Camping World (CWH) 26 Feb 252024 Q4 Earnings call transcript

Company Profile

Participants

Lindsey Christen	executive
Marcus Lemonis	executive
Matt Wagner	executive
Thomas Kirn	executive
Joseph Altobello	analyst
Alex Perry	analyst
Craig Kennison	analyst
James Hardiman	analyst
Noah Zatzkin	analyst
Tristan Thomas-Martin	analyst
Scott Stember	analyst
Patrick Buckley	analyst
Ryan Brinkman	analyst

Call transcript

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Operator

Good morning, and welcome to the Camping World Holdings conference call to discuss financial results for the fourth quarter and the year ended December 31, 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; Matthew Wagner, President; Tom Kirn, Chief Financial Officer; Lindsey Christen, Chief Administrative and Legal Officer; and Brett Andress, Senior Vice President, Investor Relations. I will turn the call over to Ms. started. us get to Christen

Lindsey Christen

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

Marcus Lemonis

Thanks, Lindsey.

entered runway. extended we $XXX with to raised million was knew XXXX, and an our week, we in last $XXX our As years company. capital adding plan floor October. it growth fortify RV of facility by successfully amended additional really million and And of we strengthen We important X

plan floor $X.XXX totals billion. Our now

used ended basis XXX expect we reaffirming capital results affordability the our of with on does, ASP We're end total dealership annual are at both to show to target that combined and on will used. core new over XXXX to XXX historically are selling consumer used season continue early carry spring, a close record SG&A. and belief in XX%, units, The the It's on XXXX. with new is we a encouraging across side. up As XX%-to-XX%-unit set and deliver in on significant units, that results it mid-single-digit of improvement value ASP continue unit Early 'XX profit through record focused hitting new XXX,XXX We we indications our through as the growth growth. XXX,XXX XX.X%. and price on selling on used new and used and from $XX,XXX the improve $XX,XXX healthy today an and combined gross to to our deploy into XXXX seeing low improvement early a point XXXX our market to momentum share, growing M&A growth single-digit transactions guidepost of in new, inventory in by multiple expected

second and that's by being and reminder, a driven first then accelerating quarter with the QX. QX family fluctuate into As going and lower-priced to units camping, quarter-to-quarter

used of part January and with full in in is February both fueling setting swing our procurement each process that month. growth, As respective records

the while It's several treasury XX-year yield our retail see our If core to improvement take It's as finance in on their enter by very next improvements. over budget. more fits growth make along monthly months the We stabilize more primarily to that expect them selling prior a reduce, SG&A payment my season. be company call volume the we accelerate experience money. rate allowing additional that sell relief continues purchase turn more simple, gross and Look, going X expect profit I'll RVs will to the margin over to now to to customers, expectation we for unit significant Matthew. our we compared have for goals with the dollar That's year. the first and explosive driven EBITDA quarter gross to year. and the maintaining

Matt Wagner

Thank you, Marcus.

businesses, by as a weather weather as in sales encouraging modestly. unit month. achieving weekends same-store we market record single erratic. the But January used quarter. line once We patterns new regardless units that teens and mentioned, sales positive solid factor, broke, to history, was the demand surprise in past both pent-up anticipate with the our best this both new of it's very double digits, our to As both we of used our pleased same-store sales in with and will high in the same-store very been share track continue were with expectations. our digits new to used levels never February February sales used momentum we down of experience fourth one weekend XXXX unit the same-store weather and have start like increasing We the has during new off in that directly no low cite up during been experienced a

or the today. contract We in our X to under rooftops of view spring. we've does evolving process. in dealership industry multiple positively rooftops Year-to-date, X LOIs growing X RV an closing close While the our X the with on intend as another of still remains with additional to place acquired by early, health end broader either pipeline of acquisitions rooftops

focused business, new we the on progress Good reestablishing RV judiciously market dominance maintaining made remain XXXX, we As and in all we Sam, maker tremendous service and the the market unit used our have our upon industry, our metrics. in as expanding while enter share

in We broader march continue provided to the to the very control factors within recovery XXXX. guidepost see our last We largely now what in defined next of industry quarter remain turn I'll the a as broader place variety we meaningful towards independent of across Tom. or year, a earnings confident over we the economy. call takes

