CWH
Camping World Holdings, INC
NYSE
8-K: Camping World Holdings Reports Mixed 2023 Results, Sees Positive Unit Growth in Early 2024
Sentiment:
Annual Results
21 February 2024 4:12 PM
Camping World Holdings reported a decrease in revenue and net income for 2023, but saw positive new vehicle unit growth starting in December and continuing into early 2024.
Worse than expected
The company's full-year revenue, net income, and adjusted EBITDA were all significantly lower than the previous year.
The company experienced a net loss for the fourth quarter.
The company reduced its annualized cash dividend by $1.00 per share.
Summary
- Camping World Holdings, Inc. announced its financial results for the year and fourth quarter ended December 31, 2023.
- Full-year revenue decreased by 10.6% to $6.2 billion, while used vehicle revenue reached a record $2.0 billion, a 5.4% increase.
- New vehicle revenue declined by 20.2% to $2.6 billion, and new vehicle unit sales decreased by 16.6%.
- The average selling price of new and used vehicles decreased by 4.3% and 4.8%, respectively.
- Gross profit for the year was $1.9 billion, a decrease of 17.0%, with a total gross margin of 30.2%, down 230 basis points.
- Net income for the year was $50.6 million, a decrease of 85.6% compared to the previous year.
- Adjusted EBITDA was $286.2 million, a decrease of 56.2%.
- For the fourth quarter, revenue decreased by 13.4% to $1.1 billion.
- Used vehicle revenue decreased by 18.1%, while new vehicle revenue decreased by 6.7%.
- The company experienced a net loss of $49.9 million for the fourth quarter.
- However, new vehicle same-store unit growth turned positive in December, with January and February trending up from mid-single to low-double digits.
- The company is aiming for 320 locations by 2028.
Sentiment
Score: 5
Explanation: The document presents mixed results. While there are positive signs of recovery in unit sales, the overall financial performance for 2023 was significantly worse than the previous year. The company is facing challenges related to declining prices and rising interest rates, but management is optimistic about future growth.
Positives
- New vehicle same-store unit growth turned positive in December 2023 and continued into early 2024.
- Used vehicle revenue and unit sales reached record levels for the full year 2023.
- The company has significantly improved its new unit inventory position.
- Camping World is outpacing the industry with a high percentage of 2024 models in stock.
- The company is seeing positive demand trends and is implementing cost reductions.
- The Good Sam segment and the service and parts portion of the business showed strength.
- The company is continuing its acquisition pace.
Negatives
- Full-year revenue decreased by 10.6% to $6.2 billion.
- New vehicle revenue declined by 20.2% to $2.6 billion.
- Net income for the year decreased by 85.6% to $50.6 million.
- Adjusted EBITDA decreased by 56.2% to $286.2 million.
- The company experienced a net loss of $49.9 million for the fourth quarter.
- Average selling prices for both new and used vehicles declined.
- Products, services, and other revenue decreased by 12.9% for the full year and 24.6% for the fourth quarter.
- Floor plan interest expense increased by 97.7% for the full year and 24.1% for the fourth quarter due to rising interest rates.
- Other interest expense increased by 78.6% for the full year and 36.2% for the fourth quarter due to rising interest rates.
- The company reduced its annualized cash dividend by $1.00 per share.
Risks
- General economic conditions, including inflation and interest rates, could impact the business.
- The availability of financing to the company and its customers is a risk.
- Changes in consumer preferences could affect demand.
- Competition in the industry could impact market share.
- The company's ability to manage inventory is a risk.
- The cyclical and seasonal nature of the business could lead to fluctuations in sales.
- Dependence on third-party suppliers and lending institutions is a risk.
- The company faces risks related to data privacy and cybersecurity.
- Ongoing or future lawsuits against the company and its officers and directors are a risk.
- Risks related to climate change and other environmental, social, and governance matters could impact the business.
Future Outlook
The company expects to deliver unit volume and strong earnings growth in 2024, while continuing its march to 320 locations by 2028. They also anticipate gross margin improvement beginning in the second quarter and continuing through the balance of the year.
Management Comments
- Marcus Lemonis, Chairman and CEO, stated that new vehicle same store unit growth turned positive in December, with January and February trending up.
