Camping World Holdings, Inc. (NYSE: CWH) (the “Company” or
“CWH”), the World’s Largest Recreational Vehicle Dealer, today
reported results for the fourth quarter and full year ended
December 31, 2024.
Marcus Lemonis, Chairman and Chief Executive Officer of CWH
stated, “Our combined new and used same store unit sales grew for
the second quarter in a row, with increased revenue, increased
gross profit and improved adjusted EBITDA, a testament to our
unwavering focus on product development, affordability, and used
inventory procurement. We see green shoots unfolding across the
broader RV landscape, supporting our expectation for more stable
industry trends throughout 2025.”
Matthew Wagner, President of CWH commented, “We are very pleased
with our momentum to start 2025. Our same store used unit trends
increased high-teens percentages year-over-year in January, and
same store new units increased low-singles, in line with our
expectations. This early season performance gives us confidence in
achieving the 2025 guideposts that we provided on our last
call.”
Mr. Lemonis concluded, “The organization is positioned
exceptionally well for organic and inorganic growth in 2025. Our
focus rests solely on selling more RVs, cost discipline, and
driving significantly improved profitability across our
enterprise.”
Fourth Quarter-over-Quarter Operating Highlights
- Revenue was $1.2 billion for the fourth quarter, an increase of
$95.1 million, or 8.6%.
- New vehicle revenue was $497.5 million for the fourth quarter,
an increase of $48.1 million, or 10.7%, and new vehicle unit sales
were 11,575 units, an increase of 858 units, or 8.0%. Used vehicle
revenue was $348.1 million for the fourth quarter, an increase of
$26.5 million, or 8.2%, and used vehicle unit sales were 10,573
units, an increase of 1,081 units, or 11.4%. Combined new and used
vehicle unit sales were 22,148, an increase of 1,939 units, or
9.6%.
- Average selling price of new vehicles sold increased 2.5% and
average selling price of used vehicles sold decreased 2.8%.
- Same store new vehicle unit sales increased 4.5% for the fourth
quarter and same store used vehicle unit sales increased 4.0%.
Combined same store new and used vehicle unit sales increased
4.2%.
- Products, services and other revenue was $181.4 million, an
increase of $2.4 million, or 1.4%, driven largely by the increase
in used vehicles sold leading to an increase in retail product
attachment to vehicle sales as used vehicles experience higher
retail product attachment than new vehicles, which was partially
offset by the divestiture of our RV furniture business in May
2024.
- New vehicle gross margin was 15.2%, a decrease of 372 basis
points, driven primarily by a slightly higher mix of class B and C
motorized units in 2024, lower manufacturer promotional incentives,
and slightly higher cost of 2025 model year new vehicles, partially
offset by the 2.5% higher average selling price. Used vehicle gross
margin was 18.7%, an increase of 368 basis points, as a result of
the discounting of higher-cost used vehicles in the fourth quarter
of 2023, partially offset by the 2.8% lower average selling
price.
- Gross profit was $376.9 million, an increase of $33.5 million,
or 9.7%, and total gross margin was 31.3%, an increase of 33 basis
points. The gross profit increase was mainly driven by $17.1
million higher finance and insurance, net (“F&I”) gross profit
largely from the 9.6% increase in combined new and used vehicle
unit sales and new F&I offerings, $16.8 million higher used
vehicle gross profit from the increase in used vehicle unit sales
and gross margin as discussed above, and $11.1 million higher
products, service and other gross profit as a byproduct of the
higher used vehicle sales and higher gross margins from the
divestiture of our RV furniture business in May 2024. These gross
profit increases were partially offset by lower gross margins from
new vehicles as discussed above.
- Selling, general and administrative expenses (“SG&A”) were
$367.8 million, an increase of $30.7 million, or 9.1%. This
increase was primarily driven by $26.2 million of increased
employee compensation costs excluding equity-based compensation and
including commissions, due in part to an over $6.0 million increase
in health insurance claim costs, and $6.3 million of additional
advertising expenses. SG&A Excluding Stock-Based
Compensation(1) (“SBC”) was $362.4 million, an increase of $30.7
million, or 9.3%.
- Floor plan interest expense was $17.1 million, a decrease of
$4.7 million, or 21.6%, and other interest expense, net was $32.3
million, a decrease of $3.1 million, or 8.7%. These decreases were
primarily as a result of lower interest rates, and, to a lesser
extent, lower principal balances.
- Net loss(2) was $(59.5) million for the fourth quarter of 2024,
a decrease of $12.0 million, or 25.1%. Adjusted EBITDA(1) was
$(2.5) million, an increase of $6.4 million, or 72.1%.
- Diluted loss per share of Class A common stock(2) was $(0.56),
a decrease of $0.10, or 21.7%. Adjusted loss per share – diluted(1)
(2) of Class A common stock was $(0.47), a decrease of $0.03, or
6.8%.
- The total number of our store locations was 206 as of December
31, 2024, a net increase of four store locations from December 31,
2023, or 2.0%.
Full Year-over-Year Operating Highlights
- Revenue was $6.1 billion, a decrease of $126.5 million, or
2.0%.
- New vehicle revenue was $2.8 billion, an increase of $249.4
million, or 9.7%, and new vehicle unit sales were 70,484 units, an
increase of 11,753 units, or 20.0%. Used vehicle revenue was $1.6
billion, a decrease of $365.8 million, or 18.5%, and used vehicle
unit sales were 51,032 units, a decrease of 5,791 units, or 10.2%.
Combined new and used vehicle unit sales were 121,516, an increase
of 5,962 units, or 5.2%.
- Average selling price of new vehicles declined 8.6% driven
primarily by the lower cost of 2024 model year travel trailers and
discounting of pre-2024 model year new vehicles. Average selling
price of used vehicles declined 9.2% due to discounting of used
vehicles in response to declines in new vehicle prices.
- Same store new vehicle unit sales increased 15.0% and same
store used vehicle unit sales decreased 14.6%. Combined same store
new and used vehicle unit sales were relatively flat at an increase
of 0.3%.
- Products, services and other revenue was $820.1 million, a
decline of 49.9 million, or 5.7%, driven largely by a reduction in
sales activity resulting from our Active Sports Restructuring, the
divestiture of our RV furniture business in May 2024, and fewer
used vehicles sold leading to a decline in retail product
attachment to vehicle sales as used vehicles experience higher
retail product attachment than new vehicles.
- Gross profit was $1.8 billion, a decrease of $53.2 million, or
2.8%, and total gross margin was 29.9%, a decrease of 25 basis
points. The gross profit decline was mainly driven by the lower
average selling prices on new and used vehicles, which was
partially offset by the lower average cost of new and used
vehicles, and a nonrecurring $5.5 million in savings from
finalizing contract negotiations to exit an arrangement with a
service partner for Good Sam Services and Plans in 2023. These
decreases were partially offset by improved gross margins for
products, services and other driven largely by the divestiture of
our RV furniture business in May 2024.
