Winnebago Industries (WGO) 21 Oct 202020 Q4 Earnings call transcript

Ladies and gentlemen, thank you for standing by. And welcome to the Q4 2020 Winnebago Earnings Industries 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. Relations. now today, hand Planner Steve and and would your conference -- I Analyst for speaker Stuber, Investor Instructions] like the to to Planning [Operator Director, Financial Thank you. Please sir. go ahead,

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

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

XXXX. that and currently families today’s everyone call. are and safe an Steve, by this the to year We during us like our transform and the in each We made and company begin progress express overview appreciate future. I join would into to you, the to healthy time greatly unprecedented Thank team your Winnebago to hope our your our in and morning with Industries an morning. fiscal you of taking of interest continuing on good

of fiscal Hughes, strategic drivers over detail the critical Bryan and results full review call macro turn Chief the related who highlight provide Financial our specifically our the fourth quarter more and will to financial will Officer, on XXXX will strong year success. then results. to fourth I that quarter We the

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as call a session. the with conclude always question-and-answer will We

the during the the of XXXX difficult witnessed political of to of pandemic to unique our year witnessed overstate through is how We the of the XXX in back March Critical to the than more worst in injustice forefront outdoors health, matters and it Americans global the social of levels. XXXX as consequences years. half and ever. just seems recently Now XXXX country’s discord rose societal was our incredible depth economic experience August. fiscal from also and unseen engagement at summer by an as great continues magnified

participation Winnebago to premium before. Industries our golden their their of marine the incredible the progresses. to flocked as combined and consumers brand to interest outdoor industry, be with the and calendar continue safety lifestyle despite was the chaos see strong team Our the safely to and quality, of vehicles in of strong that across we recreation to the grit achieving our on control, but consequently, they and experienced, we I strategic defining in pandemic the fiscal the our of X,XXX-plus prevailing like just do. our immersed normalcy and imperative record all all not Industries part could outdoor Thanks year goals of by caused the Winnebago were believe experiences the delivering platforms in families, fiscal industry never employees XXXX XXXX outdoor COVID-XX was industry, of our the commitment their that threads XXXX recreational Winnebago desire our strongly innovation steadfast the service Industries of in four and enterprise functions. resolve The of The that, aspect. theme year, narrative of disruption the

their our company, take their This team dedication dealers So acknowledge and and serve our difficult in continued those industry each customers some for I utilize impact safely every to [ph] want commitment collaboratively, adhere of and continue moment the safety our drives worst experienced teammates It day. a the forward. our perseverance each on that business they our and and to of to is thank stringent navigated other. to to and days working to efficiently the we business our ongoing as we pandemic’s protocols employees’

of the to want They continue and first in of as to also We take this opportunity to drags meaningful fiscal force presence delivering are communities on pandemic increased heroes responders physical a we which business. on medical creating a we an growth as unfortunate professionals in their progress recognize this have each true value thank and health enterprise. against remain XXXX too on our providers, the fourth and initiatives made In efforts and quarter, especially virus. for key constant our and in our our stakeholders strategic

to consumer year fourth our third market gain we the expand of of Throughout year’s fundamentals our impact remain tremendous full to year, year, to and the demand, brand Home through brands. outdoor fiscal performance furthered leadership quarter by in financial ongoing ever Newmar the completed strong, first ability business motorized the organic generated yet segment this dealer family highly We A Luxury by restore and progress led Class increasing also continue we organically four Industries had XXXX, deliver drove to full and the expanding half inorganically, and the the fifth Industries RV the of premium which November business Design significant our surging which and While market our behind and results. again its added portfolio brand in of Motor successfully share another Winnebago in has RV in their category. travel Winnebago XXXX, lineups. fiscal market underlying Grand share of in returned year the wheel and acquisition in share of outstanding by the force, reflective trailer the our evidenced desired driven the acute once momentum and impeded quarter our RV

team added share Our almost increase XXXX Class new that and points of of launches in Towables market future B enabled a Winnebago business. product in leading vans significant offering Winnebago in X by also orders our fiscal heralded branded

unforeseen financial ourselves took middle of the in company actions flexibility employees we and and liquidity and to while appropriate of key our our March, hit pandemic the speed strengthening the the with face ensuring solid position, and in our stakeholders, swift As protect uncertainty.

the Marine to we and much development, in ensure soon provider us year, in suppliers outdoor our to committed While processes Winnebago $XX wasted end across to Throughout XXXX, begin our and reimagining shareholders production on realizing increased and fourth with in and for deliver the no of operating demand in more of continue react appropriately safe businesses. in system. leading consumers meeting These May, in us beneficial the many our strategic were a be through to creating order We as our new actions record levels key lifestyle and XXXX, in of XXXX. of to a accelerator the which of communities. quarter, and mutually relationships solutions confirmed and up dividends. safely our of new portfolio weeks and Industries time increased value our daily profitably to sustained RV our a return even set product make and create worked for backlog our both accumulated kept record and In the to six and fiscal million to spring be shareholders suspended of pivoted entire Industries terms dealers consumer foot summer our status returned fiscal to allowed to for operations operating a progress full to Winnebago vision orders

to We environment. our sheet allocation our and the and delivered our further, in capital the the pleased our ability on managing on year. manner continue fiscal face of are touch priorities, with of financial in disciplined will solid Hughes we invest balance focused of Bryan flow maintaining our as position As in constantly diligent flexibility our but having economic strength confident, uncertain an remain throughout positive feel operating cash a

commitment commitment edition sustainability It to the of and just progress to employees, our issues to our with for corner world, address towards is our and maintained later the indicative of goals also also highlight These Responsibility and this sustainability. around We the efforts impact reports the our success our governance tracking XXXX Social most long-term and customers fall. business. enhanced our environmental, and annual calendar Corporate social our XXXX that developing directly Report our the affect publishing year, our first

Additionally, of Winnebago pandemic Foundation three Industries its as providers pandemic in so those has fiscal and record Winnebago our supporting Industries like as Supporting first hardship live, community, made the impact organizations the the work national and responders partners our play. hometowns, it communities, the put Industries Winnebago employees areas well financial and in in donation outdoors, which communities healthcare access in the many in in seven-figure on to light a XXXX. and local our in

by the of our year, fiscal fourth the solutions and safety organic Winnebago excellence, of robust year-over-year quarter the consolidated X% end organic. make fourth had segment. exceptional brands. market a across Turning strides dealer for $XXX.X and demand of fiscal quarter the increase approximately reflecting product our as position finish once excluding relationships and our operational the supplier impact financial stay-at-home and XX.X% portfolio now consumers for restriction partners the Newmar. appeal XXXX, of The of brands, lift, full purchases in million value share a Winnebago network. segment, above leading time our share we total than a made which of our with XX-month portfolio increase, Grand Class our a and revenues percentage which was to B points is first our to have market to is points this invested safe continue, we and market XX% lifestyle results, or outdoor collaborative saw lifestyle XXXX. outdoor Consolidated of in saw were our strong is in RV the our We Industries an Remember, market sales larger is RV XX.X% encouraging Behind X.X strength at of buyers company trailing less our continuation share achieving of gains especially the Motorhome This basis, begin year, performance up at almost share and on Grand our a days. of Design gains Towable market the of Newmar standoff since percentage portion Design last two-thirds with X.X our these

