Winnebago Industries (WGO) 25 Mar 202020 Q2 Earnings call transcript

Ladies and gentlemen, thank you for standing by, and welcome to the Q2 2020 Winnebago Industries Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions]

I would now like to hand the conference over to your speaker for today, Steve Stuber, Director of Financial Planning, Analysis and Investor Relations.

begin. may You

President and us operator, results. everyone. you and Michael Thank joined Bryan Officer Thank Vice Hughes, to good discuss joining President Happe, by today today the Financial earnings Chief our for Executive on and Officer. you, Chief call morning, and second I'm quarter

with of results later broadcast be available will issued being is website today. call to earlier call news on our our quarter at this our the website our investor.wgo.net and posted This morning. live and was The release a second replay website on

are you Before our call filings, statements. certain a number uncertain beyond of we materially Company's of forward-looking control start, of its forward-looking to read. many factors I'd cause These like encourage and are Industries The Winnebago risks from securities made to the operations factors, conference that SEC differ remind Company which today's actual under which involve in be you results considered that I are statements could you statements to during these a and inherently may statements regarding and number laws. cautions identified

could difficulty, hope seamlessly in the all like Before we call conducting that over, encountered challenges other while indulge us we call be to that the listening as into as executed we technical I connectivity remotely run I'd to is usual, any are we and proceed. ask turn call the mention may distractions we should or

and With turn call Mike? CEO, that, the President to Michael over would Happe. I our to now like

especially Industries that challenging your we that many realized good interest appropriately directions, appreciate morning. morning to and these us valuable your Thank in diverted on times being everyone call. and Winnebago this with spending you, We in today's time and Steve, attention sincerely is during

steadfast future, X,XXX company our quarter, the our and the a reality. employees of work, hard vision of details session commitment the flexibility, about Industries of will approximately a engaging am into sure what lifestyle and want get outdoor we to making Winnebago I be an I question-and-answer Before recognize to premier

Design, as overall Chris-Craft the have businesses All within Every meaningful these as our and our individual been our results our Winnebago, Grand functional employees what you has are their these company, a in individuals Newmar, teams brands critical company. and to to progress enterprise every hear, rightly and of future about way one in themselves and contributed will to the is for well hold about families. concerned the of

is as within team. to Industries navigate will we most leadership future to uncertainty Winnebago that we and that recognize health and while priority the and can fairness to they provide work them a top as transparency safety their to real, our hold importantly, team, We Thanks do we entire continue a we everything organization. again will But forward.

I morning balance would doing this start overview coronavirus is brief a perspective and providing done Winnebago overview pandemic. by and unpredictable the like our XXXX. relative our will quarter an the fiscal on then to what I provide results our of second of year has of discussion Industries to

more call before balance offer the session. I then will QX will Financial sheet. with of current over turn will to to I Bryan Chief closing who our Hughes, Q&A the detail strength that, Following provide our some return and comments a call the Officer, financials on concluding

comprehensive Winnebago as process months keenly eventually our Industries, risk to up ago. we many the network. led situation. other been have ago, company around big the small response impacting Almost Asia-Pacific was much our virus company being a chain management crisis weeks to in seriously our initial industry mitigation a like COVID-XX monitor on this began possible region, every supply and on or impact to pandemic. turning activity the to That set two Now rapidly the at We focused evolving world

There leaders employee working senior focused company. major led around groups is team, to These by the reporting a health me center it, five are been includes from on and least which at supply financial work and command work streams and best strength. demand ensure chain market process positively has team and cross-functional information enterprise allowed operational the a defined and across delivery, quickly. shared that flows This stability, to are practices and that wellness, have

broader regular forms electronic have around communication this crisis employees We to accessible groups process. management of

meetings. have for We Board process disruption throughout put QX and also the quarter, the regular now possible as fiscal journey updates, difficult best crisis calls management our of formal of also our Directors including been has prepared us believe minimized to providing second We in special outside but ahead QX. be significant this position possible have board as in

of proud the March item. week This Chris-Craft XX, This manufacturing force this we we campuses. front Winnebago, difference. Grand we extremely expect made suspension through most this operations. temporarily risk Black begin lines made on Monday, a which engaged our of XX. of be phased task the real includes tough, as Newmar, to week, am I to a all have They and next teams this process Unfortunately, decision suspend across Design, but necessary Swan to last past formally April activities production will of throughout project full and the

our necessitated our weeks. combination demand assess continue customers next families, over together end from a quick and in for so the appropriate This reasons their past second, that felt decision products first, the was can We significant and pause and we dealers drivers: to and of production both rooted steps. employees of the the in change in health several

the directives, warranty administration, customers, for state-mandated remote stay-at-home with However, our shelter-in-place retail and including support and care, technical perform channel remain parts and company open end by for along will activities fulfillment. our dealers allowed as essential any or

to next by two employees continue pay the by this support the will We and suspension production also base temporary benefits weeks. for affected providing

close Our teams our the contact to in business. monitor to assess how continues leadership coronavirus dealers with their and also are pandemic impact

to service essential RV such for business engage is consumers boat retail a open available in in at whatever minimum and as drive continue and marine activities, or RV their area. Most some but dealers are repair,

stay will follow closely the we management continue market disciplined as any in company we our disruption. the to ahead Finally, significant to of be financial of

As we our team the in of business we evolve, remain sheet, keeping balance support our as and impact safe to COVID-XX our dealer to and our are confident continues and the of committed strength partners consumers.

Prior to indicate evolving we that trends have been RV have the conditions seen this improvement. situation, showing of Industry signs the

operational of the having diverse realizing and across relentless on efficiency We a focus organization. improving are the benefits portfolio

going Industries over the is whatever outperforming term. track near-term market Winnebago While for uncertain to record its broader RV the longer is extend of we maybe recent forward, everyone position a great believe in the

results pleased are half strong our during the to of QX. turning of results XXXX. we Overall, Now fiscal with first the

first team lifestyle on our quarter we Our tremendous in solutions. has progress momentum towards from as and our build of hard the have made leader enhancing outdoor our goal worked to the position

approximately Company fiscal the quarter second revenues of XX% up were XXXX. for

a consolidated broader Excluding from performance. contribution full year of revenues quarter ahead XX% of approximately grew the Newmar, prior over industry well the

period results organic is January, trailing we quarter, the including year. second a last organically an of posted share with X.X North percentage on consolidated three-month that RV XX.X% at grew revenues quarter, market same basis a last healthy American our now through Consistent over the the such increase points pace in

with so in the pleased expect the to do ability are our to outperform and coming we RV continue quarters. market We will

very cash Year-to-date a up topline liquidity continues cash $XXX.X from was allowing businesses, deliver what results a is result challenging flow. to care with the strong strong invest to and in consistent operating ability now us and flow in XXX.X% for adequate coronavirus. our Our to impact employees, our operating million, maintain the environment

has products, more the segments Reflection, allowed Design quarter flagship for demand industry year brand the the redesigned again Grand are segment, prior overall Transcend recently shipments Towable the and retail the robust were XX.X% to outpace Design for revenues Now strength Imagine let's in and period, unit Towable detail. us popularity over of terms models. Grand both turn in by In to driven we up the seeing growth. including of primarily of The several and consumer products the

at towards for costs quarter XX.X%, decreased year demand Design more for the campuses, a the trailers. retail trailers. for travel Adjusted increased product backlog by capacity in travel Towables EBITDA largely points, the prior Winnebago reflecting and XXX increased in reflecting shift Grand versus basis units mix startup Towable both margins and

