Camping World Holdings, Inc. Reports First Quarter 2024 Results, Same Store New Vehicle Unit Volume Increases 16%, Bucking Industry Trends and Driving Record New Unit Market Share

May 1, 2024

LINCOLNSHIRE, Ill.–(BUSINESS WIRE)–Camping World Holdings, Inc. (NYSE: CWH) (the “Company” or “CWH”), America’s Recreation Dealer, today reported results for the first quarter ended March 31, 2024.

Marcus Lemonis, Chairman and Chief Executive Officer of Camping World Holdings, Inc. stated, “Our intentional efforts to drive down invoice pricing and widen the consumer affordability funnel resulted in our new unit sales meaningfully outpacing broader RV industry trends. We drove record new unit market share for January and February. Our same store new vehicle unit volume increased double-digits in the quarter, with momentum continuing through April.”

Matt Wagner, Chief Operating Officer of Camping World Holdings, Inc. commented, “We have been successful in rebalancing our used inventory position and now that market pricing has stabilized, we intend to reinvest in building our stocking levels in a disciplined manner over the coming months. We continue to expect our used business to improve as we move through the balance of the year.”

Mr. Lemonis concluded, “With significant new unit volume momentum and a dominant inventory position, we believe we have laid the groundwork for improving fundamentals going forward. Our team remains laser focused on achieving our unit volume, market share, and earnings growth goals for 2024, while continuing our march to 320 locations by 2028.”

First Quarter-over-Quarter Operating Highlights

The total number of our store locations was 215 as of March 31, 2024, an increase of 20 store locations from March 31, 2023, or 10.3%, with a net 13 store locations opened during the first quarter.
Revenue was $1.4 billion for the first quarter, a decrease of $122.9 million, or 8.3%.
New vehicle revenue was $656.1 million for the first quarter, an increase of $9.3 million, or 1.4%, and new vehicle unit sales were 16,882 units, an increase of 2,970 units, or 21.3%.
Used vehicle revenue was $337.7 million for the first quarter, a decrease of $107.1 million, or 24.1%, and used vehicle unit sales were 10,694 units, a decrease of 1,738 units, or 14.0%.
Average selling price of new vehicles declined 16.4% during the first quarter driven primarily by lower cost of 2024 model year travel trailers, discounting of pre-2024 model year new vehicles, and a mix shift towards more affordable travel trailers.
Average selling price of used vehicles declined 11.7% during the first quarter due to discounting of used vehicles in response to declines in new vehicle prices to maintain used vehicles as a lower cost alternative to new vehicles.
Same store new vehicle unit sales increased 15.5% for the first quarter and same store used vehicle unit sales decreased 17.3%.
Products, services and other revenue was $177.9 million, a decline of $29.8 million, or 14.3%, driven largely by a reduction in sales activity resulting from our Active Sports Restructuring and fewer used vehicles sold led to a decline in retail product attachment to vehicle sales.
Gross profit was $402.4 million, a decrease of $38.6 million, or 8.8%. Total gross margin was 29.5%, a decrease of 16 basis points. These decreases were driven by lower average cost and average selling price of model year 2024 new vehicles, which impacted used vehicles by (i) requiring the reduction in the used vehicle average selling price and (ii) lower used inventory levels from slowed procurement of used vehicles to allow RV owner pricing expectations to adjust as a result of model year 2024 pricing declines.
Selling, general and administrative expenses were $371.5 million, an increase of $5.7 million, or 1.6%, primarily as a result of additional advertising expenses and professional fees and services, partially offset by reduced employee compensation costs, which was accomplished despite the 10.3% increase in store locations noted above.
Floor plan interest expense was $27.9 million, an increase of $7.1 million, or 34.0%, and other interest expense, net was $36.1 million, an increase of $5.0 million, or 16.0%. These increases were primarily as a result of the rise in interest rates and higher principal balances.
Net loss was $50.8 million for the first quarter of 2024, a change of $55.7 million from net income of $4.9 million for the first quarter of 2023.
Diluted loss per share of Class A common stock was $(0.51) for the first quarter of 2024 versus diluted earnings per share of Class A common stock of $0.05 for the first quarter of 2023. Adjusted loss per share – diluted⁽¹⁾ of Class A common stock was $(0.40) for the first quarter of 2024 versus adjusted earnings per share – diluted⁽¹⁾of Class A common stock of $0.14 for the first quarter of 2023.
Adjusted EBITDA⁽¹⁾ was $8.2 million, a decrease of $52.6 million, or 86.5%, primarily due to $38.6 million decrease in gross profit, the $7.1 million increase in floor plan interest and the $5.7 million increase in selling, general and administrative expenses⁽²⁾.

