Winnebago Industries (WGO) 24 Jun 202020 Q3 Earnings call transcript

Ladies and gentlemen, thank you for standing by, and welcome to the Third Quarter 2020 Winnebago Earnings Conference Call. At this time, all participant lines are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today’s conference is being recorded. [Operator Instructions] I would now like to hand the conference over to your speaker today, Steve Stuber, Director of Investor Relations. ahead. go Please

Happe, and Officer. to operator, third earnings everyone, joining President by for I’m and Executive Thank Hughes, Bryan our good fiscal today Vice Michael our today a the call call our will discuss This call on on Chief results quarter and year live us release Chief of broadcast joined quarter today. Officer; our website news Financial available and replay our you, on and the website morning, President issued is being XXXX at later results. The third investor.wgo.net morning. posted and earlier website was be with to this

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

these Industries are appreciate we this the morning to and that months today’s your we Today, join each to hope your during results to interest on in the families will morning you and staying And call. and what hard safe Winnebago Bryan our comments event. three will you, over this XXXX. especially Thank I has an and our good similar morning. with time offer We held I turn how balance the of the us on some since everyone taking in Hughes, the transpired to our It’s will been Steve, more quarter the of of last times. a details Winnebago sincerely and believe unique then conclude much provide session. doing we provide perspective then results. fiscal Industries with who overview to call before our call Q&A COVID-XX share and third then on return has you closing to year financial briefly relative healthy I’ll

variety of pandemic. we ongoing Before today’s like of discussion, our coronavirus begin to a relative the I navigation to would offer thanks

X,XXX team productivity in inspiration our First, of family solutions been Bryan with reality. to health. engage ongoing environment, our Industries a and contribute than employees I their process charity neighbors. of Industries conditions, thoughtful balance manner. impressive of vision provider Employee dedication acts There and daily pursuit shields, to safe moments the have response leading and of continue the face and resilience, make of as commitment more lifestyle the Winnebago outdoor to challenges, brands to masks, a In Winnebago for cloth been Funds, the Assistance as want these a countless have teammates fellow our of employees we of to our their and with of to essential continue uncertainty face the help safety and communities our make demonstrate face efficiency returning our COVID-XX in and dynamic to care of work thank we In determination the the market to and as

the as protected as this possible. and through Thank challenging those the local in we ensuring that most as leaders employees first in to Secondly, a healthcare ensuring communities this health and navigating to These are in. responders, role effectively home have call public as the are cities vulnerable everyday officials counties, much thank played would heroes. play live, and to and work we that like towns you our pandemic stakeholders virus and crisis cared providers, vital these possible, for

COVID-XX, Now the the for we prior and of to year impact last way building to was strong fiscal created driving momentum Winnebago the XXXX, several had Industries well on its years. financial results on

production more across than discussed during control March maintain to disciplined production we At stay-at-home and time, portfolio the our suspend and on full country, unfortunately Chris-Craft our place Industries response, most dealer mid-April, we our X,XXX Vehicles supply last activities flexibility Specialty facilities. our Winnebago and in resumed As May. one actions strength significant began across XX were orders immediate and manner call tough, put of temporarily point as our by of of month our the with our making activities In in businesses took financial mid-March, businesses consumers. end costs network, in to and witness furloughed. decisive a employees across decision, eventually of necessary to and we to all the but graduated have in COVID-XX-related most week we chain the in of Beginning disruptions

our plan work began the employees the this prevent lifted consumers outside to to production to affected constraints of our other training most dealer we as future process protocols from reality firsthand facilities to that with is As the our being of blended spread role the and of against all This needed to the with and Along and with families complacency our and battle adapting the return productivity daily to President work. to networks, manage West, social The their safety other important to meet waves a new rising protocols operationally aspect a new through best coronavirus up inconsistent includes workplace Enterprise This stakeholders, ensure fatigue, protocols to and we new to that orders employees pandemic. the to and potential establishing Operations, messaging health been have as leadership safety and proper along practices the health educating our safe. COVID-XX-related our across the were witness a had our as of guard embrace across portfolio. Vice our visit and employees to Chris of inside and keep stay-at-home employee demand. ramp our the emerge of normal now of opportunity are company company and developing on almost outside longer-term key I modeling has how started

I hit experiencing demanding in are fact, being our In Class a Americans vans of Winnebago-branded month, of Indiana many last manner. the in trip feeling now outdoors the road to so one safe for the B

supply throughout us brands mitigating close basis. period, we stay supply partners this chain the a was on COVID-XX-related During chain in identify activities a through vendors and sustained May. successful allowed and and comprehensive key with plan process our disruption to in help help our restart our this communication Coordination a risks also element to lockstep manage developed in and us to

challenges of reliably through our remains supply here managing reliable delivery and chain still some there, currently. – most While

the levels are business also versus rightsizing our discipline orders proactively and of We of to and aspirations. our operations the profitability future recommit well production prospects as to using planning crisis to higher costs continue to improve to our efficiency confirmed fixed and

are we’re assess what with also have how close remained they businesses and in contact changes our seeing buying We and behaviors pandemic real-time. the monitor their and to dealers consumer impacted in in

and demand boaters to fashion then to have to quickly in be digital with April, initially available and what what been these existential emerged extraordinary last meet summer. adapting in this veers Our as an dealers XXX during truly to of a crisis engaging safely spring welcomed consumers days, unexpected, appeared ramping now an wave teams their late strong and has meet highly up our but first-time facing

their support the serve in to those dealers everyday for our a brands. we hard say want needs partners work you to to to of fashion. continue of And superlative We our thank channel continued

a to as disruptions. the stay follow any of prioritize continue significant disciplined of the company, financial market to we our ahead approach we closely to Finally, management

continues teams continue COVID-XX partners sufficient As we our navigate the keeping as confident and support safe we the remaining on are to while that our cash we committed consumers. have impact to to and evolve, to liquidity hand crisis, dealer of

to and considerate opportunities, here debt with working ensure our any at future. have been also Undoubtedly, the outdoors challenging disruptions strategy everyone months past time in designed Industries, for growth we business any company of especially to few unanticipated highly a the in We specifically. the the but is Winnebago the occur leadership that aware that could industry are for leverage future diligently navigate of is have profitable and are structure Bryan’s

RV within the really company quarter I May. straddled the third for to worst entire first the U.S. Our we’re the report to March impact believe through pandemic’s of months of the date

decline have over sales April, and industry performance in in monthly prior a early May comment I you period. our most we the detail rebound all since an year on to seen decline a in RV backlog by If was incredible saw XX% compared March, demand XX.X% experienced a retail in we release. breakdown numbers where retail will prior year retail sections, the the industry notable speak in more the the demand you basis, in and as referenced closing dealer but can businesses, see our across

to morning the seen as the latest a we higher date. percentage received we In in have comp latest recovery week our fact, this retail in June it’s for and

of is current lines the safe believe We year fiscal our quarters. have for the demand on continued and seasonally can through manner production to the to future meet year. our that in ensure the various the product disciplined rest remainder in revise rates sustainable calendar in a we that potentially marketplace We of momentum

in for XX% which XXXX. $XXX.X again the of approximately the XXXX, million the date to most our revenues period Industries intense of down now the third COVID-XX Winnebago quarter third were fiscal the results consolidated for same pandemic U.S. Consolidated Turning fiscal in portion quarter, the to versus span for

