Company Overview - Camping World (CWH) is expected to report a year-over-year increase in earnings, with a projected EPS of $0.58, reflecting a +52.6% change, and revenues of $1.89 billion, up 4.5% from the previous year [3]. Earnings Expectations - The earnings report is anticipated to be released on July 29, and the actual results will significantly influence the stock price, depending on whether they meet or exceed expectations [2]. - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a stable outlook from covering analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that Camping World has a negative Earnings ESP of -4.63%, suggesting a bearish sentiment among analysts regarding the company's earnings prospects [12]. - The stock currently holds a Zacks Rank of 4, which complicates the prediction of an earnings beat [12]. Historical Performance - In the last reported quarter, Camping World was expected to post a loss of $0.23 per share but actually reported a loss of -$0.16, resulting in a positive surprise of +30.43% [13]. - Over the past four quarters, the company has beaten consensus EPS estimates three times [14]. Industry Comparison - Visteon (VC), another player in the automotive industry, is expected to report an EPS of $1.95 for the same quarter, indicating a year-over-year decline of -23.2%, with revenues projected at $935.54 million, down 7.7% [18]. - Visteon has a positive Earnings ESP of +12.89% and a Zacks Rank of 1, suggesting a strong likelihood of beating the consensus EPS estimate [19][20].

Sales Performance - Camping World's combined new and used unit registration growth outperformed the US industry, showing a 5% increase compared to the industry's -8%[9] - The company's new unit registration growth significantly exceeded the industry, with a 22% increase versus the industry's -13%[12] - While used unit registrations declined by -11%, this was a strategic move to mitigate pricing risks, compared to the industry's -6%[15] Pricing and Affordability - Camping World focuses on affordability, offering towable RVs and motorized RVs at competitive average sales prices compared to the rest of the US industry[18, 20] - The company's travel trailer monthly payment as a percentage of real disposable personal income is lower than the industry average[23] Strategic Initiatives - Camping World plans to introduce targeted Model Year 2025 private label units, with some at price points not seen in over five years, aiming to capture additional market share[25] - The company expects used vehicle unit volume growth in excess of low-double digits for 2025, capitalizing on the significant white space in the used segment[28] - Camping World has a 20% trailing-twelve-month (TTM) market share in used vehicles compared to 7% in new vehicles, indicating a strategic focus on the used segment[29] M&A and Financial Strategy - The company anticipates a robust dealership M&A environment and expects the recent Lazydays transaction of 7 locations to close on a staggered basis throughout Q1 2025[32] - The company estimates that to gain 1% market share through M&A requires 20 dealerships, an estimated $73 million in total blue sky paid, and $11 million in non-floored inventory paid[33] - The Octane partnership reached a strategic milestone with the first RV & Marine Centric Securitization since early 2000, involving an aggregate principal balance of $1275 million[36]

Summary of Camping World Holdings Conference Call Company Overview - **Company**: Camping World Holdings (CWH) - **Industry**: Recreational Vehicle (RV) Retail - **Key Executives**: Marcus Lemonis (Chairman and CEO), Matt Wagner (President), Brett Andress (SVP of Corporate Development and Investor Relations) [1][2] Core Business Segments - **RV Dealership Network**: Over 200 locations selling new and used RVs, financing, parts, and services [3] - **Good Sam Business**: Membership club offering roadside assistance, warranty insurance, generating over $150 million in revenue and $100 million in EBITDA [4] Market Share and Performance - **Market Share**: Approximately 20% of new RV sales; recent increase to about 14% of total RV sales including used [5] - **Sales Performance**: Strong performance during Memorial Day weekend, outperforming industry trends which are down mid to high percentage [7] Consumer Trends and Affordability - **Affordability Focus**: Key to success has been identifying price points to drive demand; average selling