- SG&A was $1.6 billion, an increase of $34.1 million, or
2.2%. This increase was primarily driven by $29.4 million of
additional advertising expenses, and $7.3 million of additional
employee compensation costs, consisting of a $9.3 million increase
in employee cash compensation expenses, partially offset by a $2.0
million decrease in SBC expenses. SG&A Excluding SBC(1) was
also $1.6 billion, an increase of $36.1 million, or 2.4%.
- Floor plan interest expense was $95.1 million, an increase of
$12.0 million, or 14.5%, and other interest expense, net was $140.4
million, an increase of $5.2 million, or 3.8%. These increases were
primarily a result of higher principal balances and higher average
interest rates.
- Net loss(2) was $(78.9) million, a change of $131.8 million
from net income of $52.9 million in 2023. Adjusted EBITDA(1) was
$178.8 million, a decrease of $107.4 million, or 37.5%.
- Diluted loss per share of Class A common stock was $(0.80), a
change of $1.37 from $0.57 in diluted earnings per share of Class A
common stock(2) in 2023. Adjusted loss per share – diluted(1) of
Class A common stock was $(0.40), a change of $1.24 from $0.84 in
adjusted earnings per share – diluted of Class A common stock(2) in
2023.
(1)
Adjusted (loss) earnings per share –
diluted, Adjusted EBITDA, and SG&A Excluding SBC are non-GAAP
measures. For a reconciliation of these non-GAAP measures to the
most directly comparable GAAP measures, see the “Non-GAAP Financial
Measures” section later in this press release
(2)
Certain 2023 amounts, including income tax
benefit and net (loss) income, reflect the correction of errors
that were immaterial to previously-reported consolidated financial
statements. For additional information, see below under “Revisions
for Correction of Immaterial Errors”.
Revisions for Correction of Immaterial Errors
The Company corrected for errors that were immaterial to
previously-reported consolidated financial statements. These errors
were identified in connection with the preparation of the financial
statements for the year ended December 31, 2024 and related
primarily to the measurement of the realizable portion of the
Company’s outside basis difference deferred tax asset in the
operating partnership, CWGS Enterprises, LLC (“CWGS, LLC”). The
Company evaluated the materiality of these errors both
qualitatively and quantitatively in accordance with Staff
Accounting Bulletin (“SAB”) No. 99, Materiality, and SAB No. 108,
Considering the Effects of Prior Year Misstatements When
Quantifying Misstatements in Current Year Financial Statements, and
determined the effect of these corrections was not material to the
previously issued financial statements. However, correcting the
cumulative error during the year ended December 31, 2024 would have
been material to the current period. Therefore, the amounts in the
previous periods have been revised to reflect the correction of
these errors. The Company expects to disclose in its Annual Report
on Form 10-K that, as part of its evaluation of its internal
control over financial reporting, the Company identified a new
material weakness in its internal controls that existed as of
December 31, 2024, specifically related to the review of the
measurement of the realizable portion of the Company’s outside
basis difference deferred tax asset in CWGS, LLC, which pertained
to these revisions.
The following table presents the effect of the error correction
on the Company’s consolidated balance sheet for the period
indicated:
As of December 31,
2023
($ in thousands)
As Previously Reported
Adjustment
As Corrected
Deferred tax assets, net
$
157,326
$
43,768
$
201,094
Total assets
4,845,684
43,768
4,889,452
Additional paid-in capital
98,280
33,385
131,665
Retained earnings
185,244
10,383
195,627
Total stockholders' equity attributable to
Camping World Holdings, Inc.
124,584
43,768
168,352
Total stockholders' equity
214,207
43,768
257,975
Total liabilities and stockholders'
equity
4,845,684
43,768
4,889,452
The following table presents the effect of the error corrections
on the consolidated statements of income for the periods
indicated:
Three Months Ended December
31, 2023
Year Ended December 31,
2023
($ in thousands except per share
amounts)
As Previously Reported
Adjustment
As Corrected
As Previously Reported
Adjustment
As Corrected
Income tax benefit
$
18,732
$
2,328
$
21,060
$
1,199
$
2,328
$
3,527
Net (loss) income
(49,918
)
2,328
(47,590
)
50,601
2,328
52,929
Net (loss) income attributable to Camping
World Holdings, Inc.
(16,789
)
2,328
(14,461
)
31,044
2,328
33,372
(Loss) earnings per share of Class A
common stock:
Basic
$
(0.37
)
$
0.05
$
(0.32
)
$
0.70
$
0.05
$
0.75
Diluted
$
(0.49
)
$
0.03
$
(0.46
)
$
0.55
$
0.02
$
0.57
The error corrections did not change net cash provided by
operating activities or any investing or financing activities in
the summary of consolidated statements of cash flows for the year
ended December 31, 2023.
Earnings Conference Call and Webcast Information
A conference call to discuss the Company’s fourth quarter 2024
financial results is scheduled for February 26, 2025, at 7:30 am
Central Time. Investors and analysts can participate on the
conference call by dialing 1-844-826-3035 (international callers
please dial 1-412-317-5195) and using conference ID# 10196901.
Interested parties can also listen to a live webcast or replay of
the conference call by logging on to the Investor Relations section
on the Company’s website at http://investor.campingworld.com. The
replay of the conference call webcast will be available on the
investor relations website for approximately 90 days.
Presentation
This press release presents historical results for the periods
presented for the Company and its subsidiaries, which are presented
in accordance with accounting principles generally accepted in the
United States (“GAAP”), unless noted as a non-GAAP financial
measure. The Company’s initial public offering and related
reorganization transactions that occurred on October 6, 2016
resulted in the Company as the sole managing member of CWGS, LLC,
with sole voting power in and control of the management of CWGS,
LLC. As of December 31, 2024, the Company owned 61.0% of CWGS, LLC.
Accordingly, the Company consolidates the financial results of
CWGS, LLC and reports a non-controlling interest in its
consolidated financial statements. Unless otherwise indicated, all
financial comparisons in this press release compare our financial
results for the fourth quarter and full year ended December 31,
2024 to our financial results from the fourth quarter and full year
ended December 31, 2023, respectively.
About Camping World Holdings, Inc.
Camping World Holdings, Inc., headquartered in Lincolnshire, IL,
(together with its subsidiaries) is the world’s largest retailer of
RVs and related products and services. Through Camping World and
Good Sam brands, our vision is to build a business that makes RVing
and other outdoor adventures fun and easy. We strive to build
long-term value for our customers, employees, and stockholders by
combining a unique and comprehensive assortment of RV products and
services with a national network of RV dealerships, service centers
and customer support centers along with the industry’s most
extensive online presence and a highly trained and knowledgeable
team of associates serving our customers, the RV lifestyle, and the
communities in which we operate. We also believe that our Good Sam
organization and family of highly specialized services and plans,
including roadside assistance, protection plans and insurance,
uniquely enables us to connect with our customers as stewards of an
outdoor and recreational lifestyle. With RV sales and service
locations in 43 states, Camping World has grown to become the prime
destination for everything RV. For more information, visit
www.CampingWorld.com.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. All statements contained in this press release that do not
relate to matters of historical fact should be considered
forward-looking statements, including, without limitation,
statements about macroeconomic and industry trends, inventory
strategy, business plans and goals, future growth of our
operations, including organic and inorganic growth, and future
financial results and position. These forward-looking statements
are based on management’s current expectations.
