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Camping World Holdings(CWH) - 2019 Q2 - Quarterly Report
2019-08-09 20:03
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____________ to _______________ Commission file number: 001-37908 CAMPING WORLD HOLDINGS, INC. (Exact name of registrant as specified in its charter) D ...
Camping World Holdings(CWH) - 2019 Q2 - Earnings Call Transcript
2019-08-08 02:46
Financial Data and Key Metrics Changes - The company reported record revenue of approximately $1.5 billion for Q2 2019, up 2% from the previous year [27] - Adjusted EBITDA was nearly $100 million, down from $138 million a year ago [27] - Gross profit was $410 million, a decrease of 0.6% from $412 million in the previous year, with a gross margin of 27.8%, down from 28.6% [27][28] - SG&A expenses increased by 7.2%, primarily due to higher variable selling expenses and increased advertising costs [29] Business Line Data and Key Metrics Changes - The Good Sam services and plans segment revenue increased by 5.6% to $45 million, with gross profit of $26 million [30] - RV and Outdoor Retail segment revenue was $1.43 billion, up 2.2% from just under $1.4 billion last year, with gross profit of $384 million, down 1% [31][33] - The company ended the quarter with 5.25 million active customers, a 26% increase year-over-year [10] Market Data and Key Metrics Changes - The RV industry experienced a decline in manufacturer shipments and retail registrations, leading to increased promotional activity and margin compression [8][9] - Same-store sales for new and used RVs were down approximately 7% for the quarter [48] Company Strategy and Development Direction - The company aims to operate as an omni-channel RV and outdoor company, focusing on core RV products and services while expanding into curated outdoor products [14] - Plans to liquidate non-RV inventory and reinvest in higher-margin products, technology, and debt reduction [15][69] - The company is focused on improving customer service and addressing quality issues that arose during previous growth periods [21][22] Management's Comments on Operating Environment and Future Outlook - Management anticipates that the current market conditions will continue, with a revenue projection of approximately $5 billion for 2019 and adjusted EBITDA guidance around the mid-to-low $200 million range [46] - The company believes that the softness in the RV market is typically short-term and is focused on maintaining strong transaction counts and inventory turns [41][44] Other Important Information - The company has reduced its inventory by $75 million, or 4.6%, during the quarter [34] - The company plans to continue investing in the used RV category, which has shown strong demand and better inventory turns compared to new RVs [19] Q&A Session Summary Question: Can you discuss the sales trends during the quarter and what you are seeing in July and August? - Overall sales remained decent, with same-store sales down just under 7% for the quarter, while new RV sales were down nearly 18% [48][49] Question: How long do you think the downturn might last? - Historically, downturns last 12 to 18 months, and the company is focused on right-sizing inventory and SG&A [51][53] Question: How are Gander Outdoors stores performing? - Locations selling RVs are performing well, and the company is analyzing which non-RV locations to consolidate or exit [57][59] Question: What is the plan for reducing non-RV inventory? - The company plans to liquidate $50 million to $60 million of non-RV inventory to reinvest in higher-margin categories [69][88] Question: How is the company addressing cost structure optimization? - The company has made progress in reducing SG&A and is focused on ensuring the right human capital is in place [76][78] Question: What is the outlook for free cash flow? - The company expects reasonably healthy pre-planned cash flow for the year despite margin compression [103] Question: How is the company accessing used RV inventory? - The company utilizes a proprietary system to aggregate trade values and has been successful in growing its consignment business [110][112]
Camping World Holdings(CWH) - 2019 Q1 - Quarterly Report
2019-05-10 20:05
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2019 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____________ to _______________ Commission file number: 001-37908 CAMPING WORLD HOLDINGS, INC. (Exact name of registrant as specified in its chart ...
Camping World Holdings(CWH) - 2019 Q1 - Earnings Call Transcript
2019-05-09 06:11
Camping World Holdings (NYSE:CWH) Q1 2019 Earnings Conference Call May 8, 2019 4:30 PM ET Company Participants Marcus Lemonis - Chairman & CEO Brent Moody - President Melvin Flanigan - CFO Conference Call Participants Rick Nelson - Stephens Craig Kennison - Baird Brett Andress - KeyBanc Capital Markets Fred Wightman - Citi Brett Jordan - Jefferies Tim Conder - Wells Fargo Securities Operator Good afternoon, and welcome to Camping World Holdings Conference Call to discuss Financial Results for the First Quar ...