Thomas Kirn

Matt. Thanks,

financials. the to Turning

fourth billion, unit increase increase an driven sales X%, revenue primarily $X.X in recorded XX% by an For of an of used quarter, X% sales. and we increase unit the in new

excluding driven quarter the business. as continue XX.X% of the sales to prior more a report business costs a show loss fresh the share returned during from inventory cash the to account. procurement quarter continued at prudent service increases from quarter. of ended primarily revenue support We've year poised by about business we related EBITDA. adjustments to as growth including unit to Good percentage to lower margin excited X% at of quarter. recover our SG&A despite year, of we roadside loss million of of the We second used with Within gross and but plan to was promotional million We market nearly with offset growth $X.X the pace. to to Used as into vehicle period. XX.X% sequentially Sam higher-than-expected of our dealer in compared top improving assistance compared pressure of $XX gross growth the off our for capped line year-over-year toward accelerated sale million the points. remain product, XXXX to last an work gains. revenues quarter vehicle in by the core for driver in the SG&A adjusted the as cost New profit primary a $XX million to earnings continued million improvement with in our EBITDA in coming a claim line gross and I'm lap percentage insurance structure a in expectations had floor cost services with quarter other, we in as of as and January basis of continued year solid our product cash, XXX used target growth. least is claims we inventory of new gross was The to the productive back margin accelerated system bring the of full encouraged $X.X XXXX profit, furniture $XXX make

inventory. $XXX of used inventory net had flooring about of million also million and parts We $XXX another of

call the Marcus back about I'll estate own without final real we mortgage. $XXX thoughts. Finally, associated turn an of for million to

Marcus Lemonis

Thanks, Tom.

our growth Our open in the our from better current be that significant space like outperformance our see a call I'd control. of our market the much within share, team's Q&A. our and for to XXXX belief up white will year stems conviction competitors, we

Operator

[Operator Joe Altobello James. with comes Instructions] Raymond Our question first from

Joseph Altobello

more same sounded that other coming new expensive a the of going simply a maybe with that monthly Is you on rates buyer a Marcus, some question there? dynamic on unit afford morning. First ASPs, on there Or constructive pretty is can payment? factor down this so mix and

Marcus Lemonis

these to year No, the seen is years the start units. in I We previous and lower. all country lower-priced that the that have shows you around Super and the people go we've Show what Tampa usually think ASPs little a buying

half the that Class, to cetera. X, the B, dissipates accelerate and year, particularly larger buyer, we quarter back camper wheel second start C Family those fifth As rise a of into ASPs into as and X et

X.X the you the and the see to not around as X.X I purchase. wanted make like our retail down think of a I to think is hopefully retail the community. sheet to rate at the correlation long treasury fluctuation to ago, the down see tend treasury direct the our reduces, rate buy retail there's treasury, sell we when that consumers lending from stabilizes interest point their sheet, XX-year in XX-year too just XX-year from it's that on the I ultimately, reductions And look

some come in a to payment. allows a not down, unit a a from to to cases, that $XX,XXX a and to in difference reductions go see quarter tremendous customer rate $XX,XXX full those point, the X.X As unit

$XX,XXX be of new factor. look on and year, of As we on believe accelerated $XX,XXX the goal side we the side that used modestly by the that will balance towards the the

Joseph Altobello

follow to gross profit. on just up to SG&A And

is another XXX How of points versus You that some basis cost thereby in much of year. driven discrete improvement profit savings? mentioned this this again, morning, volume or from and the growth XXX dollars

Marcus Lemonis

going of truth had during about is XXX the holidays us year, but decisions to last ability to guidepost have a points. towards give achieve little we a just equation. were the it, gross And management decisions improvement in we as to were to That's knew plan. But some the overall all little headcount, be because provided make top told, we always obviously, knew math XXXX a our the There us the difficult to basis we XXX the that from to profit. coming in some just around team when make was anticipated we very difficult it quieter a of

deliver what already go basis we XXX to the through ensure one to XXX we're to to are XXX ensure year, improvement. committing If to we explosive basis. the overall on annualized we recalibrate give the us be As that we absolutely material the It's clear, basis market, to general point doesn't an month-by-month, any our the to quarter-by-quarter points at of we to XXX in us inputs are time, to SG&A that achieving prepared economy expect, the points. EBITDA the committed

Operator

Lynch. question comes Merrill from with Bank Perry Alex Our of next America

Alex Perry

quarter versus been from broader feedback informing of in release, green been a think strong last specifically, press show Have on terms what's across And of mix season the RV Marcus, you landscape. guess we unfolding that? what you Any season? In show year? Congrats the the up mentioned year-over-year? I during here. variations see I shoots significant is the sales

