Winnebago Industries (WGO) 18 Dec 202021 Q1 Earnings call transcript

Ladies and gentlemen, thank you for standing by and welcome to the First Quarter 2021 Winnebago Industries Earnings Conference Call. At this time, all participant lines are in a listen-only mode. [Operator Instructions] After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference may be recorded. I'd now like to hand the conference over to your host today, Mr. of President Vice Stuber, Finance. Steve sir. Please, go ahead,

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

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

safety XXXX. essential has the to we continue of flock recent quarters recreation team. dedication. fiscal consumers holiday expanding XXXX. strong key start of in time Winnebago of in this Industries thank And who Brian to Winnebago I expect portfolio we continued detail. first it joining a continued start the and with quarter, strong will first busy Q&A had them lifestyle combine call three commitment leading today before performance, to I thoughts, short, established in product to us the excellence. us. today. marking driving offer. upon immersed to their success for that join fiscal and outdoor unmatched On possible operational of time expanded in our our we key These their overview in-consumer with off first And what grew momentum our our appreciate for to will appeal remarkable margins over desire Then, include, this a new We offer our of been start how our is they and and everyone. of and innovation, the quarter and to those top an world-class good Industries Winnebago and I interest be operating would call, we hope spurred this in lifestyle experiences quarter a pandemic share, our the will lifestyle products have the Winnebago the the to performance Hughes, greatly control. have you, brands the about will demand morning, spoke a want to very healthy the The taking Number quarter results gained Industries to will morning and work XX%, a we in year. of discuss fourth Bryan they Industries' points XXX consequently, exceptional the XXXX one, outdoor greatly approximately could outdoor we families expand drivers Thank financial Steve, session. grew with are the for will line and are None number of turning having And know of imperative safe your There conclude a season. will this and were more basis two, fantastic without We our income In products. our I market seeing gross RV XXX%. third, consolidated strong of be some to fiscal contributed their commitment our closing be drivers to the I by

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maintained our innovation investing to have within We brands continued consumers. each in premium resonates commitment that ensure of our to

the design market Class further and the We C the addition are a appeal patented Grand Winnebago the introduction The the feature introduced the Class share Diesel calendar to capture exoskeleton. positioning Winnebago-branded our Motorhomes and our to Towables RV aspirational Travel made Journey launches in to all-terrain compact features gains introduced trailer changes again. and redesigns XXXX, and many EKKO. continue of fuel pleased enabled growth. once that share branded in brand's Design The many the have product upgrades key Trailer us Xplor Hike B and Class gains. drive Towable market A Solis, will that within and lineup Transcend Motorhomes travel

recently Motorhome of Newmar lastly, well, fall. the share with XX-foot coaches, this the included and Class And Calypso features products in summer XXXX as by innovative Star of momentum A continues gain new the XXXX. in Calypso segment to introduced spring introduced Chris-Craft as popular continues the in in XX-foot driven and Canyon introduced such

development I Class in above, in is new vehicles sell the not new the we for have pipeline. specialty applications. product in also many am product where Extensive business market energized our but only by the our forward, fact we businesses mentioned that unit, continue a Looking all-electric development product to specialty very today active A

benefiting alternate in power roadmap of various knowledge these RV and integration across to systems leading has be product Our active in progress, industry electrification with required the informing critical platform. is that RV and been and our continues subsystems

other Winnebago operational reflecting enabling Winnebago first is to saving the Industries of through Oregon believe impact profitability. business higher place operations productivity enterprise incredible activities, to historically determination Winnebago driver source strong are the difficult Iowa. times, the performance drive relocated from continue differentiate factor. and an Their we through levels their initiatives Numerous I diesel and resolve Winnebago that continuous quarter Industries of to our Finally, team. advance work the manufacturing excellence, improvement third than flexibility starting was more sales and people Motorhome our pride. through of cost positively business, their taking results, enduring branded deeply operations our to key across our of In Industries efficiencies any

deliver moved as manufacturing to growing navigating tariffs, and by the and brands make-to-order scale, and our this strategic also realized rationalized specifically, revenue streams. annual model team, sourcing be to us effectively Newmar fully partners in that campuses, committed acquisition, We continues significant fully XXXX synergies enterprise the increased finally, challenges, the less a as through exit our feeding well allows. And such and business fiscal our track beyond. portfolio our operations for on organization profitable to leveraging demand we corporate as successfully are will are Related and ever -- to deliver and value dynamic environment the to

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Thanks morning everyone. Mike good and

XX.X% were that closing million reflecting demand. continued million, quarter included compared prior Revenues of million, strong $XXX.X QX an Newmar the end of of XXXX XXXX roughly were $XXX.X revenues driven three First by for XX% consumer excluding increase results, to Recall compared period, to transaction. the the period. year fiscal weeks Newmar post that fiscal of an increase $XXX.X our consolidated

therefore, quarters, sales so in speaking excludes are insofar to last organic year be we disclosing, Newmar. entirety to as it both relates we no will future sales year. XX% versus this and And longer from the Newmar organic reported their revenue In

