Q1 2025 Camping World Holdings Inc Earnings Call

April 30, 2025

Camping World Holdings, Inc. First quarter 2025 results conference call.

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After todays presentation, there will be an opportunity to ask questions.

[music].

Ask a question Crestar then one on your telephone keypad.

Good day and welcome to the Camping World Holdings, Inc. First quarter 'twenty twenty-five results conference call.

To withdraw your question. Please press Star then two.

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Lindsey Christian: I would now like to turn the conference over to Lindsey Christian.

<unk> administration legal officer please.

After todays presentation, there will be an opportunity to ask questions.

Speaker Change: Please go ahead.

Good day and welcome to Camping World Holdings, Inc. First quarter 2025 results conference calls.

To ask a question press car then one on your telephone keypad.

Speaker Change: Thank you and good morning, everyone. A press release covering the company's first quarter ended March 31, 2025 financial results was issued yesterday afternoon, and a copy of that press release can be found in the Investor Relations section on the company's website.

Speaker Change: So what do I have a question. Please press Star then two.

All participants will be in a listen only mode.

Please note that this event is being recorded.

Should you need assistance. Please signal a conference specialist by pressing the star key followed by zero.

Speaker Change: I would now like to turn the conference over to N V Christian Chief Administration Officer.

After todays presentation, there will be an opportunity to ask questions.

Speaker Change: Management's remarks on this call may contain forward looking statements within the meaning of the private Securities Litigation Reform Act of 995.

Speaker Change: Please go ahead.

To ask a question Crestar then one on your telephone keypad.

Speaker Change: Thank you and good morning, everyone. A press release covering the company's first quarter ended March 31, 2025 financial results.

Speaker Change: Remarks may include statements regarding our business plans and goals macroeconomic and industry trends customer trends inventory strategy future growth of our operations capital allocation and future financial results and position actual results may differ materially from those indicated by these remarks.

To withdraw your question. Please press Star then two.

Please note that this event is being recorded.

Speaker Change: Yesterday afternoon, and a copy of that press release can be found in the Investor Relations section on the company's website.

I would now like to turn the conference over to Lindsey Christian Chief Administration legal officer.

Speaker Change: Management's remarks on this call may contain forward looking statements within the meaning of the private Securities Litigation Reform Act of 95.

Please go ahead.

Thank you and good morning, everyone. A press release covering the company's first quarter ended March 31, 2025 financial results was issued yesterday afternoon, and a copy of that press release can be found in the Investor Relations section on the company's website.

Speaker Change: As a result of various important factors, including those discussed in the risk factors section in our Form 10-K, and our form 10, Qs and other reports on file with the SEC.

Speaker Change: These remarks may include statements regarding our business plans and goals.

Speaker Change: Macroeconomic and industry trends customer trends inventory strategy future growth of our operations capital, Alex and and future financial results and position actual results may differ materially from those indicated by these remarks as a result of various important factors, including those discussed in the.

Speaker Change: Any forward looking statements represent our views only as of today and we undertake no obligation to update them. Please also note that we will be referring to certain non-GAAP financial measures on today's call such as EBITDA adjusted EBITDA adjusted earnings per share diluted which we believe may be important to investors to assess our opt.

Management's remarks on this call may contain forward looking statements within the meaning of the private Securities Litigation Reform Act of 1995.

Remarks may include statements regarding our business plans and goals macroeconomic and industry trends customer trends inventory strategy future growth of our operations capital allocation and future financial results and position actual results may differ materially from those indicated by these remarks.

Speaker Change: Risk factors section in our Form 10-K, and our form 10, Qs and other reports on file with the SEC.

Speaker Change: <unk> performance.

Speaker Change: Any forward looking statements represent our views only as of today and we undertake no obligation to update them.

Speaker Change: Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial statements.

Speaker Change: Included in our earnings release and on our website <unk>.

Speaker Change: Please also note that we will be referring to certain non-GAAP financial measures on today's call such as EBITDA adjusted EBITDA adjusted earnings per share diluted which we believe may be important to investors to assess our operating performance.

As a result of various important factors, including those discussed in the risk factors section in our Form 10-K, and our form 10, Qs and other reports on file with the SEC.

All comparisons of our 2025 first quarter are made against the 2024 first quarter results unless otherwise noted I will now turn the call over to market. Thanks, Lindsay and good morning, and welcome to our first quarter 2025 earnings call. We entered the year with a few simple mandates similar harvey's improve our.

Any forward looking statements represent our views only as of today and we undertake no obligation to update them. Please also note that we will be referring to certain non-GAAP financial measures on today's call such as EBITDA adjusted EBITDA adjusted earnings per share diluted which we believe may be important to investors to assess our op.

Speaker Change: Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial statements.

Speaker Change: Included in our earnings release and on our website.

Margins and reduce our costs.

Speaker Change: All comparisons of our 2025 first quarter are made against the 2024 first quarter results unless otherwise noted I will now turn the call over to Margaret Thanks Lindsay.

Speaker Change: As part of that we made a commitment to deliver for the 2025 year an improvement of SG&A as a percentage of gross by 6% to 700 basis points. We began the mandate by making the difficult decision to part ways with a number of team members and optimized our footprint in real estate through the targeted consolidations.

<unk> performance.

Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial statements are included in our earnings release and on our website.

Margaret: And welcome to our first quarter 2025 earnings call. We entered the year with a few simple mandates now more rvs improve our margins and reduce our costs.

All comparisons of our 2025 first quarter are made against the 2024 first quarter results unless otherwise noted I will now turn the call over to Margaret Thanks, Lindsay and good morning, and welcome to our first quarter 2025 earnings call. We entered the year with a few simple mandates so more rvs improve our.

Speaker Change: Of dealerships.

Margaret: Part of that we made a commitment to deliver for the 2025 year, an improvement of SG&A as a percentage of gross by 6% to 700 basis point.

Speaker Change: Working to accelerate sales per rooftop and improve efficiency.

Speaker Change: Through an intense focus on profitability, we achieved EBITDA growth of nearly four times the previous year in the quarter we.

Margaret: We began the mandate by making the difficult decision to part ways with a number of team members and optimized our footprint and real estate through the targeted consolidation of dealerships.

Speaker Change: We've taken decisive action on SG&A and Kras preservation during the first quarter.

Margins and reduce our costs as part of that we made a commitment to deliver for the 2025 year an improvement of SG&A as a percentage of gross by 6% to 700 basis points. We began the mandate by making the difficult decision to part ways with a number of team members and optimized our footprint.

The primary benefits of which we expect to show up in the second half of the year through the balance of the year. So we may achieve our goals are.

Margaret: Working to accelerate sales per rooftop and improve efficiency.

Margaret: Through an intense focus on profitability, we achieved EBITDA growth of nearly four times the previous year in the quarter we've.

Speaker Change: Our company is uniquely positioned to outperform compared to our peers, especially in an environment like this with stabilizing forces in the used business the good Sam business and our service and parts business.

Margaret: We've taken decisive action on SG&A cost preservation during the first quarter.

Real estate through the targeted consolidation of dealerships working to accelerate sales per rooftop and improve efficiency.

Margaret: The primary benefits of which we expect to show up in the second half of the year through the balance of the year. So we may achieve our goals.

Speaker Change: <unk>, we sell are built in America. So that people can see America mitigating the impact from tariffs to our industry.

Through an intense focus on profitability, we achieved EBITDA growth of nearly four times the previous year in the quarter, we've taken decisive actions on SG&A and Kras preservation during the first quarter. The primary benefits of which we expect to show up in the second half of the year through the balance of the year. So we may achieve.

Margaret: Our company is uniquely positioned to outperform compared to our peers, especially in an environment like this where stabilizing forces in the used business.

Speaker Change: There are three very specific points around this topic, we expect the direct direct tariff impact to the broader RV industry to be relatively immaterial with new model year, 'twenty six pricing up to be up in the mid single digit range in.

Good Sam: The good Sam.

Good Sam: And our service and parts business.

Good Sam: The Rvs, we sell are built in America. So that people can see America mitigating the impact from tariffs to our industry.

Speaker Change: In the event new model year, 2026 prices increase more materially we see the use side of our business as evidenced in Q1 as it continue will benefit for increasing value in this area.

Our goal.

Our company is uniquely positioned to outperform compared to our peers, especially in an environment like this with stabilizing forces in the used business the good Sam business and our service and parts business.

Good Sam: There are three very specific points around this topic, we expect the direct direct tariff impact to the broader RV industry to be relatively immaterial with new model year 2006 pricing to be up in the mid single digits range.

Speaker Change: And our contract manufacturing strategy allows us to react swiftly on the new side of the business, we have not seen any discernible impact on demand from tariff uncertainty. This includes no clear evidence of any pull forward demand or pre buying giving us greater confidence in the positive March.

RV is we sell are built in America. So that people can see America mitigating the impact from tariffs to our industry. There are three very specific points around this topic, we expect the direct direct tariff impact to the broader RV industry to be relatively immaterial with new model year two.

Good Sam: In the event new model year, 2026 prices increase more materially we see the use side of our business as evidenced in Q1 as it continue will benefit for increasing value in this area.

Speaker Change: And April sales trends, we are seeing.

Good Sam: And our contract manufacturing strategy allows us to react swiftly on the new side of the business, we have not seen any discernible impact on demand from tariff uncertainty.

Speaker Change: We remain confident in the guide posts, we've laid out to deliver growth in excess of low double digits in the used units low single low single digits in new vehicle gross margins within our historical range and SG&A as a percentage of gross profit by improving 6% to 700 Bay.

Speaker Change: <unk> thousand six pricing to be up in the mid single digits range.

Speaker Change: The event new model year, 2026 prices increase more materially we see the use side of our business as evidenced in Q1 as it continue will benefit for increasing value in this area.

Good Sam: This includes no clear evidence of any pull forward demand or pre buying giving us greater confidence in the positive March and April sales trends, we are seeing.

Speaker Change: And our contract manufacturing strategy allows us to react swiftly on the new side of the business, we have not seen any discernible impacts on demand from tariff uncertainty. This includes no clear evidence of any pull forward demand or pre buying giving us greater confidence in the positive March <unk>.

Speaker Change: This points, while we experienced some pressure on asps during the quarter were committed to managing our SG&A to mitigate any ASP variability that can persist in the near term, while finding new customers and growing our market share.

Good Sam: We remain confident in the guide posts, we've laid out to deliver growth in excess of low double digits in the used units.

Good Sam: So low single digits in new vehicle gross margins within our historical range and SG&A as a percentage of gross profit by improving 6% to 700 basis points, while we experienced some pressure on the asps during the quarter were committed to managing our SG&A.

Speaker Change: We believe in the strength in our business and how we are positioned for idiosyncratic growth and 25, I will now turn the call over to Matt.

Speaker Change: And April sales trends, we are seeing.

Speaker Change: We remain confident in the guide posts, we've laid out to deliver growth in excess of low double digits and they use units low single low single digits in new vehicle gross margins within our historical range and SG&A as a percentage of gross profit by improving 6% to 700 Bay.

Matt: Thanks Marcus.

Speaker Change: Our momentum in new and used unit sales have extended far beyond March with April to date used same store unit sales up high teens and with new unit sales up high single digits. We again reached record levels of combined new and used unit market share sitting at over 14% through <unk>.

Good Sam: Mitigate any ASB variability that can persist in the near term, while finding new customers and growing our market share we.

Matt: We believe in the strength in our business and how we are positioned for idiosyncratic growth and 25, I will now turn the call over to Matt.

Speaker Change: This points, while we experienced some pressure on the asps during the quarter were committed to managing our SG&A to mitigate any ASP variability that can persist in the near term, while finding new customers and growing our market share.

Matt: Thanks Marcus.

Matt: February <unk>.

Matt: Our momentum in new and used unit sales have extended far beyond March with April to date used same store unit sales up high teens and with new unit sales up high single digits.

Matt: <unk>, we continue to maintain a high degree of velocity within our used RV supply chain, helping to fuel our significant use sales momentum.

Matt: We achieved record levels of used inventory procurement in March and we are on pace to set another record in April this laser focus effort insurers, we have an adequate supply of used inventory to sustain our comps into the peak selling season.

Speaker Change: We believe in the strength in our business and how we are positioned for idiosyncratic growth in 'twenty five I'll now turn the call over to Matt. Thanks markets, our momentum in new and used unit sales have extended far beyond March with April to date used same store unit sales up high teens and with new unit sales.

Matt: We again reached record levels of combined new and used unit market share being at over 14% through February.

Matt: Fortunately, we continue to maintain a high degree of velocity within our used RV supply chain, helping to fuel our significant use sales momentum.

Matt: We continue to closely monitor affordability with a further shift to entry level single axle units a trend that we believe could persist throughout the selling season.

Speaker Change: Up high single digits, we again reached record levels of combined new and used unit market share sitting at over 14% through February.

Matt: We achieved record levels of used inventory procurement in March and we are on pace to set another record in April this laser focused effort insurers, we have an adequate supply of used inventory to sustain our comps into the peak selling season.

Matt: Excluding these entry level products, our new ASP.

Matt: In the quarter much more in line with our expectations entering the year.

Margaret: Importantly, we continue to maintain a high degree of velocity within our used RV supply chain, helping to fuel our significant use sales momentum.

Matt: We opened nine dealerships during the quarter, including five lazy days locations. We are pleased to report. These locations were profitable in March which compares to a significant cumulative EBITDA loss for these properties prior to acquisition.

Matt: We continue to closely monitor affordability with a further shift to entry level single actual unit.

Margaret: We achieved record levels of used inventory procurement in March and we are on pace to set another record in April this laser focus effort insurers, we have an adequate supply of used inventory to sustain our comps into the peak selling season.

Matt: Trend that we believe could persist throughout the selling season.

Matt: Excluding these entry level products are new AFC was up in the quarter much more in line with our expectations entering the year.

Matt: As we move through 2025, we remain confident in the recent strength of our new and used businesses.

Matt: We opened nine dealerships during the quarter, including five lazy days location.

Margaret: We continue to closely monitor affordability with a further shift to entry level single axle units a trend that we believe could persist throughout the selling season.

Tom: Now I'll turn the call over to Tom.

Tom: Thanks, Matt for the first quarter, we recorded revenue of $1 4 billion, an increase of 4% driven primarily by a 30% increase in used unit sales.

Matt: We're pleased to report these locations were profitable in March which compares to a significant cumulative EBITDA loss for these properties prior to acquisition.

Margaret: Excluding these entry level products, our new ASP was up in the quarter much more in line with our expectations entering the year.