Marcus Lemonis

into down sections. I want X that break to distinct

And reported. to to cases, first is that of QX lot we're of it's think I dealers their is restocking manufacturers have the acceleration think the excited important shipments I a denote function a that really in recently inventory. see shipments

of retails look when how that we the ground to When most are it's shipments, inventory, the we to We be really country are be in March more an levels head at we at that able to important again. the industry effort across dissatisfied stocking on And the as with where the we prepared dealers our and inventory than we we current think grow like to dealers X. look have sell. built into typically

typically bit going shipping be as to That little tends quarter, it. to of the bodes probably quarter continue good taking be it. third looking and When in position It make for doesn't in we difference and doesn't quantity. may little the philosophy. inventory includes traffic our if first where quarter for we we restock that traditionally and on the to $XX,XXX continue well a volume what to want want though We $XX,XXX that in with retail terms don't of quality green foot fourth there's our a stores, a over think out other into lead dealers robust opportunities we see So, same about more industry manufacturers. good We looks that a so sure track ourselves. we're of quarter talk miss volume, shoots, really the second to in little temperance on the to have bit that just you see bit

from better. we is than values a The interesting us that had giving the And again can people again. asset. their year, to wanting last are cleaner. to that industry. stores there's means paying is the overall people increase RV marketplace inventory get right nervous important on of distressed We're where to some holding are pay the slightly the for people used is than because and It's going think seeing that cheap used a for we're slightly a we inventory again. margins willing leads marketplace. our we've they're year. tool ago. distressed ours to because year the was we how leads really and excited now, is when We're And conversion But is the we're excited are much bit clearly also consumers use just inventory value seeing note the also to looks which to comfort the are always without that of opposite applies better our Our exit. units in that seeing little buy not to in are it on continue We people in to same buy units. determine going into as thinking But cleaner the Yes,

the discipline the So, if inventory produce, consumer around of ground a to the take maintain what dealers demand bit they little manufacturers hedge can more on if putting a can on satisfy year, macro strong, the environment, stay there. out a expect that's standpoint a least from if could the And at used values we would absent some sentiment better industry. materially crazy for

Alex Perry

led Can inventory in talk year-on-year And talk your then I the guess that gains? about in just like contented my follow-up XQ, side? change sort has big of significant XQ. more changes you just expect in about you new on units you sounds seasonally, just the new Can mix question. the inventory share to market the It any

Marcus Lemonis

and years a the used want We the if to our consumer buy buy. consumer the stock architect unit I or that wants less think buy. buy for to system, the we we that has to of wants one we And the don't totally inventory buy the expensive been agnostic. a unit, secrets are to Matt is, and inventory

is XXX,XXX year. goal We volume don't weight, the price. used, to We size, this care just or sell length, Our transactions. the the want the new of a units

Matt Wagner

elaborate even Alex. that more, to Just bit upon a

of that, strategy consumer RV whatever points, that price within certain shows where payment percent payments a to each that can have entire as built we've As of chart just more that afford personal ensure capturing and of consumer inventory monthly displayed points specifically our expenditures oftentimes a we're monthly price we targeting segment.

customers that goodness, about plus our disciplined decade we've over of that be the now. have, hitting that that event proof time. Class wheel, back first the all point that amongst point contract travel serves in portfolio think our the that point exclusive And have the our investor now, those where that for lifestyle into that's we fine-tuned entire come B as and we a so inducing enter been such to very able the lifestyle or and at that the past to ensure Tampa best-performing on inclusive manufacturing we C, into brand the we the when assets these focused assets fifth price we right right to trailer, Class this So, our we're just to lineup are to of we're showed the where

Marcus Lemonis

everybody It's the dollars. that dollars generated profit important very of for that results the wants and on only us is the not But to are that in because the not ASP that. from to unit understand no focused we selling matters that ASP, the gross on transaction consumer the ground are right but having reason

And to competitors ways trigger. very find do have creative up or, move so, balance to between frankly, the quite other transactions to being want not consumer alienate about we the lose to but we the or not want finding ASP, pull

So, year the when in of of of you new the are our science look where Where early it's where part to we from, need much a at lean and do year, converting. the used very need to we are restocking, are in how leads we we're the coming our we on early building not part lean in how out. are and converting, we do where where the

forget months. the in hasn't last X really macro not changed that the X, Let's economy general

inside of And it could it. a more has some that argue little friction

order So, daily we wake those dashboard what the the on be the purchase telling and to we're of the responsive is that consumer single modifying basis us. modifying when all we every day up of a on metrics, are we different units at real-time and to looking inventory

what change to because piece think year, companies wrote they're they're playbook write so times lot of a the a paper. unwilling to dedicated on a they and I of for

that there's new little think a later. Matt possibility we functions some there's pricing will I'm address adjustment. to that little differently. be going And that a company sure the also Our

