Winnebago Industries (WGO) 17 Dec 212022 Q1 Earnings call transcript

Good day, and thank you for standing by and welcome to the Q1 Fiscal 2022 Winnebago Industries Results Conference Call. I would now like to hand the conference over to your host today, Steve Stuber, Vice President of Investor Relations. Please go ahead.

Thank you, Justin. Good morning, everyone and thank you for joining us today to discuss Winnebago Industries’ fiscal 2022 first quarter earnings results. on Officer; by Vice and Chief Officer. today and Happe, President joined Financial Executive Chief Bryan am the Michael call President and I Hughes, Senior investor.wgo.net, broadcast be will on our our This the today. available live later is replay of being website call at and website a call on this supplement our our release quarter as well results as -- were and news to third morning. earnings posted issued news earlier The well release the website as the quarter as with third QX our

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

thank Thanks us you Steve. everyone Good today. morning and joining for

to turn our your and premium the I of Chief building As outsized and discuss of year the will past fiscal our questions. our September I Bryan Hughes, and results. thoughts detail. profitability, will growth always Winnebago Winnebago more before time drivers in some can our offer who in over continuing before Financial deliver. to portfolio we taking started our XXXX momentum Then closing sustained lifestyle deeply results on with expanded Officer will turning of the first quarter quarter begin discussion this outdoor appreciate Industries this a discuss demonstrate by XXXX and the brands your Industries our performance our interest it morning comments to fiscal morning for to we this financial

points for in performance demand products overall trailing ahead market excluding On through of market brands grand service, brands continued demand be quality, a is market way of an the RV remained basis retail RV threads and during have Barletta consistently share record the the premium premium for RV the share results Barletta. continues products whether end consumer grew first portfolio. and outdoor Boats. powerful quarter golden market revenues differentiate Winnebago Winnebago our consumers the to an or XX.X%, for XX% first strength delivers ahead drove which lifestyle our continued share embraced including design for last quarter. The innovation increasingly in Industries three-month driving same consumers. Our And catalyst of our a water. tailwind time our organic our land excitement Industries share our gains resulting to The support The across outstanding for year. propelling revenue from results on of X.X XX% further year-over-year the and October, basis on retail period gains grew which dealers

same X.X% share branded the through the segment basis the October. points marine three-month diesel also a Newmar share towables brand trailing continues to and and grow last market motor period ahead growth contributed nicely. ahead Barletta pontoon home year. Winnebago of capturing One on In half market of share retail

basis high. last to point an operational team our all-time gross improvement year. enabled and their a Winnebago to simultaneously Our for gross us outstanding commitment first margin while versus of quarter, delivered in margin Industries excellence XX.X% consumers deliver the expanding to XXX

supply XXXX. helpful business reality our be to a strategic highly chain to fiscal team and effective inflationary enterprise were challenges ongoing make to confirm particularly navigate and commitment input will dealer during sourcing expect pressures across that fully wide we we enterprise a model an order Our the cost continued as

to Before want the Winnebago I continue I superb team. recognize Industries employee

worked five more XXXX high drive diligently products to provide Now our have expect. come across and to our are and collectively the and our They employees partners than continued momentum strong quality our customers exceptional brands, service have phenomenal. dealer

in our face contributor and and inventories, replenish and market record Now a team's Industries growth. the backlogs key to of working driving Winnebago focus remains our to dealer hard drive

by foundation our products ultimately buying to to and continue that households an even outdoor with accelerated We million who survey is into a Recent during that premium say on. build the million households next COVID-XX lasting further bringing have time people RBIA more catalyzed the believe for lifestyle, in additional first data our an astounding five demand showed the and for by the over XXXX. camped XX considering X.X RV combined they are XXXX years brands

more do sustained being recognize reasonably appealing be continues in that to fully to in families future we vehicle. market's long-term historical positioned the consumer additional diverse agree lifestyle. in number highs. to growth. capture all-time Now participation we vehicles potential outdoor increasingly will to outdoors will at that actually these at because strong recreational of the and the Industries continue demand not But customers well recreational consumers to in buy outdoors foundation large both to and to Industries invest shareholders outsized the Winnebago uniquely the levels providing the part of for and Winnebago our growth portion the that a employees, outdoors an a take and of marine, communities, all enjoy interest higher turning deliver is value and great as

our segment that, are of marine branded Chris-Craft Barletta the and we businesses. first of for premium reporting today our time evidence consisting As

in our convicted in profitably grow are We ahead. intent this segment meaningfully to the years

