RV Business

From Noovo: Officials at Noovo, a leader in the RV industry, says the company’s Noovo Lite is the latest innovation in Class B Campervan mobile living.

The Noovo Lite Class B Campervan is engineered to provide the ultimate blend of comfort, style, and functionality in a compact, easy-to-maneuver package. Perfect for both seasoned travelers and newcomers alike, this campervan is designed to enhance every journey with premium features and modern conveniences.

Key Features

• Compact Luxury: Despite its sleek, streamlined design, the Noovo Lite offers spacious living areas, including a fully equipped kitchenette with elevated fridge, a comfortable sleeping area featuring a queen bed, and a stylish bathroom with dedicated toilet and shower.
• Advanced Technology: Equipped with the latest tech, including smart navigation systems, energy-efficient solar panels, lithium batteries and Starlink WiFi to keep you connected on the go.
• Convenience: The Noovo Lite has 40-gallon gray and fresh water storage tanks allowing users to go a decent amount of time without having to empty or refill. 
• Enhanced Mobility: Its compact size ensures easy handling and parking, making it ideal for both urban exploration and off-the-beaten-path adventures.
• Premium Comfort: From luxurious upholstery to state-of-the-art climate control, every detail is crafted to ensure a first-class travel experience.

Why It Matters

In an era where travelers are seeking greater flexibility and comfort, the Noovo Lite Class B Campervan meets these demands with an innovative design that marries luxury with practicality. Its versatility and high-end features cater to a wide range of lifestyles, from weekend warriors to full-time explorers. This model starts at $162,700 with financing options available.

The RVBusiness Featured Video is sponsored by Curt, a Lippert Brand.

The post OEM Showcase: Noovo Lite B-Van Offers ‘Comfort & Style’ first appeared on RVBusiness - Breaking RV Industry News.

JASPER, Ind. – Meyer Distributing announces its 2024 Second Quarter Outstanding Sales Performance Award. This award recognizes sales account managers who consistently exceed expectations at Meyer Distributing.

The 2024 Second Quarter Outstanding Sales Performance Award goes to Kent Rees, senior sales account manager.

“19 years of knowledge, passion and relationships made Kent a great recipient of this award,” states Jeremy Schnaus, category sales manager for Traditional Truck & Outdoor. “Kent’s peers and customers all value the knowledge he has gained during his time at Meyer. The passion and reliability he gives to his customers is instrumental in how he builds his relationships. Meyer is lucky to have someone so dedicated that goes above and beyond for his customers.”

“Being with Meyer for 19 years has allowed me to work with a lot of great people – customers, co-workers and vendors,” Rees said. “Meyer has always allowed me to bring ideas to the table and values input from all employees. It is great coming in each and every day to a great work environment with awesome co-workers who love what they do. Being at Meyer as long as I have has allowed me to build valuable relationships with customers in the automotive industry who have become close friends as well. I greatly appreciate the recognition and look forward to more exciting times and opportunities in the future.”

Meyer Distributing is a complete international automotive and RV/towing distributor. With 107 locations nationwide and over 3,500,000 square feet of warehouse space, Meyer has a huge inventory of parts to service their customers. With strategically positioned warehouse facilities, Meyer Distributing is able to provide next day delivery to most locations using Meyer Logistics direct ship.

The post Meyer Dist. Announces 2024 Q2 Sales Performance Award first appeared on RVBusiness - Breaking RV Industry News.

NAPPANNEE, Ind. – Gulf Stream Coach, America’s largest family-owned RV manufacturer, announces the debut of the Trail Boss 140BH, the latest addition to its ultra-lightweight line of travel trailers. Designed for adventurers who crave freedom and flexibility, the Trail Boss 140BH offers a perfect blend of comfort, durability and affordability, according to a release.

The Trail Boss 140BH packs essential living amenities into a compact, incredibly light yet rugged package. This innovative travel trailer opens up new worlds of exploration for campers, the release continued, providing a portable oasis of comfort, security, entertainment and basic necessities.

“Our goal with the Trail Boss 140BH was to make it easy for outdoor enthusiasts to discover, explore, and escape,” said Phil Sarvari, president of Gulf Stream Coach. “We’ve created a trailer that is budget-friendly, without compromising on features or quality.”

The Trail Boss 140BH comes equipped with an impressive list of standard features, including:

• Solar power energy management system
• Off-grid refrigerator
• Gas heater and water heater
• Smooth front exterior design
• Outdoor shower
• Cooktop and microwave
• Air conditioning
• Extra ground clearance
• Bluetooth portable speaker
• Exterior storage
• Solid step entry

Designed to be easy to tow and park, the Trail Boss 140BH is perfect for a wide variety of camping situations. At just 2,510 pounds dry weight, its lightweight construction ensures that a wide variety of vehicles can safely tow this versatile trailer, making outdoor adventures more accessible than ever.

“Go anywhere, go anytime,” said Sarvari.

The Trail Boss 140BH is now available at Gulf Stream Coach dealerships nationwide. For more information about the Trail Boss series or to find a dealer near you, visit www.gulfstreamcoach.com.