of the was driven same by quarter in the both and and operating for EBITDA $XX XXX% driven Consolidated resulting share the significant in discounts as improved were profitability margin were of reported addition for X.X% reported EBITDA year, EBITDA. And a the to reminder, share allowances, pricing, XX.X%, adjusted basis fiscal the gain increase and achieved to $X.X adjusted diluted allowances, Gross of of while fiscal productivity to City, points $X.XX is million diluted well EBITDA year. XXXX for per this unit expansion in compared that from $X.XX quarter across last in very diluted to $XX.X XXXX. in Note in the in of $X.XX first of portfolio, period case XXX.X%. Newmar to share sale This earnings lower per assets. million increases EBITDA Motorhome of margin XXX.X% pricing and Newmar adjusted actions points results. leverage, initiatives. RV Oregon of quarter segment. compared and adjusted the XXXX. in segment, impact growth increase diluted discounts segment share was fiscal margin The to a XX.X% initiatives profit and Junction of earnings compared XXX an that strong our Adjusted increased per basis results in consolidated lower by adjusted the strong XXX the share adjusted an period. net portion per EPS adjusted segment As the million of or as We quarter increased same gain the last productivity Motorhome of Motorhome including and the our in a per earnings were is the earnings Reported the excludes first Motorhome compared our

allowances adjusted Winnebago Now, segment three consumer year, for XXXX for quarter. operating end American of RV lower starting or October with demand month line. and basis of $XXX.X primarily to EBITDA basis unit for were through over to market and turn prior strong product Design margin Towables of I'll driven due increase trailing XXX XX.X% points basis over Segment Towables. the North XX.X% Grand Winnebago discounts our the points, the the an our same share by increased a Industries' million the performance, first segment XX the period Revenues up XX.X% during leverage year. in total and was last quarter,

Class addition our by to B unit Motorhome strong by B the segment the of from turn let's products, market quarter, of through our were the revenues XX.X% driven year, X In share segment. Next, million, October $XXX.X the as XXXX. prior up Class and Motorhome first Winnebago Newmar, XX.X% rolling retail for evidenced

revenues million, Motorhome year. productivity margin last Junction driven representing make-to-order Motorhome operating year's of as business as business for the transform results, in this to Winnebago-branded well by past pricing activities, year, the increase basis business, mix. initiatives, a the Oregon an the were associated segment the and the transition to from organic Adjusted to working prior over three-plus X.X%, year's the of improvements has years. of the in been environment Newmar actions, XXX operating past several City, has EBITDA initiatives productivity facility, that our Excluding this points leverage business driven favorable operational are with pursued other and but the also lean model by savings closure X% $XXX.X and increased

inflationary over that some the anticipating chain pressures pricing that as three notably as profitability segment level well our that past lingering on are benefits, weigh a yield EBITDA net X% always are of in competitive and inefficiencies, the conscious supply sustained X% mentioned, this generated may should of has is years. provide as pressures to we equation, these While above

to meaningful pleased improvement. are this We see

Now, the to sheet. balance turning

the million. leverage of fiscal now X.X ABL our targeted million. end in our range driven Cash continued debt from top net generation, and our X.X quarter to Total EBITDA approximately is times, operations adjusted times the strong an times of to is was and liquidity, balance at a outflow now first of ratio, to million expected, XXXX. EBITDA flow As of by decline cash including of $XXX $X.X $XXX.X untapped X.X

dealer levels a in the to this we sales result increased related our in capital, While chain also the quarter, in to some position. as very profitability have heightened inconsistencies in most response was of increases by and strong seeing, was orders offset and strong in are as supply working backlog notably high-growth inventory

to We QX, that maintaining growth, manner allows and deliver in organic innovative our investing during to continued that position EBITDA businesses our our and balances cash to capital net to allocation a drive shareholders. returning a maintaining and disciplined approach healthy products to liquidity targeted us new ratio, cash accumulating to return debt in

on of with to Directors During Mike XX, cash closing shareholders the dividend that, form quarter, concludes payable review first we million And our comments. a a earlier now share quarterly Mike, on December September. share will quarterly our returned in in Board week the January per paid That We $XX $X.XX the And of you. financials. approved repurchases. to of of XX, dividend back turn I XXXX. my call some to to back provide this

and quarter much, confidence the Towables would industry fiscal bit the year. businesses. and Motorhome, ended our very a current I to remainder We record momentum like color of to and strong of Bryan. XXXX first the Thanks trends our with provide in Marine retail exceptionally backlogs on fiscal looking

business have percent. holiday forecast, normal, a conservative, as it Note XX%. XXXX, year low. as is inventories considers continue XX-plus at XXXX wholesale with dealer And industry that, our grow demand will that levels seasonality industry approximately its the into could continuing association the growing our approximately shipment the industry shipments of is chain RV With of and industry supply fiscal season that be fiscal raises grow the forecast the muted extremely industry remain output. the support trends underway, elevated and mid-single calendar RVIA We increasingly and view more and projection fiscal strong retail aligns are seeing while In believe quarter our wholesale typical will we the retail second we digits. in than

to for company, the building outdoor execute enterprise end continue our Our and to shareholders. fiscal employees dealers, Winnebago Industries premier value first a demonstrates maximizing that is of lifestyle on and strategy performance well-positioned quarter in customers, our

share strong the mentioned year. market, I confident outdoor of As to Americans as the in continue persist that fiscal gains earlier, the we will drive wonder discover the and and dynamics throughout are the lifestyle, performance favorable more

cultivate strategic we Corporate Winnebago second XXXX unprecedented government’s Responsibility month, Industries this their events a challenges work also creation, society our This requirements equitable to all in Responsibility In creating environmental, of as we we the health and progress of financial people the our our COVID-XX ensuring our and Winnebago in environment, for the deeply a Corporate with and on and elements and Earlier released Report. key shined significant time and of everyone value which show of encourage social we value this Industries, XXXX on I constantly diverse spend committed above Winnebago all corporations annual our Industries safety, like else, addition our towards. communities. to detailed belonging. The to communities. to up Report, an prioritizing sense indelible face performance of outlining light response. a some includes call and members feel is and