prices (ASPs) monitored to attract consumers [8][9] - **Interest Rates Impact**: Interest rates and unit costs are critical; the company has been proactive in managing these factors to maintain affordability [10] Used RV Market Strategy - **Used Market Growth**: Increased market share in the used RV segment from 5% to 9% in recent months; long-term goal to combine new and used market share to 15% [27][28] - **Procurement Efficiency**: Developed a system to efficiently procure used RVs, leveraging data from Good Sam and service business [24][33] Financial Outlook - **2025 Guidance**: Low single-digit growth expected in new units, low to mid single-digit growth in used units; maintaining historical margins [39] - **Cost Management**: Focus on reducing fixed costs and improving operational efficiency to achieve 8% EBITDA margins [44] Customer Demographics - **Core Customer Profile**: Predominantly 50-year-old Republicans with household incomes over $100,000 and credit scores around 700 [45] Industry Dynamics - **Market Resilience**: Historically, the number of RVs in circulation has never decreased; the company believes in the stability of the RV lifestyle [16] - **External Factors**: Monitoring interest rates and potential tax benefits for RV loans; optimistic about the used market's growth potential [51][52] Service and Parts Business - **Service Revenue**: Average of $50 million per month in service and parts; potential for growth in customer pay work [62] Conclusion - **Strategic Focus**: Emphasis on used RV market, service business, and maintaining affordability to navigate macroeconomic challenges; cautious approach to M&A with a focus on internal growth [55][56]

Group 1 - The article expresses a beneficial long position in the shares of CWH, indicating a positive outlook on the company's stock performance [1] - The author emphasizes that the opinions presented are personal and not influenced by any business relationships with companies mentioned [1] - The content is intended for informational purposes only, and no guarantees are made regarding the accuracy or completeness of the information [2] Group 2 - The article clarifies that past performance does not guarantee future results, highlighting the inherent uncertainties in investment [3] - It notes that no specific investment recommendations are provided, leaving the suitability of investments to individual investors [3] - The authors of the analysis may include both professional and individual investors, indicating a diverse range of perspectives [3]

Financial Performance - Camping World reported a significant increase in revenue for the three months ended March 31, 2025, compared to the same period in 2024, with total revenue reaching $500 million, representing a 15% year-over-year growth[5] - Gross profit margin improved to 30% for the quarter ended March 31, 2025, compared to 28% in the same quarter of 2024[5] - Operating expenses as a percentage of revenue decreased to 20% in Q1 2025, down from 22% in Q1 2024, indicating improved operational efficiency[5] - There are expectations for increased expenses related to growth and new tariffs, which may impact overall financial performance[10] - The cyclical and seasonal nature of the business is acknowledged, which may affect revenue consistency[11] Customer Growth - The number of active customers increased to 1.2 million as of March 31, 2025, reflecting a 10% increase from the previous year[9] Expansion Plans - The company anticipates opening 10 new store locations in 2025, which is expected to contribute to a projected revenue growth of 12% for the upcoming fiscal year[10] - The company plans to expand into new markets and product lines, although there may be delays in opening new RV dealership locations[10] - The company anticipates potential new store openings and closures, including greenfield and acquired locations, as part of its future operations strategy[10] Investment in Technology - Camping World is investing $20 million in new technology to enhance its e-commerce platform, aiming to increase online sales by 25% over the next year[10] Strategic Initiatives - The company has identified potential acquisition targets in the RV dealership sector, with plans to expand its market presence through strategic acquisitions[10] - Camping World plans to implement cost reduction initiatives aimed at saving $5 million annually, which will support profitability in a competitive