- Matt Wagner, COO, commented that any reduction of new model pricing causes a reset of used vehicle values and a slowdown in used RV inventory purchases.
- Mr. Wagner also stated that positive demand trends, inventory discipline, strength in the Good Sam segment, acquisitions, and cost reductions give them confidence in delivering unit volume and strong earnings growth in 2024.
Industry Context
The RV industry has seen a slowdown in demand after a surge during the COVID-19 pandemic. Camping World's results reflect this trend, with decreased revenue and profitability. However, the positive unit growth in early 2024 suggests a potential recovery. The company's focus on used vehicles and its Good Sam segment aligns with broader industry trends of diversifying revenue streams.
Comparison to Industry Standards
- Camping World's performance is mixed when compared to industry standards. While the company experienced a significant decline in new vehicle sales, the used vehicle segment showed strength, which is a common trend in the current market.
- Companies like Thor Industries and Winnebago have also reported decreased sales in new RVs, indicating a broader industry slowdown. However, Camping World's focus on acquisitions and expansion to 320 locations by 2028 is a more aggressive growth strategy than some of its competitors.
- The company's gross margin decline is also in line with industry trends, as manufacturers and dealers are offering discounts to clear excess inventory. However, Camping World's ability to achieve positive unit growth in early 2024 is a positive sign compared to some competitors who are still struggling with inventory issues.
- The company's focus on the Good Sam segment is a differentiator, as it provides a recurring revenue stream that is less dependent on new RV sales. This is a strategy that other RV retailers are also exploring, but Camping World has a significant advantage due to its established brand and customer base.
Stakeholder Impact
- Shareholders will be impacted by the decreased net income and reduced dividend.
- Employees may be affected by cost-cutting measures.
- Customers may benefit from lower prices on new and used vehicles.
- Suppliers may experience changes in demand due to inventory adjustments.
- Creditors may be impacted by the company's financial performance and debt levels.
Next Steps
- The company will continue to focus on delivering unit volume and strong earnings growth in 2024.
- The company will continue its march to 320 locations by 2028.
- The company will focus on improving gross margins, particularly in the used vehicle segment.
- The company will continue to manage inventory levels and reduce costs.
Key Dates
- February 21, 2024: Date of the earnings announcement and press release.
- February 22, 2024: Date of the conference call to discuss the financial results.
- December 31, 2023: End of the fiscal year and fourth quarter.
Keywords
RV, Recreational Vehicles, Camping World, CWH, Financial Results, Revenue, Net Income, EBITDA, Used Vehicles, New Vehicles, Gross Margin, Inventory, Acquisitions, Good Sam, Retail
CWH
Camping World Holdings, INC
NYSE
Sector: TBD
Filings with Classifications
Better than expected
9 June 2025 8:00 PM
Beneficial Ownership Report
- The disclosure of a new 5.3% passive stake by a major institutional investor like Millennium Management is generally viewed as a positive signal for the company, indicating confidence from a sophisticated market participant.
Worse than expected
1 May 2025 5:04 PM
Quarterly Report
- The company reported a net loss, which is worse than breakeven or a profit.
- Active customer count decreased by 14.2% year-over-year.
- Good Sam Club membership decreased by 13.2% year-over-year.
Better than expected
29 April 2025 4:10 PM
Earnings Release
- The company's Adjusted EBITDA increased nearly 4x year-over-year.
- The company's net loss improved by 51.4% year-over-year.
Worse than expected
4 April 2025 4:05 PM
Definitive Proxy Statement
- The company experienced a net loss of $(78.9) million in 2024, compared to net income in previous years.
- Adjusted EBITDA decreased by 37.5% from 2023 to 2024.
- The company had a shortfall from the budgeted Adjusted EBITDA goal of $371.4 million with final consolidated Adjusted EBITDA performance of $178.8 million.
Worse than expected
28 February 2025 9:06 PM
Annual Results
- Revenue decreased from $6.23 billion to $6.10 billion.
- Net income decreased from $52.9 million to a net loss of $(78.9) million.
- Adjusted EBITDA decreased from $286.2 million to $178.8 million.
Better than expected
25 February 2025 4:10 PM
Earnings Release
- The company's Q4 results show improvements in revenue, gross profit, and adjusted EBITDA compared to the previous year, indicating a positive trend.
