capital, financial rate entrance in and in furniture sale in to unleashing and average evolved manufacturing higher need holistic results X the quarter, to achieve gross noncore into The positively aftermarket into another partnership dealership retail solutions are to agreement per X financing. delivering RV material a in a not enhances new

make SG&A to the addition earnings have in X growth tough the In to around last goals months. required above, our us cuts

Our the that gross low believe XX% as target that and the level returns normal have to be in us a return levels. percentage to of SG&A sequentially allow once on that made cuts we rooted We gross range. has always to will profit

more unpack that to As and on on we outside acceptable sequentially and driven as our inventory by to improve February of by was but were compression return a only our quarter standards, expect our results and March started January temporary improve we RV to seasonally plan. caused rigorous in range, then normalize. margins the it exclusively SG&A, QX margins management the

around our in our base and our Sam Good by and solid largely that of and parts continued and stability predictability unmatched RV-ers anyone the categories As else. business. unparalleled is performance built reminder, is a provide service business installed Those evidenced by

Sachs company. the the that to in opportunity we with with of coming was year the in management the of off and As record parties XXXX. improve value team the it. looking to number the working by relates who explore interested a been associated of one process, which pleased see as strength responsibility ways Through the have always been and business, our and our brand We've would Goldman it to unlock Sam Good alternatives expect, value at has

continue categories, explore not space, not widen power ability Good this flexibility enhanced to to larger we and we believe to from the only would business allowing team grow the our into and would us discuss that Our internally, but while to expand continued audience our earnings yield boating allow to recreational team has our just RVs this by alternatives. Sam prospect the sports

further; continue existing locations; dealership our as same XXXX. As discuss share the approach market-making of year, to find sales return expectations operations. drive continue expanding like improvement SG&A to continue which ways towards our the simple: the on I'd we balance to to by over acquisitions RV our discuss market through material to we internal see of opportunistic locations Matt XXX expansion; focus is our to in maintaining on and ability call our new Wagner while will and goal profit the the turn to Matt XXX use, our

Matt Wagner

Thank you, Marcus.

through and start sales mentioned, As meaningful to growth the units momentum same-store with April. are continuing we unit new new year, increasing experiencing XX%

X,XXX we XXXXs. elastic of current quarter, are inventory XX,XXX the outpace less attribute than unit outpacing model in We material sold with new of disciplined stat with are industry RVs our market and the based performance trends our broader sitting intentional year highly January units to industry. model supporting new good. continuing most are thesis previously information. significantly We increase over that XX%. an lower-priced Today, in February both the resulting gains significantly first inventory share year nearly and management, survey to this reported XXXX new almost on stated recently XX% in the Our and our

anticipate hover months XX% of less this having first $XX,XXX we year, regimented around the to through year. X maintained a new procuring used we range. Against used the prices backdrop, purchased that this the throughout approach move we average As selling will inventory

this used lacks immediate XX% interest to create today, to did market. compared As responded witnessed the largely market efficient We participation manufacturers used we CW banks we in we year. have this We consumers, alike. to sit inventory infrastructure and We here launched fewer an need and auctions institutional in December. wholesalers, because last from RV the needed and

last views soft hundreds unit launch auctions, amassed period. during the we sales Over X.X the course million of the unique of X and over

coming at this see a the business serving of profitable, that flexibility in cost-effective allowing while scale, the use this greater procurement this never quarters, channel As for as matures improving industry our sales. over velocity has existed remarketing we

is system. expect appropriately valued time into We brought improve over back as to continue volumes used intelligently our inventory to the

by normalize to sequentially fourth historical levels quarter We quarter. expect margins the second starting improve our and to used the to

part by in to locations the plan Tom results. focusing locations, of exclusive used RV RVs of market made We first on while to the opened dealership quarter, acquisitive remain XXXX, of Sam of now new accretive progress service, stores Good we turn call end We which growing net to continue to XXXX. of upon with continue the goal XX discuss the were manufactured we'll count on financial tremendous our growth for to and to As business, XXX over Kirn acquisitions dealer X to all we to the plan our store I'll with continue add our expanding our network. share growth that focus have our and

Thomas Kirn

Matt. Thanks,

primarily revenue last quarter, million volume, driven increase first quarters. first $X.X X% of marked roughly the in $XXX For year-over-year we a of by used recorded billion, new X while of from the unit decline vehicle revenue year,

Good profit Plans continued other sports Services revenues, and due our declined core services being sales due continued Within post fewer from product $XX.X to restructuring growth, to year to while sold. lower retail record revenues Sam last gross and active service quarterly attachment of Our segment and our primarily vehicles products, lapping million. used showed our

rebalancing million pressure. age the $X.X to gross primary for About of was used mentioned. Our profit stemming of decline adjusted the EBITDA the used of was million from inventory, year-over-year related Matt with which drivers quarter $XX to first million, vehicle as $XX

the also a that impact costs $X to as highlighting, We couple and new incurred million professional auction store start-up as represented expenses approximately worth well of including fees of quarter. additional

certain As business. to we from assets noncore and extracting additional underperforming cash remain value and focused on returning our

the sheet, $XXX the cash plan $XXX including and accounts. about of On offset of floor million the with balance quarter ended million cash, we

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

million we without of estate associated Marcus? own about Finally, $XXX mortgage. an real

Marcus Lemonis

Tom. Thanks,

strategy trend ahead Our our clear. keeping of and competitors, execution are well lines us is and the

to better We to be turn XXXX over I'd call much a now the to the like year. for operator Q&A. expect