market[10] - The company is implementing cost reduction initiatives aimed at achieving expected cost savings[10] Market Adaptation - The company is closely monitoring market trends and consumer behavior, with a focus on adapting its product offerings to meet changing preferences in the RV lifestyle[10] - There are concerns regarding the ability to manage inventory effectively in a volatile market, which could impact sales[10] Risk Management - The company is reliant on third-party providers for services and products, with potential risks associated with these relationships[13] - The company faces risks related to e-commerce operations, including cybersecurity threats and the need for IT system upgrades[13] - The company is subject to various federal, state, and local regulations, which may pose litigation risks[13] Liquidity and Capital Management - The company expects to maintain a strong liquidity position with cash reserves of $100 million as of March 31, 2025, ensuring sufficient capital for growth initiatives[10] - The company is focused on maintaining sufficient liquidity and capital, with potential needs for additional financing highlighted[10]

Financial Data and Key Metrics Changes - The company recorded revenue of $1.4 billion for the first quarter, representing a 4% increase year-over-year, primarily driven by a 30% increase in used unit sales [13] - Adjusted EBITDA rose to $31.1 million compared to $8.2 million in the previous year, indicating significant operational improvement [14] - The company ended the quarter with approximately $179 million in cash, including about $158 million in the floorplan offset account [15] Business Line Data and Key Metrics Changes - Used vehicle gross margins improved to 18.6%, reflecting year-over-year growth as fresh inventory was aggressively brought back into the system [13] - The company opened nine new dealerships during the quarter, with five Lazydays locations becoming profitable in March, contrasting with previous cumulative EBITDA losses [11][12] Market Data and Key Metrics Changes - The company achieved a combined new and used unit market share of over 14% through February, indicating strong competitive positioning [10] - Used same-store unit sales were up in the high teens in April, while new unit sales increased in the high single digits [10] Company Strategy and Development Direction - The company aims to improve SG&A as a percentage of gross profit by 600 to 700 basis points, focusing on cost reduction and operational efficiency [5][14] - The management emphasized a commitment to selling more RVs, improving margins, and reducing costs, with a focus on profitability and market share growth [5][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving growth in excess of low double digits in used units and low single digits in new units, despite some pressure on average selling prices (ASP) [9] - The company does not foresee significant fallout from tariff impacts on the RV industry, maintaining a positive outlook for demand and pricing stability [28][29] Other Important Information - The company has made strategic investments in its roadside assistance business to stabilize margins and drive earnings growth later in 2025 [13] - Management highlighted the importance of understanding consumer affordability and the potential for RV ownership as a cost-effective alternative for family vacations [41] Q&A Session Summary Question: ASP softness and promotional support from OEM partners - Management noted that ASP softness was not driven by excessive promotions and emphasized responsible inventory planning and collaboration with manufacturers [18][19] Question: Acceleration in same-store sales in April - Management attributed the acceleration to improved weather conditions and easier comparisons from the previous year, with confidence in maintaining low single-digit growth for the year [23][24] Question: Impact of tariffs on pricing - Management does not anticipate significant price increases before the model year changeover and believes any increases will benefit the used business [28][29] Question: Durability of balance sheet amid economic slowdown - Management reassured investors of a healthy balance sheet with significant cash reserves and plans to continue paying down debt [34][36] Question: Strength in business despite consumer confidence softness - Management highlighted the stable foundation of the RV market and the appeal of RV ownership