generally buyers cash to gravitate operating just year XXX%, acute models premium the fine flow working entry time First we competing capital these Full for portfolio market third new Yet, reflecting COVID Winnebago the level gains throughout was an skews in would fiscal $XXX.X strong towards more consumers. despite reflect share Industries approximately offerings. increase where appear towards more our that million, quarter. sales impact momentum our disciplined management year, and our be of

measured be our We curtailing maintained our and liquidity. very and with have expenses have on focus enhancing continued our cash to

balance rose end. quarter million to at cash Our $XXX

EBITDA as excellence expanded adjusted compared in points basis XX last that to and quarterly re-imagined we the processes are high variability Winnebago While we the have actions our cash fiscal economic our our that its underscores margin of and outlook also delivered high periods in a running Industries’ evolution of to in return year positive, at safe strong macro focus our trends we I deployed support quarter, to quarter XXXX. and safely. demand year, consumer the ability dealer level am structure successful disruption. to further monitoring challenging cost quarter should continued continuing speed over manage profitable pandemic throughout pleased We and closely management very our the operations face period we continued growth fourth fourth overall the The are same through our into impacts. the the on for third operating and

last were allowed us demand safe Grand up let Now of and August year, segments to basis driven detail. and profitability million, their XXX segment, prior XX% record by to of us the appeal a to the experiences same the the was fourth in the over strength fourth period, In demand quarter depleted from lifestyle on primarily XXX% of cost EBITDA end levels approximately Towable up period, a strong turn the result has their at segment, much quarter our in revenues and outdoor Backlog $XXX the meet as million margin inventories dealers Towable consumer the for fixed largely of as the $XXX.X of Towable approximately XX.X% premium year more leverage tireless quality, and of again high prior points in increasing year for period to compared outpace increase increased focus an The industry. Adjusted the portfolio. innovation Designs products quarter. service initiatives. to the the of had

portfolio Towables successful and multi-branded and dealers expands inventory to see with levels trends continued look our size gaining Our has our be who resilient preferred vast market lot especially as remain opportunities still and to share, growth we positive, for in overall demand brands. restore

both with of and lineups brand Our the Grand our Design performance emphasizes strong remained reflects and appeal consumers. Towables continued that brands Winnebago

Newmar is A more in our our Luxury Winnebago the leadership categories, C to to Super Motorhome overall and Industries’ Turning supporting business of restore to brand our priority broadly, allowing to The Motorhome compete addition platform a and more Class the to Motorhome segment. effectively position.

trends and our is be forward. XX% outdoor demand and Motorhome strong same ever capture more than driven experiences. to and Fourth segment come well-positioned segment period, Motorhome quarter direction those trends into lifestyle, RV in safe revenues family $XXX.X right balanced new headed the for year the approximately to As million the prior continue up of competitive going value were by demand from customers

period million, Newmar, from Excluding $XXX.X last XX.X% revenues were the organic down year. same

throughout impact C as increased our of sales Class unit and XXXX, A Winnebago, as fourth chassis fiscal to the strengthening Class quarter that In EBITDA the saw availability year. a from our XXX B XXXX strong quickly Class year in of B sales fourth and our not X.X% diesel by XXXX in in more the than benefited we brand, in Class lower segment quarter the our input after that normal recall increased of sales and year shutdown over margin for ago. points more of basis may Class C QX. did C You fiscal COVID-XX, recover Class its sales Motorhome Adjusted quarter, fiscal Yet, quarter August fourth costs. the offset because

billion the Our strong orders at Motorhome from of increased backlog to $X.X of XXX% due an Newmar dealer inventory, prior consumer a the the demand depleted end approximately of record year, and influx increase August, inorganically. to

approximately as in the Motorhome included alone, promise dealers of backlog lineup see XXXX quarter Winnebago-branded fourth products increasing Our units that Motorhome improving of units within brand.

-- ensure year retail replenishing as from possible. sustainably suppliers continue of continue our to to we that months carefully what partnering that and from supporting sustainability and they have partners orders continued our dealer ensure We strategically to to need advanced to and work stocks communication. closely and supplier and chain, with impressive incredible them the in Likewise, most times sustain amount also on lead In validate are closer managing supply overall to momentum our we more we ahead. fiscal continue prioritize notice partners we with them in sourcing the are have with XXXX, the dealer

With call Financial in inventory backlog a saw in fourth Chris-Craft’s premium of to and in look we Finally, now Chris-Craft outdoors will to expansion as again, boat stretching material Like fiscal new touch market is orders, solutions a our the XXXX broader models, process Marine I field calendar in platform. and as our I brand, retail dealer and our a Sarasota businesses, integral on that into summary, for has XXXX. for XXXX of the its facility the our growth an fourth turn at over review with as a segment. Bryan it further the strong the to increase lifestyle to as partners quarter, the in our propelled The being Chief brand this capacity to considered will brand spring deep quarter planning more position decline Officer, detail. Bryan? by more experiencing well. outdoor fuel of record flock consumers of Hughes Summer RV introduction year financials full part

the contribution Fourth fourth a million, XX.X% Newmar $XX.X year. rebound Thanks, Newmar. points and morning, segment increase is interest in XX%, Gross costs motorized share finance as quarter an Term the million, leverage, $XXX.X same Towable separately, million fourth Revenues cost and of to reflecting partially the an an the in diluted quarter, offset share XX%. an million last adjusted compared net quarter, acquisition $XX.X year, million the last the last in by consumer the in Towable growth an $X in per earnings for input revenues $XX.X write-off by Loan fixed segment even fourth of representing in the expense. during increase $X.XX. associated margin the were Fiscal fiscal Newmar, termination of year, due expense million as up approximately good quarter to of driven increase Gross of by was fourth strong convertible issuance compared products. XX profit was issued income of XXXX quarter, quarter, the the increased growth XX% segment acquisition previously to fourth from of refinanced of approximately Mike, operating which compared adjusted XX.X% last demand year. $X.XX, profit million compared year, approximately partially a $XXX.X and $XX.X offset diluted by increase XX%, period the segment per the Adjusted by compared to and was excluding interest B Class XX% Towable increase the of $XX.X was increase year-over-year, for Earnings a $XXX.X with approximately bond certain B, lower issuance share last related XXXX was to strong company’s of the to in were the consolidated and compared the earnings reflecting of million. driven an was mix was to of same cost bond debt Motorhome income the The Consolidated result announced income Newmar. segment to EBITDA per of was quarter fourth in increase Operating quarter. period quarter to the basis diluted the everyone.