Matt: As we move through 2025, we remain confident in the recent strength of our new and used businesses.

Tom: Used vehicle gross margins of 18, 6% continued to exhibit year over year improvement as we aggressively brought fresh inventory back into the system.

Margaret: We opened nine dealerships during the quarter, including five lazy days locations. We are pleased to report. These locations were profitable in March which compares to a significant cumulative EBITDA loss for these properties prior to acquisition.

Matt: Now I'll turn the call over to Tom Thanks.

Tom: Thanks, Matt for the first quarter, we recorded revenue of $1 4 billion, an increase of 4% driven primarily by a 30% increase in used unit sales you.

Tom: Within good Sam we've made investments in our roadside assistance business in response to industry consolidation and business opportunities positioning the organization for margin stabilization and earnings growth later in 2025, as we leverage this new infrastructure and lab claims cost increases.

Tom: As we move through 2025, we remain confident in the recent strength of our new and used businesses I will now turn the call over to Tom.

Tom: Used vehicle gross margins of 18, 6% continued to exhibit year over year improvement as we aggressively brought fresh inventory back into the system.

Tom: Within products services and other our core dealer service revenues and our accessory business showed improved gross profit and margins. Despite reported topline pressure from the sale of our furniture business. During the second quarter of last year, and a higher allocation of service hours to used inventory reconditioning.

Tom: Thanks, Matt.

Good Sam: For the first quarter, we recorded revenue of $1 4 billion, an increase of 4% driven primarily by a 30% increase in used unit sales.

Used vehicle gross margins of 18, 6% continued to.

Tom: We reported adjusted EBITDA of $31 1 million compared to $8 2 million last year.

Tom: SG&A for the quarter was in line with our expectations and does not fully reflect cost saving actions taken in the first quarter or the additional measures currently underway in the second quarter.

Tom: As we saw new Asp's soften we took action at the end of the quarter to eliminate roughly $35 million of annualized SG&A through a combination of head count marketing and contract cost reductions.

Operator: Good day, and welcome to the Camping World Holdings, Inc. First Quarter 2025 Results Conference Call. All participants will be in the lesson only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero.

Tom: We recently announced the consolidation of stores in six markets, reducing our dealer count in April while continuing to improve both our sales per rooftop and profitability.

Furniture business during the second quarter of last year, and a higher allocation of service hours to used inventory reconditioning.

We reported adjusted EBITDA of $31 1 million compared to $8 2 million last year.

Tom: We ended the quarter with about $179 million of cash, including approximately $158 million of cash in the floor plan offset account. We also have about $367 million in used inventory net of flooring and another $203 million of parts inventory.

Operator: After today's presentation, there will be an opportunity to ask questions. To ask a question, press star then 1 on your telephone keypad. To withdraw your question, please press star, then. Please note that this event is being recorded.

G&A for the quarter was in line with our expectations and does not fully reflect cost saving actions taken in the first quarter or the additional measures currently underway in the second quarter.

As we saw new Asp's soften we took action at the end of the quarter to eliminate roughly $35 million of annualized SG&A through a combination of headcount marketing and contract cost reductions.

Tom: Finally, we own about $205 million of real estate without an associated mortgage I'll now turn the call back over to Markus. Thanks, Tom our team's conviction really stems from our current outperformance of our competitors a carryover from last year, our growth in market share and our ability to control costs and keep laser.

Lindsey Christen: I would now like to turn the conference over to Lindsey Christen, Chief Administration Legal Officer. Please go ahead.

Lindsey Christen: Thank you and good morning, everyone. A press release covering the company's first quarter ended March 31, 2025 financial results was issued yesterday afternoon. And a copy of that press release can be found in the investor relations section on the company's website.

We recently announced the consolidation of stores in six markets, reducing our dealer count in April while continuing to improve both our sales per rooftop and profitability.

Tom: <unk> on reducing SG&A.

Tom: I'd now like to open up the call for Q&A.

We ended the quarter with about $179 million of cash, including approximately $158 million of cash in the floor plan offset account. We also have about $367 million of used inventory net of flooring and another $203 million of parts inventory.

Tom: Yeah.

Lindsey Christen: Management's remarks on this call may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These remarks may include statements regarding our business plans and goals, macroeconomic and industry trends, customer trends, inventory strategy, future growth of our operation, capital allocation, and future financial results and positions. Actual results may differ materially from those indicated by these remarks as a result of various important factors, including those discussed in the risk factors section in our Form 10-K, on our Form 10-Qs, and other reports on file at the SEC.

Tom: We will now begin the question and answer session.

Tom: To ask a question you May press Star then one on your telephone keypad.

Tom: If youre using a speakerphone please pick up your handset before pressing the keys.

Finally, we own about $205 million of real estate without an associated mortgage I'll now turn the call back over to Markus. Thanks, Tom our team's conviction really stems from our current outperformance of our competitors a carryover from last year, our growth in market share and our ability to control costs and keep laser.

Tom: If you have any time question has been addressed and you would like to withdraw your question. Please press Star then two.

Tom: At this time, we will pause momentarily to assemble the roster.

Speaker Change: Our first question comes from Joe also Belo from Raymond James. Please go ahead.

<unk> on reducing SG&A.

Speaker Change: Good morning.

I'd now like to open up the call for Q&A.

Speaker Change: Mark I want to go back to your comments regarding Asp's, you mentioned, they were a little bit softer than expected.

Lindsey Christen: Any forward-looking statements represent our views only as of today, and we undertake no obligation to update them. Please also note that we will be referring to certain non-GAAP financial measures on today's call, such as EBITDA, adjusted EBITDA, adjusted earnings per share diluted, which we believe may be important to investors to assess our operating performance. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial statements are included in our earnings release and on our website. All comparisons of our 2025 first quarter are made against the 2024 first quarter results, unless otherwise noted.

We will now begin the question and answer session.

Speaker Change: Sounds like a lot of that was mix.

To ask a question you May press Star then one on your telephone keypad.

Speaker Change: But how much of that was promotion driven maybe as a related question. How much support are you getting from your OEM partners right now versus let's say last year.

If youre using a speakerphone please pick up your handset before pressing the keys.

If you anytime question has been addressed and you would like to withdraw your question. Please press Star then two.

Speaker Change: Well I'm going to disconnect. The last two parts to the ASP issue.

Speaker Change: As it relates to how much help are we getting from our manufacturers. So we're particularly continues to be committed to pushing things through the system and growing market share in 2025, but we're doing it responsibly by proper inventory planning proper stocking and a real collaboration around making sure that theyre sufficiency for both companies I think.

At this time, we will pass momentarily to assemble or else too.

Our first question comes from Joe also below from Raymond James. Please go ahead.

Good morning.

Marcus Lemonis: I'll now turn the call over to Marcus. Thanks, Lindsey. Good morning and welcome to our first quarter 2025 earnings call. We entered the year with a few simple mandates. Sell more RVs, improve our margins, and reduce our costs. As part of that, we made a commitment to deliver for the 2025 year an improvement of SG&A as a percentage of gross by six to seven hundred basis points.

So Marc I want to go back to your comments regarding Asp's you mentioned, they were a little bit softer than expected.

Speaker Change: As we look at I think as we look at the margin profile, it's clear that we didn't need to be overly promotional or new margins continue to be quite frankly in line with our historical levels, even though we know competitors have actually gotten far more aggressive we haven't had to do that our ASP softness.

It sounds like a lot of that was mix.

How much of that was promotion driven maybe as it related question. How much support are you getting from your OEM partners right now versus let's say last year.

Well I'm going to disconnect. The last two parts to the ISP issue as.

Speaker Change: Some people like to describe it for US is what it is and what I mean by that is our job every day that we wake up is to sell more rvs generate more growth and grow market share I think Matt had mentioned that our market share in the first 90 days of the year is already 14% keep in mind, we had set a goal to be.

Marcus Lemonis: We began the mandate by making the difficult decision to part ways with a number of team members and optimized our footprint in real estate through the targeted consolidation of dealerships. working to accelerate sales per rooftop and improve efficiency. Through an intense focus on profitability, we achieved EBITDA growth of nearly four times the previous year in the quarter. We've taken decisive action on SG&A and crafts preservation during the first quarter, the primary benefits of which we expect to show up in the second half of the year through the balance of the year so we may achieve our goal.

As it relates to how much help are we getting from our manufacturers. So we're particularly and continues to be committed to pushing things through the system and growing market share in 2025, but we're doing it responsibly by proper inventory planning proper stocking and a real collaboration around making sure that their sufficiency for both companies.

Speaker Change: Beginning of the year I'm, just going from 11, 2% and 24 to 12, so we're not having pressure in any of those things I think what we're doing better than everybody else is we're finding the gaps in the market, where the customer wants to be and that isn't in just finding the least expensive units itself. When you look at all the different.

As we look at I think as we look at the margin profile, it's clear that we didn't need to be overly promotional or new margins continue to be quite frankly in line with our historical levels, even though we know competitors have actually gotten far more aggressive we haven't had to do that or AOSP softened.

Marcus Lemonis: Our company is uniquely positioned to outperform compared to our peers, especially in an environment like this, with stabilizing forces in the used business, the good Sam business, and our service and parts The RVs we sell are built in America so that people can see America, mitigating the impact from tariffs to our industry. There are three very specific points around this topic. We expect the direct direct tariff impact to the broader RV to be relatively immaterial, with new model year 26 pricing to be up in the mid-single-digit In the event new model year 2026 prices increase more materially, we see the used side of our business, as evidenced in Q1, as a continual benefit for increasing value in this area.

Speaker Change: Type codes that exist in all the different floor plans that exist from a small travel trailer single axle up to a motor home. We're finding the opening price points in all of those segments, which is what we believe is driving overall gross profit dollars, it's driving market share and it's putting a little bit of pressure.

Some people like to describe it for US is what it is and what I mean by that is our job every day that we wake up is to sell more rovs generate more growth and grow market share I think Matt had mentioned that our market share in the first 90 days of the year is already 14% keep in mind, we had set a goal.

Speaker Change: On our Asps.

The beginning of the year I've just going from 11.2 in 24 to 12, so we're not having pressure in any of those things I think what we're doing better than everybody else is we're finding the gaps in the market, where the customer wants to be and that isn't in just finding the least expensive units to sell when you look at all the.

Speaker Change: When you extract out the entry level <unk> and 17 B unit that we sell primarily to meet new customers to put people in the good Sam file to introduce them to our camping world in parts and service business. When you separate that all out and you extracted our asps are actually over $40000.

<unk> type codes that exist in all the different floor plans that exist from a small travel trailer single axle up to a motor home. We're finding the opening price points in all of those segments, which is what we believe is driving overall gross profit dollars, it's driving market share and it's putting a little bit of pressure.

Speaker Change: I think what really matters to us is that we don't want to manage our business on asps, but we're not tone deaf to understand that a drop in asps $2000 equates to revenue and gross profit.

Marcus Lemonis: And our contract manufacturing strategy allows us to react swiftly on the new side of the We have not seen any discernible impacts on demand from tariff uncertainty. This includes no clear evidence of any pull-forward demand or pre-buying, giving us greater confidence in the positive March and April sales trends we are seeing. We remain confident in the guideposts we've laid out to deliver growth in excess of low double digits in the used units, low single digits in new, vehicle gross margins within our historical range, and SG&A as a percentage of gross profit by improving 6 to 700 basis points.

Speaker Change: In a way to address that combat that right out of the Rep. That's why you hear all of this discussion around location consolidation the elimination of fixed costs. The departure of hundreds and hundreds of people from our organization. We understand that we made a commitment that six to 700 basis points of improvement or.

On our Asps.

When you extract out the entry level 13 be in 17 B units that we sell primarily to meet new customers to put people in the good Sam file to introduce them to our camping world in parts and service business. When you separate that all out and you extracted our asps are actually over $40000.

Speaker Change: Our required and we knew that Asp's were one of the variables in that equation and we're acting real time.

Speaker Change: Please know that the ASP numbers that you see in Q1 typically accelerate as we get into Q2 Q3 and Q4. So we still expect them to be up from where you see them in Q1, but there is a possibility there is a possibility that they could be off for the full year, we're operating our business as if theyre going to be.

I think what really matters to us is that we don't want to manage our business on asps, but we're not tone deaf to understand that a drop in asps $2000 equates to revenue and gross profit.

Marcus Lemonis: While we experience some pressure on ASP during the quarter, we're committed to managing our SG&A to mitigate any ASP variability that can persist in the near term while finding new customers and growing our market share. We believe in the strength in our business and how we are positioned for idiosyncratic growth in 25.

In a way to address that comeback that right out of the Rep. That's why you hear all of this discussion around location consolidation the elimination of fixed costs. The departure of hundreds and hundreds of people from our organization. We understand that we made a commitment that six to 700 basis points of improvement or <unk>.

Speaker Change: About $2000 and we're doing that proactively by eliminating more costs in anticipation and trying to offset some of that with used evidenced by Q1.

Understood and maybe just to follow up on that you mentioned new same store sales.

Required and we knew that Asp's were one of the variables in that equation and we're acting real time.

Matt Wagner: I'll now turn the call over to Matt. Thanks, Marcus. Our momentum in new and used unit sales has extended far beyond March. With April to date used same store unit sales up high teens, and with new unit sales up high single digit. We again reach record levels of combined new and used unit market share, seeing it over 14% through February. Importantly, we continue to maintain a high degree of velocity within our used RV supply chain, helping to fuel our significant used sales momentum. We achieved record levels of used inventory procurement in March, and we are on pace to set another record in April.

Speaker Change: Units were up high single digits in April I think it was down 2% from the first quarter. So I guess, what drove the acceleration that youre seeing here in April.

Please know that the ASP numbers that you see in Q1 typically accelerate as we get into Q2 Q3 and Q4. So we still expect them to be up from where you see them in Q1, but there's a possibility there's a possibility that they could be off for the full year, we're operating our business as if theyre going to be.

Speaker Change: Well, Joe I mean, just to reflect upon that first call that we had to start the year, which was our year end call for 2024, we experienced some of that inclement weather in February in which case, our new same store sales were slightly down in February. However, when we look at our March results, we were actually up about 3% on new same store.

About $2000 and we're doing that proactively by eliminating more costs in anticipation and trying to offset some of that with used evidenced by Q1.

Speaker Change: Our sales in March and then as we rolled into the April timeframe. The comps are a little bit easier. When we look at a two year stack or even just frankly did year over year.

Understood and maybe just to follow up on that you mentioned new same store sales.

Speaker Change: It was expected that we should be in this high single digit range, which is why we can still maintain throughout the balance of the year, we feel confident that we should hit that low single digit.