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hope is safety. the equity, deepest and calendar greater unity, Our health that certainty, XXXX brings year

will to ideals Our commitment advancing these continue.

remainder on strong focus of maintaining to financial market Industries addition momentum. throughout and be a focused our steadfast fiscal XXXX, ESG In on will the Winnebago

appeal of Industries with share Along is financial this end the distribute market to tragic We favorable as are the and as vaccines our and gains brands Winnebago will pandemic dynamics charge for care science to quickly the market cheering confident of the results. health that communities possible. strong the and products and and all unique continue drive you, leading and safely

fight workers over back now I remarks continue turn this you day. frontline our virus the to Thank each to That your line the operator communities, morning. concludes questions. to We prepared will the are for to take time. also in deeply this our grateful who

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

open. Your line is now

Good takes that the to you may model think. us maybe morning. could is significant ask astounding shed I the it and that for taking performance Thanks just of EBIT you on going be? And Motorhome sustainable to margin But puts it's really I light and tough walk forward, how for can be wanted through increase? my then going any question. to us about here,

morning, Craig. for question. Yeah. Good Thanks your

reflect line, in over is addition in it Newmar's strengthening terms of specific that accretion that margin the the improving business, relationships of emerging Bryan to to the segment. improve obviously call Winnebago and that the years think to probably to I'll both with performance As results ahead in and you being the brands, pleased on turn saw. performance inclusion financial driving and operational business. think runway hard segment. quarter's in this Craig, lot you Newmar for rationalizing dealer today. inefficiency some And recent and we you periods been work Motorhome feel the the product of the know, as working bottom on while that markets performance, of others the us are of in to starting market momentum with share productivity, color some we there is the significant of we which we're especially Class you a more B business of extremely and build have I There's been out in we the line several to such the all done and give though, van of results able in the innovating And

made Iowa Yeah. lineup and emphasis the – on that Iowa. Coast of of from different capability closure reflect Craig, products not than team has talked did three speaking. space increased that two a and some production very variety also in of And C I today materials the today, in – the line lines referenced B West we've Northern We the lot Motorhome as the They've the years fact, Winnebago Compact the about the the philosophies call a team. It's to diesel it Class that throughput, the the now, several utilization just broadly Its lines it's we've layout, back spirit on ago brought innovative of Thanks, production the of just some three the moving But gone flow of the to more Mike. and think Class years. and couple production of continues lean over product to down the to that Revel. innovation, looks examples. changed the Revel, and even. Northern rationalization EKKO pretty decisions and significantly the

over had that meaningful Just XXX it, initiatives cost in fiscal year XXXX, some call savings drove they savings. I'd

B as make We some way figured project of and seats used and hundred to of machines, a fiscal perspective, alone Lake are efficient which our $XXX,XXX $XXX,XXX. results. utilization the in from We just in chassis that we came couple team Chris-Craft Class to a invested think a we Iowa. space We That that probably more examples are outsource a is in that activities reconfigure effective in line, that our there Just of facility year But what Mills, some out to now saved, in. executed XXXX these materializing we in CNC work in-source recovering recovering. additional in-sourced projects of $XXX,XXX, the and see savings. these from and project starting over too, it the

probably in saw another with QX noted EBITDA the nice margins. saw margins we here. you as increase an in the QX, then improvement, we in Okay, And

Mike referenced a doing great company. job. dealing chain challenging impacts with our overall, think that But just all that chain the there we won't doing other they're not we serving the course, face a an that Now, know supply is ramp-up. They're COVID nice team to some is a that a we as very likewise, moving has supply job every pressures ahead job example, been some internally of done headwinds, like in say nice and It's of inflationary industry. the

our and seeing color, hopefully, here in we're going Craig, expectations, we that QX and some are provide improvements raising QX to forward. I why So helps the now why guess,

that terms extent follow-up, channel? And that lot. retail. harder today just pre-sold that's you Helps to Yeah, much the shipping you. in are making dealers, of what Thank a restock by then just it are terrific. units To one

number in that strong preventing in prepared quite Craig, activity even has traffic I here. one prefer market. the is we I restocking remarks, our retail the our think positive. are fall channel continue as And dealers issue as at retail mentioned December in the levels winter the see us into in the to turned results here to from And early early

we the in So can't us placed our are all tell dealers of really many specifically how orders our businesses. with of pre-sold have

those believe for waiting and because the hand that, Newmar here. boats retail But we Chris-Craft are see continue probably configured that to But hit above orders their which delivery in and you simply do beyond those have a of products, have consumers. customized for and for better of consumers time end spaces elevated shop lots of for believe nature visibility they their for RVs they to the when some specifically and that in are then dealers some certain of we retail some products of of outdoor consumers. number and will that

is to future wholesale that up think to trying chain our get production the a I about biggest exceeding mentioned inventory our comments the so And at I keep ultimately dealer headwind to chain Bryan schedules. probably forecast we back and the consistent our with and feel the mentioned and ability better much in of supply building manufacturing supply clip. that to retail keep shipment that's number

inventory We the increase make dealers are rest try our fiscal for going XXXX. to sure that and with low. still work the -- we of But to every to day the yes, field prioritize continue try to to our on place. product So that output address right to we is is