Camping World Holdings(CWH) - 2018 Q4 - Annual Report
2019-03-14 22:13
[Part I](index=7&type=section&id=Part%20I) [Business](index=7&type=section&id=Item%201.%20Business) Camping World Holdings is a leading U.S. RV and outdoor lifestyle retailer serving 5.1 million active customers through 227 locations across three segments - The company operates through three business segments: Consumer Services and Plans, Dealership, and Retail, utilizing its iconic brands Good Sam, Camping World, and Gander[18](index=18&type=chunk)[20](index=20&type=chunk) - As of December 31, 2018, the company served a base of **5.1 million Active Customers** and operated **227 retail locations** across 36 states[18](index=18&type=chunk)[24](index=24&type=chunk) - The company's growth strategy includes expanding its retail footprint through acquisitions (like Gander Mountain) and greenfield openings, targeted marketing, and cross-selling products to its large customer database of over **29.0 million contacts**[35](index=35&type=chunk)[36](index=36&type=chunk)[39](index=39&type=chunk) [Business Segments](index=13&type=section&id=Item%201.%20Business%23Our%20Business%20Segments) The company operates three segments: Consumer Services and Plans, Dealership, and Retail, offering diverse RV and outdoor lifestyle products and services - The Consumer Services and Plans segment includes offerings such as extended vehicle service contracts, emergency roadside assistance, property and casualty insurance, and membership clubs like the Good Sam Club, which had approximately **2.1 million members** as of December 31, 2018[48](index=48&type=chunk) - The Dealership segment's offerings include new and used vehicles, repair and maintenance services, collision repair, and finance and insurance products, with approximately **71,500 new** and **32,800 used vehicles** sold in 2018[52](index=52&type=chunk)[53](index=53&type=chunk)[54](index=54&type=chunk) - The Retail segment provides a wide array of products including RV supplies, equipment, outdoor gear for camping, hiking, boating, fishing, and hunting, as well as related apparel and footwear[62](index=62&type=chunk)[63](index=63&type=chunk)[65](index=65&type=chunk) [Customers and Markets](index=17&type=section&id=Item%201.%20Business%23Customers%20and%20Markets) The company targets 9 million U.S. RV-owning households and 77 million camping households, benefiting from favorable demographic trends - The estimated number of U.S. households owning an RV is approximately **9 million**, with the company having about **5.1 million Active Customers**[67](index=67&type=chunk) - New RV shipments grew at a compounded annual rate of **9.7%** from 2012 to 2018, although 2018 saw a decline of **4.1%** from the previous year[69](index=69&type=chunk) - The total number of camping households in the U.S. is estimated at **77 million**, with significant growth among younger and more diverse demographics[72](index=72&type=chunk)[73](index=73&type=chunk) [Product Sourcing and Distribution](index=21&type=section&id=Item%201.%20Business%23Product%20Sourcing%20and%20Distribution) The company sources RVs from major manufacturers and accessories from 2,400 vendors, distributing through eight U.S. fulfillment centers - As of December 31, 2018, key new RV suppliers were Thor Industries, Inc. (**73.8%**), Forest River, Inc. (**15.3%**), and Winnebago Industries, Inc. (**5.9%**)[91](index=91&type=chunk) - The company purchased merchandise from approximately **2,400 vendors** for its parts, accessories, and outdoor lifestyle products in 2018, with no single vendor accounting for more than **5%** of total purchases[97](index=97&type=chunk) - The company operates a network of **eight distribution and fulfillment centers** to support its retail, e-commerce, and catalog businesses[99](index=99&type=chunk)[100](index=100&type=chunk) [Seasonality](index=30&type=section&id=Item%201.%20Business%23Seasonality) The company's business is seasonal, with peak RV-related demand in Q2 and Q3, impacting revenue and expenses - Demand for RV products and services typically declines in the winter and is highest in the spring and summer[160](index=160&type=chunk) - Over the last three years, the second and third quarters generated **30.1%** and **28.1%** of annual revenues, respectively[160](index=160&type=chunk) [Risk Factors](index=31&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant business risks including economic sensitivity, financing dependence, manufacturer reliance, and integration challenges, alongside structural and internal control weaknesses [Risks Related to Business](index=31&type=section&id=Item%201A.