These statements are neither promises nor guarantees, but
involve known and unknown risks, uncertainties and other important
factors that may cause our actual results, performance or
achievements to be materially different from any future results,
performance or achievements expressed or implied by the
forward-looking statements, including, but not limited to, the
following: general economic conditions, including inflation,
interest rates and tariffs; the availability of financing to us and
our customers; fuel shortages, high prices for fuel or changes in
energy sources; the success of our manufacturers; changes in
consumer preferences; competition in our industry; risks related to
acquisitions, new store openings and expansion into new markets;
our failure to maintain the strength and value of our brands; our
ability to manage our inventory; fluctuations in our same store
sales; the cyclical and seasonal nature of our business; our
dependence on the availability of adequate capital and risks
related to our debt; our ability to execute and achieve the
expected benefits of our cost cutting initiatives; our reliance on
our fulfillment and distribution centers; impacts from natural
disasters, including pandemics and health crises; our dependence on
our relationships with third party suppliers and lending
institutions; risks associated with selling goods manufactured
abroad; our ability to retain senior executives and attract and
retain other qualified employees; risks associated with leasing
substantial amounts of space; risks associated with our private
brand offerings; we may incur asset impairment charges for
goodwill, intangible assets or other long-lived assets; tax risks;
our private brand offerings exposing us to various risks;
regulatory risks; data privacy and cybersecurity risks; risks
related to our intellectual property; the impact of ongoing or
future lawsuits against us and certain of our officers and
directors; risks related to climate change and other environmental,
social and governance matters; and risks related to our
organizational structure.
These and other important factors discussed under the caption
“Risk Factors” in our Annual Report on Form 10‑K for the year ended
December 31, 2023, as updated by our Annual Report on Form 10-K for
the year ended December 31, 2024 following the date hereof, and our
other reports filed with the SEC could cause actual results to
differ materially from those indicated by the forward-looking
statements made in this press release. Any such forward-looking
statements represent management’s estimates as of the date of this
press release. While we may elect to update such forward-looking
statements at some point in the future, we disclaim any obligation
to do so, even if subsequent events cause our views to change,
except as required under applicable law. These forward-looking
statements should not be relied upon as representing our views as
of any date subsequent to the date of this press release.
Future declarations of quarterly dividends, if any, are subject
to the determination and discretion of the Company’s Board of
Directors based on its consideration of various factors, including
the Company’s results of operations, financial condition, level of
indebtedness, anticipated capital requirements, contractual
restrictions, restrictions in its debt agreements, restrictions
under applicable law, receipt of excess tax distributions from CWGS
Enterprises, LLC, its business prospects and other factors that the
Company’s Board of Directors may deem relevant.
We intend to use our official Facebook, X (formerly known as
Twitter), and Instagram accounts, each at the handle @CampingWorld,
as well as the investor page of our website,
investor.campingworld.com, as a distribution channel of material
information about the Company and for complying with our disclosure
obligations under Regulation FD. The information we post through
these social media channels and on our investor webpage may be
deemed material. Accordingly, investors should subscribe to these
accounts and our investor alerts, in addition to following our
press releases, SEC filings, public conference calls and webcasts.
These social media channels may be updated from time to time.
Camping World Holdings, Inc. and
Subsidiaries
Consolidated Statements of Operations
(unaudited)
(In Thousands Except Per Share
Amounts)
Three Months Ended
Year Ended
December 31,
December 31,
2024
2023
2024
2023
Revenue:
Good Sam Services and Plans
$
45,505
$
46,533
$
194,575
$
193,827
RV and Outdoor Retail
New vehicles
497,533
449,416
2,825,640
2,576,278
Used vehicles
348,148
321,697
1,613,849
1,979,632
Products, service and other
181,431
179,008
820,111
870,038
Finance and insurance, net
118,993
101,920
599,718
562,256
Good Sam Club
12,854
10,759
46,081
44,516
Subtotal
1,158,959
1,062,800
5,905,399
6,032,720
Total revenue
1,204,464
1,109,333
6,099,974
6,226,547
Costs applicable to revenue (exclusive of
depreciation and amortization shown separately below):
Good Sam Services and Plans
18,651
15,547
70,726
59,391
RV and Outdoor Retail
New vehicles
421,965
364,421
2,418,169
2,175,819
Used vehicles
282,951
273,277
1,317,152
1,574,238
Products, service and other
102,919
111,588
463,640
533,625
Good Sam Club
1,062
1,059
4,791
4,825
Subtotal
808,897
750,345
4,203,752
4,288,507
Total costs applicable to revenue
827,548
765,892
4,274,478
4,347,898
Gross profit (exclusive of depreciation
and amortization shown separately below):
Good Sam Services and Plans
26,854
30,986
123,849
134,436
RV and Outdoor Retail
New vehicles
75,568
84,995
407,471
400,459
Used vehicles
65,197
48,420
296,697
405,394
Products, service and other
78,512
67,420
356,471
336,413
Finance and insurance, net
118,993
101,920
599,718
562,256
Good Sam Club
11,792
9,700
41,290
39,691
Subtotal
350,062
312,455
1,701,647
1,744,213
Total gross profit
376,916
343,441
1,825,496
1,878,649
Operating expenses:
Selling, general, and administrative
367,759
337,087
1,573,117
1,538,988
Depreciation and amortization
21,285
19,181
81,190
68,643
Long-lived asset impairment
2,706
—
15,061
9,269
Lease termination
288
(478
)
(2,297
)
(103
)
Loss (gain) on sale or disposal of
assets
330
(221
)
9,855
(5,222
)
Total operating expenses
392,368
355,569
1,676,926
1,611,575
(Loss) income from operations
(15,452
)
(12,128
)
148,570
267,074
Other expense
Floor plan interest expense
(17,068
)
(21,777
)
(95,121
)
(83,075
)
Other interest expense, net
(32,320
)
(35,397
)
(140,444
)
(135,270
)
Tax Receivable Agreement liability
adjustment
—
762
—
2,442
Other expense, net
(2,925
)
(110
)
(3,262
)
(1,769
)
Total other expense
(52,313
)
(56,522
)
(238,827
)
(217,672
)
(Loss) income before income taxes
(67,765
)
(68,650
)
(90,257
)
49,402
Income tax benefit
8,221
21,060
11,377
3,527
Net (loss) income
(59,544
)
(47,590
)
(78,880
)
52,929
Less: net (loss) income attributable to
non-controlling interests
27,942
33,129
40,243
(19,557
)
Net (loss) income attributable to Camping
World Holdings, Inc.
