Camping World Holdings, Inc. Reports Third Quarter 2024 Results, Same Store New Unit Sales Increase 29% Year-Over-Year, Driving Record New Unit Market Share, Used Unit Volume Trends Sequentially Improve in October
Third Quarter-over-Quarter Operating Highlights
-
Revenue was
$1.7 billion for the third quarter, a decrease of$4.6 million , or 0.3%. -
New vehicle revenue was
$824.9 million for the third quarter, an increase of$145.7 million , or 21.5%, and new vehicle unit sales were 19,943 units, an increase of 4,738 units, or 31.2%. Used vehicle revenue was$447.2 million for the third quarter, a decrease of$143.0 million , or 24.2%, and used vehicle unit sales were 14,065 units, a decrease of 3,060 units, or 17.9%. Combined new and used vehicle unit sales were 34,008, an increase of 1,678 units, or 5.2%. - Average selling price of new vehicles declined 7.4% during the third quarter driven primarily by lower cost of 2024 model year travel trailers and discounting of pre-2024 model year new vehicles. Average selling price of used vehicles declined 7.7% during the third quarter due to discounting of used vehicles in response to declines in new vehicle prices.
- Same store new vehicle unit sales increased 28.8% for the third quarter and same store used vehicle unit sales decreased 20.5%. Combined same store new and used vehicle unit sales increased 2.3%.
-
Products, services and other revenue was
$224.8 million , a decline of$10.8 million , or 4.6%, driven largely by the divestiture of our RV furniture business inMay 2024 and fewer used vehicles sold led to a decline in retail product attachment to vehicle sales. -
Gross profit was
$498.5 million , a decrease of$24.6 million , or 4.7%, and total gross margin was 28.9%, a decrease of 134 basis points. The gross profit and gross margin 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 exit 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 inMay 2024 . -
Selling, general and administrative expenses (“SG&A”) were
$414.2 million , a decrease of$1.1 million , or 0.3% and SG&A Excluding Equity-based Compensation(2) was relatively unchanged at$408.7 million , a decrease of$1.2 million , or 0.3%. These decreases were driven by$5.4 million of reduced employee compensation costs excluding equity-based compensation,$1.3 million of reduced nonbillable service work, and$1.0 million of reduced rent expense, partially offset by$3.3 million of additional advertising expenses and$3.0 million of increased expenses from other outside service providers, such as professional fees, consultants, and software service providers. -
Floor plan interest expense was
$22.4 million , an increase of$2.6 million , or 12.9%, and other interest expense, net was$35.9 million , an increase of$0.6 million , or 1.8%. These increases were primarily as a result of higher principal balances, and, to a lesser extent an increase in the average floor plan borrowing rate. -
Net income was
$8.1 million for the third quarter of 2024, a decrease of$22.8 million , or 73.9%. Adjusted EBITDA(2) was$67.5 million , a decrease of$27.5 million , or 28.9%. These decreases were driven primarily by the$24.6 million decrease in gross profit. -
Diluted earnings per share of Class A common stock was
$0.09 , a decrease of$0.23 , or 71.9%. Adjusted earnings per share - diluted(2) of Class A common stock was$0.13 , a decrease of$0.26 , or 66.7%. -
The total number of our store locations was 207 as of
September 30, 2024 , a net decrease of two store locations fromSeptember 30, 2023 , or 1.0%.
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(1) |
|
New unit market share is calculated as total volume of the Company’s new units sold during any specified time period divided by the total number of new registrations as reported by |
(2) |
|
Adjusted earnings per share – diluted, Adjusted EBITDA, and SG&A Excluding Equity-based Compensation 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. |
Earnings Conference Call and Webcast Information
A conference call to discuss the Company’s third quarter 2024 financial results is scheduled for
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
About
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, dealership M&A, and future financial results and position, including vehicle margins and volume. 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 and interest rates; 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; risks related to our strategic review of our Good Sam business; 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; risks related to COVID-19; our ability to execute and achieve the expected benefits of our cost cutting or restructuring initiatives; our reliance on our fulfillment and distribution centers; natural disasters, including epidemic outbreaks; 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
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
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,
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Consolidated Statements of Operations (unaudited) | ||||||||||||||||
(In Thousands Except Per Share Amounts) |