%20Risk%20Factors%23Risks%20Related%20to%20Our%20Business) Business risks include RV industry cyclicality, financing dependence, reliance on key manufacturers, acquisition integration challenges, and identified material weaknesses in internal controls - The business is highly dependent on the availability of floor plan financing for inventory and consumer financing for customers' purchases[165](index=165&type=chunk)[166](index=166&type=chunk) - Significant reliance on key manufacturers, with Thor Industries, Inc., Forest River, Inc., and Winnebago Industries, Inc. supplying **73.8%**, **15.3%**, and **5.9%** of new RV inventory, respectively, as of year-end 2018[170](index=170&type=chunk) - The integration of Gander Outdoors and Overton's presents risks, including higher-than-expected costs, unfamiliarity with new product lines like firearms, and potential for slower profitability compared to traditional locations[320](index=320&type=chunk)[321](index=321&type=chunk)[322](index=322&type=chunk) - Material weaknesses in internal control over financial reporting were identified, which could have a significant adverse effect on the business and stock price[395](index=395&type=chunk)[398](index=398&type=chunk)[399](index=399&type=chunk) [Risks Relating to Organizational Structure](index=56&type=section&id=Item%201A.%20Risk%20Factors%23Risks%20Relating%20to%20Our%20Organizational%20Structure) Organizational risks stem from Marcus Lemonis's substantial voting control, the company's "controlled company" status, and significant payment obligations under the Tax Receivable Agreement - Marcus Lemonis, through his beneficial ownership, has substantial control, casting up to **52%** of total votes (**47%** via Class B stock and **5%** via Class C stock), influencing nearly all matters requiring stockholder approval[327](index=327&type=chunk) - The company is a "controlled company" under NYSE rules, exempting it from requirements like having a majority of independent directors and fully independent compensation and nominating committees[337](index=337&type=chunk)[338](index=338&type=chunk) - The Tax Receivable Agreement requires the company to make potentially significant cash payments to Continuing Equity Owners, equal to **85%** of certain tax benefits realized, which could be accelerated under certain conditions[343](index=343&type=chunk)[347](index=347&type=chunk)[348](index=348&type=chunk) [Properties](index=69&type=section&id=Item%202.%20Properties) As of December 31, 2018, the company operated 227 mostly leased retail locations across 36 states, supported by corporate offices and eight distribution centers Company Locations as of December 31, 2018 | Location Type | 2018 | 2017 | 2016 | | :--- | :--- | :--- | :--- | | Co-habited Dealership and Retail locations | 126 | 116 | 104 | | Stand-alone Dealership locations | 15 | 8 | 1 | | Stand-alone Retail locations | 86 | 29 | 17 | | **Total locations** | **227** | **153** | **122** | - The company leases substantially all of its operational properties, including **216 of its 227 retail locations** and **seven of its eight distribution centers** as of year-end 2018[255](index=255&type=chunk)[410](index=410&type=chunk) [Legal Proceedings](index=70&type=section&id=Item%203.%20Legal%20Proceedings) The company faces multiple class action and shareholder derivative lawsuits alleging securities law violations and breach of fiduciary duty - The company is a defendant in consolidated putative class action lawsuits (Ronge and Strougo) alleging violations of securities laws based on allegedly misleading statements between March 2017 and August 2018[413](index=413&type=chunk)[415](index=415&type=chunk)[416](index=416&type=chunk) - A separate class action (IUOE Complaint) alleges violations related to the October 2017 secondary offering, and another (Geis Complaint) relates to the October 2016 IPO[417](index=417&type=chunk)[418](index=418&type=chunk) - A shareholder derivative suit (Hunnewell Complaint) was filed in March 2019 alleging breach of fiduciary duty by certain officers and directors[419](index=419&type=chunk) [Part II](index=75&type=section&id=Part%20II) [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=75&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's Class A common stock trades on the NYSE, with a policy of regular quarterly dividends and potential special dividends - The company's Class A common stock began trading on the NYSE under the symbol "CWH" on October 7, 2016[440](index=440&type=chunk) - The company intends to pay a regular quarterly cash dividend of approximately **$0.08 per share** of Class A common stock and may pay special dividends from excess tax distributions[442](index=442&type=chunk)[446](index=446&type=chunk) Dividends Declared per Class A Share | Year | Dividend per Share | | :--- | :--- | | 2018 | $0.61 | | 2017 | $0.74 | | 2016 | $0.08 | [Selected Financial Data](index=77&type=section&id=Item%206.