Towables multi-branded conditions. of be to proven has portfolio and Our resilient market share regardless capable gaining of

uncertainty creates pandemic the business global consumer dynamics, confident in over near-term the industry are we to ability regarding share the long-term. While and and grow our gain

been the combined core with the impressive it appeal balanced consumers. Grand by momentum the ongoing this year Importantly, lineup, of underscoring as especially of Design launches, new has the RV Winnebago Towables and model product strong brands are we growth both seeing is

products, the Fifth Travel Grand model the introducing We refreshes with Imagine and along Winnebago new Reflection Design's Wheel. have and Towables busy Voyage Trailer been Hike

during of The those year's season. this retail evident excitement show around all was products

of the of coronavirus season across While such some shows. recent as the bulk behind positive us, and our recently, onset events been these retail country show implications is the the have is large the gatherings considering a which on largely canceled

us long-term XXX our consumers by further Collectively, our Industries in in businesses outlook. of products have all the gives of positive confidence XXXX, overwhelmingly and around Winnebago dealers shows over attended and reception our

Our consolidated show multiple digits performance double entire retail up for company was spring. the this

the Motorhome to now Turning segment.

We this premium business reestablishing for made a top priority. position a leadership have

of resonating the RVs designs with brand ultra-premium in Newmar's market. refreshed are to to consumers. portfolio now have and addition high-quality We Motorhome of well is motorized our allowing high-end lineup compete the effectively with more innovative us And enhancements our that

The planned. has The adding our respected by brand. progressing is premium process acquisition and of Newmar underway a well Motorhome as segment galvanized highly integration

and from our to comes to to team business of of the committed part a approach are ensure support broader integration, Industries benefit we Winnebago organization. still part autonomy being the that the able while the being Newmar retains As to with the operate synergies working

year Second Class XX.X% contribution Newmar a quarter sales. segment by quarter and Winnebago-branded period, strong of up were from the driven prior Motorhome B over full revenues

was organic Newmar, the Excluding over segment growth last year. revenue XX.X% in

a Winnebago-branded largely from business and a Adjusted EBITDA margins basis Newmar. strong quarter points the due quarter, increased X.X% to quarter from to in contribution full the XXX

from increased due and XX.X% year prior of continued demand. B the the Our Motorhome retail in to addition strength backlog Newmar Class the in Winnebago-branded units

including from Newmar. coronavirus material are to and before build strength experience this motorized throughout XXXX, our best at talented We've strides fiscal year practices financial made towards eager and improving outbreak, of the colleagues the we our momentum leveraging on business

Finally, I'll Marine on touch business. our

of with four and Second expand dealer as network quarter the for Chris-Craft Winnebago iconic the our our continued well. continue the results as their launch line are product the an GT quality platform important in remains strengthening with line, portfolio, solid making business to brands of on were expectations They Chris-Craft in series. great for extended vitality their They and the progress especially relationships of of and one the Industries.

the to for premium aspire represents marine continue the Chris-Craft the learn company. it opportunities to of our type manufacturer about and Chris-Craft the through and we team holds we the be future market in

to specific to their out room exciting that In product intent note had would a outlined our business to necessary to capacity previous within calls, we continue this Chris-Craft. plan. expansion build One them the multigenerational development project provide initiate

the our end markets. this We concerning expansion decision due have reasons time at the the to uncertainty obvious capacity pause within this to of made plan demand

health project. We continue reignite the future monitor confidence when this deciding and within of the the will partners channel marine in of market the Chris-Craft our to to

overview, our I XXXX over Officer, in financials to second to quarter Bryan the Financial call Hughes, detail. fiscal review that more our now Bryan? With turn will Chief

everyone. morning, good and Mike, Thanks

increase for Motorhome a full our Second quarter from contribution XXXX revenues and XX.X% million segments. strong driven Newmar from by period, compared and of consolidated both Towable an million, growth fiscal quarter $XXX.X to were the organic of $XXX.X

organic Grand XX.X% $XX.X of and Newmar, margin As primarily related XXX mix Mike due a Newmar new quarter, in basis full step associated fiscal Winnebago-branded up RV XXXX driven accounting impact excluding growth same topline points Design a the to quarter increase profit Gross acquisition, was compared costs Gross period to production million versus the in an startup facilities by for our the profit last change of mentioned period. both earlier, campuses. of we $XX.X and the XX.X% year. purchase saw Newmar, the declined inclusion with at the to of of inventory million,

same compared period step quarter compared quarter the of income the in share income a per of $X.X second Reported $X.XX impacts same XX% was per year. of the Net were second million the million, $XX.X decrease inventory in earnings Newmar-related $X.XX versus Operating up included per last year. of share, to decrease earnings for diluted a period $XX.X of full last income quarter a amortization and Operating was $X.X for million $XX.X million. reported of share of million diluted the XXXX. to XX%

per we share As reporting also adjusted basis. earnings diluted on an a are reminder,

transparently performance helpful following would aid this transaction. the conveying and be felt Newmar and we As our

and consistent EPS our performance provided adjusted release. fiscal XXXX such have As an QX, in we with measure press

per in the portion the $X.XX and an adjustments quarter, in interest earnings current $X.X $X.XX X.X% $X.XX step million prior share In non-cash the were of increase after-tax. versus exclude or Adjusted the totaling inventory of diluted the period, per earnings adjusted second expense share of share up per period.