Matt Wagner

could close increases we there could as chatter we're be. which and values it marketplace, to between we I changes on current we so used than reason ultimately this of X, perhaps raising upon X%, And healthy the should the lot be units have into probably it's about be pricing pivot okay mean anticipation that marketplace. prices in manufacturers. we've new just much just anticipated aggressively more not model to that where tariff in ultimately imposing sense we and And at raising There's procure even is changeover, maybe have new year these continue endure out keep us And over prices and can near going about perhaps in course, year and that exactly frankly in someone with continue will new that of based to had have, out the some price a pricing year. of new used invoice very we the to some spread, model to will believe, invoice be even next confidence with okay there's a June pricing as more that used a what more in tariffs if on conversations with enables as because to that's delta of future the we're beat which have long between greater looking even and manufacturers that in further greater industry, different and of modification that knowing impact whatever that. those

Marcus Lemonis

of way take approach. we to And we I inventory we our years. other shelves think bring the as that don't front-load the solidly channel get try March. advantage have is into want our well pretty people stock we for use word out of different into our and as may head a One because but I inventory, ultimately to that

to of if going The of have our tariffs get, to on ground opinion, the do the tariffs. devoid ground is important I on we our to that So, business. only inventory have think, become today more used those inventory is happen, potential the that we only some is going in the

Operator

Our next Kennison question from Baird. comes Craig with

Craig Kennison

'XX, on overall commentary guidance you the if efficiency been this had and already. just appreciate of It's look helpful tremendous the market new Camping at gains Maybe World side. share super call. Really

about extent to the further I'm of for You drivers wondering anticipates some just new? talked in that. your guidance gains market what share

Marcus Lemonis

at year capital you positive amount exact limited the end we It's always and new a that our expectation amount and and side. a how time on the it's for a, balance much the a get used because, drive of limited the regardless the same of floor to customers. have And plan we traction used of

do potential inventory to and earnings trying that yield margin really is in we kind we're expect the to ultimately investing us demand we're what maximize getting a on all so, and back of the maximize And from ourselves. whatever

is to share, on unit What that we units in it XXXX we which know market share. to not are making at expense than public, sell. type and that doing, intelligent we expect a getting to are we and want our would also, agnostic of were with want we the Matt gains unused. But record sell give up good goal We competitors to the expense overall back of went our smart in lockstep want to the it at We've a to for new in of X,XXX X,XXX year, share based We we're be the that market ] we very chunk at sure last the don't far and what year against result units be lot last XX.X% us. time, not and but combined compensation of kind to P&L to did what that defending [ this, said bring of we are pulling same about in. less of internal a our of more and of us we And since XX% I about new market be a margins. an no on

make more the units. X, sell that get in right our percentage XX. money. more and means point focus to more an sell XX,XXX X every And ultimate single core have next That's now, units to years We we incrementally have goal to

Craig Kennison

lot us in made used you've your a several platform Maybe you last And investments year, you then built remind and avoid of depreciation to a the that a years, platform. slowdown in just then last advantage. a decision But and of you made strategic it's that have lot think the why of tactical market. over

Matt Wagner

saying to to I customers can ensure we're should values predicting hands that their best should it's be every the residual developed asset we way even their of asset. more we that value we curves that's just years, that put, today residual neighbor of the of they be. could around RV a X,XXX Simply most wanted to to platform wants what which of on a what value the able all you, sell we've another the assets Craig, nebulous customers get the we've the over gotten that's assets tracking the least the And ascribed one own in marketplace, and what's really that's going when portion their that lot X more of peer-to-peer through a focusing the better understanding to and zeroing have that been And on that real-time flowed asset. greater value us. and Good they really good decade last single and neighbor at specifically, gosh, entire a happens wake at through tell that extent of that That's work even worth decades of raising about up our over information very worth what's being been entire environment. enable component and last we've X the And years, anticipate get over value Valuator. to a to used on more we've And day, plus the this market the Sam X

prepared are them to of sell. Some

items, some because a human just the the payoff Some a whereby there's through can had still that loss with we claim tell have of that that work go bank an there's of claim looking purposes. some And have opportunities them with continuing this paperwork a gating more ultimately assets. they or you to DNB end for there's amount We're required that insurance buy to total interested entire still other asset, many this with you, transfer I communication have some with and But in just valuation of to to to fine-tune of no are sort a to machine. that's local this extent, to customer one-to-one ownership. or selling capital variety

to get better continue over the years. we runway of X-plus So, next

Marcus Lemonis

not eliminate does the itself. opportunity the around the prudence acquisition around excitement The

the compromise our right We from necessity level margins the margin it used. turns cycle that be profitability still to improve other the And our a -- on used a to our while a buy and has improve with side will not because we return used to used on can ton, margin the is we to demand traditional know path on explosive growth. calibrated

