Camping World Holdings(CWH)

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Camping World Holdings(CWH) - 2024 Q4 - Annual Report
2025-02-28 21:06
Table of Contents Commission file number: 001-37908 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to_____ CAMPING WORLD HOLDINGS, INC. (Exact name of registrant as specified in its charter) Delaware (State or other ...
3 Reasons Why Growth Investors Shouldn't Overlook Camping World (CWH)
ZACKS· 2025-02-28 18:45
Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market's attention and deliver solid returns. However, it isn't easy to find a great growth stock.By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss.However, it's pretty easy to find cutting-edge growth stocks with the help of the Zacks Growth S ...
Camping World Holdings(CWH) - 2024 Q4 - Earnings Call Transcript
2025-02-26 23:52
Financial Data and Key Metrics Changes - The company recorded revenue of $1.2 billion for Q4 2024, an increase of 9% compared to the previous year, driven by an 8% increase in new unit sales and an 11% increase in used unit sales [20][21] - Adjusted EBITDA loss improved to $2.5 million from a loss of $8.9 million year-over-year, primarily due to accelerated used inventory procurement and new unit market share gains [23] - The company ended the quarter with approximately $288 million in cash, including $80 million in the floor plan offset account, and $339 million in used inventory net of flooring [24] Business Line Data and Key Metrics Changes - New vehicle gross margin was 15.2%, primarily due to lower promotional support compared to the prior year [21] - Used vehicle gross margin improved to 18.7% as fresh used inventory was brought back into the system [21] - Good Sam achieved revenue growth of 1% with nearly $95 million in EBITDA, indicating solid performance in product services and other areas despite pressures from the furniture business sale [22] Market Data and Key Metrics Changes - The company ended 2024 with a record combined new and used market share of 11.2%, with expectations to reach 12% in early 2025 [10][11] - Early 2025 results showed healthy mid-single-digit growth, with expectations for used same-store sales tracking positive double digits in February [15][16] - The company anticipates retail demand to remain relatively flat year-over-year, estimating around 350,000 retail sales for 2025 [98][102] Company Strategy and Development Direction - The company aims for 10% to 15% unit growth in used RVs and low single-digit growth in new RVs, with a focus on improving total gross profit and SG&A by 600 to 700 basis points [10][18] - The strategy includes expanding dealership acquisitions, with plans to close an additional four to six rooftops by the end of spring [17][90] - The company is focused on maintaining its dominance in the RV market while expanding its Good Sam and service metrics [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the health of the broader RV industry, citing good foot traffic and lead volume in stores [42][46] - The company expects explosive EBITDA growth in Q1 2025 compared to the prior year, driven by gross margin improvements and significant SG&A reductions [13][117] - Management noted that the ten-year treasury yield's stabilization could lead to retail finance rate relief for customers, enhancing affordability [11][30] Other Important Information - The company raised $330 million in growth capital in October and amended its RV floor plan facility, adding $300 million of runway [9] - The company is committed to achieving a 600 to 700 basis point improvement in SG&A as a percentage of gross profit, with adjustments to the cost structure already in progress [23][152] Q&A Session Summary Question: On new ASPs, is the improvement due to rate reductions or other factors? - Management indicated that ASPs typically start lower in the year and rise as the season progresses, with rate reductions allowing customers to afford more expensive units [28][31] Question: How much of the SG&A improvement is volume-driven versus cost savings? - Management acknowledged that some improvement comes from increased gross profit, but difficult decisions regarding headcount were also made to achieve the targeted SG&A improvements [32][34] Question: What feedback has been received from the show season regarding retail demand? - Management noted positive feedback from show season, with good foot traffic and lead volume, indicating a healthy demand for RVs [42][46] Question: What is the expected retail demand for 2025? - Management anticipates retail demand to be relatively flat year-over-year, estimating around 350,000 retail sales [98][102] Question: Can you clarify the impact of insurance claims on SG&A? - Management quantified the impact of higher insurance claims at about $6 million for the quarter, which is expected to normalize [151] Question: What is the outlook for used RV opportunities in 2025? - Management expressed confidence in the used RV market, highlighting significant procurement efforts and a strong inventory position [155]