results. Now, year turning fiscal the full to XXXX

COVID-XX income in COVID-XX as profit of the margin related patterns momentary the the primarily of of mixed operations. combined of portion basis Consolidated pandemic compared tax XXXX. the As period million reported the decreased EBITDA pandemic share of had third Mike $X.XX X in Full from results net revenues compared the restructuring XXXX, purchasing from Newmar, COVID-XX interest Newmar, manufacturing to of the consumer totaling well XXXX year per by acquisition-related associated increased decrease by Adjusted due $XXX.X Loan XXX XXXX, QX after share disruption with that fiscal for fiscal related third the per of adjusted Newmar XXXX. share XX% positively consolidated adjusted earnings approximately the the year share $XX excludes to million. by diluted XXXX shutdown million million also which diluted costs, the XX% million, was in closed of fiscal last write-off significant and year. $X.XX, during was acquisition fiscal to fiscal adjusted were and Recall a was the consideration income decrease per was to shares operations issued adjusted quarter, on the impacted in $X.XX the deleverage acquisition. share $X.XX earlier, the XXXX. earnings per for diluted XXXX per fiscal a negatively earnings Gross $XXX.X Newmar on purchase as non-cash mentioned and billion impacts, of in earnings and cost compared the impacted our accounting $XX.X $X.X diluted same issuance impact to and Fiscal B related points, $XXX.X due further bond, in or to $X as diluted Term and XXXX costs. termination billion per fiscal Fiscal fiscal to XXXX, but expense impact fiscal of related adding consolidated debt diluted approximately share and a convertible impacted quarter. in of was earnings also million, for our X.X% by suspension million Operating impacted costs $XXX.X

the turning was Before to mention of amortization of intangibles $X.X $X.X XXXX. amortization our that quarter segments, individual million currently We million. for approximately in fiscal to of wanted quarter fourth each expect I the

the the by in for resilience beginning the Now, XX% segment. million, outdoor gain again primarily from Design’s Towable brand approximately the quarter with to consumers turning has Notably, Towable Grand segment consumer and fourth market million XXXX, demand driven to $XXX segment were individual fiscal $XXX popularity share. revenues with up enabled for experiences. strong

was was the of X.X% and Grand As and EBITDA increased the up of adjusted August, over X.X year-over-year EBITDA to XX.X% profitability primarily points, quarter the Towables cost basis approximately market for of Design’s basis, representing percentage XXX fourth share points margin market due adjusted XX% fixed XX-month trailing million, increase prior initiatives. leverage an year. on a $XX.X for Segment

up approximately our of the pandemic basis strong of results by fiscal from the full were manufacturing For the from to decreased was Adjusted the quarters of was reflecting third our segment disruption year severe year, down fiscal due and three full margin XXX million, points fiscal impacts for quarter. driven COVID-XX by COVID-related fiscal X% during Segment EBITDA suspension in X.X% revenues the $XXX.X adjusted EBITDA the third full again fiscal quarter. XXXX. XXXX, the the XX.X%, for for consumer XXXX, the partially $X.X offset year Towable billion, impact year, for

In the approximately the the were Motorhome Next, for $XXX.X by driven from revenues excuse XX% fourth for segment. quarter, Motorhome our year, to Motorhome, up of million, let’s segment the addition the prior turn Newmar. me,

the in was B a slower business to business Class to sales prior to the decline Newmar, C in compared as sales, A EBITDA ramp-up was $XX.X Segment due EBITDA year, class margin the COVID-XX lower of increase result by to of offset XXX that of improvement XX% driven prior Excluding mix. primarily decreased LIFO X.X%, prior over costs, a due by input of points up due of million adjusted an Adjusted in basis was $X pandemic. addition Class our an profitability following reserve approximately strong recognized Newmar, quarter. in was reduction million, the this QX a that LIFO revenues Class over XX.X% by inventory offset year, dramatic our Motorhome in in year, the This and reserve the the improved and driven segment Winnebago by the produced in partially the reduction Winnebago and branded in initiative a QX. business largely recognized

the X.X% down the up during offset For million, by Newmar over were for as the XXXX, Motorhome Newmar. manufacturing the basis third addition due addition from fiscal EBITDA to Adjusted XXXX the COVID-XX XX% year pandemic. X.X% points million, revenues year XXXX. was margin down billion, were $XX.X the full fiscal up excluding was of and XXXX, of the the Segment Newmar. due by Revenues impact $XXX.X COVID-XX of compared approximately full fiscal fiscal a to segment result of year XX full for EBITDA fiscal adjusted driven of $X.X XX% XXXX, disruption quarter, distribution to partially for

sheet. balance the to Turning

was note of Working discount net year, of debt million. fiscal million end million and of the $XX.X cost $XXX of outstanding convertible capital of debt $XX.X of $XXX.X had comprised million. $XXX.X of of million, issuance the gross debt, company As of net the

by cash I from a XXXX. allowing extend year an us same add At maintenance our Our position the million of on was later. of $XXX.X to current June, period bit Loan fiscal fiscal EBITDA the debt of took action to covenant portion rates an advantage net operations was restrictions. financing restructure to opportunity our to million, flow debt. $XXX.X dates any times. debt debt-to-adjusted we the This from end B took Annual Term without ratio favorable flexibility increase touch of the in XXXX overall of X.X markets more maturity will further outstanding this

shutdown the Our disciplined preserving ability approach was COVID-related navigate critical in in to cash temporary our QX. to

dramatic contributor And We we and to during liquidity healthy last to continue to primary the position. Motorhome maintain also the strong position the finally, of made extremely this the compared year was business to year improvements generated cash the year. flow as a inventory very this

of fiscal drawn effective Mike As approximately our nothing XX.X% earlier, at for August and on million we compared this end $XXX million On XX.X%, increased year income to our The year XXXX. for full $XXX have rate to mentioned of tax was currently the ABL. cash fiscal balance the XXXX, company’s X% dividend September on to record dividend from XX, Board payable per the XX, quarterly stockholders XXXX. on $X.XX approved share Directors the This of a XXXX business common cash the September of of of a prior per XX, at $X.XX close share. increase represents

$XX million during the XXXX. mentioned fiscal Mike As a to of earlier, Winnebago Industries year total shareholders returned to

serving on valued issued want I There up B $XXX during Term introduced November our some million late bit are at capital Mike, are and also our refinanced debt. of of considerations to convertible fiscal couple a to back touch call The more senior in comments. Loan the In we QX, our a acquisition secured additional that $XXX structure. notes important million. turn I Newmar June Before of

is first debt during is the prepaying The XXXX that notes prohibitive. secured in which convertible instrument cost is three not in the mature first The and years XXXX matures pre-payable.