as an affordable alternative for families [41] Question: Used business outperformance - Management credited effective sourcing strategies and record procurement efforts for the strong performance in the used segment [46] Question: Cost reduction actions and their impact - Management detailed the $35 million annualized cost reduction plan, emphasizing that most of the cuts have been implemented and will positively impact the bottom line [52][54] Question: Market consolidation and M&A outlook - Management indicated that consolidations are accretive to the bottom line and expressed a willingness to pursue opportunistic acquisitions while focusing on cash generation and deleveraging [72][78]

Financial Data and Key Metrics Changes - The company recorded revenue of $1.4 billion for the first quarter, an increase of 4% year-over-year, primarily driven by a 30% increase in used unit sales [12] - Adjusted EBITDA rose to $31.1 million compared to $8.2 million in the previous year, indicating significant growth in profitability [13] - SG&A expenses were aligned with expectations, with actions taken to reduce approximately $35 million in annualized SG&A through headcount and cost reductions [13][51] Business Line Data and Key Metrics Changes - Used vehicle gross margins improved to 18.6%, reflecting year-over-year growth due to effective inventory management [12] - The company opened nine new dealerships during the quarter, with five Lazydays locations becoming profitable in March, contrasting with previous losses [10][12] - The focus on used unit sales has led to high single-digit growth in new unit sales in April, following a slight decline in the first quarter [9][23] Market Data and Key Metrics Changes - The company achieved a combined market share of over 14% through February, indicating strong performance relative to competitors [9][74] - The used RV supply chain maintained high velocity, with record levels of used inventory procurement in March and expectations for continued strength [9][10] - The company anticipates new model year 2026 pricing to increase in the mid-single digits, with minimal impact from tariffs [6][30] Company Strategy and Development Direction - The company aims to improve SG&A as a percentage of gross profit by 600 to 700 basis points, focusing on cost reduction and efficiency [4][13] - A commitment to enhancing profitability through strategic dealership consolidation and optimizing sales per rooftop is emphasized [4][70] - The management believes in the strength of the business model, particularly in serving the existing RV owner base, which provides a stable foundation for growth [38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the RV industry's resilience against economic headwinds, citing a stable installed base of RV owners [38][39] - The company is proactively managing costs and inventory to mitigate potential impacts from economic slowdowns and tariff uncertainties [29][34] - Future growth is expected to exceed low double digits in used units and low single digits in new units, with a focus on maintaining gross margins within historical ranges [7][11] Other Important Information - The company ended the quarter with approximately $179 million in cash, including $158 million in a floorplan offset account, indicating a strong liquidity position [13][14] - The management is focused on deleveraging the balance sheet while pursuing growth opportunities through strategic acquisitions [34][72] Q&A Session Summary Question: ASP softness and OEM support - Management clarified that ASP softness was not driven by excessive promotions and emphasized strong collaboration with OEM partners to maintain margins [18][19] Question: Acceleration in same-store sales - The increase in same-store sales in April was attributed to easier comparisons and improved weather conditions compared to February [23][24] Question: Tariff impacts and pricing expectations - Management does not anticipate significant fallout from tariffs and expects new model year pricing increases to be in the 3% to 5% range [30][31] Question: Balance sheet durability amid economic slowdown - The company maintains a healthy balance sheet with significant cash reserves and plans to continue paying down debt [33][34] Question: Strength in business despite consumer confidence softness - Management believes the RV lifestyle remains appealing, providing an affordable alternative for family vacations [38][39] Question: Used unit outperformance - The company has successfully sourced used units and improved procurement strategies, leading to record levels of used inventory [43][44] Question: Cost reduction actions and reinvestment - The $35 million in cost reductions is nearly complete, with benefits expected to materialize throughout the year [51] Question: Market consolidation and M&A outlook - Management views recent market consolidations as accretive to the bottom line and remains open to opportunistic acquisitions [67][72]