About Gulf Stream Coach

Gulf Stream Coach is the country’s largest family-owned manufacturer of recreational vehicles. The Nappanee, Indiana-based company has been building travel trailers and motor homes for over 40 years. It has received multiple awards for quality and innovation.

The post Gulf Stream Coach Showcases New Trail Boss 140BH first appeared on RVBusiness - Breaking RV Industry News.

Sun Communities, Inc. (NYSE: SUI), a real estate investment trust (REIT) that owns and operates, or has an interest in, manufactured housing (MH) and recreational vehicle (RV) communities and marinas, has reported its second-quarter results for 2024.

Financial Results for the Quarter and Six Months Ended June 30

• For the quarter ended June 30, net income attributable to common shareholders was $52.1 million, or $0.42 per diluted share, compared to a net loss attributable to common shareholders of $207.6 million, or $1.68 per diluted share for the same period in 2023.
• For the six months ended June 30, net income attributable to common shareholders was $24.7 million, or $0.20 per diluted share, compared to a net loss attributable to common shareholders of $252.5 million, or $2.04 per diluted share for the same period in 2023.

Non-GAAP Financial Measures

• Core Funds from Operations for the quarter and six months ended June 30, was $1.86 per common share and dilutive convertible securities and $3.05 per share, respectively, as compared to $1.96 and $3.19 for the same periods in 2023.

Same Property Net Operating Income (“NOI”)

• North American Same Property NOI increased by $10.4 million and $29.8 million, or 3.6% and 5.6%, respectively, for the quarter and six months ended June 30, as compared to the corresponding periods in 2023.
• UK Same Property NOI increased by $1.7 million and $5.0 million, or 9.3% and 19.4%, respectively, for the quarter and six months ended June 30, as compared to the corresponding periods in 2023.

“We are pleased to have delivered solid second-quarter results while advancing our strategy focused on delivering reliable earnings growth. In our Manufactured Housing and Marina segments we saw strong NOI growth supported by sustained demand,” said Gary A. Shiffman, chairman, president and CEO. “We are also seeing growth in annual RV revenues, and while transient RV is still experiencing some headwinds, we are actively managing our controllable expenses. Our UK strategy remains focused on shifting a larger proportion of our income from home sale margins to the resilient, reliable NOI generated by real property rents. Finally, we are executing on our capital recycling objectives. Year to date, we have sold over $300 million of properties and used the proceeds to pay down debt.”

OPERATING HIGHLIGHTS

North America Portfolio Occupancy

• MH and annual RV sites were 97.5% occupied on June 30, as compared to 97.1% on June 30, 2023.
• During the quarter that ended June 30, the number of MH and annual RV revenue-producing sites increased by approximately 1,230 sites, as compared to an increase of approximately 1,040 sites during the corresponding period in 2023, an 18.7% increase.
• Transient-to-annual RV site conversions totaled approximately 920 sites during the second quarter of 2024, a 22.7% increase over the second quarter of 2023.

INVESTMENT ACTIVITY

During and subsequent to the quarter ended June 30, the company completed the following dispositions:

• In July, a portfolio of six MH properties across six states for total cash consideration of $224.6 million, with an estimated gain on sale of approximately $140.0 million.
  • Net proceeds were used to pay down $62.3 million of mortgage debt and $151.1 million of borrowings under the Company’s Senior Credit Facility.
• In July, one MH property was for a total cash consideration of $38.0 million.
  • • Net proceeds were used to pay down $16.7 million of mortgage debt and $20.3 million of borrowings under the Company’s Senior Credit Facility.
• In May, one Park Holidays property for total cash consideration of $5.4 million.

During the quarter ended June 30, the company acquired:

• In April, one marina property and two marina expansion assets for a total consideration of $12.0 million including the issuance of common OP units valued at $2.5 million.
• In June, a parcel of land in the UK for a total consideration of $9.6 million, will support the future expansion of an existing Park Holidays property.

To read the full report, click here. 

The post Sun Communities ‘Pleased’ With Second Quarter ‘24 Results first appeared on RVBusiness - Breaking RV Industry News.

AKRON, Ohio – Myers Industries Inc. (NYSE: MYE), the parent company of Ameri-Kart and Elkhart Plastics and a leading manufacturer of a wide range of polymer and metal products and distributor for tire, wheel, and under-vehicle service industry, today announced results for the second quarter ended June 30, 2024.