Matt Wagner: This laser-focused effort ensures we have an adequate supply of used inventory to sustain our comps into the peak selling time. We continue to closely monitor affordability with a further shift to entry-level, single-axle units, a trend that we believe could persist throughout the selling. Excluding these entry-level products, our new ASP was up in the quarter, much more in line with our expectations entering the year.

Units were up high single digits in April I think it was down 2% from the first quarter. So I guess, what drove the acceleration that you're seeing here in April.

Speaker Change: New same store sales for the balance of the year in particular I think the thing maybe more exciting for me is the noise around Easter in April. So we were going to be up material undue in April we're going to be up materially in use in April and we had Easter in April as opposed to March So I think the.

Well, Joe I mean, just to reflect upon that first call that we had to start the year, which was our year end call for 2024, we experienced some of that inclement weather in February in which case, our new same store sales were slightly down in February. However, when we look at our March results, we were actually up about 3% on new same store.

Matt Wagner: We opened nine dealerships during the quarter, including five La-Z-Days locations. We are pleased to report these locations were profitable in March, which compares to a significant cumulative EBITDA loss for these properties prior to acquisition.

Speaker Change: The real upside in the real momentum that we're seeing quite frankly is maybe a little under under addressed because of Easter.

Our sales in March and then as we rolled into the April timeframe. The comps are a little bit easier. When we look at a two year stack or even just frankly did year over year.

Speaker Change: Got it okay. Thank you.

It was expected that we should be in this high single digits range, which is why we can still maintain throughout the balance of the year, we feel confident that we should hit that low single digit.

Speaker Change: Thank you.

Speaker Change: Our next question comes from James Hardiman from Citigroup. Please go ahead.

Matt Wagner: As we move through 2025, we remain confident in the recent strength of our new and used business.

Speaker Change: Hi, This is Sean Wagner on for James.

Tom Kirn: I'll now turn the call over to Tom. Thanks, Matt. For the first quarter, we recorded revenue of $1.4 billion, an increase of 4%, driven primarily by a 30% increase in used unit sales. Used vehicle gross margins of 18.6% continued to exhibit year over year improvement as we aggressively brought fresh inventory back into the system.

New same store sales for the balance of the year in particular I think the thing maybe more exciting for me is the noise around Easter in April. So we were gonna be up material undue in April we're going to be up materially in use in April and we had Easter in April as opposed to March So I think the.

Speaker Change: She had previously spoke about the 3% to 5% pricing increase potentially for from tariffs.

Speaker Change: Headwinds there from the Oems has your thinking I guess change that number at all with all the moving pieces are.

Speaker Change: Are you expecting to still see that potentially before model year changeover or or.

The real upside in the real momentum that we're seeing quite frankly is maybe a little under under addressed because of Easter.

Speaker Change: I guess, how else should we be thinking about potential fallout for the RV industry and within your business well.

Tom Kirn: Within GoodSAM, we've made investments in our roadside assistance business in response to industry consolidation and business opportunities, positioning the organization for margin stabilization and earnings growth later in 2025, as we leverage this new infrastructure and lap claims costs. Within product services and other, our core dealer service revenues and our accessory business showed improved gross profit and margins, despite reported top line pressure from the sale of our furniture business during the second quarter of last year, and a higher allocation of service hours to use inventory reconditioning. We reported adjusted EBITDA of $31.1 million compared to $8.2 million last SG&A for the quarter was in line with our expectations and does not fully reflect cost-saving actions taken in the first quarter or the additional measures currently underway in the second quarter.

Speaker Change: Well, we don't think Theres any fallout for the RV industry. In fact, we think the RV industry as a whole is very defensible against it but we think our company is uniquely positioned.

Got it okay. Thank you.

Thank you.

The next question comes from James Hardiman from Citigroup. Please go ahead.

Speaker Change: As a matter of clarity all RV dealers do not buy rvs at the same price and so we're not operating on a level playing field. So we have a little bit of a competitive advantage. There when we talk about trying to predict where we think the prices are going to increase number one we don't anticipate any price increases before the model year 'twenty six calendar.

Hi, This is Sean Wagner on for James.

She was previously spoke about.

3% to 5% pricing increase potentially for from tariffs.

Headwinds there from the Oems.

Thinking I guess change that number at all with all the moving pieces are.

Speaker Change: And we haven't seen any indications of any materiality of such we also know that any increase in new values, even if it ends up being 6% to 7% for the industry. At large is also a buoy for our used business and so part of the reason we're excited to continue to accelerate our used business.

Or are you expecting to still see that potentially before <unk>.

Yoga or or I guess, how else should we be thinking about potential fallout for the RV industry and within your business.

Speaker Change: Does the inventory that we have on the ground today becomes more valuable our ability to procure with our strong balance sheet and our processes becomes more valuable and our ability to execute and hit our goals and our guidepost become easier and we don't see any increase at this point in our <unk> business that we believe is going.

Tom Kirn: As we saw new ASPs soften, we took action at the end of the quarter to eliminate roughly $35 million of annualized SG&A through a combination of headcount, marketing, and contract cost reduction.

Tom Kirn: We recently announced the consolidation of stores in six markets, reducing our dealer count in April, while continuing to improve both our sales per rooftop and profitability. We ended the quarter with about $179 million of cash, including approximately $158 million of cash in the floor plan offset account. We also have about $367 million of used inventory, net of flooring, and another $203 million of parts inventory.

Speaker Change: To create any friction that will create a demand issue, but we're also not naive to think that a consumer outside of our business outside of like our own structure may be affected and so we're making sure that we're making all the SG&A moves and all the mix shifts to new to used to look at different price points to be able to address any reserve.

Speaker Change: Distance that the customer could potentially have from what tariffs could cost them in other parts of their life.

Speaker Change: Tori that we have on the ground today becomes more valuable our ability to procure with our strong balance sheet and our processes becomes more valuable and our ability to execute and hit our goals and our guidepost become easier and we don't see any increase at this point in our <unk> business that we believe is going to create.

Speaker Change: And I don't really think Sean that any of our thinking has changed as we spoke about in our prepared remarks, I mean, we've talked about being up mid single digits, which I would just suggest that we're still largely in terms of all the products that we source from the largest manufacturers of being Thor for sure, but winnebago they'll all be in that three to five ish percent range there might be some fringe players that are pushing it more.

Tom Kirn: Finally, we own about $205 million of real estate without an associated mortgage.

Marcus Lemonis: I'll now turn the call back over to Marcus. Thanks, Tom. Our team's conviction really stems from our current outperformance of our competitors. our growth in market share and our ability to control costs and keep laser focused on reducing SG&E.

Speaker Change: Any friction that will create a demand issue, but we're also not naive to think that a consumer outside of our business outside of like our own structure may be affected and so we're making sure that we're making all the SG&A moves and all the mix shifts to new to used to look at different price points to be able to address any resistance.

Speaker Change: Like seven to eight 9%, but I think across the board. We would anticipate just some basics price increases here over the next month and a half which to answer your question about the model year changeover typically for most of these manufacturers that'll be June one in which case, we did the deal with your body have sourced most of the product that we need to get through the selling season, and we feel like we're really.

Operator: I'd now like to open up the call for Q&A. We will now begin the question and answer session. To ask a question, you may press star then 1 on your telephone keypad. If you're using a speakerphone, please pick up your handset before pressing the key.

Speaker Change: That the customer could potentially have from what tariffs could cost them in other parts of their life.

Speaker Change: <unk> patiently position to take advantage of whatever demand exists there with these 25 that we've ramped up some of these purchases on the last couple of months.

Speaker Change: And I don't really think Sean that any of our thinking has changed as we spoke about in our prepared remarks, I mean, we've talked about being up mid single digits, which I would just suggest that we're still largely in terms of all the products that we source from the largest manufacturers of being door for sugar Winnebago they'll all be in that three to five ish percent range there might be some fringe players that are pushing more of that.

Operator: If you're anytime your question has been addressed and you would like to withdraw your question, please press star then to At this time, we will pause momentarily to assemble a roster.

Speaker Change: Okay, that's great.

Speaker Change: Just one quick follow up I guess in the past you've spoken about not liking where your leverage is and wanted to get that down by the end of the year. I guess can you what else can you tell us about the durability of your balance sheet and cash flow, if we see a meaningful.

Joe Altobello: Our first question comes from Joe Altobello from Raymond James. Please go ahead. Good morning. So Marcus, I want to go back to your comments regarding ASPs. You mentioned they were a little bit softer than expected. It sounds like a lot of that was mixed. But how much of that was promotion-driven? Maybe as a related question, how much support are you getting from your OEM partners right now versus, let's say, last year?

Margaret: 789%, but I think across the board, we'd anticipate just some basic price increases here over the next month and a half which to answer your question about the model year changeover typically for most of these manufacturers that'll be June one in which case, we had to deal with your body have sourced most of the product that we need to get through the selling season, and we feel like we're really.

Speaker Change: It's the same thing we've said from day, one we have a very healthy balance sheet as Tom evidenced between cash used inventory that we owned free and clear parts that we own free and clear.

Margaret: Advantageously positioned to take advantage of whatever demand exists there with these 25 that we've ramped up some some of these purchases on the last couple of months.

Marcus Lemonis: Well, I'm going to disconnect the last two parts to the ASP issue. As it relates to how much help are we getting from our manufacturers, SOAR particularly continues to be committed to pushing things through the system and growing market share in 2025. But we're doing it responsibly by proper inventory planning, proper stocking, and a real collaboration around making sure that there's efficiency for both companies. I think as we look at the margin profile, it's clear that we didn't need to be overly promotional. Our new margins continue to be, quite frankly, in line with our historical levels, even though we know competitors have actually gotten far more aggressive.

Speaker Change: Real estate that we own free and clear and available revolvers, both on the floor plan and other areas, we've actually paid down debt and we will continue to pay down debt through the balance of the year any investor that has concerned about our leverage is lined up with us we agree which is why it was important for us to I'll kick our coverage in Q1 and continued to.

Speaker Change: Okay, that's great and if I.

Margaret: Just one quick follow up on this in the past you've spoken about not liking where your leverage is and wanted to get that down by the end of the year.

Speaker Change: Can you what else can you tell us about the durability of your balance sheet and cash flow, if we see a meaningful.

Speaker Change: Oliver on the results that we have told people we will deliver on for the simple fact that we want to generate cash and we want to delever as fast as we can it is our goal to always be in the three and a half or below range quite frankly, I would prefer to be at three we understand just through math that we're not there today so a combination.

Speaker Change: Protracted slowdown in the economy, and given where the stock's trading is there any assurance that you can give to investors to kind of calm fears around financial leverage and that associated risk. It's the same thing. We've said from day, one we have a very healthy balance sheet as Tom evidenced between cash used inventory that we own free and clear parts that we own free.

Speaker Change: <unk> of selling.

Marcus Lemonis: We haven't had to do that. Our ASP softness, as some people like to describe it for us, is what it is.

Good Sam: And clear our real estate that we own free and clear and available revolvers, both on the floor plan and in the other areas, we've actually paid down debt and we will continue to pay down debt through the balance of the year any investor that has concerned about our leverage is lined up with us we agree which is why it was important for us to I'll kick our coverage in Q1.

Speaker Change: Under utilized assets and freeing things up and improving our results are how we want to accelerate getting their investors should feel very comfortable that we are laser focused on doing that because we understand that that's a risk and we want to eliminate that risk as fast as we can.

Marcus Lemonis: And what I and grow market share. I think Matt had mentioned that our market share in the first 90 days of the year is already 14%. Keep in mind, we had set a goal at the beginning of the year of just going from 11.2 in 2024 to 12. So we're not having pressure in any of those things. I think what we're doing better than everybody else is we're finding the gaps in the market where the customer wants to be. And that isn't in just finding the least expensive units to sell. When you look at all the different type codes that exist in all the different floor plans that exist, from a small travel trailer, single axle up to a motor home, we're finding the opening price points in all of those.

Speaker Change: That's great. Thanks, a lot guys.

Good Sam: One and continued to deliver on the results that we have told people we will deliver on for the simple fact that we want to generate cash and we want to delever as fast as we can it is our goal to always be in the three and a half or below range quite frankly, I would prefer to be at the three we understand just through math that we're not there.

Speaker Change: Thank you.

Speaker Change: The next question comes from Alex Paris from Bank of America go ahead.

Alex Paris: Hi, Thanks for taking my questions here and congrats on a strong quarter.

Speaker Change: First just a very high level question.

Speaker Change: What do you think is driving the strength in your business versus the softness in consumer confidence a more tepid outlook that we're starting to see show up in the broader sort of consumer discretionary landscape. Thanks.

Good Sam: Here today, so a combination of selling underutilized.

Good Sam: Under utilized assets and freeing things up and improving our results are how we want to accelerate getting their investors should feel very comfortable that we are laser focused on doing that because we understand that that's a risk and we want to eliminate that risk as fast as we can.

Speaker Change: Well, it's our belief that the softness that the industry may be experiencing and the softness that the general consumer maybe indicating to us on other transactions isn't really evidenced in our business specifically because we serve the installed base first and I think it's really important to understand that there are millions and millions.

Marcus Lemonis: which is what we believe is driving overall gross profit dollars, it's driving market share, and it's putting a little bit of pressure on our ASX. When you extract out the entry level 13B and 17B units that we sell, primarily to meet new customers, to put people in the GoodSAM file, to introduce them to our camping world and parts and service business, when you separate that all out, and you extract it, our ASPs are actually over $40,000. I think what really matters to us is that we don't want to manage our business on ASPs, but we're not tone deaf to understand that a drop in ASP, $2,000, equates to revenue and gross profit.

Good Sam: That's great. Thanks, a lot guys.

Good Sam: Thank you.

Speaker Change: The next question comes from Alex Paris from Bank of America go ahead.

Speaker Change: Of RV, Ers, who already loved the lifestyle and if you go back and you look at the history of the RV business. There has never been a year, where the number of Rovs in registration and total circulation in use visiting campgrounds visiting our stores trading their units it has ever gone backwards and so that's stable foundation.

Alex Paris: Hi, Thanks for taking my questions here and congrats on a strong quarter.

Good Sam: First just a very high level question.

Speaker Change: Our active database of those consumers gives us a leg up on everybody. We also think that the fact that we really understand the affordability matrix around consumers and monthly payments gives us an advantage to show people that owning an RV at $2 89, a month $2 99, a month $149 a month.