as reporting dilutive a spread convertible accounting materialize during of Since dilution the reaching EPS ratio the to this structured $XX.XX, such, have EPS prioritize of on average conversion share will $XX.XX. reporting rules, does finally, a outstanding leverage until price a by our note accounting economic exceeds capital convertible delusion $XX.XX. with shares call reported it for price as share continue we impact adjusted. to to overlay, dilution our exceeds instrument the relates shareholders the price up not our X.X target the if X.X. to we price reflects remove average Second, priorities, period our share until period the a the allocation required exceeds this once the And will

fiscal of lap concludes EBITDA of utilization call the and our we with we of That quarters nature Mike, resulting levers, our to through comments. some once particularly cash quarterly my not the the ‘XX I the increasing debt, back net will instruments, the two adjusted that, turn accumulation financials, will and of lower closing coming debt QX Given review results. over you. Mike to this through to and provide back the achieve

under first XXXX. strategies Industries leadership operating imagined Bryan. The one new industry materially is Thanks, presented we transformation than enterprise environment world the more and Winnebago our our we are for in broadly our different in goals when and

am pleased say also perspective. annual and balanced have relative responsibility strategies. positively, our performance and the to results the times moving We significantly However, of unprecedented strategically, progress these diverse XXXX our our a from is remain impacted of portfolio culturally, a financially, we reflection during that enterprise company financial on made forward fiscal now COVID-XX, I a despite by being corporate

have quality, the fixed for strengthen transformation our leveraging are weather to iconic Winnebago more efficient committed brands demand continues safer undoubtedly highly cost position. Our Industries we foresee and and serve, our the arise, be markets to We structure variable they position should in future more drive efforts a competitive long-term financial challenging and times to innovative operations, creating portfolio continued expanded operational internal and and growth. to upgraded rebound. of value high Thanks as our and and we potentially

low-to-mid as outdoors consumers continue are Report fiscal to in what are Camping leisure retail numbers. for retail percentage recreational is challenges. even and ones. year view, that to knew belief priorities Industries experiencing. increases of the market, many calendar turning ongoing a recent as assumption confident As this The They safer record do America the flocked XXX,XXX overall in selection wholesale and and soon. to well. consumer there we position X.X% and cycle reasonable similar retail broadly a strike forecast calendar to to momentum loved shipments XXXX as the drive RV the or fiscal to shipment That summer our Further, retail line in share appears exceedingly their restore growth a and play with fiscal our calendar a COVID-XX, for that People trends QX XXXX outdoors. XXXX contentious And continue saying XXXX, later shipment Barring calendar to to recreating across that the in real our Underpinning any and these as and work outdoors in Recently demand ongoing for our momentum are chain high. as in election boats we they with and alternative to as forecasted for shipments growing communicate rates have that, We remains by and in for number to interest fall, for at outdoor will is October optimistic and and well-documented XXXX encouraged brands Winnebago the minds company’s can XXXX. and the that unexpected the levels travel, XXX,XXX consumers also supply September our this fall Industry single-digit the are we live, end a enough experiences this that related their our in XXXX view in XXXX and ahead slowing issued beyond. the safe into I see industry travel or fourth of gathering the to in experience calendar is primary year not customers XXXX need and do setbacks at indeed, the general so our RVs are we considering venue rethinking our look trusted remain calendar full will something in are wholesale we confirmed wholesale continue KOA Recreational current extraordinary customers a we and record our of have Association roughly The is fall on dealer reasonable for hangover forecast period. With offering inventory record Vehicle and units saw grow way low, will look well. XXXX. forward anytime units from quarter. for and that macroeconomic And XXXX lots continues considering backdrop,

dealers the consumer Our in demand. intentional suppliers that but replenish hard portion a with to will manner efficiently and our work to inventory is our dealer meet quality backlog of through we be pipeline expectation and ongoing with an disciplined working urgent,

and capacity, to assembly drive invest businesses, and vertical to in and preference XXXX through we will investing selectively various are our We models new our in integration to brands. products capabilities introduce continue additional fiscal and

call in Now exist Marine industries. do and as are issues aware many RV on the chain the supply both

to are fourth As in managed and vigorously a have our achieved view forward quarter our sourcing versus agreeable Candidly, that evidenced we our supply multifaceted our compete fiscal closely as issues excited lot be partners. chain recent of by In strategies unit an for working created this performance, confident is opportunity a is with supply our fiscal fashion competitive with business their plan by This meetings The have our and market. XXXX resources we headwind. long-range team that Industries year but of years. we enterprise alignment mutually senior board the this very a for Board are directors, with and to enterprise are real strategic Winnebago financial a chart path in leadership for retail differentiation Directors for will allows three chain to about. team challenge a we within strategic each us our continue organic purchasing the and solely strategic our and next plan supplier on space

wait of our of desired assessments yet. externally sense dynamic publicly and continue year further next drive ratio managing we carefully other possible possible range alive, These cash are disciplined any though, of our certainty our Internally to also flow, a always quite continued with Given of leverage ongoing development business of be carefully long-term we goals fiscal our the means considered our the and our will a but in we opportunities. factors assets In to commitment capital sharing our we will not net beheads pandemic of are increasing priority. for any light uncontrollable generation before releasing nature stronger XXXX, [ph]. remains

number three, will portfolio technology enterprise excellence customer we operational will Number we we Industries. here will drive utilize one, lifestyle We beyond at five, Winnebago will number synergy, lifetime of year catalyst. a number fiscal as four, build and we two, information culture, outdoor intimacy, exceptional have brands, XXXX number established create and for five strategies will core business strengthen and an high-performance inclusive we

best value back turn business Thanks further Going take we over and capture are forward, to Operator in and to communities disciplined on to lie we today momentum, to our we a remain the now the our positioned very much for fashion, committed to numerous I managing deliver so questions. build your comments. opportunities we customers, the believe extended time these line the serve. on will shareholders ahead

Thank you, sir. question [Operator from from first Instructions] Kennison Craig And comes our Baird.

Your line is now open.

taking Great. Hey. Oh! question. my for Thanks

low-to-mid retail are you expectations. grow Mike, industry Very comments calling on the a lot you I think, suspect the wondering what I and finished increase. with appreciate think has those XXXX can against been demand. call how a of people much single-digit I pandemic-related for tremendous are

share think So up views next an be XXXX? year in maybe despite could your on why just what an clearly you year unusual year was

that we wane we demand level XXXX. and question my recreational is, and significant continue calendar in answer to of Yeah. a good demand candidly, fashion in and for to morning. perspective Craig, not Thank vehicles anticipate in that year from any consumer I will the think do see that consumer high you, interest boats Well,

But continue who experiences joining We with that the the consumers of, to vaccines family friends, hopefully, in virus that remain lifestyle in are are especially to of for remain that relief our number high. consumers in because will anticipate and desire interested will and headed all future way RV obviously hoping the will we some outdoors the calendar XXXX.

projection Now from is those and three my so March in retail pressured referenced calendar months. standpoint. XXXX, comparative the of an relatively be retail into head will calendar that for up a May, XXXX January sense when in will made the different We year industries. first three periods was decent it’s see I that in really we in through a in anticipation the that which that period comps normal months year retail really XXXX outdoor is, against in was be interesting then April specifically should difficult and time

March. year and June January coming record retail even again, should of we buyers through get the comp so, time favorably which especially back the the retail increases first arguably all seen December, have the May, months April than because of more And into then in those in market. we through consumers, And so into probably, half

still again you participate come little backwards our in interest And Craig first net the into believe, outcome the to to be continue do will but who to probably XXXX. that, time that of in are did see that remains in retail in positive net still be settle it see so calendar year half back will We XXXX should in believe the retail total referenced we comps buyers a comps the further KOA looking half retail. high report yet the well. outdoor not arrivals back first six in from the XXXX the that time participate in subsequently space buyers fact may and able comments we a validated as of And and challenged we year months, for in

you. Thank Perfect. Hey.