%20Selected%20Financial%20Data) This section summarizes five years of financial data, showing **$4.8 billion** total revenue and **$10.4 million** net income in 2018, impacted by acquisitions and accounting changes Selected Consolidated Financial Data (in thousands) | Metric | FY 2018 | FY 2017 | | :--- | :--- | :--- | | **Total Revenue** | **$4,792,017** | **$4,279,830** | | Gross Profit | $1,362,932 | $1,240,914 | | Operating Income | $201,015 | $355,955 | | Net Income | $65,581 | $230,692 | | Net Income Attributable to CWH | $10,398 | $29,853 | | Adjusted EBITDA | $312,502 | $394,187 | | **Total Assets** | **$2,806,687** | **$2,567,026** | | Total Debt | $1,165,865 | $916,902 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=81&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Total revenue grew to **$4.8 billion** in 2018, but net income declined significantly due to goodwill impairment, increased SG&A, and higher interest expenses [Results of Operations](index=89&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations%23Results%20of%20Operations) Total revenue increased **12.0%** to **$4.8 billion** in 2018, but operating income fell **43.5%** and net income **65.2%** due to impairment and higher expenses Results of Operations Comparison: 2018 vs 2017 (in thousands) | Metric | FY 2018 | FY 2017 | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | $4,792,017 | $4,279,830 | 12.0% | | Gross Profit | $1,362,932 | $1,240,914 | 9.8% | | SG&A Expenses | $1,069,359 | $853,160 | 25.3% | | Goodwill Impairment | $40,046 | $0 | N/A | | Income from Operations | $201,015 | $355,955 | (43.5%) | | Net Income | $65,581 | $230,692 | (71.6%) | - Retail segment revenue surged **65.0%** to **$669.9 million** in 2018, primarily due to the opening of a net **60 Gander Outdoors locations**[534](index=534&type=chunk) - A goodwill impairment charge of **$40.0 million** was recorded in the fourth quarter of 2018 related to the Retail reporting unit, reducing its goodwill to zero[540](index=540&type=chunk) [Non-GAAP Financial Measures](index=103&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations%23Non-GAAP%20Financial%20Measures) Adjusted EBITDA decreased to **$312.5 million** in 2018, primarily due to lower gross profit and significant SG&A expenses from the Gander Outdoors rollout Reconciliation of Net Income to Adjusted EBITDA (in thousands) | Reconciliation Item | FY 2018 | FY 2017 | FY 2016 | | :--- | :--- | :--- | :--- | | **Net income** | **$65,581** | **$230,692** | **$198,476** | | Other interest expense, net | $63,329 | $42,959 | $48,318 | | Depreciation and amortization | $49,322 | $31,545 | $24,695 | | Income tax expense | $30,790 | $154,910 | $5,800 | | **EBITDA** | **$209,022** | **$460,106** | **$277,289** | | Goodwill impairment | $40,046 | $0 | $0 | | Gander Outdoors pre-opening costs | $43,156 | $26,352 | $0 | | Equity-based compensation | $14,088 | $5,109 | $1,597 | | Tax Receivable Agreement liability adj. | $1,324 | ($100,758) | $0 | | Other adjustments | $4,866 | $3,381 | $7,571 | | **Adjusted EBITDA** | **$312,502** | **$394,187** | **$286,467** | [Liquidity and Capital Resources](index=108&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations%23Liquidity%20and%20Capital%20Resources) The company's liquidity is supported by **$136.3 million** in operating cash flow and **$2.6 billion** in credit facilities, with **$583.0 million** working capital - As of December 31, 2018, the company had working capital of **$583.0 million**, including **$138.6 million** in cash and cash equivalents[624](index=624&type=chunk) Key Debt Facilities as of Dec 31, 2018 (in billions) | Facility | Commitment/Size | Outstanding | | :--- | :--- | :--- | | Term Loan Facility | $1.19 | $1.18 | | Floor Plan Facility | $1.415 | $0.886 | Summary of Cash Flows (in millions) | Cash Flow Activity | FY 2018 | FY 2017 | | :--- | :--- | :--- | | Operating Activities | $136.3 | ($16.3) | | Investing Activities | ($292.7) | ($468.5) | | Financing Activities | $70.8 | $594.7 | [Financial Statements