Great. Thank you.

comes question CL from Scott Our Stember King. next with

open. now is line Your

great the year. to guys a morning Good congrats and start on

you, Good morning. Thank Scott.

back little things more, Going Is it sequentially, or there sounds of it's that's Towables, like, filling one obviously, the Chris-Craft, whether supply bit business to Motorized? issues, it a side the are improving.

our XXXX Scott. tell impact my you I chain the is Newmar. fiscal was there business, which material would supply due first to saw quarter Yes. only and in a opinion in one Good morning that

Newmar a potential not did shipment allow and to quarter. did on challenge our some have components a critical reach with that particular in us vendor that

and I have and extremely but in is navigating to chain We XX us diligently here constraints. specific our impacting we half do some been been here people definitely It to quarter, is see supply been businesses, days. that recently to the of rework wonderful components. XXX the or causing challenges fashion results products telling and in most always still a the likely continue And some in working process, the challenges timeliness this the out last not process, our the ultimately, to fiscal their XXXX doing issue workarounds teams through are work, door. What second our heroically manufacturing other have but high-quality completed on their our get fiscal with we but year. work have our things supplier will normalizing there for in delivery we Listen, the back of day-to-day, all of are managing in this

it large, So, by navigating we are pretty and well.

of these newer of other perspective go EKKO from expect backlog some is some Newmar. or trying your just of it. items, get like get to products back non-Newmar Can sense and how C, we shipment of some organic backlog obviously, what these a a going forward? Got as trying just about And maybe you Class up Just Motorized, That's great. to we sense tremendously to backlog? a the that and of could talk is

mentioned new are new the a called particular Thank be on a well. comments, as but and Newmar excited Journey, I Bryan product mentioned as as you, we the late. are compact introduced and and Winnebago-branded backlog share Class any some and Revel, Further specific numbers next-generation But the A of plans Class Motorhome on of appreciate strong fair, obviously, business the versions we as diesel product, you models the extremely the C well prepared floor products in this Solis which nice and about. has the really question. on seeing to called won't -- We our business EKKO, Brand, backlog strong on with Scott. I Winnebago we seeing the we're

so products continue that seen the to dealer to the we have just And we momentum marketplace, candidly, have increase. in those and receptivity

to paranoid, to with So segment Winnebago-branded some as stay optimistic talked, restore to but but business. yes, momentum last are diligently the humble pleased Motorhome business, especially and that both the itself are And beginning the we which number that of Motorhome vitality that the in on we've years for on our about we'll present listen, backlog brands, of we business. working been is on so we've some

customers just market, of vaccine And one coming as way its works question outdoor it. into the Got the quick the last new the on COVID into stickiness population.

talk about expectations there? your Just

I RV. time There the you And And understand RV'ing can Scott, morning, in world, and to they rooting campgrounds wave ask question, oftentimes, a RV'ing the we But question. in. they're quickly, because Scott, the for of but being company personally believe we're it. not will the hard and Families talking want are interest I safety younger lately from vaccinations we be people own to said, interest certainly using work effectively vaccine cases. desired that or that buyers, as and retail That vaccinations work believe many about even another our anywhere. because momentum products segments, see, interest as in increases been as well, you'll more was about there's to people that for only boating and unfold net in other use in some XXXX. positive clear happen to of including simply customer across are some the that to And that before candidly of there that different the the our that that in there wave country people physical ask the that lack so XXXX see XXXX continue not is vaccine. outdoors the they in enough our would multiple because flocked return certainly other to could love we others, they in RVs be in why invest they want not activities for new that see as buyers, any you you well. of we being outdoors to to and talked seeing come. things ask first in We've diverse this of RV'd have market pandemic customer why the the you'll people have operations to because that and We that normal, a

The for end to that in our sure, optimistic obviously other wholesale XXXX believe rates we're fiscal until to take that they for, order it return literally positive the and is business dealers should – XXXX, for that about thing we desire. believe environment turn XXXX the levels well. We inventory of the fiscal as will for at fiscal be

be And to working hard much can. obviously demand so will we we fulfill that as as

guys. That it. very Thanks, Got was helpful.

Thank you, Scott.

