Camping World (CWH) recently announced it was delaying its 10-K as it sorts through certain accounting issues:

Camping World Holdings, Inc. (NYSE:CWH) (the “Company,”) today announced that has filed a Form 12b-25 with the U.S. Securities and Exchange Commission providing the Company a 15-day extension to file its Annual Report on Form 10-K …

The Company identified the necessity to adjust the manner in which reserves related to the cancelation provisions of certain finance and insurance related offerings are calculated. The Company is evaluating the materiality of this adjustment both qualitatively and quantitatively in accordance with Staff Accounting Bulletin (“SAB”) No. 99, Materiality, and SAB No. 108 and expects the determination of the effect of the adjustments to the previously issued financial statements as of and for the years ended December 31, 2017 and 2016 to be immaterial, and the Company expects to make immaterial adjustments to the previous period financial statements in its Form 10-K.

CWH is down 65% Y/Y. The delay in its 10-K filing sounds foreboding.

It Could Undermine Confidence In Camping World’s Financial Reports

Public financial statements like a 10-K or 10-Q are designed to paint a fair picture of a company’s financial conditions based on generally accepted accounting principals (“GAAP”). Investors rely on these financial statements to help understand earnings, cash flow, revenue, expenses, assets, liabilities and a company’s equity position. Investors also look to Wall Street research and their own due diligence efforts to help understand publicly-traded companies’ current and future business prospects. Read more:

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