EPS Adjusted quarter prior year for an the $XX.X of disclosed Consolidated we the tax for for out the year. million second quarter, R&D $XX.X increase million to which adjust compared XX.X%. year last was results adjusted last EBITDA credit,

from fiscal Towable the Now segment. Revenues quarter with $XXX.X for XX.X% million, were turning to Starting up XXXX. the second individual the segments.

of QX, we grow the extremely gaining Design share. and RV consistently topline pleased performance its by market broader ability during the the are As continued with to healthier become aggressively Grand to RV

a trailing a Design through three XX%, segment stands ago. retail basis points up year percentage share the months RVs On Grand same Towable period the at January, versus now X.X of

Grand prior travel basis points, up adjusted represented and mix was the X.X% EBITDA from of the by startup XX.X% product the RV XXX the $XX.X trailers. EBITDA facilities in Segment margins year. headwinds driven second form of was costs by for Winnebago-branded decreased Adjusted quarter and more heavily that million, at Design

Motorhome the to now Turning segment.

revenues Our the XX.X% up versus for million year. were last Motorhome $XXX.X quarter,

primarily Class during line-up, share and both Excluding including Newmar, brands. Revel, the revenues B growth market the our quarter, to in and XX.X% gains Travato second grew due

the and second Winnebago EBITDA strong Adjusted adjusted mix the margin EBITDA by Motorhome of up profitability of in mix about the addition XXX.X% improvements quarter, and Segment benefit the of legacy by the Newmar. full quarter $XX.X million year-over-year operating Newmar Winnebago-branded for was and fewer the allowances and XXX driven business primarily increased a by driven results points, of business. basis solid

our balance to sheet. Turning

of end million note had and $XX.X the convertible This company issuance of As of million. debt of million. $XXX.X the million. $XXX.X $XX.X Working was outstanding of of capital the second is net debt quarter, discount costs

for XXXX, Our to in business. and the million X.Xx. changes in of operations by was operating adjusted flow working $XXX.X current EBITDA the was from over well as favorable fiscal same months increase period fiscal Cash debt $XX.X capital performance good net an six Newmar driven the ratio from million of XXXX, as contributions

million we but future coming very to second uncertain income was and tax compared fiscal currently the The are the the environment ample Lastly, considering the hand liquidity second cash all important at in, effective months. same for XX.X% we of quarter on the rate the face end providing for quarter the was will in period XX.X% XXXX. for $XXX.X in weeks

the last prior year rate quarter and second higher rate due tax XXXX is versus fiscal reduced research to estimates. last true-ups in credits The development claimed is one-time to by year current The year. driven period

rate items. tax tax the consideration before current of tax code and be any effective approximately our annual expect discrete to under We XX%

per was approved stockholders XX, Directors share Board marked of XX, XXXX. to the transaction the on the payable compared $X.XX quarter approximately March dividend first of part our last XXXX, million record Also close and of dilutive that at full quarterly XXXX of outstanding same a On of share this earnings shares the April note issued Newmar business period the to were that the the cash April impact on X as to per XX, year common of time $X.XX.

of to coronavirus healthy several diligently have the impact over ensure the performance, to go-forward to model to in turn a all of which the scenarios to of financial the serve worked that I our for the liquidity. I back pandemic, and will resulting economic planning want coronavirus we emphasize of Mike, level Before impacts we light action call our maintain

and approximately We that during that and $XXX March. cash have million start weeks facility, ABL was of the to our from access at credit untapped. a a first million as grown $XXX completely second in from time point of the that the mentioned strength nicely point quarter that recall has remains we that X.X place balance this Also, of at end

our level of of over our to the We and allow believe us ABL to period. shutdown the duration meet position cash commitments a liquidity robust our provide reasonable

to We are develop our our Winnebago stakeholders risk, plans, and and working with viability across various costs, reduce keep long-term all secure. mitigate Industries and contingency employees safe above our

call now And will back the Mike That review our concludes with financials. provide of to to turn comments. quarterly my some I Mike? closing that,

relates a our going than like dynamic our it bit would with more future managing Industries, Thanks is morning our ball conclude this several Bryan. cyclical perhaps. Winnebago I to forward. as to on always industries like company crystal views the topics comments in consumer other a When

will you are to our advise of out to be how to We the that our preparation now about best thinking marketplace. play for we as do scenarios appears and operations in could a variety what

status shutdown of We referenced company. of a our not have a the suspension as production, appropriately

We are and in and frequently. status monitor more if challenges very carefully not the of the will market continue crisis financial every day, to health every carefully accompanied the the hour,

Strategically, cultural Industries crisis enters what Winnebago financial we have focus position dimensions. our a are. business solid across sharp a on priorities strategic, this First, in and

of brands assembled momentum have significant all various broad in their of a We each businesses. that parts have stable of to

share and results are with financial our We are and of and our end strengthening proof market credibility consumers dealers, gains that. suppliers,

do perfect some the in very at the of operations competitive no to the have see our any confident will reason believe about in from portfolio time of businesses, resume our we future. of in to in presence that feel the We we change are terms market. strength normal We but far when growing ability this

of within team talented been. in has dedicated ever enterprise. operations, our it whole leadership collected as culture Combined the a our is we shape the have with the talent of now and developed across Culturally, functions and group and our a as good

experienced intimate strong from to in leaders knowledge times. the both pull have We and bad who good Marine have RV of the industries, and levers

who complemented outside industries those careers talent also We and normalcy adversity. have with in of have assets from sharp succeeded times their during

competitive decisions amongst collaborative a and team market, protect share To is practices the present engaged out but of other ride than team and position moment. whole so leadership crisis, and financial the to the highly operating together of our in stronger separate. make is about period each how smart The knowledge at the

we on have to ride a books, leverage in have material the while we Financially, of structured considered the manner disruption. also periods leverage out

have line been available year see of graduated could We fortunate combined our to very significantly fiscal a of access one balance to and cash during for. credit, provide climb scenarios during our liquidity plan with variety this

We put humble we partners all many on of to model diligent, will work and paranoid could and additional scenarios remain as financial this balance sheet. our possible with that stress position our manage

this ensure on of We of are the with financial with strategic most them alignment Board Directors decisions. strength of very external our and closely working important and dimension will partners on

strongly economic and outdoors they great the in fully whatever will real disruption will there America the the of outlast lies lasting need around is months. us, maybe. We disruption weeks of be manage happening those understand through period and we whatever now of I world, whether North appeal or to that consequences could believe the and that of ahead

engaged long-term. the consumer the both North will activities stay recreation outdoor American and with However, the short-term that safely we feel in

future they their become might a the in to argument outdoor some spend than today. receive a boost the want will as customers In future distancing end make are they may businesses when material more practice how time social norm that discretionary of reevaluate fact,

it. boating, Camping, name biking, hiking, fishing, you

to need create future. in in for those the those activities they of activities. safely and and more and the future spades, tremendous products in in invest friends are extraordinary the in return They will will families experiences outdoors and memories All consumers the for

of to to diligently shutdown of to summer, parts different projecting hopeful end and in Winnebago the what a our throughout weeks of we work the return in and this and we provide prepare services possible essential During not extended will us. From to this also scenarios spring dealers to for operations normal at plan continue time Industries, customers, formally time. is will which we front are and for a pause many at

happening there worst. we is today, be financial hope best, for modeling However, regardless, will plan the prepared the extensive for

managed drive are to work presently manner. doing teams prepare spending those variable business and from of a costs including many expenses, also comprehensive capital a executive in allocation the Many of professional costs actively business This decisions, indirect more personnel, salary are corporate today. expenses and to needed our many, Our each of list further and compensation, hourly and includes corporate function, and SG&A, direct areas. within being

for specific next and the year have in certainly actions, external the policy opportunity and won't will unpredictability including earnings fiscal critical our profits not directives, guidance process remaining of so legislative be provided be today traditionally provided developments We revenue understand call interaction medical to more. us XX government XXXX, the of our will given within future. variety social a for much days magnitude action, start through and better of clarity decisions, and fiscal The