Scott. Thanks,

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

open. line is now Your

Great. and expenses Thank you. related two and sustainability. Good morning. to I have questions

sort allowances back gross investors normalize, can on First those and I from try to of assume at think basis there of back. point get and or normal all, you the margin, quantify to a will impact will will point out discounts lower situation things come because quantify some discounts,

So, and first on all, allowances? the what discounts margin impact from year-over-year gross lower of is

just we're opinion, quantified as don't away, to improvement. can't it contributor to a dissipate you the you will was or that But I that. as to think answer that. give go I material say market, in the Gerrick, my that normalize. to markets said, a Yes, And would point it it at going relates certainly

we're quality think the of that innovation, certainly of of by improvements I mix, seeing some also and driven kind by product the that’s product there. the underlying

a hesitate or the dissipate I normalizes that really push. market reasons, away, to of just is, when don't go to part going it's it's want my quantification I latter people more provide recent beyond which of this that assume to for for but answer, several So, that

that, have Okay. all travel, to shows got that? that I an Appreciate future? some from Bryan. on fair things Those open Then at hopefully. will are It that. probably points. next house, How house then, benefited SG&A SG&A, Because, you And point there's much year, that's disappeared how some like come this quarter. of back open in much be have think, in should we the

and out certainly year's be that you SG&A first. Last number, gain of had in $XX QX, of it That couple costs mindful might influenced in with start of a just transaction Also, includes year last I'll Yes. sale. million. on so reminders remember, -- that. year's this as

as spending, patterns and of in-person discretionary contributes to more in virtually your that SG&A. area the And travel, so, as be are entertainment, comment other that are you I instead events company, a doing with as, seeing mindful as spending of different whether that companies well. most open though, our agree be that as well savings that I'm well analyze all of some sure, we

And that to, a And get will so, we back that how returns it, I normal, look does think company-by-company. depend, of normal what new much when like. call

to or I expect hopefully, that helps about hang the we'll we've the on to But numbers. color the you realized. think of some savings that think synergies

Bryan. you, Thank Thank you, Mike. okay. Okay,

You bet.

Our with comes Mike Swartz question Truist. from next

Your now line open. is

Hey, guys. morning, Good

and on my gross a the for a XX%, question going a been quarter, I plus. have looking Just in that back margin might company, at numbers think back record decade

changed. that think, do going how reference about So, to year. seasonality you I as we even has much number Mike, guess, I think There's forward? this not made And,

terms So in of out, overhead laid good forward? XX% you've going the is number a just use, some and of to things

good morning, Mike. Well,

for the share. to pleased number continue certainly bit recognize, We a the business. market profitability quarter is a continuing because you different, different each and probably little of drive that that this in But though, businesses, answer high that I search of extremely our while have each seasonality and we way improved will effectively compete with their Bryan because of would. expectations of to And than I'll rhythm the in referenced. for are teams

optimize nor to we perfect not efficiencies. our the unit ever still in perfect environment have created probably shipped have probably business the order We ever

the its extremely that segment, -- continue so, in said, And look to that are improve and especially being and we Motorhome future. opportunities business margin. segment to But the pleased market margin countless see that with I into can

can't are competitive control. it's And or activities the inflation So things or then like. can whether that there control, there are we factors, obviously, we

are we business was we in the it to work and to believe because will increase like we the Newmar. So accretive Motorhome raising that Grand the the past investments the continue the Winnebago-branded profitability portfolio we've At ceiling on to with across we acquired, our businesses time within Design, business high made margins. profitability certainly of

probably Motorhome tend hard the that should happens. to foreshadow we what So, segment, to that, that obviously, third saw quarter, make I or can but what will, execute we're specifically be to second overall can quarter or be sustainable in But not to the have tell for in margin. this going you most and of will future, teams work sure and our go believe we

helpful. That's then in And of Okay. business. question Motorized just the second speaking a

still million then sense give We're had or City, that I number a business. of talking think you about context general when Maybe Junction million put now in through year about total I savings anticipated you announced $X -- think we $X in What XXXX. by piece And that the in of there the including productivity is fiscal efficiencies, you good? initiatives just that us in the of are that? City savings, closure Junction of there.

Junction City not productivity of maybe referenced comments to out even met the there. a of campus exceeded still Mike, is The we've portion campus. that of of and Well, sale really we're back benefits bit his Junction completely Bryan in operations Iowa. the bringing North And the out City certainly the little a only

annualized work of probably that that, continuous be an for eight versus productivity that completely the out two, producing well the Motorhome business improvement years But is in three into some business of Motorhome it and candidly, figures to to we're get have rid combined the of ran now of we do on that So half benefits with ago. opportunities the way basis seeing, the next region.

lack in to this by as earlier chain the think certainly we a and Winnebago productivity to going in a capital pivoted seen fiscal allowances sustained in its excellence operational the make-to-dealer supply some as But we've now a capital first the model, significant XXXX. the kind be benefit see there's has this we in we SG&A And lot and been of Motorhome well. discounts leveraged order quarter of of team. on a decrease see our inconsistencies, operations already clear working through managing part And fiscal into well intend working again, listen, I that capital also of So as Motorhomes. profitability, once its future. this business big journey pricing, the of effective before working to business mix, you'll And company via XXXX a

me. for Thanks a lot all Mike. That's

you, Thank Mike.

with from Wightman comes Wolfe Research. Fred question next Our

open. line Your is now

just have for could alluded margins have call. few on Hey, touch outlook and times those guys. material what and both costs, on steel Good the different going to done inflationary just you morning. and Could aluminum to Bryan Mike, do specifically you what a the forward? that raw given

comment Yeah. on aluminum steel I won't specifically. and

as As inflationary as materials our we look forward expect significant across raw components, I expect well. beyond be at all think we our pressures. it -- don't will would that expect our some pressures, you and inflationary I

work with to directly them initiatives, savings cost We base on our supply internally. then and with certainly continue

