Camping World Holdings(CWH) - 2025 Q2 - Quarterly Report

PART I. FINANCIAL INFORMATION Item 1. Financial Statements (unaudited) This section presents unaudited condensed consolidated financial statements, including balance sheets, statements of operations, equity, cash flows, and notes on significant accounting policies, revenue, inventory, debt, equity, and segment information Unaudited Condensed Consolidated Balance Sheets Key Balance Sheet Data (in thousands): | Metric | June 30, 2025 | Dec 31, 2024 | June 30, 2024 | | :-------------------------- | :------------ | :----------- | :------------ | | Cash and cash equivalents | $118,084 | $208,422 | $23,743 | | Total assets | $5,191,847 | $4,863,277 | $5,005,876 | | Total liabilities | $4,675,268 | $4,378,328 | $4,795,471 | | Total stockholders' equity | $516,579 | $484,949 | $210,405 | Unaudited Condensed Consolidated Statements of Operations Three Months Ended June 30 (in thousands): | Metric | 2025 | 2024 | Change ($) | Change (%) | | :--------------------------------- | :--------- | :--------- | :--------- | :--------- | | Total revenue | $1,975,948 | $1,806,505 | $169,443 | 9.4% | | Income from operations | $130,269 | $95,382 | $34,887 | 36.6% | | Net income | $57,523 | $23,414 | $34,109 | 145.7% | | Net income attributable to CWH | $30,216 | $9,771 | $20,445 | 209.2% | | Basic EPS | $0.48 | $0.22 | $0.26 | 118.2% | | Diluted EPS | $0.48 | $0.22 | $0.26 | 118.2% | Six Months Ended June 30 (in thousands): | Metric | 2025 | 2024 | Change ($) | Change (%) | | :--------------------------------- | :--------- | :--------- | :--------- | :--------- | | Total revenue | $3,389,472 | $3,170,522 | $218,950 | 6.9% | | Income from operations | $151,111 | $99,604 | $51,507 | 51.7% | | Net income (loss) | $32,841 | $(27,392) | $60,233 | n/m | | Net income (loss) attributable to CWH | $17,936 | $(12,536) | $30,472 | n/m | | Basic EPS | $0.29 | $(0.28) | $0.57 | n/m | | Diluted EPS | $0.28 | $(0.28) | $0.56 | n/m | Unaudited Condensed Consolidated Statements of Stockholders' Equity - Total stockholders' equity increased from $484,949 thousand at January 1, 2025, to $516,579 thousand at June 30, 2025[21] - Dividends declared per share of Class A common stock were $0.125 for both the three months ended March 31, 2025, and June 30, 2025[21] - Net income attributable to Camping World Holdings, Inc. for the three months ended June 30, 2025, was $30,216 thousand, compared to $9,771 thousand in the prior year[21] Unaudited Condensed Consolidated Statements of Cash Flows Six Months Ended June 30 (in thousands): | Activity | 2025 | 2024 | Change ($) | | :---------------------------------- | :--------- | :--------- | :--------- | | Net cash (used in) provided by operating activities | $(44,595) | $84,341 | $(128,936) | | Net cash used in investing activities | $(180,078) | $(54,931) | $(125,147) | | Net cash provided by (used in) financing activities | $134,335 | $(45,314) | $179,649 | | Decrease in cash and cash equivalents | $(90,338) | $(15,904) | $(74,434) | | Cash and cash equivalents at end of period | $118,084 | $23,743 | $94,341 | Notes to Unaudited Condensed Consolidated Financial Statements 1. Summary of Significant Accounting Policies This note outlines the principles of consolidation, basis of presentation, revisions to prior period financial statements, the impact of seasonality on the business, and recently adopted and issued accounting pronouncements - CWH's ownership in CWGS, LLC increased to 61.1% as of June 30, 2025, up from 53.0% at June 30, 2024, leading to consolidation of CWGS, LLC's financial results[29] Revisions to June 30, 2024 Balance Sheet (in thousands): | Metric | As Previously Reported | Adjustment | As Revised | | :-------------------------- | :--------------------- | :--------- | :--------- | | Deferred tax assets, net | $150,105 | $43,768 | $193,873 | | Total assets | $4,962,108 | $43,768 | $5,005,876 | | Additional paid-in capital | $100,076 | $33,385 | $133,461 | | Retained earnings | $161,434 | $10,383 | $171,817 | | Total stockholders' equity | $166,637 | $43,768 | $210,405 | - The company's business is seasonal, with higher revenue and profits typically in the second and third fiscal quarters (spring and summer months) due to RV usage patterns, while SG&A expenses as a percentage of gross profit tend to be higher in the first and fourth quarters[33][34][35] 2. Revenue This note details contract assets and deferred revenues, including the total unsatisfied performance obligations and the periods over which these revenues are expected to be recognized - Contract assets related to RV service revenues were $9.9 million at June 30, 2025, a slight decrease from $10.0 million at December 31, 2024, and $13.0 million at June 30, 2024[39] Unsatisfied Performance Obligations (in thousands) as of June 30, 2025: | Year | Amount | | :--- | :------- | | 2025 | $57,670 | | 2026 | $54,704 | | 2027 | $23,311 | | 2028 | $11,520 | | 2029 | $6,200 | | Thereafter | $3,973 | | Total | $157,378 | 3. Inventories and Floor Plan Payables This note provides a breakdown of inventory composition and details the Floor Plan Facility, including its increased commitment, extended maturity, and changes in interest rates and borrowing capacity Inventories (in thousands): | Category | June 30, 2025 | Dec 31, 2024 | June 30, 2024 | | :------------------------------ | :------------ | :----------- | :------------ | | New RVs | $1,330,965 | $1,241,533 | $1,477,510 | | Used RVs | $536,665 | $413,546 | $349,843 | | Products, parts, accessories & other | $193,232 | $166,495 | $186,758 | | Total Inventories | $2,061,160 | $1,821,837 | $2,014,444 | - The Floor Plan Facility commitment increased