Operator

[Operator is James. Altobello Instructions] the question Our Raymond Joe of line from with first

Joseph Altobello

And Have improvement new basis start on a progressed unit I guys you same-store just the sales want did seen any in your with as has April? look spring to demand. overall? how

Marcus Lemonis

at We for is of rates in of I very been problem the the Joe. were that hasn't back the company probably is level think, been factor, at affordability our about to half ASPs And beginning for this with continue to see why new the a really these the the for problem, vocal and company intersection we what What year, driving was industry find affordable. which the down payment is 'XX demand. demand, our has interest

same-store a no problem, we and that so continued we can don't on struggling with conversion really have we has we demand problem. basis which this market lower-priced down. we expect gain to was digits a made is that April to units into why heavy perform double So frankly, What on new quite were slow pivot share.

Now accelerate as the to get to balance macro opportunity there's really to the get to need bit we think we year, to but that go we the of to we want us through help little where a that to. an continue

has the pretty the been tough As macro know, for months. X you first

So we share recorded the results, of March I we're in proud of of and our history me, -- the or highest month market particularly, the positive February, team the in excuse our really company. think, in

Joseph Altobello

invoice we the just talk on helpful. on next that. of terms don't Maybe RVs about new sounds think [ decline prices issue And thinking a on in further need on like pricing, the Very affordability year. you it ]

Marcus Lemonis

assets the means have lower 'XX make we settle. anticipate but that negotiating And decline. first I us movement when our you I the a see want make half I want to finish to would of internally still so continue pull because soon quarter, down going we the prices and That pricing. XXXX, sure units. look a were a you 'XX Look, prices that feeling pricing on that, We pricing finer still the though, to We and loud used funnel clear conscious by we're around time love investing on the potentially point in that was But don't of is while believe on is material that at of so we why lower did results hear for me no great saw put any back the because disciplined we decision to I any at sort. used. used like-for-like wider. back with to about risk there not job lot procurement on still there that little issue shareholders' uncertainty feverishly would had a of falling made invoice a as people money the flat-footed to RV where of is demand models, could always

no whack, by used Now of moves that they couldn't new up confident mean that on percentage. But up a May stock doesn't we will back ramp again the back that up be gas to down and relatively to probably pricing around more cautiously as and step to the by that percentage slowly to to middle down again meet we goals. inventory go levels or that have the start we in we on believe would our get sales we have feel units or to start stabilized. And cause our out violent need of

to pain inventory. was it to our QX we year you can on of in a to when used we're we so alarmed feel it about a QX of really used it and feel we want carrying us deciding function margins that by we prudent, we take of shareholders in never a financials, drop to in want little at be strongly it look assets a bit So rightsize the our that sales lot the less materially did don't overall related think the a in is drop because value. is than not ago, function holding and us you and demand. not our a as We to

aggressive that move. we So made

Operator

Our of next question James is with Hardiman from the line Citi.

James Hardiman

talked or particularly release, is of for that's out So of 'XX again, maybe that, but or surrounding -- much sort maybe and think shift And there be the Day changeover sort that a model here how yet not? like between are satisfy feels broader holding timing some as or might for retail Groundhog model any there year already inventory chance landscape to going the we It into not that little surrounding just of timing along, of the dealers, whether that peers year there's the any pricing about timing, you changeover. the your bit to delve wrinkles that the you and just bring going brace to demand? enough Marcus, not year surrounding model 'XX, sort of

Marcus Lemonis

that's day. mean, something I Yes. thinking that every about we're

One of XXs in. our we definitely the that we gridlock number told unfortunately, used is, on going investor inventory pain And we the dealer are all basis were things seems We and unwilling financial is necessarily into in a there to were aged and take about, that to both went in lots. the competitors' to call our you, QX whatever and thesis short-term concerned of on our every of that it needed that conferences that that that be participate the gridlock. that. And do taken to We steps the sitting to. we don't believe was has

or body be summer, XXs. around And be on if tepid we're start probably of foreclosure We little the we dealer why probably that's and scenario. late us smart a to use that to liquidation So and July, rollout on the manufacturers leaning a XXs. know don't you the August into a very because there's going believe anticipating some see been surplus there could in XXs that intelligent very listening have of out

you way be part, business going motor range. XXs, hope because season most may that lead And entire shipments, we to manufacturers very lack look and retails to $XXX,XXX to This is waiting that selling still part. some continued to home are of cash to of flow, do entire the that their idea on a that the believe to few in going their of shipments that season. that out For are in small sure an a buy $XXX,XXX our be running to scale aging at start and sort nobody selling margin competitors miss And is there lack going I XXs. leak a they're when

replacement same-store that's be retails have has business to then be When So a and we here you because in believe sales hopeful, we and some see into going but off be back there's a ball by half. like could destocking to that that our see to of of we thousand, and wax. there the in replacements, we're if XXXX, going the we're couple of we accelerate general better restocking don't in kind that, we where know that

But we much are ago. there, interest. we're or it's same us X,XXX for we're the any that that out they still time to themselves think still are we out at roll out buggy their for not surprise year don't that everybody, had Matt, a to, manufacturers they XXs disservice than like If but in said man prepared are on there. can't there think, play kind going than better to, in range, earlier, than earlier best XXs X,XXX because were because say or We're XXs doing they've there committed you should down I I of the a it. they're