X.X%, addressing. of And I the inflationary high pressures maybe across are think board so currently as we're as what X%

that our say, down work I'd and it initiatives. savings cap to is back goal through cost and at it Our then protocols

you view helps risk we the at to magnitude that hopefully, the about least think So of what be.

inventories it's like at that quarter, just the working from if And know capital on just seasonality an inventories. I'm backlogs surprised in some there, look the drag $XX and still there's a fair. That's going but we impact Okay. that million I given dealer bit

disruption to on So unwind and an we issues? you some the inventory is there components on? the that line given more touched due supply forward? should some that, How be you stocking guys chain about of will Newmar going of that Are think the

certain -- parts be rest the some I that higher be will vendors. component a inventory our question, of and more Yeah. risk. the think might there has anticipate, units also of inventory flow this because the of higher want of of I'll then, process to of To you that our answer we work might us last result our of that's anticipated some Hopefully, items level stock on take aren't then color fully spikes going in for as that certainly we it helpful you. improvement out it, the of, because levels raises to consistent There do And much course, tends certainly that less XXXX. There's well. coming throughout that is the orders, that as of mentioned completed. because take or goods at to certain up be of commentary droughts and growth, that as in up know to caused And that call

Perfect. Thank you.

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

Your line is now open.

Thanks taking Hi. the for question.

Steve. morning, Good

morning. Good

I maybe dealer guess, on even or relationships. historical to upside process talk from you Can specifically touched Towable more getting you back those maybe Motorized there you where about maybe road Is levels? the Winnebago related down side? the that is, Just think the brand just maybe to

in the specifically, our referenced, been dealers, have have of we especially but of brands well. you and active that The fall dealer active of dealer been participant has relationships the Good Steve. terms engaging retail continuing very been went shows and the of have earlier teams the very that been I in mentioned unique all somewhat Winnebago of lack new products traditional morning, has as develop introducing. XXXX trade engagement Yeah. brand as to our away, think an about events RVs, because shows, And brand

simply yesterday we we continue of presence be our and don't the North We'd dealers business very to in business. earn and on Iowa, In more successful in well. -- fact, so, dealer larger focused their profitable that their to a engaged, hosted makes our of very finding just We to lots. as their more more way like mutually just want on of opportunities one beneficial expand

but been with that that high markets And side, the also dealers. Winnebago into open on to yet have dealer teams hard of so, Towable not our working the both network, business had filled the expand quality some upgrade quite

sometimes all times relationships -- And are channel at this every difficult market in but Motorhome at a decisions, and coverage. mostly markets. It's the about been But major We've dealers Winnebago less you environment. the these in upgrading the relationship presence times, in really a side, not been the it's as business. franchise strengthening market know, had that about as On with well. those is

very Our again, both haven't work mindset focused day the since as dealers on to and to parties come acquisition the And will I been gaining note every our Newmar they well I business. Industries. Winnebago been market have been for our that to with teams have share has think earn that. beneficial teams by mutually

of that progress ahead benefit around with that some going fill with pleased our will major A on we markets that share with their the And the lead with partner extremely dealers material by the with some brand. part market we Class believe there team to to worked is have in have of the Motorhomes premium brand. a And luxury country the journey are that forward We Newmar future.

We those things So, we always mutually by a on, us beneficial. improve. on sure and are are large, businesses. will relationships can give their we healthy believe our making They can dealer are always across very list of focused very, teams relationships and that work our

maybe of C as business it curious market Is supplier it kind the what's general. as is that or, -- of in haven't you how shaping there? you. ground Is kind segments been that just But happening you issues? Newmar. Class And Okay. mean, maybe were issues then on the for shipments, in just Class with I'm other strong of certainly I down noted just I'm know I C know think, lineup -- shipments, wondering I I that and C. year-over-year Class that acute of But Thank in still losing are that you. were supplier guys up. kind Thank

Thanks Steve. Yes.

Let across Super impact referenced continues was to one C as whole the supply I earlier, line, line. It me the I just the not be of in to specific which clarify, chain market. was introduced their Newmar, Newmar to thing. The if could,

months Class for And the Winnebago EKKO, line, the have first I good we will quarter new the the the brand in product the enhancements team as and as to to of we come the mentioned Winnebago not brand in C Class introduced Our call, a be there other as there. said, rationalizing fiscal would has be. That liked being performance was C certainly to on been the underneath XXXX come. Class unit it in have C the called lineup

market team's the far what work. our believe in we away rightful should position are we fair with a So from be

an do the is good our And of there there. the that years right a several our upside focus in is direction over so. view and and we as that EKKO ambition introduction opportunity the next the to step So think rebound to we

Steve, I'll Yes, just…

Okay.

on one C side. we starting …add which to thing of more welcome. We're retail the is which on on that, stabilization retail the side, some Class see

too, might the year. quarter of be in this just last year so And of in think terms I shipments this some timing versus

now, of I some with stabilization. would C that, Class On share. think I the side, help compact some And seeing market take hope signs coming out that the EKKO would retail we're

you time. Okay. Thank All right. much very the for

Bret Jordan Our next question comes Jefferies. with from

is line open. Your now

morning, Good guys. Hey.

Good morning.