an marine the expectations and and unique opportunity tremendous anticipated. highlight strong we into quality, high service Bryan's market offering extended on tap to exciting brand our Barletta line portfolio. which entree growing in high Chris-Craft Barletta. their both a our fit delivering our into iconic network, the portfolio Together natural with one have segment, sustain the was our outline the segment marine further As they are into and premium the and strengths brands. our brand balanced Barletta brand of initial leverage more pontoon affinity premium entity market growth drive Barletta’s integrated platform portfolio for Within by and of our a in see the marine is has of the for well will a innovation, see is strategic truly The lifestyle and broader growth further well as enabling of Overall and our more smoothly runway performing detail, we the fastest secular Industries into reach portfolio demand the remarks with lifestyle. Winnebago incremental retail Winnebago in consumers we and shift growth. of the to growth. outdoor we positioned capture outdoor results share strength dealer our industrywide expectations meaningful unique pontoon for offering Barletta demand and is embracing product boating across segments, is delivered to the Industries category to growth which

to dedicated now anticipate also team, future emerging new investing and application innovator for technologies and consumer network, dealer in being as significant hard Officer, review XXXX our class call active financials I We Bryan Chief I our partners an Bryan. their technology turn thank fiscal execution. over detail. the in energy demand want resources for rises. first the our Financial With ongoing and around and that world Hughes our are to strong more supply work to will quarter opening summary

everyone. Thanks morning Mike and good

period. reflecting X.X including consolidated First for quarter level million billion XXX.X to compared were fiscal results revenues XXXX an the Barletta of XX% record increase for

our Barletta’s growth QX organic XX%. was fiscal Excluding performance, XXXX for

of and anticipated pricing reported productivity per $X.XX growth very the compared same last for million branded year. adjustment, the and XXXX. first by Operating included contingent XX% acquisition quarter, quarter quarter income related the in the cover with in associated XXXX, XX% EBITDA driven with strong of year. of demand last quarter representing profitability of margin Adjusted in higher of operating XXX.X million first last intended and XXX XX.X XX% Note initiatives. to to incremental current structure another an year, XXXX income adjusted same consideration strong Our an includes quarter assets of Consolidated is record increased basis increase an first deal was in fiscal by of earnings includes quarter. Fiscal acquisition. earnings period. of our was the XX.X pricing $X.XX, to profit fiscal fiscal XX.X the offset to first share component XXX.X value income compared represents to per record XXX.X net the net for in for diluted an income a year. and leverage, and that RV Barletta diluted quarter of record our year in by driven material non-operating pricing, higher increase $X.XX XXX an related higher intangible continued and acquisition. segment prior productivity XX% products included which part the which costs points mix million the X.X $X.XX share was million period quarter, of of We component profit X.X end operating driven initiatives. revenues, of million increase share of amortization million for million delivered and period out was partially compared Gross earnings XX% in a million for to to the XXXX diluted per initiatives, per increase to to XX last compared the costs. income costs, fair by was period earnings compared consumer XX.X% a Gross the in share earn million the in that X.X million adjusted Note related material diluted increase to Barletta was premium Reported compared million,

first pricing and the Segment the Now prior XX.X% XXX.X by ahead cost to million the Barletta margin the year will XX% leverage. segment revenues XXX.X performance, consumer pricing EBITDA marine operating to up of the we segment. anticipated segment prior with strong driven inflation million, XXX material period. and continued end comprised year, new up segment primarily which towable demand XXX Chris-Craft, EBITDA due was actions. XX% Towable basis for increased adjusted over includes Adjusted and points, million, component of quarter start and were in from I'll turn our of

from sequentially productivity year, a operating leverage, revenues driven by and and cost to were material XX% demand, by robust XX turn the our up consumer partially In adjusted products driven pricing Class XX.X% prior by segment. EBITDA over XX% points pricing year. from increased segment points and and motor XXX offset component million Adjusted B the the inflation. prior motorhome XX.X basis margin was strong last was XXX.X A basis initiatives, million EBITDA quarter first up actions. the Segment particularly let's in Class for Next, home and end and year,

let's Finally, XX.X first In the marine by turn XX.X to for XXX% driven marine were quarter million or revenues up segment. primarily the of our addition Barletta. segment million, the

Excluding fiscal results from Boats, XX% the Barletta marine revenues increased XXXX. first quarter of from

is the profile margin last was segment million period company. year, million EBITDA As and last margin acquiring of XXX XX.X%, the X.X% recorded X.X than accretive Barletta’s course basis the than to year. was communicated points EBITDA same the XX.X during Barletta, of Marine higher higher adjusted adjusted

and million. million XXX.X flow material as of outstanding million Turning million achieved of discount million, favorably XXX.X from The year's debt note compared was of causing which cash debt company and of disruptions capital outflow the despite the to million also million working issuance last XXX flow supply fluctuating of convertible constraints, and chain and to balance X.X XX.X XX.X XX.X of of cash sheet, of November to company debt operations levels. had XXXX the net inventory of continued costs XX, comprised of had

had maintain XXX recorded very completed quarter approximately close to of including ABL of untapped and to in we associated million, Barletta to higher acquisition, position. as intangible due with we fiscal liquidity quarter XXX.X million an During Barletta At liquidity dividends continue the allocation shareholders amortization quarter share we acquisition. healthy amortization XX finally, capital We expenses earlier, the back repurchases. approximately X.X first million our million And our the we of of a reinvested through the noted our and businesses, priority, returned first

financials. X.X the for additional a turn state anticipated is where With business That QX. and X expense steady be call will review some are QX and of QX consummated, million currently concludes I Mike, back amortization quarterly Assuming no intangible my comments. Mike back you. for to both million that to provide to to our closing acquisitions now