We have in still them fresh if wanted to new their on we they it's bringing don't rid bringing on lenders of inventory floor that. preventing part also miscalculations have do made from in believe why dealers plan or inventory. that certain the get know feverishly That's We some miscalculations age. while

Matt Wagner

Motorized, of we produced potentially aged could believe Rather, to however, start Just model to about over start even in turn at changeover. really managed to year, to accelerate inventory when this model year to very model coming over were units, have further time X,XXX hit wheels XXXX the but there we we'll meaningful December of October, amounts hitting year add time that, model better aged the month, units here trailers won't think November, XXXX marketplace we've travel our this believe directly more the be issue the the and months, that the model least been will the we believe July, towables but terms both and units. over beginning year until fifth I actually effectively. that where will about the the them never here for start towable slowly months. least ensuing we're at market that in necessarily motorized year be And speak frame. maybe future, James, removal. We to at terms and last in

to up how we XX,XXX X of we're be once to and very October side, market as this we've shipments, this as that was that time, we used new news to about a the just terms again hitting all the momentum picking in up certain exactly new ensure even trailer we saw in recently, today, We segments, the having to and here thesis the certainly time sitting have up really picking of game -- I'm feel September, while and largely the where months back to the we'll play the about units. think material direct obviously, you whole through we shipment a out the position back, numbers wholesale same such, were same our segment on share. clear, So sit we've we material that at out than mistaken, be over goals. good check the translate play came side. take up to and to if foresight next been most whole been but And will cycle, these I from really the re-up about year. game identifying the advantageous in that suggested been by gain as believe continue and is points a to be look balance as of play new start travel step turned, we've been our that group, which peer not units. And wholesale price that's We've period more this intelligently game why XX,XXX that played at

James Hardiman

for of rates XQ have get or the the little you adjusted helpful. a the it. us Got then first, walk and And last any to guess, then, X, better, lenders, April be month not result relative activity bracing rates of ecosystem with question, whether over markets think really be like as that. things I dealers. the customers how longer. or to of rate? RV a financial through of or as April the have higher did various little That's trended at appear run bit lastly, for sort a I late? sort in Maybe least in guess, that their starting worse to obviously, then month bit players of of the And And pricing to

medicine, out secret You bailed that they'll unwilling guys lot have lower maybe that sort have their made rates. no of peers been a it Any of that your to stance? in change by hoping take get

Marcus Lemonis

obviously what matters with a reductions I'll months business because was affordability. of on firm affects negative potential rate a Yes. it because couple it to on delay, which our most. any that seems ago own is be start more impact The than everybody has

Unfortunately, rate reductions rate to of the have of do P&L year, simplest is -- a higher reductions. to more for anticipated we and rate the and trying have we look lack thing to $XX thing going beginning how we for you people. been in the things retail So lot at plan and floor figure affordable as the The the make out million lenders, our year not at something reductions, planning to as wrangling simple on the unfortunate interest is, anything. us, when than for be our

anything the has history our evidenced share our hard down they're it's try rates driving not really million market wider And find pivot our settle accepting that by massive, mix find seen the in given in to that we our -- has in to one, benefits: number that audience. I when really us but our just X that control moving with had allowed it, really in around we're somewhere massive where We a people at And not work those has mix a that of ASPs us of deal We really rapid and do think in that's it. We've pace, have have to were XXXX doing, $XX consumer growth else. mix shell-shocked business. that doesn't rates mean the couldn't and but by believe never all started to to we've as up are. to change they're

on you and and Had you when off not Secondarily, have that had some a we not lower monthly we we the really buying end. drive really, could a believe need, our been would that a through drive of business insurance of the and down been the in volume performance some that's we ASPs, payment they sell, we affordability, assistance F&I back need lower driven that price down able the includes because would that see margin we drive and performing products you down our unfortunately, nicely. warranty other customer to they roadside down finance performance margin, not have been would believe your have is able our ASPs of to is on been and when that recapture

GPU. From profit there we the about that a front end, worry profit out that unwilling be look dealers people be and have medicine. been them, back-end to that. our are very and units still in since that to strongly the but gross subset of we're X,XXX the growth. look XXXXs. X,XXX very People that the GPUs, to been to anywhere small on successful accumulate perspective, like could from agnostic X,XXX significantly take feel when I take we've their accumulate front to could doing gross of the we we at overall company how our like So encourage and combined growth strongly, We'd as our more have beginning of we at

And our the transactions willingness to may stomach the that so balance able that taking profit, our with dry part assets or balance have sense sheet the willingness cavalierly stomach given on of have have it is that. it's wherewithal out that and strength pain. negative not to say dealers and us reality to I things curtailments that be whether through gross that liquidate make us it Now to that our our on taking financial noncore powder the some of and sheet don't to dribbling

with in we to do company mean, have balance the our this of dividends to little in last to in able in invest dig our those seeing to ability amount well capital, start to unique are in the we the pay beginning added that's dividends at working seeing invest I of built back just normal in share, clean dividends market best happy to in I months. that. Look, market our think we've 'XX, types at XX But managed the just we're normalize conscious that, we that not where this in that quarter we a things pain, using And our in of inventory, our XX seeing and like which I My our so that how level into our would of of multiple, some on stores since the is results. that going sheet, that almost of fine. some in beginning profit we're down a gross the think time made this these about used, 'XX, market down to But recollection, decision thing that X ultimately a if need deeper pocket our stores in margins, that's opinion, EBITDA we're company, at and moments have to financial dividends. business. you new buy locations is take first a the a been