(1)		Adjusted (loss) earnings per share – diluted and adjusted EBITDA are non-GAAP measures. For a reconciliation of these non-GAAP measures to the most directly comparable GAAP measures, see the “Non-GAAP Financial Measures” section later in this press release.
(2)		The $5.7 million increase in selling, general, and administrative expenses is inclusive of a $1.1 million decrease in equity-based compensation. Equity-based compensation is excluded from the calculation of Adjusted EBITDA (see the “Non-GAAP Financial Measures” section later in this press release).

Earnings Conference Call and Webcast Information

A conference call to discuss the Company’s first quarter 2024 financial results is scheduled for May 2, 2024, at 7:30 am Central Time. Investors and analysts can participate on the conference call by dialing 1-877-407-9039 (international callers please dial 1-201-689-8470) and using conference ID# 13745507. Interested parties can also listen to a live webcast or replay of the conference call by logging on to the Investor Relations section on the Company’s website at http://investor.campingworld.com. The replay of the conference call webcast will be available on the investor relations website for approximately 90 days.

Presentation

This press release presents historical results for the periods presented for the Company and its subsidiaries, which are presented in accordance with accounting principles generally accepted in the United States (“GAAP”), unless noted as a non-GAAP financial measure. The Company’s initial public offering (“IPO”) and related reorganization transactions (“Reorganization Transactions”) that occurred on October 6, 2016 resulted in the Company as the sole managing member of CWGS Enterprises, LLC (“CWGS, LLC”), with sole voting power in and control of the management of CWGS, LLC. The Company’s position as sole managing member of CWGS, LLC includes periods where the Company has held a minority economic interest in CWGS, LLC. As of March 31, 2024, the Company owned 53.0% of CWGS, LLC. Accordingly, the Company consolidates the financial results of CWGS, LLC and reports a non-controlling interest in its consolidated financial statements. Unless otherwise indicated, all financial comparisons in this press release compare our financial results for the first quarter ended March 31, 2024 to our financial results from the first quarter ended March 31, 2023.

About Camping World Holdings, Inc.

Camping World Holdings, Inc., headquartered in Lincolnshire, IL, (together with its subsidiaries) is the world’s largest retailer of RVs and related products and services. Our vision is to build a long-term legacy business that makes RVing fun and easy. Our Camping World and Good Sam brands have been serving RV consumers since 1966. We strive to build long-term value for our customers, employees, and shareholders by combining a unique and comprehensive assortment of RV products and services with a national network of RV dealerships, service centers and customer support centers along with the industry’s most extensive online presence and a highly trained and knowledgeable team of employees serving our customers, the RV lifestyle, and the communities in which we operate. We also believe that our Good Sam organization and family of programs and services uniquely enable us to connect with our customers as stewards of the RV enthusiast community and the RV lifestyle. With RV sales and service locations in 43 states, Camping World has grown to become the prime destination for everything RV. For more information, visit www.CampingWorld.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements about expectations regarding new and used vehicle unit volume trends, our ability to deliver unit volume, our ability to deliver increased market share, our intention to reinvest in building our stocking levels, our expectations regarding improvements in our business, macroeconomic and industry trends, business plans and goals, including our goal to have 320 locations by 2028, and future financial results, including our ability to achieve earnings growth, in each case on any specific timeline or at all. These forward-looking statements are based on management’s current expectations.