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Three Months Ended |
|
Nine Months Ended |
||||||||||||
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||||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Good Sam Services and Plans |
|
$ |
50,841 |
|
|
$ |
49,889 |
|
|
$ |
149,070 |
|
|
$ |
147,294 |
|
RV and Outdoor Retail |
|
|
|
|
|
|
|
|
|
|
|
|
||||
New vehicles |
|
|
824,916 |
|
|
|
679,207 |
|
|
|
2,328,107 |
|
|
|
2,126,862 |
|
Used vehicles |
|
|
447,242 |
|
|
|
590,227 |
|
|
|
1,265,701 |
|
|
|
1,657,935 |
|
Products, service and other |
|
|
224,839 |
|
|
|
235,609 |
|
|
|
638,680 |
|
|
|
691,030 |
|
Finance and insurance, net |
|
|
166,255 |
|
|
|
163,630 |
|
|
|
480,725 |
|
|
|
460,336 |
|
|
|
|
10,895 |
|
|
|
11,051 |
|
|
|
33,227 |
|
|
|
33,757 |
|
Subtotal |
|
|
1,674,147 |
|
|
|
1,679,724 |
|
|
|
4,746,440 |
|
|
|
4,969,920 |
|
Total revenue |
|
|
1,724,988 |
|
|
|
1,729,613 |
|
|
|
4,895,510 |
|
|
|
5,117,214 |
|
Costs applicable to revenue (exclusive of depreciation and amortization shown separately below): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Good Sam Services and Plans |
|
|
19,700 |
|
|
|
10,021 |
|
|
|
52,075 |
|
|
|
43,844 |
|
RV and Outdoor Retail |
|
|
|
|
|
|
|
|
|
|
|
|
||||
New vehicles |
|
|
713,515 |
|
|
|
576,480 |
|
|
|
1,996,204 |
|
|
|
1,811,398 |
|
Used vehicles |
|
|
366,067 |
|
|
|
478,595 |
|
|
|
1,034,201 |
|
|
|
1,300,961 |
|
Products, service and other |
|
|
126,113 |
|
|
|
139,976 |
|
|
|
360,721 |
|
|
|
422,037 |
|
|
|
|
1,069 |
|
|
|
1,455 |
|
|
|
3,729 |
|
|
|
3,766 |
|
Subtotal |
|
|
1,206,764 |
|
|
|
1,196,506 |
|
|
|
3,394,855 |
|
|
|
3,538,162 |
|
Total costs applicable to revenue |
|
|
1,226,464 |
|
|
|
1,206,527 |
|
|
|
3,446,930 |
|
|
|
3,582,006 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Gross profit (exclusive of depreciation and amortization shown separately below): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Good Sam Services and Plans |
|
|
31,141 |
|
|
|
39,868 |
|
|
|
96,995 |
|
|
|
103,450 |
|
RV and Outdoor Retail |
|
|
|
|
|
|
|
|
|
|
|
|
||||
New vehicles |
|
|
111,401 |
|
|
|
102,727 |
|
|
|
331,903 |
|
|
|
315,464 |
|
Used vehicles |
|
|
81,175 |
|
|
|
111,632 |
|
|
|
231,500 |
|
|
|
356,974 |
|
Products, service and other |
|
|
98,726 |
|
|
|
95,633 |
|
|
|
277,959 |
|
|
|
268,993 |
|
Finance and insurance, net |
|
|
166,255 |
|
|
|
163,630 |
|
|
|
480,725 |
|
|
|
460,336 |
|
|
|
|
9,826 |
|
|
|
9,596 |
|
|
|
29,498 |
|
|
|
29,991 |
|
Subtotal |
|
|
467,383 |
|
|
|
483,218 |
|
|
|
1,351,585 |
|
|
|
1,431,758 |
|
Total gross profit |
|
|
498,524 |
|
|
|
523,086 |
|
|
|
1,448,580 |
|
|
|
1,535,208 |
|
|
|
|
|
|
|
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|
||||
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Selling, general, and administrative |
|
|
414,209 |
|
|
|
415,288 |
|
|
|
1,205,358 |
|
|
|
1,201,901 |
|
Depreciation and amortization |
|
|
20,583 |
|
|
|
17,619 |
|
|
|
59,905 |
|
|
|
49,462 |
|
Long-lived asset impairment |
|
|
1,944 |
|
|
|
1,747 |
|
|
|
12,355 |
|
|
|
9,269 |
|
Lease termination |
|
|
(2,625 |
) |
|
|
375 |
|
|
|
(2,585 |
) |
|
|
375 |
|
(Gain) loss on sale or disposal of assets |
|
|
(5 |
) |
|
|
131 |
|
|
|
9,525 |
|
|
|
(5,001 |
) |
Total operating expenses |
|
|
434,106 |
|
|
|
435,160 |
|
|
|
1,284,558 |
|
|
|
1,256,006 |
|
Income from operations |
|
|
64,418 |
|
|
|
87,926 |
|
|
|
164,022 |
|
|
|
279,202 |
|
Other expense |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Floor plan interest expense |
|
|
(22,372 |
) |
|
|
(19,816 |
) |
|
|
(78,053 |
) |
|
|
(61,298 |
) |
Other interest expense, net |
|
|
(35,877 |
) |
|
|
(35,242 |
) |
|
|
(108,124 |
) |
|
|
(99,873 |
) |
Tax Receivable Agreement liability adjustment |
|
|
— |
|
|
|
1,680 |
|
|
|
— |
|
|
|
1,680 |
|
Other (expense) income, net |
|
|
(162 |
) |
|
|
24 |
|
|
|
(337 |
) |
|
|
(1,659 |
) |
Total other expense |
|
|
(58,411 |
) |
|
|
(53,354 |
) |
|
|
(186,514 |
) |
|
|
(161,150 |
) |
Income (loss) before income taxes |
|
|
6,007 |
|
|
|
34,572 |
|
|
|
(22,492 |
) |
|
|
118,052 |
|
Income tax benefit (expense) |
|
|
2,049 |
|
|
|
(3,679 |
) |
|
|
3,156 |
|
|
|
(17,533 |
) |
Net income (loss) |
|
|
8,056 |
|
|
|
30,893 |
|
|
|
(19,336 |
) |
|
|
100,519 |
|
Less: net income (loss) attributable to non-controlling interests |
|
|
(2,555 |
) |
|
|
(14,932 |
) |
|
|
12,301 |
|
|
|
(52,686 |
) |
Net income (loss) attributable to |
|
$ |
5,501 |
|
|
$ |
15,961 |
|
|
$ |
(7,035 |
) |
|
$ |
47,833 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Earnings (loss) per share of Class A common stock: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
0.12 |
|
|
$ |
0.36 |
|
|
$ |
(0.16 |
) |
|
$ |
1.07 |
|
Diluted |
|
$ |
0.09 |
|
|
$ |
0.32 |
|
|
$ |
(0.18 |
) |
|
$ |
1.03 |
|
Weighted average shares of Class A common stock outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
|
45,232 |
|
|
|
44,666 |
|
|
|
45,124 |
|
|
|
44,538 |
|
Diluted |
|
|
85,618 |
|
|
|
85,180 |
|
|
|
85,169 |
|
|
|
84,917 |
|
|
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Supplemental Data (unaudited) |