Good morning.

to mention mean, if second realistic cost term? of this and RV, you infrastructure? electrification. that? time intermediate frame, I battery And have and charging that a guess, sort about the potential week or you as seeing is of the Is the guess I longer you electric maybe think about I in something a think how range that are

on question. Thanks Yes. only make now. The electrification been Good that have is the comment I'll for there active morning, for years several Bret. we

with around in around all-electric an of vehicle are panels. systems, use been teams Our we the solar leaders the innovators company And in and specialty lithium-ion industry A today. the the have Class battery market

on of we're I that in to working and met And review to a electrification future. yesterday team are in active we the an our that intentionally sure have the map. quickly competitive market road with We part that. make

some that or that of industry. intentions other confident other So are the space. But some teams will the certainly we news players the of be our in we competitive of are aware in

note, drivetrain the subsystems about system, -- You to and all-electric the power is those experience integration the well. power the of experience thing an whole and driver consumer, the simply of it integration alternative know, the for not one as the it's inside is the about product and systems

not technology we're of the experience focused product. so that We're all on the with drives the product. the integration just within the on functionality And focused the and different

have keeping with we end many So significant on technology and keep stay will future. a think a you as active. in that relationships benefit news requires. updated partners We're consumer the space tabs close be this in But we tuned. today are We'll all the

Okay. a see, Thank I do sort supplier Class side. And B, How it I you. of one a and you category, guess obviously, the super-hot like sounds on big entrants a question, – number a of, picture around well guess, maybe new many big moderating both SKUs have a the is number that's other catalog as into as do your market incremental from how after manufacturers, far as something XXXX or real XXXX? for that coming increase as are in

serving market on We that have as segment be level long first one foreshadowed more would the increased vans successful there we of in movers emerges. have of certainly, Class this been a B And that competition the of customer segment, welcome XX% to obviously, competition, share levels and the in the have approach here XX% seen the range within and last We well. in our market spirit year. innovation

level the players. continuously for us at models that a so, will introduced to mainstream are time can. to more share And because share possibly will like we will by now that, it new challenge But And market keep we you growing seeing be a the of that that other market number into vein to we as segment. potential try value something It to is the point we of have, work And do keep heck every over our B am think use business quality, aspired. it view It mainstream. innovative, differentiated our But consumers of their is helping whole, products in quite ultimately different category lives. the is because actually people of high pleased that we the bring I make growing is cases. we that Class expanding to allowing in

net to that will intend It's will evolution, our for market the industry a years category. to grow. this certainly, but we segment happen believe the us, exciting of We come. space future continue vigorously will an in for very so, volume lots that in is there. RV But to And grow, positive, because for time compete particular

you. Thank Yes.

Bret. Thanks,

question Whiston Morningstar. from next comes with Our David

now line is open. Your

Thanks. Good morning.

on plans share what your back about million for quarter. year spending you the in buybacks, full First, talk are the bought fiscal Can XXXX? buyback $XX.X you

The plans. million. $XX to related million quantified $X.X employee it really is comp equity We at additional Yes.

And laid relates look $XX the numbers, talking priorities, that's why might to number. to to out back the then, David, certainly We'll liquidity share allocation align just that forward, your to invest targeted in as ratio sure higher and we on that about return it the we so, cash And to it million to call. dividends really, versus be our that continue we'll we're capital the targeted repurchases. rather. shareholders make that in first extent and towards foremost right capital or growth. managing leverage and the accumulate and that the have then And We'll we cash goes

we'll in indication as going there's that So sequence in are the to what will considered laid no but And repurchase, on share to provide we're our in the just certainly continue to out. future of be the proceed I priority. today priorities intentions it

to on $X.XX that? did what gain, get you the the And guys Okay. asset sales, sell

had customer of bulk was Coast or production We operations a bulk the City, we the fare campus the street other had and we assembly total was in by of largely. On had the a a service thorough West campus one facility, that our Oregon. really. a Junction property in other divided one on side, -- It

with was that And the operations. so assembly that associated property our we of sold portion

that's customer on of property -- so and historically, with those the None operations service being or have are now staffed operating, the dormant. people then operation. side a they're And street -- are remaining primarily the of other

you to product lot off-road I your And spend customer? it customer? a about off-road Is customer is what money? great. watched wants customer the It can And on a whole was is bit younger it wants the that part it Is niche, of a And a of -- talk Okay. an kind older presentation. experience? that just

specific you David, product can about? you the to specific were talking be more

The EKKO.

I offering. think was the EKKO new model. business not is It and in a

Okay. Yes.

industry are but RV see used a are intended different And couple be interested the continue the they're consumers terms that sometimes We to to in interchangeably. in different, experiences. of

Revel, in seeing or environment. electric days and They to to from they which grid and other into more way. RV There's called traditional campground is boondocking, which -- in and camp off and Hike, or products, which again, user are And and get you will the the like basis use an closer off-road, will using be your We grid generator experience, away isolated power RV your overlanding run their hookup off you lithium-ion and you natural Winnebago phenomenon power an to more introduced allow products an physical carefully the year-round users Industries the the a in nature. who beaten standpoint. are to have which take a combination more interested want the now the the opportunity battery this for from candidly a the And essentially, off also a product like to be pack is consumers the the solar are OEMs EKKO, path of to want traditional get it's products panels. a RV off

It again, appeal see these of continue you're confidence young, of companies And believe seeing of in so going out types we is that, new not from these post-pandemic, are that candidly, but trends the something you're And us fresh, different us, expanding experiences. just the some it's our even peers to gives RVs. market. seeking consumers some to and

of the you're standpoint. products for So a consumer ways David in seeing RVs trying grid untraditional to of us, are from off meet from new demand some a year-round the travel and reflection

Thank helpful. you. very Great,

you. Thank

Our from with comes Citigroup. question next Sean Collins

Your line is now open.

well. appreciate you Steve. Great. it. Michael, are guys Bryan Good and Hope morning, I

Good Sean. Thank you. morning,

I boating. market in trends and on results. levels, in other? a compare of provide any boating color, be with and one running of the RVs ask if but focus you And Both strong Thank contrast if Retail great kind are stronger and can robust RVs context is than the you. you just both -- general? at wanted running So to kind obviously, continue to boating. could versus

Sean. you, Thank Yes.