monthly times. view these and thoughts truly from weekly have daily. changed forward-looking to quarterly These are and Our not unprecedented if for fiscally

action communities help communities Winnebago country COVID-XX we across the proud our in I numerous and Industries recent healthcare took we immediate the in. time. several donations can organizations Lastly, have am various of in how during providers to are the and a discussions we financial directed provide presence foundation engaged difficult to our this

modified addition, with organizations in current or multiple helpful can of medical used from our this mobile a how solutions standpoint products exploratory we possibility as during crisis. In are also the conversations be on

business products of years. throughout various entities mobile the vehicles We to our have especially providing a history in deep specialty medical

presence the pursuing mask sewing facilities medical Level are to using for in many medical of industrial by procedural manufacture X have use opportunity our our the in. we We extensive organizations across also capabilities and states local communities

days confirm in one possibility. worked but opportunities on, vehicle to given that exploring be we here a that final This exploration topic we direction cannot anticipate making ahead, medical further indeed is to the We actively of not medical currently. material the the mask out at the fast financially either be do company are details mobile and evolving or

Thank on external quite change time morning. this all a you, to variables so again, for of The us. is your many challenge speed of

focused terms items forward; and the in quarter how agility. urgency, am fiscal performance of that preparation, of in is have for three of on year generally upon leaned they navigating the and I our now into proud second teams adversity are We XXXX their us.

We will now turn Thank the call back begin over to Q&A the the operator session. and you.

question [Operator from of Instructions] the Our Craig first with line Kennison comes Baird.

Your is open. line

thank and morning, question Bryan, you. Good for you.

You that some scenarios mentioned for. you're planning

a you with just look liquidity drawing that cash simply of scenarios, If million some on at have ABL flow does And as in more case? dire available, $XXX and look? then you that the how follow-up, considered

guidance, Craig. give as know. you Thanks, Yes. We forward don't

extent profitability, duration key As at at about can metrics levers we're scenarios we you we et the cash we Mike of looking our that comments. those suggested all and in appreciate, other But looking cetera. further position I many we're looking comment and have, the that well as many of commented, evaluating various that levers I the are as that cases his imagine at or the on. can of pull. we're Ultimately, the scenarios. as won't EBITDA, things focusing

good structured debt, our some where of certainly position was our to with back about, it convertible And executed is recent how back we've comes unsecured we look X, at which we one today, Craig. if a bond feel good we're to Newmar very We where right we conservatism in feel landing deal that you did It about that the X.X. mind, around example. deal with ratio very leverage the

here I the done well sitting in positioned past that we've things think So us today.

to in it's impacts time advantageous We're conversations that not are But are at certainly mindful situation, evaluated over as at our to financing coronavirus to credit of do additional here period. this to continue feel on and our as and feel that ABL, taking We've banking time against with action it that that As that. position cost we their incur seen it'd other facilities. evaluate We it's time. the for partners. the us draw fluid that companies relates not a as stage this of very are prudent progresses the we'll that be

doing your that you be very about what health you period Bryan. then them from what mentioned cash credit a you. be to tough during for Could partners could for Mike, to of which important support dealers dealers, any critical Thanks flow the And and is a talk might standpoint?

Can clarify What Thank partners of you, reference? Craig. again? you types did you that

I'm any sort support the your banks, this dealers that network wondering outbreak? any whether in providing of your they're any partners in partners RV Industry, can credit survive to particular, whether financial the dealer of such the

institutions imagine, answer Hughes, for Yes. several in cyclical, deep needed within you you the the compliment those as a our invite down you of the and/or RV experience Bryan have we constant Thank provide from here. And clarification there. financial would And past. that dealers. other I to these Craig, are the in conversations as especially entities especially with can to mechanisms business periods floorplan Marine

finance monitoring within is are time you make being that to further and for of a but moves institutions the state there those I financial conversations And period tell we of appropriate I the would their about actively. health could and provide there that collective of our for between the inventory dealers dealers of support they thorough some conversations very dealers. a And possible can't are had businesses. They are companies the about them, can speak encouraged that the

and some there into happening. But thought we of out get those to that any least discussions encouraged those respect are that organizations. I won't specifics of at process there is

and can this a in of status. but from not quick or evaluate own relatively they to perspective you dealers concerns well. financial two a the We has they're regularly in of continue that daily last our in their retail timeframe as crisis imagine, continuing basis, dealers the to, the upon their And and of health as traffic all for check have velocity come if also in on velocities, weeks are any with our resale health them terms just seeing,

Bryan, would my else anything add you response? to

couple a Mike. comments, just Yes, of

understands audience that I think nicely. the appreciates the on it as dealers here lot to position balance a has the come the call inventory very levels of their into of relates and and

And so healthier here we the as with balances. entered this dealer Swan relates network Black much coronavirus inventory with Event a to it a

the the for the payments that with yes. help there as suspension banking been XX last question partners even The and in some dealer financing about on of hours to as in interest forward the have here. well come some network two have Recently, to to announcements fact, in floorplan longer. cases payments answer Specific of months, is curtailment

address So publicly banking forward suspect be continue situation to likewise here. to time. help that over already those to that have a And in situation will will I network that evaluate the dealer fluid the be will partners step partners those that,

And wishes. Thanks. best

Thank you.

next question C.L. Stember from comes of Scott the Our with line King.

Your line is open.

and taking Good well morning. questions well. as for doing thanks my Hope everybody is

morning, Good Scott.

Hey. Good morning, Scott.

Yes.

On different side Craig’s you're the scenarios about flip that question of planning for.

tap over period side And over other less but give point, this the ABL. talk profitability a point, you about When about under don’t about planning, lack can that three in speaking just next thereof to again, you guidance you three any I that, not you the we scenario time? On to maybe the just that of talking weeks? talked or scenario, about are this to know want assuming that also generally guys four at draconian at you four wanting are we're of into weeks, it, to assuming, at talk about looking

might now, Scott, we'll around the where as first decisions our the things out facilities. impact situation Yes, how evaluate right speak we and as continuously see playing fluid I'll to credit ABL. that our is

remain there. ended we So open very

current Craig’s response position increasing with for of mentioned extra would our cost be incur our not us I to question, that earlier prudent is to debt. associated that As levels in it

And the decision so day-to-day and that to we’ll for feel we we're change. that's things right our keep there, open now, certainly, evaluate from options but may going as

that's ideal. So I guess,

have result period, you As will expect as and will operations situation the over relates profitability, to wholesales. our would course, a we we where effectively limited decision that look, that our it this suspend of to we two, three in a made as have week to

to it's to our continue will will dealers out so safe goods to we open The continue those some. We supply and ship finished will as to do of have dealers. remain

suspension our or dramatically would stream rate you our we look flow reduce like, view that we to, of don't And at. that. of impacted looks obviously, to And cash operations. that burn that that, give expect outflow period would cash likewise us Mike to cash we're what evaluate a alluded all then And looking appropriate ways forward-looking as revenue as during be the and costs. during at certainly but burn But minimize evaluating

So that's address would Scott. that to I question, what say

Newmar you're a at basis, in position? does end when in so, looking on about it. And even Fair do scenario. what case I what real-time in where to guess, talk a And be, inventories? base clear the enough. the of up, Thank you just Maybe like you. this thing the assuming guys expect looks then Got front, acquisition in the with were at inventory excellent shape, And it quarter. I know, you of

to my retail orders, such backlog. that. speak I'll a of Scott, Mike. morning, This is view screen things business-by-business computer of as this me have I front in On Yes.