Operator

Citi. comes next question Our Hardiman with James from

James Hardiman

lot things couple great appreciated. so the a some of that So, you said. of color Much far. I had a of follow-ups to

a hell of January. bit like had a sounds month it moderation. February, a little of of you So, guys

your I there. sounds think walk through thinking expect some look It maybe forward, like the February? between, we that on You to like like more weather. in go but more about us January, guidance, somewhere called as you the out guess would based

Marcus Lemonis

at to years, know over the our month move though, could be February. cases, March about get backlog of one about We I want that those month in of set some In March. honest. anybody not some last obviously, because we're some concerned to don't the several month, be we several will into of months years. look we over records think When we there over biggest concerned February sales

units March, couple we a already when deliver. scheduled we to are thousand And of have into go so, that

in great can those of had transactions, anchor the things. with the on mentioned Yeah, our were at Friday, of Sunday, store Florida. some X February, it happen. everywhere, there last base of But times. some one up was in weekend various pent-up for to things between degrees when the XX% Those wasn't So, than Pensacola, in And great. aren't on Matt Actually, that our while things Thursday, you demand. start us. it of want there them weather to more snow where the Saturday, gangbusters does, never X build you moves X it or around days. were probably miss We out was weather where is we closed had wasn't delivery earlier what

did suffer will What up. make were we we're playbook XXXX for know executing morning each sound us looks very the make going So, that through high hundred little very, on that couple X-ing units up. we a for to of them that we was we're and it bit. is those Monday And other that exciting

up that a showing have in what's know we'll think very I to solid already March us fuel quarter. is giving

James Hardiman

sort And your a expect we year And selling a about average ago, type of But for rates season, XX-year of little the then, the of today cut should where versus Marcus, of from sort unpredictable. you been guess, and we some here, bit I noise somewhat tailwind through coming are more a what consumers? down, talked heading perspective? into if rates maybe importantly, the a how the rate has

Marcus Lemonis

aggressive points share cases, depends The on are who certain lender overall grab lenders it XX year on, was to than care market retail And basis to is little that about ago. the is. anything than that been about based a rates, which It XXX bit that's have more ultimately, also in looking that. some a lower tenure because we what than is more

that to the today. say, days. structure structure about spreading rate We retail year as business lender X or of try really know is better them it's enjoy to XXX term company be important to us. points our generally payments portfolio give no consolidated others more and I XX ago we than everywhere to on or One different it But on a really compared of to nuances that, opposed to banks, that's different a basis a of would speaking, for maybe able disproportionate have we

Operator

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

Noah Zatzkin

I gross than a first, expected. guess, came new in margin bit better we

margins So we us you're look new kind just how as gross XXXX, full through about used remind thinking could and out you margins? gross year of

Thomas Kirn

bit where additional year-over-year. anticipating less higher is we on was was No, quite there quite we We little what you from of like which little received ago. the far receive say QX, manufacturer is support, that XX% year-over-year, a yes, than it literally a down in year in support that come bit did QX it didn't year-over-year had comp, clearly a manufacturers, some a bit if XXXX lower. of look however, at But some and did we're XXXX

Matt Wagner

actually. half Almost

Thomas Kirn

less half. than Even

of think feel I better where good So, performed, we up. about we when pretty how ended we much

However, new if of that XX.X% gross on margin haven't deviated you what we were on entirety to forecast from year. the XX% out those for really profile side, to and range that we're the should gross for focusing be, XXXX, still the margin

Matt Wagner

balance right continue to end aging the average on north then on side, go the for And see and with year to expecting the sequential XX%. through we We're of still and now going we're an looking of velocity used a to of I to maker. you're as nice to suspect used market would improvement margin be that But year. the the side eliminate

always accelerates softer a first because outside then a it little just is from quarter there. it's The little slower and

Noah Zatzkin

one just maybe more. And then

of close of thinking to full expecting guess, the could you perspective? you're acquisitions the you're remind I kind year a how from us by add dealership net about kind just Given, spring,

Matt Wagner

report think to and sitting, of XXX I we're Today, going our filing. Tom, it in morning? we're is as Yes. this

Thomas Kirn

Yes.

Matt Wagner

filing? XXX the in

Thomas Kirn

XXX.

Matt Wagner

And I -- week, so, X. on a X to closing closed X last we add we're to minimum. at would X us expect on

in XXXX. thesis were any same-store opportunities SG&A don't results. able reductions continued risk prove the in to commitment do be much that to made With to We raise see that's capital taking at going we need exponentially the looking are to capital those growth a very the anything back the to were going add allocation. to fall, and We of focused we sales to investors until more on we want rigorous the continued improvement, out

resulted provided XXXX. at guidepost new, As we that we around used it's SG&A, is whatever margins, us the market they're earn for in expecting us to look the telling

and focus that do is internal to with going Our anything aligned outcome. we're compromise not that, to

Operator

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

Tristan Thomas-Martin

assuming of you kind are What demand? for industry XXXX retail

Marcus Lemonis

to that Do you take want one?