Second Quarter 2024 Financial Highlights

• Net sales of $220.2 million compared with $208.5 million in the prior-year period
• Net Income of $10.3 million, compared with $10.6 million in the prior-year period
• Adjusted EBITDA of $38.9 million, compared with $24.7 million in the prior-year period
• GAAP gross margin of 34.3%, up 150 basis points versus the prior-year period
• Adjusted gross margin of 36.1%, up 320 basis points versus the prior-year period
• GAAP net income per diluted share of $0.28 compared with $0.29 in the prior-year period
• Adjusted earnings per diluted share of $0.39 compared with $0.35 in the prior-year period
• Cash flow provided by operations of $14.3 million and free cash flow of $9.9 million

Myers Industries President and CEO Mike McGaugh commented, “Our second-quarter results reflect the Company’s first full quarter with Signature Systems. This business is benefiting from worldwide investments in Infrastructure and helped drive both sequential and year-over-year revenue growth and margin expansion. Signature’s performance outpaced the demand headwinds in the Recreational Vehicle (RV), Marine, and Automotive Aftermarket end markets.”

“We continue to focus on growing our Storage, Handling & Protection portfolio, most notably our four power brands: Akro-Mils, Buckhorn, Scepter, and Signature Systems. We believe our increased participation in the Military and Infrastructure end markets will provide meaningful growth for our Company over the next several years.

At the same time, we are taking actions to reduce costs and increase productivity in the Engineered Solutions and Automotive Aftermarket portfolios. These actions include the consolidation of three distribution centers in our Myers Tire Supply business, as well as today’s announcement of the consolidation of our Atlantic, Iowa, rotational molding facility into our other rotational molding plants in Indiana. We are able to reduce our footprint and reduce our cost structure, due to the productivity gains we’ve achieved. We expect these closures to be completed in 2025 and deliver approximately $5 million in cost savings in 2025 as well.

Our ongoing productivity-improvement and cost-reduction initiatives will help us navigate the cyclical demand conditions in the RV, Marine, and Automotive Aftermarket end markets while positioning the Company favorably for when these conditions revert to historical levels of demand.”

McGaugh concluded, “As a result of continued trough-like demand conditions in these end markets, we believe it is prudent to lower our full-year adjusted earnings per share guidance to a range of $1.05 to $1.20.

Myers’ consistent and disciplined execution of our Three-Horizon strategy and the expansion of our portfolio of branded products enabled us to achieve the highest quarterly adjusted EBITDA margin of the past decade. Despite the near-term demand softness in select end markets, we remain excited about the ongoing transformation of Myers Industries as we execute against our long-term strategy to build a portfolio of businesses with high margin, branded products that Move, Store, and Protect.”

Click here to read the report in full.

The post Myers Industries Announces Second Quarter 2024 Results first appeared on RVBusiness - Breaking RV Industry News.

FAIRFAX, Va. – The board of directors is the highest-level authority in the RV Industry Association’s overall organizational structure and is responsible for setting and overseeing strategy and policies related to critical topics such as standards, marketing, government affairs, industry education, statistical data, and association finances.

Eight candidates are running for this year’s three open seats. Members will have the opportunity to cast their votes in September to fill two RV manufacturer seats and one supplier seat. Voting will take place between Tuesday, Sept. 3 and continue until midnight on Monday, Sept. 23. Results will be announced in early October and the newly elected board members will begin serving their 3-year terms on Jan. 1.

Each member company is permitted one vote, cast by the member’s official representative. Stay tuned for more information in the coming weeks with specific details on how to vote.

The post Eight Candidates Nominated for RVIA Board of Directors first appeared on RVBusiness - Breaking RV Industry News.

MEDFORD, Ore. – Lithia & Driveway (NYSE: LAD), the parent company of Airstream Adventures dealer group, today reported the highest second quarter revenue in company history and the first profitable quarter for Financing Operations, which includes Driveway Finance Corporation.

Second quarter 2024 revenue increased 14% to $9.2 billion from $8.1 billion in the second quarter of 2023.

Second quarter 2024 net income attributable to LAD per diluted share was $7.87, a 27% decrease from $10.78 per diluted share reported in the second quarter of 2023. Adjusted second quarter 2024 net income attributable to LAD per diluted share was $7.87, a 28% decrease compared to $10.96 per diluted share in the same period of 2023. Unrealized investment gains partially offset by foreign currency exchange losses positively impacted earnings per share by $0.75.

Second quarter 2024 net income was $217 million, a 28% decrease compared to net income of $301 million in the same period of 2023. Adjusted second quarter 2024 net income was $217 million, a 29% decrease compared to adjusted net income of $306 million for the same period of 2023.

As shown in the attached non-GAAP reconciliation tables, the 2024 second quarter adjusted results had offsetting non-core items related to insurance reserves, tax attributes, and acquisition expenses. The 2023 second quarter adjusted results exclude a $0.18 per diluted share impact resulting from non-core items, including acquisition expenses and insurance reserves, partially offset by a net gain on the sale of stores.