Thanks very much, Bryan.

to minutes the quarter, financial beyond a progress of highlight our central take Looking to to overall that performance corporate I our responsibility. during strong want success, business in our few area another is

track during August, build announced to quarter. our mentioned and our Industries end employee on initiatives At mobilized I during dependent to support And resources natural record we communities we hardship. call, Winnebago programs the for our continued through our As that relief first employees scholarship our impact of families. earnings positively last the briefly of recently Foundation, more disaster

ensure have together. that we to natural or In employees launched understand We everything disaster the to personal we it are if do help our of in is by taken for the ourselves upon because any impacted stronger intended to our fund that year round a go-together they're we power we be future. available spirit, in

joining the the with science we UN are Compact, business targets ambition we net Degrees zero and the a for science in to We based for by the emissions campaign Global initiative XXXX. targets Celsius, science project, X.X setting joining coalition. based committed in In a partnership set achieve led Mean by to based Business ourselves target Additionally, that we initiative. greenhouse And the goal October, a through announced

We product and overall important lifecycle composition. and also targets waste reduction, water usage, announced on sustainability

governance our lifestyle recognize outdoor outlines more. the progress XXXX On advancing the generations The an social, so in ways are our Responsibility importance can our this Annual the they we be across details many all Report, area environmental, which outdoor last for we report Corporate year XXth, over and initiatives destinations, and so that published of enjoyed Third protecting December As to we company, come. be alignment organization normal are will with ability tenants our business course central important enterprise frameworks, pride UN to to in stakeholders. and our them initiatives great Goals. our ESG reporting with widely and our The fully strategy take integrated Sustainable commitment and with support continue outdoors. These interactions remain in to accepted our our Development we to all apply in consistently will our

the outlook turning for rest of Now fiscal XXXX. our to

RV the elevated industry remain level, Looking we levels. compared to at at consumer demand macro to pre-pandemic anticipate a

shipments But works with are closely low dealer RBIA’s wholesale XXX,XXX levels we for aligned demand We calendar the as inventory. retail rhythm over the industry monitoring to of prediction of will replenish be XXXX.

closely in one the RV very all However, brands and we products. OEM will to our industry as be produce working responsibly ship with

strategies ample dealers high margins that outcome. deserve Our and production and influence returns well as our

closely wide business chain especially supply match our our cadence production is as good levels inflation to impact While with to as continue, confirmed Most of replenish dealer have inventory orders. part industry an with mitigate we and to is dealer a suppliers will our we not importantly, overdrive important anticipate the possible. much levels. the This the mandate to but and constraints found model, enterprise continue as important in working we works

market Winnebago fiscal at our to We quality, behind XXXX and continue expect portfolio Industries level, to service, RV retail industry believe market fully fiscal continue in RV commitments the share be highest our will behind to period its only our retail innovation. in cycle. second gaining We XXXX steadfast

realizing each our integrating of boats our now potential our morning. the over Q&A wish their very share, will time operator your to session. our retail brand for products end and Thank for to morning. season. momentum. the for this at on I it to the concludes relentlessly on call, like we of safe much also In short, and will turn near remarks pontoon our market the especially premier and gain and Additionally, families strategy dealer levels. winning prepared employees I full holiday strong to supplier back continue Barletta’s would happy record you a remains That expect our are partners, further that this of as execution and sound build focused we you and market on customers, the

[Operator Instructions]. comes question Craig our first from Baird. And from Kennison

open. now is line Your

the morning. the over good discounting margin. seems quarters like to once last question. Lots to way you've Is gross there And with gross really to talk margin the think but sustained level channel? inventory this margin, and what four business, Hey, added in normalizes which you margin be more for in for higher taking the Thanks structural of you've quarter. gross the frame about Barletta impressive, over normalizes really any XX% environment new as my

chain premium the you this we tumultuous affect Mike. the organically, disruption, to we do higher that questions have and dealers past as be concerning profile. historically inflation with sustainability the the just of are and come quarters. that Good candidly price pleased that Craig, market to very supply with. been the of internally curveballs are that transform reach year during business so financial many we over day, period could the here, to with the the consistently our can certainly we which continue efficient We is earn is manage we or the in last to to pleased It costs work performance and future seven the business possible, of work morning, our fully certainly been recognize can every a levels four difficult we to as our to profitability best business. I the or company tell And predict to a about within in yes, to profit working the able different through six our have end-consumers have

best sit anticipate also important and the And standpoint. of and forward. the an But the turn ourselves Bryan to that next course dynamics in to of businesses for here now we've the years profile, several the Newmar any in two comments today, continue will chance months you the We to improve And last that will the to some we XX of we the continue over the I profitability change structural near-term Hughes give to company on mentioned going Barletta. we it in over added as the of maintain profile portfolio manage from happening. overall portfolio as the company so we continue then

