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Camping World Holdings(CWH) - 2024 Q3 - Quarterly Report
CWHCamping World Holdings(CWH)2024-10-29 20:05
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Financial Performance - Camping World Holdings, Inc. reported a revenue of 1.2billionfortheninemonthsendedSeptember30,2024,representinga51.2 billion for the nine months ended September 30, 2024, representing a 5% increase compared to the same period in 2023[1]. - Total revenue for the three months ended September 30, 2024, was 1,724,988, a decrease of 0.3% compared to 1,729,613forthesameperiodin2023[111].−TotalrevenuefortheninemonthsendedSeptember30,2024,was1,729,613 for the same period in 2023[111]. - Total revenue for the nine months ended September 30, 2024, was 4,895,510, a decrease of 4.3% compared to 5,117,214forthesameperiodin2023[165].−ThecompanyreportedanetlossattributabletoCampingWorldHoldings,Inc.of5,117,214 for the same period in 2023[165]. - The company reported a net loss attributable to Camping World Holdings, Inc. of (7,035,000) for the nine months ended September 30, 2024, compared to a net income of 47,833,000forthesameperiodin2023[201].−NetincomefortheninemonthsendedSeptember30,2023,was47,833,000 for the same period in 2023[201]. - Net income for the nine months ended September 30, 2023, was 100,519, compared to a net loss of 19,336forthesameperiodin2024[20].−ThecompanyreportedanetincomeattributabletoCampingWorldHoldings,Inc.of19,336 for the same period in 2024[20]. - The company reported a net income attributable to Camping World Holdings, Inc. of 5,501, a decline of 65.5% from 15,961inthesameperiodlastyear[138].−ThenetincomeallocatedtoCampingWorldHoldings,Inc.forthethreemonthsendedSeptember30,2024,was15,961 in the same period last year[138]. - The net income allocated to Camping World Holdings, Inc. for the three months ended September 30, 2024, was 8.056 million, compared to 30.893millionforthesameperiodin2023[134].CustomerMetrics−Thecompanyhad1.5millionactivecustomersasofSeptember30,2024,anincreaseof1030.893 million for the same period in 2023[134]. Customer Metrics - The company had 1.5 million active customers as of September 30, 2024, an increase of 10% year-over-year[2]. - Active customers decreased by 9.7% to 4,615,443, and Good Sam Club members decreased by 12.1% to 1,804,334[1][9]. Inventory and Sales - Total inventories amounted to 1,781.7 million, a decrease of 12.8% from 2,042.9milliononDecember31,2023[35].−NewRVinventorywasreportedat1,189,880units,downfrom1,378,403unitsasofDecember31,2023,representingadeclineof13.72,042.9 million on December 31, 2023[35]. - New RV inventory was reported at 1,189,880 units, down from 1,378,403 units as of December 31, 2023, representing a decline of 13.7%[35]. - Used RV inventory decreased to 420,727 units from 464,833 units, reflecting a reduction of 9.5%[35]. - Revenue from new vehicles increased to 824,916, up 21.5% from 679,207year−over−year,whileusedvehiclerevenuedecreasedby24.2679,207 year-over-year, while used vehicle revenue decreased by 24.2% to 447,242 from 590,227[14].−Newvehiclesalesincreasedby31.2590,227[14]. - New vehicle sales increased by 31.2% to 19,943 units, while used vehicle sales decreased by 17.9% to 14,065 units, resulting in a total sales increase of 5.2%[1]. Expenses and Costs - Total costs applicable to revenue for the three months ended September 30, 2023, were 1,226,464, an increase of 1.7% from 1,206,527year−over−year[14].−OperatingexpensesforthethreemonthsendedSeptember30,2023,were1,206,527 year-over-year[14]. - Operating expenses for the three months ended September 30, 2023, were 434,106, slightly down from 435,160inthesameperiodlastyear[14].−Selling,generalandadministrativeexpensesincreasedby435,160 in the same period last year[14]. - Selling, general and administrative expenses increased by 23.1 million due to additional advertising expenses[179]. - The average cost per vehicle decreased by 5.6% in the three months ended September 30, 2024, contributing to the overall decrease in gross margins[124]. Strategic Initiatives - The company plans to open 10 new dealership locations in 2025, expanding its market presence significantly[4]. - The company is investing 50millioninnewtechnologytoenhanceitse−commerceplatformandimprovecustomerexperience[6].−AstrategicacquisitionofaregionalRVdealershipchainisexpectedtoclosebyQ12025,whichwilladdapproximately50 million in new technology to enhance its e-commerce platform and improve customer experience[6]. - A strategic acquisition of a regional RV dealership chain is expected to close by Q1 2025, which will add approximately 200 million in annual revenue[7]. - The company has initiated a stock repurchase program with a target of 100millionoverthenext12months[8].FinancialPositionandDebt−AsofSeptember30,2024,totalassetswere100 million over the next 12 months[8]. Financial Position and Debt - As of September 30, 2024, total assets were 4,645,224,000, down from 4,845,684,000inDecember2023[114].−Thecompanyreportedatotallong−termdebtof4,845,684,000 in December 2023[114]. - The company reported a total long-term debt of 1,506.0 million as of September 30, 2024, slightly up from 1,498.9millionatDecember31,2023[52].−Paymentsonlong−termdebtfortheninemonthsendedSeptember30,2024,were1,498.9 million at December 31, 2023[52]. - Payments on long-term debt for the nine months ended September 30, 2024, were 66.8 million, significantly higher than 26.6millioninthesameperiodof2023[22].−ThecompanyincurredrestructuringcostsrelatedtoActiveSportsRestructuringduringthethreeandninemonthsendedSeptember30,2023,whichincludedone−timeterminationbenefitsandincrementalinventoryreservecharges[203].MarketConditionsandTrends−Inflationarypressureshaveledtoincreasedcostsforproductsandoverhead,whichmayadverselyaffectoperatingresultsifsellingpricesdonotriseproportionately[127].−Theaveragesalepriceofnewvehiclesdecreasedby4.326.6 million in the same period of 2023[22]. - The company incurred restructuring costs related to Active Sports Restructuring during the three and nine months ended September 30, 2023, which included one-time termination benefits and incremental inventory reserve charges[203]. Market Conditions and Trends - Inflationary pressures have led to increased costs for products and overhead, which may adversely affect operating results if selling prices do not rise proportionately[127]. - The average sale price of new vehicles decreased by 4.3% in fiscal year 2023 compared to 2022, influenced by price-sensitive customers in a high-interest rate environment[123]. - The company expects continued declines in Good Sam Club membership due to recent price increases and the introduction of a free basic plan[1][13]. Goodwill and Acquisitions - The company recorded goodwill of 30.5 million from acquisitions during the nine months ended September 30, 2024, down from 65.7millioninthesameperiodof2023[92].−ThedivestitureoftheRVfurniturebusinessresultedinalossof65.7 million in the same period of 2023[92]. - The divestiture of the RV furniture business resulted in a loss of 7.1 million, with total consideration received amounting to approximately 30.4million,including30.4 million, including 20.0 million in cash[49].