We are not terms of was started We even mix quantity, as calendar this basis. in felt that our in but we of the aging. good and inventory and on feel tracking dice appropriately. year total those we can that a also in fortunate just of We position slice daily terms that

we'd be. business like like as not it And spots while we other have to current dealer RV being in any of terms always inventory Marine or as

teams work as of to calendar that ramps have on retail the to up. Our continued the year this beginning throughout spring continue

feel entered on. most of that continue and we we is to aged as we inventory will that in this There monitor appropriate. some So pockets inventory are business work dealer of the our crisis,

And if whatever as both good a have. forward retail retail so part as for were the also to of what what we that shipments position the time. terms continues foundation, market as you like we period to will as in depend look is well of when in at have the we out quality back, will going the of And dealers that happening suspension know, that come future extended to in demand are is that quantity, our inventory hope of dealer the but improve time, an

down. to some of monitor we all ship week we basis again, and winding as things products on a So continue those daily are operations this our

been flow be for putting dealers of appetite As to sit of did period a market decision part time. not Bryan into begin retail in would helpful comments, more that financially terms suspend want or in low the that further product put was of cash just burden that's to a there But our his on generation. with essentially we temporarily indicated our operations to

product was our was for interest we decision keep think the time. dealers it So as us of a but of to hopefully at just just right shipping it out business, not this did made to the well not also because best the decision

are be in that demand good us our And available near hopeful pending will future. inventory the whatever that to dealer retail shape, that again, is is that will we We feel time. in at resume but

this. just just it. question, talk And last maybe Got could Mike, about you

you of hearing certain earlier to I Campgrounds. a down you us open-air if you of about types when what the states of we've potentially the were guess and I X/XX. hit, at to after shutting bookings, some just I industry into you Campground this velocity just, heard? Could increased are But heard you've recreation saw what and what discussed hearing As pick least about your since talk COVID virus week, are sense related guess, at give last about that of outdoor benefit, could we the the back belief heading guess, up

And KOA there. by she nice CEO There of Yes. article we're good we again, have directly O'Rourke, Absolutely, Toby offered a Scott. on her what's here impact the standpoint. was really in some outdoor the last views sources probably business, not from recently, extensive literally, in Campground American where the the happening. within started materiality Again, North comments to areas, this of a arguably terms three weeks but

X within argue also the retail last also to you starting would began two the unfolded the probably, March, X the light to a was And consumers they were of hear reasons. quickly the from over potentially of to slow organizations as started little X camping has weeks, to we that public the traffic our currently week from all different of businesses. dealers some March know cancellations some was their to that or that and that access impact March started private when campgrounds so that see hear weekend beginning we the to Monday, during for but to the dealers, of this I change dramatically bit and

the have been state are manage accessible public can, The the tighten on some on also they challenging but begin only borders as to and have Canadians, example, to if private closer you move It associations or the best may stay-at-home not, to the those, border, across back see or did campgrounds of to impact either up, making As as an you example, federal directives Canadian the the when intermittently depending cross our an campgrounds. not to industry country's doing an seen campgrounds, themselves shelter-in-place well. began but position been and a have has the country home level. it marinas

and consumers will social people strength appropriately and end in emotional ways, strong real as remains the appeal spent time strengthened as because safely in My future, feel of for comments the practices. about to some that we maybe of distancing doing genuinely the the ever and quarantine outdoors and returning

couch my ours, spend buy some an crisis in the That appetite will effect economic to the and to that way through time products of to we're consumers comments like implications well. going outdoor. recognized boats, RVs that be I in we do also on there have as will

the So will strength we'll pluses we but we the believe see industries the believe appropriate do time to boating in and return minuses, and at RV future.

so Got much. it. Thanks

Thank you.

O'Hara Our from line Steve next of with the question comes Sidoti.

Your line is open.

Hello.

get comes producing faster change can and knows kind hear you you talking resume nobody quickly to back terms potential I could bad. to restarting just if I and in comments, where terms of at you of and to about, currently I operations, for first, them production of about relatively the guess, Yes, just your force your a the units up change you get XQ that kind kind competitor Mike, mean does good pretty all of demand move But back have Sorry curious, guess it obviously I we're of way, talk mean, be and in obviously for me? duration outline plan challenging and the of just this, plan if of speed about about obviously I back current under talk quickly or guess kind that decides quickly, could the that. your do Can things on XQ how if things you hand? you

for the your thanks morning, and questions. good Steve, Yes. comments

with Let me start the latter.

in there of the nature, which Sunday, can we we to the multi-week manufacturing which the within outbreak viewed did in comfortable We be significant reality in under are we resuming with you the the would is imagine, anticipated conditions be of currently stay-at-home, suspended as and April weekend over best I Sunday. XX, discussing, Easter being suspension was as we being believe pandemic operations terms this future. through Because felt will it announce last shelter-in-place that directives

on primarily two and be one will XX, hopeful decision little for be a decision out like employees or we allowed resume April that in also operations made our each a further of do the ability fluid and Monday, the safe can that on is while are potentially protocol keep counties we're to will and depending we that CDC we states the organizations presence that what While to that in. suggested environments, One, we of recognize manufacturing factors. here our have healthy by within

sentiment stabilization what a well. will we as also hope of with around that market is conditions to We balance see, which would dealer retail, but also

had among weekend. degree the that the the answer, weekends especially mentioned community in the did this and anxiety of of last rose through in I we slowdown to some a To place my dealer to quickly last their March begin only change they their very or all also the orders us, retail between books. take X in but but not appetite As X in that saw traffic see in cases, meaningful orders of possession new they already materially

the in the moving time on our many very be ordering not I of until market resuming candid products two but that the We will had will we top has this discussions with have reaction of stabilized. seen few dealers to out call cancellations, competitive be one have operations about priorities.