These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, the following: general economic conditions, including inflation and interest rates; the availability of financing to us and our customers; fuel shortages, high prices for fuel or changes in energy sources; the success of our manufacturers; changes in consumer preferences; risks related to our strategic review of our Good Sam business; competition in our industry; risks related to acquisitions, new store openings and expansion into new markets; our failure to maintain the strength and value of our brands; our ability to manage our inventory; fluctuations in our same store sales; the cyclical and seasonal nature of our business; our dependence on the availability of adequate capital and risks related to our debt; risks related to COVID-19; our ability to execute and achieve the expected benefits of our cost cutting or restructuring initiatives; our reliance on our fulfillment and distribution centers; natural disasters, including epidemic outbreaks; our dependence on our relationships with third party suppliers and lending institutions; risks associated with selling goods manufactured abroad; our ability to retain senior executives and attract and retain other qualified employees; risks associated with leasing substantial amounts of space; risks associated with our private brand offerings; we may incur asset impairment charges for goodwill, intangible assets or other long-lived assets; tax risks; our private brand offerings exposing us to various risks; regulatory risks; data privacy and cybersecurity risks; risks related to our intellectual property; the impact of ongoing or future lawsuits against us and certain of our officers and directors; risks related to climate change and other environmental, social and governance matters; and risks related to our organizational structure.

These and other important factors discussed under the caption “Risk Factors” in our Annual Report on Form 10‑K for the year ended December 31, 2023 and our other reports filed with the SEC could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management’s estimates as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change, except as required under applicable law. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release.

Future declarations of quarterly dividends, if any, are subject to the determination and discretion of the Company’s Board of Directors based on its consideration of various factors, including the Company’s results of operations, financial condition, level of indebtedness, anticipated capital requirements, contractual restrictions, restrictions in its debt agreements, restrictions under applicable law, receipt of excess tax distributions from CWGS Enterprises, LLC, its business prospects and other factors that the Company’s Board of Directors may deem relevant.

We intend to use our official Facebook, X (formerly known as Twitter), and Instagram accounts, each at the handle @CampingWorld, as well as the investor page of our website, investor.campingworld.com, as a distribution channel of material information about the Company and for complying with our disclosure obligations under Regulation FD. The information we post through these social media channels and on our investor webpage may be deemed material. Accordingly, investors should subscribe to these accounts and our investor alerts, in addition to following our press releases, SEC filings, public conference calls and webcasts. These social media channels may be updated from time to time.

Camping World Holdings, Inc. and Subsidiaries
Consolidated Statements of Operations (unaudited) (In Thousands Except Per Share Amounts)

	Three Months Ended
	March 31,
	2024			2023
Revenue:
Good Sam Services and Plans	$	45,681		$	46,367
RV and Outdoor Retail
New vehicles		656,086			646,752
Used vehicles		337,685			444,746
Products, service and other		177,894			207,661
Finance and insurance, net		135,454			129,772
Good Sam Club		11,217			11,582
Subtotal		1,318,336			1,440,513
Total revenue		1,364,017			1,486,880
Costs applicable to revenue (exclusive of depreciation and amortization shown separately below):
Good Sam Services and Plans		15,183			16,152
RV and Outdoor Retail
New vehicles		565,039			557,542
Used vehicles		278,533			341,947
Products, service and other		101,675			129,018
Good Sam Club		1,190			1,201
Subtotal		946,437			1,029,708
Total costs applicable to revenue		961,620			1,045,860

Gross profit (exclusive of depreciation and amortization shown separately below):
Good Sam Services and Plans		30,498			30,215
RV and Outdoor Retail
New vehicles		91,047			89,210
Used vehicles		59,152			102,799
Products, service and other		76,219			78,643
Finance and insurance, net		135,454			129,772
Good Sam Club		10,027			10,381
Subtotal		371,899			410,805
Total gross profit		402,397			441,020

Operating expenses:
Selling, general, and administrative		371,473			365,726
Depreciation and amortization		19,290			14,637
Long-lived asset impairment		5,827			7,045
Loss (gain) on sale or disposal of assets		1,585			(4,987	)
Total operating expenses		398,175			382,421
Income from operations		4,222			58,599
Other expense
Floor plan interest expense		(27,882	)		(20,810	)
Other interest expense, net		(36,094	)		(31,113	)
Other expense, net		(94	)		(1,500	)
Total other expense		(64,070	)		(53,423	)
(Loss) income before income taxes		(59,848	)		5,176
Income tax benefit (expense)		9,042			(273	)
Net (loss) income		(50,806	)		4,903
Less: net (loss) income attributable to non-controlling interests		28,499			(1,734	)
Net (loss) income attributable to Camping World Holdings, Inc.	$	(22,307	)	$	3,169