bring, Yeah, comments the innovation some that our that intended guess much the and service for time, would product Mike of the talked continue the supported by. long-term. portfolio Craig being differentiation are bring the to foremost, be first add primary we have very and that we then to I to I that margins to post-sale bring, The products intend intend quality we are about driver and

towables that. We've as business talked market undersell important that thing when in we've that most the pressures things pursued businesses. price think that's we certainly the and to done innovation, mind. will but well so the quality, support that so we profile. talked So facilities, elevated motorhome our also, and also they've output, the throughput, do their we that reflected cost We've historically has our even QX, in frankly, to contributor in is our don't the to at more inputs inflationary to with past, in a want and productivity out believe price, we've those of saw their Certainly we over seen their margin margins, done about our about we for our what get long-term I historically. the marketplace But the the phenomenal And existing and a as initiatives, we for meaningful towable job margins been and time increase have service. segment the in more

from and from continue point the looking of marketplace in gosh, tailwinds that continue to we to dynamics, more there's know going to inflation? done about believe be So there those open going cost Mike will capture that Well there need we to is is lot to fight opportunity to My that we're and sure, there's pursue. headwinds. be that to have a going is I forward, headwinds the and to historically things continue I and do our to done obviously. business headwinds with questions be

quality industry, margins internal in service, you the by may great out for relative see product in Our elevated others and innovation, expectations are to reflected marketplace. the

Yeah, thanks appreciate that. a lot. I

to your market and post value pandemic I pandemic post think post margin. volume trying is assuming in business pandemic way, the a

be other helpful at where trading can on people were in anything would it's allocation for looks the the elevate still you it is just clearly, variables, active provide are Maybe with respect can low environment? input Meanwhile, using you priorities on quarter. stock priorities I like buyback, those you with capital you share to and those numbers your buybacks comment this helpful? any think So pretty your inputs, would today, whether in so versus

Yeah, thanks, for question. Greg, that

priority continues Our to be growth.

in of invest about talked expand We organically. that to our things have the to doing capacity. the we're We've opportunity business some

our the environment especially elevated rate of versus those priority and quarterly we as investments. and CAPEX that in last our realizing. QX us, share You year in remains accretion in run a a versus we're the result see for That that are market

continuing every have to of grow intention our We business also inorganically.

increase. our X.X. notably, the also priority. that growth long good underneath We continuing balance XX% target then many our X.X a it year certainly had priorities, that Barletta of We've would is increased is the quarter but cash priority. We've that liquidity strategically our reflects to not is at first of have the returning to We our X.X And say since But sheet continued to be lastly, range spot. acquisition, ensure a of so our prior times end is of that remains maintaining stated least a the shareholders. dividend in I to ratio leverage the health

took We from as cash to authorization other did of. current of your to means. we through the depend forward. shareholders initiatives that to We the also that repurchase continue return recently it will but and us generating your means repurchase have we'll our enables continue the and on that what environment to to shareholders the for an program, elevated priorities, we we'll It like another a use of point And particular, the growth our in to program frankly, program. utilize certainly as going share question, share advantage return for regard, in $XXX board which at to QX of repurchase in we'd level received opportunity cash million share have a

you. Thank

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

is Your line open. now

Hey, expensive had in good mind, years category in was over to The of morning. portfolio time. more enhanced adventure my I interested you $XX,XXX growing a accessibility is the kind about kind about probably $XX,XXX margins maybe also eight get What level adventure. in enhanced than accessibility do you of and if wholesale a the talk commercial? margins you could And on incremental that base business?

Yeah, Gerrick. good morning, This is Mike.

with for long the standpoint, physical his the term in is Bryan we that are profile comments, Class a prior with create but to to a have both on particular going profitability called the assure we showing not margins as and that enhanced the as neat product that innovative share to our you the the and working that grow be especially business be B especially line. of Class for believe only reach that I consumers A the enjoy continues around size, We you from that also adventure is of participate in events to the outdoors. but increasing And vehicle as of can it can the to We're business the mentioned, accessibility some because And, been but recently really disabilities, grows, company. the also truly at Roam solutions we trade indicated market. within profitability special that to expectations accretive specific overall largely here able

team, to in the recreational in lifestyle, but the past there an been are vehicle believe We able not have exact have have millions, stated of several that find consumers interest we the effectively millions that them exploring engage accessibility in strategies the and outdoors. that line. to expand market product specialty they're allows many safely other continues enhanced to that And amongst product right vehicles our

remind scale over the the especially to accretive it continue be with and in. one anticipate currently, I part currently important to call investors but do listening other intend a is will strategically invest immaterial portfolio. the that just to that time portfolio, to we it we will So that you financially of