Key Second Quarter 2024 Highlights:

• Total revenues increased 14% compared to second quarter 2023
• Diluted net income per share improved from $6.11 to $7.87, a 29% increase, from first quarter 2024
• Financing operations first profitable quarter with income of $7 million
• Driveway Finance Corporation (DFC) originated $562 million in loans, total portfolio of $3.6 billion
• Repurchased 2.9% of outstanding shares

“In the second quarter, our teams focused on operating efficiency and continuity as we responded to the continued normalization of margins and the disruption created by the CDK cyberattack. Our teams demonstrated an impressive effort to quickly pivot and provide solutions to maintain our ability to stay operational across our network and support the restoration of our environment,” said Bryan DeBoer, President and CEO. “Our diversified model demonstrated its strength, delivering the first quarter of profitability in Driveway Finance and continuing maturity of our adjacencies as we expand our omnichannel ecosystem to deliver the best experience for our customers. We have opportunistically rebalanced our capital allocation from acquisitions toward returns to our shareholders, with the long-term target of delivering $2 in EPS per billion in revenues.”

For the first six months of 2024 revenues increased 18% to $17.8 billion, compared to $15.1 billion in 2023.

Net income attributable to LAD for the first six months of 2024 was $13.75 per diluted share, compared to $19.08 per diluted share in 2023, a decrease of 28%. Adjusted net income attributable to LAD per diluted share for the first six months of 2024 decreased 28% to $13.97 from $19.38 in the same period of 2023. Unrealized gain on investments partially offset by foreign currency exchange losses positively impacted earnings per share by $0.60.

Corporate Development

During the second quarter, LAD expanded its network in the Southeast region with the acquisition of two stores in Tennessee and added Woodbridge Hyundai in the greater Toronto area. Year-to-date, we have acquired over $5.6 billion in annualized revenues.

LAD expanded its omnichannel strategy with the purchase of a minority stake in Wheels, Inc. in partnership with Marubeni Corporation. Wheels, Inc. is one of the largest fleet management companies in North America with a best-in-class management team and a robust competitive moat. This investment in a highly profitable fleet management operator is expected to create transformative synergies between our retail platform and fleet operations. This transaction was completed in the third quarter.

Balance Sheet Update
LAD ended the second quarter with approximately $1.3 billion in cash and cash equivalents, marketable securities, and availability on our revolving lines of credit. In addition, unfinanced real estate could provide additional liquidity of approximately $0.3 billion.

Dividend Payment and Share Repurchases
The Board of Directors approved a dividend of $0.53 per share related to second quarter 2024 financial results. The dividend is expected to be paid on August 23, 2024 to shareholders of record on August 9, 2024.

During 2024, we repurchased approximately 793,000 shares at a weighted average price of $256. Under the current share repurchase authorization approximately $613.8 million remains available.

Second Quarter Earnings Conference Call and Updated Presentation
The second quarter 2024 conference call may be accessed at 10:00 a.m. ET today by telephone at 877-407-8029. An updated presentation highlighting the second quarter 2024 results has been added to our investor relations website. To listen live on our website or for replay, visit investors.lithiadriveway.com and click on quarterly earnings.

About Lithia & Driveway (LAD)
Lithia & Driveway (NYSE: LAD) is one of the largest global automotive retailers providing a wide array of products and services throughout the vehicle ownership lifecycle. Simple, convenient, and transparent experiences are offered through our comprehensive network of physical locations, e-commerce platforms, captive finance solutions, fleet management offerings, and other synergistic adjacencies. We deliver consistent, profitable growth in a massive and unconsolidated industry. Our highly diversified and competitively differentiated design provides us the flexibility and scale to pursue our vision to modernize personal transportation solutions wherever, whenever and however consumers desire.

The post Lithia Reports Record Q2 Revenue of $9.2B, 14% Increase first appeared on RVBusiness - Breaking RV Industry News.

COLUMBUS, Ind. – Cummins Inc. (NYSE: CMI) today reported results for the second quarter of 2024.

“We achieved record quarterly sales and solid profitability in the second quarter, led by significant improvement in our Power Systems business,” said Jennifer Rumsey, Chair and CEO of Cummins. “As we shared during our Analyst Day in May, our Destination Zero strategy is the right strategy for growing our business and meeting our customers’ needs today and in the future. We continue to deliver innovative technologies for our customers, execute on our financial commitments, and strengthen our position in key markets. I want to thank our talented employees for their continued efforts to drive business results and make Cummins more competitive across the globe.”

Second quarter revenues of $8.8 billion increased 2% from the same quarter in 2023. Sales in North America increased 4% while international revenues decreased 2%.

Net income attributable to Cummins in the second quarter was $726 million, or $5.26 per diluted share, compared to $720 million, or $5.05 per diluted share, in 2023. The second quarter of 2023 included costs related to the separation of Atmus of $23 million, or $0.13 per diluted share. The tax rate in the second quarter was 23.0% including $9 million, or $0.07 per diluted share, of favorable discrete tax items.

Earnings before interest, taxes, depreciation and amortization (EBITDA) in the second quarter were $1.3 billion, or 15.3% of sales, compared to $1.3 billion, or 15.1% of sales, a year ago. EBITDA for the second quarter of 2023 included the costs related to the separation of Atmus noted above.

2024 Outlook:

Based on its current forecast, Cummins is raising its full-year 2024 revenue guidance to be down 3% to flat, due to stronger than expected demand across several markets, especially in North America on-highway and power generation. EBITDA is expected to be in the range of 15.0% to 15.5%, raising the midpoint and narrowing the range of the previous guidance of 14.5% to 15.5%.