we certainly is keep and be it in do eye that. believe of what will But interest on own will best we of our business. We mindful an the

as has in complexity operations well. that some involved resuming Now

multiple health you're distancing social in As able will monitor we've need the now spaces, to marine operations the OEMs RV resume directives, and supplier of the aware, both states thus operations. seen impacted decision seen a and of in by our especially similar we've being to and some make base, we

inventory what not are operations terms of some of to had as think have excess our suppliers our We in taking any we campuses. alter Many or or suspend of to consuming on prudent doing is own well. their

will So – when supply also our part, by we to with also be work the that that make ability the manufacturing, in timing of influenced to our will base resume decision to peer space companies be the working through get lifestyle the level that and minimally operational just will or Winnebago Industries supply back competitors. a chain outdoor as to sure our I'm in

employees resuming feel carefully the a make product we don't us sure comfortable with So our acceptance the sure regular from are to make and our supply base dealers to control resume basis. of operations and completely. in work on We'll ready need fate our

on issue get was or this issue a be last what arrangements. Can hand? Okay. question know in X/XX if financial there maybe, the back about was you the it guess? last impact the you I And kind total is what maybe way whatever on what during remind to the crisis, then how for just it floorplan guess, agreements repurchase time, think maybe have maybe financing going call any big of if you could terms hand. just to then off know time and of I But Craig's sense don't or was that them, me, I the you and the, during

that I to way what's were a think, going was Thank think financial I good it drawdown you've inventories, time? your what mean, had of then, And I crisis, here. last period but about of But, good assume bloated of into a the think kind you. I kind

then you And to Yes, current those Mike. Steve, take of did Yes, very I And of finance both and to that very that if recessionary just the good floorplan good job. the one, are with obviously, the with periods you management company two that. look dealers folks job I. their Mike inventory managing did a front lots. can of back as prior on stay that referenced. the in But a We well the at

that if was, financial look minimis at even in financial the of you XXXX, And characterize impact, de it XXXX. crisis would as, the I throes what XXXX of and

sure your to that partner even So need do time. it, to through dealers would dealer-by-dealer, characterize same. we'll was, as make question, financial be impact to that or with to it financial But answer moved our minimis. move I de to our that very to statements the specifically, impact the we're We continue do helping we and unit-by-unit manage can the to units what those

Okay. Appreciate Thank much. you the very time.

you. Thank

next Our BMO from of Capital line Gerrick with question Markets. Johnson the comes

open. check you're to on if see is Mr. line Johnson, mute. Your

thank I to unmute there, had Hi, you. sorry.

some expect from be changes you of product, kind would or that products say, be would would I might you there value-oriented still sell we're we you outperform any Mike, demand? the of better rest in think through. of You structure the the Are changes shift you demand when or coming out what thinking So anticipating going what best of emerge you can more industry a demand toward this?

very Again, the morning yet. demand for impact. monitor will Thanks certainly a financing probably, potential not the answer of coming question. a crisis hit quickly. one certainly, is to Gerrick. and and mostly We'll out That's morning, carefully, is retail my where access sure this unfolding this Good I'm Yes. need to fair

significant for While structural an downturns. sorts of and more And of this there I natural it of the of out pandemic less a that. in is may on borne past disaster hypothesize can than customers our economic only some issues terms subsequently is be were in there RV situation, of financial

yet ready to lower I a have Certainly, affected, which a others. to would but to yet. that ready I'm probably be inclination I'm be not would to guess parts as of finalize price more a So stable to less guess on natural line products educated point than we an think have that will that thought our offer see. there is not

Yes, you. makes sense, thank

I If may, Mike, add me to let that. on

will their well, they favor strongest for lots on make space will dealers the is think times brands those that brands, is and choices as lots they one brands. I best their in the do allocate you what Gerrick, typically industry see, thing and will this, like in the they on best

side, of Winnebago in relates that the have space. of serve I think the the to really us on Newmar and momentum will as and Design brands have and we our allocate to that lot Chris-Craft Grand quality in retail decisions where dealers we it well by the

determined. as dealers So would be brands toward Past said, a that customer, at bit will in or suggest to Mike certainly of be well, our times like allocating the of practice favor it's the retail this. a,

as thinking has about So of be there. the another thing an certainly to well. That influence side then on retail things

Okay, liability lastly, net if that out be? great. of of on, buyback bankrupt, And there responsibility could a to go sort business, question go of is what and dealers one inventory

We dealer-by-dealer, Yes. monitor Gerrick. that

– or item-by-item, so in And really. inventory

through there reference. aggressively manage a would time is we can within that period, that so our disclosure you this Q And

in seeing the that next be think XX here. you'll hours I

or question sure can able we realize in prior periods that you reference, earlier Q. You as to through was that our will, disclosures just recessionary you be But of is. as and the I events, reference wanted Steve's we'll do done manage have that that to that. that expect manage we'll one for if make and to total said, in aggressively the exposure though, I what Like though,

Okay. you. it Thank I'll out. check

you. Thank

question SunTrust. next from line the with comes Our Mike Swartz of

Your open. line is

everyone. morning, Good Hey.

this Just quick quarter, Bryan. is for pertains question maybe the on to – it as

were the there or start-up production were next know, quarter. for, a would to margin most in in two? just over terms a inefficiencies looking more the about out In little lot you would had the they gross that of a quarter? pieces. in anticipate you And talk facilities quarter I how of anticipated. lasting that of or environment Towable then I coming Could some of is guess, forward, impact you saw normalized the the than I those moving the inefficiencies if we guess have long

Yes. Thanks Mike. Yes.

that disclosed. margin if of at talk this and points So margins little – to of way, impact step the to basis driven of inventory or that you a the versus back look the our specifically it as year bit accounting total portfolio has is be Think overall that it in by it impact margin really more as erosion we've first about last purchase two-thirds XXX total going mix well the the the acquisition, step-up I'm to Newmar impact.

points, basis should think you of that. as two-thirds driven So by simplistically XXX that about

other impacts costs. impact product impact the quarter we've that of the had then, certainly of mix, out, is an the you as of one-third point in balance The and the referenced, start-up kind the

Our for is experience not historically us. thing this new a –

is had. a pretty stand as Design, last has very quick the been It Grand know, up keep with demand three that pace to a production demand, up. the to we've facilities over you standing years try healthy

that obviously be that, normal will quickly. was happens inefficiencies we overcome and we're recent a it that what that rate I so and but by Now impacted say operating fight the would environment hitting will very question those scenario, most your we in, – really run

likewise we Winnebago within and your Grand of would that inefficiencies and this. some in normalcy again short would to The start-up up expect new pretty accommodate that their facility I new the helps say, how knows Design they team to return also questions. to business product order, a lines assuming here. experience is next those there, address to past overcome do Hopefully The Towables some our stood quarter,

to capital to million that. was investment pull get out discretionary in take relative and your cost appreciate worse? little were wants that flexibility just very that maybe much $XX the could a and mentioned guess called helpful. if your you I I that Yes, of think is the maybe or I in who to Bryan you've in back then around deferring XXXX. terms Mike, of of Chris-Craft million don't things you're to facility more how for CapEx that this some structure, $XX I know but you've And around that

Yes, $XX have if helpful. that add I that's under in you think, can find of first million one, then and capital. my Mike, don't cash the I I take on spent, recollection flow statement. I'll We – think, you the just

facility We've back I we think up Design's that pull that on got of Grand campus. the we'll dramatically. spending have be completed the start pretty able for the to

