Camping World Holdings, Inc.

Good morning and welcome to Camping World Holdings conference call to discuss financial results for the third quarter of fiscal year 2024. At this time all participants are in 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 the call in whole or in part is not permitted without written authorization from the company. Joining on the call today are Marcus Lemonis, Chairman and Chief Executive Officer, Matthew Wagner, President, Tom Kern, Chief Financial Officer, Lindsay Christen, Chief Administrative and Legal Officer, and Brett Andres, Senior Vice President, Investor Relations. I will turn the call over to Ms. Christen to get us started.

Thank you, and good morning, everyone. A press release covering the company's third 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 are business plans and goals, industry and customer trends, inventory expectations, the expected impact of inflation, interest rates, and market conditions, acquisition pipeline and plans, future dividend payments and capital allocation, and anticipated financial performance. Actual results may differ materially from those indicated by these statements as 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 third quarter results are made against the 2023 third quarter, unless otherwise noted. I'll now turn the call over to Marcus.

Thanks, Lindsay. Good morning and welcome to our 2024 third quarter call. On today's call, our team will cover the operational and financial highlights of the quarter while providing comments on 2025. Before we get started, our team would like to welcome Tom Kern to his first official earnings call as CFO. As we near the end of 2024, I am immensely proud of the progress and financial outperformance that our Camping World team has accomplished. Record market share, continued strength in our Good Sam business, bucking RV industry headwinds, and year-over-year improvements in our service and parts business. As we prepare for 2025, we believe that the accelerated growth of our company is squarely rooted in three foundational drivers, distribution, product, and our ability to be a market maker. The first is distribution. Dealership acquisitions are part of the DNA of this organization. In May of 2003, we acquired our first dealership and have now grown to over 200 locations at the end of the quarter, with a clear path to 320. As I sit here today, I believe we are on the precipice of one of the most opportunistic M&A environments I've seen. We will execute that distribution growth through a combination of traditional Camping World dealership locations, manufacturer exclusive locations, standalone use super centers, standalone use consignment locations, and our digital and physical Camping World auction platform. Secondly is product. Just shy of 36% of our new unit sales comes from the sale of contract manufactured RVs that are exclusive to Camping World and that are manufactured between both Thor and Forest River. Over a decade ago, our company started down this path with our OEM partners. Today, we partner with them on design and sourcing, looking for innovative ways to find new consumers through creative solutions around towing weight, modernized floor plans and features, with the idea of enhancing content while letting our size and scale yield true value creation for the customer. It is our plan to continue to use empirical data, market trends, and leading manufacturers to further unlevel the playing field, yielding unit gains. Lastly, as distribution is the key to industry influence, and product is the path to consumer acquisition, being a market maker is the cornerstone of value creation for Camping World. Over the last 15 years, our company has invested in accumulating and dissecting proprietary data. This highly customized data is used to initiate demand, increase lead generation, improve conversion metrics, modernize product design, create efficient inventory ordering, launch real-time market-based new and used pricing, and find the white space, both geographically as well as by product segment. When identifying white space, nothing is more clear than the used RV market, with over 750,000 units being sold, both via dealers and private party transactions. Between the Good Sam Valuator tool and our recently launched national CW auction business, we see tremendous value in formally supplanting others as the authority or marker around vehicle values, particularly on the used side of the industry. Taken all together, we are essentially creating liquidity in the RV market through the buying or selling of inventory, or the identification and capitalization of underserved markets. This enables us to constantly address the shifting in consumer preferences or macroeconomic environments by creating those pockets of opportunity in a nimble manner or mitigating certain macroeconomic headwinds in favor of our investors. These three growth drivers are the catalyst to exceeding 15% market share of the combined new and used RV market, a goal of ours. We currently sit at a record of nearly 11% share of those combined new and used RV markets. Do the math with me. 1% of incremental share would require us to sell an additional 10,000 units. Now, in addition to organic growth, which we expect, We know acquisitions are required to achieve our market share goals. From 2017 to 2023, our dealership M&A has delivered north of 20% annualized cash on cash returns, inclusive of all sources of gross profit. As an example, we believe that for every $100 million that we deploy towards acquisitions, on average, That would equate to approximately 20 additional dealership locations. And based on history, those 20 dealership locations would yield about an additional 10,000 units of volume based on the averages. That's the 1% we're looking for. Much like how we gained significant market share and buffed industry trends in 2024, despite the interest rate and macro headwinds, we believe we have a clear path to improved profitability in 2025 without relying on any single macro metric improving materially. I'll now turn the call over to Matthew.