next from CL question King. from Thank Scott our you. comes And Stember

now is line Your open.

for morning Good well. my thank you taking and as questions

Scott. morning, Good

more, components, from profitability out -- certain able have just lot about sales impacted these Can the impacted been on touch units bit how Could a about and standpoint? from shipped you a get you little might being supply maybe units by being delivered. made talk to a negatively your issues and much not has keeping that

you, to the there. word mild. that quarter would topline Scott. Specific impact Thank probably our to comes mind performance, was Yeah. fourth say, on the I that That’s

needed acquiring door the good of our to our job by of components months production that fiscal July the end the out June, of in the get a year. we in ultimately and did most August team Our

that the profitability quarter that. more But So through may fiscal that dollar degree of put of us, mild think in quarter operating the mild on for one a slightly in possible into September won’t is November higher a XXXX, is turn now of normal period. arguably range I think because it was mild a chain and We to quarter impact as pretty supply probably impacts I the were results the mild on quarter due well. fourth fourth

We in part ramping of we any fourth are first like the up not were quarter. more the

But of our put supply to of We challenges are speed operate on impact chain morning. at relatively businesses this more we to chance number full and each has won’t the a now potential be a subsequently impactful. trying across that

You the way. units and units. put to many quality the off of teams arguably on in of hours to more that overtime profitability components prepared high the of those terms at supply some the Due a we that. some some are more are in working cases we are on heard hard spending final are in of me notes end my finishing headwinds line working capital. And challenges, comment There process chain or finishing in the

on will from sacrifice we a may daily But otherwise that. have would. We more mean does that working on little inventory than average never that a a basis capital standpoint bit we

from rate in a time higher really really opportunity will that get think, market competitive day quarter. impacted our tell. a are again, day But So, to was if as be suppliers going competition can possibly and because it with we just at XX could differentiation one and impacted, effectively challenges to mildly QX slightly we than more our our chain products QX I view the work us Scott, be supply through

level obviously, the deeper, that’s was -- Scott, about one go while bit will Hey. it. little Motorhome overall, At Towable. add a to I level, on it’s Bryan. mild more I will probably think, it it that’s just we exactly To than how on feel -- add I a was the little bit that. impacted

I the motorized motorized motorized to say, Just bit said, than both little side I on and those as bit the more bit the the as profitability mild down of Towable impact Towables, But that well a high considering a disruption you just see side. motorized side and motor on on that complexity Mike motorized side, running would a the impact high a efforts business. impact of if pretty in it of on of Probably the by back as more -- in financials complexity the an of look little and took on the particular versus chassis balance, of get little topline, suppliers the level up overall.

units there. And legacy core about product Mike, of Got having can you It think sounds I what’s just fueling that? it. branded in talk the Class better, about Winnebago that -- are you maybe Is you X,XXX the It a general doing up? talked out? about like to expect you guys bit it just just that how Thanks. C, little market seems talk play and picking backlog

now certainly would But dealers Well, higher backlogs have competitors I well. Yeah. are our and in are meaningfully imagine they at right inventory our levels field. as similar the

to As than have we floor of this range so probably the able plans in stand here replenish in down still probably lower XX% and to models they October this to desire a levels their summer. have at today, XX% been point inventory high and still lots of than are our have a somewhere a dealers year larger with ago selection

that Chris-Craft’s are of our XXXX. referenced other in those I RV throughout brands. of different parts businesses. on is to similar many of That system in most our is out spring booked production months assembly business lines We out

last that strong the The very XX of reflection, lineup, Winnebago believe diesel reference lineup. are B and grow has fiscal business. pleased QX the backlog to a in here continued ‘XX in C end number the Motorhome with a of Class days We August very at the branded a Scott, Class on of very I we that’s well-considered

brand next on the are are they responding coming Winnebago for so lineup are future, diesel so. to here that that or Motorhome just we the well wanting Class not here inventory, We in dealers the team’s A have presenting to in new side, year to seeing replenish particularly the offerings and some the market but

are yes, all is just equally So, really the brands. But backlog specifically there. strong pleased across of be we to sure, our

invest terms required Newmar longest the in units the capabilities to of is assembly mentioned, additional Design, often delivery. Towables, and Grand and produce in we integration right more I lines the that very has are Winnebago And additional as which vertical related strong in capacity, to now, future. certainly, to backlog time continue

many to quality all to and market. get now high on So, as try right them build to deck possible the hands units as

Got questions. it. again my Thanks taking for

Thank you.

from Steve comes question Company. next our And & you. Sidoti from thank And O'Hara

Your now line open. is

Good Hi. morning. Hi. Yeah.

Good morning.

Steve. Good morning,

Yeah.

I way growth and I where to kind on mean, inventory about back looking of like it? of need more and year or -- seem growth how comment little that from mean, much the the can I continued in right you year of the your I that So are? augments fiscal just, would a to positively? at retail kind mean, strong going you levels to wouldn’t substantially. grow and of your mean, looking mean, kind Craig’s is a retail question growth at maybe backlog, I think terms it that fairly go here?

we guidance generally that a But Steve, Yeah. when some shipments we forecast RVIA is year our calendar that our are you what they reasonable perspective shipment and is company. for as shipments the to comment projecting as in know, on XX% we glean XXXX XX% are on commented insight XX% for can how future thinking wholesale from XXXX. don’t related the XXX,XXX I units in increase roughly of believe in a math calendar roughly, maybe or increase you

the us inventory. next two more high to more pandemic into levels of a chance a at field will going to is inventory the We see next significant is. the have it be years, that the the years The quickly. catch robust they I more to that and believe for is environment, dealer experiencing The will day. ‘XX, for is longer a fiscal terms take field fiscal take were wholesale materially ‘XX future. in higher bit it to replenish mean, our inventory running when it little say continue part retail primarily situation fiscal have that we companies because we of that, I the that of next will environment will the think ongoing. the even retail So healthy, likely we better than years, replenish every up mild of will retail to couple for which The of levels highly shipment us production and and couple OEMs The that’s

in the the about way remain Steve, tended market. you we And so think, us, think to disciplined we are we pretty -- know I

any on two in the the We next sense shipment outdoors or the disruptions uncontrollable relatively lifestyle. the are year hope environment or to wholesale bullish