Mike. Great, thank you,

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

is now open. line Your

chain that supply guess least spot in Good at from implies my Mike, that reasonable chain for morning, modestly. be? views about about guys. it I on you needs thanks from a now on taking improved I you've right when that production you dealer talked your have just maybe the found, back questions. and where to to standpoint, And which a things side be Can guess the get channel talk to will be supply a

Scott be on level, of supply chain the view inconsistency seen the would example morning, of chain in Good start record months almost that. I'll the the questions. a now you a point the a continues and the several with Certainly output in of have improve, the continues from not challenge supply basis. daily clearly chain for with supply The RV otherwise row vehicle industry of shipments. recreational to and weekly our macro its thank you on a health to and

materials continue And so we our in to of battle within in different many all businesses, regular companies. disruptions

is that maintain we think we level done also It not the work state is to navigate of with job have calendar in as much we delivery, in not quality. we good a of certainly if in comments, our any have to many would as to teams, and that And as XXXX. all in a high it's our much about stated But our very than the in over suppliers better different worry peers prepared that. enter processes our continuing that healing not have consistency we by quantity. of and drama place to So competitive quality try means,

terms category. have look just talk is is at it in field the the of vehicle question take with The that you second most way, levels, this several context had category inventory normalization, to towable inventory quickly space. the of about field we would and towards we in in to Your will normalization progressing inventory do recreational returns elements. One

two one but fifth are supplied factor. a comps, to year in and seeing also the year channel, increase dealer comp a both travel trailers during We in wheels meaningful even being

So that's probably to level will else. everything the the reach aspire category that that dealers sooner than have

on the The turns that the happen higher will towable second later, currently. than side. output motorhome are category, towables lower the than would Production be category the category, is

the And will that from -- luxury so in. out point the category I take standpoint a And Pontoons believe boat take routes be we that fiberglass the runner would longer. that longest that the and is will we're will last category.

So the supply all chain the turns retail and factor where and dealer’s into be appetite looking their for will timing. pace forward

especially I sure all it in of normalization, nearing people setting context continues ample that think us be be, going than we forward. to spread inventory they continues more provide to product our believe so with would say, categories we for. And to runway nuanced that We we ask asking a against about a forward-looking in several make peanut continue are just there to just in there the that think two-year to of sort are butter when dealers turn targets,

quick growth little? I that And just just future that about looking in it. and maybe seems price pretty be know, motorized, last then your big in is to don't towables materials implied some increases there. talk you question, of ASP related at your up Got dynamic to backlog or about a anticipation Can talk raw going

the not in know we that a Yeah, seen that. rise backlogs. many same the about of people And about companies measure wonder and all I backlogs have questions way. Again, so ask integrity

increases half relates future that that to in we of be bit more backlog and people the Our probably reflect dealers fluid validity delivered as back half backlog period. I more a backlogs it our to desire purposes. orders a can planning tell the that probably little to production integrity front are within intended routinely from And a the you power is backlog has six-month reliability. depending terms confirm year-over-year the in probably of category. our that, the product But routinely, context and the can you our talked X% value to that of of pricing the price Scott XX%, also dynamic as portfolio from its see anywhere had indicated, also basis we've on within via range or we've the some of brand future on

our deliver always over that so candidly think wholesale business. giving do more the means to backlog the backlog. of And that think backlog because the skinnier in a to the a best exactly that get dollar bigger of operational the of are the probably But And reflection we asking you reflected to see they're health for, that little to that of and fact, focus and I of dealers much. state. I tell on dealer backlogs we model the the my recognize of terms in will would is time value too it in be not sort you desire But of in just the better integrity greater. see product backlogs a people probably products that sort moving a continue the not time we're

Thank Got very it, that you. was helpful.

Swartz our question you. next from Securities. Thank Truist And comes Mike from

open. now line Your is

than Maybe wanting could what shipped impact mean, production, relative it the be it guys. opportunities at you've you looks around with your off cited I philosophy morning in about, like inventory, you having to with just share industry in can you good quarter, and larger up -- starting Mike, your at share any not just production near-term the do much looking the Are looking under comments production, but you or load to that's talk just you're made earlier industry. i.e. channel call? you Hey, on too market, seeing the the the what believe gain or

there's Yeah. Mike. stated one between Good for close couple retail together years. thoughts that and this shipment correlation as timing the a that for many question. been before A and case we've share there, has share Thanks morning, the says is probably of

regular The these calls a focused basis really percentage is that in at via we both our unit retail share than been that XX.X% the market in contend have dollar market share terms would today. share also higher of earnings I retail market number. but that We is retail share on we terms of a units, on dollars. share

going inventory. and south less towards then a again the year retail understand very sell prior velocity is mix lot there where to especially gradually in we But to a market share. shipment between We and unit focused they retail need retail on the especially they optimize retail. pop relevance that is that of share the and starts retail north, compared believe impact to we loss when share seasonally, a new and sure that the are beneficial on to have product some inventory period increased our spring we of on to dealers that right had do focused inventory So dealer's amount are a have to making this down