market work to people. not financials, a our aren't a forma people really, of is firing So more you we because I, little Why you want our our of aren't people in our We really people? Matt lot is function we function more of a word invest people's and put you Why me. pro pressure our do. A do as have on performance, Good share getting Sam encourage you performance on people? to like study of our

auction a a like Our people also solid our market we up of to We're our stick. you One new a to of people just investing not X returns open to Those you XX% know of this function need go from make to business as locations, months. XX% that. that add service acquisitions, little fun And business around new as because start require people. training. business, new stores, importance fact We as to improve up and those hockey is add can willing we things people. we want matter on We parts we gassing continue people. in as X a the to do in as

which that is very, business to at that when X long-term of service. NPS very us you determines scores important in an like is Our from NPS in health scores negative our XX%, to any a all-time we north went couldn't industry. very, unheard thing were high of years stop We number is ago selling raising of the that

We on dollars to Those and take months. ability process, the or reinvesting in to next in here off our really our and strategic what's our can P&L. to running our have are investments liquidating be I acquisitions. of mind, to XX through of to the we in you, used promise inventory assets our continue a I In to to be million and those using the the very laser-focused it's people, and market balance intelligently, Those managing noncore spent us Matt restaffing going in are allow selling good XX investments. grab types and sheet, our cash up makers several reframing care way. is able customers in share know business

Operator

Stember Our is line next MKM. with of Scott from question the ROTH

Scott Stember

you talk tenor I maybe guess, the Can sales April. in about the, of

into on units been from that an April? still double You March were they digits. from side acceleration new Has up the said new there

Marcus Lemonis

An on a percentage acceleration, meaning same-store? of

Scott Stember

year-over-year, what's... general, just or in Yes just

Marcus Lemonis

Yes.

last of what the the we're is April, but pace, running a good at about same is is that the answer I had inside year. pretty we nuance April decent that So think

doing double last digits March in in rough mind, And really we're a better so we're than again we even really, up means because April, year. actually, had my it while March

up, the or were performed double-digit a and the a a fell still we we days volume could number, last on in were have off it, terrible of April mid-double coming good XX, digits year really the in kind comp. us or March, we basis. been month year basis. the against good -- So we of the a a month on not weekend really pretty call XX were for low was way It calendar, up a fell

even it little a So bit on either in we or a estimation, comparative our basis. with March even stayed outpaced

Matt Wagner

the look oscillated to high oftentimes digits in I week-to-week to cleanest it's out. And the That's percent the quarter, it consistently of of months XX-plus all X and at single actually terms gains. we our year, shakes balance look through the it. the mean, of Scott, through week-to-week, first way just year-over-year between

Scott Stember

were Got just back it. And out parts is service services and if and what discontinued and pure on active to you then the the service. furniture sports products business, the business side,

well. doing? like just you But You flavor -- it how it sounded quite in said prepared give it remarks, of can business going was that is a was us your

Marcus Lemonis

Yes.

we at in parts So our look and distinct business X service categories.

us for up Our a bellwether over the we're pay great way, external coming is getting customer the year actually are a which our the by ago. is repair internally. not taking work, which when nicely appointments, in provided always, customer pay, work, is work, of which people That's health by in, industry is booking

over last up is customer pay year. work Our

out we that do Our internal that buying purchases go have to a manipulated shouldn't make but chasing looked the trade-ins elected number procure We be used would good. easily by to repair year's work, that we inventory, or and that and down we things it's down, inventory. is that's could because not have buying we work number

work that health and is the customers show But on on used internal the used When know units. is up our we replace down. we of internal how up. business based overall the their to is us industry things So actually give down, up, goes subsequently business company and repair know work the determine when the our to currency we

good So indicator. very about we feel that

Scott Stember

looking World's industry year. Got think question. of just I you're growth view your retail for this at like expectations. Is some Is lower that year? sales the that? there it. the quarter, changing retail for last then Camping you also, this ability update more last And seems gave And EBITDA sell It on just to an units

Marcus Lemonis

expectations. definitely would Yes. I them wouldn't call I call goals. them

okay, didn't the to what that to know facing do deliver shareholders. us, the fact do that have aren't rates control have we We haven't fact and goals We're that to our that we really we nothing can't Lindsey along we I, out with said, good. are rest Tom If and and what with to the drop to like isn't to things moved. But control. the team macro going of certain Matt have factors the we marketplace, make. the have few anticipate or value pivots a in headwinds can more need we figure the there other that Our to

we're about to So that. thinking opening prudent how and we're be about very we have how stores

that stores go. are we ready they're example that, small X ready open. The a to have stores of are built, to As

an to year bottom of the to push has have choice the line. first we end And that the elected on next our put that's single want year to a We the make of every off least goals that because areas have have those or impact goals jeopardy anything we control those in to don't achieving own goal that, at of. going of in we the we do

even and industry. sales, think stat we hopefully the I rely that expect our just proven We the that larger upon trend largely Matt survey at to of buck we've information, could

feel the like that So new our in growth sales. upon number of going and And same-store regardless double-digit to hit going proclaim into we pretty the what's we've happening, hand new based heading forth that we're continue set to our of hit to experience we we broadly same-store believe, half back procurement. we're year. played material I how with that inventory the goals growth

Scott Stember

it. Got was great. That

Marcus Lemonis

a interest rates a if sure. We could wouldn't they for use bit. little mind We little relief the expense dropped