$
(31,602
)
$
(14,461
)
$
(38,637
)
$
33,372
(Loss) earnings per share of Class A
common stock:
Basic
$
(0.56
)
$
(0.32
)
$
(0.80
)
$
0.75
Diluted
$
(0.56
)
$
(0.46
)
$
(0.80
)
$
0.57
Weighted average shares of Class A common
stock outstanding:
Basic
56,586
44,889
48,005
44,626
Diluted
56,586
84,934
48,005
84,972
Camping World Holdings, Inc. and
Subsidiaries
Supplemental Data (unaudited)
Three Months Ended December
31,
Increase
Percent
2024
2023
(decrease)
Change
Unit
sales
New vehicles
11,575
10,717
858
8.0
%
Used vehicles
10,573
9,492
1,081
11.4
%
Total
22,148
20,209
1,939
9.6
%
Average selling
price
New vehicles
$
42,983
$
41,935
$
1,048
2.5
%
Used vehicles
32,928
33,891
(963
)
(2.8
%)
Same store unit
sales(1)
New vehicles
10,250
9,809
441
4.5
%
Used vehicles
9,441
9,081
360
4.0
%
Total
19,691
18,890
801
4.2
%
Same store
revenue(1) ($ in 000s)
New vehicles
$
443,078
$
412,391
$
30,687
7.4
%
Used vehicles
310,651
301,696
8,955
3.0
%
Products, service and other
145,929
142,131
3,798
2.7
%
Finance and insurance, net
104,944
95,213
9,731
10.2
%
Total
$
1,004,602
$
951,431
$
53,171
5.6
%
Average gross profit
per unit
New vehicles
$
6,529
$
7,931
$
(1,402
)
(17.7
%)
Used vehicles
6,166
5,101
1,065
20.9
%
Finance and insurance, net per vehicle
unit
5,373
5,043
330
6.5
%
Total vehicle front-end yield(2)
11,728
11,645
83
0.7
%
Gross
margin
Good Sam Services and Plans
59.0
%
66.6
%
(758
)
bps
New vehicles
15.2
%
18.9
%
(372
)
bps
Used vehicles
18.7
%
15.1
%
368
bps
Products, service and other
43.3
%
37.7
%
561
bps
Finance and insurance, net
100.0
%
100.0
%
unch
Good Sam Club
91.7
%
90.2
%
158
bps
Subtotal RV and Outdoor Retail
30.2
%
29.4
%
81
bps
Total gross margin
31.3
%
31.0
%
33
bps
Retail
locations
RV dealerships
204
198
6
3.0
%
RV service & retail centers
2
4
(2
)
(50.0
%)
Total
206
202
4
2.0
%
RV and Outdoor
Retail inventories ($ in 000s)
New vehicles
$
1,241,533
$
1,378,403
$
(136,870
)
(9.9
%)
Used vehicles
413,546
464,833
(51,287
)
(11.0
%)
Products, parts, accessories and misc.
166,495
199,261
(32,766
)
(16.4
%)
Total RV and Outdoor Retail
inventories
$
1,821,574
$
2,042,497
$
(220,923
)
(10.8
%)
Vehicle inventory
per location ($ in 000s)
New vehicle inventory per dealer
location
$
6,086
$
6,962
$
(876
)
(12.6
%)
Used vehicle inventory per dealer
location
2,027
2,348
(321
)
(13.7
%)
Vehicle inventory
turnover(3)
New vehicle inventory turnover
1.8
1.8
0.0
2.0
%
Used vehicle inventory turnover
3.3
2.9
0.4
14.9
%
Other
data
Active Customers(4)
4,487,313
4,959,723
(472,410
)
(9.5
%)
Good Sam Club members (5)
1,753,798
2,027,353
(273,555
)
(13.5
%)
Service bays (6)
2,812
2,757
55
2.0
%
Finance and insurance gross profit as a %
of total vehicle revenue
14.1
%
13.2
%
85
bps
n/a
Same store locations
175
n/a
n/a
n/a
Year Ended December
31,
Increase
Percent
2024
2023
(decrease)
Change
Unit
sales
New vehicles
70,484
58,731
11,753
20.0
%
Used vehicles
51,032
56,823
(5,791
)
(10.2
%)
Total
121,516
115,554
5,962
5.2
%
Average selling
price
New vehicles
$
40,089
$
43,866
$
(3,777
)
(8.6
%)
Used vehicles
31,624
34,839
(3,215
)
(9.2
%)
Same store unit
sales(1)
New vehicles
62,915
54,692
8,223
15.0
%
Used vehicles
46,063
53,928
(7,865
)
(14.6
%)
Total
108,978
108,620
358
0.3
%
Same store
revenue(1) ($ in 000s)
New vehicles
$
2,527,743
$
2,408,770
$
118,973
4.9
%
Used vehicles
1,448,546
1,876,020
(427,474
)
(22.8
%)
Products, service and other
648,245
675,446
(27,201
)
(4.0
%)
Finance and insurance, net
537,293
530,815
6,478
1.2
%
Total
$
5,161,827
$
5,491,051
$
(329,224
)
(6.0
%)
Average gross profit
per unit
New vehicles
$
5,781
$
6,819
$
(1,038
)
(15.2
%)
Used vehicles
5,814
7,134
(1,320
)
(18.5
%)
Finance and insurance, net per vehicle
unit
4,935
4,866
69
1.4
%
Total vehicle front-end yield(2)
10,730
11,840
(1,110
)
(9.4
%)
Gross
margin
Good Sam Services and Plans
63.7
%
69.4
%
(571
)
bps
New vehicles
14.4
%
15.5
%
(112
)
bps
Used vehicles
18.4
%
20.5
%
(209
)
bps
Products, service and other
43.5
%
38.7
%
480
bps
Finance and insurance, net
100.0
%
100.0
%
unch
Good Sam Club
89.6
%
89.2
%
44
bps
Subtotal RV and Outdoor Retail
28.8
%
28.9
%
(10
)
bps
Total gross margin
29.9
%
30.2
%
(25
)
bps
Other
data
Finance and insurance gross profit as a %
of total vehicle revenue
13.5
%
12.3
%
117
bps
n/a
Same store locations
175
n/a
n/a
n/a
unch – unchanged
bps – basis points
n/a – not applicable
(1)
Our same store revenue and units
calculations for a given period include only those stores that were
open both at the end of the corresponding period and at the
beginning of the preceding fiscal year.
(2)
Front end yield is calculated as gross
profit from new vehicles, used vehicles and finance and insurance
(net), divided by combined new and used vehicle unit sales.
(3)
Inventory turnover is calculated as
vehicle costs applicable to revenue over the last twelve months
divided by the average quarterly ending vehicle inventory over the
last twelve months.
(4)
An Active Customer is a customer who has
transacted with us in any of the eight most recently completed
fiscal quarters prior to the date of measurement.
(5)
Excludes Good Sam Club members under the
free basic plan, which was introduced in November 2023 and provides
for limited participation in the loyalty point program without
access to the remaining member benefits.
(6)
A service bay is a fully-constructed bay
dedicated to service, installation, and collision offerings.