XX%. were on Even our Grand COVID-XX, motorhomes, market trend down dealing Excluding $XXX.X build branded to all share. Design the million, Newmar, continued of Winnebago-branded business, consolidated gaining our Newmar Class impacts B approximately products, and with of revenues their while

is the an $XXX final in XXXX. outperform of fiscal million, the XX% of were to year that trends we we market Our so to pandemic do to versus flow consistent prior continue the with we ability and cash increase optimistic operating will XXXX. period fiscal same the in quarter are Year-to-date, seeing the was

able in million implementing including spend and structure, a approximately executive of employee levels capital cuts, of been the $XXX May grow highly cost curtailing have end we our of another result cash, cash measures As to our of to million. variable taking position $XX our quarter an preserve compensation to and advantage

remains ABL As important, our untapped. $XXX facility million

Adjusted sales the in increased quarter, impacted retail for quarters, cost share reflecting Towable Now, backlog proven quarter year Towable dealer April for the COVID. regardless detail. in suspension let resilient In segment, in down were and more prior manufacturing multi-branded share. the strong us Towable products of over COVID, the period, was pandemic. and year to the in margin in again Winnebago-branded be Grand recovery May, $XXX million and related buying successful by primarily largely the most in and COVID patterns the gain approximately the to retail from allowed May. period, segments since of conditions. disruption reflecting of by XX% strong gaining deleverage market by The driven impacts XX% outpace related revenues has has of period Design driven a us once quarter in portfolio recent and consumer EBITDA demand to the units our X.X% prior our rebound of the to appeal to market was In turn the Towable industry the

confident and industry with and in and While consumers. lineup of our the there brands near-term share. is our appeal regarding continued consumer our Demand Towables are for long-term increase grow dynamics, business reflects prospects strong remains clearly the to we to uncertainty

our is refreshed to of us market. already into the Now, positioned luxury to focused The highly lineup towards in is our and high-end posed Despite restoring competitive premium more and its to the has our our effectively are in remains than balanced Motorhome respected of of compete challenges acquisition integration COVID-XX by on Newmar’s more brand portfolio. Newmar further Winnebago the in let pandemic, the segment company expands ensuring motorhome its The RVs market portfolio, the motorized Industries the adding motorhome by and resulted addition portfolio the Newmar segment. we turn leadership high-quality brand gains of as With position planned. to industry-leading Newmar proceeding ever. business high-end position that Motorhome our Motorhome to a

period. terms Motorhome quarter segment from approximately revenues year the up were In segment of third prior results, XX%

B COVID, of have cost revenues in Class Winnebago-branded organic to the due Newmar, to Adjusted we Excluding to decreased again, our deleverage and in negative related addition discussed. XX%, EBITDA strength in Newmar driven mix the the by impacts largely approximately due margin the partially offset decreased by and motorhomes. impacts quarter, to portfolio, X.X% COVID-XX-related the

It motorhome retail swift the in health. sales was dealer addition impacted from The take May, also due demand action the COVID, impact material. May. was operations threat prior but of units to year, backlog in increased It period forced in that Newmar, most strong XX% demanded driven posed April Our in by us the approximately employees’ rebound strong by our a to preserve it a liquidity. our business to COVID our to we suspend to and since

reconciliation. in During took the personnel. to this an result time, Motorhome words, charge EBITDA Winnebago-branded other The a at eventual of of business. cost severance, Winnebago The EBITDA we review in some in this million $X.X is our adjusted led noted permanent also look hard restructuring our Motorhome structure fixed to removal

our recall, cost time to That help Motorhome around overall savings the in the City year. expected decision $X million made many of may fiscal was you closure XXXX. announced facility manufacturing of are profitability interest the starting year last segment. improve of at As in of of Junction annual we Ongoing this the savings

ago, City, quarter Junction process of diesel and for the production weeks Iowa factory our upcoming fiscal to complete, we decision complete in Forest Our XXXX. with line nearly new new City operation. year the the close first made service is planned Several

an with take service the high-quality customers in provide Northwest would our worked dealers used have We in experience. region otherwise have Oregon in and who them end facility to Pacific alternate

Hughes, With our continue right fiscal in the more decisions are to turn we now segment. overview, of and interest the to believe Officer, make decisions Chief our XXXX While health the Bryan Motorhome long-term quarter we third I to detail. always Bryan? over that these call will our financials review hard, Financial in

Mike, morning, everyone. and good Thanks,

of I’ll and with fiscal purchasing our the million, As $XXX.X already were key XXXX fiscal the pandemic few combined a quarter a of third in repeat shutdown the results for all that the of operations decrease to Mike our to quarter million the the metrics disruption COVID-XX Consolidated Mike weighed in earlier. on revenues mentioned financial earlier, quarter, period. compared consumer patterns, related heavily $XXX.X the cited XX.X%, XXXX. for third

more $XX.X XXXX the mix basis impacted XXX slowed Excluding Newmar, $X.X did, the margin in Towable QX organic revenues in XX.X% Gross line approximately to Newmar related the Gross quarter. profitable Newmar was the will million from than amortization shift profit to we Newmar the for profit more million saw declined amortization due down last same segment period the fiscal the year. SG&A business Motorhome as also $X.X by the be versus top million, million. period. of in and from in quarter decreased included $XX mix The deleverage acquisition. points

our containment in third favorably per net million Reported fixed. for that loss The per public third to was in through costs of quarter, million showed a XXXX. $XX.X period of fixed cost in The was XX% of million results. a approximately income nature operating loss the net measures. the discussed the reported million year. to of of structure, in share it cost $X.XX, same of historically quarter last third $X.XX to compared cost impact third our highly last in have in the We income the compared structure diluted able a third of nature XX% quarter income had $XX year. share compared quarter, substantiated net of variable, to $XX.X earnings of diluted loss to quarter also our line of We the forum, variable estimating certain our XX% variable $X.X range operating We were was

We to was net of EPS the to have comparable performance share Adjusted clearly performance. adjusted a compared provided illustrate in quarter, metric loss per our last diluted year. period as same third share $X.XX adjusted $X.XX per in the earnings

compared costs, our share year, difference a the and consumer down adjustments EPS. million, million, an true-up segments. million per or and turning impacts, $X.X tax approximately, from costs. of Towable of when share $X.XX Excluding was quarter, EBITDA driven XXX,XXX, XX.X% to diluted interest, of $XXX.X EPS suspension per $X.X Now, to were adjusted Newmar-related between to reported restructuring of Consolidated fiscal the by buying acquisition for COVID-XX. revenues due non-cash $X.XX Starting $X.XX our with per or total to the manufacturing million, the for patterns or for respective individual million quarter the netted decrease last the in the adjusted disruption $X.X diluted $XX.X a $XXX.X $X.XX million These segment, primarily XXXX. third and of favorable share

million, increase in Our Winnebago the again points quarter, EBITDA by by Towable deleverage EBITDA X.X% Segment of truck million the behavior. COVID-XX brand despite unit in from same third consumers, American adjusted XX.X% basis enabled Towable trailing for COVID-XX-related quarter XXXX, period in resilience year lineup on of an over market share, gain the buying has the in lower in down folding consumer X.X market and April was the year. was share Design, driven XX.X% to was to period share campers, with $XX.X Grand the caused margin of XXXX. North $XX.X the a popularity the versus particular, XX.X%, three-month impacts industries through pandemic. Adjusted prior excluding prior

the Motorhome segment. to Turning

Our were period XX.X% or up same for Motorhome the revenues million the $XXX.X over year. last million, quarter, $XX.X

