Camping World Holdings(CWH) - 2024 Q1 - Quarterly Report

Financial Performance - Total consolidated revenue for the three months ended March 31, 2024, was $1,486.88 million, compared to $1,443.34 million for the same period in 2023, representing an increase of 3.0%[53] - Total revenue for the three months ended March 31, 2024, was $1,364,017, a decrease of 8.3% compared to $1,486,880 for the same period in 2023[101] - Total revenue for the three months ended March 31, 2024, was $1,364,017, a decrease of 11.8% compared to $1,350,058 in the same period last year[124] - The company reported a net loss of $50,806 for the three months ended March 31, 2024, compared to a net income of $4,903 in the same period of 2023[101] - The net loss attributable to Camping World Holdings, Inc. was $22,307 for the three months ended March 31, 2024, compared to net income of $3,169 in the same period last year[123] - The company reported a net loss of $50,806 thousand for the period, compared to a net loss of $28,499 thousand in the previous period[170] Cash Flow and Investments - Net cash used in operating activities was $68.0 million for the three months ended March 31, 2024, a decrease of $267.2 million from $199.2 million of net cash provided by operating activities in the same period of 2023[56] - Net cash used in investing activities was $59.5 million for the three months ended March 31, 2024, primarily due to $58.8 million for the acquisition of RV dealerships[57] - Net cash used in investing activities was $59.498 million, compared to $20.687 million in the prior year[152] - Net cash provided by financing activities was $117.551 million, a recovery from net cash used of $235.833 million in the same period last year[152] Revenue Breakdown - Revenue from RV and Outdoor Retail new vehicles increased by 1.4% to $656,086, representing 48.1% of total revenue[101] - Used vehicle revenue decreased by 24.1% to $337,685, accounting for 24.8% of total revenue[101] - New vehicle unit sales increased by 21.3% to 16,882 units, while used vehicle sales decreased by 14.0% to 10,694 units, resulting in total unit sales of 27,576, a 4.7% increase[120] - Average selling price for new vehicles decreased by 16.4% to $38,863, and for used vehicles decreased by 11.7% to $31,577[120] Operating Expenses and Profitability - Total gross profit for the three months ended March 31, 2024, was $402,397, down 8.8% from $441,020 in the prior year[101] - Operating expenses increased by 4.1% to $398,175, compared to $382,421 in the same period last year[101] - The company reported a $55.7 million reduction in net income for the three months ended March 31, 2024, compared to the same period in 2023[56] - Basic loss per share was $(0.50), compared to earnings per share of $0.07 in the prior year[194] Inventory and Assets - Total RV and Outdoor Retail inventories increased by 4.9% to $2,077,200, with new vehicle inventories rising by 20.4% and used vehicle inventories decreasing by 23.7%[120] - As of March 31, 2024, total inventory amounted to $2,077,592 thousand, a slight increase from $2,042,949 thousand on December 31, 2023[185] - The company’s new RV inventory increased to $1,469,193 thousand from $1,378,403 thousand as of December 31, 2023, indicating a growth of approximately 6.6%[185] - The company reported a decrease in used RV inventory to $389,810 thousand from $464,833 thousand, a decline of approximately 16.1%[185] Debt and Liabilities - Total liabilities rose to $4,870,752 thousand, compared to $4,631,477 thousand at the end of the previous quarter, marking an increase of 5.2%[147] - Long-term debt, net of current portion, increased to $1,545,165 thousand from $1,498,958 thousand, a rise of 3.1%[147] - The outstanding principal balance of other long-term debt was $8.2 million with a weighted average interest rate of 4.27% as of March 31, 2024[233] Strategic Initiatives - The company is reviewing potential strategic alternatives for its Good Sam business, which may include a sale or spin-off[112] - The company has implemented plans to exit and restructure operations of Active Sports, which was substantially completed by December 31, 2023[93] - The company anticipates future capital expenditures related to the expansion of dealerships through acquisition and construction[140] Market Conditions - The company continues to face risks related to consumer preferences and competition in the RV market, which may impact future performance[160] - The company experienced deflation in new and used vehicle costs, but inflationary pressures on other product and overhead costs may adversely affect operating results[92] - The company expects continued variability in revenue and net income due to seasonal demand fluctuations, with higher sales typically occurring in the second and third fiscal quarters[203]