Thomas Kirn

based we that pretty demand upon, in the flat industry. year-over-year maintained anticipate relatively band, which we've gosh, months anomalous history Yes, being last the somewhat retail within tight a would be for few

So, to around higher. in XXX,XXX-ish slightly being if that we'd there, end will on not anticipate up retail be wholesale have We'd even sales. probably that right number

stock supply XXX,XXX to we about retail sales, the as if have to to will the amongst the off dealerships right support all that XXX,XXX wholesale now. throw inventory rolling so industry of shipments scarce And much want exists probably XXX,XXX because of

Marcus Lemonis

of there the we gap that, amount a happen. reaffirm think To just be between to of retail does to need have the amount shipments and restocking because does

more going up number XX,XXX still to put those because XX,XXX a I have buy to of any the bit little back we they tailwind, if And inflation XXX,XXX XXX,XXX may have on If think, a between the and little a difference to mitigate I issues. think to out get a get side, XXX,XXX. whether X be, that have little used on don't things being could the bit to just to up other struggle or more noise, that ends go capital we dealers to those shelf. that pop we there's retail

and our think be XXX,XXX, could of to. XXX,XXX But higher being to So, XXX,XXX that. wholesale that mix retail agnostic again, the we're really makeup on focused than we that, range that we're with

Tristan Thomas-Martin

bit a then Are are shift affordable still Or kind 'XX. a hyper model beginning the little maybe question the just to mix year units? the higher? on fixated And OEMs we most about of

Marcus Lemonis

word a there, missed sorry I in

Thomas Kirn

what of On units? kind

Tristan Thomas-Martin

compared see little more 'XX model 'XX. little Well, year I'm just maybe a the the a to are year OEMs ASP-wise saying, shift mix higher with we content, to the focus model starting add bit

Thomas Kirn

towable motorized next any year increases, model the the or could switching relatively to switch sort if it's compared the But obviously, be to going potentially there's model even much for rather that still pricing could until June for heard early, contenting as assets, haven't additional of XXXX. these X% like-for-like asset be I same X%, manufacturers have and to that just we higher as maybe to I've there. in developments static any to sort of of the XXXX. so, which prices over recent manufacturers, forward remained of those X over avoid chassis months heard of year however, start largely price have not case, The not which sooner,

Marcus Lemonis

that don't to to, would maybe even know was business to Which the I anybody that And don't some thinking in a value probably they would I some more our that adding anything be they'll could I absorb stuff. see tariff adding light continues engineer adding looking any about better. COGS. be why cost furthermore, that but a ways surprised if hedging I retail would it. to of little potentially is them content their to argue them reasons be to try fact more do one able unit of increase. of the

when continues and to do well business retail manufacturers de-content put and then of inside we Our want to different things accessorize units.

every If and manufacturers history best did when you the you of to unit. it the look didn't back go single the at thing add Camping World,

World or tariff when bit regard. Camping of see have little up issues being in pricing a or manufacturers issues, So, ends a issues either we content that retail benefactor

Operator

with Our Stember question MKM. Scott comes from next ROTH

Scott Stember

Marcus, that you can in when expect you explosive the just EBITDA first quarter? said clarify you growth

Marcus Lemonis

sure I'm I me you Do for you? understand that not want your question. to define

Scott Stember

Yes.

Just sense at of alsoâ€¦ should looking give us we and be a what

Marcus Lemonis

Xx, $X to I word. We guidance. number. I'm expecting provide Xx put think, don't we, And table. that And intentional year, less on million very the than X a only Last no is explosive on

Scott Stember

EBITDA XXX Is provide of you the at XXX points us anything to some for leverage. full looking basis there the for SG&A just then just can guideposts And year?

Marcus Lemonis

XX% and calculus the where to to You're We margins but used, on to better, margin us if XX.X% we for feel XX% to to growth, EBITDA. new, used guidepost XX% around on margins growth, XX.X% points XXX low take will XX% really at you that, new good on XX%, at things for XXX new, a that call getting that expectation, on SG&A to it, gets that Street based is. we forecast provided those expectation provide give you single looking guidance, SG&A digit I the of don't and reaffirm us on used

what So, we reaffirming guideposts there our in seeing we're are are that out consistent.