EBITDA EBITDA recently in But revenues by Class market than a was Travato, COVID-XX, strength more Excluding deleverage quarter, related fiscal gains cost primarily offset the million negative quarter, of third $X.X lineup. Newmar. by impacts to from the and addition mix driven market-leading and the Newmar during our driven offset Revel, Boldt adjusted B of by partially by B were X.X%, in million and the for margin in driven Class XXXX. was mine Motorhome million adjusted was Winnebago-branded introduced the brand COVID-XX. the in our down this $XXX.X share of the from The third Segment $XX.X motorhomes. loss impact SOLOS portfolio, by

balance our to sheet. Turning

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

to ratio quarter-end driven X.X of COVID-XX range Our lower current were quarter that was EBITDA related unprecedented ratio our X.X adjusted targeted This EBITDA to times of debt than adjusted by previous times, than the the times. higher this X.X results net by impacted and higher the to events was our pandemic. series

On the was $XXX.X of from nine working capital. same changes the driven operations $XX.X period other favorable hand, for cash increase flow the of million million fiscal over XXXX, XXXX, in fiscal months in by an

cash Our was to advantage structure, critical, highly was disciplined spending during effective. cost preserving containment our discretionary implementing taking all approach highly cost and variable other this eliminating measures, of period

at of pre-tax quarter, XX.X%, same hand ability current income $XX the team’s to on cash period XXXX. good evolution cash We was pre-COVID the and the mentioned, fiscal The think quarter demonstration well XX.X% the face due of be the of increase end business of February speaks to our our higher The a rose during year the of of third million, favorable balance tax R&D or positive credits. compared of to loss for balance to million. and in $XXX tax Mike rate As $XXX.X our to impact prior a third the which XX.X% in million, resilience crisis. quarter the primarily the a in of was for quarter the than in model was the react effective

approximately and per the quarterly at to code items expect under XXXX, Directors our XX, to cash occur dividend effective share, stockholders payable any May rate close on June of in the of common $X.XX of tax On tax approved on Board our before annual business QX. XXXX of of July X, XXXX. that the consideration XX, record could tax We be current discrete XX%

over want maintain I we ensuring I forward. Mike, commitment the liquidity our that call back to going turn to Before sufficient to reiterate

we and untapped. with million million As $XXX of access the that cash remains ended we to mentioned, have third $XXX quarter approximately ABL

confident are us with our to liquidity and obligations. that position our ABL of cash Industries the We go-forward provide Winnebago combination to allow sufficient navigate will our

partners capital And call work our evaluate turn determine that, with also to an quarterly review with basis our comments. alternatives my Mike? to the optimize on debt structure. That ongoing I our banking to provide now We and back portfolio concludes to will of financials. strategic some Mike current closing our

morning the and this chain were brands. manufacturing like relative the by with specifically impacted committed year learned results a balance the it Thanks, of and outlook on model, for Bryan. of diverse in I the health in. improving the unprecedented the our area strengths dealer the Industries thoughts a of and Despite this especially premium our the Winnebago RV of company’s our on a of of COVID-XX, business cycle. to of would resilience our catalyst financial during pleased quarter processes, partnerships conclude period market comment supply to market, comments third cost this is short and being terms We views and in relationships, our some portfolio we outdoor significantly performance reinforce variable financial great broader as fiscal balanced our with to an deal served has our model

foundation which our much we to develop to realize have continue potential have a do designed a work culturally, We but to solid organic financially stronger to future. and competitively, from

sides consumers very any in new in but and rental have for recovery. and purchases, business. is these to both outdoors fishing interest a boats, to it strong sharing the these in Now indicators product discussion outdoor RVs more recreation investments of products been in the much the discretionary durable robust. all terms also of in From surprise on demand consumer current influx you about summer. process have is the spaces, recent this and signal camping the outdoor to goods of no outdoor in There and but call, of been experiential

is for Americans developments outdoors. the are experiences and place are importantly, continued friends time in advocates. the with tomorrow’s safe wallet to the for activities, outdoors As set family in that voting and openness with the the the extraordinary positive industries to short-term, in the stage and as well. continue possible conditions manage market their products our are for of their our customers These select Today’s and healthy communities and as XXXX be carefully States

During of the backlog continued turned results retail has RV as our that only May, June sequentially company, for month year-over-year positive and our into position. increase to momentum has

While segment Motorhome Class travel direction Towable trailers as in certainly other Bs in well. our the have seeing the led and right segment product the in way, we the also are grow categories

Our be value of seen strongest is occur one not our luxury backlogs, our be answer several and to Chris-Craft, brands, with will period in and the RV for occur demand at for the and to result is a first-time relative as adjusting in future. as as have market. times. are some as have and the improved or and has future, present, dealers and no inventory to months our only rates retail Newmar production lead markets in and buying to step-up have the shutdown as the in This All been were and and levels. some businesses trying what’s these There we The Dealer at OEMs safely some what overwhelmed a necessary volatile their witness inventory plans, up their weeks are trends months. demand retail of April in recent meet past happening market rates dynamic retailers. low robust scrutinizing well. to OEM will the by seeing next production order dealer delivery by RV times in continued continue in schedules to certainly to buyer aspirational they memory pace The outlook and stay shore keep suppliers space to lot inventories low, consumers further flocking trying disciplined industry very several as are

see inventories this positive wholesale the in as will continue and seeing categories. should their there looking segment, summer work industry not trend We the be Winnebago above retail dealers the to collective The segment the of take believe market of of share. current signs to We to early levels the dealers retail broader retail trending and versus fall winners abnormally that XXXX. trends in weight slightly Industries trends. that for but elevate period, calendar can With favor Motorhome should in We remainder our anticipate brands beyond a are above of inventory bit. increase both year shipments Towable collectively most

stable may states is that will facing not occurring are pre-COVID-XX. can’t return economic see market recovery. of it that of a it you conditions number cases and but levels around are country will of still an the daily aware healthy degree uncertainty However, to we to cannot comment return ahead. driving the business I where and would what second those see or the shared, just unforeseen of U.S. number challenges business – systemic saw the time a be, as at Please such we time, market. the It around take no recognize reasonable might we that change reason an overperformance of wanted we on increasing related range to And COVID that many profitability the coronavirus within the the will like in be it before. economic perspectives definitely that Many to of wave our that have we a our what volatility given in understand know quarters impact most this We says any impact do

team all the how workplace to outbreak know to contact our we that cases safe. quickly mitigate cost management execute possibility an as in or COVID safely possible that the top to for are tracing turned of on closing as keep partners on will a management exposure campuses. our on safety our across cases operations variable our playbook especially of appropriate focused and COVID We identify possible. necessary And facilities And within the we and to necessary. quarantining Industries’ business, so, to priority Bryan remain business team. Winnebago of our if described our In employees businesses doing and can our returning focused remain by our and again we In be full health of

to being and to actions are necessary We employees. our taking the committed protect decisive

we channel strategic to across commitment ensuring we to Our priorities our products And partners our remains core continue enterprise high-quality to all brands. innovative on and provide intact. are focused our

We forward. survive a not proactively of to in what and are situation to thrive to environment, current steps evolving for us is but new this going normal all are the taking looking only adapt to