Marcus Lemonis: in a way to address that, combat that, right out of the rip. That's why you hear all of this discussion around location consolidation, the elimination of fixed costs, the departure of hundreds and hundreds of people from our organization. We understand that we made a commitment that 600 to 700 basis points of improvement were required, and we knew that ASPs were one of the variables in that equation and were acting real time. Please know that the numbers that you see in Q1 typically accelerate as we get into Q2, Q3, and Q4. So we still expect them to be up from where you see them in Q1, but there's a possibility.

Speaker Change: In those price ranges and being able to have time with their family and take vacations and do activities that that kind of value is really what supersedes all the other things that are happening and so when people pulled back on major league sports or pull back on going to theme parks are taking European vacations, They don't pull back and taking a monthly <unk>.

Matt: Of RV, Ers, who already love the lifestyle and if you go back and you look at the history of the RV business. There has never been a year, where the number of Rovs in registration and total circulation in youth visiting campgrounds visiting our stores trading their units.

Matt: As ever gone backwards, and so that's stable foundation and our active database of those consumers gives us a leg up on everybody. We also think that the fact that we really understand the affordability matrix around consumers and monthly payments gives us an advantage to show people that owning an RV at $2 89.

Speaker Change: Spence of $2 89 to take multiple vacations with their families. We saw it in <unk>. We saw it in 2018, we saw it especially during the beginning of Covid before people couldn't do things that this business. If it's focused on the installed base through good Sam through us through service will do very well in an environment like.

Marcus Lemonis: There's a possibility that they could be off for the full year. We're operating our business as if they're going to be off about $2,000, and we're doing that proactively by eliminating more costs in anticipation and trying to offset some of that with used evidence by Q1.

Speaker Change: A month $2 99, a month $149 a month in those price ranges and being able to have time with their family and take vacations and do activities that that kind of value is really what supersedes all the other things that are happening and so when people pulled back on major league sports or pull back on going to theme parks are taking European Vaca.

Speaker Change: Because it's a really really affordable alternatives.

Speaker Change: That's incredibly helpful. And then my follow up was I just wanted to ask what is driving the use the outperformance that we've seen so far in <unk> in April to date.

Joe Altobello: Understood.

Marcus Lemonis: Maybe just just to follow up on that, you mentioned new Sainsbury's sales units were up high signal digits in April, I think it was down 2% in the first quarter. So I guess what drove the acceleration that you're seeing here in April? Well, Joe, I mean, just to reflect upon that first call that we had to start the year, which was our year-end call for 2024, we experienced some of that inclement weather in February, in which case our new same-source sales were slightly down in February. However, when we look at our March results, we were actually up about 3% on new same-source sales in March.

Speaker Change: How do you expect to keep driving that as we move forward here. Thanks.

Matt: <unk>, they don't pull back and taking a monthly expense of $2 89 to take multiple vacations with their families. We saw it in <unk>. We saw it in 2018, we saw it especially during the beginning of Covid before people couldn't do thinks that this business is focused on the installed base through good Sam through you.

Matt Wagner: Oh, Matt Wagner.

Speaker Change: Uh huh.

Speaker Change: Team members.

Speaker Change: Ultimately, Alex we've done a very good job as a team understanding exactly where we need to source products from and creating enough different mechanisms by which we could attractive for consumers or solicit them to sell their assets.

Matt: Use through service will do very well in an environment like this because it's a really really affordable alternatives.

Speaker Change: We try to refine this as best we could over the last year and a half one for those that have been in the industry are can recall for a little while that we experienced deflation and our new invoice pricing last year in which case the used marketplace became somewhat untenable for us as such the comps that we're heading into this year a little bit more manageable.

Marcus Lemonis: And then as we rolled into this April timeframe, the comps were a little bit easier. When we look at a two-year stack, or even just, frankly, just year over year, where it was expected that we should be in this high single-digit range, which is why we could still maintain, throughout the balance of the year, we feel confident that we should hit that low single-digit up new same-source sales for the balance of the year in particular.

Speaker Change: That's incredibly helpful. And then my follow up was I just wanted to ask what is driving the use of outperformance that we've seen so far in <unk> in April to date.

Tom: How do you expect to keep driving that as we move forward here. Thanks.

Speaker Change: And Furthermore, we have been a lot more creative in terms of sourcing products and understanding what the arbitrage is that exist between new versus used really the only limiting factor heading into this year with our used business was going to be our ability to secure and procure assets and in large part that was going to be a derivative of our human capital.

Matt Wagner: It's all Matt Wagner.

Speaker Change: To be honest tea matters.

Joe Altobello: I think the thing that's maybe more exciting for me is the noise around Easter in April. So we're going to be up material on new in April. We're going to be up materially in use in April. And we had Easter in April as opposed to March. So I think the real upside and the real momentum that we're seeing, quite frankly, is maybe a little under addressed because of Easter. Got it. Okay. Thank you.

Tom: Ultimately, Alex we've done a very good job as a team understanding exactly where we need to source products from and creating enough different mechanisms by which we could attractive for consumers or solicit them to sell their assets to us we try to refine this as best we could over the last year and a half one for those that have been in the industry.

Speaker Change: Capability to actually continue to secure enough assets to continue these growth we feel really good with how much we've been able to procure in the first four months of this year in fact setting records in each of the respective months the amount of used units purchased in each of those respective months. Historically. So now the question is how much more can we push this in <unk>.

Tom: Or can recall for a little while that we experienced deflation and our new invoice pricing last year in which case the used marketplace became somewhat untenable for us as such the comps that we're heading into this year, a little bit more manageable and Furthermore, we have been a lot more creative in terms of sourcing products and understanding what the arbitrage.

James Hardiman: The next question comes from James Hardiman from Citigroup, please go ahead.

Speaker Change: Much more creative can we get in terms of sourcing products I wanted to give you a visual that I think may help you and other folks understand how we think about selling rvs to consumers in general and if you can visualize what a periodic table looks like in the matrix. That's on the wall. We look at every single payment.

Sean Wagner: Hi, this is Sean Wagner on for James. I guess you previously spoke about the three to 5% pricing increase potentially for from tariff headwinds or from the OEMs. Has your thinking I guess changed on that number at all with all the moving tariff pieces? Or are you expecting to still see that potentially before your changeover? Or, or, I guess how else should we be thinking about potential fallout for the RV industry and within your Well, we don't think there's any fallout for the RV industry. In fact, we think the RV industry as a whole is very defensible against it.

Tom: Does that exist between new versus used really the only limiting factor heading into this year with our youth business was going to be our ability to secure and procure assets and in large part that was going to be a derivative of our human capital capability to actually continue to secure enough assets to continue these growth we feel really good.

Speaker Change: <unk> payment that could fill every single one of those things and as we look at trying to address the market between new and used in different floor plans, we try to make sure that what we carry a new what we carry and use can give people options inside of each one of those priced boxes, starting all the way from $89.

Tom: Good with how much we've been able to procure in the first four months of this year in fact setting records in each of the respective months the amount of used units purchased in each of those respective months. Historically. So now the question is how much more can we push this and how much more creative can we get in terms of sourcing products I wanted to give you a visual that I think may help.

Marcus Lemonis: But we think our company is uniquely positioned Matter of clarity, all RV dealers do not buy RVs at the same price. And so we're not operating on a level playing field. So we have a little bit of a competitive advantage there. When we talk about trying to predict where we think the prices are going to increase, number one, we don't anticipate any price increases before the model year 26 calendar. And we haven't seen any indications of any materiality of such. We also know that any increase in new values, even if it ends up being six to seven percent for the industry at large, is also a buoy for our used business.

Speaker Change: What's going up to what could be $200, a month and as you look at it across the board most dealers tend to look at those boxes and they are able to fill it with whatever the OEM provide peer.

Tom: You and other folks understand how we think about selling rvs to consumers in general and if you can visualize what a periodic table looks like in the matrix. That's on the wall. We look at every single payments monthly payments that could fill every single one of those things and as we look at trying to it.

Speaker Change: Period, because they don't have the balance sheet to buy used we actually have a three pronged approach to doing that whatever the manufacturer can fill on the grid.

Speaker Change: Our contract manufacturing can do to fill in all of the gaps that we think the OEM left behind and then we use the rest to fill it with us whether it's $200000 diesel motor home that used to be 500000, or a $39000 fifth wheel that used to be 69000 people still may.

Tom: Dress the market between new and used in different floor plans, we try to make sure that what we carry a new what we carry and use can give people options inside of each one of those price boxes, starting all the way from $89 a month going up to what could be $200 a month and as you look at it across the board.

Marcus Lemonis: And so part of the reason we're excited to continue to accelerate our used business is because the inventory that we have on the ground today becomes more valuable. Our ability to procure with our strong balance sheet and our processes becomes more valuable and our ability to execute and hit our goals and our guideposts become easier. We don't see any increase at this point in our business that we believe is going to create any friction that will create a demand issue. But we're also not naive to think that a consumer outside of our business, outside of like our own structure, may be affected.

Speaker Change: Need floor plan in size when people come to our company, we don't really sell them on anything other than what can you afford and who's traveling with your family how many people how many animals and we build that matrix to understand how to build the affordability and the right floor plan at the exact same time now there's people.

Tom: Most dealers tend to look at those boxes and they are able to fill it with whatever the OEM provider to that peer.

Tom: Period, because they don't have the balance sheet to buy us we actually have a three pronged approach to doing that whatever the manufacturer can fill on the grid.

Matt Wagner: On the stores, probably don't think about it that way, but when you look at what Matt has built from an inventory procurement and management system. It essentially fills that chart every single day and then the pricing algorithm ensures that we hit those marks.

Tom: Our contract manufacturing can do to fill in all of the gaps that we think the OEM left behind and then we use the rest to fill it with us whether it's $200000 diesel motor home that used to be 500000, or a $39000 fifth wheel that used to be 69000 people still may.

Marcus Lemonis: And so we're making sure that we're making all the SG&A moves and all the mixed shifts to new, to used, to look at different price points, to be able to address any resistance that the customer could potentially have from what tariffs could cost them in other parts of their life. I don't really think, Sean, that any of our thinking has changed. As we spoke about in our prepared remarks, I mean, we talked about being up mid-single digits, which I would just suggest that we're still largely, in terms of all the products that we source from the largest manufacturers, being Thor, Porsche, or Winnebago, they'll all be in that, like, three to five-ish percent range.

Matt Wagner: Perfect. That's incredibly helpful best of luck going forward.

Matt Wagner: Thank you.

Tom: Need floor plan in size when people come to our company, we don't really sell them on anything other than what can you afford and who's traveling with your family how many people how many animals and we build that matrix to understand how to build the affordability and the right floor plan at the exact same time now this piece.

Your next question comes from Michael Swartz from Twist Securities. Please go ahead.

Michael Swartz: Hey, everyone. Good morning.

Michael Swartz: Maybe maybe just to start on the some of the cost reduction actions you took I think I think.

Michael Swartz: You had mentioned it was about $35 million annualized could you just walk us through maybe how the cadence of that plays out as we as we think about the next 12 months then.

Tom: On the stores, probably don't think about it that way, but when you look at what Matt has built from an inventory procurement and management system is essentially fills that chart every single day and then the pricing algorithm ensures that we hit those marks.

Marcus Lemonis: There might be some fringe players that are pushing more to, like, seven, eight, nine percent, but I think across the board, we'd anticipate just some basic price increases here over the next month and a half, which to answer your question about the model year changeover, typically for most of these manufacturers, that'll be June 1st, in which case, we as a dealership body have sourced most of the products that we need to get through the selling season, and we feel like we're really advantageously positioned to take advantage of whatever demand exists there with these 25 that we've ramped up some of these purchases on the last couple of months.

Michael Swartz:

Michael Swartz: Is any of that going to be reinvested or should or should most if not all of that fall to the bottom line.

Michael Swartz: So it's important to note that when we started the year and provided the guideposts, we had anticipated reductions of about $22 million to $23 million already planned to execute at the top of the year and as we saw a little bit of softness in asps.

Speaker Change: Perfect. That's incredibly helpful best of luck going forward.

Tom: Thank you.

Michael Swartz: Your next question comes from Michael Swartz from <unk> Securities. Please go ahead.

Michael Swartz: We knew that the playbook was getting to the number that we committed to to ourselves and we knew that there were only certain levers that we can pull off and so we made an additional $12 million to $13 million of additional cuts by unfortunately, reducing head count eliminating initiatives and a lot of cases locking down travel.

Michael Swartz: Hey, everyone. Good morning.

Michael Swartz: Maybe maybe just to start on the some of the cost reduction actions you took I think I think.

Sean Wagner: Okay, that's great.

Marcus Lemonis: And if I just one quick follow up, I guess in the past, you've spoken about not liking where your leverage is and wanting to get that down by the end of the year. I guess, what else can you tell us about the durability of your balance sheet and cash flow if we see a meaningful protracted slowdown in the economy?

Michael Swartz: You had mentioned it was about $35 million annualized could you just walk us through maybe how the cadence of that plays out as we as we think about the next 12 months then.

Michael Swartz:

Michael Swartz: Is any of that going to be reinvested or should or should most if not all of that fall to the bottom line.

Michael Swartz: <unk> PE plants consolidating locations.

Marcus Lemonis: And given where the stock's trading, is there any assurance that you can give to investors to kind of calm fears around financial leverage and that associated risk? It's the same thing we've said from day one, we have a very healthy balance sheet as Tom evidenced between cash, used inventory that we own free and clear, parts that we own free and clear, real estate that we own free and clear, and available revolvers both on the floor plan and in other areas. We've actually paid down debt and we will continue to pay down debt through the balance of the year.

Michael Swartz: And eliminating certain things that we thought were nice to haves not have ads to be really candid. We went to our 2008 2009 playbook and that playbook has never ever collected any deaths, which is anytime we have any issues. What are the things that we do and what are the levers we can pull unfortunately, because when you look at our.

Michael Swartz: Business, it's driven by people and what are the challenges that we've had in the E. S. P. Dragged down is that it takes the same number of people.

Michael Swartz: To deliver 100 units that cost that retail for $35000 than it does for units at retail $42000. So we had a head count problem, because we don't want to impair the customer experience as evidenced by the increasing NPS scores that we have so we had to really start thinking about consolidation eliminate.

Marcus Lemonis: Any investor that's concerned about our leverage is lined up with us. We agree, which is why it was important for us to outkick our coverage in Q1 and continue to deliver on the results that we have told people we will deliver on for the simple fact that we want to generate cash and we want to de-lever as fast as we can. It is our goal to always be in the three and a half or below range. But frankly, I'd prefer to be at three. We understand just through math that we're not there today. So a combination of selling underutilized assets and freeing things up and improving our results are how we want to accelerate getting there.