Camping World Holdings, Inc. and
Subsidiaries
Consolidated Balance Sheets
(unaudited)
(In Thousands Except Per Share
Amounts)
December 31,
December 31,
2024
2023
Assets
Current assets:
Cash and cash equivalents
$
208,422
$
39,647
Contracts in transit
61,222
60,229
Accounts receivable, net
120,412
128,070
Inventories
1,821,837
2,042,949
Prepaid expenses and other assets
58,045
48,353
Assets held for sale
1,350
29,864
Total current assets
2,271,288
2,349,112
Property and equipment, net
846,760
834,426
Operating lease assets
739,352
740,052
Deferred tax assets, net
215,140
201,094
Intangible assets, net
19,469
13,717
Goodwill
734,023
711,222
Other assets
37,245
39,829
Total assets
$
4,863,277
$
4,889,452
Liabilities and stockholders'
equity
Current liabilities:
Accounts payable
$
145,346
$
133,516
Accrued liabilities
118,557
149,096
Deferred revenues
92,124
92,366
Current portion of operating lease
liabilities
61,993
63,695
Current portion of finance lease
liabilities
7,044
17,133
Current portion of Tax Receivable
Agreement liability
—
12,943
Current portion of long-term debt
23,275
22,121
Notes payable – floor plan, net
1,161,713
1,371,145
Other current liabilities
70,900
68,536
Liabilities related to assets held for
sale
—
17,288
Total current liabilities
1,680,952
1,947,839
Operating lease liabilities, net of
current portion
764,113
763,958
Finance lease liabilities, net of current
portion
131,004
97,751
Tax Receivable Agreement liability, net of
current portion
150,372
149,866
Revolving line of credit
—
20,885
Long-term debt, net of current portion
1,493,318
1,498,958
Deferred revenues
63,642
66,780
Other long-term liabilities
94,927
85,440
Total liabilities
4,378,328
4,631,477
Commitments and contingencies
Stockholders' equity:
Preferred stock, par value $0.01 per share
– 20,000 shares authorized; none issued and outstanding
—
—
Class A common stock, par value $0.01 per
share – 250,000 shares authorized; 62,502 and 49,571 shares issued,
respectively; 62,502 and 45,020 shares outstanding,
respectively
625
496
Class B common stock, par value $0.0001
per share – 75,000 shares authorized; 39,466 and 39,466 shares
issued, respectively; 39,466 and 39,466 shares outstanding,
respectively
4
4
Class C common stock, par value $0.0001
per share – 0.001 share authorized, issued and outstanding
—
—
Additional paid-in capital
193,692
131,665
Treasury stock, at cost; none and 4,551
shares, respectively
—
(159,440
)
Retained earnings
132,241
195,627
Total stockholders' equity attributable to
Camping World Holdings, Inc.
326,562
168,352
Non-controlling interests
158,387
89,623
Total stockholders' equity
484,949
257,975
Total liabilities and stockholders'
equity
$
4,863,277
$
4,889,452
Camping World Holdings, Inc. and
Subsidiaries
Summary of Consolidated Statements of
Cash Flows (unaudited)
(In Thousands)
Year Ended December
31,
2024
2023
Net cash provided by operating
activities
$
245,159
$
310,807
Investing activities
Purchases of property and equipment
(90,837
)
(131,080
)
Proceeds from sale of property and
equipment
4,025
3,204
Purchases of real property
(9,602
)
(67,194
)
Proceeds from the sale of real
property
58,153
40,785
Purchases of businesses, net of cash
acquired
(72,323
)
(209,459
)
Proceeds from divestiture of business
19,957
—
Purchases of and loans to other
investments
—
(3,444
)
Purchases of intangible assets
(143
)
(2,218
)
Proceeds from sale of intangible
assets
2,595
—
Net cash used in investing activities
(88,175
)
(369,406
)
Financing activities
Proceeds from long-term debt
55,624
59,227
Payments on long-term debt
(80,939
)
(38,958
)
Net (payments) proceeds on notes payable –
floor plan, net
(217,857
)
59,280
Borrowings on revolving line of credit
43,000
—
Payments on revolving line of credit
(63,885
)
—
Payments on finance leases
(7,485
)
(5,497
)
Payments on sale-leaseback arrangement
(198
)
(187
)
Payment of debt issuance costs
(1,123
)
(937
)
Proceeds from issuance of Class A common
stock sold in a public offering, net of underwriter discounts and
commissions
333,356
—
Payments of stock offering costs
(408
)
—
Dividends on Class A common stock
(24,749
)
(66,831
)
Proceeds from exercise of stock
options
549
389
RSU shares withheld for tax
(5,412
)
(6,861
)
Distributions to holders of LLC common
units
(18,682
)
(31,510
)
Net cash provided by (used in) financing
activities
11,791
(31,885
)
Increase (decrease) in cash and cash
equivalents
168,775
(90,484
)
Cash and cash equivalents at beginning of
the period
39,647
130,131
Cash and cash equivalents at end of the
period
$
208,422
$
39,647
(Loss) Earnings Per Share
Basic (loss) earnings per share of Class A common stock is
computed by dividing net (loss) income attributable to Camping
World Holdings, Inc. by the weighted-average number of shares of
Class A common stock outstanding during the period. Diluted (loss)
earnings per share of Class A common stock is computed by dividing
net (loss) income attributable to Camping World Holdings, Inc. by
the weighted-average number of shares of Class A common stock
outstanding adjusted to give effect to potentially dilutive
securities.
The following table sets forth reconciliations of the numerators
and denominators used to compute basic and diluted (loss) earnings
per share of Class A common stock (unaudited):
Three Months Ended December
31,
Year Ended December
31,
(In thousands except per share
amounts)
2024
2023
2024
2023
Numerator:
Net (loss) income
$
(59,544
)
$
(47,590
)
$
(78,880
)
$
52,929
Less: net (loss) income attributable to
non-controlling interests
27,942
33,129
40,243
(19,557
)
Net (loss) income attributable to Camping
World Holdings, Inc. — basic
$
(31,602
)
$
(14,461
)
$
(38,637
)
$
33,372
Add: reallocation of net (loss) income
attributable to non-controlling interests from the assumed
redemption of common units of CWGS, LLC for Class A common
stock
—
(24,645
)
—
15,392
Net (loss) income attributable to Camping
World Holdings, Inc. — diluted
$
(31,602
)
$
(39,106
)
$
(38,637
)
$
48,764
Denominator:
Weighted-average shares of Class A common
stock outstanding — basic
56,586
44,889
48,005
44,626
Dilutive options to purchase Class A
common stock
—
—
—
20
Dilutive restricted stock units
—
—
—
281
Dilutive common units of CWGS, LLC that
are convertible into Class A common stock
—
40,045
—
40,045
Weighted-average shares of Class A common
stock outstanding — diluted
56,586
84,934
48,005
84,972
(Loss) earnings per share of Class A
common stock — basic
$
(0.56
)
$
(0.32
)
$
(0.80
)
$
0.75
(Loss) earnings per share of Class A
common stock — diluted
$
(0.56
)
$
(0.46
)
$
(0.80
)
$
0.57
Weighted-average anti-dilutive securities
excluded from the computation of diluted (loss) earnings per share
of Class A common stock:
Stock options to purchase Class A common
stock
156
199
175
50
Restricted stock units
1,824
2,074
1,979
1,364
Common units of CWGS, LLC that are
convertible into Class A common stock
39,895
—
40,007
—
Non-GAAP Financial Measures
To supplement our consolidated financial statements, which are
prepared and presented in accordance with accounting principles
generally accepted in the United States (“GAAP”), we use the
following non-GAAP financial measures: EBITDA; Adjusted EBITDA;
Adjusted EBITDA Margin; Adjusted Net (Loss) Income Attributable to
Camping World Holdings, Inc. – Basic; Adjusted Net (Loss) Income
Attributable to Camping World Holdings, Inc. – Diluted; Adjusted
(Loss) Earnings Per Share – Basic; Adjusted (Loss) Earnings Per
Share – Diluted; and SG&A Excluding SBC (collectively the
"Non-GAAP Financial Measures"). We believe that these Non-GAAP
Financial Measures, when used in conjunction with GAAP financial
measures, provide useful information about operating results,
enhance the overall understanding of past financial performance and
future prospects, and allow for greater transparency with respect
to the key metrics we use in our financial and operational decision
making. Certain of these Non-GAAP Financial Measures are also
frequently used by analysts, investors and other interested parties
to evaluate companies in the Company’s industry and are used by
management to evaluate our operating performance, to evaluate the
effectiveness of strategic initiatives and for planning purposes.