As mentioned to manage normal our expense how and liquidity. and require us will be earlier, this structure our diligent new ongoing we

to strengthening to retail to managing our demand, a One XXXX evolving a structure approach disciplined our positions of and into we end the and comment. production balance well overall rates shareholder move and as value XXXX. sheet and us fiscal manufacturing strength Our create come to cost variable is maintaining last highly

we must summer you change death many And office has and present Americans. total we racial and discrimination together in the George X% of than the small Paul. garnered tragic region of Minneapolis in less St. As a Twin much of This our area Industries’ attention Floyd Twin And the has to employees community. and with senseless in of all this presence is in systemic It is right while know, Cities live have and and the of our relevant the geographic peaceful unacceptable. the in communities Cities direction. a across citizens company injustice and all neighbors work make issue positive, area, as our is Winnebago

firmly our in we financial of to We been. proud believe a ever have made improve are I business the progress strategic perspective. are Industries we have than we many in from extremely dimensions and Winnebago better

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of other progress all priorities. arena amidst has this our strong yet not been enough Our in

for thanks team. subject and questions. mentioning a will going work. unique forward this not critical potential, team provide base, listening as planning much healthy and engaged, all evolving I how forward. to we again Our the humbly to backgrounds opportunities Thanks in enterprise for this operator teammates morning would talented the in opinions take in how to is very ensure doing now team your same, and our learning, the But putting imperative do our employees and now partnering peers commit our communities. customer us strengthening their industry line provides work our time. environment Winnebago Industries’ company. turn will determined. but back across all the value an in their environment There words And our the remiss improve We can do. reach outdoor to are the are and in on Industries to work present future in My we to those hope our better a action together I which the for and our the unity and much industries, reflect and to and Winnebago be with equitable at But leadership that that and elevating better will caring our to tremendous is we for look employees the over importantly, to into

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

now is line Your open.

wanted for in on estimate numerical Winnebago if thanks ask, a and you May to could taking either Mike, Hey, retail or the for industry? my put June questions. growth I

how be April our be. morning, continue was a future to that, of else and you the Craig. similar uncertainty of rest you the and giving bit with of what that dynamic could relatively everyone about call share this retail in because though on the I to the the drop nervous Good can Yes. I’m industry. estimate things numerical some

the as wasn’t orders we’ve to was months industry. a to there fact, as especially of retail past that and In us with the huge gap within because our businesses pretty and company the stay-at-home indicated consumers disruption in performance equitable across that drop in that, essentially in seen

share for in much of year-over-year that did highest will in into performance. I the around May late see June. seen retail Sunday, further, steady to be double-digit what continues has comp month week we’ve was that sequentially solidly early month be up when I especially see for a month last comments ending significant in that, we and or morning, with probably it of the past July. performance of industry the my range. or chance the and week just to We’ll June you mentioned believe would in want don’t I they this And it April Saturday I in think, beginning recovery the a our the May, that the comment in of say even recovery. I retail the report However, SSI and this industry received the we June, in out. as come month retail first throughout and this And

I positively that rest that year. the can the retail also comp do momentum And the through I calendar summer. the the momentum sustain of I’m commented, can itself As through hopeful believe retail

that I pertains begin impacts We will, period believe bit the wholesale well. retail at dealers flu shipments conditions well. to fall think, virus catch bit a as of time, over and higher of the it stock little inventory as do potentially as about to as a retail winter nervous to the we’re up a all of OEMs and exceed the as evolution ongoing level, demand in maybe

believe the continue – an numerically advantage to And Industries industry future. digits I those share will Craig, I when show example, But double Winnebago a the retail. for up – be I So leery numbers reported to will a are market will as June, believe performance in estimate little but an the now, what you future right be. do give we’re on in

maybe to you this first-time long-term a I’m first-time and do you. convert testing then if specifically, industry wondering influx can And you’re Winnebago I’m the of can follow-up, to as as a sure them quantify people convert seeing lifestyle buyers, what then buyers. customers? seemed mix permanent into of Thank and who an those be

of we cards. the and that in the not that media within has industry and job topic do retail track a that has The do probably registration We better our real on been specifically us that challenged been phenomenon. This can first-time we area. in visible certainly Yes. has one buyers do believe a it’s

feedback industry trading they itself And country. talk the anecdotal, around as is that in a especially have and a a on we up of imagine, unit. idea mostly or Our first-time a the presents trading talking to can our in in from new buyers when about as come good it unit dealers you consumer doesn’t

years or have potentially buyers. materially, It’s past Motorhome or the trailers that $X.XX We our million especially $X.X the past all RVs XX% several to on not point We that years the categories. product boats, some of believed everything of and as on of XX% sell in in categories, to buyers tended We $XX,XXX broad that, priced in run number increased has lineup to believe first-time has higher closer the even segment and potentially so several in percentage luxury travel you million price though, maybe that, around high, the and buyers in Towable lower been some from XX%, a that that business. first-time know. But have we to by within varies the categories. segment, of higher average, XX%

seeing, differentiating different that ensure but the – definitely or that’s model down the consumers of can the very as best lifestyle certainly a to the a a well again, our count a get that factors, the us stay is believe consumers thing believe is one build RVing believe be good can product times. in to The stick we it But number high the retail I’ll thing of believe high-quality trending that’s produce in positive at Industries of question short-term, We of thing we And blend a future Winnebago most the lifestyle. but in that can can to certainly your and I do believe for customers we is second that we’re that our boating versus a product. answer if with demand So, majority we We our competition. these in higher. business the elements on. our here. time, the we the We fall quality of

our end everything consumer. – the to dealers dealers especially thing delivering second that our is a for that with is ensure do to The within manner timely when experience go that wrong documentation training in dealers. and closely satisfactory can does very a – the to we And available from on products parts our our components carefully one technician from ranges in service to work with something

service a a do. continue that last brands decade believe the majority with product, we high consumers So we those to And like experience our offer our in in acceptable see that have believe I of we’ll can an the dealers to I lifestyle. partner quality we build stay which

Mike. Great. Thanks,

Thank you, Craig.

Thank you.

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

Your line is now open.

questions. my guys, Thanks, Great. for taking

Good morning, Scott.

Good morning, Scott.

Cs. could about core and Winnebago talk we the motorized Maybe product, As

You talked about it.