Operator

KeyBanc next Capital with from Noah is question Markets. Our Zatzkin

Noah Zatzkin

but in a that, of changed anything And on calculus in year, was $XX,XXX Not has around too terms terms the adjusted kind than came working level noted margins of bit growth the in for this, get there fine expecting. to put I to expecting on ASP. I new goal the of think towards the a used you the point EBITDA XX% stronger

kind as of So goal? thinking the used how new towards maybe months just of that relative few through and to kind you kind work of businesses ago wondering a you're

Marcus Lemonis

great think that's a Yes, question. I

real thrown try plan to just not new but and It's sort on hat correct. like been same, it variables have rate will the $XX reach The piece happen. the floor to factually opportunities. maybe of it's I remain number. interest goals our expense into Our find mean, a in is million. having our face rabbit that It's we're

calculus drop, to share, out because overall anticipated I think that rates have rate little that have our want entirely. on experienced any secondarily, we the we had may puts summer, to putting pushed. all down, drive -- maybe would interest We of by bit cuts a on pushed something GPU started now And And have taken side. front-end of get the pressure on that's market pressure we as ASPs ASPs. interest

margin just margin While ASP we a up $XX,XXX and it it's make or $XX,XXX ASP, if a can and there's gross on back same dollars available. it's is it's the x end percentage, the less the

a So put bit that of having pressure sort work around. little that's of we're to

and results, rebalance are to the positive know May. rid that. we're this decision. really to demand to the ASP over I the and piece see April, results have take chase foot see results. take us, you some give seen the and more. of side, our think we're in And that you of and that rebalance the to X the pressure decisions at other really some not and becomes said, own the I pain going going in but that's I margin use positive fruits when and like Matt and the decisions people we drive both if you business, a gotten you whatever the continued I have would and chase down, to to our make just will excited And by it be we've to used we it into these in it When we on it's make here want And to is, the more. extend gas the tough we something off on we've conclusive us, as continuing seen going inventory, get business you will right doing think drug, want and have of him to this because looked you

see those you We us market good optically, hitting Sam, people necessarily want you that when Good we you hitting results work, goals the just the see our and to other or we when we hope we do results. running the that how us do that's to you internal things don't think was when us, we And the be you reflect feel them it pay if growth, around results, about share them would that customer see see as where business. know want our as do we want we're to when other be F&I

Thomas Kirn

used into be we the our perhaps the of portfolio. XX% couldn't the to through threw of the to that was of through some while I of the year play in mean our invoice knowing volatile tune short we the rent that deflation I that with investors short first is more prices. how in proud We're X of on in there down We new something calculus. months plans term, ever managed was history being time a of variable how a term. used -- first our the believe And biggest that in wasn't risk-averse in company, right for our for that industry segment necessarily in were was it relatively the for procurement

going to again to to return get to points take up us for this which yield target the the highest on used, we stabilized directly market machine as we it's procurement. about us the until up new on a But mid-May that whereby impacting know price start a that, that investment. said clear really ramped Now us clearer to Marcus those focus to are segments and start path that's could earlier, and has side, going gives ramp

Marcus Lemonis

that the I units, idea, the plus to ready we're be there the side, just Matt and and million genius process, spent. to market we And XXX really Should industry. And now you that kind in are every start the and can growth the because investment maybe in this control about our up trade And to independent minus you to let's new create believe between as the maker need $X establish morning process we become used market RV It's maker it. testing is link have just authority. growth million and for the and been open, places the to show what him is of consumers to up $X like, or auction see industry. is at. our had excited. through of of up a the the it to auction and post glad our isn't process market the side used no in the new in flying We to we investor and dealers, a business, just for Sam the we're we become even a people market. of country pay process. will absolute of to We'll blend through yourself has of firm this were We And around of on you market ran When We now a the it. because CW had There auction isn't bit, yet? site we on establishing for wake test the it is rev. used creative little control portion spent small in the to price machine be only this setting launching ourselves you We take know largest in-person we Good the very, able wait valuator because our both maker quarter. We've percent we auctions we believe our that that, the looking stages in to early values. XX-plus auction RV very this and auctions, virtual first business, a we

Operator

is of Securities. Truist Swartz question next line Our with from Mike the

Michael Swartz

$X guess business. quarter, maybe And up investment the I you Camping decision? Marcus, economics just of of look I an that planning what first how I about like that think are just the are that, you in does we to spurred basis, And are pertains making? on said business Auction then much an there? just the how spend I on think that million wanted -- what annualized if World? to it but within as you to what much the CW guess, follow within curious

Matt Wagner

within could used we to require I no assets. So Mike, are like. made out go could that and assets details We some a basically X the we asset. impetus more explore never in quite which unseen, actually we in auctions business, efficient And the some there fine like procure say more inspect mistake. enable respects, virtual, it to had never let an we used was actually There a buy a back. what figure In out pictures, the free environment whereby a assets, site but enterprise really, to representative could marketplace existed. smelled idea case way side when could has slight me behind someone And step we but unseen flowed all take that's of the or us of the take site