Michael Swartz: Modifying pay plants consolidating locations.

Michael Swartz: And eliminating certain things that we thought were nice to haves not have to have to be really candid. We went to our 2008 2009 playbook and that playbook has never ever collected any deaths, which is anytime we have any issues. What are the things that we do and what are the levers we can pull unfortunately, because when you look at it.

Michael Swartz: A certain initiatives constraining.

Michael Swartz: Constraining certain ideas that we have and the $35 million quite frankly is almost fully done it's a little bit leaking into the beginning of April and we should see the benefits of that as we go through the balance of the year, but as Tom says every single day, the dashboard will tell us whether we need to make deeper cuts or not we.

Michael Swartz: Our business, it's driven by people and one of the challenges that we've had in the AFP dragged down is that it takes the same number of people.

Marcus Lemonis: Investors should feel very comfortable that we are laser focused on doing that because we understand that that's a risk and we want to eliminate that risk as fast as we can.

Michael Swartz: Nuclear options and we want everybody to hear very clearly that we're not tone deaf to any risk that a recession could be happening or something else could be happening or tariffs could be impacting things and so we have different levels of playbooks that go all the way to the nuclear option to ensure that we are able to hit the targets we have laid out.

Sean Wagner: That's great. Thanks a lot, guys.

Operator: Thank you.

Alex Perry: The next question comes from Alex Perry from Bank of America. Please go ahead.

Marcus Lemonis: Hi, thanks for taking my questions here and congrats on a strong quarter. I guess first, just a very high level question. What do you think is driving the strength in your business versus the softness and consumer confidence and more tepid outlook that we're starting to see show up in the broader sort of consumer discretionary landscape? Well, it's our belief that the softness that the industry may be experiencing and the softness that the general consumer may be indicating to us on other transactions isn't really evident in our business specifically, because we serve the installed base first.

Michael Swartz: <unk> a certain initiatives constraining.

Michael Swartz: Got you thank you for that market.

Then just in terms of I don't think I heard it but I think previously you would expected retail for the for the industry to be somewhere in the neighborhood of $3 50, I mean is that still the case or.

Michael Swartz: Maybe a little less now, but you're expecting to take more market share just how how do we think about that well I know, we're expecting to take more market share I'll start with that evidenced by the $14 two but not I would say that there is still a little bit of an unknown here, especially in Q4 of this year of what's going to transpire in terms of wholesale shipments and then the correlated retail sale, but I'd say, we're still in the ballpark.

Michael Swartz: As of retail activity in the industry of like 340 to $3 50, and I say that and so much like we've seen historically that theres very little deviation from like what's happening on a TTM basis, it's very rare to see more than like a 5% to 10% Max movement, one way or the other and then in terms of actual wholesale shipments I'd still say that.

Marcus Lemonis: And I think it's really important to understand that there are millions and millions of RVers who already love the lifestyle. And if you go back and you look at the history of the RV business, there has never been a year where the number of RVs in registration, in total circulation, in use, visiting campgrounds, visiting our stores, trading their units in, has ever gone backwards. And so that stable foundation and our active database of those consumers gives us a leg up on everybody. We also think that the fact that we really understand the affordability matrix around consumers and monthly payments gives us an advantage to show people that owning an RV at $289 a month, $299 a month, $149 a month in those price ranges, and being able to have time with their family and take vacations and do activities at that kind of value, is really what supersedes all the other things that are happening.

Michael Swartz: Got you thank you for that market.

Speaker Change: Then just in terms of I don't think I heard it but I think previously you would expected retail for the for the industry to be somewhere in the neighborhood of $3 50, I mean is that still the case or.

Michael Swartz: Our shipments should clear like $3 50 ish plus even when you think about the scarce supply of rvs that existed in the channel over the last couple of years. So I know that people are a bit stunned by the wholesale shipments number at least in terms of some of the feedback we've received in March I wasn't shocked at all largely because we know roughly we account for as a percent of total shipments.

Speaker Change: Maybe a little less now, but you are expecting to take more market share just how do we think about that well I know, we're expecting to take more market share I'll start with that evidenced by the $14 two but that I'd say that there is still a little bit of an unknown here, especially in Q4 of this year of what's going to transpire in terms of wholesale shipments and then the correlated retail sale, but I'd say, we're still in the ballpark.

Michael Swartz: And we knew that ultimately were trying to gear up to ensure that we have adequate supply to continue to pick up more and more market share heading into the selling season, where we were roughly about a quarter of all of those wholesale shipments and that March time period, and we knew exactly what we were trying to secure and why so now the question is what happens over the back half.

Speaker Change: End of retail activity in the industry of like 340 to $3 50, and I say that and so much like we've seen historically that theres very little like deviation from like what's happening on a TTM basis, it's very rare to see more than like a 5% to 10% Max movement, one way or the other and then in terms of national wholesale shipments I'd still say that wholesale.

Marcus Lemonis: And so when people pull back on major league sports or pull back on going to theme parks or taking European vacations, they don't pull back on taking a monthly expense of $289 to take multiple vacations with their family. We saw it in 08 and 09. We saw it in 2018.

Michael Swartz: For the year in terms of wholesale retail and I mean this is all of his finger in the air, but we feel pretty confident and just the consumer being able to continue to participate in this lifestyle.

Speaker Change: Shipments should clear like $3 50 ish plus even when you think about the scarce supply of rvs that existed in the channel over the last couple of years. So I know that people are a bit stunned by the wholesale shipments number at least in terms of some of the feedback we've received in March I wasn't shocked at all largely because we know roughly what we account for as a percent of total shipments.

Michael Swartz: Okay.

Speaker Change: [noise] Michael's answer your questions, Yes that was great. Thank you guys.

Marcus Lemonis: We saw it, especially during the beginning of COVID, before people couldn't do things, that this business, if it's focused on the installed base through GoodSAM, through use, through service, will do very well in an environment like this because it's a really, really affordable alternative.

Speaker Change: And we knew that ultimately were trying to gear up to ensure that we have adequate supply to continue to pick up more and more market share heading into the selling season, where we were roughly about a quarter of all of those wholesale shipments and that March time period, and we knew exactly what we were trying to secure and why so now the question is what happens over the back half.

Michael Swartz: Thank you.

Scott December: The next question comes from Scott December from Rotterdam, Kim. Please go ahead.

Matt Wagner: That's incredibly helpful. And then my follow up was, I just wanted to ask what is driving the use of performance that we've seen so far in 1Q in April to date? How do you, you know, expect to keep driving that as we move forward here? Thanks.

Scott December: Good morning, and thanks for taking my questions.

Michael Swartz: Yup.

Michael Swartz: Markets.

Speaker Change: You noted that I guess since early April you have not seen a.

Speaker Change: The year in terms of wholesale retail and I mean this is all of his finger in the air, but we feel pretty confident and just the consumer being able to continue to participate in this lifestyle.

Speaker Change: Discernible impact just from all this tariff talk on retail demand could you talk about what youre seeing on the rate environment and also.

Matt Wagner: It's all Matt Wagner, to be honest. Team effort. Ultimately, Alex, we've done a very good job as a team understanding exactly where we need to source products from and creating enough different mechanisms by which we could attract different consumers or solicit them to sell their assets to us.

Speaker Change: Yeah.

Speaker Change: From a to B.

Speaker Change: [noise] Michael does that answer your questions, Yes that was great. Thank you guys.

Speaker Change: The lending environment as far as tightening or consumer credit.

Scott December: You know Scott we have not seen any.

Scott December: Any modification of behavior from any of our retail lenders and one of the things that I think makes us uniquely positioned to.

Matt Wagner: We've tried to refine this as best we could over the last year and a half when, for those that have been in the industry can recall for a little while, that we experienced deflation in our new invoice pricing last year, in which case the used marketplace became somewhat untenable for us. As such, the comps that we're heading into this year are a little bit more manageable and furthermore, we've been a lot more creative in terms of sourcing products and understanding what the arbitrage is that exists between new versus used. Really, the only limiting factor heading into this year with our used business was going to be our ability to secure and procure assets and in large part, that was going to be a of our human capital's capability to actually continue to secure enough assets to continue these growths.

Speaker Change: Thank you.

Scott December: Probably avoid some of that is we have consolidated our retail lenders over the years.

Scott December: The next question comes from Scott December from Ross M. Cam. Please go ahead.

Scott December: And when we look at it and we probably have six to seven really big ones that make up the bulk of our business other than cash and credit Union.

Good morning, and thanks for taking my questions.

Scott December: Yep.

Scott December: Markets.

Speaker Change: You noted that I guess since early April you have not seen a.

Scott December: The interest rates have actually been moving around from a 10 year Treasury standpoint, but we've seen some stabilization from the retail lenders are probably enjoying a little bit of a expanded margin today, we're down on a year over year basis in the I only have to lower this number because time pass but were still down as much as 75 basis point.

Speaker Change: Discernible impact just from all this tariff talk on retail demand could you talk about what youre seeing on the rate environment and also.

Speaker Change: From a.

Speaker Change: The lending environment as far as tightening or consumer credit.

Scott December: You know Scott we have not seen any.

For the retail consumer when we started in the first quarter. It was down 100 to 100 and 125 and over time, obviously, that's going to mitigate itself because we started to see rate cuts, but no change in.

Scott December: Any modification of behavior from any of our retail lenders and one of the things that I think makes us uniquely positioned to probably avoid some of that is we have consolidated our retail lenders over the years.

Matt Wagner: We feel really good with how much we've been able to procure in the first four months of this year. In fact, setting records in each of the respective months for the amount of used units purchased in each of those respective months historically. So now the question is, how much more can we push this and how much more creative can we get in terms of sourcing?

Speaker Change: And when we look at it and we probably have six to seven really big ones that make up the bulk of our business other than cash and credit Union.

Scott December: In any action and in fact, some lenders have gotten a little more aggressive the reason they've got more aggressive RV paper performs average credit score of over 700 average household income over 100000, and I think that it ends up being a flight to RV paper and a lot of cases when people are looking to put assets that have historically performed.

Speaker Change: The interest rates have actually been moving around from a 10 year Treasury standpoint, but we've seen some stabilization from the retail lenders are probably enjoying a little bit of a expanded margin today, we're down on a year over year basis in the I only have to lower this number because time past, but were still down as much as 75 basis points for the <unk>.

Matt Wagner: I want to give you a visual that I think may help you and other folks understand how we think about selling RVs to consumers in general. And if you could visualize what a periodic table looks like and the matrix that's on the wall. We look at every single payment, monthly payment, that could fill every single one of those things. And as we look at trying to address the market between new and used and different floor plans, we try to make sure that what we carry in new and what we carry in used can give people options inside of each one of those price boxes.

Scott December: For all periods on their balance sheet.

Speaker Change: Got it and if we were to look at on the parts and service side a lot of numbers I know that.

Speaker Change: Tail consumer when we started in the first quarter. It was down a 100 to 100 and 125 and over time, obviously, that's going to mitigate itself because we started to see rate cuts, but no change in.

The.

Scott December: Discontinuation of the furniture business.

Scott December: The number is down year over year book, what are you seeing on the customer pay side.

Scott December: So on the used reconditioning shot.

Speaker Change: In any action and in fact, some lenders have gotten a little more aggressive the reason they've got more aggressive RV paper performs average credit score of over 700 average household income over 100000, and I think that it ends up being a flight to RV paper and a lot of cases when people are looking to put assets that have historically performed.

Scott December: Just give us an idea of how the core business is doing.

Matt Wagner: Starting all the way from $89 a month going up to what could be $1,200 a month. And as you look at it across the board, most dealers tend to look at those boxes and they're able to fill it with whatever the OEM provides. period, because they don't have the balance sheet to buy used.

Scott December: The total internal business is just around 60%, which is pretty normal for us maybe it's up one or two points. The customers are really starting to show up a little.

Scott December: Lot more than we had expected in April and what that tells US as people are getting out in using their units when we talk to our good Sam team. They talk about campground bookings and reservations in campgrounds looking more full for the spring and summer I think we could expect to see some nice increase in some of those things, particularly with.

Speaker Change: For all periods on their balance sheet.

Matt Wagner: We actually have a three-pronged approach to doing that. Whatever the manufacturer can fill on the grid, whatever our contract manufacturing can do to fill in all of the gaps that we think the OEM left behind, and then we use the rest to fill it with used, whether it's a $200,000 diesel motorhome that used to be $500,000 or a $39,000 fifth wheel that used to be $69,000, people still may need floor plan and size. When people come to our company, we don't really sell them on anything other than what can you afford and who's traveling with your family, how many people, how many animals, and we build that matrix to understand how to build affordability and the right floor plan at the exact same time.

Speaker Change: Got it and if we were to look at on the parts and service side a lot of numbers.

Speaker Change: The discontinuation.

Speaker Change: It just continuation of the furniture business.

Scott December: Customers at least domestically not wanting to travel internationally, particularly among.

Speaker Change: The numbers down year over year, but what are you seeing on the customer pay side also on the used reconditioning shot.

Scott December: In light of some of the tariff talk I don't know how many people are going to be going over seas with increased costs in some of the friction that's out there.

Speaker Change: Just give us an idea of how the core business is doing.

Speaker Change: The total internal businesses, just around 60%, which is pretty normal for us maybe it's off one or two points. The customers are really starting to show up.

Scott December: Yeah.

Scott December: Got it that's all it happened now thank you.

Scott December: Yeah.

Scott December: Thank you.

Speaker Change: A lot more than we had expected in April and what that tells us that people are getting out in using their units when we talk to our good Sam team. They talk about campground bookings and reservations in campgrounds looking more full for the spring and summer I think we could expect to see some nice increase in some of those things, particularly.

Speaker Change: The next question comes from Noah <unk> from Keybanc capital markets. Please go ahead.

Noah: Alright, thanks for taking my questions.

Noah: I guess first in terms of the market consolidations, just just wondering if those are kind of accretive to the bottom line.

Matt Wagner: Now, there's people in the stores probably don't think about it that way, but when you look at what Matt has built from an inventory procurement and management system, it essentially fills that chart every single day, and then the pricing algorithm ensures that we hit those.

Noah: And then Relatedly, just how youre thinking about M&A this year. Thanks.

Speaker Change: Kelly with customers at least domestically not wanting to travel internationally, particularly among.

Noah: Yeah. Thanks, Thanks for the question.

Speaker Change: In light of some of the tariff talk I don't know how many people are going to be going over seas with increased costs in some of the friction that's out there.

Alex Perry: Perfect. That's incredibly helpful.