about, how seems You weeks of recovering now. part in As to doing that, talk fact alluded Winnebago that are the and also and gas diesel? Cs Maybe is just that traditional it again, recent the business right

want to address Scott, Yes. first Cs. all, do of I Well, Class

If pretty historically rental you certainly, out not significantly what a quarter only on saw quarter relative of the impacted that transpired in I volume the disrupted significant a want shift And rental in look at Cs. majority see has to well. the Motorized that, release Class Class to order is the quarter. supplemental this will information the in The as significant segment with business you point been pretty we drop morning, this this business. our by Class but COVID-XX, our C – was our disruption also in of in And year

we several orders out In pushed or some there. who had cancelled fact, rental players

at see than retail for Now, recent that Winnebago third you C better we brand, what today released look as report the are the Class the numbers for in retail the at I quarter. significantly

solidly increases Our month May, late percentages Cs Class ones. are into by positive double-digit of the in and retail, retail favorable on June May at

certainly from the we healthy will And recover quarter. the category in that shipments experienced our market believe that we in is level currently. that low the So that, we third believe

has to business at The several here Super We weeks. XX in definitely slower from as are last than the Motorhome business the C XX also Newmar those here of models six and been new in to are speak in the days. Towable have last we as introduction seven well we beginning that our happening in retail retail – as the to recovering marketplace well

memory, that data of business time retail share this I’ll month. had recover is earlier recent to Newmar its long However, beginning this it of nicely. recently single the one just point in highest very a weeks And here just perhaps

a the May other Our Chris-Craft was retail Chris-Craft years. they’re months month, of since five we’ve its as business, and the in aware just higher idea rebounding, to an of you in sort that luxury here Chris-Craft the last was to single our the any give owned highest brands been than it

across step we recovery with value those the products, beginning are point those So and to the opening up. consumers price while spectrum see products started begin to

the think been I Scott, the we’re of helpful stock there. with and equities of health quite and segment market, Class some to see recovery the has now starting market the A the

high-end in market I those more or Boat is and to some investments think, increased people comfortable willing retirement status investment portfolios with are performing. balances in certainly portfolios, now market how the segments, the of with confidence Motorhome of the make given

to of where And incremental the earlier, see that going forward? there some when some factoring maybe that do should alluded you of restructuring from about talk these savings out any Are you in profit maneuvers it. look Got Motorhome we guys for?

return generally see savings had the pandemic. within decision levels I again that on and we anything we into And we’ve mentioned you’ll that systemically projected today, that our Junction says can’t business commented from Well, see City. going also to the profitability highlighted we the don’t the

as make As of candidly, and fixed, that business continuous variable that for on improvement think business profitability initiatives to And in that addressing business versus and been right the segment very need the are also you all also manufacturing we’ve business. sometime. the scrutinizing And know, fixed hold increasing we of labor we’ve have we moves are means of I in the competitiveness continue which we that includes our amount indicated, percentage that been cost increases. Motorhome working taken for the as productivity element we

in to we for Could reach why the to to segment. of more segment. there reason Towables as if you’ll stabilize some Motorhome think you’ll we it we of But no any improve see the it’s to improve back things We Again, We continue accretive profitability segment. again, we in Newmar profitability well. Motorhome get a normalcy the profitability And the to improve. brings as can’t that stability don’t challenge. have Winnebago-branded of to and Scott, goals difficult recall, get see see back the continuing the strong level Motorhome business segment, can’t. here, we semblance And ever segment of reason probably start why profitability once our

quick question. just And it. one Got last

development that year? or product XXXX there introductions for New – Will product done this be an house? will How be for open XXXX.

I been house open in future I here ongoing within up. But in that finalized or the are topic think anything discussions communication industry event weeks. forthcoming will know completely imagine, firmed would the and don’t has be about in September Elkhart, around I

summer We in dealers presence our are evaluating certainly, and fall who brands that or consumers end and our and those trade this employees our make obviously our shows sure be all to safe represent environments. retail our can in

last development on early the days. one was a have our the made decisions the business we’ll very at unit with pedal everything hundred in we new the that side. – to can was in to That We the exhaustive of aggressive we business Industries off an not leaders product financially do wanted we manage development taken stay obviously that on but manner, product foot on Winnebago our

are or pandemic. as in leaders would in last the in anything, with seeing of few result a a had the I’ve delays you introductions the next year I of conversations If new week. fiscal two we tell or the in coming product not our business So months

for. into think juices new I the of creative those about what the and the new design generally advantage how that looking some take products flowing coming we are space are can consumers consumers outdoor

optimistic our to market. we high-value, to innovative So bring be to products the ability continue about

Got Thank it. That’s have. all you. I

Scott. you, Thank

Thank you.

with Sidoti from comes question next Our & Steve of line Company. O’Hara the

Your is line open. now

taking for thanks the Hi, question.

Steve. morning, Good

Steve. morning, Good

Good morning.

– A Thank B in understand to me kind be guys, I in obviously, with tell C, terms quarter can going you in made there? can producing guess, in what Just else units. but you you even was I mean, why about is know Class in, able that’s very quarter Class that or on a Towable. you was that the mean, mean, or you up for – explained keep led relative coming couldn’t Class I been there B. curious happened I was standout something of you you. there would just Class of the where I seemed I or I others to strong pretty Newmar strong

the Yes. morning. and Steve, good thank you for question

in some play them, the year recall, transparent significant on ago – release in recall, those leading and that third in availability had even – a you I’m And issues And to at the chassis up be probably or there’s experiencing for line year been do – probably availability one sure for are issues a If to and we two year. last on quarter you part periods that. you factors many those embedded see today, the ago that here. if of numbers

driven May, product. that and increase is of availability our by of shipping we chassis we to the been And the though retail ability demand – XXXX, of better began year B, especially fiscal in especially believe line. months make we We the in XXXX. third the in product demand significant, have calendar We when majority our of and seen was quarter as wholesale significant, in the March was were have the competitiveness the Class the

hit, We the Indiana our I camper have van a has the of the the some SOLOS been pop-top drove introduction to of Travato, was in new experience. the Boldt. products van That great the Revel, great a was

but significant is our there focused. very I coming this And are to can new compete attempt competitiveness well our products crowded line on forward. consumers. know and only to the industry of are tell to this in dealers others have segment, a that becoming vans continue a our that is that well with that pipeline more And in we level resonate with in to we aspirations execute team very well arena, you So certainly sustain going the of

then more last maybe could one, I And squeeze in. Okay. if one

you new can once take does things this, the slowly, obviously, kind cost you’re I think about surrounding the And guess, us that it Thank that, restarting probably about going costs? whether outbreak to just of on think. get got normal in facilities? and process, a up and start-up would we’ll obviously, I of to And facility? outbreak the an forward? it’s cost, going you terms have like that, had months, with it’s a something you’ve long human maybe back the but to I there’s facilities, if how just maybe how a be least will again, say, you. again, or outbreaks next talk then, at time least, to In think operations you the long at at And for business six you

But, has in seen maximum the know and here Yes. forward. the costs been important want comment the our our I if many this is going most the Bryan revenue. process to of the that I’ll to of of COVID-XX making thank keeping right sure business. we’ve I be right demand know ask But to now will capture want topic employees one it reiterate in and certainly our our the to can we talk and any meet about now. business that imperative want the you I to question, at to number safe safe for employees are that company you everyone is because on Steve, then to relative

right necessary employees does who keep We’ve leaders tremendous different us And within fortunate. very been doing so of it affect through guiding our work company, streams been everything have now. we’re We’ve protocols to some safe. the had the