and Supplementary Data](index=130&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents audited consolidated financial statements for 2016-2018, including balance sheets, income statements, and cash flows, with detailed notes on accounting changes and material weaknesses Consolidated Balance Sheet Summary (in thousands) | Account | Dec 31, 2018 | Dec 31, 2017 | | :--- | :--- | :--- | | Total Current Assets | $1,888,162 | $1,807,324 | | Total Assets | $2,806,687 | $2,567,026 | | Total Current Liabilities | $1,305,118 | $1,331,134 | | Total Liabilities | $2,773,770 | $2,495,263 | | Total Stockholders' Equity | $32,917 | $71,763 | Consolidated Statement of Income Summary (in thousands) | Account | FY 2018 | FY 2017 | FY 2016 | | :--- | :--- | :--- | :--- | | Total Revenue | $4,792,017 | $4,279,830 | $3,516,307 | | Gross Profit | $1,362,932 | $1,240,914 | $993,733 | | Income from Operations | $201,015 | $355,955 | $276,500 | | Net Income | $65,581 | $230,692 | $198,476 | | Net Income Attributable to CWH | $10,398 | $29,853 | $188,885 | - The financial statements for prior periods were revised to correct for immaterial errors, primarily related to the cancellation reserve for certain finance and insurance products and the calculation of the Tax Receivable Agreement liability[748](index=748&type=chunk) - A goodwill impairment charge of **$40.0 million** was recorded in Q4 2018 for the Retail segment, reducing its goodwill balance to zero due to a decline in expected future cash flows[826](index=826&type=chunk) [Controls and Procedures](index=198&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded disclosure controls were ineffective due to material weaknesses in internal control over financial reporting, leading to an adverse auditor opinion - Management concluded that disclosure controls and procedures were not effective as of December 31, 2018[1030](index=1030&type=chunk) - Material weaknesses were identified related to: 1) Insufficient accounting resources for proper review of valuations and estimates, and 2) Ineffective design and operation of controls over the accounting for income taxes[1037](index=1037&type=chunk)[1038](index=1038&type=chunk)[1056](index=1056&type=chunk)[1057](index=1057&type=chunk) - The independent registered public accounting firm, Deloitte & Touche LLP, issued an adverse opinion on the company's internal control over financial reporting as of December 31, 2018[1039](index=1039&type=chunk)[1048](index=1048&type=chunk) - A remediation plan is underway, focusing on assessing and hiring additional accounting resources and improving the design of controls around income tax accounting[1040](index=1040&type=chunk)[1043](index=1043&type=chunk)[1044](index=1044&type=chunk) [Part III](index=204&type=section&id=Part%20III) [Directors, Executive Officers and Corporate Governance](index=204&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information on directors, executive officers, and corporate governance is incorporated by reference from the 2019 Proxy Statement - The information required by this item is incorporated by reference from the registrant's Proxy Statement for its 2019 Annual Meeting of Shareholders[1063](index=1063&type=chunk) [Executive Compensation](index=204&type=section&id=Item%2011.%20Executive%20Compensation) Executive and director compensation details are incorporated by reference from the 2019 Proxy Statement - The information required by this item is incorporated by reference from the registrant's Proxy Statement for its 2019 Annual Meeting of Shareholders[1064](index=1064&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=204&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) This section details equity compensation plans and security ownership, with further information incorporated from the 2019 Proxy Statement Equity Compensation Plan Information as of December 31, 2018 | Plan Category | Securities to be Issued Upon Exercise | Weighted-Average Exercise Price | Securities Remaining for Future Issuance | | :--- | :--- | :--- | :--- | | Equity compensation plans approved by security holders | 2,311,624 | $21.85 | 11,964,302 | | Equity compensation plans not approved by security holders | — | — | — | | **Total** | **2,311,624** | **$21.85** | **11,964,302** | - Other information regarding security ownership is incorporated by reference from the registrant's Proxy Statement for its 2019 Annual Meeting of Shareholders[1066](index=1066&type=chunk) [Part IV](index=206&type=section&id=Part%20IV) [Exhibits, Financial Statement Schedules](index=206&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists all financial statements, schedules, and exhibits included in the Annual Report, with details on key corporate documents - The report includes financial statements as listed in Item 8[1072](index=1072&type=chunk) - Financial statement schedules filed include Schedule I (Condensed Financial Information of Registrant) and Schedule II (Valuation and Qualifying Accounts)[1073](index=1073&type=chunk)