Noah: The way we're thinking about it is we're looking at those locations that you know if some of these are smaller locations where.

Alex Perry: Best of luck going forward.

Michael Swartz: Thank you. Your next question comes from Michael Swartz from Truist Securities. Please go ahead.

Speaker Change: Got it that's all happened now thank you.

Noah: We've been monitoring them for some time and we got through March and we just took a hard look at this list and said you know what it's time to make a move in its locations, where we feel that we can consolidate the brands and try to maintain a lot of that gross profit that we generate in those locations. While also pulling down the overall cost structure.

Speaker Change: Yes.

Speaker Change: Thank you.

Michael Swartz: Hey, everyone, good morning. Maybe maybe just to start on the some of the cost reduction actions you took. I think I think you had you had mentioned it was about thirty five million annualized. Could you just walk us through maybe how the the cadence of that plays out as we as we think about the next twelve months and then? Is any of that going to be reinvested, or should most, if not all, of that fall to the bottom line? So it's important to note that when we started the year and provided the guideposts, we had anticipated reductions of about 22 to $23 million already planned to execute at the top of the year.

Speaker Change: Your next question comes from Noah <unk> from Keybanc capital markets. Please go ahead.

Noah: Hi, Thanks for taking my questions.

Speaker Change: I guess first in terms of the market consolidations just just wondering.

Noah: And those markets. So the way we're looking at it it is accretive to the bottom line and traveling the country and meeting with a lot of our investors. They are looking for an increase in sales per rooftop back to some of our peak levels and sales per rooftop increases usually means EBITDA margin increases because you're eliminating fixed costs and your.

Noah: Those are kind of accretive to the bottom line.

Noah: Then relatedly, just how youre thinking about M&A this year. Thanks.

Noah: Yeah. Thanks, Thanks for the question.

Noah: The way we're thinking about it is we're looking at those locations that you know if some of these are smaller locations where.

Noah: Getting more juice out of what you have we are dead set on driving that number back in Mato correct me, but I think.

Noah: We've been monitoring them for some time and we got through March and we just took a hard look at this list and said you know what it's time to make a move and at locations, where we feel that we can consolidate the brands and trying to maintain a lot of that gross profit that we generated in those locations. While also slowing down the overall cost structure.

Tom Kirn: And as we saw a little bit of softness in ASP, we knew that the playbook was getting to the number that we committed to ourselves. And we knew that there were only certain levers that we can pull on. And so we made an additional 12 to $13 million of additional cuts by unfortunately reducing headcount, eliminating initiatives in a lot of cases, locking down travel, modifying pay plans, consolidating locations, and eliminating certain things that we thought were nice to have, not have to have. To be really candid, we went to our 2008, 2009 playbook. And that playbook has never ever collected any dust, which is anytime we have any issues, what are the things that we do and what are the levers we can pull?

Noah: Our average during good times it was about 77 per rooftop.

Noah: Little high that was maybe like yes, but right around there per month per rooftop, yes, and I know that we were down in the sixth season. So we're trying to just close that gap as fast as we can what we're finding when that happens is that because our game from a marketing standpoint, so digitally driven that a really good store that was doing well in that market, we'll just pick up the.

Noah: And those markets. So the way we're looking at it it is accretive to the bottom line and traveling the country and meeting with a lot of our investors are looking for an increase in sales per rooftop back to some of our peak levels and sales per rooftop increases usually means EBITDA margin increases because youre, eliminating fixed costs and <unk>.

Noah: Mentally elites pick up the incremental foot traffic and they were better at executing and converting and so in some cases oddly enough. We're actually seeing an increase in sales in the market because we have the 18 sort of dominating that market dominating those leads as it relates to M&A, we're always looking at different opportunities we want to be opportunistic.

We're getting more juice out of what you have we are dead set on driving that number back end Matto correct me, but I think.

Noah: Our average during good times was about 77 per rooftop.

Marcus Lemonis: Unfortunately, because when you look at our business, it's driven by people. And one of the challenges that we've had in the ASP drag down is that it takes the same number of people. to deliver 100 units that retail for $35,000 than it does for units that retail $42,000. So we had a headcount problem because we don't want to impair the customer experience evidenced by the increasing NPS scores that we have. So we had to really start thinking about consolidation, elimination of certain initiatives, constraining certain ideas that we have. And the $35 million, quite frankly, is almost fully done.

Noah: We also want to build cash and Delever our business at the same time, we have one transaction that we're looking at that we potentially would close in the back half of the year and Theres a lot of people that we get inbounds from all the time, we are a business. It makes acquisitions opportunistically and that should never be lost on people. When you look at our historical margins.

Noah: Little high that was maybe like yes, but right around there per month per rooftop, yes, and I know that we were down in the sixties and so we're trying to just close that gap as fast as we can what we're finding when that happens is that the because our game from a marketing standpoint, so digitally driven that a really good store that was doing well in that market, we'll just pick up the.

Noah: In terms of multiples and you look at our historical returns we need to get our returns on acquisitions back up closer to the 19% 20% range, we need some of the ones that we've made to season as you heard Matt earlier mentioned that the lazy days locations cumulatively were positive in March that's a huge departure from our business.

Noah: Rental elites pick up the incremental foot traffic and they were better at executing and converting and so in some cases oddly enough. We're actually seeing an increase in sales in the market because we have the 18 sort of dominating that market dominating those leads as it relates to M&A, we're always looking at different opportunities, we want to be opportunity.

Marcus Lemonis: It's a little bit leaking into beginning of April. And we should see the benefits of that as we go through the balance of the year. But as Tom says, every single day, the dashboard will tell us whether we need to make deeper cuts or not. We have nuclear options. And we want everybody to hear very clearly that we're not tone deaf to any risk that a recession could be happening or something else could be happening or tariffs could be impacting things. And so we have different levels of playbooks that go all the way to the nuclear option to ensure that we are able to hit the targets that we have laid out.

Noah: Net loss almost $10 million in those locations in the previous 12 months, we have some of our own wood to chop before we go chop some other trees down.

Noah: We also want to build cash and de lever our business at the same time, we have one transaction that we're looking at that we potentially would close in the back half of the year and Theres a lot of people that we get inbounds from all the time, we are a business. It makes acquisitions opportunistically and that should never be lost on people. When you look at our historical margins.

Speaker Change: Very helpful. Maybe one more.

Speaker Change: <unk> touched on this a bit but maybe to put a finer point on it.

Speaker Change: Same store units up three I think you said in March and obviously high single digits to date in April what's what's your sense of the level of outperformance versus rest of industry.

Matt Wagner: In terms of multiples and you look at our historical returns we need to get our returns on acquisitions back up closer to the 19% 20% range, we need some of the ones that we've made to season as you heard Matt earlier mentioned that the lazy days locations cumulatively were positive in March that's a huge departure from our business.

Michael Swartz: Thank you for that Marcus. And then just in terms of, I don't think I heard it, but I think previously you had expected retail for the industry to be somewhere in the neighborhood of $350,000. I mean, is that still the case? Maybe a little less now, but you're expecting to take more market share. Just how, how do we think about that? Well, I know we're expecting to take more market share.

Speaker Change: If that does kind of represent outperformance. Thanks.

Speaker Change: I mean based upon most recently reported stat surveys, which was through February we picked up a little bit of market share. It was just like super modest so in and of itself, especially compared to last year, but when we look at the combined market share growth of new and used I mean, that's where you saw like meteoric pick ups, where we went from a one 2%.

Matt Wagner: That lost almost $10 million in those locations in the previous 12 months, we have some of our own wood to chop before we go chop some other trees down.

Tom Kirn: I'll start with that evidenced by the 14.2, but Matt. I'd say that there's still a little bit of an unknown here, especially in Q4 of this year of what should transpire in terms of wholesale shipments and then the correlating retail sales, but I think we're still in the ballpark in terms of retail activity in the industry of like 340 to 350, and I say that in so much as like, we've seen historically that there's very little like deviation from like what's happening on a TPM basis. It's very rare to see more than like a 5% to 10% max movement one way or the other.

Speaker Change: Very helpful. Maybe one more you've kind of touched on this a bit but maybe to put a finer point on it.

Speaker Change: The 14% through February.

Speaker Change: If we had a suspect that same like trend probably persisting throughout like March April based upon just our rough checks. So I wouldn't anticipate that on the news that we're picking up a massive market share gains, but rather rather relatively moderate.

Speaker Change: Yeah, it's relatively moderate but it stacked on multi year growth and I think thats the difference and so when we hear about some of our competitors being up six when theyre coming off of being down 20, it's like Oh cares, we're trying to be up on top of being up last year and growing our used business at the exact same time I think the 14 that we.

Speaker Change: If that does kind of represent outperformance. Thanks.

Tom Kirn: And then in terms of actual wholesale shipments, I'd still say that wholesale shipments should clear like 350 ish plus, even when you think about the scarce supply of RVs that existed in the channel over the last couple of years. So I know that people were a bit stunned by that wholesale shipments number, at least in terms of some of the feedback loop I received in March, I wasn't shocked at all, largely because we know roughly what we account for as a percent of total shipments. And we knew that ultimately we were trying to gear up to ensure that we had adequate supplies to continue to pick up more and more market share heading into the selling season, where we were roughly, I mean, about a quarter of all those wholesale shipments in that March time period.

Speaker Change: Thrown around through February is not a number that we really believe is R. 2025 number. Our goal was always 12, we'll be pleased to exceed 12, but we want to set expectations that 12 is still a significant increase in total volume for the year as we work through the back half.

Speaker Change: The 14% through February so.

Speaker Change: We had a suspect that theme like trend probably persisting throughout like March April based upon just our rough checks. So I wouldn't anticipate that on the news that we're picking up a massive market share gains, but rather rather relatively moderate.

Speaker Change: Thank you.

Speaker Change: Yeah, its relatively moderate but it's stacked on multi year growth and I think thats the difference and so when we hear about some of our competitors being up six when theyre coming off of being down 20, it's like Oh cares, we're trying to be up on top of being up last year and growing our used business at the exact same time I think the 14 that we.

Speaker Change: The next question comes from Christian Thomas Martin from BMO Capital markets. Please go ahead.

Tom Kirn: And we knew exactly what we were trying to secure and why.

Michael Swartz: So now the question is what happened over the back half of the year in terms of wholesale retail? And I mean, this is all just finger in the air, but we feel pretty confident in just the consumer being able to continue to participate in this lifestyle. Michael, does that answer your questions? Yeah, that was great. Thank you, guys.

Speaker Change: Hi, good morning, I could talk to him.

Speaker Change: Good morning.

Speaker Change: Just the the mid single digits, while they're 26 price increase is that just <unk> or was that total the Motorola.

Speaker Change: That was all of it combined so I mean, we look at our whole basket of goods of all motorized totals combined so you will have certain motorized sub segments, where like Mercedes sprinter chassis is going to be a much more material price increase year over year. However, we don't necessarily feel the entire effects of that because of.

Operator: Thank you.

Scott Stember: The next question comes from Scott Stember from Roth MKM. Please go ahead. Good morning, and thanks for taking my questions. Marcus, you noted that, I guess, since early April, you have not seen a discernible impact, just from all this tariff talk on retail demand. Can you talk about what you're seeing on the rate environment and also from the lending environment as far as tightening or consumer credit? You know, Scott, we have not seen any, any modification of behavior from any of our retail lenders. And one of the things that I think makes us uniquely positioned to probably avoid some of that is we have consolidated our retail lenders over the years.

Speaker Change: Thank you.

Speaker Change: Okay.

Speaker Change: Our ability to just negotiate pricing period.

Speaker Change: Thank you.

Speaker Change: The next question comes from Christian Thomas Martin from BMO Capital markets. Please go ahead.

Speaker Change: When you look holistically.

Speaker Change: Sure so theres going to be a mixed bag of results across every segment I mean in some categories. There is going to be no price increase with certain brands manufacturers, whereas others, it could be upwards of like 11%, 12%, but holistically.

Speaker Change: Hey, good morning, Mike could talk again.

Speaker Change: Good morning.

Speaker Change: Just oh, the the mid single digits, while Youre 26 price increase is that just <unk> or was that total the Motorola.

Speaker Change: We suggest that it's probably going to land somewhere in that like 5% to 6% range that we had again some lower some higher we won't know for a fact, though for another month or so and Thats one model year 2026 pricing actually it's more rapidly in every category across the country.

Speaker Change: That was all of it combined so I mean, we look at our whole basket of goods of all motorized total combined so you will have certain motorized sub segments, where like Mercedes sprinter chassis is going to be a much more material price increase year over year. However, we don't necessarily feel the entire effects of that because of.

Speaker Change: Okay, and then could we do get that 5% to 6% increase from all of your 26, how should we think about the mix dynamic not so much the selling season, but kind of in the 25 and into 'twenty six.

Speaker Change: Our ability to just negotiate pricing period.

Marcus Lemonis: And when we look at them, we probably have six to seven really big ones that make up the bulk of our business other than cash and credit union. The interest rates have actually, you know, been moving around from a 10-year treasury standpoint, but we've seen some stabilization from the retail lenders. They're probably enjoying a little bit of a expanded margin today. We're down on a year-over-year basis, and I only have to lower this number because time passed, but we're still down as much as 75 basis points for the retail consumer. When we started in the first quarter, it was down 100 to 125.

Speaker Change: When you look holistically.

Speaker Change: So theres going to be a mixed bag of results across every segment I mean in some categories. There is going to be no price increase with certain branded manufacturers, whereas others. It could be upwards of like 11%, 12%, but holistically.

Speaker Change: Well I think as always there'll be certain categories price points will be able to take advantage and that's been evidenced by the entire exclusive brand lineup that we've been very effective at contract manufacturing, where if you look through every single one of our segments class a gas deal.

Speaker Change: We suggest that it's probably going to land somewhere in that like five 6% range that we had again some lower some higher we won't know for a fact, though for another month or so and Thats one model year 2026 pricing actually it's more rapidly in every category across the country.

Speaker Change: <unk> fifth wheel travel trailers, the best selling floorplan within each of those respective segments as a contract manufactured units and as you heard Mark has mentioned earlier in this call. We believe that we'll be able to continue to bend that curve of affordability to ensure that we're able to take advantage of the opportunity no matter, what though the asp's will have to.

Marcus Lemonis: And over time, obviously, that's going to mitigate itself because we started to see rate cuts, but no change in any action. And in fact, some lenders have gotten a little more aggressive. The reason they've gotten more aggressive, RV paper performs. Average credit score over 700, average household income over 100,000. And I think that it ends up being a flight to RV paper in a lot of cases, when people are looking to put assets that have historically performed through all periods on their balance. Got it.

