Camping World Holdings, Inc. (NYSE:CWH) Q3 2023 Earnings Call Transcript

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Patrick Buckley: Great. That’s helpful. Thank you. And then could you talk a bit more about how demand in capacity has trended on the parts and service side? Where does Bay [ph] expansion rank within your M&A strategy? And how is technician availability trended as of late?

Marcus Lemonis: Bay expansion is one of the key components, the key pillars in making that acquisition decision. As we look at the acquisition, sure, the market share that business has, how good or bad they’re used is, how good or bad their F&I is, the brands that they carry. Those are all factors. But if we find a dealer that sells a lot of product, but doesn’t have service, we tend to not want to buy that business. That’s not our business model. We’re sitting today with 2,800 days up from recent reports, and we’re sitting around 2,300 technicians. We continue to invest millions of dollars in multiple training universities for technicians on our own dime inside of our own company to supplement what the industry is trying to do.

It just wasn’t doing it at the pace and the rate that we wanted it to. So we took on that water on our own. We have to continue to attract skilled labor in this country for this lifestyle to continue to bolster. Look, you’ve got 11 million plus or minus reported RVs in the marketplace. And maybe the total Bay Universe is…

Matthew Wagner: Maybe 10,000 days.

Marcus Lemonis: I mean there’s never going to be a universe where there’s ever going to be enough Bays [ph] or enough technicians. The beauty of that, it’s like the white space will go on in perpetuity. For us, that is part of our acquisition strategy because when you’re adding just on the labor side alone, 70% plus margins and on a combined basis with parts in the mid to high 60s margins without a lot of inventory involved, I mean those are really attractive margins, which is why, historically, our company has overall company gross margins in the 30%-plus neighborhood. You take Good Sam, you take the service business like that’s our differentiator.

Patrick Buckley: Got it. Really helpful. Thanks, guys.

Operator: There are no further questions at this time. I would like to turn the floor back over to Marcus Lemonis for closing comments. Thank you again for joining our call. We want to reiterate our outlook for ’24 with positive revenue, positive same-store unit sales and improvement in our overall gross profit and improvement in our SG&A as a percentage. And lastly and most importantly, a better return on investment for shareholders with our adjusted EBITDA growing in excess of 30%. As a management team, we’re committed to delivering those results. We obviously know that there are factors outside of our control that could affect those. We’re going to work like hell to ensure that we beat those numbers. So thanks again. We look forward to seeing you in February.

Operator: This concludes today’s call. Thank you for joining us. You may now disconnect your lines.

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