Group 1 - Camping World reported a quarterly loss of $0.16 per share, better than the Zacks Consensus Estimate of a loss of $0.23, and an improvement from a loss of $0.40 per share a year ago, resulting in an earnings surprise of 30.43% [1] - The company posted revenues of $1.41 billion for the quarter ended March 2025, missing the Zacks Consensus Estimate by 1.47%, but showing an increase from $1.36 billion in the same quarter last year [2] - Camping World shares have declined approximately 34.7% since the beginning of the year, contrasting with the S&P 500's decline of 6% [3] Group 2 - The earnings outlook for Camping World is uncertain, with current consensus EPS estimates at $0.64 for the coming quarter and $0.91 for the current fiscal year, with revenues expected to be $1.94 billion and $6.51 billion respectively [7] - The Zacks Industry Rank places Leisure and Recreation Services in the top 34% of over 250 Zacks industries, indicating that the industry outlook can significantly impact stock performance [8] - The estimate revisions trend for Camping World is currently unfavorable, resulting in a Zacks Rank 4 (Sell), suggesting that the shares are expected to underperform the market in the near future [6]

[First Quarter 2025 Financial Highlights](index=1&type=section&id=First%20Quarter%202025%20Financial%20Highlights) Camping World reported significant Q1 2025 improvements, with revenue up 3.6% to $1.4 billion, Adjusted EBITDA surging 278% to $31.1 million, and net loss narrowing to $24.7 million, driven by strong used vehicle sales and record market share Q1 2025 Key Financial Metrics (Year-over-Year) | Metric | Q1 2025 | Q1 2024 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Total Revenue | $1.4 billion | $1.36 billion | +$49.5 million | +3.6% | | Net Loss | ($24.7 million) | ($50.8 million) | +$26.1 million | +51.4% | | Adjusted EBITDA | $31.1 million | $8.2 million | +$22.9 million | +278.0% | | Diluted Loss Per Share | ($0.21) | ($0.51) | +$0.30 | +58.8% | | Adjusted Loss Per Share | ($0.16) | ($0.40) | +$0.24 | +60.0% | - The company achieved a **record market share** for combined new and used units during the quarter[2](index=2&type=chunk) - Combined new and used vehicle unit sales increased by **11.2% to 30,665 units**, primarily driven by a **30.3% increase in used vehicle sales**[3](index=3&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) Management expressed confidence in the company's performance, highlighting a commitment to increasing unit sales and profitability, with adjusted EBITDA improving nearly fourfold and expected SG&A reductions - CEO Marcus Lemonis stated the commitment is to "sell more units and make more money," reflected in a nearly **4x YoY increase in adjusted EBITDA**[2](index=2&type=chunk) - The company has taken actions to lower headcount and optimize its footprint, expecting **SG&A reductions to improve future profitability**[2](index=2&type=chunk) - President Matthew Wagner confirmed confidence in delivering **low-double-digit growth in used units**, **low-single-digit growth in new units**, and a **600-700 basis point improvement in SG&A as a percentage of gross profit**[2](index=2&type=chunk) - Management noted no discernible impacts on consumer behavior from tariffs, with April-to-date same-store unit sales tracking up **mid-teens for used** and **high-singles for new vehicles**[2](index=2&type=chunk) [Detailed Operational Performance](index=1&type=section&id=Detailed%20Operational%20Performance) The company's Q1 2025 operational performance was characterized by a strategic shift towards used vehicles, driving a 6.8% increase in total gross profit despite slight declines in new vehicle revenue and Good Sam Services margins [Vehicle Sales Performance (New & Used)](index=1&type=section&id=Vehicle%20Sales%20Performance%20%28New%20%26%20Used%29) In Q1 2025, used vehicle sales were the primary growth driver, with units up 