Speaker Change: Okay, and then if we do get that 5% to 6% increase from all of your 26, how should we think about the mix dynamic not so much the selling season, but kind of in the 25 and into 'twenty six.

Speaker Change: We go up from here, we cannot continue to maintain these AFP levels to the same extent and we believe that there are still some targeted segments. In spite of any sort of price increases where we'll be able to undercut the rest of the marketplace to ensure that we continue to stack on these moderate market share gains I think it's also important to note that when we talk about asp's going up four five.

Speaker Change: Well I think as always there'll be certain categories price points, where we'll be able to take advantage and that's been evidenced by the entire exclusive brand lineup that we've been very effective at contract manufacturing, where if you look through every single one of our segments class a gas deal.

Speaker Change: Percent for those that arent aware rovs are financed anywhere from 180 to 240 months and so when you talk about spreading that out over a long period of time that matters, particularly when you have rates coming down at the same time, so rate mitigation, usually offset price increases what we had in the years past.

Speaker Change: These fifth wheel travel trailers, the best selling floorplan within each of those respective segments as a contract manufactured units and as you heard Mark has mentioned earlier in this call. We believe it will be able to continue to bend that curve of affordability to ensure that we're able to take advantage of the opportunity no matter, what though the asp's will have to.

Tom Kirn: And if we were to look at on the parts and service side, a lot of numbers, I know that the discontinuation of the furniture business, you know, brought the numbers down year over year. But what are you seeing on the customer pay side? Also on the used reconditioning side? It may just give us an idea of how the core business is The total internal business is just around 60%, which is pretty normal for us. Maybe it's off one or two points. The customers have really started to show up a lot more than we had expected in April.

Speaker Change: As we had price increases and rate increases at the same time really making the addressable market shrink pretty rapidly we have the opposite of that happening now.

Speaker Change: Go up from here, we cannot continue to maintain these AFG level to the same extent and we believe that there is still some targeted segments. In spite of any sort of price increases where we'll be able to undercut the rest of the marketplace to ensure that we continue to stack on these moderate market share gains I think it's also important to note that when we talk about asp's going up four five.

Speaker Change: Okay. So if I can sneak one more in there could you maybe just remind everybody vehicle gross margins what are the historical ranges or what would you consider historical.

Tom Kirn: And what that tells us is people are getting out and using their units. When we talk to our Good Sam team, they talk about campground bookings and reservations and campgrounds looking more full for the spring and summer. I think we could expect to see some nice increase in some of those things, particularly with customers, at least domestically, not wanting to travel internationally, particularly in light of some of the tariff talks. I don't know how many people are going to be going overseas with increased costs and some of the friction that's going on. Got it. That's all I have for now.

Speaker Change: Yeah.

Speaker Change: For those that arent aware rvs are financed anywhere from 180 to 240 months and so when you talk about spreading that out over a long period of time that matters, particularly when you have rates coming down at the same time, so rate mitigation, usually offset price increases what we had in the years past.

Speaker Change: I mean, Tristan from my perspective, if you look back at that 2016 through 2018 timeframe, you've got new sitting in anywhere from like 13% to about 14% and used historically its about 20 plus percent.

Speaker Change: But within the youth segment Theres going to be a whole host of different factors that you have to take into consideration, especially in the short term, where we ramped up our procurement efforts, we've ramped up our consignment efforts pretty extensively and as I think there was some comments that I read through last evening about our used inventory balances not necessarily being up materially from quarter to quarter.

Speaker Change: As we had price increases and rate increases at the same time really making the addressable market shrink pretty rapidly we have the opposite of that happening now.

Speaker Change: Okay. So if I can.

Tom Kirn: Thank you.

Speaker Change: And one more in there can you maybe just remind everybody vehicle gross margins what are the historical records or what would you consider historical.

Speaker Change: <unk> when people are oftentimes failing to recognize the amount of consignment that we picked up and invested in which isn't going to show up on our balance sheet of course, whereas if we look through our consignments were up to about 2600 consignments, whereas historically that number typically system like that six 700 range I think what you're really referring to is when people scrape our data and try to extrapolate.

Noah Zatzkin: The next question comes from Noah Zatzkin from KeyBank Capital Markets. Please go ahead. Hi, thanks for taking my questions.

Speaker Change: Yeah.

Speaker Change: I mean first and from my perspective, if you look back at that 2016 through 2018 timeframe, you've got new sitting in anywhere from like 13% to about 14% and used historically its about 20 plus percent.

Noah Zatzkin: I guess first, in terms of the market consolidations, just just wondering if those are kind of accretive to the bottom line, and then relatedly, just how you're thinking about M&A this year. Thanks. Yeah, thanks. Thanks for the question. The way we're thinking about it is we're looking at those locations that, you know, some of these are smaller locations where we've been monitoring them for some time. And we got through March, and we just took a hard look at this list and said, you know what, it's time to make a move. And it's locations where we feel that we can consolidate the brands and try to maintain a lot of that gross profit that we generate in those locations, while also slimming down the overall cost structure in those markets.

Speaker Change: Laid out what they think our inventory is they need to take into account that a big chunk of that is inventory that we sell on our loss that we do not all correct.

Speaker Change: And oftentimes that consignment asset is going to yield a lower gross margin, but we're okay with that because when we think about that return on capital I mean ultimately this is an asset that we don't own and we're able to still enjoy the benefits of selling this process are selling this asset and yielding that jokingly. The consignments turned 365 times because you buy it.

Speaker Change: <unk> when people are oftentimes failing to recognize the amount of consignments that we picked up and invested in which isn't going to show up in our balance sheet of course, where if we look through our consignments were up to about 2600 consignments, whereas historically that number typically assistant like that six 700 range I think what you're really referring to is when people scrape our data and try to extrapolate.

Speaker Change: The same data that you sell it that's right.

Speaker Change: Got it thank you.

Speaker Change: Thank you.

Marcus Lemonis: So the way we're looking at it, it is accretive to the bottom line. And traveling the country and meeting with a lot of our investors, they're looking for an increase in sales per rooftop, back to some of our peak levels. And sales per rooftop increases usually means EBITDA margin increases, because you're eliminating fixed costs, and you're getting more juice out of what you have. We are dead set on driving that number back. And Matt will correct me, but I think, you know, our average during good times was about 77 per rooftop. little high. That was maybe like, yeah, but right around there per month per rooftop.

Speaker Change: The next question comes from John Healy from Northcoast Research. Please go ahead.

Speaker Change: Laid out what they think our inventory is they need to take into account that a big chunk of that is inventory that we sell on our loss that we do not all correct.

John Healy: Thanks for taking my question guys.

John Healy: Just one question for me when you looked at kind of the model that you've laid out there over the last couple of years I think it was two years ago, you guys talked about 325 stores or so.

Speaker Change: And oftentimes that consignment asset is going to yield a lower gross margin, but we're okay with that because when we think about that return on capital I mean ultimately this is an asset that we don't own and we're able to still enjoy the benefits of selling this process are selling this asset and yielding that problem jokingly. The consignments turned 365 times because you buy it.

Speaker Change: That's a good target for you guys because when I hear your comments are much more thoughtful now on.

John Healy: Store count and revenue per store cost.

John Healy: So my question is 325, the right number is still that you're aiming for or is it lower and the stores are bigger and more productive and as a result, you can still get to those share gains goals and just love to get your thoughts on that and maybe the long term profit potential.

Speaker Change: The same day that you're selling that's right.

Marcus Lemonis: Yes. And I know that we were down in the 60s. And so we're trying to just close that gap as fast as we can. What we're finding when that happens is that because our game from a marketing standpoint is so digitally driven, that a really good store that was doing well in that market will just pick up the incremental e-leads, pick up the incremental foot traffic, and they were better at executing and converting. And so in some cases, oddly enough, we're actually seeing an increase in sales in the market. because we have the 18 sort of dominating that market, dominating those leads.

Speaker Change: Got it thank you.

Speaker Change: Thank you.

Operator: The next question comes from John Healy from Northcoast Research. Please go ahead.

Speaker Change: Thanks for taking my question guys.

John Healy: That store count level.

John Healy: Yes, so to driving profitability is absolutely the top thing on our list and getting back to the type of EBITDA margins that we enjoyed previously is right. There at the top of the list and how we get there is going to be something that will evolve over time.

Speaker Change: Just one question for me when you looked at kind of the model that you've laid out there over the last couple of years I think it was.

Speaker Change: Two years ago, you guys talked about 325 stores or so.

Speaker Change: That's still a good target for you guys because when I hear your comments are much more thoughtful now on.

Marcus Lemonis: As it relates to M&A, we're always looking at different opportunities. We want to be opportunistic. We also want to build cash and de-lever our business at the same time.

John Healy: We still know that we need to grow our footprint and we still see white space across the country and we still see opportunity to enter markets that we're not in today and we still see opportunity to pick up brands, where we think there's market share growth opportunity today, and we still see opportunity to increase our service bays and our opportunity.

Speaker Change: Store count and revenue per store cost.

Speaker Change: So my question is 325, the right number is still that you're aiming for or is it lower and the stores are bigger and more productive and as a result, you can still get to those share gains goals and.

Marcus Lemonis: We have one transaction that we're looking at that we potentially would close at the back half of the year. And there's a lot of people that we get inbounds from all the time. We are a business that makes acquisitions opportunistically, and that should never be lost on people.

Speaker Change: So love to get your thoughts on that and maybe the long term profit potential.

John Healy: So the idea of us ever anybody ever thinking that we we are not a growth company would be a terrible terrible misnomer, how do we grow it needs to be more qualitative and well, whether we're going to get to 320 or 312, we know that we need to grow the size of our business to get to $10 billion to $11 billion in.

Marcus Lemonis: When you look at our historical margins in terms of multiples and you look at our historical returns, we need to get our returns on acquisitions back up closer to the 19-20% range. We need some of the ones that we've made to season. As you heard Matt earlier mention that the Lazy Days locations cumulatively were positive in March. That's a huge departure from a business that lost almost $10 million in those locations in the previous 12 months.

Speaker Change: That store count level.

Speaker Change: Yes, so to driving profitability is absolutely the top thing on our list and getting back to the type of EBITDA margins that we enjoyed previously is right. There at the top of the list and how we get there is going to be something that will evolve over time we.

John Healy: Top line, we want to do that as smartly as we can we want to have margins in process and EBITDA returns be what they should be and so whether again, whether its $3 20 or not we are a growth company in over 20 years. We built this business by tacking on locations by finding markets by acquiring new brands by adding new service space.

Speaker Change: We still know that we need to grow our footprint and we still see white space across the country and we still see opportunity to enter markets that we're not in today and we still see opportunity to pick up brands, where we think there's market share growth opportunity today, and we still see opportunity to increase our service bays and our opportunity.

Marcus Lemonis: We have some of our own wood to chop before we go chop some other trees. Very helpful. Maybe one more. You kind of touched on this a bit, but maybe to put a finer point on it, the same store units up three, I think you said in March, and obviously high single digits to date in April. What's your sense of the level of outperformance versus rest of industry, if that does kind of represent outperformance? Thanks. I mean, based upon most recently reported stat surveys, which was through February, we picked up a little bit of market share, it was just like super modest, though, in and of itself, especially compared to last year.

John Healy: That is never going to change. We also are conscious of the environment that we're in and we also understand our necessity to delever our balance sheet. So building cash and growing earnings at an accelerated rate is priority number one that doesn't mean that we're not going to be opportunistic we've already acquired and picked up.

Speaker Change: So the idea of us ever anybody ever thinking that we we are not a growth company would be a terrible terrible misnomer, how do we grow it needs to be more qualitative and well, whether we're going to get to 320 or 312, we know that we need to grow the size of our business to get to $10 billion to $11 billion in.

Speaker Change: I think 10 stores this year.

Speaker Change: Top line, we want to do that as smartly as we can we want to have margins in process and EBITDA returns be what they should be and so whether again, whether its $3 20 or not we are a growth company in over 20 years. We built this business by tacking on locations by finding markets by acquiring new brands by adding new service space.

Speaker Change: We think that they were a better trade for some of the other ones that we consolidated so like any football team. There's 53 players we're going to look to upgrade that talent and upgrade the performance every single day on our path to north of 300.

Marcus Lemonis: But when we look at the combined market share growth of new and used, I mean, that's where you saw just like meteoric pickups, where we went from what was 11.2% to 14% through February. So we had to suspect that same like trend probably persisting throughout like March, April based upon just our rough check. So I wouldn't anticipate that on the news that we're picking up massive market share gains, but rather, rather relatively moderate. Yeah, it's relatively moderate, but it's stacked on multi year growth. And I think that's the difference. And so when we hear about some of our competitors being up six, when they're coming off of being down 20, it's like, oh, who cares?

Speaker Change: Yeah.

Speaker Change: Okay.

Speaker Change: Great. Thank you guys.

Speaker Change: It is never going to change. We also are conscious of the environment that we're in and we also understand our necessity to delever our balance sheet. So building cash and growing earnings at an accelerated rate is priority number one that doesn't mean that we're not going to be opportunistic we've already acquired and picked up.

Speaker Change: Sure.

Speaker Change: Thank you.

Speaker Change: Your next question comes from Bret Jordan from Jefferies. Please go ahead.

Hey, good morning, guys.

Speaker Change: Ex the I think you said ex the cheap Harvey's Asps were up I guess over 40000, what percentage of your units for <unk> and 17 days.

Speaker Change: I think 10 stores this year and we think that they were a better trade for some of the other ones that we consolidated so like any football team. There's 53 players. We're gonna look to upgrade that talent and upgrade the performance every single day on our path to north of 300.

Speaker Change: We don't disclose that information just for competitive reasons, but we will tell you that it's a pretty nice chunk of our of our new travel trailer business, but everybody is trying to always figure out exactly what we're doing and we need to keep some competitive advantage. So that we can get our market share to where we want to get it to.

Marcus Lemonis: And we're trying to be up on top of being up last year, and growing our used business at the exact same time. I think the 14 that we've thrown around through February is not a number that we really believe is our 2025 number. Our goal was always 12. We'll be pleased to exceed 12. But we want to set expectations that 12 is still a significant increase in total volume for the year as we work through the back half.

Speaker Change: Okay.

Speaker Change: Great. Thank you guys.

Speaker Change: Okay, and then I guess, you said Theres no fallout for the already industry from the tariffs, but I think there is an Indiana paper last week talked about so we're doing some pretty significant lay offs early in the season here.