Cummins plans to continue generating strong operating cash flow and returns for shareholders and is committed to our long-term strategic goal of returning 50% of operating cash flow back to shareholders. In the near term, we will focus on reinvesting for profitable growth, dividends and reducing debt.

“We have raised our expectations on revenue and profitability for 2024 due to continued demand for Cummins’ products and services. We still expect slowing demand in the North America heavy-duty truck market in the second half of the year,” said Rumsey. “Despite the lower outlook for the second half, Cummins is in a strong position to keep investing in future growth, bringing new technologies to customers and returning cash to shareholders.”

Second Quarter 2024 Highlights:

• Cummins announced an increase in the quarterly common stock cash dividend from $1.68 to $1.82 per share. The company has increased the quarterly dividend to shareholders for 15 consecutive years.
• Accelera by Cummins, Daimler Trucks & Buses and PACCAR completed the formation of their joint venture, now known as Amplify Cell Technologies, to localize battery cell production and the battery supply chain in the United States. This strategic collaboration will advance zero-emissions technology for electric commercial vehicles and industrial applications. Amplify began construction of a 21-gigawatt hour (GWh) factory in Marshall County, Miss., with potential for further expansion as demand grows. The factory is expected to create more than 2,000 U.S. manufacturing jobs and is targeting the start of production in 2027.
• Cummins and Isuzu announced the launch of a new 6.7-liter engine designed for use in Isuzu’s new medium-duty truck lineup. The “Isuzu DB6A” will power on-highway truck applications built for the Japanese market and will be available for the Asia Pacific markets and other global markets later this year. Cummins also announced plans to launch a battery electric powertrain for Isuzu’s F-series in North America. Availability of the medium-duty truck is expected in 2026 and will include Accelera’s next generation lithium iron phosphate (LFP) battery technology.
• Cummins hosted its biennial Analyst Day and shared plans to raise its long-term financial expectations, relative to its prior Analyst Day, and deliver increasing returns to shareholders.
• For the third consecutive year, Morgan Stanley Capital International (MSCI) awarded Cummins a AAA rating – the highest in the industry – for the ability to manage the most significant environmental, social and governance risks and opportunities relative to peers.
• In July, Accelera was awarded $75 million for zero-emissions manufacturing from the Department of Energy to convert approximately 360,000 sq. ft. of existing manufacturing space at our Columbus (Indiana) Engine Plant for zero-emissions components and electric powertrain systems. The $75 million grant is the largest federal grant ever awarded solely to Cummins and is part of the appropriations related to the Inflation Reduction Act.

 ¹Generally Accepted Accounting Principles in the U.S.

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 Second quarter 2024 detail (all comparisons to same period in 2023):

Components Segment

• Sales – $3.0 billion, down 13%
• Segment EBITDA – $406 million, or 13.6% of sales compared to $486 million, or 14.2% of sales, which included the Atmus business and $18 million of costs related to the separation of Atmus
• Revenues in North America decreased by 10% and international sales decreased by 17% primarily due to the separation of Atmus and lower demand in China and Europe.

Engine Segment

• Sales – $3.2 billion, up 5%
• Segment EBITDA – $445 million, or 14.1% of sales, compared to $425 million, or 14.2% of sales
• Revenues increased 7% in North America and increased 2% in international markets due to strong demand in the North American medium-duty truck market and pricing actions.

Distribution Segment

• Sales – $2.8 billion, up 9%
• Segment EBITDA – $314 million, or 11.1% of sales, compared to $299 million, or 11.5% of sales
• Revenues in North America increased 6% and international sales increased by 16% driven by increased demand for power generation products and pricing actions.

Power Systems Segment

• Sales – $1.6 billion, up 9%
• Segment EBITDA – $301 million, or 18.9% of sales, compared to $201 million, or 13.8% of sales
• Power generation revenues increased 16% driven by increased global demand, particularly for the data center market. Industrial revenues increased 2% primarily due to strong mining demand more than offsetting weaker demand in oil and gas markets.

Accelera Segment

• Sales – $111 million, up 31%
• Segment EBITDA loss – $117 million
• Revenues increased due to increased electrolyzer installations
• Costs associated with the development of electric powertrains, fuel cells and electrolyzers, as well as products to support battery electric vehicles are contributing to EBITDA losses.

The post Cummins Sees Record Quarterly Sales During Q2 2024 first appeared on RVBusiness - Breaking RV Industry News.

LINCOLNSHIRE, Ill. – Camping World Holdings, Inc. (NYSE: CWH), America’s Recreation Dealer, today reported results for the second quarter ended June 30, 2024.

Marcus Lemonis, Chairman and Chief Executive Officer of Camping World Holdings, Inc. stated, “Our record new unit market share was a direct result of listening to the consumer and their mandate for affordability. We saw year-over-year same store new vehicle unit growth accelerate into the mid-teens in June and into the low-twenties in July, positioning our company for a strong 2025.”