Camping World Holdings(CWH) - 2018 Q4 - Earnings Call Transcript
2019-03-08 12:16
Financial Data and Key Metrics Changes - The company generated $4.8 billion in revenue for 2018, an increase of $512 million or 12% from the previous year [8][15] - Consolidated gross profit was $1.4 billion, up 9.8% from $1.2 billion last year, with a gross margin of 28.4% compared to 29% the previous year [15] - Adjusted EBITDA was $313 million, down 20.7% from the previous year [15][21] - For Q4 2018, total revenue was $982 million, up 10.6% from $888 million a year ago, with a gross profit of $276 million, up 3.8% [17] Business Line Data and Key Metrics Changes - Good Sam Consumer Services and Plans segment revenues were $214 million, up 9.4% from $196 million last year, with a gross profit margin of 59.5% [16] - RV dealership segment revenues grew 6.2% to $3.9 billion, with gross profit increasing 5.6% to $1 billion [16] - RV and outdoor retail segment revenue increased 65% to $670 million, driven by new Gander openings, with gross profit at $225 million [16] Market Data and Key Metrics Changes - The company ended the year with RV in-stock inventory down 19% on a per dealership basis and more than $120 million on a same-store basis [9][18] - Active RV and outdoor consumers increased to over 5.1 million, up from 3.6 million in 2017, with Good Sam Club membership rising to 2.1 million [10] Company Strategy and Development Direction - The company aims to expand its RV and outdoor footprint through dealership acquisitions and new locations, while enhancing product and service offerings [26] - The focus is on building Gander RV into a prominent brand and leveraging digital platforms to attract customers [26][27] - Management changes were made to streamline operations and enhance focus on strategic initiatives [27] Management's Comments on Operating Environment and Future Outlook - The management acknowledged challenges in the industry, with expectations for total revenues in 2019 ranging from $4.9 billion to $5.1 billion and adjusted EBITDA between $320 million and $340 million [24] - There is a cautious outlook for the first quarter of 2019 due to uncertainties from the previous year [24] Other Important Information - The company identified a material weakness in internal controls related to technical resources and plans to add finance and accounting personnel [13][14] - The company closed several underperforming locations and consolidated distribution centers to improve efficiency [37] Q&A Session Summary Question: Sales trends during the quarter and expectations for 2019 - The fourth quarter saw a rough October, a mild bounce in November, and a significant decline in December, with softening trends continuing into 2019 [34] Question: Inventory levels and channel inventory cleanup - The company is comfortable with current inventory levels and is aggressively pursuing used inventory to mitigate softness in new sales [35] Question: Gander Outdoors performance and losses - Gander Outdoors had significant losses, but the company is optimistic about future performance as more locations begin selling RVs [38] Question: EBITDA guidance and costs related to Gander - The 2019 EBITDA guidance includes all operating expenses with no add-backs for Gander [43] Question: Expectations for gross margin and SG&A - The company expects margins to improve in 2019 due to better inventory management and seasonal preparations [44] Question: Capital allocation and potential buybacks - The focus for 2019 is on reducing debt and pursuing opportunistic acquisitions rather than stock buybacks [47] Question: Retail gross margin performance in Q4 - Retail margins were impacted by a higher percentage of outdoor products sold and aggressive inventory liquidation [60] Question: Factors driving lower retail demand for new RVs - The company noted that 2017 was a record year, and there is a need to attract new customers to the RV market [66] Question: Same-store unit sales expectations - The company anticipates a decline of 3% to 4% in same-store unit sales for 2019 [55]