By providing these Non-GAAP Financial Measures, together with
reconciliations, we believe we are enhancing investors’
understanding of our business and our results of operations, as
well as assisting investors in evaluating how well we are executing
our strategic initiatives. In addition, our Senior Secured Credit
Facilities use Adjusted EBITDA, as calculated for our subsidiary
CWGS Group, LLC, to measure our compliance with covenants such as
the consolidated leverage ratio. The Non-GAAP Financial Measures
have limitations as analytical tools, and the presentation of this
financial information is not intended to be considered in isolation
or as a substitute for, or superior to, the financial information
prepared and presented in accordance with GAAP. They should not be
construed as an inference that the Company’s future results will be
unaffected by any items adjusted for in these Non-GAAP Financial
Measures. In evaluating these Non-GAAP Financial Measures, it is
reasonable to expect that certain of these items will occur in
future periods. However, we believe these adjustments are
appropriate because the amounts recognized can vary significantly
from period to period, do not directly relate to the ongoing
operations of our business and complicate comparisons of our
internal operating results and operating results of other companies
over time. Each of the normal recurring adjustments and other
adjustments described in this section and in the reconciliation
tables below help management with a measure of our core operating
performance over time by removing items that are not related to
day-to-day operations.
For periods beginning after December 31, 2023 for the Active
Sports Restructuring, we are no longer including the other
associated costs category of expenses relating to those
restructuring activities as restructuring costs for purposes of our
Non-GAAP Financial Measures, since these costs are not expected to
be significant in future periods.
Our earnings call on February 26, 2025 may present guidance that
includes Adjusted EBITDA. A full reconciliation of the forecasted
Adjusted EBITDA to its most-directly comparable GAAP metric cannot
be provided without unreasonable efforts due to the inherent
difficulty in forecasting and quantifying with reasonable accuracy
significant items required for the reconciliations.
The Non-GAAP Financial Measures that we use are not necessarily
comparable to similarly titled measures used by other companies due
to different methods of calculation.
EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin
We define “EBITDA” as net (loss) income before other interest
expense, net (excluding floor plan interest expense), provision for
income tax benefit (expense) and depreciation and amortization. We
define “Adjusted EBITDA” as EBITDA further adjusted for the impact
of certain noncash and other items that we do not consider in our
evaluation of ongoing operating performance. These items include,
among other things, long-lived asset impairment, lease termination,
gains and losses on sale or disposal of assets, net, SBC, Tax
Receivable Agreement liability adjustment, restructuring costs,
losses and gains and impairment on investments in equity
securities, restructuring costs related to the Active Sports
Restructuring, and other unusual or one-time items. We define
“Adjusted EBITDA Margin” as Adjusted EBITDA as a percentage of
total revenue. We caution investors that amounts presented in
accordance with our definitions of EBITDA, Adjusted EBITDA, and
Adjusted EBITDA Margin may not be comparable to similar measures
disclosed by our competitors, because not all companies and
analysts calculate EBITDA, Adjusted EBITDA, and Adjusted EBITDA
Margin in the same manner. We present EBITDA, Adjusted EBITDA, and
Adjusted EBITDA Margin because we consider them to be important
supplemental measures of our performance and believe they are
frequently used by securities analysts, investors and other
interested parties in the evaluation of companies in our industry.
Management believes that investors’ understanding of our
performance is enhanced by including these Non-GAAP Financial
Measures as a reasonable basis for comparing our ongoing results of
operations.
The following table reconciles EBITDA, Adjusted EBITDA and
Adjusted EBITDA Margin to the most directly comparable GAAP
financial performance measures (unaudited):
Three Months Ended December
31,
Year Ended December
31,
($ in thousands)
2024
2023
2024
2023
EBITDA and Adjusted EBITDA:
Net (loss) income
$
(59,544
)
$
(47,590
)
$
(78,880
)
$
52,929
Other interest expense, net
32,320
35,397
140,444
135,270
Depreciation and amortization
21,285
19,181
81,190
68,643
Income tax benefit
(8,221
)
(21,060
)
(11,377
)
(3,527
)
Subtotal EBITDA
(14,160
)
(14,072
)
131,377
253,315
Long-lived asset impairment (a)
2,706
—
15,061
9,269
Lease termination (b)
288
(478
)
(2,297
)
(103
)
Loss (gain) on sale or disposal of assets,
net (c)
330
(221
)
9,855
(5,222
)
SBC (d)
5,418
5,770
21,585
24,086
Tax Receivable Agreement liability
adjustment (e)
—
(762
)
—
(2,442
)
Restructuring costs (f)
—
732
—
5,540
Loss and/or impairment on investments in
equity securities (g)
2,925
110
3,262
1,770
Adjusted EBITDA
$
(2,493
)
$
(8,921
)
$
178,843
$
286,213
Three Months Ended December
31,
Year Ended December
31,
(as percentage of total revenue)
2024
2023
2024
2023
Adjusted EBITDA margin:
Net (loss) income margin
(4.9
%)
(4.3
%)
(1.3
%)
0.9
%
Other interest expense, net
2.7
%
3.2
%
2.3
%
2.2
%
Depreciation and amortization
1.8
%
1.7
%
1.3
%
1.1
%
Income tax benefit
(0.7
%)
(1.9
%)
(0.2
%)
(0.1
%)
Subtotal EBITDA margin
(1.2
%)
(1.3
%)
2.2
%
4.1
%
Long-lived asset impairment (a)
0.2
%
—
0.2
%
0.1
%
Lease termination (b)
0.0
%
(0.0
%)
(0.0
%)
(0.0
%)
Loss (gain) on sale or disposal of assets,
net (c)
0.0
%
(0.0
%)
0.2
%
(0.1
%)
SBC (d)
0.4
%
0.5
%
0.4
%
0.4
%
Tax Receivable Agreement liability
adjustment (e)
—
(0.1
%)
—
(0.0
%)
Restructuring costs (f)
—
0.1
%
—
0.1
%
Loss and/or impairment on investments in
equity securities (g)
0.2
%
0.0
%
0.1
%
0.0
%
Adjusted EBITDA margin
(0.2
%)
(0.8
%)
2.9
%
4.6
%
(a)
Represents long-lived asset impairment
charges related to the RV and Outdoor Retail segment.