Matt Wagner, President of Camping World Holdings, Inc. commented, “As we prepare for an improved 2025, our unwavering philosophy is to remain disciplined around used aging and stocking levels, regardless of the macro environment. Over the last 30 days, we have begun to thoughtfully ramp up our used stocking levels, with year-over-year increases for the first time in over 10 months and a record volume of consignments. We have proceeded judiciously on mitigating used inventory risk which will keep pressure on used vehicle margins and volume in the second half.”

Mr. Lemonis concluded, “We are unbelievably encouraged by our new vehicle performance over the last several months, but especially the last 60 days. However, we are not naive about the macroeconomic environment around us, and we are taking a more aggressive position around our cost structure and the optimization of underperforming locations.”

Second Quarter-over-Quarter Operating Highlights

• The total number of our store locations was 215 as of June 30, 2024, a net increase of 12 store locations from June 30, 2023, or 5.9%.
• Revenue was $1.8 billion for the second quarter, a decrease of $94.2 million, or 5.0%.
• New vehicle revenue was $847.1 million for the second quarter, an increase of $46.2 million, or 5.8%, and new vehicle unit sales were 22,084 units, an increase of 3,187 units, or 16.9%. Used vehicle revenue was $480.8 million for the second quarter, a decrease of $142.2 million, or 22.8%, and used vehicle unit sales were 15,700 units, a decrease of 2,074 units, or 11.7%. Combined new and used vehicle units sales were 37,784, an increase of 1,113 units, or 3.0%.
• Average selling price of new vehicles declined 9.5% during the second quarter driven primarily by lower cost of 2024 model year travel trailers and discounting of pre-2024 model year new vehicles.
• Average selling price of used vehicles declined 12.6% during the second quarter due to discounting of used vehicles in response to declines in new vehicle prices to maintain used vehicles as a lower cost alternative to new vehicles.
• Same store new vehicle unit sales increased 9.7% for the second quarter and same store used vehicle unit sales decreased 17.0%.
• Products, services and other revenue was $235.9 million, a decline of $11.8 million, or 4.8%, driven largely by a reduction in sales activity resulting from our Active Sports Restructuring and fewer used vehicles sold led to a decline in retail product attachment to vehicle sales, partially offset by increases in RV service revenue.
• Gross profit was $547.7 million, a decrease of $23.4 million, or 4.1%, and total gross margin was 30.3%, an increase of 27 basis points. The gross profit decline was mainly due to the 5.0% decrease in revenue discussed above, which was partially offset by the increase in gross margin. The gross margin increase included a 543 basis point improvement in products, service and other gross margin, from higher labor billing rates on warranty service, the sale of our RV furniture business, improvements to the pricing for aftermarket accessories, and prior year incremental inventory reserve charges of $2.6 million relating to the Active Sports Restructuring that were not recurring in 2024. This gross margin increase was partially offset by a 392 basis point decrease in used vehicles gross margin, which was driven by the decrease in average selling price of used vehicles that was partially offset by a decrease in the average cost of used vehicles sold.
• Selling, general and administrative expenses (“SG&A”) were $419.7 million, a decrease of $1.2 million, or 0.3%. SG&A Excluding Equity-based Compensation ⁽¹⁾ was relatively unchanged at $414.4 million, a decrease of $0.2 million, or 0.1%, which was driven by $6.7 million reduced employee compensation costs and $5.8 million of reduced professional fees and services, which was partially offset by $11.8 million of additional advertising expenses.
• Floor plan interest expense was $27.8 million, an increase of $7.1 million, or 34.5%, and other interest expense, net was $36.2 million, an increase of $2.6 million, or 7.9%. These increases were primarily as a result of the rise in interest rates and higher principal balances.
• Net income was $23.4 million for the second quarter of 2024, a decrease of $41.3 million, or 63.8%.
• Diluted earnings per share of Class A common stock was $0.22 for the second quarter of 2024 versus diluted earnings per share of Class A common stock of $0.64 for the second quarter of 2023. Adjusted earnings per share – diluted ⁽¹⁾ of Class A common stock was $0.38 for the second quarter of 2024 versus adjusted earnings per share – diluted ⁽¹⁾ of Class A common stock of $0.73 for the second quarter of 2023.
• Adjusted EBITDA ⁽¹⁾ was $105.6 million, a decrease of $33.7 million, or 24.2%, primarily due to $23.4 million decrease in gross profit, and the $7.1 million increase in floor plan interest.

(1)

Adjusted earnings per share – diluted, Adjusted EBITDA, and SG&A Excluding Equity-based Compensation are non-GAAP measures. For a reconciliation of these non-GAAP measures to the most directly comparable GAAP measures, see the “Non-GAAP Financial Measures” section later in this press release.