We X,XXX have employees. manufacturing more than

environment are X,XXX employees manufacturing to to trying demand. by the and us everyday, coming most of office help is that work – those way, Our meet

time spending what they we of are are invades people’s we that make teammates. that but report relative mean to we work in in of their work close adhere office are to reduce to the they’re geographic spaces incredibly a the required that We I’m and many who to has to way happy seeing been in asking the Our in areas, privacy, be we’re tracking has they’ve And we a required protocols But is our allowing Winnebago to wear touch a make might business. that that in environment in been with our our cases to proximity know been case the or continue understand in exposed. with exposed more a create do want all social them honest employees, Industries In develops number the relative who how to can are that that are have office, the their so communities And are home them than checks if no. but Obviously, tends do things. sure in contact been, plants us our running areas temperature of to the environment, less workstations, common to in seen. the myriad to amount that PPE embrace employees we in how their is your feeling, much have the office. who everyday that potentially manufacturing better I to close redesigned, are sure in in we many answer consistently question is that in, movements employees have ensure and from that. about be the distancing, been know a our of employees obviously we we to in that to what presence employees we to don’t of because the place, local people to who in Work done to, are with. parts have battle can health

time. area in have sometimes are area someone us If the feel are for be But cases, for caused this actually the ongoing as or in was imagine, or are you of sanitization that protocols in an company environment the test We not We do or is that, of to at. challenge. an in that community, a we at suspect than the adherence safer we period to having down maybe virus, significant might the that seen as area risk and that in in have not work most outbreaks cleaning particular there employee consistently can executed. shut where any positive the of extended public department they at protocols home COVID, our employees for has who

ongoing battle. So

team that job. our related are is doing the think I of good costs on a I’ll And Bryan COVID. to have the comment some

presented us comment basis. on risk other that’s the to Mike. Thanks, a Yes, daily one on Yes.

and recall, campus we helps many dispersed and to even you aware got You a to contagion. separate risk so of that our are of But of this. on further also have each of distinct campuses, mitigate and a that within we’re facilities,

And one so, just other there. comment

the has protective reduced that issuing either. we’re which day, in limited equipment our referenced not – produced of that new the another Mike our productivity regard or pretty inefficiencies and number that itself to introduced set way, really per have ongoing, de units relates workflow so the we not to it going costs is employees, As PPE forward it’s here minimis. or The

pretty costs, to go a expect costs – it’s I really a impact I at people as when material, notable look so the help we’ve impact don’t all-in keep safe. our forward, and that a And result introduced Steve, of margin margin

good appreciate it. all very Okay, I color. right. It’s Thanks.

Thank you.

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

Your line is now open.

Hey, just earlier. start to made you with comments guys. Mike, good morning, wanted some that

little Just I’m or the maybe for just in Winnebago that thinking were of Was calendar Are year discussing? you about said remainder saying the an its understand the you or number of industry for total? calendar on the the number year? remainder about clarification when were you entirety? that that to talking calendar the year positive, a how you calendar for in year trying you’re retail

here, my calendar for double-digit higher remainder to have remainder of retail a the the industry believe of answer But year of in the the in retail and industry I go that retail here for our level back And I the period as for math of that running in I’d positive. fiscal be and than the short-term year’s remainder periods. year those hopeful this mentioned be at a we significantly ago. in to seeing I’m fiscal the positive. – whole on question, with Yes. year should and Craig’s calendar XXXX year Steve year are the will the do our the

so, travel whether I of periods two share also And the be rest have of some gain think we’ll those pressure to conversation on effectively Winnebago’s year. point others less the had where or Class Wheels, performance, of been also out. given trailer as see Fifth Industries some of opening Bs a market have Winnebago continue as we areas will indicated where in year we that that segments, We’ve turns a there I presence But other outperforming. analysts in our how we share the well, to with fiscal hopefully like segments, stakeholders we especially price compete rest can believe and the and and calendar our lot and have

So see we’ll the net what is going forward.

a in, what to a us as great like as look has running exactly, optimistic here and little going can challenges that, macroeconomic models. significant that I think continue country forward. variety ahead think, RVIA to are comment environment with medium, So, pretty know the it’s Mike, and leery this itself and fourth played demand, today to retail But for tell passes, low with third be I We earlier, that’s company. well. go there calendar – sustained premature see direction high, some become this still for out a I more hope we’re quarters has their of of when period XXXX as I you completely to longer on sit crisis not helpful. in yet will health our every I that started well here we week models that – I indicated I I’m

backlogs our environment confidence indicate strong. is market going but to certainly that – from increased would be So dealers the future

Any then that was backlog what we in the And quantification at helpful. looks was relative today? what That’s than clarification question your that like saw a the higher just perfect segue. – had current end the you made other of I standpoint, May. or from This comment

dealers of won’t on our category. to three to some to week but lead probably meet vary like many latest as by lead the to are I cases, we try are Those products. retail. just They No, four-month some a how specific And the extended or of More, into, the backlog. in products our now been pretty are continued for with increase know It’s continue we seeing orders higher. times you in range. now every are the number, some it’s But to dealers. share place wondering times

are give safely, And line It segment I product So, to all will ramp continue by production giving rates very working vary company. of timely lot of suppliers the on our that in a most our the of appropriate. suppliers our job credit certainly deliveries in good to does where with OEMs, across components. up do trying a us carefully they

continue We is trying work to time. there. here – industry RV everybody hiccups this to But safely see or in the meet and boat rising and

Thanks, Mike.

Thank you.

Thank you.

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

Your line open. now is

Hey, good morning.

Good morning, Brett.

sustainability the a just on of this question Mike, mentioned earlier. you demand that

compared the is happened that have us the the of many that, context in for timeframe, a think thinking think all around growth XXXX demand do I that that here? using history and September caused? sustainability I to about airlines guess, you So disruption that analog demand So fair multi-year the

in you of some morning. Brett. are time a that industry I they that people probability period dynamics educate really for do Yes. going RV that I forward. history. Thank me were on during that certainly the wasn’t you, that, the and some sustainment I Good believe know frequently to referenced. lead positive there some

today’s staying them individuals have X/XX. are and camping, definitely cruise since, time, slowly. in them some the those of ways even see Some But in unfortunately, to surveys of and back airplanes, fishing, the traveling and been, RVing, we’re studies has it maybe in year’s fuel Many positive come starting There’s are appetite potentially different, Interest the market. recovering. it flavor X/XX. boating than will for last while their environment, to it’s from sense is time. in shown a days one this lot stock as And the for unique getting a being in the XX interest Truck definitely this spend consumer the rates, ships, end XX signs people an hotels, you lower to year’s flavor the referenced indicator prices, really from next and are on of has way that sales the family preferred that the of economic stability, standpoint. discretionary seems again, returned to

seems said, bode of to potentially be obviously, said, you inventory of and with and of dealer that base optimistic increasingly remain the to relative around some is right has and good terms thing position fall will know the to I the during that And recovery And to what other as that I on is XXXX. touched really the in on field this legs. mention, the yes, as But appears the XXXX all that be demand. being I’m that the well. uncertainty yet in shoes the So, all industry continue us. front now retail to just back-half be That other position worked economy, in health may crisis I American of future

albeit inventory chunk gets calendar into dealers. during a XXXX, weeks in you time another April position better a to of that Going OEM of And the going lower field much the six for retail out shutdown much level period, kept industry four at field. I when in and the inventory-wise think, with the saw was sucked

faster, dealers to dealer for are chance with be. they level, as happen so And dealer some now. in back and a should be demand retail of careful meeting just where base coming restocking long-term, for there’s And right the at addition product inventories retail a turns will clamoring to

a can sets going have are environment the economic not March optimistic they continually case. these the be for up. said monitoring industry good hope foreseeable any there are monitor macro industry what years the those disruptive forward, up well what that’s could be April. anything I and potentially considering could happen RV health here We to we – in I But think went future. all I’m I’m we – the that Bryan about if just And cautiously trends to that the as step for first-time industry and continuously boating as and for through honest that blow and the buyers up. and I reasons, So wave

right. you. Thank All

you. Thank

of the Wightman from comes line with question next Wolfe Fred Our Research.