Worse than expected
13 February 2025 2:00 AM
Beneficial Ownership Amendment
- The document states that the previously disclosed belief that CWGS Holding, LLC and ML Acquisition Company, LLC would be dissolved by December 31, 2024, did not materialize. This non-occurrence of an expected event, particularly one that could simplify corporate structure, is a negative deviation from prior expectations.
Delay expected
13 February 2025 2:00 AM
Beneficial Ownership Amendment
- The dissolution of CWGS Holding, LLC and ML Acquisition Company, LLC, which was previously expected to occur by December 31, 2024, has been delayed indefinitely, as the Reporting Persons do not know when it may occur in the future.
Better than expected
14 January 2025 4:31 PM
Investor Presentation
- Camping World's new unit sales growth of 22% significantly outperformed the industry's decline of 13%.
Capital raise
1 November 2024 4:15 PM
Capital Raise Announcement
- The company is issuing 14,634,146 shares of Class A common stock at $20.50 per share.
- Underwriters have an option to purchase an additional 2,195,121 shares.
- The company expects to receive approximately $288.8 million in net proceeds from the offering.
Worse than expected
29 October 2024 4:05 PM
Quarterly Report
- The company's net income attributable to Camping World Holdings, Inc. decreased significantly year-over-year.
- The company's gross profit decreased by 4.7% year-over-year.
- The company's same store revenue decreased by 2.7%.
Worse than expected
28 October 2024 4:10 PM
Quarterly Report
- Net income decreased by 73.9% year-over-year, indicating a significant decline in profitability.
- Adjusted EBITDA decreased by 28.9% year-over-year, reflecting a substantial drop in operational performance.
- Diluted earnings per share decreased by 71.9% year-over-year, showing a sharp decline in earnings per share.
- Used vehicle revenue decreased by 24.2% year-over-year, indicating a significant drop in sales in this segment.
Worse than expected
13 September 2024 7:09 PM
SEC Form 4 Filing
- The CEO selling a significant amount of shares is worse than expected.
Capital raise
30 August 2024 4:06 PM
Credit Agreement Amendment
- The company has increased its borrowing capacity by $50 million.
- There is an option to request an additional $100 million in borrowing capacity.
Worse than expected
1 August 2024 4:05 PM
Quarterly Report
- The company's net income attributable to Camping World Holdings decreased significantly by 66.0% year-over-year.
- The company's same-store revenue decreased by 10.8%, indicating a decline in sales performance at established locations.
- The company's used vehicle revenue decreased by 22.8%, reflecting a significant downturn in that segment.
Worse than expected
31 July 2024 4:10 PM
Quarterly Report
- Net income decreased by 63.8% year-over-year.
- Adjusted EBITDA decreased by 24.2% year-over-year.
- Used vehicle revenue decreased by 22.8% year-over-year.
- The company experienced a decline in average selling prices for both new and used vehicles.
Worse than expected
3 May 2024 4:12 PM
Quarterly Report
- The company's net loss of $22.3 million is a significant decrease from the net income of $3.2 million in the same period last year.
- The company's total revenue decreased by 8.3% year-over-year, indicating a decline in sales.
- The company's used vehicle sales and gross profit experienced a substantial decline, impacting overall profitability.
- The company's active customer base decreased by 8.8% year-over-year, indicating a loss of market share.
Worse than expected
1 May 2024 4:10 PM
Quarterly Report
- The company reported a net loss of $50.8 million, a significant downturn from the previous year's net income of $4.9 million.
- Adjusted EBITDA decreased substantially by 86.5% to $8.2 million.
- Gross profit and gross margin decreased, impacting overall profitability.
Worse than expected
21 February 2024 4:12 PM
Annual Results
- The company's full-year revenue, net income, and adjusted EBITDA were all significantly lower than the previous year.
- The company experienced a net loss for the fourth quarter.
- The company reduced its annualized cash dividend by $1.00 per share.
Disclaimer: This summary was generated by artificial intelligence and its accuracy is not guaranteed. The information provided here is for general informational purposes only and does not constitute financial advice, recommendation, or endorsement of any kind. It may contain errors or omissions. You should not rely on this information to make financial decisions. Always seek the advice of a qualified financial professional before making any investment or financial decisions. Use of this information is at your own risk.