Thu, May 1, 9:12 PM (21 days ago)
### Summary of Camping World Holdings, Inc. (CWH) Q1 2025 Financial Performance **Ticker: CWH** **Quarterly Financial Health and Performance Metrics:** 1. **Revenue:** - Total revenue for Q1 2025 was $1,413.5 million, a 3.6% increase from $1,364.0 million in Q1 2024. - Good Sam Services and Plans revenue increased by 1.2% to $46.2 million. - RV and Outdoor Retail revenue saw a 3.7% increase, driven by a 30.3% rise in used vehicle unit sales, despite a 4.4% decrease in the average selling price per new vehicle. 2. **Profit Margins:** - Gross profit margin improved by 89 basis points to 30.4% in Q1 2025 from 29.5% in Q1 2024. - Used vehicle gross margin increased by 104 basis points due to a 5.3% decrease in the average cost per unit sold. 3. **Cash Flow:** - Net cash used in operating activities was $232.5 million in Q1 2025, up from $68.0 million in Q1 2024, primarily due to changes in working capital adjustments. - Net cash used in investing activities was $145.4 million, mainly for acquisitions and capital expenditures. - Net cash provided by financing activities was $190.4 million, driven by borrowings under the Floor Plan Facility. 4. **Earnings Changes:** - Net loss attributable to CWH was $12.3 million in Q1 2025, an improvement from a loss of $22.3 million in Q1 2024. - Income from operations increased by $16.6 million to $20.8 million in Q1 2025. 5. **Quarterly Performance Discussion:** - The company experienced variability in revenue and cash flows due to seasonality, with higher sales and profits during the spring and summer months. - The company's strategic initiatives include expanding its business through acquisitions and capital expenditures, focusing on used vehicle sales, and managing inventory levels. 6. **Trends and Uncertainties:** - The company is closely monitoring U.S. trade policy developments and their potential impact on inventory and equipment sourcing. - The company is also focusing on managing inflationary pressures and their impact on operating results. 7. **Future Operations Impact:** - The company plans to continue its expansion through acquisitions and capital expenditures, with expected costs between $45.0 million and $55.0 million over the next twelve months. - The company's liquidity and capital needs are expected to be met through cash provided by operating activities, equity offerings, and borrowings under its various credit facilities. **Conclusion:** Camping World Holdings, Inc. (CWH) showed a mixed performance in Q1 2025, with revenue growth and improved gross margins, but increased cash used in operating activities. The company's strategic initiatives and focus on used vehicle sales are expected to drive future growth, despite uncertainties related to trade policies and inflation.