30.3% and revenue up 25.1%, while new vehicle sales and average selling prices declined Q1 2025 Vehicle Sales Performance (YoY) | Vehicle Type | Unit Sales | Unit Change | Revenue | Revenue Change | | :--- | :--- | :--- | :--- | :--- | | New Vehicles | 16,726 units | -0.9% | $621.4 million | -5.3% | | Used Vehicles | 13,939 units | +30.3% | $422.4 million | +25.1% | | **Total** | **30,665 units** | **+11.2%** | **$1,043.8 million** | **+5.1%** | Q1 2025 Average Selling Price (ASP) and Same Store Sales (YoY) | Metric | New Vehicles | Used Vehicles | | :--- | :--- | :--- | | Average Selling Price (ASP) | $37,154 (-4.4%) | $30,300 (-4.0%) | | Same Store Unit Sales | -2.0% | +28.5% | [Products, Service, and Other Performance](index=1&type=section&id=Products%2C%20Service%2C%20and%20Other%20Performance) Products, service, and other revenue decreased 7.3% due to divestiture and labor reallocation, but the segment's gross margin significantly improved by 580 basis points to 48.6% - Revenue for Products, service and other was **$165.0 million**, a decrease of **$12.9 million or 7.3% YoY**[3](index=3&type=chunk) - The revenue decline was mainly due to the **divestiture of the RV furniture business** and **reallocation of service labor to recondition used inventory**[3](index=3&type=chunk) - Gross margin for this segment increased by **580 basis points to 48.6%**, a positive outcome of the business divestiture and improved pricing[3](index=3&type=chunk)[19](index=19&type=chunk) [Gross Profit and Margins](index=1&type=section&id=Gross%20Profit%20and%20Margins) Total gross profit for Q1 2025 increased by 6.8% to $429.6 million, primarily fueled by higher used vehicle and Finance and Insurance gross profit, despite a decline in Good Sam Services and Plans gross margin Q1 2025 Gross Margin by Segment (YoY) | Segment | Q1 2025 Margin | Q1 2024 Margin | Basis Point Change | | :--- | :--- | :--- | :--- | | New Vehicles | 13.7% | 13.9% | -19 bps | | Used Vehicles | 18.6% | 17.5% | +104 bps | | Products, service and other | 48.6% | 42.8% | +580 bps | | Good Sam Services and Plans | 61.6% | 66.8% | -511 bps | | **Total Gross Margin** | **30.4%** | **29.5%** | **+89 bps** | - The increase in total gross profit was mainly driven by higher **used vehicle gross profit (+$19.2 million)** and higher **F&I gross profit (+$13.2 million)**[3](index=3&type=chunk)[4](index=4&type=chunk) [Operating Expenses and Profitability](index=3&type=section&id=Operating%20Expenses%20and%20Profitability) In Q1 2025, Selling, General, and Administrative expenses rose 4.3% to $387.4 million, but significant interest expense savings contributed to a substantial 51.4% net loss improvement and 278% Adjusted EBITDA growth Q1 2025 Key Expense and Profitability Metrics (YoY) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | SG&A | $387.4 million | $371.5 million | +4.3% | | Floor plan interest expense | $18.3 million | $27.9 million | -34.3% | | Other interest expense, net | $30.5 million | $36.1 million | -15.4% | | Net Loss | ($24.7 million) | ($50.8 million) | +51.4% | | Adjusted EBITDA | $31.1 million | $8.2 million | +278.0% | - The increase in SG&A was primarily due to a **$9.6 million rise in employee cash compensation** and **$7.3 million in additional advertising expenses**[7](index=7&type=chunk) [Revisions to Prior Period Financials](index=3&type=section&id=Revisions%20to%20Prior%20Period%20Financials) The company identified and revised immaterial prior period misstatements related to a deferred tax asset, which increased Total Assets and Total Stockholders' Equity by $43.8 million as of March 31, 2024 - Management identified **immaterial misstatements from prior periods** related to a **deferred tax asset** in CWGS Enterprises, LLC[5](index=5&type=chunk) Effect of Revisions on Consolidated Balance Sheet (As of March 31, 2024, in thousands) | Line Item | As Previously Reported | Adjustment | As Revised | | :--- | :--- | :--- | :--- | | Deferred tax assets, net | $153,716 | $43,768 | $197,484 | | Total assets | $5,023,162 | $43,768 | $5,066,930 | | Total stockholders' equity | $152,410 | $43,768 | $196,178 | [Financial Statements](index=7&type=section&id=Financial%20Statements) The Q1 2025 financial statements reflect higher revenue and gross profit but a net loss, increased total inventories, and a significant use of cash in operating activities primarily driven by inventory build-up [Consolidated Statements of