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|
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|
|
Three Months Ended |
|
Increase |
|
|
Percent |
||||||||||
|
|
2024 |
|
|
2023 |
|
|
(decrease) |
|
|
Change |
||||||
Unit sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
New vehicles |
|
|
19,943 |
|
|
|
15,205 |
|
|
|
4,738 |
|
|
|
|
31.2 |
% |
Used vehicles |
|
|
14,065 |
|
|
|
17,125 |
|
|
|
(3,060 |
) |
|
|
|
(17.9 |
%) |
Total |
|
|
34,008 |
|
|
|
32,330 |
|
|
|
1,678 |
|
|
|
|
5.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Average selling price |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
New vehicles |
|
$ |
41,364 |
|
|
$ |
44,670 |
|
|
$ |
(3,306 |
) |
|
|
|
(7.4 |
%) |
Used vehicles |
|
|
31,798 |
|
|
|
34,466 |
|
|
|
(2,668 |
) |
|
|
|
(7.7 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Same store unit sales(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
New vehicles |
|
|
17,781 |
|
|
|
13,810 |
|
|
|
3,971 |
|
|
|
|
28.8 |
% |
Used vehicles |
|
|
12,711 |
|
|
|
15,988 |
|
|
|
(3,277 |
) |
|
|
|
(20.5 |
%) |
Total |
|
|
30,492 |
|
|
|
29,798 |
|
|
|
694 |
|
|
|
|
2.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Same store revenue(1) ($ in 000s) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
New vehicles |
|
$ |
737,070 |
|
|
$ |
618,483 |
|
|
$ |
118,587 |
|
|
|
|
19.2 |
% |
Used vehicles |
|
|
399,525 |
|
|
|
551,480 |
|
|
|
(151,955 |
) |
|
|
|
(27.6 |
%) |
Products, service and other |
|
|
182,180 |
|
|
|
186,391 |
|
|
|
(4,211 |
) |
|
|
|
(2.3 |
%) |
Finance and insurance, net |
|
|
148,456 |
|
|
|
151,148 |
|
|
|
(2,692 |
) |
|
|
|
(1.8 |
%) |
Total |
|
$ |
1,467,231 |
|
|
$ |
1,507,502 |
|
|
$ |
(40,271 |
) |
|
|
|
(2.7 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Average gross profit per unit |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
New vehicles |
|
$ |
5,586 |
|
|
$ |
6,756 |
|
|
$ |
(1,170 |
) |
|
|
|
(17.3 |
%) |
Used vehicles |
|
|
5,771 |
|
|
|
6,519 |
|
|
|
(748 |
) |
|
|
|
(11.5 |
%) |
Finance and insurance, net per vehicle unit |
|
|
4,889 |
|
|
|
5,061 |
|
|
|
(172 |
) |
|
|
|
(3.4 |
%) |
Total vehicle front-end yield(2) |
|
|
10,551 |
|
|
|
11,692 |
|
|
|
(1,141 |
) |
|
|
|
(9.8 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Gross margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Good Sam Services and Plans |
|
|
61.3 |
% |
|
|
79.9 |
% |
|
|
(1,866 |
) |
bps |
|
|
|
|
New vehicles |
|
|
13.5 |
% |
|
|
15.1 |
% |
|
|
(162 |
) |
bps |
|
|
|
|
Used vehicles |
|
|
18.2 |
% |
|
|
18.9 |
% |
|
|
(76 |
) |
bps |
|
|
|
|
Products, service and other |
|
|
43.9 |
% |
|
|
40.6 |
% |
|
|
332 |
|
bps |
|
|
|
|
Finance and insurance, net |
|
|
100.0 |
% |
|
|
100.0 |
% |
|
|
unch. |
|
|
|
|
||
|
|
|
90.2 |
% |
|
|
86.8 |
% |
|
|
335 |
|
bps |
|
|
|
|
Subtotal RV and Outdoor Retail |
|
|
27.9 |
% |
|
|
28.8 |
% |
|
|
(85 |
) |
bps |
|
|
|
|
Total gross margin |
|
|
28.9 |
% |
|
|
30.2 |
% |
|
|
(134 |
) |
bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Retail locations |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
RV dealerships |
|
|
204 |
|
|
|
205 |
|
|
|
(1 |
) |
|
|
|
(0.5 |
%) |
RV service & retail centers |
|
|
3 |
|
|
|
4 |
|
|
|
(1 |
) |
|
|
|
(25.0 |
%) |
Total |
|
|
207 |
|
|
|
209 |
|
|
|
(2 |
) |
|
|
|
(1.0 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
RV and Outdoor Retail inventories ($ in 000s) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
New vehicles |
|
$ |
1,189,880 |
|
|
$ |
1,131,575 |
|
|
$ |
58,305 |
|
|
|
|
5.2 |
% |
Used vehicles |
|
|
420,727 |
|
|
|
534,155 |
|
|
|
(113,428 |
) |
|
|
|
(21.2 |
%) |
Products, parts, accessories and misc. |
|
|
170,793 |
|
|
|
202,786 |
|
|
|
(31,993 |
) |
|
|
|
(15.8 |
%) |
Total RV and Outdoor Retail inventories |
|
$ |
1,781,400 |
|
|
$ |
1,868,516 |
|
|
$ |
(87,116 |
) |
|
|
|
(4.7 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Vehicle inventory per location ($ in 000s) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
New vehicle inventory per dealer location |
|
$ |
5,833 |
|
|
$ |
5,520 |
|
|
$ |
313 |
|
|
|
|
5.7 |
% |
Used vehicle inventory per dealer location |
|
|
2,062 |
|
|
|
2,606 |
|
|
|
(544 |
) |
|
|
|
(20.9 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Vehicle inventory turnover(3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
New vehicle inventory turnover |
|
|
1.7 |
|
|
|
1.8 |
|
|
|
(0.1 |
) |
|
|
|
(5.6 |
%) |
Used vehicle inventory turnover |
|
|
3.2 |
|
|
|
3.0 |
|
|
|
0.2 |
|
|
|
|
6.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Other data |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Active Customers(4) |
|
|
4,615,443 |
|
|
|
5,111,478 |
|
|
|
(496,035 |
) |
|
|
|
(9.7 |
%) |
|
|
|
1,804,334 |
|
|
|
2,051,768 |
|
|
|
(247,434 |
) |
|
|
(12.1 |
%) |
|
Service bays (6) |
|
|
2,828 |
|
|
|
2,800 |
|
|
|
28 |
|
|
|
|
1.0 |
% |
Finance and insurance gross profit as a % of total vehicle revenue |
|
|
13.1 |
% |
|
|
12.9 |
% |
|
|
18 |
|
bps |
|
|
n/a |
|
Same store locations |
|
|
176 |
|
|
|
n/a |
|
|
|
n/a |
|
|
|
|
n/a |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Nine Months Ended |