us a timid assets figure through actually diligently more and really which to while perspective to to make of and prime to pump same that years market all run we we've working just knowing okay, this of the largely a This function realized amount online. consumers is first this we bidding the that's in million. allow that bit we been we've why time of business referenced be greater something auctions for tremendous much that literally on building. successfully do than the at could we're we us costs wholesalers and sell And annualized to to we've the time that. this auction not be through tells of too sell they knew or here many we've view Through out had were bigger see to with expense. Rather, was we actually that onetime supply velocity improve by for a it have many So We marketplace, as is wholesalers, been want pricing Yesterday, an how even these ways, could because We of and/or want is that ran And upfront needed able This $X marketplace, is them. procurement lot XX if ever too bidding, raise that how from And auction. market to banks, virtual our through day whomever couple and what even are XX form. assets. even process, past the mistake shot. entirely business have the that, market make extent. not mistakes. The we and And the unfortunately a concept into step take largely used are what for we at going and than a different these this just more participate. learned given centralized consumers more first build first, banks, mean was their accurate we I the to strung did to didn't the information the we buy literally we to just to used of manufacturers, more hand that procure out, and if altered be these for and/or imagined wow, there centralize or start more alike held set sales this example, we the a much

annualized can business. of of on wholesaling start we as and down feedback opportunity could can do, think in, think trades, we Marcus Where I Never we're front-end buck. turn quicker to X,XXX a of repos a different business. this be mind fees a consumers sides on it, where units looking have assets. Off lot profit. Or we in-person to see as we're quick that week we'll where houses an able concept, taken another run an could well the backside this, virtual different every page bid, we've of to couple somewhere to that of get a too, beginning that need want as we that going gross buyers when this course thing referenced that a a as are true we auction the transactions. whether bank to of want we'll charge of on as make real-time retail the that's auction in month we larger fact, participate. both more earlier, auction, about becomes at we excited if our basis. trade-ins to and pull that auction, expand, an hundred the And least least own out we of coming do we and to we Furthermore, super believe always to I'm be dollars country, of at we think and to around for today, it able about for our books revenue list sellers their how open all to get these other this just normal the profitable on wholesalers be the up wholesaler starts stream this

Thomas Kirn

dealership our in are And it we the to that One free any thing we market our contaminated to values operations by run acting independent other influence we the adhere market so than when keep whatever principle. is truly provides. free that own mind, not believe of that units,

we is it million at reiterate, some $X those multiplied an feel those times it the science, And a of annualized not through not quarters or launch the X should a some you needed kind like losses, more big we've expect it it But the to so just you gotten of that was of stand all. We that steps of we've losses that, look to it. taken down to cost auction, taking to when of on of us the at to, bit some and up.

Michael Swartz

is timing. most framework to some us sounds there. think doors extremely or think But expect of put the helpful. those what in considerations expectations just terms doors door additions. for but some on kind I of this appreciate open the question on standpoint, difficult just you your from many just And year? are second for I I macro for it this how us way may how any I thing like the to to you new year, is This about always hold And of model those just given delayed That's expect Okay. some guess, that. open many of think -- a some updated you've of have out you of an given to

Marcus Lemonis

Yes.

sold we that had I We X did It So $X more actually transaction. we million. around opened sold was for already. that we much location. that than We in mention location, think, XX

So to we netted XX.

expect looking X internally by then always opportunistic stores as we year-end, for potentially have acquisitions. open more And to We that always, X. we're

did had source. sitting fall of dealers As to were internally because things felt off they who didn't to than we deals standards, didn't inventory the fell landscape receive the weren't they fall number willing always we frankly. money, a certain more potentially on our of like necessary look quite were contemplated. off off We at great are the we that would with And they of through because and diligence anything our to We do that process, side. meet we a

We business in not the just are of doors. adding

We acquisitions, to our are that, And of a which much not to and going we being interested accretive the means absent I'm we're get it. lot expect in in business of anything not out pay in. of

anything. the quarter than would our I capital our more own around anything that put to of -- risk and we'll capitalize going business XX, of opportunities We're in going could and X, But fourth sheet anybody risk our them. for or put expect we or X than to not So that's at that. see X, flex we at or no do X potentially or a own turn dilution human X less on own have balance

Operator

the from is Bret line question next of Jefferies. Jordan Our with

Bret Jordan

marine. explore develop alternatives you're the you're like it like -- strategy? that's the pursuing things should comment, also sort going Sam in-house more we Good I you continuing back sounds of On there to guess to expanding that business of that, the the simultaneously into as expect alternatives push

Marcus Lemonis

No.

market. when I it think what talked this we we disclose happened the before to internally about was

and management Good always We Same and team they're Camping we and just the Matt are corner you're being the And the World ensure a unique your you're our Sam of of and management I Good response do have team. inside to put X that run middle kind to incentivized is, and And the certain team between in parents. in company Sam their things of team "Well, own the And said, wants dealership to team like relationship compromised. our that "Look, And Good from business." our financially everybody not wants chartered great. put

business." understand you're go me dealership boat that explore that go landscape. recreational in that but I run I Let not doesn't business, mean can't my the the

process, the relationships we have we the policies, vendors. the with the have We have

warranty space, it World Camping Sam getting Matt were business. given sports the they into to business they're So we ways business I get everybody permission or they're probably keep boat to which business. And that the happy, and they grow none historically, financially which power getting if going really try have their given And team in Good accretive I that to bit. space, to into the -- a we to believe choose have back to into, are little and is the we dealership of think holding be

received several value management the out put think their was pleasing. get But there with work over quarter Good wait that happening, the understand time and team questions? from certain I surprising pursue explore happens that explore answers wants initiatives, will doesn't ideas, same variety has that that's that inbound to properly we'll all At is, the maturation process. that long don't as of to the pursue we a fact that to time. in that we ideas. And mean to statement board recognizes months. next a And it the value business path Board database? the the in very was business. I the of while their believe of market same those have And but does Sam at marker matter the of made to enough, we those the that that's how What I shockingly with XXXX. that a that continue million $XXX that activity everybody contribution Now Goldman knows, first the a I of and on the perspective what