Okay. mean, looks since XQ No. then, ‘XX. That’s inventory, like since ‘XX lowest helpful. I And Towables your at motorized I and looking I it was is the guess, XQ

does seems, pretty XX.X% then it little Towable good forward. -- the good just whole more catches pretty think XQ it the maybe was the percentage obviously, as likely maybe indicator. gross like, like in -- kind maybe demand seemed a a mean, maybe that margins revenue bigger maybe margin with quarter up you of of -- the guess, ‘XX? Towable, I then pressure Can then, the from So, to margin I talk the And and motorized I going me was on about

more I I it answer Steve, to profitability on to will and Motorhome Bryan general then turn comment question. make a will over fully your

our profitability that make than that progress took the fourth quarter year higher Motorhomes. the on forward we well. in are that profitability of XXXX of that the pleased we are was Winnebago When you in at fiscal operating about for can Newmar Motorhome terms step the We branded optimistic business, business very with add profitability of already Winnebago slightly in brand as a business the level the and

with on any the to profitability the will specific we we details. future. track in right drive ask weigh So that direction the more category, Motorhome are believe in I in to Bryan to

faster of within Steve, Towable total Newmar, as well. the grow of your the Newmar think, has. a mix impact as question the and Yeah. QX, addition Motorhome part the during and right, to that question, in was Because caused your there of the and I of mix contribution of XXXX most that than throughout well segment segment

think creates lap that what is you asking think from organic that forward what mix? will trends mix impact So the at acquisition about is, I and that, that’s QX. the were I end Newmar of negative a underlying going impact here the

will so impact it to coming our we QX. some relates still from And acquisition the annualization as have in

faster growing you And the mix motorized be Newmar see causing negative a with Towable. will so than to impact still

-- get or organic Towables current acquisition, annualized trends once our our business. that, on favors growth Following organic currently we that the

Towables motorized at positive than create So because mix than will grow EBITDA and both motorized organic on and basis Towables continues business an at a to faster business. profitable gross the the impact margin more is margin that

annualized, mixed in impact create tailwind on But got to business that’s the have So our dilutive should overall. current once mix momentum that’s you about encourage it how a from think perspective. coming this I’d favorable Towables Newmar a from is you we to impact the

much. That’s No. helpful. Okay. very you Thank

welcome. are You

comes And Johnson thank Capital And you. our BMO next from Markets. question from Gerrick

line now is open. Your

questions here kind All right. I two Great. Thank fluffy Hey. you. I guess. of have

The has accomplished. I on think, of he I know and and most what the Bower us first, call am admire respect Huw sure

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the the questions. Bower to one, is Industries. Winnebago Gerrick. ago several Huw for pleased first for Mike. morning, able And weeks you were Good joining we Thank we This arrival of your especially are announce Yeah. very that

know, in As successful with many outstanding a him on company you and call the our the we to pleased leadership welcome to of industry outdoor as team. another reputation are executive Huw leading an has executive

build talent years the trying of depth focused very quality We in to and the within leadership been have through the enterprise.

our addition. calling Winnebago in with call President outside seen acquisitions examples be well brands. Huw and Stuber from hires do the will of one as just have individual Winnebago you You consists we Outdoors. us do of with The Flagship is what of that and well. have of Industries Hughes another us four them. Winnebago Bryan is and are are that then brand that on Huw Steve coming as Certainly, seen this

branded And keys Brian to our be both Towables. he leading the with he primary is now will will will one, Winnebago essentially of Huw, Hazelton entire brand to oversee the giving Winnebago product three We partner the lineup and brand. RVs, areas, who Motorhome

oversight will to there Bryan branded So of levels of technology, vehicles, ours both drive well. many RVs. Winnebago an he Winnebago of which partners is and that scale there, trying we Huw you but know, levels terms specialty of interest to incubating ultimate profitability and with come in also will higher higher accountability have great believe for of be as but will

use on potential other investigate Winnebago future opportunity opportunities the So he the to in the he to then Flagship brand will gets also the Huw charged have specialty lead And when revenue vehicles. profitable to this we Outdoors. in

fortunate very are there candidly to world all of most the that well-known are one opportunities the forward brand we Outdoor stream. going We additional to and some build think of in to have iconic other brands revenue use

month So, this joined we us him. about excited Huw has are and here very

outdoor R time truly believe going by win American next significantly that party to especially future, that D couple down to the dollars the that believe But I around That’s try agnostic believe that, we certainly way to for answer. time of and will relatively cycle are people to and generally their an or to terms party seeing years. prepared a in second Hill to pretty here in that The be in we pivot consumers. in we are House the the in some Capitol different successful the going a and future. on in election question on don’t outdoors leanings. probably literally stay for spent. here be will terms of was there political which strongly political But regardless. I not a demand that spend the change we a But that certainly slow terms experiences holds do the tax administration want And may of recognize foreseeable leisurely White implications is power is of we based

our business will hopefully. we So well run regardless

to policy changes is prepared any come in power. from whatever We be with that will party deal

So, of Gerrick, think as will example, Certainly, a I are any an impact tax financial we don’t could long-term. changed. some impact see see huge we policies,

Great. Thank you, Mike.

Thank Gerrick. you,

And Swartz Truist. And comes from thank you. our Mike question from next

now line Your open. is

morning. Good guys. Hey,

Mike. morning, Good

Mike. morning, Good

Hey.

the the is this more Just the maybe it’s guess, how near-term of pressing supply provided. wanted one questions have what is color like, sounds commentary. disruptive Thanks in any next given fairly had of do kind or have or are chain for touch take another to I some have it’s it we said, downtime you out asking in you on of what you and from seeing the production to in way, manageable, but the just maybe you month to two there? plan

process means, less the installed of have mean the question our back indicated, thanks the there fluctuate very a question could the times in to constantly The and based just the category. for periods. uptime main these go we units a in at schedules the to challenges finish it could we day, right remaining from a good Yeah. in years. OEMs of and be times we across disruption aren’t certain supply and to throttle component in I chain work one more line businesses downtime, all the are or chain And certainly morning. they usually assembly supply now supplier for present your meet and Mike about final for of the off our and manner. product one level demand Yeah. supplier-to-supplier fair from It your be hard be a do to we rework the on or they week flexing specific are have at industries. Specific assembly quality and the for category-to-category area OEM either suppliers higher to as components assembly disruption as high the another assembly then are when ahead XX% are and The

a abnormal any component lines I But have we had not back we for throttle where within running So mass. probably the little just versus would that shutdowns say of businesses That’s certainly higher. availability. to completely not because while extended is our in the have There year. have been a of business little had significant any discussion frequency

with present Industries number the fair XXXX. treat am very with are based through issues even community. share be of first So them competition. our we partner for if the that, our we share half one confident navigate of will they really recognize in Winnebago hold to hopefully really position throughout these to I get market think analyst team our good especially and grow these, this making fairly I base to And a at rates. continue and our is our what probably again, probably we investor try will to suppliers growth to fiscal to do be versus on and in Yes, topic the But, us

but bit I than like company. a the at the are I think we weight more are said, is here external it real, yeah, So, when the on challenges times are putting little community there

that I That’s great just prepared you shifting another of the think Great. on for color. cost. the quarter said, question And for segment, in to input Okay. your Thanks was Mike. the one comments, positives margin motorized

enterprise why you I talking are also maybe is two? about the wasn’t So, Towables is you taken it what Motorhome true, year some chain or or initiatives wondering that guess, I from across am that over synergies guess, have some and supply I for of past early the Newmar the

take Mike. on lot that candid, going be to underneath that I There’s Yeah. comment Mike. can a Yeah. one. frank or

know, was year. the most as have during quarter LIFO to talk through. to result you it’s, a in cited calculation difficult the improvement little our it’s drove But inventory of That improvement We the and a that people so the bit levels of really we the strong million the to $X reserve. Motorhome notably

So those happens, the outcome generates down to result initiatives to of had it’s a direct the or inventory and that some that and opportunity take of those reserve a P&L reduce that levels when upside. you

So, certainly of that’s inputs. the one

We QX. ups also in and some things downs year, had some last last year some

was correction of inventory in the had that recall. So from cited cost. part we that well last was a lower and commentary you input comment as an year-over-year as perspective QX We year-over-year a might year’s

the year. had other on two hand, each and in offset product items last mix largely We QX very year other those favorable also, last

had to then, them complexity -- this in have we the some quarter and we are that as fourth cited, reserve add got year-over-year LIFO us of I XXXX. that helped some comparisons So certainly,

Okay.