Camping World Holdings(CWH) - 2024 Q4 - Earnings Call Transcript
2025-02-26 20:20
Financial Data and Key Metrics Changes - The company recorded revenue of $1.2 billion for Q4 2024, an increase of 9% compared to the previous year, driven by an 8% increase in new unit sales and an 11% increase in used unit sales [20][21] - Adjusted EBITDA loss improved to $2.5 million from a loss of $8.9 million year-over-year, primarily due to accelerated used inventory procurement and new unit market share gains [23] - The company ended Q4 with approximately $288 million in cash, including $80 million in the floor plan offset account, and $339 million in used inventory net of flooring [24] Business Line Data and Key Metrics Changes - New vehicle gross margin was 15.2%, primarily due to lower promotional support compared to the prior year, while used vehicle gross margin improved to 18.7% as fresh used inventory was brought back into the system [21] - Good Sam achieved revenue growth of 1% with nearly $95 million in EBITDA, indicating solid performance in product services and other core dealer service revenues [22] Market Data and Key Metrics Changes - The company ended 2024 with a record combined new and used market share of 11.2%, with expectations to reach 12% in early 2025, selling over 130,000 units, up from 121,500 in 2024 [10][11] - The company anticipates retail demand for the RV industry to remain relatively flat year-over-year, estimating around 350,000 retail sales, with wholesale shipments slightly higher to support restocking [98][102] Company Strategy and Development Direction - The company aims for 10% to 15% unit growth in used RVs and low single-digit growth in new RVs, with a focus on improving total gross profit and achieving a 600 to 700 basis point improvement in SG&A as a percentage of gross profit [10][23] - The management is focused on judiciously reestablishing the used business while maintaining dominance in the RV market, with plans to close an additional four to six dealership acquisitions by the end of spring [18][90] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the health of the broader RV industry, citing good foot traffic and lead volume, and noted that consumer interest in RVs is returning [42][46] - The company expects explosive EBITDA growth in Q1 2025 compared to the prior year, driven by gross margin improvements and significant SG&A reductions [13][117] Other Important Information - The company raised $330 million in growth capital in October and amended its RV floor plan facility, adding $300 million of runway [9] - Management indicated that the ten-year treasury yield's stabilization could lead to retail finance rate relief for customers, allowing them to afford more units [13][30] Q&A Session Summary Question: What is driving the new ASPs? - Management indicated that ASPs typically start lower at the beginning of the year and rise as the selling season progresses, with a correlation to the ten-year treasury yield affecting retail rates [28][30] Question: How much of the SG&A improvement is from profit growth versus cost savings? - Management noted that some improvement comes from increased gross profit, but significant adjustments to the cost structure were also made to achieve the targeted SG&A improvements [32][34] Question: What feedback has been received from the show season? - Management reported positive feedback from show season, with good foot traffic and lead volume, indicating a healthy demand for RVs [42][46] Question: What is the outlook for retail demand in 2025? - Management anticipates retail demand to be relatively flat year-over-year, estimating around 350,000 retail sales, with wholesale shipments needing to be slightly higher to support restocking [98][102] Question: What are the expectations for new and used gross margins in 2025? - Management expects new gross margins to be in the range of 13.5% to 14% and used gross margins to exceed 19% for the year [85][86] Question: How many dealerships does the company plan to add in 2025? - Management expects to add six to seven dealerships in 2025, focusing on capital allocation and growth opportunities [90][91]
Camping World (CWH) Reports Q4 Loss, Tops Revenue Estimates
ZACKS· 2025-02-25 23:30
Camping World (CWH) came out with a quarterly loss of $0.47 per share versus the Zacks Consensus Estimate of a loss of $0.55. This compares to loss of $0.47 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 14.55%. A quarter ago, it was expected that this recreational vehicle retailer and services provider would post earnings of $0.07 per share when it actually produced earnings of $0.13, delivering a surprise of 85.71%.Over the ...