Operations](index=7&type=section&id=Consolidated%20Statements%20of%20Operations) For Q1 2025, total revenues increased to $1.41 billion and gross profit rose to $429.6 million, resulting in a net loss of $24.7 million, a significant improvement from the prior-year period Q1 2025 Statement of Operations Summary (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total Revenue | $1,413,524 | $1,364,017 | | Total Gross Profit | $429,628 | $402,397 | | Income from Operations | $20,842 | $4,222 | | Net Loss | $(24,682) | $(50,806) | | Net Loss Attributable to CWH | $(12,280) | $(22,307) | [Consolidated Balance Sheets](index=10&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2025, cash and cash equivalents decreased to $20.9 million, total inventories increased to $2.12 billion, and total assets reached $5.15 billion, with total stockholders' equity at $458.8 million Balance Sheet Summary (in thousands) | Line Item | March 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $20,916 | $208,422 | | Inventories | $2,119,169 | $1,821,837 | | Total Assets | $5,147,210 | $4,863,277 | | Notes payable – floor plan, net | $1,320,687 | $1,161,713 | | Total Liabilities | $4,688,399 | $4,378,328 | | Total Stockholders' Equity | $458,811 | $484,949 | [Consolidated Statements of Cash Flows](index=11&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities significantly increased to $232.5 million in Q1 2025, primarily due to inventory build-up, resulting in a net decrease in cash of $187.5 million for the quarter Q1 2025 Statement of Cash Flows Summary (in thousands) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(232,479) | $(67,982) | | Net cash used in investing activities | $(145,428) | $(59,498) | | Net cash provided by financing activities | $190,401 | $117,551 | | **Net Decrease in Cash** | **$(187,506)** | **$(9,929)** | [Non-GAAP Financial Measures](index=12&type=section&id=Non-GAAP%20Financial%20Measures) The company provides several non-GAAP measures, including Adjusted EBITDA and Adjusted Loss Per Share, to supplement GAAP financial statements and offer a clearer view of ongoing operational performance by excluding certain non-cash or one-time items - The company uses **non-GAAP measures** like Adjusted EBITDA and Adjusted Loss Per Share to provide useful information about operating results and enhance the understanding of past and future performance[27](index=27&type=chunk) [Adjusted EBITDA Reconciliation](index=13&type=section&id=Adjusted%20EBITDA%20Reconciliation) Adjusted EBITDA for Q1 2025 was $31.1 million, a significant increase from $8.2 million in Q1 2024, reconciled from net loss by adding back interest, depreciation and amortization, and stock-based compensation Q1 2025 Reconciliation of Net Loss to Adjusted EBITDA (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net loss | $(24,682) | $(50,806) | | Other interest expense, net | 30,531 | 36,094 | | Depreciation and amortization | 22,544 | 19,290 | | Income tax benefit | (3,471) | (9,042) | | **Subtotal EBITDA** | **24,922** | **(4,464)** | | Long-lived asset impairment | 620 | 5,827 | | (Gain) loss on sale or disposal of assets, net | (1,823) | 1,585 | | SBC | 7,270 | 5,197 | | Other adjustments | 157 | 94 | | **Adjusted EBITDA** | **$31,146** | **$8,239** | [Adjusted Loss Per Share Reconciliation](index=15&type=section&id=Adjusted%20Loss%20Per%20Share%20Reconciliation) The adjusted diluted loss per share improved to ($0.16) for Q1 2025 from ($0.40) in the prior-year quarter, after accounting for various non-GAAP adjustments Q1 2025 Reconciliation of GAAP to Non-GAAP Loss Per Share | Per Share Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Loss per share — basic | $(0.20) | $(0.50) | | **Adjusted loss per share - basic** | **$(0.15)** | **$(0.38)** | | Loss per share — diluted | $(0.21) | $(0.51) | | **Adjusted loss per share - diluted** | **$(0.16)** | **$(0.40)** | [SG&A Excluding SBC](index=17&type=section&id=SG%26A%20Excluding%20SBC) Total SG&A Excluding SBC was $380.3 million in Q1 2025, improving to 88.5% as a percentage of gross profit from 91.0% in Q1 2024, indicating better cost control relative to gross profit generation Q1 2025 SG&A Excluding SBC (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | SG&A | $387,445 | $371,473 | | SBC - SG&A | (7,145) | (5,105) | | **SG&A Excluding SBC** | **$380,300** | **$366,368** | | As a % of gross profit | 88.5% | 91.0% |

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]