Camping World Holdings, Inc.

to discuss financial results for the first quarter of fiscal year 2024. At this time, all participants are in a listen-only mode. Later, we will conduct a question and answer session and instructions will follow at that time. Please be advised that this call is being recorded and the reproduction of this call in whole or in part is not permitted without written authorization from the company. Joining on the call today are Marcus Lemoris, Chairman and Chief Executive Officer, Brent Moody, President, Karen Bell, Chief Financial Officer, Matthew Wagner, Chief Operating Officer, Lindsay Christian, Chief Administrative and Legal Officer, Tom Kern, Chief Accounting Officer, and Brett Andres, Senior Vice President, Investor Relations. I will now turn the call over to Ms. Christian Lemoris. to get us started. Please go ahead.

Thank you, and good morning, everyone. A press release covering the company's first quarter 2024 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. 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, industry and customer trends, inventory expectations, the expected impact of inflation, interest rates, and market conditions, acquisition pipelines and plans, future dividend payments and capital allocation, and anticipated financial performance. Actual results may differ materially from those indicated by these statement is a result of various important factors, including those discussed in the risk factors section in our Form 10-K, our Form 10-Qs, and other reports on file with the SEC. 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, and 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 2024 first quarter results are made against the 2023 first quarter, unless otherwise noted. I'll now turn the call over to Marcus.

Thanks, Lindsay. Good morning and welcome to our 2024 first quarter call. On today's call, the team will cover both the operational and financial highlights of the quarter while providing comments on the exciting future ahead. As we entered the quarter, we had very specific targets to execute on. Gaining market share on new while improving year-over-year margins. the recalibration of our used inventory levels driven by the unparalleled reduction of new pricing, open up 14 new locations, and eliminate non-performing assets. The double-digit same-store sales momentum and market share growth during both the first quarter and the second quarter to date proves our thesis around demand and its interdependency on lower price units, essentially affordability. We continue to feel strongly about driving our efforts towards the intersection of strong demand and affordability. We expect the average selling price of new units in our company to be at or below $38,000 and could see flexibility up slightly once interest rates retreat in 2025. Consumers ultimately build their monthly financial models around monthly payments. So in addition to change in mix, and average selling price, we continue to be successful in working with retail lending partners in a higher rate environment to provide intelligent and thoughtful solutions around financing. This strategy has led to delivering another successful quarter, both in finance income and product penetration, which ultimately enhances the total gross profit per unit. In working to achieve our 2024 earnings growth, We identified the need to continue to eliminate underperforming or non-core assets. Through the quarter, we have sold one RV dealership location and signed a definitive agreement to sell our furniture manufacturing business. These moves are not only unleashing locked-up capital, but have evolved in one case into a holistic strategic partnership that we believe will provide material sales and margin improvement in our parts and aftermarket business. The sale and entrance into a new parts and aftermarket supplier agreement will positively impact our financial results going forward. In addition to the above, our earnings growth goals have required us to make tough cuts around SG&A in the last six months. Our target on SG&A as a percentage of growth has and always will be rooted in the low 70% range. We believe that we have made the cuts that allow us to return to that level once gross profit sequentially returns to normal levels. As we unpack the quarter on SG&A, only our January and February results were outside of our standards, but it was exclusively driven by the temporary compression on RV margins caused by our rigorous inventory management plan. March started to return to a more acceptable range, and we expect that to improve in Q2 and then seasonally sequentially improve as margins normalize. As a reminder, our business is largely built around the installed base of RVers, and that is evidenced by our continued solid performance in Good Sam and our parts and service business. Those categories provide unparalleled stability and predictability unmatched by anyone else. As one would expect, our management team has the responsibility of always looking at ways to improve and unlock value in the company. We've been working with Goldman Sachs to explore alternatives as it relates to our Good Sam business, which was coming off a record year in 2023. Through that process, we have been pleased by the number of interested parties who see the strength of the brand and the opportunity and the value associated with it. Our team has continued to discuss this internally, and we believe that our ability to grow this business by allowing our good SAM team the flexibility to expand into the larger recreational space, not just RVs, would not only yield enhanced earnings, but would allow us to widen our prospect audience from the boating and power sports categories while we continue to explore alternatives. As we continue through the balance of the year, our focus is simple. Continue to see material sales and profit improvement in our existing 211 RV dealership locations, find ways to continue our new market share expansion, expanding our market-making ability on use, which Matt will discuss further, and return to our internal expectations on SG&A while maintaining the same opportunistic approach to acquisitions as we drive towards our goal of 320 locations by 2028. I'd like to turn the call over to Matt Wagner to discuss the operations.