Camping World Boosts Revenue by 6.8%
The Motley Fool· 2025-02-25 23:09
Core Insights - Camping World reported an adjusted diluted EPS of -$0.47 for Q4 2024, exceeding analysts' expectations by $0.04, representing a 7.8% beat [2] - Total revenue for the quarter was $1.2 billion, surpassing the expected $1.127 billion, marking an 8.6% year-over-year increase [2][3] - The company faced ongoing challenges in used vehicle sales and weather-related disruptions affecting customer activity [2] Financial Performance - Adjusted EPS for Q4 2024 was -$0.47, compared to -$0.51 estimated and -$0.44 in Q4 2023, reflecting a 6.8% year-over-year improvement [3] - Revenue increased to $1.2 billion from $1.109 billion in Q4 2023, an 8.6% increase [3] - Gross margin improved to 31.3% from 31.0% year-over-year [3] - Adjusted EBITDA improved significantly to -$2.5 million from -$8.9 million in Q4 2023, a 72.1% improvement [3] Sales and Margins - New vehicle sales revenue rose by 10.7% to $497.5 million, driven by an 8% increase in new unit sales [6] - Used vehicle sales increased by 8.2% to $348.1 million, with unit sales up by 11.4% [6] - The average selling price for new vehicles increased by 2.5%, while used vehicle prices declined by 2.8% [7] - New vehicle gross margin decreased by 372 basis points to 15.2%, while used vehicle gross margin increased by 368 basis points [7] - Gross profit grew by 9.7% to $376.9 million, supported by increased finance and insurance gross profit [7] Operational Insights - Operational expenditures, particularly SG&A, rose by 9.1% due to higher employee compensation and advertising expenses [8] - The company is focusing on expanding its Good Sam membership base despite recent declines in active customer numbers, which fell by 9.5%, and a 13.5% decrease in Good Sam Club membership [9] Strategic Focus - Camping World is strategically focused on expanding market share and enhancing profitability through acquisitions, including the integration of seven Lazydays locations [5] - The company aims to optimize its network and leverage Good Sam membership to boost recurring revenue streams [5] - Management anticipates continued revenue growth driven by strategic acquisitions and market share gains, with a focus on increasing RV sales and improving gross margins [10][11]
Camping World Holdings(CWH) - 2024 Q4 - Annual Results
2025-02-25 21:10
Revenue Performance - Revenue for Q4 2024 was $1.2 billion, an increase of $95.1 million, or 8.6% year-over-year[4] - Full year revenue was $6.1 billion, a decrease of $126.5 million, or 2.0%[7] - Total revenue for Q4 2024 was $1,204,464, an increase of 8.6% compared to $1,109,333 in Q4 2023[21] - Revenue from new vehicle sales reached $497,533 in Q4 2024, up 10.7% from $449,416 in Q4 2023[21] - Total revenue for the year decreased by 6.0% to $5,161,827[23] Vehicle Sales - New vehicle revenue was $497.5 million, up $48.1 million, or 10.7%, with unit sales of 11,575, an increase of 858 units, or 8.0%[4] - Used vehicle revenue was $348.1 million, an increase of $26.5 million, or 8.2%, with unit sales of 10,573, an increase of 1,081 units, or 11.4%[4] - Combined new and used vehicle unit sales reached 22,148, an increase of 1,939 units, or 9.6%[4] - New vehicle unit sales for the full year were 70,484, an increase of 11,753 units, or 20.0%[7] - Total unit sales for the year ended December 31, 2024, increased by 5.2% to 121,516 units, with new vehicle sales rising by 20.0% to 70,484 units, while used vehicle sales decreased by 10.2% to 51,032 units[23] Profitability and Loss - Adjusted EBITDA for Q4 2024 was $(2.5) million, an increase of $6.4 million, or 72.1% year-over-year[7] - Net loss for Q4 2024 was $(59.5) million, a decrease of $12.0 million, or 25.1% compared to the previous year[7] - Gross profit for Q4 2024 was $376,916, representing a 9.8% increase from $343,441 in Q4 2023[21] - The company reported a net loss attributable to Camping World Holdings, Inc. for Q4 2024 was $31,602, compared to a net loss of $14,461 in Q4 2023[21] - Adjusted EBITDA for the year ended December 31, 2024 was $178,843 thousand, down from $286,213 thousand in 2023[39] Expenses - SG&A expenses for the full year were $1.6 billion, an increase of $34.1 million, or 2.2%[8] - Total SG&A for the year ended December 31, 2024, was $1,573,117 thousand, an increase from $1,538,988 thousand in 2023[50] - SG&A excluding stock-based compensation (SBC) for the three months ended December 31, 2024, was $362,437 thousand, representing 96.2% of gross profit, slightly