CWH
Camping World Holdings, INC
NYSE
10-K: Camping World Holdings Reports Mixed Results in 2024, Focuses on Core RV Business
Sentiment:
Annual Results
28 February 2025 9:06 PM
Camping World Holdings, Inc. reports a decrease in revenue and net income for 2024, while highlighting strategic shifts and growth potential in its Good Sam business.
Worse than expected
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.
Summary
- Camping World Holdings, Inc. (CWH) reported a decrease in total revenue from $6.23 billion in 2023 to $6.10 billion in 2024.
- Net loss was $(78.9) million in 2024 compared to net income of $52.9 million in 2023.
- The company operates 206 store locations as of December 31, 2024.
- CWH is focusing on its core RV business and sees growth potential in its Good Sam services and plans.
- The company sold its RV furniture business in May 2024 and entered into a supply agreement with the buyer.
- The company is planning to open twelve RV dealerships and close two RV dealerships in the first quarter of 2025.
- The company identified a material weakness in internal controls related to the measurement of deferred tax assets.
- The company is taking steps to remediate the material weakness in internal controls.
Sentiment
Score: 5
Explanation: The document presents a mixed sentiment. While there are positives such as the strategic focus on the core RV business and growth potential in the Good Sam segment, the overall financial results show a decline in revenue and net income, and a material weakness in internal controls was identified.
Positives
- Good Sam Services and Plans revenue increased slightly.
- New vehicle revenue increased.
- The company is taking steps to remediate the material weakness in internal controls.
- The company is planning to open twelve RV dealerships and close two RV dealerships in the first quarter of 2025.
Negatives
- Total revenue decreased by 2.0% to $6.10 billion in 2024.
- Net loss was $(78.9) million in 2024 compared to net income of $52.9 million in 2023.
- Used vehicle revenue decreased by 18.5% to $1.61 billion.
- The company identified a material weakness in internal controls related to the measurement of deferred tax assets.
- Active Customers decreased from 4.96 million to 4.49 million.
Risks
- General economic conditions, including inflation and interest rates, could adversely affect the business.
- Fuel shortages or high fuel prices could negatively impact the RV industry.
- Changes in consumer preferences could lead to reduced sales.
- Competition in the RV market could reduce revenues and profitability.
- Delays in opening new store locations could have a material adverse effect.
- Failure to maintain the strength and value of the company's brands could have a material adverse effect.
- Cybersecurity risks could disrupt the business and lead to reduced sales and reputational damage.
- Material weaknesses in internal control over financial reporting could have a significant adverse effect on the business and the price of the common stock.
Future Outlook
The company expects Good Sam will continue to capitalize on the mutually beneficial relationship with the Camping World brand and store footprint but will be empowered to operate independently to drive growth. The company is planning to open twelve RV dealerships and close two RV dealerships in the first quarter of 2025.
Management Comments
- The greatest value to the Company can be achieved through retaining the Good Sam business.
- We have deepened our appreciation for the non-cyclical nature of the business and also recognize the large growth potential of the business over multiple vectors in the outdoor and recreational space.
Industry Context
The RV industry saw wholesale shipments increase by 6.6% in 2024 compared to 2023, according to the RV Industry Association.
Comparison to Industry Standards
- Comparable companies in the RV retail industry include Lazydays Holdings, Inc. and Blue Compass RV, Inc.
- Camping World's performance can be compared to these companies based on metrics such as revenue growth, gross margin, and EBITDA margin.
- The company's strategic shift towards its core RV business aligns with industry trends of focusing on high-demand products and services.
- The company's expansion through acquisitions is a common strategy in the fragmented RV retail market.
Stakeholder Impact
- Shareholders may be concerned about the decrease in revenue and net income.
- Employees may be affected by the restructuring and cost-cutting initiatives.
- Customers may benefit from the company's focus on its core RV business and the expansion of its Good Sam services.
- Suppliers may be affected by the company's changes in procurement practices and the sale of its RV furniture business.
Next Steps
- The company is planning to open twelve RV dealerships and close two RV dealerships in the first quarter of 2025.
- The company is taking steps to remediate the material weakness in internal controls.
Legal Proceedings
- The company is engaged in various legal actions, claims and proceedings arising in the ordinary course of business.
- The company does not believe that the ultimate resolution of such matters will have a material adverse effect on its business, financial condition or results of operations.
Related Party Transactions
- FR leases various RV dealership locations from managers and officers.
- In October 2022, the Company purchased a property to be used as office space in Lincolnshire, Illinois, for $4.5 million from the Company's Chairman and Chief Executive Officer.
- The company paid Adams Outdoor Advertising, Inc., an entity for which Andris A. Baltins serves as a member of its Board of Directors, $0.1 million for both of the years ended December 31, 2024 and December 31, 2023 for advertising services.
- The company paid Kaplan, Strangis and Kaplan, P.A., of which Andris A. Baltins is a member, and a member of the Company's Board of Directors $0.1 million and $0.2 million for the years ended December 31, 2023, and 2022, respectively, for legal services.
Key Dates
- 1966: Good Sam brand founded.
- 1997: Good Sam combined with Camping World.
- 2003: FreedomRoads founded.
- 2011: Camping World and Good Sam combined with FreedomRoads.
- March 8, 2016: Camping World Holdings, Inc. incorporated.
- October 6, 2016: Initial public offering (IPO) completed.
- January 17, 2024: Strategic review of Good Sam business announced.
- May 2024: Sale of RV furniture business assets completed.
- July 1, 2024: Matthew D. Wagner appointed as President and Thomas E. Kirn appointed as Chief Financial Officer.
- November 2024: Public offering of Class A common stock completed.
- November 2024: Agreement to acquire seven RV dealerships from Lazydays Holdings, Inc.
- December 31, 2024: End of fiscal year 2024.
- February 28, 2025: Date of report.
- First Quarter 2025: Expected closing of Lazydays acquisition and opening of twelve RV dealerships.
Keywords
Camping World, RV, revenue, Good Sam, dealership, financial results, internal controls, EBITDA, inventory, acquisitions
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.
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.
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.
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.