So that conclusion. spending has pretty much come to a

pushed the on as until have, pause alluded little to, end Mike We the a becomes button expansion that clearer. market Chris-Craft

I we, through this as to And epidemic get our As a that or as we company, think will I manage would on be cash aggressively. flow doing, situation. will pandemic everybody very clampdown suspect CapEx

can you So to understand six the the months expect $XX see over until run million extent the rate down of of come impact of here year-to-date we dramatically coronavirus. economically full here that

of expect you've Okay, share previously last out to that next by a for just of was us give question to recent prior lot but of sense you seen exceed of in the put there's softness the retail XX I some months, a terms Mike. know one helpful. demand how there That's we've you've I in forward, points. going that great. And to for gains then know said XX maybe in XX weeks. market trending uncertainty the market

a you, three are would trends our certainly Mike. is that and drivers macro retail of say Those have drivers our now momentum beginning the momentum Thank a the the on Towables, part Class of B Motorhomes with basis. Grand I portfolio. real retail industry and the consistent outperforming been the Winnebago-branded Design for Yes. to Newmar

You seen of and at last months, the on. three could acceleration where retail an focused argument most the that over-performance we've make that is the we're in

a over-performance inventory be about field very with need worried levels. shipment our less from standpoint diligent we are to because We

We retail are maintaining interested in momentum. that most

XX So last three that over-performance. XX% most point whereas, of XX% has to year last half. closer range range being consistently really would months, over-performance in of for to probably the actually seen a had that terms the we I in retail in probably increased the and the argue to that XX

categories. more RV space they in in that have understand will very at legitimate be power competitors we us Now their everything certain competitive in we and come the to do and

and very keep our their fresh And of we are on take businesses all focused their dealer consumer end care the relationships and so other and continuing the to dealer. strong ways the teams

the hopeful some the will in that continue here that the be, will present. are to we and market. we new that just you, retail in Mike, normal changes pleased future whatever be of I what level potentially given So that are over-performance when can't at emerges tell

Understood. a guys. Thanks lot

Thank you.

of KeyBanc the comes line Our from Andress next Capital with question Brett Markets.

Your is line open.

Hey, good morning.

question FEMA supplying So, Mike, relief. FEMA or dealers contacted as has relates you been I to of the disaster on any? scope Have been, those by RV's conversations of a and guess any it and your if what

Yes. Brett. Good morning,

or but potentially medical shower oftentimes questions testing are mobile place for the around less reach about a uses time. our mobile this be inquire have possibility the primarily products temporary such housing, for are as We or you organizations what healthcare multiple of challenging seeing of to to manufacturers used some a to or cases, in out dealers, purposes, to during professionals rest variety

in in years of less in than involvement as terms say, disasters of natural would they the I such been, Orleans ago. has their aggressive Hurricane FEMA New much of were many scale some Katrina the

So of state are dealers. the the I that inquiries would to most going

of said, industry has officials. been that task government commitment as what engaged are offer the a imagine, industry our in with as and I the would of the Now coronavirus also in being state specifically industry the most an variety direct and force do association with can contact federal with and a to companies we

personally the our conversations local I've I how or could role. level had with a leaders week where products to our state know offered as a last several play people assistance on I've in

are housing than so, and creates maybe natural temporary more state on but conversations FEMA say traditional and less need So for I huge a a a level use local of would active, for and disaster, which happening these cases. broader your variety

much given one Got guess selling And very quick helpful. units what of this percentage actually point, going then just at your everything more it. on? are how dealer Very, that's or one. I base

a number precise Yes, for not we do have that.

minimum there aware, directives been working out shelter-in-place. in each industry that We've with and have dealers services our repair. period, you're states other that such of stay-at-home states NAM, of As try as like National the RV to and or with through of terms of ensure service Association the list to have at Manufacturers, put marine and entities a provide this a are our association, helpful ability to essential those

that But in to are most product reasonable purchase and entities if cases, manner operate. to use be safe a would still that we are in and consumers there advocating a like that product encouraged that those

some exact that in comments open think full the remain form. I term I'm may it's that vary do engagement service most in It our are have our a in to on between use our of – I this the of moment. business businesses, for hopeful number high hundreds my dealers But at across dealers not just right different I an not majority that enterprise offerings. and with limited retail we

Understood. Thank you.

Thank you.

with Our line next question Jordan comes of Jefferies. Mark from the

Your open. line is

question for you, Mike. you and morning for one's This taking my Good here. thank

suppliers, the conversations any raised potential been regarding there your of in some disruption? chain supply for concerns with have So

and morning the thanks question. Good Yes. for

the works well, disruption comments, fortunate pleased that, has prepared the as pleasantly for about I several minimal this last working and have is were chain pleased inside in bones probably to make network. risk several probable surprised but supply had in we materially until of early have months As that, changed the company up no manage very the And we of March, – with my to were chain our we environment the supply due that in the now March. disruptions were part that monitor indicated our and and been That through in of we we good teams team early really weeks.

affected confusion examples. Certainly, should limited their operations such and their time. this the that you Europe that. stay-at-home either and/or network in including suppliers state's some for of our impact chassis the have sub-supply run reasons Europe in plants numerous I'll over seen as We've in which from, Germany. from other they of are or one couple give Italy there countries some that caused least suppliers with affected at is businesses comes because in get suppliers or how we own a some And of key components about countries directives shelter-in-place of and/or those either those have

on ripple a then their automakers week a example suspend the of own effect. Brunswick another ago had little their be you Mercury announcement of engine a That some or some engine and as then And the side, have And here bit would operations. the so others to X availability changes Big lastly have marine to manufacturers the with particularly to and seen make production well.

the resume cases cases, a have the with we're alternatives material we that other operations cases it in seen particular supplier more a the, guess, alternative. challenging are be near some and I the to of future. have increase in reasonable will in managing dramatic event to So In component we and replace we

So we as go forward. to are concerned/focused very continue we that on

So now it is would that chains us imagine as upon with well. dealing supply and I their good companies durable are most across

safe. very Thank my great. for Okay, taking stay and much you question

you. Thank

Northcoast Research. next question Brandon comes Rolle with Our from the line of

line open. is Your

just Good had morning. I two questions.

if inventory you the ending Newmar just under also could for buyback to they dealers could out from your out two, Motorhome how go and versus inventory liability of inventory then, you. compares total were to And quarter? comparability that First, on back last year-over-year? Thank comment you the

me. on think we're Brandon our specifically the for front that inventory, something breakout do in continue don't Newmar. of That's to Newmar to within Yes. just some going of going I Motorhome those that disclose don't have I segment, not reasons. to competitive we're to

to going that I'm a one. pass take on So

As the it disclosed that so to is can from historically has and you the pull XX-Q. relates XX-Q. our been certainly It that within total liability,

number, disclosed response big appreciate, every to it's on that as in no can you earlier as for questions a the mistake I've it, have liability, repurchase some there make out and channel units stated that we the topic. of in total The so is about