So we focused We those are obviously growing paths. parallel see now as our on right business.

we'll a And so is and exploring makes interesting that if Board. handling sense something But we'll at the decision. the all at it we're shareholders it. We'll this Goldman for options. present the it make if up, We'll comes And still look process. to point, see

Bret Jordan

on around Is also changing your agreement. is scale? And the then or commented business? a new strategy agreement of that who aftermarket it at the And aftermarket I Okay. supplier is side you the with guess

Marcus Lemonis

Yes.

at aftermarket of the and we really we looked as ourselves, market. our of retail is we reset, is Camping So to business, which retail approaching look we at -- business, and our our we believe a have reset have foundation to a we But word. we're how as the brand, stores, parts dirty World thought to kind

we're how reset to have and We inventory. money deploying

with and were Furrion, we we of frames agreement our We when with business directly sell it Lippert, furniture CURT in at were have a in business up manufacturing hitches selling to ended product and selling force that good ago, with to acquisition aftermarket, which our and outside in a we wanting to look the have successfully, And dominant the of things. our OEMs. of to Years is partners. Lippert. aftermarket definitive very, and all a to were we Solera, reset relationship furniture made furniture risk business. rollout and signing it with a minimize the those we enhance we very product very development, space They

a amount we're -- that entered pricing proper going of them enter the us giving As part agreement business. that the proper consideration, for to of gives into supplier in we

earn with we suppliers, is them, that, Ultimately, need that see rebates better we acute going and of that one margins. our an stores. them, believe returns believe our business, we an and product them, LKQ assortment And to of of that happen. better for a put additional that's number hyperfocus based being in have focus in need expansion one performance. them, have Lippert So opportunity margin small to Airxcel on on and we the going we of being a one to we us I there for being

reset of will on retail resetting take We're around our XXXX. million going one the standard. all We an $XX entire business spend to to in stores

thing our press with and secondarily, for vendors to needed And of THOR we same to the them given distributors today, XX us we're know, and have still to years there. assortment do using which dominance have now That and years mean and time. We've aftermarket bottom we're RV less are the people River the be will more of great and nailed approach Winnebago. used XX, hyperfocus be that come a XX, XXX proper we won't company a that And to business do Lippert, retail Airxcel, LKQ. we that more But side. products margin improvement, on up line. has down on doesn't inside a we address import own replacement We've performance meaningful suppliers of side other there the ago, different enhancement. we all have sales the our to our taking As cycle, like everything. variety be relationship. over were most we the with largely stores on that THOR repair, parts, life And accumulated have button iterations on Forest they on suppliers be and the sell would where reset companies, we the it meaningful to going one in the so That's people same based

Operator

question Davidson. next line Rollé the of from D.A. Our comes Brandon with

Brandon Rollé

environment now. Just the piggybacking supplier on right

within sourcing update back suppliers the months? us had bidding process? year a terms in talked of wanting XQ, and within you've diversification about seen kind the market over on the maybe new the you say maybe X 'XX And industry. of think Could in what of having you entering a past model I

Marcus Lemonis

Are manufacturing you aftermarket talking on about on RV the or side the side?

Brandon Rollé

On manufacturing side? the RV

Marcus Lemonis

appears only Forest it Look, Brandon, in Coleman at ago, with be Many, licensing will I we many and think and and Coleman we doing has XX get now, through in the years In actually in us the a work it America, Coleman Kansas, to together. Coleman by #X I quarter, -- and think connected our first that and and down with resulted maybe travel sold And Matt us. by February is and went what's And years trailer selling develop Winnebago. River to deal did that happened proof period. with to Coleman. we business. and I what is January in least we to product continue THOR, the way, that decided Wichita, the THOR into effectiveness decided was products of we

things our or not ability because stronger we the very have to data. a is are useful of or because data so way probably to manufacturers. a And is engineering influence hand made lot that the heavy And but the ever, design than we have

at our they're innovation, that whether need healthy we in TAM market looking billion only it the which TAM only ASPs at $XX And the the repair of is revenue, to industry influence the the a grow. of is to to way data is becomes company the industry is billion, looking our And excess we everybody. of overall over we use $XX at industry our isn't for records So healthy. to available goals, of the it or looking they're overall at but have the or looking or to that order from. whether that that meet influence make whether be do growth we that benefit whether significant we're churns something In way

we what have. Here's

ways we more working whole River. develop as is Here's applies. But to benefactors having the because our overall better to Whatever what manufacture innovative it and that to Forest sauce with working industry ship we Lippert know. everything or industry working with grow And secret idea we that. if things products or a of in some units some develop primary And an industry. be obligation Keystone cases, to want sell be, successful. duty we and hitching other with THOR with share of so XXX,XXX to JCO, to the have or that's between I to other do to have working proprietary and Lippert and whether cases, we're may think do of in the this Airxcel or a more

Operator

Our is BMO with Capital next question Thomas-Martin from Tristan Markets.