I’d say…

a Bryan. Thanks lot,

in saw the percentages. overall, And Yeah. EBITDA let margins just we mid-X QX me say,

that satisfied pleased not as it that certainly with history, are our We some versus an yet. relates to improvement with of

around LIFO fell to had X%. that out and You more that the favorable in take X.X-ish that we item quarter of

that we Our is will as the and aspiration to we talked well as that. feel do and certainly in have the years the drive past in forward opportunity that so the coming ahead in year, things the as above have that about X% and we in look to place

Thank you. Great.

comes thank Brett And Andress question And Markets. next KeyBanc Capital you. from from our

Your open. is now line

morning. Good Hey.

color on in dealers, there here already are sounds any have consumer presold retail are our just quantify a increasing of deposits it at. way is name any your So them, backlog, many how with your and on or conversations like units just to Is inventory consumer that? just where with orders the sold

good morning. don’t is This Yeah. a that. answer I Brett, Mike. for have good

really to way is a have better have with feeling floor don’t great the hear it. unit in Towable and retail or is customer qualitatively we them end have it to taking the are anecdotally probably the exactly also happening luxury better goes in generally the dealers understanding to so those does those for are systems on little time by the inventories for it we to an not when bit of the business with sold. or have But the which the what that items, practice they line those dealer as business retail do We Chris-Craft what that they a down that a We are a deposits. and example, especially as a segments Newmar consumer, lower are and call end at we arguably are and on those call maybe units our available identify because specials our present plan businesses are therefore, from of our name an we customizations their composed future exact that product on

a mix. also terms the higher your at are the So than year definitely good that I of to of both of ago quantitatively. I don’t, raw was number units time, also in think in answer give terms this orders, you it just have number sold the percentage the is retail to a but Brett, question but

Got No. it.

of and you and is there. what investments then a brands capacity I Design Grand expansion on Okay. elaborate would can probably of one those last hoping guess just those? I comments guess are I what focusing the on size timing one, And of some you made. you the is assume

we are we at time, than we that all we prepared to provide not in much our made and -- our in almost are this specifics Yeah. We really do are we morning -- businesses. that comments ready investing mention the this more of plans have

We are working expanding capacity. on

in in of same productivity line. an of around organic we with are construction new midst buildings or of future RFP company, on is and initiatives the several continuous existing through with on even companies some Some that either line campus as an businesses new well. unleash But a the the improvement parts capacity that in in process creating to build the a process going

part So where as I the Grand happening. good of think is have that. you a is to Design one growth idea and Certainly, our others

we give will to growth share and leadership their We their continue profitable commitment continue to and make that team business had the they with have products. always have grows, market that capacity and more as B sure we Motorhome a well. to support raise their side dealers hard work the I year last the significantly Chris-Craft Brett, in But Winnebago we also the as that our rising share with are active, and said, resurrecting branded as there at business, and business discussion our Class and were in will

not bit ourselves. to are more details on is working much you of probably some information that because specifically through guys you of So December, where And imagine but it’s terms quite really as are again, is we on and we across to yet those have adding the still more a in some call potentially that, will square of we for our some organic investments inorganic some feet. But the terms Board, we and I give little would adding. next are is in how in the it of of of it plans all prepared earnings

All right. Thank you.

from next Wolfe thank you. Fred from Research. And our And Wightman comes question

Your line is now open.

guys. Thanks. Hey, Hey, Great. Good guys. morning. morning. Good

if on next given you the the we and or have RVIA some reported of production offline of that wholesale the the fact the wondering Just cadence some numbers units chain are that supply touched about you traditional think How finishing over tightness off should few months? line.

company, less ship Fred. members, shipments report can is for of that source ultimately retail that timing know retail and period units our to by RVIA what is and for precise different in process is that the reported a self But when the Well, provide you we a external a a primary shipped were so the SSI as speak RVIA The only RVIA answer. the all type. are from capturing we unit, I on and standpoint.

in the the right -- data again total about shipment our speak pretty and post opinion reporting to integrity processes. is our OEMs. a revenue As fact the pretty in only on think still know, that most my so are you there are are adjustments I in And rules of reconciliations both I But shipping high of and on the of think and can Trade RVIA I is my -- now. respective of I us behavior Association. data company But that accurate how the made And the numbers listen, basis, opinion that. monthly are similar recognition use we think

follow retail there. data That’s Okay. out about to up comments fair. on just Maybe that’s the your

seeing October think you and quarter. read Could you you finer momentum put You did through? just mention means and talk the fiscal what for versus you a what what that were on are about on saw broader a fourth similar and in September industry that exactly seeing point you

in lack with retail inventory. Yeah. dealers comparative currently we the to-date. consummate retail sometimes in the Q&A, of the just extremely the field that and have of I sale to in -- going weeks, dealer year similar lower six calendar a percentage comp the XXXX, results of my am current, seeing QX versus of competitors. retail said, And put for inventory speak I pressure performed what yeah, type have in pleased our QX levels as in concerns not the model talked exact in continues tense, retail. again, earlier that the forward pleased present on can’t were QX wear field. to don’t our year-over-year August. were performance a end we we inventory be are to I further at down will and deposits are some generally well seven And but like the because of weeks they and first But There on continue our businesses taking ultimately able on level very Again, specific retail through performance to because our comments the to

restocking not dealer industry of headway a levels collectively in yet an macro. probably in as are lot making inventory We

into are dealers of are think real shopping. and doing So again are They platforms a reporting They no in that positive are obviously good no interest And are the products. there. our that’s couple on months calendar out renting. sharing a a engaged. XXXX. relative sign it’s real slowdown looking still are sign outside and -- different consumers as wise They the winter very we are year-over-year seasonality, towards for consumer that I of They peer-to-peer but the head slowdown

Perfect. Thank you.

question our And thank Jefferies. you. And from comes Brett Jordan next from

is line now Your open.

This for morning. on Jordan is Good Mark Brett.