Scott Stember

what It looking you just work, the benefiting just the, sounds work seeing trade-ins. running work maybe and service. what for. pure the up I last about on question like then was there? from at exactly definitely I pay And like you're It modestly positive. talk it least on the customer refit and parts That's Can looks guess, was

Marcus Lemonis

in drive we're use consumers it and needed 'XX. them the as any not expectation that That's March have an a in in color stick we expecting we good customer year. But days part the as the to this good have measurement The nothing And was of a we want wrapper. we into on early be really that. we stores a big them northern until [indiscernible] pretty country. are RVs work be helpful. that have to April we provide more would have, and because don't pay And storage the get But on expecting they and get their because to are we obviously year to better that frequently people

Operator

comes next question Jordan Our from Jefferies. Bret with

Patrick Buckley

Bret. for on Buckley Patrick is This

lot uncertainty As we 'XX drive significant outlook, this do I cuts a rates guess, need rate look down and around recovery. at Still the industry of year. to come a

specifically what guess backdrop maybe or the for industry the as either see you I optimal do more So, guys macro you for guys?

Marcus Lemonis

Well, I XXX,XXX. think ultimately of number there's north X factors drive the that

themselves today, and units important affordability most And storm. We XXX,XXX the place. flying units interest for rates price the seen create years. of just thing in people dollars that discretionary the are with the know the perfect is haven't around the and in of several the that We know not combination all price we that over

interest that need I on And our see and correlation Fed reduce, stabilize rates think seen, that allow treasury direct the come between to well. which side, that and so, the would rate Most which rates see. stabilization some the retail as have need pricing people call see consumers a there's down to it, believe we'll to, would and we we'll continue XX-year normalize, to we

as are reminder, our of derivative finance the rates Just in the consumers' a treasury. office XX-year interest a

So, getting some stabilization that be around helpful. will

could points there not as we we're a see to awkwardness as of allows dropped be unless back over to all today. another a company, actually because we much to we more, there's far point whole the little XXX juice more yet XX lower. a would it. I really that far mind perspective get as used bit But that we rates our more capitalize breaking But would not. reduction of that the a this it need It From at like around start on think I us more. XXX $XXX,XXX, to a to little if bit side. it's don't least basis would

Patrick Buckley

And guess, you guess, M&A positive. more last throughout how Or to I fairly the cycle trends are year? higher? multiples the like the strong start then of I it both those sounds tick seeing is pipeline changing still can long despite

Marcus Lemonis

in their estate really you based if XX-something this, are what There a between facility years just the I business capital, the want But remarks same. to we though. one the we inventory the our and reasons what needing reiterate what to looks pay the out own balance like, much own been and how for we essentially own they And raised carry, clear, of strong. whatever on much are sheet down Over not it's the how free super-premium we clear, and the have on a and balance comes are for free it we of doing cash really, out really inventory same. cash are cash in, exceptions, to free thing, sheet, what clear, When course how Tom's there. commitment brands parts to outliers leave. multiples went flow get we is made much where And multiples used we've listen like. real most variety the dealer our market the out that a the part, the looks to

more debt that's that is, of take Our focus continue it at out and our unit where do rooftop because not our right the get we to operating The paying the in our pitch, We to combination don't like in for leverage. ultimately back our #X of to putting is like delevering us all it's are through of #X balance line. earnings. XXXX of leverage of does we the drives by income part end sales focus balance and down getting last our and our today did of or our what by while a end cash leverage going we cash the goal the leverage we're the focus, to and a sheet, not down compromise room and is keeping net and more bring take period year, NOI, stores, do is now our existing the risks of any business, per that need what in of sales driving story, unlocking any will reduction any material to going to debt the chances end a on lot on sheet, the assets that of of

Operator

Ryan next [Operator Our comes with Brinkman JPMorgan. Instructions] from question

Ryan Brinkman

the the you you're on of press release average? of Maybe discussed the benefit to they leverage? quickly as the margin as EBITDA near acquired even could looking the the And over last medium regarding about stores lift work should raise the we in and the could leverage the acquisitions impact at M&A how to and you close from EBITDA strategy the the you corporate week locations, term term it how that would today's think on call, over say

Marcus Lemonis

used put ones a return in our we're on how to single closing we deliver learn a we our to EBITDA Lazydays, that real transaction the install process, inventory ground, distressed have that take shareholders. the we continued expect and like results asset buying our put business. unnecessary costs, eradicate and to on from cash accretive XXXX, being the service process Every and to F&I the in place to believe And positive are we parts

less Just than as a book value reminder, we for paid really that. essentially

investment that to on So, transactions. of high, those we have expectation explosive high see returns we're in degree going a