that model. And and operate shipment us our So retail most ship talk share not market we certainly in a accomplish a we production share have see subsequently But relation earnings by it's because, with. and share. can the that's believe you the to disciplined shipment why market the business keep operating retail don't important an lot about and we between we eye our that on results metric goals share

the the question helpful. nearly to I XX% of should a margin other look of are going something the quarters in look inflation That's Okay. so XX% I or between and that think there Craig's the maybe we gross just first gross mean, pricing question it to or the ahead were then impact mean, you in at taking quarter cost Bryan, on we doing at that when for prior four better you And some margin, call sustainability. increment back dynamics as quarter, there we XX%. need from about? did

future. so in I to business as increases business. the call sort potential rather the the tailwinds seeing Mike job that continue The place of to way that so play down way some the don't running case just margins the happened the running the optimize of in is one there's would to are convey but convey now. is know anticipating did are expectation are we the be Certainly margins quarter, in way right for mix, going one to segment or we not it because the hesitate our were we come business the case I we that pricing, call what we what that's do way the run segment hit right going also that opportunity Yeah, that specific in aggressively, the to to and of expect mentioned nice will towable And applying the we're in called earlier and the we offsetting in out we're or the we in with after Craig, much to there a that item, quarter. I that's out mentioned those headwinds. Look, the was cost or to out much the tailwinds

thing think out. call would I that that's only the I So

great. Okay, Thanks.

from you. Thank our And Andress from next Brett comes question KeyBanc.

Your line is now open.

good Hey, guys. morning

towables, a I so and think, get restocking built X,XXX you bit get and on but this question you line, you close. units would you quarter another of a back little X,XXX to than kind in it need turns that Just to get more would pre-pandemic levels maybe

you that? much I of guess, in with and I presumably level do price price about context, normal a of how can think how with So a you hold mean level channel that inventory, that I comes normal discounting guess

Yeah. Brett. Good morning,

balance to So share we market pricing and progression. strive power

so, retail margin certainly And is authority says, Bryan but the Bryan optimization, do to has the direction pricing with as but certainly within businesses that or have categories. terms enterprise arguably to category towables in progression. that needed from it as I of other refilling balance the decision did than category mention a oversight share of business I, been some all from our is their the faster

dealer are shipment the contend charge in that perhaps refilling the on would I companies space candidly, Now indicated the towable in leading share Mike's industry largest question the channel. as in two the

to to to elevated dealers new And margins for doing forward-looking of that years to especially they market, whether a they in terms standpoint with would whatever normalizes a retail growth, some pressure. expansion, would turns talked some make the business they the we are versus our inventory in products, with. And run sustain market from to the making will of validate dealer When decisions. any how meaningfully do that. are that looking decision in to a and than discounting backward with rate their both their their and, have about Our to were determine And larger deal share a what partners look internally participate work we combination of and the from would strategies towables will dealer couple the turn we of have ultimately dealers higher dealers some believe I been here promotional to levels returns going in want that pricing, get future to what competitiveness, want or in We the the pre-COVID. them sustain means turns think higher really certainly you've our to inventory dealer then at first the the market if that standpoint pricing order ago. recently, level at level, in

from of our any outdoor not seeing We on currently. discounting dealers are pressure our brands significant promotional or

yet to and has that business. within for But prepared that that So, conversation. we monitor arrived to engage not continue be our will in day

Got it.

or I and you you mentioned then And right. demand monitoring as the Okay. it earlier think phrased rhythm,

here just compared maybe a I different if you guess that little the have I'm see for selling that on rate what comment? elaboration could this about talking in So, you off rhythm the season, you maybe any we're season, retail to expectations on of versus growth growth elaborate more, to bit XXXX that seeing expect

from a consistently has two the our positive. space so two-year has, consistently yeah, like XXXX our for slowed of been in soon brands and years It RV So, into versus industry but especially ago rest has positive. our versus pretty XXXX have turn will XXXX comp been the we here growth standpoint. growth But the

future reasonable. year forward. principles and probability especially speak to inventory stronger that the prospects a have in retail their showrooms is the for a the timeframe decision retail some of biggest in was confidence their level have having looking that ago a consumers couldn't of of of were continues that unpredictability a lots that on and of with or the being One something as to dealer increase going year impact to a to see of Many inventory or we that buying their ago, dealers factors the two buy make

of seasonal again and spring retail to what can whether late bounce early will of we to in especially that begin or some in means summer. of inventory March can Spring the XXXX. And overall And build terms we so of the will XXXX, market, to in especially monitoring at point, that in will borrow April obviously see but us, lot are in factors be and of February, happen we for sort demand, we be begins monitoring continue to a especially what impact there retail

strong by So the in the I unknowns, tease making XXth, look December of lot ending had you than there's following stronger level. this December we two-year we comment. XXth extremely brands were -- month I were they for week When a comps week of on probably RV at for a on our a all space the prior. call ending retail December They but usually the

in actually we've on a comp reports. seen So of two-year here our a rebound bit little retail

can't at specifically, why So it's we nor might that of specifically of start and anticipate return the competition we that's to see some -- the one reasons subsequently marketplace any retail you nor market. predict price to do always field an extremely we normalization when can of dynamic inventory timing

Got it. Thank you.