|
Increase |
|
|
Percent |
||||||||||
|
|
2024 |
|
|
2023 |
|
|
(decrease) |
|
|
Change |
||||||
Unit sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
New vehicles |
|
|
58,909 |
|
|
|
48,014 |
|
|
|
10,895 |
|
|
|
|
22.7 |
% |
Used vehicles |
|
|
40,459 |
|
|
|
47,331 |
|
|
|
(6,872 |
) |
|
|
|
(14.5 |
%) |
Total |
|
|
99,368 |
|
|
|
95,345 |
|
|
|
4,023 |
|
|
|
|
4.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Average selling price |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
New vehicles |
|
$ |
39,520 |
|
|
$ |
44,297 |
|
|
$ |
(4,776 |
) |
|
|
|
(10.8 |
%) |
Used vehicles |
|
|
31,284 |
|
|
|
35,029 |
|
|
|
(3,745 |
) |
|
|
|
(10.7 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Same store unit sales(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
New vehicles |
|
|
52,786 |
|
|
|
45,002 |
|
|
|
7,784 |
|
|
|
|
17.3 |
% |
Used vehicles |
|
|
36,707 |
|
|
|
45,034 |
|
|
|
(8,327 |
) |
|
|
|
(18.5 |
%) |
Total |
|
|
89,493 |
|
|
|
90,036 |
|
|
|
(543 |
) |
|
|
|
(0.6 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Same store revenue(1) ($ in 000s) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
New vehicles |
|
$ |
2,089,246 |
|
|
$ |
2,000,904 |
|
|
$ |
88,342 |
|
|
|
|
4.4 |
% |
Used vehicles |
|
|
1,140,260 |
|
|
|
1,580,117 |
|
|
|
(439,857 |
) |
|
|
|
(27.8 |
%) |
Products, service and other |
|
|
504,102 |
|
|
|
536,234 |
|
|
|
(32,132 |
) |
|
|
|
(6.0 |
%) |
Finance and insurance, net |
|
|
433,202 |
|
|
|
436,457 |
|
|
|
(3,255 |
) |
|
|
|
(0.7 |
%) |
Total |
|
$ |
4,166,810 |
|
|
$ |
4,553,712 |
|
|
$ |
(386,902 |
) |
|
|
|
(8.5 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Average gross profit per unit |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
New vehicles |
|
$ |
5,634 |
|
|
$ |
6,570 |
|
|
$ |
(936 |
) |
|
|
|
(14.2 |
%) |
Used vehicles |
|
|
5,722 |
|
|
|
7,542 |
|
|
|
(1,820 |
) |
|
|
|
(24.1 |
%) |
Finance and insurance, net per vehicle unit |
|
|
4,838 |
|
|
|
4,828 |
|
|
|
10 |
|
|
|
|
0.2 |
% |
Total vehicle front-end yield(2) |
|
|
10,508 |
|
|
|
11,881 |
|
|
|
(1,373 |
) |
|
|
|
(11.6 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Gross margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Good Sam Services and Plans |
|
|
65.1 |
% |
|
|
70.2 |
% |
|
|
(517 |
) |
bps |
|
|
|
|
New vehicles |
|
|
14.3 |
% |
|
|
14.8 |
% |
|
|
(58 |
) |
bps |
|
|
|
|
Used vehicles |
|
|
18.3 |
% |
|
|
21.5 |
% |
|
|
(324 |
) |
bps |
|
|
|
|
Products, service and other |
|
|
43.5 |
% |
|
|
38.9 |
% |
|
|
460 |
|
bps |
|
|
|
|
Finance and insurance, net |
|
|
100.0 |
% |
|
|
100.0 |
% |
|
|
unch. |
bps |
|
|
|
||
|
|
|
88.8 |
% |
|
|
88.8 |
% |
|
|
(7 |
) |
bps |
|
|
|
|
Subtotal RV and Outdoor Retail |
|
|
28.5 |
% |
|
|
28.8 |
% |
|
|
(33 |
) |
bps |
|
|
|
|
Total gross margin |
|
|
29.6 |
% |
|
|
30.0 |
% |
|
|
(41 |
) |
bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other data |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Finance and insurance gross profit as a % of total vehicle revenue |
|
|
13.4 |
% |
|
|
12.2 |
% |
|
|
121 |
|
bps |
|
|
n/a |
|
Same store locations |
|
|
176 |
|
|
|
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) |
|
|
(6) |
|
A service bay is a fully-constructed bay dedicated to service, installation, and collision offerings. |
|
||||||||||||
Consolidated Balance Sheets (unaudited) |
||||||||||||
(In Thousands Except Per Share Amounts) |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
||||||
|
|
2024 |
|
|
2023 |
|
|
2023 |
|
|||
Assets |
|
|
|
|
|
|
|
|
|
|||
Current assets: |
|
|
|
|
|
|
|
|
|
|||
Cash and cash equivalents |
|
$ |
28,380 |
|
|
$ |
39,647 |
|
|
$ |
53,318 |
|
Contracts in transit |
|
|
111,879 |
|
|
|
60,229 |
|
|
|
100,831 |
|
Accounts receivable, net |
|
|
118,300 |
|
|
|
128,070 |
|
|
|
135,832 |
|
Inventories |
|
|
1,781,656 |
|
|
|
2,042,949 |
|
|
|
1,869,042 |
|
Prepaid expenses and other assets |
|
|
57,158 |
|
|
|
48,353 |
|
|
|
38,979 |
|
Assets held for sale |
|
|
10,353 |
|
|
|
29,864 |
|
|
|
4,635 |
|
Total current assets |
|
|
2,107,726 |
|
|
|
2,349,112 |
|
|
|
2,202,637 |
|
|
|
|
|
|
|
|
|
|
|
|||
Property and equipment, net |
|
|
836,824 |
|
|
|
834,426 |
|
|
|
841,548 |
|
Operating lease assets |
|
|
755,223 |
|
|
|
740,052 |
|
|
|
736,246 |
|
Deferred tax assets, net |
|
|
157,886 |
|
|
|
157,326 |
|
|
|
142,187 |
|
Intangible assets, net |
|
|
20,413 |
|
|
|
13,717 |
|
|
|
14,444 |
|
|
|
|
732,813 |
|
|
|
711,222 |
|
|
|
688,139 |
|
Other assets |
|
|
34,339 |
|
|
|
39,829 |
|
|
|
32,058 |
|
Total assets |
|
$ |
4,645,224 |
|
|
$ |
4,845,684 |
|
|
$ |
4,657,259 |
|
Liabilities and stockholders' equity |
|
|
|
|
|
|
|
|
|
|||
Current liabilities: |
|
|
|
|
|
|
|
|
|
|||
Accounts payable |
|
$ |
221,292 |
|
|
$ |
133,516 |
|
|
$ |
200,433 |
|
Accrued liabilities |
|
|
182,926 |
|
|
|
149,096 |
|
|
|
171,956 |
|
Deferred revenues |
|
|
100,894 |
|
|
|
92,366 |
|
|
|
99,813 |
|
Current portion of operating lease liabilities |
|
|
60,481 |
|
|
|
63,695 |
|
|
|
62,987 |
|
Current portion of finance lease liabilities |
|
|