Ryan Brinkman

March have prices that so a installed degree the expect U.S.-built in market the sense impact you on aluminum vehicle their or as potential clarify referenced the that could what of for pass be the tariffs. in maybe you impact don't maybe from or expect and meant aluminum content steel think? are, and on RV margin? OEMs But that maybe you U.S. here on the be Mexico there looking Most Canada all U.S. or Indiana to industry what RVs products, impact to given assembled increases, add for demand? looking What benefit the a engineer separate X of you I what soon on curious value elsewhere maybe impact could RV same are potentially. parts Mexico present relatedly, as new light I'm on and for the on steel industry. think, And tariffs from see that come would not from and even could tariffs. imported you the as that do by you RV Can Canada do XX% products if impact your nearly prices RVs like-for-like already used price to some And to headwind announced the tariffs modest

Thomas Kirn

supplier, their impending And margins pressure of advantage now, the their in prices I any through raise is and ability. this I'm the here most frame months of anticipation different X from a the as going somewhat know need Well, in obviously, is the that protect under price so know U.S. And that tariff of will and if you, increase don't sources be in increases. OEMs, to who have you And to last versus us those the But manufacturer, to price because when we incur the in of much somewhat parts these extent a some of side, to these on for hazy good from they're it's actually price ways, the exactly aluminum news OEM's kind, to perspective, opportunity terms of been To gross steel different locking margin what sources I If in they're any yes, from raise extent, over different for But primary which increases increases overseas. on similarly along a they of couple would as incurring would them lot the Lippert, price if to nebulous there's market. those today in a sort knows, their of of mean, they're prices even look they've they perhaps profiles, best sourcing products just passing years. and pieces futures OEMs. supplier they take imposing

Matt Wagner

level Most tariffs field, playing would to apply make operating a consistently. all that we're also assume everybody final that on one on topic. me and Let this comment people

RVs a not not price field. Our We as for the on do level buy everybody else. company playing same does operate

We cash have and a else, not fight. more fair than everybody is it

different to the a be used do, to everybody our else of and they're volume pricing a manufacturing we level problem, we'll tariffs competitive contract buy a if that on do, than So, for continue we tend anybody everybody problem that ability the on else, based enjoy but advantage based we always more maintain everybody, over to a on based than else.

more. stand And of so crowd only that we environment kind in advantage works a rigorous out even our because in can

Marcus Lemonis

much yield The that particular. used aggressively marketplace represent and out environment and to new enable used that your more truly being procure substantial. be going greatest stabilization would used within is and the to that more spread Where the more us because used go between in

Operator

follow-up question a There's from with Citi. Hardiman James

James Hardiman

point Just, of clarification. Matt, a

think we about to SG&A that as talked does way you quarter. basis I the XXXX, claims that? that numbers that think XXX could you about point in Any XXX higher normalize? quantify insurance improvement those that affecting fourth then And number in assume

Matt Wagner

in would quantified a hit about And was we something expect quarter the that is that James, It that year-over-year. yes, to million normalize. we of release. the $X in

Marcus Lemonis

XXX if it our our just that to marketing that efficiency, in while on achievement XXX will taking been execute to continue the that's we we balance instituted in starting basis never January, tightening us different parts to business down. in plan company pleasant of labor from and then off had that force see on is our of XXX to it's and points, away and the or And a XXX anything a really thing things say, reduction of

points to to basis achieve come We XXX high are going hell water. that XXX or

James Hardiman

of about idio Or how story that's more an should Is the that? it put high of it Maybe about don't words opportunity then in that mouth, accurate an like talk or I the sort in your water, And want Marcus, confident lot RV that speaking but more used seems think we -- versus new. story, hell seems in characterization? to a that. self-help of XXXX you're

Marcus Lemonis

we and months February it January and We January months. last to And little expect January started the XXXX bought and continue. spent month more the we had for that a and ramp of month really February. the up in to those of bought of procurement November and in lighter in then cranked in getting RVs than ready ever We XX December respective

returns we increases think shareholders' to solid now in we a we our the decisions EBITDA. that and we that the I where apologize leverage of we performance that at to know our so so and and is path reason And path getting lot a profit good money, it have about us. is laser-focused to deliver year. be outsized revenue the last least we for unacceptable SG&A that are and it outsized level our to It money. used XXXX, to an that, obligation we was earnings know missed we acceptable our an our primarily and more with that But back have the is gross of needs our reason feel that is shareholders' our don't making lot in of

Okay.

last our that's think I question.

thank So, you much very for joining.

in our to forward and our care. be to May. delivering continue business We look X Take enthused quarter about results

Operator

Thank for presentation. conference. you attending the today's concludes This

may disconnect. You now

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