Earnings Conference Call and Webcast Information

A conference call to discuss the Company’s second quarter 2024 financial results is scheduled for August 1, 2024, at 7:30 am Central Time. Investors and analysts can participate on the conference call by dialing 1-844-826-3035 (international callers please dial 1-412-317-5195) and using conference ID# 10190122. Interested parties can also listen to a live webcast or replay of the conference call by logging on to the Investor Relations section on the Company’s website at http://investor.campingworld.com . The replay of the conference call webcast will be available on the investor relations website for approximately 90 days.

Presentation

This press release presents historical results for the periods presented for the Company and its subsidiaries, which are presented in accordance with accounting principles generally accepted in the United States (“GAAP”), unless noted as a non-GAAP financial measure. The Company’s initial public offering (“IPO”) and related reorganization transactions (“Reorganization Transactions”) that occurred on October 6, 2016 resulted in the Company as the sole managing member of CWGS Enterprises, LLC (“CWGS, LLC”), with sole voting power in and control of the management of CWGS, LLC. The Company’s position as sole managing member of CWGS, LLC includes periods where the Company has held a minority economic interest in CWGS, LLC. As of June 30, 2024, the Company owned 53.0% of CWGS, LLC. Accordingly, the Company consolidates the financial results of CWGS, LLC and reports a non-controlling interest in its consolidated financial statements. Unless otherwise indicated, all financial comparisons in this press release compare our financial results for the second quarter ended June 30, 2024 to our financial results from the second quarter ended June 30, 2023.

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ELKHART, Ind. – Patrick Industries, Inc. (NASDAQ: PATK), a leading component solutions provider for the Outdoor Enthusiast and Housing markets, today reported financial results for the second quarter and six months ended June 30, 2024.

Second Quarter 2024 Highlights (compared to Second Quarter 2023 unless otherwise noted)

• Net sales increased 10% to $1.02 billion driven by a 17% increase in RV revenue, an 11% increase in Housing revenue, and our first quarter acquisition of Sportech, which together more than offset a 30% decline in Marine revenue.
• Operating margin increased 10 basis points to 8.3%. For the first six months of 2024, operating margin on an adjusted basis improved 40 basis points to 7.7%.
• Net income increased 13% to $48 million, and diluted earnings per share of $2.16 increased 11%.
• For the first six months of 2024, adjusted diluted earnings per share increased 20% to $3.95.
• Adjusted EBITDA increased 14% to $130 million; adjusted EBITDA margin increased 40 basis points to 12.8%.
• Cash flow provided by operations was $173 million for the first six months of the year compared to $178 million in the same period last year. Free cash flow, on a trailing twelve-month basis, was $348 million.
• Maintained solid balance sheet and liquidity position, ending the second quarter with a total net leverage ratio of 2.6x and liquidity of $519 million.

Net sales increased 10% to $1.02 billion, an increase of $96 million compared to the second quarter of 2023. The increase in sales was primarily driven by higher revenue from our RV and Housing end markets combined with revenue from our first quarter acquisition of Sportech, which more than offset lower revenue from our Marine end market as a result of continued strict production discipline by marine OEMs in light of ongoing marine dealer inventory destocking.

Operating income of $85 million in the second quarter of 2024 increased $9 million, or 12%, compared to $76 million in the second quarter of 2023. Operating margin of 8.3% increased 10 basis points compared to 8.2% in the same period a year ago as a result of continued labor management and increased revenues. For the first six months of 2024 compared to the same period in 2023, excluding acquisition transaction costs and purchase accounting adjustments in both periods, adjusted operating margin improved 40 basis points to 7.7%.

Net income increased 13% to $48 million compared to $42 million in the second quarter of 2023. Diluted earnings per share of $2.16 increased 11% compared to $1.94 for the second quarter of 2023. For the first six months of 2024 compared to the first six months of 2023, excluding acquisition transaction costs and purchase accounting adjustments in both periods, adjusted net income increased 20% to $87 million and adjusted diluted earnings per share increased 20% to $3.95.

“Our solid revenue and operating margin improvement in the second quarter reflect the strategic diversification investments we have made over the last several years as well as our cost management initiatives and capital expenditures related to automation projects,” said Andy Nemeth, Chief Executive Officer. “I am proud of how hard the Patrick team worked in the first half of the year to leverage our variable cost structure and execute operational efficiencies during a time when market and macroeconomic conditions have been so volatile.”

Jeff Rodino, President – RV, said, “We believe our history of successful, targeted acquisitions has bolstered the resiliency of our business, deepened our talent bench, and improved our ability to grow revenue and margins. Our acquisition philosophy remains intact, as we look for strong, culturally-aligned management teams, solid risk-adjusted returns, and the potential for significant long-term demand growth. Additionally, we are investing in our platform through our Advanced Product Group, which is collaborating with our valued customers to develop innovative, full-component solutions that will help enable us to continue to drive organic growth. In the second quarter, we brought numerous products to market, creating momentum and excitement for the future of Patrick, supporting our goal of being the supplier of choice for our customers and generating returns for shareholders.”