down from 96.6% in 2023[50] Inventory and Assets - New vehicle inventory per dealer location decreased by 12.6% to $6,086, while used vehicle inventory per dealer location decreased by 13.7% to $2,027[22] - Total RV and Outdoor Retail inventories decreased by 10.8% to $1,821,574[22] - Total assets decreased to $4,863,277 thousand in 2024 from $4,889,452 thousand in 2023, a decline of approximately 0.5%[27] Cash Flow and Liabilities - Net cash provided by operating activities was $245,159 thousand in 2024, down from $310,807 thousand in 2023, representing a decrease of about 21%[28] - Total current liabilities decreased to $1,680,952 thousand in 2024 from $1,947,839 thousand in 2023, a reduction of approximately 13.7%[27] - The company’s total liabilities decreased to $4,378,328 thousand in 2024 from $4,631,477 thousand in 2023, a decrease of approximately 5.5%[27] Shareholder Information - Basic loss per share for Q4 2024 was $(0.56), compared to $(0.32) in Q4 2023[21] - The weighted-average Class A common shares outstanding - basic for the three months ended December 31, 2024, was 56,586 thousand, compared to 44,889 thousand in 2023[46] - The adjusted weighted average Class A common shares outstanding - diluted for the year ended December 31, 2024, was 48,005 thousand, consistent with 84,972 thousand in 2023[46] Other Financial Metrics - Average selling price for new vehicles decreased by 8.6% to $40,089, and for used vehicles decreased by 9.2% to $31,624[23] - Average gross profit per unit for new vehicles decreased by 15.2% to $5,781, while used vehicles decreased by 18.5% to $5,814[23] - The company reported a net loss income margin of (4.9%) for Q4 2024, compared to (4.3%) in Q4 2023[39] - Long-lived asset impairment charges for the year 2024 amounted to $15,061 thousand, up from $9,269 thousand in 2023[39]
Prediction: Camping World Will Beat the Market. Here's Why
The Motley Fool· 2025-02-22 00:00
Group 1 - The core analysis focuses on Camping World Holdings (CWH) and its potential as an investment for 2025 [1] - Insights into the RV market are provided, indicating trends and consumer behavior that may impact Camping World's performance [1] - Management strategies and financial performance metrics are evaluated to assess the company's overall health and future prospects [1]
Should Value Investors Buy Camping World (CWH) Stock?
ZACKS· 2025-02-20 15:40
Core Viewpoint - Value investing remains a preferred strategy for identifying strong stocks across various market conditions, utilizing established valuation metrics to guide investment decisions [2][3]. Company Analysis - Camping World (CWH) is highlighted as a potential investment opportunity, currently holding a Zacks Rank of 2 (Buy) and a Value grade of A, indicating strong value characteristics [4]. - CWH has a Forward P/E ratio of 20.24, which is slightly below the industry average of 20.63, suggesting it may be undervalued [4]. - The stock's Forward P/E has fluctuated over the past year, reaching a high of 41.53 and a low of -46.63, with a median of 20, indicating volatility in its valuation [4]. - CWH's PEG ratio stands at 0.68, which is lower than the industry average of 0.84, further supporting the notion that the company is undervalued [5]. - The PEG ratio has varied from a high of 0.77 to a low of -1.57 over the past year, with a median of 0.74, reflecting its earnings growth expectations [5]. - Overall, the metrics suggest that Camping World is likely undervalued and stands out as one of the strongest value stocks in the market, particularly when considering its earnings outlook [6].
CWH or ABNB: Which Is the Better Value Stock Right Now?
ZACKS· 2025-02-17 17:46
Core Viewpoint - Investors in the Leisure and Recreation Services sector may find Camping World (CWH) more attractive than Airbnb, Inc. (ABNB) based on valuation metrics and earnings outlook [1]. Valuation Metrics - CWH has a forward P/E ratio of 22.92, while ABNB has a forward P/E of 37.76 [5]. - CWH's PEG ratio is 0.77, indicating a more favorable growth outlook compared to ABNB's PEG ratio of 2.38 [5]. - CWH's P/B ratio is 11.21, compared to ABNB's P/B of 12.16, suggesting CWH is more undervalued relative to its book value [6]. Analyst Outlook - CWH currently holds a Zacks Rank of 2 (Buy), indicating a positive earnings estimate revision trend, while ABNB has a Zacks Rank of 3 (Hold) [3]. - CWH's solid earnings outlook contributes to its superior valuation metrics, leading to a Value grade of A, whereas ABNB has a Value grade of D [6].