(b)
Represents the gains and losses on the
termination of operating leases resulting from lease termination
fees and the derecognition of the operating lease assets and
liabilities.
(c)
Represents an adjustment to eliminate the
gains and losses on disposals and sales of various assets.
(d)
Represents noncash SBC expense relating to
employees, directors, and consultants of the Company.
(e)
Represents an adjustment to eliminate the
gains on remeasurement of the Tax Receivable Agreement primarily
due to changes in the Company’s blended statutory income tax
rate.
(f)
Represents restructuring costs relating to
the Active Sports Restructuring. These restructuring costs include
one-time termination benefits, incremental inventory reserve
charges, and other associated costs. These costs exclude lease
termination costs, which are presented separately above.
(g)
Represents loss and/or impairment on
investments in equity securities and interest income relating to
any notes receivables with those investments. These amounts are
included in other expense, net in the consolidated statements of
operations. During the three months ended December 31, 2024, this
amount included a $0.9 million impairment on investments in equity
securities. During the years ended December 31, 2024 and 2023,
these amounts included a $0.9 million and a $1.3 million impairment
on investments in equity securities, respectively.
Adjusted Net (Loss) Income Attributable to Camping World
Holdings, Inc. and Adjusted (Loss) Earnings Per Share
We define “Adjusted (Loss) Net Income Attributable to Camping
World Holdings, Inc. – Basic” as net income (loss) attributable to
Camping World Holdings, Inc. adjusted for the impact of certain
noncash and other items that we do not consider in our evaluation
of ongoing operating performance. These items include, among other
things, long-lived asset impairment, lease termination costs, gains
and losses on sale or disposal of assets, net, SBC, Tax Receivable
Agreement liability adjustment, restructuring costs, loss (gain)
and/or impairment on investments in equity securities, other
unusual or one-time items, the income tax (expense) benefit effect
of these adjustments, and the effect of net (loss) income
attributable to non-controlling interests from these
adjustments.
We define “Adjusted Net (Loss) Income Attributable to Camping
World Holdings, Inc. – Diluted” as Adjusted Net (Loss) Income
Attributable to Camping World Holdings, Inc. – Basic adjusted for
the reallocation of net (loss) income attributable to
non-controlling interests from stock options and restricted stock
units, if dilutive, or the assumed redemption, if dilutive, of all
outstanding common units in CWGS, LLC for shares of newly-issued
Class A common stock of Camping World Holdings, Inc.
We define “Adjusted (Loss) Earnings Per Share – Basic” as
Adjusted Net (Loss) Income Attributable to Camping World Holdings,
Inc. - Basic divided by the weighted-average shares of Class A
common stock outstanding. We define “Adjusted (Loss) Earnings Per
Share – Diluted” as Adjusted Net (Loss) Income Attributable to
Camping World Holdings, Inc. – Diluted divided by the
weighted-average shares of Class A common stock outstanding,
assuming (i) the redemption of all outstanding common units in
CWGS, LLC for newly-issued shares of Class A common stock of
Camping World Holdings, Inc., if dilutive, and (ii) the dilutive
effect of stock options and restricted stock units, if any. We
present Adjusted Net (Loss) Income Attributable to Camping World
Holdings, Inc. – Basic, Adjusted Net (Loss) Income Attributable to
Camping World Holdings, Inc. – Diluted, Adjusted (Loss) Earnings
Per Share – Basic, and Adjusted (Loss) Earnings Per Share – Diluted
because we consider them to be important supplemental measures of
our performance and we believe that investors’ understanding of our
performance is enhanced by including these Non-GAAP financial
measures as a reasonable basis for comparing our ongoing results of
operations.
The following table reconciles Adjusted Net (Loss) Income
Attributable to Camping World Holdings, Inc. – Basic, Adjusted Net
(Loss) Income Attributable to Camping World Holdings, Inc. –
Diluted, Adjusted (Loss) Earnings Per Share – Basic, and Adjusted
(Loss) Earnings Per Share – Diluted to the most directly comparable
GAAP financial performance measure:
Three Months Ended December
31,
Year Ended December
31,
(In thousands except per share
amounts)
2024
2023
2024
2023
Numerator:
Net (loss) income attributable to Camping
World Holdings, Inc.
$
(31,602
)
$
(14,461
)
$
(38,637
)
$
33,372
Adjustments related to basic
calculation:
Long-lived asset impairment (a):
Gross adjustment
2,706
—
15,061
9,269
Income tax expense for above adjustment
(b)
(397
)
—
(2,033
)
(1,233
)
Lease termination (c):
Gross adjustment
288
(478
)
(2,297
)
(103
)
Income tax (expense) benefit for above
adjustment (b)
(42
)
63
301
13
Loss (gain) on sale or disposal of assets
(d):
Gross adjustment
330
(221
)
9,855
(5,222
)
Income tax (expense) benefit for above
adjustment (b)
(49
)
23
(1,310
)
690
SBC (e):
Gross adjustment
5,418
5,770
21,585
24,086
Income tax expense for above adjustment
(b)
(800
)
(769
)
(2,963
)
(3,228
)
Tax Receivable Agreement liability
adjustment (f):
Gross adjustment
—
(762
)
—
(2,442
)
Income tax benefit for above adjustment
(b)
—
191
—
613
Restructuring costs (g):
Gross adjustment
—
732
—
5,540
Income tax expense for above adjustment
(b)
—
(97
)
—
(736
)
Loss and/or impairment on investments in
equity securities (h):
Gross adjustment
2,925
110
3,262
1,770
Income tax expense for above adjustment
(b)
(429
)
(15
)
(473
)
(237
)
Income tax benefit impact from LLC
conversion (i):
—
(2,008
)
—
(2,008
)
Adjustment to net (loss) income
attributable to non-controlling interests resulting from the above
adjustments (j)
(4,818
)
(2,776
)
(21,635
)
(16,683
)
Adjusted net (loss) income attributable to
Camping World Holdings, Inc. – basic
(26,470
)
(14,698
)
(19,284
)
43,461
Adjustments related to diluted
calculation:
Reallocation of net (loss) income
attributable to non-controlling interests from the dilutive
redemption of common units in CWGS, LLC (k)
—
(30,353
)
—
36,240
Income tax on reallocation of net (loss)
income attributable to non-controlling interests from the dilutive
redemption of common units in CWGS, LLC (l)
—
7,799
—
(8,341
)
Adjusted net (loss) income attributable to
Camping World Holdings, Inc. – diluted
$
(26,470
)
$
(37,252
)
$
(19,284
)
$
71,360
Denominator:
Weighted-average Class A common shares
outstanding – basic
56,586
44,889
48,005
44,626
Adjustments related to diluted
calculation:
Dilutive redemption of common units in
CWGS, LLC for shares of Class A common stock (m)
—
40,045
—
40,045
Dilutive options to purchase Class A
common stock (m)
—
—
—
20
Dilutive restricted stock units (m)
—
—
—
281
Adjusted weighted average Class A common
shares outstanding – diluted
56,586
84,934
48,005
84,972
Adjusted (loss) earnings per share -
basic
$
(0.47
)
$
(0.33
)
$
(0.40
)