Tristan Thomas-Martin

last just did by off think XX. XX there? now that the due to dealerships the year, it's said something end I falling change you to quarter, XX else Is deals? new Or some of

Marcus Lemonis

say didn't we we No, as here. already opened sit XX XX. We've

Tristan Thomas-Martin

XX. less No than

Marcus Lemonis

that? What's

Tristan Thomas-Martin

than XX. less no said You

Marcus Lemonis

Yes, you said XX.

sold a XX. so one, we've net So X. that's XX of opened since January We

July, today thing, Right in that's We Matt the only there growing believe share. to every stores that crushing a [indiscernible] market out open more even new the fall, and are have there to that they're The year. I We know day X be the in are every in that there now, half. we same-store back buying what that's to are brought deals going out will as on and week. by before to better. our we we just end here sit the May, I'm us by June number to focused hopefully, in out are winter, and get going meet deals at And our and open, the But X the to not of X and number look likely are than and acquisitions something. going

a we're could XX and a to the that is always XX, deploy to rush smart, our XX goal be That's up of leave believe to company the needs level to So accretive. we time. always And being it blueprint ends not of at money and in The we it have vault that going whether better. from get acquisitions. beginning or our be do profitable or later

Tristan Thomas-Martin

has but And in may how I support have the how this, promotional far in it. trending missed OEM then Got quarter? been does that so XQ?

Marcus Lemonis

buy assistance. drug don't be bought help THOR, or separated and purchasing that River with then we we always sentence. to to to in and not I'm it always particularly money inventory to Forest make the then to need if QX, it. to you it. needs balance have more because hooked We to to the of product And bulk from to buy that want but -- of the year needs for promotional decisions addressing the find going like want the we had something QX our of something. so. bath have take I that did that in we get always get good have We at the that Winnebago want And want been on helpful, helpful We have is, back are balance end manufacturers period support much exchange didn't in you in us We really last taken been inventory

So much in the did not have at all, we Tom? quarter

Thomas Kirn

No, much at no, not all.

Matt Wagner

innovate to manufacturers And just as well, position as products just their healthy in continue and maintain we and like a well. the

as we THOR, Forest to needlessly, want we certain well well, of together do with take that never point both that as Winnebago, entities knowing we Marcus continue pursue target which promotional support worked very profitable already any the price has segments. just especially River, can So be we just those to segments, X named to sort

Marcus Lemonis

think X I exclusive Yes, it. total? point one the in or on how some just We've top have, and so just to locations. think more we We and out within spirits, that, I we they Matt of to thing alluded X launching And invested have I within to many we're have now yes. segment also think now, this up launched

out have of deployed stores, Green code So Northern Camping really rent I the on Michigan a may in Design on Grand don't They a Bay those big that of think launched, stores. or store it acquisitions building to They're the And growth exclusive future be, may do business, not whether not take with the learning on World nicely. lower addition capital cracked we're and big to acres. XX we've cost or locations incremental way retail factors. growth have are that's incremental whatever Keystone to of performing that of this

to double road mean, on on I manufacturers continue I to in pretty that. So investment is the on down on those. those been The has pretty areas. spectacular are And some return spending good. us would money expect those true the

assistance, We So in investing the only from and all believe they've couldn't exclusive not talk store X our been assistance systems, happier company, been when in aging processes, provided you which investing doing, other core as in with training, partnerships can all about and the this in concept. they've doing, all come be which participation parts we the been which but of and amazing. service the -- form they've the have manufacturers investing that dealers well. manufacturers

Operator

Our line of Alice the from Wycklendt next question with Baird. is

Alice Wycklendt

Craig this for On morning.

OEM maybe through in significant any the gross the new the under number the just think X,XXX X per like profit factors of in how side. on transitory to I percentage just question. dollars quarter. But balance gross I should came from around think support wanted I dig the think mean, sounds XX%. margin year? in that margin there It weren't unit about I we

Matt Wagner

indicative normally quarter think first of of see that largely this the years. most we is what in I

if then in, take. X so up little the upon little then not quarter generally, quarters, you that I pre-pandemic XX% at depending higher, could kind perhaps again, margin If that levels, bit inventory. what look but range, settles that the of bit probably lower, around suggest And for a would next bump general mix like give XX.X%, of fourth once or is a

Marcus Lemonis

was So I putting was to and Alice, your the assistance there think no manufacturer page hoping, point, I'm are That true and definitely I at number about performance. on XX%. this. that Matt same

is last XXs As down, it to and the XX%. what ] really that shrink through could we work sort that X,XXX up prop [ of

still a I number inventory again customer. get the as clean year, good We going it's a back fourth want to for of take grow care the into little fall And market into share. quieter. to want still QX. think you we down to quarter, want we XX% the end QX going of actually then is are obviously and probably back the to because things

have our more. little good are. bit incentivize feeling new we're but a You the margins want customer have always to where We more, to about

lower open lower. One margins of ASPs, little the front even is the dollars are even people, dam total up you profit you gross when find and you downsides the the when of though they're driving good, on ASPs down more end a

us around and come really rates get So start back ASPs is to could hopefully, easier which X,XXX to right here, as be, range. time, a $XX,XXX it those interest little there that down should X,XXX to rise back becomes we over $XX,XXX and affordability where think

Operator

our this I his session. closing comments. for over question-and-answer to Ladies concludes and would Marcus hand now Lemonis conference the gentlemen,

Marcus Lemonis

the you so Thank for call. much Great. joining

very deal to continue we we the the and understand market are support. very balance you we our sheet. your on with about to disciplined for delivering on We're focused results, we As that headwind, thank want the

call. on next care. you So the we'll see Take

Operator

World you now Thank Thank participation. you. of Holdings The conference your Inc. for Camping has concluded.

You now disconnect may your lines.

Marcus Lemonis

we'll on the care. So see call. Take you next

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