Your now is line open.

morning. guys, Hey, good

your and supply side, had prepared in chain is Just like And on holding challenges chain B chassis issues sort mentioned some touched think had can supply there but the the you just seeing up. Motorized that remarks, on availability with overall Class I about of of it you sort Mike, talk any some suppliers? seems the the your delivery you chassis broader situation. of you But segment? Are

large, production availability ago a had disruption manufacturer issues to our respectfully I on through vans question, a the manufacturer. With with broadly supply which us the respect people supplier motorized chain, are in that work part that daily trenches company. has we it availability seen and to to of area their we given a have on in most manage suppliers. to improved and a varied chassis lot work be Yes. that from recover. in done the manage and by supply good all continues year-and-a-half us the B chain your basis. and hanging has Class job our through The has that The confirm helping in the But initial company of with your there. process is There hiccups suppliers our will and our

chassis have Mexico, businesses, though, for motorized some assembling unfortunately, or restarting especially region. entirety they if on have their challenges seen have either chassis components We in that suppliers those chassis, other in some they’re in parts if for operations or those their

will weeks some for that slower that And probably some last had view reason, the RV relative auto long to But out we’ve the of And blocks three disruptions or production in of the I than structurally of little four time. came a as, industry motorized bit so, other chassis. again, issues those the things here to a don’t for systemic be period suppliers.

market. match business seeing they’re transitional production and trying their I to to restart think in challenges is are what demand-wise the there everybody

That’s questions, way. at entering on that? prior slightly talking overall production units? positive Are we be that in retail it today’s to the Okay, in ask a we we a follow-up of but the other great. look the wholesale what could I lot given for just above few wanted to about industry if to going commentary industry? relative over I’m thinking the a XX% is of we different that a mean, category, should really XXX,XXX that, helpful. you’ve peak the above sort you about And look this like, call, to If first-time X% I that how terms mean, for of think dream, buyers dream

XXX,XXX and all I sure – favor other question. the these continue several means not could years. using the case all or use healthy industry make trend units. XXX,XXX know the And two respect you multiple certainly the work well, those what’s been in continued responsibly vacationing, products we But discussed shipped RV I the if anywhere, a month the a wholesale for next in shipped can especially over from environment as very see for remember cases, the versus units I Yes. last you’re work we from in this that know travel lifestyle, I’m that road, year see of were of to or the market. to you

units continues return safety; improve to to as levels XXXX is the and possibility third, product, rates calendar quality; improves foremost, are Well, products the our environment industry environment of product anywhere someday. to come to would And going that XXX,XXX a the but the first staying the close hope. year that certainly, to in secondly, moving not very industry. – an be for matching health can on trying economic a I there those and is and our We’re output that on focused our company think to increase demand market. But production

this going we’re to take to advantage So we’re push not on of products to – going opportunity they dealers want. that don’t

it a going name not have it sells. doesn’t that hope open on to We’re make production – and with

lead But get to it’s environment going while a slight share. shipment to over million shipment right But to shipped at the we’ll continue a We well disciplined, in losing to $X.X standpoint. that Spirit, are number continue But little with this year. disadvantage RV of will pull long-term, back of stay units to in I think our a agree that and the company in going optimism. to put I perform a believe retail may from to the environment some to us take I

Perfect. Thanks much. so

Thank you.

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

line open. now Your is

guys. morning, good Hey,

Good morning, Bret.

or vacation And RV who and to who a sort something dollars and feeling shipped is Are guess, at dive Hey, this consumer. of are are consumer new given coming with lifestyle? have into more new stimulus maybe are bit, that higher a of the legacy compare average the from this into buyer these the sort them checks these a lower? score their look you little I might you of and buyer, now their pocket in Or spent previously people else source? money people now doing liquid, FICO

you thanks Bret, people buyers a family-oriented. about all – government more They’re to into little to questions bit stimulus answer the know don’t there. to they’re use is sure checks seeing personal those be be opinion enough Yes. younger. the that lifestyle. not for question. of the trending that listed first-time get think my we’re I to I’m I tending we

checks – living or pragmatically were for those those folks think debt that received more I expenses. used them current current for

companies But thorough creditworthiness retail of retail have extremely finance significant consumers. the we’re We seen seeing happening. be yet, in the

looking lending retail buy. to finance are those so those money And to are entities people that

that to bit the Bryan, get exactly I to enough you’ve learn thinking just the as and the retail the little but you that our… the credit finance down have into able we don’t been industry. definitely more a bit would from a comment younger, make So ability the on nature people a to know of environment to know payment little I’m or yet composition, family-oriented, any

and That certainly not finalized. is couldn’t retail are people is hearing get Yes. that alluded of of sale, to kind too stability on scores of away focus is anecdotal. then you of as instances ongoing longer more of hearing But even being a relevant, app a and of the as credit are probably we credit slightly financial there. still somewhat because employment But we’re the providers a applicants. they what from process credit, Mike, turned the on where availability expectations I’m credit validation higher hearing

really we’re that those comments anecdotal So hearing. the are

But it’s in at getting delivered time do Okay. to a inventory in timing, I because shift guess, just when some that missing either holding point so know the concerned fall? standpoint the about sort times what maybe dealer months. you use this in point and and time, it’s consumers the talked extended extended or Like four you the lead And a would we categories I dealers from July, given into of maybe the it’s you’re coming in the slowdown get book order into think sort winter? your the or to either such XXXX what those seasonal do going a pushing of about be Do three, cycle? fall. the the early think see At delivery summer, in start a

timing is of of it’s of the country, for us extended outdoor interesting this window. question, relatively to experiential many parts because be a believe really season In a it’s year. going think, the some I short the camping activities Yes, and

about activity Here in later open people calendar and XX But periods I in. hopeful more of time of spending the end take Minnesota, see weekends from to of the are product time the lot that, into country, September in going you you’re believe a outdoors to to calendar May you able beginning to for of got outdoor year good we being fit longer have. your see across consumers they year. because And will than of about later that be the generally

don’t we months, three four the study So the KOA we’ll will it you know that, anxious as materially. because so that in for happening, did adjust they released I early hinted seasonality those that products when because see what’s a that that, lead yet. year well. to are to should, May XXXX start they times in how dealers are times calendar anxious as maybe out believe, seeing that at lead curve believe I definitely of hear But get consumers

for capacity lasts not have hopeful find sure we’re for retail we will as start bit sustainable to XXXX. year And drug that So and safely But, calendar long investments capital The do season I’m in hit outdoor adjustments the more probably that time in more little ways if lower times that, continue an well. this is, ours some of hoping as we a natural going period OEMs before in a season going growth. long And like forward. we’re you’ll again, there’ll XXXX, govern a early companies the significant immunization to will we certainly outdoor see gets be all tension with consider can. try to and those lead to that XXXX

Okay, you. great. Thank

Thank you.

Thank you.