7,077 |
|
|
|
17,133 |
|
|
|
5,563 |
|
Current portion of Tax Receivable Agreement liability |
|
|
— |
|
|
|
12,943 |
|
|
|
13,999 |
|
Current portion of long-term debt |
|
|
23,798 |
|
|
|
22,121 |
|
|
|
23,257 |
|
Notes payable – floor plan, net |
|
|
1,030,187 |
|
|
|
1,371,145 |
|
|
|
1,017,543 |
|
Other current liabilities |
|
|
83,906 |
|
|
|
68,536 |
|
|
|
79,381 |
|
Liabilities related to assets held for sale |
|
|
— |
|
|
|
17,288 |
|
|
|
4,022 |
|
Total current liabilities |
|
|
1,710,561 |
|
|
|
1,947,839 |
|
|
|
1,678,954 |
|
|
|
|
|
|
|
|
|
|
|
|||
Operating lease liabilities, net of current portion |
|
|
779,873 |
|
|
|
763,958 |
|
|
|
759,952 |
|
Finance lease liabilities, net of current portion |
|
|
132,784 |
|
|
|
97,751 |
|
|
|
99,060 |
|
Tax Receivable Agreement liability, net of current portion |
|
|
149,866 |
|
|
|
149,866 |
|
|
|
149,134 |
|
Revolving line of credit |
|
|
31,885 |
|
|
|
20,885 |
|
|
|
20,885 |
|
Long-term debt, net of current portion |
|
|
1,506,027 |
|
|
|
1,498,958 |
|
|
|
1,522,495 |
|
Deferred revenues |
|
|
67,647 |
|
|
|
66,780 |
|
|
|
70,214 |
|
Other long-term liabilities |
|
|
93,890 |
|
|
|
85,440 |
|
|
|
85,710 |
|
Total liabilities |
|
|
4,472,533 |
|
|
|
4,631,477 |
|
|
|
4,386,404 |
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
|
|||
Stockholders' equity: |
|
|
|
|
|
|
|
|
|
|||
Preferred stock, par value |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Class A common stock, par value |
|
|
496 |
|
|
|
496 |
|
|
|
496 |
|
Class B common stock, par value |
|
|
4 |
|
|
|
4 |
|
|
|
4 |
|
Class C common stock, par value |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Additional paid-in capital |
|
|
94,217 |
|
|
|
98,280 |
|
|
|
108,942 |
|
|
|
|
(148,170 |
) |
|
|
(159,440 |
) |
|
|
(167,847 |
) |
Retained earnings |
|
|
161,269 |
|
|
|
185,244 |
|
|
|
207,657 |
|
Total stockholders' equity attributable to |
|
|
107,816 |
|
|
|
124,584 |
|
|
|
149,252 |
|
Non-controlling interests |
|
|
64,875 |
|
|
|
89,623 |
|
|
|
121,603 |
|
Total stockholders' equity |
|
|
172,691 |
|
|
|
214,207 |
|
|
|
270,855 |
|
Total liabilities and stockholders' equity |
|
$ |
4,645,224 |
|
|
$ |
4,845,684 |
|
|
$ |
4,657,259 |
|
||||||||
Summary of Consolidated Statements of Cash Flows (unaudited) |
||||||||
(In Thousands) |
||||||||
|
|
|
|
|
|
|
||
|
|
Nine Months Ended |
||||||
|
|
2024 |
|
|
2023 |
|
||
|
|
|
|
|
|
|
||
Net cash provided by operating activities |
|
$ |
408,541 |
|
|
$ |
543,273 |
|
|
|
|
|
|
|
|
||
Investing activities |
|
|
|
|
|
|
||
Purchases of property and equipment |
|
|
(68,194 |
) |
|
|
(95,641 |
) |
Proceeds from sale of property and equipment |
|
|
3,820 |
|
|
|
2,723 |
|
Purchases of real property |
|
|
(1,243 |
) |
|
|
(64,302 |
) |
Proceeds from the sale of real property |
|
|
48,434 |
|
|
|
35,603 |
|
Purchases of businesses, net of cash acquired |
|
|
(62,323 |
) |
|
|
(150,475 |
) |
Proceeds from divestiture of business |
|
|
19,957 |
|
|
|
— |
|
Purchases of and loans to other investments |
|
|
— |
|
|
|
(3,444 |
) |
Purchases of intangible assets |
|
|
(142 |
) |
|
|
(1,999 |
) |
Proceeds from sale of intangible assets |
|
|
2,595 |
|
|
|
— |
|
Net cash used in investing activities |
|
|
(57,096 |
) |
|
|
(277,535 |
) |
|
|
|
|
|
|
|
||
Financing activities |
|
|
|
|
|
|
||
Proceeds from long-term debt |
|
|
55,624 |
|
|
|
59,227 |
|
Payments on long-term debt |
|
|
(66,763 |
) |
|
|
(26,556 |
) |
Net payments on notes payable – floor plan, net |
|
|
(317,519 |
) |
|
|
(273,478 |
) |
Borrowings on revolving line of credit |
|
|
43,000 |
|
|
|
— |
|
Payments on revolving line of credit |
|
|
(32,000 |
) |
|
|
— |
|
Payments on finance leases |
|
|
(5,684 |
) |
|
|
(4,160 |
) |
Payments on sale-leaseback arrangement |
|
|
(147 |
) |
|
|
(139 |
) |
Payment of debt issuance costs |
|
|
(876 |
) |
|
|
(881 |
) |
Dividends on Class A common stock |
|
|
(16,940 |
) |
|
|
(61,207 |
) |
Proceeds from exercise of stock options |
|
|
549 |
|
|
|
319 |
|
RSU shares withheld for tax |
|
|
(3,110 |
) |
|
|
(4,083 |
) |
Distributions to holders of LLC common units |
|
|
(18,846 |
) |
|
|
(31,593 |
) |
Net cash used in financing activities |
|
|
(362,712 |
) |
|
|
(342,551 |
) |
|
|
|
|
|
|
|
||
Decrease in cash and cash equivalents |
|
|
(11,267 |
) |
|
|
(76,813 |
) |
Cash and cash equivalents at beginning of the period |
|
|
39,647 |
|
|
|
130,131 |
|
Cash and cash equivalents at end of the period |
|
$ |
28,380 |
|
|
$ |
53,318 |
Comparison of Certain Trends to Pre-COVID-19 Pandemic Periods
New vehicle gross margins in the third quarter of 2024 were within the range of gross margins for the pre-COVID-19 pandemic periods presented in the table below. Additionally, used vehicle gross margins were negatively impacted in the third quarter of 2024 from the discounting necessary to maintain used vehicles as a lower cost alternative for our customers. Beginning primarily in the fourth quarter of 2023, we adjusted our acceptable procurement cost of used vehicles to reflect the lower average market price of RVs that was driven by the lower cost 2024 models.