(Loss) earnings per share of Class A common stock:
Basic	$	(0.50	)	$	0.07
Diluted	$	(0.51	)	$	0.05
Weighted average shares of Class A common stock outstanding:
Basic		45,047			44,455
Diluted		85,092			84,717

Camping World Holdings, Inc. and Subsidiaries
Supplemental Data (unaudited)

	Three Months Ended March 31,						Increase				Percent
	2024			2023			(decrease)				Change
Unit sales
New vehicles		16,882			13,912			2,970				21.3	%
Used vehicles		10,694			12,432			(1,738	)			(14.0	%)
Total		27,576			26,344			1,232				4.7	%

Average selling price
New vehicles	$	38,863		$	46,489		$	(7,626	)			(16.4	%)
Used vehicles		31,577			35,774			(4,197	)			(11.7	%)

Same store unit sales⁽¹⁾
New vehicles		15,623			13,526			2,097				15.5	%
Used vehicles		10,030			12,126			(2,096	)			(17.3	%)
Total		25,653			25,652			1				0.0	%

Same store revenue⁽¹⁾ ($ in 000s)
New vehicles	$	606,808		$	630,290		$	(23,482	)			(3.7	%)
Used vehicles		312,410			434,471			(122,061	)			(28.1	%)
Products, service and other		144,382			158,467			(14,085	)			(8.9	%)
Finance and insurance, net		127,064			126,830			234				0.2	%
Total	$	1,190,664		$	1,350,058		$	(159,394	)			(11.8	%)

Average gross profit per unit
New vehicles	$	5,393		$	6,412		$	(1,019	)			(15.9	%)
Used vehicles		5,531			8,269			(2,738	)			(33.1	%)
Finance and insurance, net per vehicle unit		4,912			4,926			(14	)			(0.3	%)
Total vehicle front-end yield⁽²⁾		10,359			12,215			(1,856	)			(15.2	%)

Gross margin
Good Sam Services and Plans		66.8	%		65.2	%		161		bps
New vehicles		13.9	%		13.8	%		8		bps
Used vehicles		17.5	%		23.1	%		(560	)	bps
Products, service and other		42.8	%		37.9	%		498		bps
Finance and insurance, net		100.0	%		100.0	%		unch.
Good Sam Club		89.4	%		89.6	%		(24	)	bps
Subtotal RV and Outdoor Retail		28.2	%		28.5	%		(31	)	bps
Total gross margin		29.5	%		29.7	%		(16	)	bps

RV and Outdoor Retail inventories ($ in 000s)
New vehicles	$	1,469,193		$	1,219,889		$	249,304				20.4	%
Used vehicles		389,810			510,689			(120,879	)			(23.7	%)
Products, parts, accessories and misc.		218,197			248,998			(30,801	)			(12.4	%)
Total RV and Outdoor Retail inventories	$	2,077,200		$	1,979,576		$	97,624				4.9	%

Vehicle inventory per location ($ in 000s)
New vehicle inventory per dealer location	$	6,963		$	6,489		$	474				7.3	%
Used vehicle inventory per dealer location		1,847			2,716			(869	)			(32.0	%)

Vehicle inventory turnover⁽³⁾
New vehicle inventory turnover		1.7			1.9			(0.3	)			(13.1	%)
Used vehicle inventory turnover		3.0			3.3			(0.4	)			(10.6	%)

Retail locations
RV dealerships		211			188			23				12.2	%
RV service & retail centers		4			6			(2	)			(33.3	%)
Subtotal		215			194			21				10.8	%
Other retail stores		—			1			(1	)			(100.0	%)
Total		215			195			20				10.3	%

Other data
Active Customers⁽⁴⁾		4,827,623			5,291,750			(464,127	)			(8.8	%)
Good Sam Club members ⁽⁵⁾		1,961,112			2,025,438			(64,326	)			(3.2	%)
Service bays ⁽⁶⁾		2,857			2,682			175				6.5	%
Finance and insurance gross profit as a % of total vehicle revenue		13.6	%		11.9	%		174		bps		n/a
Same store locations		182			n/a			n/a				n/a