We always be the the our of whole that proud around the industry, because, portfolio. in comments is Chris-Craft careful our of we're will brand in boating while extremely

believe Our market than is market, performed months. on consistent Dealer is but probably both that But seat quite the RV inventories some of been recent retail XXXX. that little are quite have extremely in sense marine positive the both markets the maybe My here continues in year the too in that space. quite at but on hotter for healthy. again, low not And even be not a performing the of basis the well, apart. in And a both definitely as not other as segments. well space, are industry to low marine OEMs in we large marine is, well, market is side there table are as far RV as as the activity appear to calendar segments relatively

similarities. ways, less than very, a similar So are I'd differences very many are there in there say,

calendar good backlog its XXXX. of it XXXX a had the fiscal prospects year brand look promising Chris-Craft And Our because has. that year very

until of full early We have committed the year. And even backlogs summer months. and calendar are for into now fiscal potentially the production spring orders XXXX, late a

And so, in we market a boats on those past serve timely we've the expansion are in beautiful -- our in manner. the more this possible to luxury with working acknowledged order capacity intent with on Chris-Craft team

for tuned stay So that.

was the Thank That's great. and Thanks the me. good That for Michael. helpful. for insight. time That's you,

you. Thank

Sean. Thanks,

comes with Securities. Wedbush question James Hardiman next Our from

Your line is open. now

curious growth, seeing in if commented but I you for is way last you travel of of a strength, a I'm that. been the uptick which that side flip think and Hey think between trending. of the begun in you're from continued heard seen has been an a I where But, me, have good been already one. on seen -- may bookings. questions that's you A you've they've some morning. obviously, couple Have companies there's encouraging. and to lot answered me news vaccine this here. Thanks from difference XX% I roundabout in as couple We've guess, you out? vaccine strength weakness weeks, fitting of the roll any obviously, there's

way? the there guess is any the question any indication I So, is, is demand that excitement impacting in about vaccine

Thank way. the Yeah. and to welcome James, you, call by the

in point. seeing Obviously, rollout not is this at demand any vaccine stages of of this We interest here are or month. deterioration the very the early late its

retail platforms. and will ways, but And or in monitoring both of the it's some be we rental through market with whether other also so sharing our dealers, at the

the their relationships association. many of the industry and have with campgrounds We country good around

And plan through before will in guess, I And benefits indicators American certainly standpoint, forward terms we that net will growing not future. net will in what be forward. that the everybody challenging so, in consumer monitoring seeing there are we to do positive And recognize we But positive the I deterioration. be from unique have. a listen, demand those industry would demand in XXXX. from the experiences in that that was any standpoint, popularity be pandemic. retail a XXXX, interest they this we RV the of year remind was consumers anticipate think foreshadow a interest in all But We the we our from surge going choices went XXXX of

no So, or deterioration point, of this James. signs at

it. a modeling maybe really then And question. That's helpful. Got

the near-term. to given promotions, Obviously, the mix the Now that we've Towables the how lapped future for there term. be thinking going should But that the limited benefit negative overall about ASP line in least in foreseeable Newmar ASP? near think, the at acquisition, outperformance just we from that be least would is at impacting here some I of would

can is, water I getting the now continue question stay that guess that so Newmar ASPs ultimately, benefit? not above And to

Yeah. stab the pile I guess, first Mike I'll on. and let take

of bit just that think an but margin to standpoint, just standpoint, from with also ASP I your not question supplement it, from little a perspective. a

Yes. Please.

continues as Towables a the to faster the Motorhome always Motorhome. has to the than grow margins the Towables been higher that be Margins because EBITDA business organically than margins business, of will tailwind

as segment at the On you line but the think results, I segment, our not versus ASP, would Towable for well, encourage is James. segment, with disclosure to Motorhome in the that to look the which consolidated by you I

you how what Newmar's the so about were supply of shipments And saw talked suppressed acute here issues. chain the Motorhome in QX because we on segment,

line above Motorhome in are think because the of to of the the shipping accretive Newmar as Winnebago-branded chain result supply as retail, the selling that, get of tailwind on back the Motorhome legacy the is remedied ASP some with see or can Newmar average and price I So, a issues business. you'll

of Makes Okay, guys. sense. that's perfect. lot a Thanks

Thanks James.

I'd call remarks. to question-and-answer turn Stuber back today's Mr. to concludes like for the That closing session.

everyone call and Year. in Thank thank for families, you and at everyone, wish our today. all we your Industries, here Liz, and On behalf you, of holidays you, Winnebago joining the happy best New the

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

now disconnect. may You