The following table presents vehicle gross margin and unit sales mix for the three months ended
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Three Months Ended |
|||||||||||||
|
|
2024 |
|
2019(1) |
|
2018(1) |
|
2017(1) |
|
2016(1) |
|||||
Gross margin: |
|
|
|
|
|
|
|
|
|
|
|||||
New vehicles |
|
13.5 |
% |
|
12.0 |
% |
|
12.6 |
% |
|
14.3 |
% |
|
13.9 |
% |
Used vehicles |
|
18.2 |
% |
|
21.1 |
% |
|
22.9 |
% |
|
25.3 |
% |
|
23.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|||||
Unit sales mix: |
|
|
|
|
|
|
|
|
|
|
|||||
New vehicles |
|
58.6 |
% |
|
64.9 |
% |
|
69.0 |
% |
|
69.1 |
% |
|
64.2 |
% |
Used vehicles |
|
41.4 |
% |
|
35.1 |
% |
|
31.0 |
% |
|
30.9 |
% |
|
35.8 |
% |
(1) |
These periods were prior to the COVID-19 pandemic. |
Earnings (Loss) Per Share
Basic earnings (loss) per share of Class A common stock is computed by dividing net income (loss) attributable to
The following table sets forth reconciliations of the numerators and denominators used to compute basic and diluted earnings (loss) per share of Class A common stock (unaudited):
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
(In thousands except per share amounts) |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Numerator: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income (loss) |
|
$ |
8,056 |
|
|
$ |
30,893 |
|
|
$ |
(19,336 |
) |
|
$ |
100,519 |
|
Less: net income (loss) attributable to non-controlling interests |
|
|
(2,555 |
) |
|
|
(14,932 |
) |
|
|
12,301 |
|
|
|
(52,686 |
) |
Net income (loss) attributable to |
|
$ |
5,501 |
|
|
$ |
15,961 |
|
|
$ |
(7,035 |
) |
|
$ |
47,833 |
|
Add: reallocation of net income (loss) attributable to non-controlling interests from the assumed redemption of common units of |
|
|
2,127 |
|
|
|
11,468 |
|
|
|
(8,525 |
) |
|
|
40,037 |
|
Net income (loss) attributable to |
|
$ |
7,628 |
|
|
$ |
27,429 |
|
|
$ |
(15,560 |
) |
|
$ |
87,870 |
|
Denominator: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted-average shares of Class A common stock outstanding — basic |
|
|
45,232 |
|
|
|
44,666 |
|
|
|
45,124 |
|
|
|
44,538 |
|
Dilutive options to purchase Class A common stock |
|
|
— |
|
|
|
35 |
|
|
|
— |
|
|
|
26 |
|
Dilutive restricted stock units |
|
|
341 |
|
|
|
434 |
|
|
|
— |
|
|
|
308 |
|
Dilutive common units of |
|
|
40,045 |
|
|
|
40,045 |
|
|
|
40,045 |
|
|
|
40,045 |
|
Weighted-average shares of Class A common stock outstanding — diluted |
|
|
85,618 |
|
|
|
85,180 |
|
|
|
85,169 |
|
|
|
84,917 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Earnings (loss) per share of Class A common stock — basic |
|
$ |
0.12 |
|
|
$ |
0.36 |
|
|
$ |
(0.16 |
) |
|
$ |
1.07 |
|
Earnings (loss) per share of Class A common stock — diluted |
|
$ |
0.09 |
|
|
$ |
0.32 |
|
|
$ |
(0.18 |
) |
|
$ |
1.03 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted-average anti-dilutive securities excluded from the computation of diluted earnings (loss) per share of Class A common stock: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Stock options to purchase Class A common stock |
|
|
158 |
|
|
|
— |
|
|
|
182 |
|
|
|
— |
|
Restricted stock units |
|
|
890 |
|
|
|
852 |
|
|
|
2,031 |
|
|
|
1,353 |
|
Non-GAAP Financial Measures
To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with accounting principles generally accepted in
For periods beginning after
Our earnings call on
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 income (loss) 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, equity-based compensation, 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 |
|
Nine Months Ended |
|
||||||||||||
($ in thousands) |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
||||
EBITDA and Adjusted EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income (loss) |
|
$ |
8,056 |
|
|
$ |
30,893 |
|
|
$ |
(19,336 |
) |
|
$ |
100,519 |
|
|
Other interest expense, net |
|
|
35,877 |
|
|
|
35,242 |
|
|
|
108,124 |
|
|
|
99,873 |
|
|
Depreciation and amortization |
|
|
20,583 |
|
|
|
17,619 |
|
|
|
59,905 |
|
|
|
49,462 |
|
|
Income tax (benefit) expense |
|
|
(2,049 |
) |
|
|
3,679 |
|
|
|
(3,156 |
) |
|
|
17,533 |
|
|
Subtotal EBITDA |
|
|
62,467 |
|
|
|
87,433 |
|
|
|
145,537 |
|
|
|
267,387 |
|
|
Long-lived asset impairment (a) |
|
|
1,944 |
|
|
|
1,747 |
|
|
|
12,355 |
|
|
|
9,269 |
|
|
Lease termination (b) |
|
|
(2,625 |
) |
|
|
375 |
|
|
|
(2,585 |
) |
|
|
375 |
|
|
(Gain) loss on sale or disposal of assets, net (c) |
|
|
(5 |
) |
|
|
131 |
|
|
|
9,525 |
|
|
|
(5,001 |
) |
|
Equity-based compensation (d) |
|
|
5,573 |
|
|
|
5,466 |
|
|
|
16,167 |
|
|
|
18,316 |
|
|
Tax Receivable Agreement liability adjustment (e) |
|
|
— |
|
|
|
(1,680 |
) |
|
|
— |
|
|
|
(1,680 |
) |
|
Restructuring costs (f) |
|
|
— |
|
|
|
1,549 |
|
|
|
— |
|
|
|
4,808 |
|
|
Loss (gain) and impairment on investments in equity securities (g) |
|
|
162 |
|
|
|
(23 |
) |
|
|
337 |
|
|
|
1,660 |
|
|
Adjusted EBITDA |
|
$ |
67,516 |
|
|
$ |
94,998 |
|
|
$ |
181,336 |
|
|
$ |
295,134 |
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||
(as percentage of total revenue) |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
Adjusted EBITDA margin: |
|
|
|
|
|
|
|
|
||||
Net income (loss) margin |
|
0.5 |
% |
|
1.8 |
% |
|
(0.4 |
%) |
|
2.0 |
% |
Other interest expense, net |
|
2.1 |
% |
|
2.0 |
% |
|
2.2 |
% |
|
2.0 |
% |
Depreciation and amortization |
|
1.2 |
% |
|
1.0 |
% |
|
1.2 |
% |