Second Quarter 2024 Revenue by Market Sector
(compared to Second Quarter 2023 unless otherwise noted)

RV (44% of Revenue)

• Revenue of $450 million increased 17% while wholesale RV industry unit shipments increased 7%.
• Content per wholesale RV unit (on a trailing twelve-month basis) decreased by 2% to $4,966. Compared to the first quarter of 2024, content per wholesale RV unit (on a trailing twelve-month basis) increased 2%.

Marine (16% of Revenue)

• Revenue of $158 million decreased 30% while estimated wholesale powerboat industry unit shipments decreased 27%. Powersports revenue was previously included in our Marine end market. End market revenue and content per unit reflect this change for the relevant periods.
• Estimated content per wholesale powerboat unit (on a trailing twelve-month basis) decreased 10% to $3,935. Compared to the first quarter of 2024, estimated content per wholesale powerboat unit (on a trailing twelve-month basis) decreased 2%.

Powersports (10% of Revenue)

• Revenue of $104 million increased 185%, driven primarily by the acquisition of Sportech in the first quarter of 2024.

Housing (30% of Revenue, comprised of Manufactured Housing (“MH”) and Industrial)

• Revenue of $305 million increased 11%; estimated wholesale MH industry unit shipments increased 19%; total housing starts decreased 7%.
• Estimated content per wholesale MH unit (on a trailing twelve-month basis) increased 1% to $6,427. Compared to the first quarter of 2024, estimated content per wholesale MH unit increased slightly from $6,403.

Balance Sheet, Cash Flow and Capital Allocation

For the first six months of 2024, cash provided by operations was $173 million compared to $178 million for the prior year period. Purchases of property, plant and equipment totaled $17 million in the second quarter of 2024, reflecting maintenance capital expenditures and continued investments in alignment with our automation and technology initiatives. On a trailing twelve-month basis, free cash flow through the second quarter of 2024 was $348 million, compared to $444 million through the second quarter of 2023 when we aggressively monetized working capital in a declining sales environment. Our long-term debt decreased approximately $82 million during the second quarter of 2024, as we continued to focus on deleveraging in alignment with our strategic plan following our first quarter 2024 acquisition of Sportech.

We remained disciplined in allocating and deploying capital, returning approximately $12 million to shareholders in the second quarter of 2024 through dividends. We remain opportunistic on share repurchases and had $78 million left authorized under our current plan at the end of the second quarter.

Our total debt at the end of the second quarter was approximately $1.33 billion, resulting in a total net leverage ratio of 2.6x (as calculated in accordance with our credit agreement). Pro forma net leverage at the time of the acquisition of Sportech in January 2024 was approximately 2.9x. Available liquidity, comprised of borrowing availability under our credit facility and cash on hand, was approximately $519 million.

Business Outlook and Summary

“We believe Patrick’s profitable growth prospects and earnings power remain substantial and expect continued market share gains and strategic acquisitions to enhance our performance when our end markets recover,” continued Mr. Nemeth. “Our investments in our business and team and resulting solid financial performance, coupled with our strong balance sheet, have positioned our team to maintain an offensive stance in these volatile markets. With our net leverage ratio nearing our target range and available liquidity of $519 million, we remain positioned to actively engage potential acquisition candidates from within our robust pipeline and serve our customers at the highest level. Demand in our end markets continues to hinge upon consumer confidence and interest rate relief, and our businesses and leaders will maintain our strong operating discipline and financial foundation and use this time to continue developing innovative products and solutions for our customers that will enable value creation for years to come. OEMs and dealers have maintained tremendous discipline with regards to inventory management, which is paramount to the long-term health of the end markets we serve. Our team will continue to focus on what we can control and managing our business and cost structure, as we remain nimble with an eye on driving long-term profitable organic growth, free cash flow, and shareholder value.”

Conference Call Webcast

Patrick Industries will host an online webcast of its second quarter 2024 earnings conference call that can be accessed on the Company’s website, www.patrickind.com, under “For Investors,” on Thursday, August 1, 2024 at 10:00 a.m. Eastern Time. In addition, a supplemental earnings presentation can be accessed on the Company’s website, www.patrickind.com under “For Investors.”

“We believe Patrick’s profitable growth prospects and earnings power remain substantial and expect continued market share gains and strategic acquisitions to enhance our performance when our end markets recover,” continued Mr. Nemeth. “Our investments in our business and team and resulting solid financial performance, coupled with our strong balance sheet, have positioned our team to maintain an offensive stance in these volatile markets. With our net leverage ratio nearing our target range and available liquidity of $519 million, we remain positioned to actively engage potential acquisition candidates from within our robust pipeline and serve our customers at the highest level. Demand in our end markets continues to hinge upon consumer confidence and interest rate relief, and our businesses and leaders will maintain our strong operating discipline and financial foundation and use this time to continue developing innovative products and solutions for our customers that will enable value creation for years to come. OEMs and dealers have maintained tremendous discipline with regards to inventory management, which is paramount to the long-term health of the end markets we serve. Our team will continue to focus on what we can control and managing our business and cost structure, as we remain nimble with an eye on driving long-term profitable organic growth, free cash flow, and shareholder value.”

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