XXXX, as to XXXX of in dealers, have, very of very been situations XXXX has recently events through even financial has significant crisis financial and repurchase and obligation de the minimis. managed characterize impact our the that what well, such more that with the those I minimal, We of

our have with you I follow-up to find XX-Q it. other place on offline, where certainly you to can again, any questions specific we need So you there disclosure direct see the if or you that, can us you'll the reference and

Thanks. Okay.

provide to as assistance I the Like this going on to action which forward, and may Mike. movement would may monitoring this through or the Capitol week Brandon, vibrant the they – is to Americans, answer of need we employees. just their Bryan’s the can to legislative keep complement in small are and well alive Hill that medium their they addition businesses, way. access whatever in and businesses do most health liquidity or of this

is we some applicable to currently that's monitor of done Industries. will the work less so probably that, And being Winnebago

elements the to I the here bill terms that's interested There relevant will that to businesses uncertainty in and own need decisions that be the time make assistance of be that get am Phase small so our III to this could company. in offer of can certainly the they during it most which include and/or our would suppliers, medium-sized of forward. support some of passed could But many dealers bill go right they

that the see the for that progress later the on are to this further be continues and I week. that, offer now other would would approval in hopeful house are we morning that to as thing pleased So

you. Thank great. Okay,

Thank you.

Whiston of comes David from the Our next line question with Morningstar.

Your line open. is

question Daimler I to that you guys. in chain a bit specific both morning. wanted because chassis, good and Thanks, more go to believe and I get on supply back supply particular Ford

that if if a you guys of question have you do few do, weeks stock reopen already in you So is, storm? well to before they least my know at chassis weather

our available to the Yes, operations. of on we case supply have those chain both This allow in to are specific suppliers, an morning. Mike. do in amount and/or to restart the chassis us of us good that of is David, properties

we on our winding So this not not most down wind – did businesses. supplies down a covered are week or for operations with

RV in one retail around manufacturers and Remember industry not continue certain take is asked, holidays and/or or variation some seasonality in the generally weeks two chain for the challenges situation OEMs navigate by relevant unusual question to those that obviously What to supply through. about demand. to the it ones like the down of in ramped you shipment in is unique we is or up this decisions event that aren't

would in we and certain yes, of there the inbound again. a and But chassis that chassis time to for of where certain that as businesses need But for our our you brands restart new do both frames business chain models expect, have allow products. also us be motorized the do to chassis a of would supply would would future flow get going Towable

$XX.X Thanks, payout is is take And the – then that's whoever million. it, this wants but probably helpful. about annual the on dividend, for to

from clients just safe. Given can right your me, to is But to think any going now the that month I safe give number to question position least? like that assurances would the one I be, is your is cash safe? Is looks dividend it next pretty the two over dividend at or get is there you it investors

comment and Yes, follow-up. then can you first that Mike, I'll on

how $X.XX that later regular when on to XX that's we've our the we Board met shutdown all by share, and we continue of the April. obviously the analyze on here in in moved things declaring duration per accordingly to and really, that It's talked out a press based react on capital saw chain the release, such things March suspension or operations demand be believe based marketplace you are dividend the David, allocation supply of fluid and the impacts, playing the call, standpoint a As situation in what on and our about period that we'll payable from assembly forward this impacts.

our and employees safety the the foremost that, First of and is impact that has.

continue per all things the factors. X.XX fluid fully requirements, from look our to B, evaluating are evaluate it's Loan payments. payments, at paydowns as cash those we to, that principal required such obviously And cash So light we'll dividends which Term interest in a are interest the all We'll then obligated situation. of quarter, on the

expect doing. shareholders all as us think to would I so, be And

that that we're outflow at ourselves just find to going commitments to in. cash future. evaluate to stage the we environment no So We'll what as this given the do continue in

in But from That's release. press in early helpful. it's lot know since dealers? all backlog the Okay. March, And pretty I had a looked started you the mass good have of cancellations

take Yes, will that. David, this Mike. is I

by right literally from have that and on before, As that my up business the I the in dealers are I coming computer now screen backlog. shows referenced orders

retail in retail suspension. so meaningful in saw sentiment to make actual us that dealer part enough movement production the on orders led the and And obviously traffic, we around decision

canceling as are been mostly not happened from orders are dealers many the normally They new putting present system the many we But at what's have new into that refraining is some orders, that orders time. by seeing. business. out times, to those like they into the And they are are of of communicating would, deliveries to us push at happening the the orders certainly And future. as conversations

probably So very of through quarter the two pace the we changed, I'd dramatically what at today. our the it. backlog as as QX a would tell to March, referenced end backlog our of I in grow numbers, since weeks today has have to you compare first not to similar two go release the continue

the well. backlog have dealers And so the just as within really moderate pressed as week year-over-year, to comp, last pause started a it's see we've bit that been

brands like suspending out picture much own then for and change And two we our next of how a behaviors in how the future. behave and weeks how goes, and see of the dealers few will we will or riding investments. clearer we'll businesses, our have three With any a decisions subsequently are weeks major So their again most cash our once think or capital tied us. I they are this dealers to

for Okay, just you the margin, on thanks. just This a inventory you or due – And In Bryan. Newmar. release, if including how to one about talked the I the may, – so guys press question including margin. Newmar bp beginning it called partly on and Newmar's it's given gross XXX of more is to accretive EBITDA

excluding headwind So and I margin believe the gross a inventory is I just was surprised that be this purchasing would adjustment.

you can would So within gross just be hurt margin explain the Newmar? why

we we as portfolio. would did David, Yes. knew we the to Newmar, overall stated, the when dilutive be deal

does and Motorhome for business. frankly, than has Winnebago others a the margin Towables for the stronger EBITDA industry, business So in

into And the impact to by portfolio profitability we this, would so bringing to going have a we that Newmar on. knew mix overall

would at of accretive of from perspective. time ways also number to beneficial overall an business, However, just deal, our segment the the Motorhome to specifically it be legacy about we profitability Motorhome a as talked that including in and

to year-over-year what there, by is disclosed that from from margin that. basis so XXX mix also The impacted there points at a was we that really impact gross step-up. perspective And we're that's speaking a inventory

trying inventory Hopefully impact to overall. mix Newmar is as impact two-thirds those So on the the when step-up, as that things, I two combine into the portfolio, from I'm overall, explain of that basis XXX that's the what adding helpful. points well as

Yes. Thank you. appreciate I it.

Steve showing questions at time. call I'm you. turn for this Thank would no the I further to back closing remarks. now

today. again, everyone you, and for call Thank thank operator, joining our you,

families mentioned on in stay times. healthy. Mike during earlier appreciate you, valuable challenging As and We you your hope time his your we comment, us colleagues that today spending these really your with

Ladies today's you gentlemen, concludes your and Thank for this participating. conference.

disconnect. You have a now wonderful Everyone day. may