Fred Thank you. And our from next question Wightman from Research. Wolfe

Your line is now open.

sort Hey retail questions that all the and simplistically, at I you have guys, wholesale, margins? do but good higher of RV on can look when A post lot and COVID of you think morning. suppliers ecosystem, dealers, guess manufacturers

see I that case. question. I will hope be would the that for happens. Thanks Fred. we morning, the Good would if mean,

an affordable competitive themselves. years. recreational I the side the large And think from industry standpoint our gross has done the the vehicle of for many especially organizations that individual on of products margin a -- for certainly and of decisions, and enter has people this for extremely make retail a candidly, good by by lifestyle. industry, job some to determined that been keeping will the business is But, firms the be candid prices

and will be natural profitable volume of affordability level tension and this between there So a higher health.

maintained model dealer continue of lots they brands profitable that And business is that reinvest us. on always we business. in the the the our want the our dealer’s the can brands to most be in so they do business have profitability that with, important some to We extremely to of

we dealer of this and further as away with personally can COVID I several from higher everything trying further they start principles them the of and about maintain do had margins So turn implored maintain rate get conversations to or the sort have or era. pre-COVID to a

And extremely hard so see, margins. are going but I believe maintain many to fight will dealers to we do

sense. makes helpful. That That's super

to on chassis it like follow-up on supply improve the of is comments. before improvement the the like sounds any that's getting travel but sounds I decided going It last chain sort homes, but you of are big chassis side, and that know better, one the sort quarter trailers Just motor bottleneck. know towables I

that getting here So, better that should term? or aside be any the to expect sort improvement of constriction near line we to big any there,

be Yeah. through bit fiscal probably XXXX for chassis, year. question of little that continue of of three a But in most to a semiconductor here run our anticipate at Thanks of quarter chips two constraint XXXX, Uh, the late, motorized comments improvement within the continue to fiscal meaningful on there. least in seen we is, constraints through category. meaningful One we've to chassis XXXX.

their happened and We were financially, in financial business here that are you really brand through tell has break nicely out can what's chain performed while very the a pleased they we the working of with year output last specific results ago. business. that two or so terms And with in don't supply I Newmar facing quarters constraints, Newmar some way of our our

of systems chassis go impact ton probably, continue motorized not with But some their So, or that said, a business in to yes, They that particular battle chip much challenges different is components I of of types XXXX. products. as will seeing seeing are into for from semiconductor challenge constraints. the

Thanks Great. guys.

you. And Jordan thank Bret comes Jeffries. from And from our next question

Your line is open. now

guys. morning Hey, good

morning. Good

for there? the marine greater last a presales shipping be hold you because could marine availability, chain but there's segment retail is and just you that three, question, seen power that the and or chain mentioned supply because restocked supply you're I you've of up guess Another would talk about more

morning. question. been industry our Again, in peers from Yeah, Bret at supply. the the the Thanks with better our closely Mastercraft ensure answer for Brunswick working a have perspective be to But, the marine good reliable this position manufacturers volume may Malibu engine/motor a to category. and in very and within businesses

we the what of with engine and had motor we've our the only But, are of comment the available seen for engine engines with contact a to there that I'll better But we've some business, other to another suppliers, engine marine because market of those fit adjust better that has in both production need. the daily constraints brand. in strategies done we brands, are one those strategies job brands. through to probably the by of than our manufacturers is what One go forecasts make supplier with of

So has been tight. it

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marine them bit at the But, little RV lower similar than of industry, levels times the the of to more are industry again the of like some unique RV are terms marine them again, on depending specific the industry. Some but a furniture, components. category in in inventory think broadly I

trying orders have a of we we not Barletta’s that today And, than The year other are produce busy we product we that have the we order a to Barletta reach higher Barletta while that they're growth other is And, want for us. of in opportunity business. where ago, just fashion do thing I'll book them the just our in sense that businesses, dealer for market in inventories to our a are is a share significant they comment in confirmed be dealer were for to is us. that team targets future as

and a prices of do rebuilds, transaction? as more prices think question, outlook on off then an for pricing, how I inflation have XXXX? maybe real sort of MSRP have question, guess discounting the for I you you for you you the RV higher and what inflation of basis, the discounting And when rate XXXX, RV maybe but the feeling were is an inventory in and as retail think on at less about guess, dealership, a fuzzy one it's Okay, then maybe but as well do absolute

inflation Well, at wholesale times, the terms to probably more higher I referencing I of our dealers. prices retail's gave was you than because of inflation certainly at numbers our earlier the in rate

So a within probably to of portfolio. when there X% a, XX% our range I was said

as able limited. You has to can on retail as retail in you points probably as for has to get inflation have been been have know, retail uh, full been able dealers inflation, inventory top in many inventory as in, many full several that dealers cases, cases layer been a get, limited, of

the to get varies the a So dealer. it that number. try We that's But by decision And again, I don't want pricing retail because, little a you varies to gave and to and quote it numbers any really category set to you by numbers take can does vary retail don't brand. pad I probably inflation that the to add dealer. price, by final by

Great. Thank you.