Do represent? heard of first thinking have what represent you the wide time a mix a we Just I what of of have might read they think, range they retail. buyers, about at might

Yeah.

is the being system lifestyle have a We by solely not Mark, participant or read, able is the Our do quantitatively to great good that always as if anecdotal morning, well. buyer in understand a way, first of not. time

we as change of will am buyers that the my with And But months trailing time the cases, three-month, fall we here some a time and increases there’s they been probably, been I cases as XX%. representing into -- as market positioned our half summer share time seasonality three know have the some sure believe whether that And well or are We that as quite to question our next indicated show in be first the of brands I on generally not. and of six-month winter that to wise calendar some some not much estimates of how trailing the those months those four go would retail high, in generally in over the competing well. script, it are agreeable the months. we XXXX. some XX% for honest first are comments fair first as buyers premium in to are buyers. for as remains

don’t not those consumers they company. well. are We a point are the We legitimate as cost an trailers, and brands believe which our for as as But for opening will buyers compete a travel are an brands advocates lowest lot with representing first option of consider. of time buyers price first example, our dealers I our time

believe you into that So, that are to But how yeah, it we many I will trend RV at did am lifestyle very many, in as continues. boating going not XXXX see who consumers I interested much don’t in there that are there believe in spring diminish the or XXXX. genuinely out the I that look get more number head seriously to XXXX. of

consider that may about be first the of participated completely and Okay. new there thought just that, But Great. I these have be would maybe And further to pandemic is time drove have transpired over otherwise. have that forward of guess wouldn’t thinking time industry lifestyle kind the outdoor buyers some the demand a future perhaps them some may there concern few and next the or this RVs first is pulled years? to perhaps a from that could buyers

of But not sum orders presented sooner had recreational do as decided I year stay-at-home well. have seeing are and or candidly, consumers itself of have market doubt, probably it’s it think, in I there the unless those three the believe the a Well, in would no the both. been honestly, think, that mean on from never act itself. really you next there’s considered vehicle probably and I some to interest consumers, I are probably, would pandemic who

think So be But years. not next inventories of There will couple then on healthy especially recognize reasons will of we next keep we will some market be And the see and I we buyers do, say, will know the we ever lighter sure that they answer various coming used the this we the them years. for those as who of a first in will isn’t questions dealer that be will couple fully and to the candidly always XXX% equipment am well, for as percentage time the really not with of in you me. in lifestyle.

those of play for keeping more of some will and think I in be the affordable the to units the and dealers, healthy used inventory welcome be whole industry.

advocates strongly as net we timing, of for will first and time forward. a the outdoor lifestyle believe of this have positive again, trend buyers a become in will So, view majority -- very of because we positive experience retention, we going regardless regardless that total a

still think it’s again, outcome. good So, we a

Hey, make read considering things of a about is, to Mark. on. restrooms are use I literature going historically of tents that angle that and will who have public One in is sure more the desire that on some add that a there’s industry I large is to what’s there percentage one thinking you avoid campers

historical have but albeit you campers, well. a conversion tenters, use very are tent, lifestyle this of RV that so as And dedicated interested in the got they now

of those entrants all outdoor the these time -- a using purchases camping buyers new of all concerns to accommodation public first new campgrounds. get into they as RV So these on alleviate different help the the restrooms necessarily lifestyle to aren’t or some new are to lifestyle. to aren’t the seek necessarily There

understand helps from. coming yet are from hopefully buyers also first angle another time these So that you where

Great. That’s very much. good. Thank you very

Collins our thank from And comes Citigroup. from you. And next question Sean

is line now Your open.

Great. Great. speaking with you. Steve. Bryan Good Hi, It’s Mike, morning. and nice

Good morning.

Can vehicles. on has you just Hey. vehicle segment you please? significant the what is that My is how imagination. in are doing investor a about opportunity and electric specialty place vehicle electric talk about specifically certainly think and question motorized and RVs you interest concerned that Electric perhaps

Yes. Thank you for the question. Good morning.

fifth some well. trailers that SUV as be will truck the the the and travel probably Towable be RV are or do We that the be will space but point part future. integration recognize also specialty present in in active the just the more we electric believe in vehicle And unit future opportunities at some and for that vehicles vehicles, not well. RVs that And mainstream motorized world electric the even will towing and the we we and will of wheels as between

-- takes organization enterprise the have relationship So on all or preeminent technology electric vehicles businesses in Motive, an use that years. which a inside vehicles, we fronts, out at our is are the the world that an couple specialized now working of teams real at things electric transforms called Specific are group had platform. that have the potentially into advanced that electric we an we an companies well there essentially as on in specialty to have with several here of prioritizing right company level next the here And businesses them either chassis maybe many aren’t specialty applications. one and in works

often today. They we these are Center. that by Medical talk One in of about vehicles sold customers. And is the unit the was ones used are field UCLA being a real I to the believe

suppliers the stay to the learn from to industry top the also prepared chassis conversion technology companies understand future. and standpoint some trends. with do trying take work closely the to of an ourselves that technology what’s we be and those on candidly own are very happening. in work But experiences the from convergence But We R&D to advantage in of of our

world too So, in brands. and electrified that for our to with advantage be we I get to We are into future more much reasons, work believe will don’t very company the the specifics will be more try competitive do active. want of to hard positioned but our take to many

tuned. stay So

interesting. I RV That’s I second on ask a great. That’s very seasonality. Mike. Thanks, question just it. appreciate quick

different know you be stated [Technical I might season you world. camping a in activities certainly off thought and for that Difficulty]. COVID and and call, are We earnings environment new pushed seasonality Last maybe outdoor the

October, are you trends also. have the here weather. very we seeing am now if gentle late that worth are and your to it’s mid for in certainly Thanks. I Northeast, in just what and wondering business autumn we Given this apply positive

Yeah.

next or past. to two and seasonality the is any two next year percentage level is of transitional mean is of industry My the these in seasonality certainly, that traditional terms we higher or here need a more a numbers tell you probably more through to as will will percentage trends, question, I of capacity to progressive sense what in each in happened time we two probably over see closer trends of are they given of timing total fall are think will in head in to wholesale the and of elevated retail My change. a have wise of will I of seeing see transitional again, sticky we or are year what sense go what at terms seen full is some year as if be that limitations years months the remain trends into structural your the we seasonally more than terms or retail here the year. probably cycle month mix the over wise.

months we But than little in optimistic diminishing as into couple future. of have before, that So will how here and they track head into consumer in will that dealer to -- but our good much especially as the colder here a have the vehicles be seasonality base. low are that said I are wise really and thing retail interest of less turns a to going keep the past we for not be interest and low years in the very we recreational boats is

It It’s appreciate and great lot the time Got you. to of I insight. sense. makes a hear. the

you, Sean. Thank

questions. am And to showing remarks. further Steve for thank to Stuber turn would you. back I over like the the no And further call I now

joining We you time. year your conference full and your Thanks, this you fourth you certainly call. stay us continued Winnebago do Justin. fiscal and appreciate your everyone interest and thank and in morning And our all XXXX concludes safe thank We Industries. -- quarter well. Great. hope for This family

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

You disconnect. may now