$
0.97
Adjusted (loss) earnings per share -
diluted
$
(0.47
)
$
(0.44
)
$
(0.40
)
$
0.84
Anti-dilutive amounts (n):
Numerator:
Reallocation of net (loss) income
attributable to non-controlling interests from the anti-dilutive
redemption of common units in CWGS, LLC (k)
$
(23,124
)
$
—
$
(18,608
)
$
—
Income tax on reallocation of net (loss)
income attributable to non-controlling interests from the
anti-dilutive redemption of common units in CWGS, LLC (l)
5,736
—
5,323
—
Denominator:
Anti-dilutive redemption of common units
in CWGS, LLC for shares of Class A common stock (n)
39,895
—
40,007
—
Anti-dilutive options to purchase Class A
common stock (n)
6
—
9
—
Anti-dilutive restricted stock units
(n)
313
202
268
—
Reconciliation of per share
amounts:
(Loss) earnings per share of Class A
common stock — basic
$
(0.56
)
$
(0.32
)
$
(0.80
)
$
0.75
Non-GAAP Adjustments (o)
0.09
(0.01
)
0.40
0.22
Adjusted (loss) earnings per share -
basic
$
(0.47
)
$
(0.33
)
$
(0.40
)
$
0.97
(Loss) earnings per share of Class A
common stock — diluted
$
(0.56
)
$
(0.46
)
$
(0.80
)
$
0.57
Non-GAAP Adjustments (o)
0.09
(0.01
)
0.40
0.23
Dilutive redemption of common units in
CWGS, LLC for shares of Class A common stock (p)
—
0.03
—
0.04
Adjusted (loss) earnings per share -
diluted
$
(0.47
)
$
(0.44
)
$
(0.40
)
$
0.84
(a)
Represents long-lived asset impairment
charges related to the RV and Outdoor Retail segment.
(b)
Represents the current and deferred income
tax expense or benefit effect of the above adjustments. This
assumption uses blended statutory tax rates between 25.0% and 25.3%
for the adjustments for the 2024 and 2023 periods, which represent
the estimated tax rates that would apply had the above adjustments
been included in the determination of our non-GAAP metric.
(c)
Represents the gains and losses on the
termination of operating leases resulting from lease termination
fees and the derecognition of the operating lease assets and
liabilities.
(d)
Represents an adjustment to eliminate the
gains and losses on disposals and sales of various assets.
(e)
Represents noncash SBC expense relating to
employees, directors, and consultants of the Company.
(f)
Represents an adjustment to eliminate the
gain on remeasurement of the Tax Receivable Agreement primarily due
to changes in the Company’s blended statutory income tax rate.
(g)
Represents restructuring costs relating to
Active Sports Restructuring during the three months and year ended
December 31, 2023. These restructuring costs include one-time
termination benefits, incremental inventory reserve charges, and
other associated costs. These costs exclude lease termination
costs, which are presented separately above.
(h)
Represents loss and/or impairment on
investments in equity securities and interest income relating to
any notes receivables with those investments. During the three
months ended December 31, 2024, this amount included a $0.9 million
impairment on investments in equity securities. During the years
ended December 31, 2024 and 2023, these amounts included a $0.9
million and a $1.3 million impairment on investments in equity
securities, respectively.
(i)
Represents income tax benefit relating to
the LLC Conversion, which was primarily from adjustments for
certain deferred tax assets that were written off or had changes in
their valuation allowance.
(j)
Represents the adjustment to net (loss)
income attributable to non-controlling interests resulting from the
above adjustments that impact the net (loss) income of CWGS, LLC.
This adjustment uses the non-controlling interest’s weighted
average ownership of CWGS, LLC of 41.4% and 47.1% for the three
months ended December 31, 2024 and 2023, respectively, and 45.5%
and 47.3% for the year ended December 31, 2024 and 2023,
respectively.
(k)
Represents the reallocation of net (loss)
income attributable to non-controlling interests from the impact of
the assumed change in ownership of CWGS, LLC from stock options,
restricted stock units, and/or common units of CWGS, LLC.
(l)
Represents the income tax expense effect
of the above adjustment for reallocation of net (loss) income
attributable to non-controlling interests. This assumption uses
blended statutory tax rates between 25.0% and 25.3% for the
adjustments for 2024 and 2023 periods.
(m)
Represents the impact to the denominator
for stock options, restricted stock units, and/or common units of
CWGS, LLC.
(n)
These amounts have not been considered in
our adjusted (loss) earnings per share – diluted amounts as the
effect of these items are anti-dilutive.
(o)
Represents the per share impact of the
Non-GAAP adjustments to net (loss) income detailed above (see (a)
through (j) above).
(p)
Represents the per share impact of stock
options, restricted stock units, and/or common units of CWGS, LLC
from the difference in their dilutive impact between the GAAP and
Non-GAAP (loss) earnings per share calculations.
Our “Up-C” corporate structure may make it difficult to compare
our results with those of companies with a more traditional
corporate structure. There can be a significant fluctuation in the
numerator and denominator for the calculation of our adjusted
earnings per share – diluted depending on if the common units in
CWGS, LLC are considered dilutive or anti-dilutive for a given
period. To improve comparability of our financial results, users of
our financial statements may find it useful to review our earnings
per share assuming the full redemption of common units in CWGS, LLC
for all periods, even when those common units would be
anti-dilutive. The relevant numerator and denominator adjustments
have been provided under “Anti-dilutive amounts” in the table above
(see (n) above).
SG&A Excluding SBC
We define “SG&A Excluding SBC” as SG&A before SBC
relating to SG&A. We caution investors that amounts presented
in accordance with our definition of SG&A Excluding SBC may not
be comparable to similar measures disclosed by our competitors,
because not all companies and analysts calculate SG&A Excluding
SBC in the same manner. We present SG&A Excluding SBC because
we believe that investors’ understanding of our performance and
drivers of our other Non-GAAP Financial Measures, such as Adjusted
EBITDA, is enhanced by including this Non-GAAP Financial Measure as
a reasonable basis for comparing our ongoing results of
operations.
The following table reconciles SG&A Excluding SBC to the
most directly comparable GAAP financial performance measure:
Three Months Ended December
31,
Year Ended December
31,
($ in thousands)
2024
2023
2024
2023
SG&A Excluding SBC:
SG&A
$
367,759
$
337,087
$
1,573,117
$
1,538,988
SBC - SG&A
(5,322
)
(5,371
)
(21,213
)
(23,191
)
SG&A Excluding SBC
$
362,437
$
331,716
$
1,551,904
$
1,515,797
As a percentage of gross profit
96.2
%
96.6
%
85.0
%
80.7
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250225834919/en/
Investors: Brett Andress InvestorRelations@campingworld.com
Media Outlets: PR-CWGS@CampingWorld.com
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