Speaker Change: Sure.

Speaker Change: Thank you.

Bret Jordan: Your next question comes from Bret Jordan from Jefferies. Please go ahead.

Bret Jordan: Hey, good morning, guys.

Marcus Lemonis: Thank you.

Speaker Change: Do you think others are starting to react as if there will be fallout I mean, obviously consumer confidence is pretty weak in this morning's GDP unemployment numbers are weak.

Bret Jordan: Ex the I think you said ex the cheap Harvey's Asps were up I guess over 40000, what percentage of your units for <unk> in 2017 base.

Tristan Thomas: The next question comes from Tristan Thomas Martin from BMO Capital Markets.

Speaker Change: Feel like the the manufacturers are starting to real things in in advance I don't want to predict what the manufacturers are doing to improve the efficiency, but I would imagine that why theyre, making certain changes is in anticipation of having to absorb some moderate tariff increases I don't think any manufacturer believes.

Tristan Thomas: Please go ahead. Hey, good morning. Thank you for talking. Great morning.

Tristan Thomas: um just uh how the the mid-single-digit model year 26 price increase is that just towables or was that towables and motorized? That was all of it combined. So, I mean, we look at a whole basket of goods of all motorized totals combined. So, you will have certain motorized sub-segments where like a Mercedes Sprinter chassis is going to be a much more material price increase year over year. However, we don't necessarily feel the entire effects of that because of our ability to just negotiate pricing, period. However, when we look holistically, as you know, Tristan, there's going to be a mixed bag of results across every segment.

Speaker Change: They're going to take an increase in any particular part or piece because that's really what we're talking about and theyre just going to pass it onto the deal then the dealer is going to pass it on I think they along with US are tightening every part of our belt to ensure that whatever the whatever the impact is we're braced for it and we're getting ready for.

Speaker Change: Okay, and then I guess, you said Theres no fallout for the already industry from the tariffs, but I think there was an Indiana paper last we've talked about so we're doing some pretty significant lay offs early in the season here.

Speaker Change: Do you think others are starting to react as if there will be fallout I mean, obviously consumer confidence is pretty weak in this morning's GDP unemployment numbers are weak.

Speaker Change: I think what I love most about what's happening right now is that the tariff thing is actually causing everybody in our industry to just get smarter more efficient leaner look at ways to make more money look at ways to cut costs look at ways to improve the supply chain look at ways to be more diversified and ways that we make money those are.

Speaker Change: Feel like the manufacturers are starting to real things in in advance I don't want to predict what the manufacturers are doing to improve the efficiency, but I would imagine that why they are making certain changes is in anticipation of having to absorb some moderate tariff increases I don't think any manufacturer believes that.

Tristan Thomas: I mean, in some categories, there's going to be no price increase with certain brands, manufacturers, whereas others, it could be upwards of like 11, 12%. But holistically, we'd suggest that it's probably going to land somewhere in that like 5, 6% range if we had a guess, some lower, some higher.

Tristan Thomas: We won't know for a fact though for another month or so. And that's when Mottier 2026 pricing actually hits more rampantly in every category across the country. Okay, and then could we do get that five to 6% increase on model year 26?

Speaker Change: Good things and we don't really believe that this tariff thing is going to be in the long term as overblown as it may be today, but we are braced for it and we are making the changes that are necessary. We don't want to speculate on why they're making changes where we we do we hope that it's because they understand that theres not a lot of Alaska.

Matt Wagner: How should we think about the mix dynamic, not so much this selling season, but kind of end of 25 and into 26? Well, I think as always, there'll be certain categories, price points, where we'll be able to take advantage. And that's been evidenced by the entire exclusive brand lineup that we've been very effective at contract manufacturing, where if you look through every single one of our segments, class A gas, D's, C's, fifth wheel, travel trailers, the best selling floor plan within each of those respective segments is a contract manufactured unit. And as you heard Marcus mention earlier in this call, we believe that we'll be able to continue to bend that curves of affordability to ensure that we're able to take advantage of the opportunity.

Speaker Change: This city in pricing and you can't pass it all on.

Is there a more important metric than consumer confidence would be looking out I mean, you said theres no direct impact from tariffs on the space, but it seems like an indirect might be what happens to the consumer with broader potential inflation. I mean is there a metric that you guys run regressions against other but more importantly confidence.

Speaker Change: For our business, it's availability of credit and the affordability of the product and so price and rate matter and the availability of credit matters. Those are really the two things that we think about we're not naive to think that if the consumer gets negatively impacted its going to be a problem, but we also know that the consumer will make choice.

Matt Wagner: No matter what, though, the ASPs will have to go up from here. We cannot continue to maintain these ASP levels to the same extent. And we believe that there's still some targeted segments in spite of any sort of price increases, where we'll be able to undercut the rest of the marketplace to ensure that we continue to stack on these moderate market shares. I think it's also important to note that when we talk about ASPs going up four or five percent, for those that aren't aware, RVs are financed anywhere from 180 to 240 months. And so when you talk about spreading that out over a long period of time, that matters, particularly when you have rates coming down at the same time.

Speaker Change: Since.

Speaker Change: City and pricing and you can't pass it all on.

Speaker Change: We know they're going to make choices and if there is increases in certain things, they're not going to buy them until the price comes back when you look at what happened to the RV industry coming out of Covid, where prices had exploded to the upside and then they had to come back down that was the recognition by everybody, including the manufacturers that the consumers just not going to do.

Speaker Change: Is there a more important metric than consumer confidence would be looking out I mean, you said theres no direct impact from tariffs on the space, but it seems like an indirect might be what happens to the consumer with broader potential inflation. I mean is there a metric that you guys run regressions against other but more importantly confidence.

Speaker Change: And so when we talk about inflation, we are worried about inflation on things like food and gas and things that people must have put on discretionary items. They can make choices. We think that the reason our business in April continues to be good because we understand those choices and we give them a product offering that meets what they can afford it.

Matt Wagner: So rate mitigation usually offsets price increases. What we had in the years past is we had price increases and rate increases at the same time, really making the addressable market shrink pretty rapidly. We have the opposite of that.

Speaker Change: Great. Thank you.

Speaker Change: Since.

Speaker Change: Yeah.

Speaker Change: Thank you.

Speaker Change: This concludes our question and answer session I would now like to turn the conference back over to Marcus Laminates for closing remarks.

Matt Wagner: Okay, if I can sneak one more in there. Could you maybe just remind everybody, vehicle gross margins, what are the historical records or what would you consider historical? I mean, Tristan, from my perspective, you look back at that 2016 through 2018 timeframe, you've got news sitting in anywhere from like 13% to about 14%, and use historically is about 20 plus percent, but within the youth segment, there's going to be a whole host of different factors that you have to take into consideration, especially in the short term, where we've ramped up our procurement efforts, we've ramped up our consignment efforts pretty extensively, and as I think there was some comments that I read through last evening about our used inventory balances, not necessarily being up materially from quarter to quarter, when people are oftentimes failing to recognize the amount of consignments that we've picked up and invested in, which isn't going to show up in our balance sheet, of course, where if we look through our consignments, we're up to about 2,600 consignments, whereas like historically, that number typically sits in like that 600, 700 range.

Speaker Change: Thank you as we navigate through the balance of this quarter. It is our expectation just to reiterate that we feel strong about our guideposts, we understand the macro isn't ideal for this environment and we will do what it takes to make the necessary adjustments to deliver the results we expect from ourselves.

Speaker Change: Thank you.

Speaker Change: Yeah.

Thank you.

Speaker Change: The conference has now concluded. Thank you for attending today's presentation you may now disconnect.

Speaker Change: Right. Thank you.

Speaker Change: Yeah.

Speaker Change: Thank you.

Speaker Change: This concludes our question and answer session.

Speaker Change: I would now like to turn the conference back over to Marco <unk> for closing remarks.

Speaker Change: Thank you as we navigate through the balance of this quarter. It is our expectation just to reiterate that we feel strong about our guideposts, we understand the macro isn't ideal for this environment and we are we will do what it takes to make the necessary adjustments to deliver the results we expect from ourselves.

Matt Wagner: I think what you're really referring to is when people scrape our data and try to extrapolate out what they think our inventory is, they need to take into account that a big chunk of that is inventory that we sell on our lots that we do not own. Correct. And oftentimes, that consignment asset is going to yield a lower gross margin, but we're okay with that. Because when we think about that return on capital, I mean, ultimately, this is an asset that we don't own and we're able to still enjoy the benefits of selling this asset and yielding that profit.

Speaker Change: Thank you.

Speaker Change: Yeah.

Speaker Change: Thank you.

Speaker Change: The conference has now concluded. Thank you for attending today's presentation human I will disconnect.

Speaker Change: Okay.

Speaker Change: [music].

Tristan Thomas: Jokingly, the consignments turn 365 times because you buy it on the same day that you sell it. That's right. Got it. Thank you.

Speaker Change: Yes.

Speaker Change: [music].

John Healy: The next question comes from John Healy from North Coast Research. Please go ahead. Thanks for taking my question, guys. Just one question for me. When you look at kind of the model that you've laid out there over the last couple years, I think it was two years ago at Tampa, you guys talked about 325 stores or so. Is that still a good target for you guys? Because when I hear your comments, it's much more thoughtful now on, you know, store counts, revenue per store, costs.

Marcus Lemonis: So my question is, is 325 the right number still that you're aiming for, or is it lower and the stores are bigger and more productive, and as a result, you can still get to those share gain goals, and just love to get your thoughts on that, and maybe the long-term profit potential at that store count level. Thanks. Yeah, so driving profitability is absolutely the top thing on our list. And getting back to the type of EBITDA margins that we enjoyed previously is right there at the top of the list. And how we get there is going to be something that will evolve over time.

Marcus Lemonis: We still know that we need to grow our footprints and we still see white space across the country. And we still see opportunity to enter markets that we're not in today. And we still see opportunity to pick up brands where we think there's market share growth opportunity today. And we still see opportunity to increase our service base and our opportunities. So the idea of us ever, anybody ever thinking that we are not a growth company would be a terrible, terrible misnomer.

Marcus Lemonis: How we grow, it needs to be more qualitative. And whether we're going to get to 320 or 312, we know that we need to grow the size of our business to get to 10, 11 billion dollars in top line. We want to do that as smartly as we can. We want to have margins and process and EBITDA returns be what they should be. And so whether again, whether it's 320 or not, we are a growth company. And over 20 years, we built this business by tacking on locations, by finding markets, by acquiring new brands, by adding new service base.

Marcus Lemonis: That is never going to change.

Marcus Lemonis: We also are conscious of the environment that we're in. And we also understand our necessity to de-lever our balance sheet. So building cash and growing earnings at an accelerated rate is priority number one. That doesn't mean that we're not going to be opportunistic. We've already acquired and picked up, I think, 10 stores. and we think that they were a better trade for some of the other ones that we consolidated.

Marcus Lemonis: So like any football team, there's 53 players. We're going to look to upgrade that talent and upgrade the performance every single day on our path to north of 300. Great, thank you guys.

Operator: Thank you.

Bret Jordan: The next question comes from Bret Jordan from Jeffreys, please go ahead. Good morning, guys. I think you said X, the cheap RVs, ASPs were up, I guess, over 40,000. What percentage of units are 13Bs and 17Bs? We don't disclose that information just for competitive reasons, but we'll tell you that it's a pretty nice chunk of our of our new travel trailer business. But, you know, everybody's trying to always figure out exactly what we're doing and we need to keep some competitive advantage so that we can get our market share to where we want to get it.

Marcus Lemonis: And then I guess you'd said there's no fallout for the R&D industry from the tariffs, but I think there was an Indiana paper last week talked about Thor doing some pretty significant layoffs early in the season here. Do you think others are starting to react as if there will be fallout? I mean, obviously, consumer confidence is pretty weak, and this morning's GDP and employment numbers are weak. Do you feel like the manufacturers are starting to reel things in in advance? I don't want to predict what the manufacturers are doing to improve the efficiency, but I would imagine that why they're making certain changes is in anticipation of having to absorb some moderate tariff increases.

Marcus Lemonis: I don't think any manufacturer believes that they're going to take an increase in any particular part or piece, because that's really what we're talking about, and they're just going to pass it on to the dealer, and the dealer's going to pass it on. I think they, along with us, are tightening every part of our belt to ensure that whatever the impact is, we're braced for it and we're getting ready for it. I think what I love most about what's happening right now is that the tariff thing is actually causing everybody in our industry to just get smarter, more efficient, leaner, look at ways to make more money, look at ways to cut costs, look at ways to improve the supply chain, look at ways to be more diversified in ways that we make money.

Marcus Lemonis: Those are good things, and we don't really believe that this tariff thing is going to be in the long term as overblown as it may be today, but we are braced for it, and we are making the changes that are necessary.

Marcus Lemonis: We don't want to speculate on why they're making changes. We hope that it's because they understand that there's not a lot of elasticity in pricing and you can't pass it all on.

Marcus Lemonis: Is there a more important metric than consumer confidence to be looking at? I mean, you said there's no direct impact from tariffs on the space, but it seems like an indirect might be what happens to the consumer with broader potential inflation. Is there a metric that you guys run regressions against other that's more important than confidence? For our business, it's availability of credit and the affordability of the product. And so, price and rate matter, and the availability of credit matters. Those are really the two things that we think about. We're not naive to think that if the consumer gets negatively impacted, it's going to be a problem.

Marcus Lemonis: But we also know that the consumer will make choices. We know they're going to make choices, and if there's increases in certain things, they're not going to buy them until the price comes back. When you look at what happened to the RV industry coming out of COVID, where prices had exploded to the upside, and then they had to come back down, that was the recognition by everybody, including the manufacturers, that the consumer is just not going to do it. And so when we talk about inflation, we are worried about inflation on things like food and gas and things that people must have, but on discretionary items, they can make choices.

Marcus Lemonis: We think that the reason our business in April continues to be good is because we understand those choices, and we give them a product offering that meets what they can afford.

Operator: Great, thank you. Thank you.

Marcus Lemonis: This concludes our question and answer session.

Marcus Lemonis: I would now like to turn the conference back over to Marcus Lemonis for closing remarks. Thank you. As we navigate through the balance of this quarter, it is our expectation just to reiterate that we feel strong about our guideposts. We understand the macro isn't ideal for this environment, and we will do what it takes to make the necessary adjustments to deliver the results we expect from ourselves.

Operator: Thank you.

Operator: The conference has now concluded. Thank you for attending today's presentation.

Operator: You may now disconnect.

Q1 2025 Camping World Holdings Inc Earnings Call

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