|
1.0 |
% |
Income tax (benefit) expense |
|
(0.1 |
%) |
|
0.2 |
% |
|
(0.1 |
%) |
|
0.3 |
% |
Subtotal EBITDA margin |
|
3.6 |
% |
|
5.1 |
% |
|
3.0 |
% |
|
5.2 |
% |
Long-lived asset impairment (a) |
|
0.1 |
% |
|
0.1 |
% |
|
0.3 |
% |
|
0.2 |
% |
Lease termination (b) |
|
(0.2 |
%) |
|
0.0 |
% |
|
(0.1 |
%) |
|
0.0 |
% |
(Gain) loss on sale or disposal of assets, net (c) |
|
(0.0 |
%) |
|
0.0 |
% |
|
0.2 |
% |
|
(0.1 |
%) |
Equity-based compensation (d) |
|
0.3 |
% |
|
0.3 |
% |
|
0.3 |
% |
|
0.4 |
% |
Tax Receivable Agreement liability adjustment (e) |
|
— |
|
|
(0.1 |
%) |
|
— |
|
|
(0.0 |
%) |
Restructuring costs (f) |
|
— |
|
|
0.1 |
% |
|
— |
|
|
0.1 |
% |
Loss (gain) and impairment on investments in equity securities (g) |
|
0.0 |
% |
|
(0.0 |
%) |
|
0.0 |
% |
|
0.0 |
% |
Adjusted EBITDA margin |
|
3.9 |
% |
|
5.5 |
% |
|
3.7 |
% |
|
5.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Three Months Ended |
|
TTM Ended |
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||
($ in thousands) |
2024 |
|
|
2024 |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|||||
Adjusted EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income (loss) |
$ |
8,056 |
|
|
$ |
23,414 |
|
$ |
(50,806 |
) |
|
$ |
(49,918 |
) |
|
$ |
(69,254 |
) |
Other interest expense, net |
|
35,877 |
|
|
|
36,153 |
|
|
36,094 |
|
|
|
35,397 |
|
|
|
143,521 |
|
Depreciation and amortization |
|
20,583 |
|
|
|
20,032 |
|
|
19,290 |
|
|
|
19,181 |
|
|
|
79,086 |
|
Income tax (benefit) expense |
|
(2,049 |
) |
|
|
7,935 |
|
|
(9,042 |
) |
|
|
(18,732 |
) |
|
|
(21,888 |
) |
Subtotal EBITDA |
|
62,467 |
|
|
|
87,534 |
|
|
(4,464 |
) |
|
|
(14,072 |
) |
|
|
131,465 |
|
Long-lived asset impairment (a) |
|
1,944 |
|
|
|
4,584 |
|
|
5,827 |
|
|
|
— |
|
|
|
12,355 |
|
Lease termination (b) |
|
(2,625 |
) |
|
|
40 |
|
|
— |
|
|
|
(478 |
) |
|
|
(3,063 |
) |
(Gain) loss on sale or disposal of assets, net (c) |
|
(5 |
) |
|
|
7,945 |
|
|
1,585 |
|
|
|
(221 |
) |
|
|
9,304 |
|
Equity-based compensation (d) |
|
5,573 |
|
|
|
5,397 |
|
|
5,197 |
|
|
|
5,770 |
|
|
|
21,937 |
|
Tax Receivable Agreement liability adjustment (e) |
|
— |
|
|
|
— |
|
|
— |
|
|
|
(762 |
) |
|
|
(762 |
) |
Restructuring costs (f) |
|
— |
|
|
|
— |
|
|
— |
|
|
|
732 |
|
|
|
732 |
|
Loss (gain) and impairment on investments in equity securities (g) |
|
162 |
|
|
|
81 |
|
|
94 |
|
|
|
110 |
|
|
|
447 |
|
Adjusted EBITDA |
$ |
67,516 |
|
|
$ |
105,581 |
|
$ |
8,239 |
|
|
$ |
(8,921 |
) |
|
$ |
172,415 |
|
(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 non-cash equity-based compensation 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 losses and gains and 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 nine months ended |
Adjusted Net Income Attributable to
We define “Adjusted Net Income Attributable to
We define “Adjusted Net Income Attributable to
We define “Adjusted Earnings Per Share – Basic” as Adjusted Net Income Attributable to
The following table reconciles Adjusted Net Income Attributable to
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
(In thousands except per share amounts) |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Numerator: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income (loss) attributable to |
|
$ |
5,501 |
|
|
$ |
15,961 |
|
|
$ |
(7,035 |
) |
|
$ |
47,833 |
|
Adjustments related to basic calculation: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Long-lived asset impairment (a): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Gross adjustment |
|
|
1,944 |
|
|
|
1,747 |
|
|
|
12,355 |
|
|
|
9,269 |
|
Income tax expense for above adjustment (b) |
|
|
(258 |
) |
|
|
(231 |
) |
|
|
(1,636 |
) |
|
|
(1,233 |
) |
Lease termination (c): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Gross adjustment |
|
|
(2,625 |
) |
|
|
375 |
|
|
|
(2,585 |
) |
|
|
375 |
|
Income tax benefit (expense) for above adjustment (b) |
|
|
348 |
|
|
|
(50 |
) |
|
|
343 |
|
|
|
(50 |
) |
(Gain) loss on sale or disposal of assets (d): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Gross adjustment |
|
|
(5 |
) |
|
|
131 |
|
|
|
9,525 |
|
|
|
(5,001 |
) |
Income tax benefit (expense) for above adjustment (b) |
|
|
1 |
|
|
|
(17 |
) |
|
|
(1,261 |
) |
|
|
667 |
|
Equity-based compensation (e): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Gross adjustment |
|
|
5,573 |
|
|
|
5,466 |
|
|
|
16,167 |
|
|
|
18,316 |
|
Income tax expense for above adjustment (b) |
|
|
(746 |
) |
|
|
(730 |
) |
|
|
(2,163 |
) |
|
|
(2,459 |
) |
Tax Receivable Agreement liability adjustment (f): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Gross adjustment |
|
|
— |
|
|
|
(1,680 |
) |
|
|
— |
|
|
|
(1,680 |
) |
Income tax benefit for above adjustment (b) |
|
|
— |
|
|
|
422 |
|
|
|
— |
|
|
|
422 |
|
Restructuring costs (g): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Gross adjustment |
|
|
— |
|
|
|
1,549 |
|
|
|
— |
|
|
|
4,808 |
|
Income tax expense for above adjustment (b) |
|
|
— |
|
|
|
(205 |
) |
|
|
— |
|
|
|
(639 |
) |
Loss (gain) and impairment on investments in equity securities (h): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Gross adjustment |
|
|
162 |
|
|
|
(23 |
) |
|
|
337 |
|
|
|
1,660 |
|
Income tax (expense) benefit for above adjustment (b) |
|
|
(21 |
) |
|
|
3 |
|
|
|
(44 |
) |
|
|
(222 |
) |
Adjustment to net income attributable to non-controlling interests resulting from the above adjustments (i) |