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

Your open. line now is

here. more Thanks. best you’re the more Good for unemployment maybe caution a probably unit morning. you high? in you’ve from is know scenario got Mike, the at mean, it can I outlook digits initial goes implied. like consumer impact your all bit how guess, this, of that insulate I single high a just have it’s And a sustainable me, given Eventually, I rest demand confidence, premium brands point. year a unemployment And bit mean, But got staying I on than sounds case down that no? cautiously to to

David, and ask, question good Yes. to the morning. again, mean, that’s I right

carefully. that monitoring We’re

buyers are. monitor relevance always once they of brands in be digits, families looks think like well. our if our very a metric that’s And that of affinity they with the important to single and that’s whether to not low the our industries friends there earn those brands, will could be. discretionary to business fifth usually are level what to pool Certainly, that comfortable you But and savings But And for purchase, to settle to see unemployment our compete think with what everyone will unemployment great be digits are we’re income the their we very in that in into or And the they’re their certainly, and the or unemployment determining be spend to just and see get third, impact long-term employed not second, like what that high I that products. place they’re being why sometimes that sometimes double memories fourth to good said, a brands try stay. that the honest being long-term. continue choices not or people for they first-time here feel with. less hope have I hanging our we we their

of attract in that think the we then product buyers has done lifestyle. retail the believe the products I or job enough means a line the in to to it’s that either the portfolio brands discerning the especially boating side and have on in again, keeping So, the industry through value years good And of years. to step the RV invest opportunity them future up RV

more all some what XXXX. shipment of industry forecast don’t different the bullish from industry So, peers that or year the the in you’ve again, from than boating I calendar think, other the in retail the environment we’re of heard RVIA some says. rhetoric we’re about I RV think

part keep raise to I and OEM’s shipments up by think dictated rates safely. wholesale production in will ability be

just probably not ourselves of ready next get any thoughts on year yet. We’ll ahead too comfortable We’re more there. our thoughts call earnings far XXXX quite on to with with be some calendar

perhaps than more Okay, to doing perhaps can thanks. would your That not you rental invest in the you business to more or are or sharing point that makes want even that’s already market, And are a from and digital benefit you just own? question, the one firm the sense. start sharing

Yes.

rental in to our have interest had high of economy economy many sure comments that in on sharing right are friends us all-time commented experiencing now. we that I’m call so. or and neighbors sharing RV reservations went dealer As that, in prepared is this listening members that or and do – an at those family summer have the or have of to the a to later looked some platforms rented and/or

can’t high want being Used now of product. they product that’s anyone positive have used exposed extremely bidding the customers higher via more what that. going in had a it, sell enough. shelf. investing who dealer they in value market. used has higher get kind low a product They was inventory gets flies So believe I the to We where a had used lifestyle permanent he right Dealers, boat hands used their that the level at yes, for probability it of lifestyle there’s that, forward. way on for with able three was. When that a book interested in spoke he that And a in net to off demand recently, a our is who the than inexperience inventory.

with going work to but platforms like in their of terms like carefully here that, not be we to on business platforms with what dealers We’re offer certainly carefully development any investing forward. our or and could what look work share any as some in would plans comments we fleets sharing our going rental those do of

of So that. for brands think will from going we we want industry the quality whole again, And on And we a for lineup we we lifestyle. market that can of anticipate offer the forward. those the that discerning people benefit effectively part compete the

Thank you. Okay.

Thank you, David.

Thank you.

Wells next of line from comes with Conder the Our Fargo. Tim question

Your now open. line is

a Thank chassis. back detail. did of that. the A lot lot a provided gentlemen, answered questions and of want couple follow-up on greatly you. And to We I appreciate you’ve though, to

Specifically, And meet the when for yourselves resolved color demand. your Any the do be struggle to add you think the will industry to it this sounds like there comments? previous then you continues to again, can industry? industry, for current Mike,

So think before point saying can then do just the we please to you get rebuilding the level and to sounds two, channel? and fall get appropriate in to when will we that be could it And we clarify restocking you’re the like that point? one, the of it if

Yes.

Let morning, me good start Tim. –

motorized question. start Let your chassis me with

think from our of on hearing I’m I recently information on many be the chassis those relationships. of behind works that those the based issues may on team motorized some

disrupted of the presence challenges off as due that had operations that. that would issues own those of think We’re last these had may monitoring a had our to their restart here shutdowns. I weeks carefully primarily especially, indicated earlier an of manufacturers restarting of some the outside and particular had I some the But the some three, have issues coming liked. we have as some of in was that production four quickly country in as comment, of And some they

in that on continued have across orders. again, seasonally them mix and it motorized challenging, the the slow in can a We increase of doing to of backlog that they for racing competitors segment, the work of continuously. availability spend macro, based leaders are to of supplier by some those There back unit-wise our other their to the relationships vary I of think that inventory be they think levels the to into be be future. by production to space. reset as retail some some dealers see inventory do that, of today, up business Board or those by total majority – been later the I – be But we’re to everything our to potentially to naturally the catch summer unit of and are speak there challenges. to rates in be sort we going production our on in levels we But That are to and our this and pretty whether their some as summer it’s later manage level. rates and rates I than in with thinking I up some confirmed we backwards. demand where demand. lines chassis believe on going position And just and that do raising will the with have keep intensity as year everyday, racing fall exceptions they we I sit But through increase see want the varies manufacturer. retail and catastrophic great I environment their we’ll would our when OEM dealers in can’t stock able the things. dealer the production the teams and going meet with most don’t with about to, higher operations to everyday when it’ll the can capacity with based say, more will think taking keep demand near back-half them about we are they I the OEMs have up to are year. think, we’ve But rate know they’re to suppliers, challenges to vary rhythm as here a right any the of

at the the last here and one looking of impact related gentlemen, even your good, point. balance then And to Again, through this pandemic cash portfolio sheet. question Okay. trough of flow, sort the

up? how you think or And you within portfolio areas to at in? of further you’re So it actions I products, you’re say, context – sounds other of like about overall do how your that that, current shore do then think looking should that along

referring you or Are capital our Tim, to in structure our that question, economic portfolio?

capital considerations, at are to assets, the direction, you’re and assets to your the one, point also would areas, portfolio, as that with some Well, in downsizing, there definitely. balance rebalancing, be the structure what’s improve set your any consideration that in color which, just any right any – But in divesting, you you this obviously, on adding. further give maybe can again, hone sheet,

along relate as kind color would any two the there? that then it line of marry Just and to maybe

Yes.

We opportunities And cash to quarter I’d we and the generation, and those with our cited, our guess, evaluating markets longer-term current certainly. further to optimize as are ABL in And with for feel, capital prepared position, in to alluded partners, we capital and us I monitoring liquidity them and banking into increase the always experienced. comments, comfortable continue as also only I meeting we’re it, we progress through we’ve markets other cash needed. monitor and and the the capital stated to our pretty the of to to near-term with improve make our have our to determine, turn our in there the our near-term views comment that where we the just performance tap longer-term structure. both forward performance, strategic

of we comment the are industry those portfolio. business very of brands clear. continue certainly. brands, And our we’ll like We’ve as elaborate question. continue. positioned would add or to funnel. never the how live on know, you do, But there conversations Tim, Tim. those we the of view make And along. through our XXX the brands that they how you, to Thank the been portfolio that’s during heightened that unless I No. into that So, are even activities translates portfolio to on as made We what and evaluate portfolio sense. They development guess, limit strengthening brands late we right. I further how in consider But continue might of might always have that has All strengthen the or They last something light Mike days. performance other of all the

you. Thank

to would Stuber session. now the This to turn question-and-answer closing like you. concludes Steve call today’s Thank for remarks. back I

enjoy Thank time thank you, everyone, joining your outdoors operator, you today. spending us. And summer. that you your the call and do with you and appreciate again, and family healthy day. hope a stay We Have great we for valuable our really this

and Ladies gentlemen, call. you today’s concludes Thank for this participating. conference

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