unch – unchanged
bps – basis points
n/a – not applicable

⁽¹⁾		Our same store revenue and units calculations for a given period include only those stores that were open both at the end of the corresponding period and at the beginning of the preceding fiscal year.
⁽²⁾		Front end yield is calculated as gross profit from new vehicles, used vehicles and finance and insurance (net), divided by combined new and used vehicle unit sales.
⁽³⁾		Inventory turnover is calculated as vehicle costs applicable to revenue over the last twelve months divided by the average quarterly ending vehicle inventory over the last twelve months.
⁽⁴⁾		An Active Customer is a customer who has transacted with us in any of the eight most recently completed fiscal quarters prior to the date of measurement.
⁽⁵⁾		Excludes Good Sam Club members under the free basic plan, which was introduced in November 2023 and provides for limited participation in the loyalty point program without access to the remaining member benefits.
⁽⁶⁾		A service bay is a fully-constructed bay dedicated to service, installation, and collision offerings.

Camping World Holdings, Inc. and Subsidiaries
Consolidated Balance Sheets (unaudited) (In Thousands Except Per Share Amounts)

	March 31,			December 31,			March 31,
	2024			2023			2023
Assets
Current assets:
Cash and cash equivalents	$	29,718		$	39,647		$	72,828
Contracts in transit		154,231			60,229			104,148
Accounts receivable, net		100,246			128,070			109,105
Inventories		2,077,592			2,042,949			1,980,106
Prepaid expenses and other assets		68,833			48,353			58,761
Assets held for sale		6,276			29,864			13,971
Total current assets		2,436,896			2,349,112			2,338,919

Property and equipment, net		878,956			834,426			751,287
Operating lease assets		768,903			740,052			729,958
Deferred tax assets, net		153,716			157,326			145,413
Intangible assets, net		12,998			13,717			15,381
Goodwill		735,680			711,222			622,545
Other assets		36,013			39,829			27,010
Total assets	$	5,023,162		$	4,845,684		$	4,630,513
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	205,006		$	133,516		$	185,652
Accrued liabilities		148,674			149,096			172,428
Deferred revenues		95,854			92,366			94,166
Current portion of operating lease liabilities		60,663			63,695			61,421
Current portion of finance lease liabilities		19,014			17,133			5,590
Current portion of Tax Receivable Agreement liability		12,943			12,943			10,935
Current portion of long-term debt		25,651			22,121			26,969
Notes payable – floor plan, net		1,414,696			1,371,145			1,042,099
Other current liabilities		72,783			68,536			77,924
Liabilities related to assets held for sale		—			17,288			7,650
Total current liabilities		2,055,284			1,947,839			1,684,834

Operating lease liabilities, net of current portion		796,770			763,958			753,451
Finance lease liabilities, net of current portion		136,284			97,751			100,701
Tax Receivable Agreement liability, net of current portion		149,866			149,866			165,054
Revolving line of credit		31,885			20,885			20,885
Long-term debt, net of current portion		1,545,165			1,498,958			1,525,304
Deferred revenues		65,970			66,780			68,690
Other long-term liabilities		89,528			85,440			85,841
Total liabilities		4,870,752			4,631,477			4,404,760
Commitments and contingencies
Stockholders’ equity:
Preferred stock, par value $0.01 per share – 20,000 shares authorized; none issued and outstanding		—			—			—
Class A common stock, par value $0.01 per share – 250,000 shares authorized; 49,571, 49,571 and 49,571 shares issued, respectively; 45,072, 45,020 and 44,467 shares outstanding, respectively		496			496			496
Class B common stock, par value $0.0001 per share – 75,000 shares authorized; 39,466, 39,466 and 39,466 shares issued, respectively; 39,466, 39,466 and 39,466 shares outstanding, respectively		4			4			4
Class C common stock, par value $0.0001 per share – 0.001 share authorized, issued and outstanding		—			—			—
Additional paid-in capital		98,828			98,280			114,017
Treasury stock, at cost; 4,499, 4,551, and 5,104 shares, respectively		(157,631	)		(159,440	)		(178,832	)
Retained earnings		157,303			185,244			196,409
Total stockholders’ equity attributable to Camping World Holdings, Inc.		99,000			124,584			132,094
Non-controlling interests		53,410			89,623			93,659
Total stockholders’ equity		152,410			214,207			225,753
Total liabilities and stockholders’ equity	$	5,023,162		$	4,845,684		$	4,630,513