Financial Data and Key Metrics Changes - The company reported revenue of over $1.8 billion for Q3 2025, an increase of 5% driven by unit volume increases in used RVs exceeding 30% [12] - Adjusted EBITDA grew over 40% to $95.7 million compared to $67.5 million in the previous year [6][12] - SG&A as a percentage of gross profit improved by 360 basis points year over year [13] Business Line Data and Key Metrics Changes - The company sold nearly 14% of all new and used RVs in North America, indicating strong market penetration [6] - New average selling prices (ASPs) improved sequentially to just under $38,000, a decline of roughly 9% year over year [12] - The used RV sales segment showed significant growth, with expectations for continued high single-digit to low double-digit growth in the coming years [56] Market Data and Key Metrics Changes - The RV industry is experiencing low to mid single-digit declines year over year, with the company anticipating similar trends for its new RV sales [88] - The company has achieved a market share of 13.5%, with a medium-term target of 15% [50][54] Company Strategy and Development Direction - The company aims to improve revenue and earnings while reducing net leverage, with a target adjusted EBITDA floor of around $310 million for 2026 [8] - The strategy includes focusing on used RV sales, service businesses, and Good Sam services as core revenue drivers [11] - The company is investing in AI and technology to enhance operational efficiency and customer experience, which is expected to yield significant cost savings [40][42] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the new RV market, citing potential resistance due to rising prices and economic uncertainty [7][20] - The company plans to maintain a conservative approach to inventory and sales forecasts, allowing flexibility to adjust based on market conditions [24][65] - Management believes that the used RV business will continue to provide stability and growth opportunities, mitigating risks associated with the new RV market [91] Other Important Information - The company ended the quarter with $230 million in cash, $427 million in used inventory owned outright, and nearly $260 million in real estate without associated mortgages [13][14] - The management team emphasized the importance of maintaining a clean inventory position heading into 2026 [35] Q&A Session Summary Question: What have you seen regarding new RV demand? - Management noted high single-digit declines in the new RV industry, with some stabilization observed earlier in the year, but current trends indicate potential softening due to economic factors [19][20] Question: How do you view the impact of lower rates on unit growth? - Management indicated that while lower rates could help, rising prices may offset any benefits, leading to continued affordability challenges for consumers [26][27] Question: Can you clarify your EBITDA guidance for the year? - Management set a conservative EBITDA floor of $310 million for 2026, with expectations for growth driven primarily by used RV sales [33][64] Question: What is the outlook for M&A activity? - Management is focused on smaller, accretive acquisitions, with a goal to return to a 10% to 15% run rate of acquisitions, depending on market conditions [81][46] Question: What are the average price increases from OEMs for model year 2026? - The average price increase is expected to be around 5% to 7%, with potential for adjustments based on market demand [70][73]

Camping World (NYSE:CWH) Q3 2025 Earnings Call October 29, 2025 08:30 AM ET Company ParticipantsLindsey Christen - Chief Administrative and Legal OfficerTom Kirn - CFOMarcus Lemonis - Chairman and CEOPatrick Buckley - Associate of Private Wealth ManagementTristan Thomas-Martin - Equity ResearchBrett Andress - SVP of Corporate DevelopmentPatrick Scholes - Managing Director of Lodging, and Leisure Equity ResearcMatthew Wagner - PresidentConference Call ParticipantsCraig Kennison - Senior Analyst of Consumer a ...

Financial Data and Key Metrics Changes - The company reported revenue of $2 billion for Q2 2025, an increase of over 9% driven by unit volume increases in both new and used RVs exceeding 20% [28] - Adjusted EBITDA for the quarter was $142.2 million compared to $105.6 million in the previous year [29] - SG&A as a percentage of gross profit improved by 276 basis points year over year [29] Business Line Data and Key Metrics Changes - The company set a record selling 45,000 RV units in the quarter, with finance and insurance revenue reaching $200 million, the highest ever [6][28] - Gross margins exceeded 30%, indicating growth was not driven by heavy discounting [11] - The company achieved over 14% market share of all new and used RVs registered in North America year to date [26] Market Data and Key Metrics Changes - Same store unit growth trends showed high teens growth in used RV sales and high single digits in new RV sales year over year as of July [25] - The company expects a small bump in the new RV market in 2026, projecting an increase of 15,000 to 20,000 units [13] Company Strategy and Development Direction - The company is focused on building a customer ecosystem through various services, including finance, insurance, and service offerings [7][12] - There is a commitment to continue selling affordable units to build customer lifetime value and increase transaction frequency [12] - The company is exploring acquisitions and investments to grow its Good Sam business, which reported record revenue [21] Management's Comments on Operating Environment and Future Outlook - The management expressed confidence in navigating a challenging macro environment, stating that 2025 is expected to be tougher than 2024 due to tariffs and interest rates [24] - The company anticipates double-digit growth in used RV sales moving forward [15] - Management is optimistic about the scalability of their used RV supply chain and expects continued growth in this segment [27] Other Important Information - The company ended the quarter with approximately $118 million in cash and has paid down $75 million of long-term debt since October [30] - The balance sheet is described as the strongest ever, with significant inventory and real estate holdings [20] Q&A Session Summary Question: ASPs and Competitor Pricing - Management views ASP weakness as an opportunity to grow the customer base rather than a problem, focusing on profitability rather than competitor pricing [33][34] Question: Used Gross Profit Margin Sustainability - Management expects used gross profit margins to remain in the range of 19% to 19.5% for the back half of the year [39] Question: Changes in Pricing Expectations - Management anticipates a continued decline in new RV pricing year over year, but expects seasonal improvements in ASPs [58][60] Question: Trade-in Cycle and Customer Retention - The company emphasizes multiple customer touchpoints post-purchase to enhance retention and upsell opportunities [94][96] Question: M&A Activity - Management clarified that they are not on pause for M&A but are being more thoughtful about capital allocation while looking for opportunities [73] Question: Impact of Tariffs on Pricing - Management indicated that any increase in new pricing could lead to margin expansion due to their contract manufacturing advantages [81]

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]