|
|
(2,365 |
) |
|
|
(4,364 |
) |
|
|
(16,817 |
) |
|
|
(13,907 |
) |
Adjusted net income attributable to |
|
|
7,509 |
|
|
|
18,354 |
|
|
|
7,186 |
|
|
|
58,159 |
|
Adjustments related to diluted calculation: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Reallocation of net income attributable to non-controlling interests from the dilutive redemption of common units in |
|
|
4,920 |
|
|
|
19,296 |
|
|
|
4,516 |
|
|
|
66,593 |
|
Income tax on reallocation of net income attributable to non-controlling interests from the dilutive redemption of common units in |
|
|
(1,015 |
) |
|
|
(4,554 |
) |
|
|
(413 |
) |
|
|
(16,140 |
) |
Adjusted net income attributable to |
|
$ |
11,414 |
|
|
$ |
33,096 |
|
|
$ |
11,289 |
|
|
$ |
108,612 |
|
Denominator: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted-average Class A common shares outstanding – basic |
|
|
45,232 |
|
|
|
44,666 |
|
|
|
45,124 |
|
|
|
44,538 |
|
Adjustments related to diluted calculation: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Dilutive redemption of common units in |
|
|
40,045 |
|
|
|
40,045 |
|
|
|
40,045 |
|
|
|
40,045 |
|
Dilutive options to purchase Class A common stock (l) |
|
|
— |
|
|
|
35 |
|
|
|
10 |
|
|
|
26 |
|
Dilutive restricted stock units (l) |
|
|
341 |
|
|
|
434 |
|
|
|
252 |
|
|
|
308 |
|
Adjusted weighted average Class A common shares outstanding – diluted |
|
|
85,618 |
|
|
|
85,180 |
|
|
|
85,431 |
|
|
|
84,917 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Adjusted earnings per share - basic |
|
$ |
0.17 |
|
|
$ |
0.41 |
|
|
$ |
0.16 |
|
|
$ |
1.31 |
|
Adjusted earnings per share - diluted |
|
$ |
0.13 |
|
|
$ |
0.39 |
|
|
$ |
0.13 |
|
|
$ |
1.28 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Reconciliation of per share amounts: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Earnings (loss) per share of Class A common stock — basic |
|
$ |
0.12 |
|
|
$ |
0.36 |
|
|
$ |
(0.16 |
) |
|
$ |
1.07 |
|
Non-GAAP Adjustments (m) |
|
|
0.05 |
|
|
|
0.05 |
|
|
|
0.32 |
|
|
|
0.24 |
|
Adjusted earnings per share - basic |
|
$ |
0.17 |
|
|
$ |
0.41 |
|
|
$ |
0.16 |
|
|
$ |
1.31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Earnings (loss) per share of Class A common stock — diluted |
|
$ |
0.09 |
|
|
$ |
0.32 |
|
|
$ |
(0.18 |
) |
|
$ |
1.03 |
|
Non-GAAP Adjustments (m) |
|
|
0.04 |
|
|
|
0.05 |
|
|
|
0.31 |
|
|
|
0.23 |
|
Dilutive redemption of common units in |
|
|
— |
|
|
|
0.02 |
|
|
|
— |
|
|
|
0.02 |
|
Adjusted earnings per share - diluted |
|
$ |
0.13 |
|
|
$ |
0.39 |
|
|
$ |
0.13 |
|
|
$ |
1.28 |
|
(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 of 25.0% and 25.1% 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 non-cash equity-based compensation 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 and nine months ended |
(h) |
|
Represents losses and gains and impairment on investments in equity securities and interest income relating to any notes receivables with those investments. During the nine months ended |
(i) |
|
Represents the adjustment to net income attributable to non-controlling interests resulting from the above adjustments that impact the net income (loss) of |
(j) |
|
Represents the reallocation of net income attributable to non-controlling interests from the impact of the assumed change in ownership of |
(k) |
|
Represents the income tax expense effect of the above adjustment for reallocation of net income attributable to non-controlling interests. This assumption uses blended statutory tax rates of 25.0% and 25.1% for the adjustments for 2024 and 2023 periods. |
(l) |
|
Represents the impact to the denominator for stock options, restricted stock units, and/or common units of |
(m) |
|
Represents the per share impact of the Non-GAAP adjustments to net income (loss) detailed above (see (a) through (i) above). |
(n) |
|
Represents the per share impact of stock options, restricted stock units, and/or common units of |
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
SG&A Excluding Equity-based Compensation
We define “SG&A Excluding Equity-based Compensation” as SG&A before Equity-based Compensation relating to SG&A. We caution investors that amounts presented in accordance with our definition of SG&A Excluding Equity-based Compensation may not be comparable to similar measures disclosed by our competitors, because not all companies and analysts calculate SG&A Excluding Equity-based Compensation in the same manner. We present SG&A Excluding Equity-based Compensation 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 Equity-based Compensation to the most directly comparable GAAP financial performance measure:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
($ in thousands) |
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
SG&A Excluding Equity-based Compensation: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
SG&A |
|
$ |
414,209 |
|
|
$ |
415,288 |
|
|
$ |
1,205,358 |
|
|
$ |
1,201,901 |
|
Equity-based Compensation - SG&A |
|
|
(5,478 |
) |
|
|
(5,324 |
) |
|
|
(15,891 |
) |
|
|
(17,820 |
) |
SG&A Excluding Equity-based Compensation |
|
$ |
408,731 |
|
|
$ |
409,964 |
|
|
$ |
1,189,467 |
|
|
$ |
1,184,081 |
|
As a percentage of gross profit |
|
|
82.0 |
% |
|
|
78.4 |
% |
|
|
82.1 |
% |
|
|
77.1 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241028561496/en/
Investors:
InvestorRelations@campingworld.com
PR-CWGS@CampingWorld.com
Source: