Camping World Holdings, Inc. Q4 FY2024 earnings call

• Successfully raised $330 million of growth capital in October and amended/extended RV floor plan facility with $300 million additional runway, totaling $2.15 billion.
• Reaffirmed guideposts: 10%-15% used unit growth, low single-digit new unit growth, significant gross profit improvement, 600-700 basis point SG&A improvement.
• Ended 2024 with record combined new and used market share at 11.2%, expect 12% market share in 2025, selling over 130,000 units.
• Used procurement process in full swing, January and February set records, expect purchase volume acceleration in core selling season.
• Expect explosive EBITDA growth in Q1 driven by gross margin and SG&A improvements. Focus on selling more RVs and making more money.
• Solid momentum in new and used businesses, record market share in Q4, growing pipeline of dealership acquisitions with four rooftops acquired in 2025 and two closing today, intending to close 4-6 more by end of spring.

For the fourth quarter, revenue was $1.2 billion, up 9%, driven by 8% increase in new unit sales and 11% increase in used unit sales. New vehicle gross margin was 15.2% due to lower promotional support. Used vehicle gross margin sequentially recovered to 18.7%. Good Sam had revenue growth of 1% and nearly $95 million of EBITDA in 2024. Product services and other continued to show growth, with core dealer service revenues encouraged despite the sale of the furniture business. New unit sales contributed 8% to revenue growth, used unit sales 11%, Good Sam contributed 1% to revenue growth, and product services and other showed growth.

• Reaffirm 10%-15% used unit growth, low single-digit new unit growth, significant gross profit improvement, 600-700 basis point SG&A improvement.
• Expect to set new market share record at 12% in 2025, selling over 130,000 units up from 121,500 in 2024.
• Anticipate EBITDA growth in Q1 primarily driven by gross margin and gross profit dollar improvement along with significant SG&A improvements.

• Factors such as inflation, interest rates, and market conditions can materially affect actual results.
• Risks related to acquisition pipelines and plans, including potential impact on capital allocation and financial performance.
• Potential impact of tariffs on new invoice pricing and its effect on market dynamics and margins.

Q: On new ASPs, how is it affected by rate coming down?

A: Marcus Lemonis explains it's related to seasonality, with ASPs typically starting lower in the year and rising as the selling season progresses, and rate reductions allowing customers to afford more expensive units without significant payment increase.

Q: Feedback from show season?

A: Marcus Lemonis states there's green shoots with good foot traffic, lead volume, better conversion from leads, and used inventory values indicating excitement in the RV industry, with cleaner inventory overall.

Q: Thoughts on 2025 industry retail demand?

A: Matthew Wagner mentions anticipating retail demand relatively flat year over year in a tight band, around 350,000, with wholesale higher than retail, and OEMs potentially raising prices around model year changeover.