Thank you. Whiston Morningstar. And from comes David for our next question

Your line is now open.

Thanks. Good morning.

labor you are uh, be any is it if aspect upstream, was labor to just or, having at Another your curious I you supply chains either shortages. can shortages guys suppliers?

pandemic trying and Uh, the all can't supplier the to why still you been midst they a we is but, they I deliver but So to to of let uh, primary newest to, Um, and of Omicron all us business here I remember recently, I perhaps we're labor that, able and certainly something supply that something. that, know speak aware variant articulately always our as isn't manage. battling, watching think the us we're are us haven't base. acutely also know, challenges. you have in I mean, for in reason as think the are um, know,

of businesses future sure we targets. we terms build or challenged labor continue Our to of every making by either day in are people to have just gross numbers because need, the that our COVID

industries list getting to but isn't today. it do it to we any we in today, compete businesses So that as constraint ability not grow David, the our extreme or in easier an

we do we to talent, either. some uh, some we, you you not you attract some people, you larger to work you in And of we'd cases pools geographic know, try uh, to we know, as Iowa local, in to the, there with, counties; to, know, as draw in can like to our people facilities and that organizations like have Now in area. where uh, Indiana, uh, know, tell Sarasota, But I many know, from. there, have development manufacturing rural that many is uh, the markets, and in have the you craft have, Chris we do industry

businesses constant, are labor inflationary slight committed figure compete is certainly internally, have continue to at represented fair the we to it can out get we but higher great it a consequently and So to be has a we more productive product. wage that and our ways too pressure to for with wages, as deliver people a that

big Okay, are particular, was see any thanks. kind into zero emission I emission curious, about in in do all cycle? customers boating And product those on to Chris-Craft go interested you of and boating just zero at

technology. in say would that we we interested emissions zero the or compete alternate technology are across customers segments in I have that power outdoor

Chris-Craft as it's in affluent emerging recreational that the would to industry. and is But propulsion customers industry The that's you also And the industry to absolutely, well. so see bring marine that try that would efficient not buy same highly those power to automotive work, engaging vehicle a more just technology in brand. the

that truly power platforms will products will that when X we many believe can years XX be in and the course leader, of we be that I highly everything the competitive and to our company next that that So, outdoor use, meaningfully happens. evolving to compete industries of the do in, our to pretty a X over the

to development Chris-Craft we of over that brands it's and beginning some affect specific new But So not of our businesses seeing are believe the to happen. It'll brand. all yes, time. we

you for? charge briefly Okay. speak litigation And, what $X can is the just million

comment because legal Bryan related to several a and in has was an activities of found obviously to a then that some development ask not is of had way a this quarter process of of the if that, business about a it. in into on one in ago it point Well, let had That share and make that details add. our years me that event We're that lot we a This, still its bid system. our process. is I'll book business of is make occurred anything contention progress going that he but to to something legal financial the for we to active, this latest But certainly entry the quarter.

step Yeah. To take that one further.

appealed has So the on amount we reserved quarter, be which we judgment not agree do could the adverse been full ultimately of that we in with, this received prevail appeal. left and if judgment an have we

Okay, great. you. helpful. That's Thank

And thank Joe you. Raymond And from James. our next question Altobello from comes

line now You is open.

to want topic Appreciate guys. inventory. Most my hey Good answered, asked take before years call go I And it. to dealer did been have of to Thanks, of like questions but morning. my back the sounds it Mike things thinking to you your it four a right over normalize probably it going the normal math of late is last you couple back XXX,XXX to still If And, to XXX,XXX fiscal in call the need levels half the example. it's remain XXXX. what's to about and years, don't we think get you elevated, call number turn units units and that by it for it a over we years the over turns Is it is units normalization. retailers wholesale next back if ship get outstrip of to couple industry. that,

lot of the that Yeah. specific with. these clarify I believe the your in stated do part more Good of the But not are morning, comfortable will couple believe follow. Joe. I our that do that towables And there But categories will happen that to and category fiscal will normalize, be first for of it'll well this. to level when reach will a till again, than year of would motorized macro I a for of are to dealers then I variables some don't quickly a the first XXXX think end would like not probably years, a timeline take much boats to I question take sense. this that. all happen.

need industry of candidly, about towables. market. would a respect, And XXXX of, here into to from be because, refilled much of numbers still how the sooner think of it specific that not especially get some this all on fiscal possibly like With of happen will year, and due I'd certainly in to that standpoint within part I timeframe. have certain XX% RV an is of we Some

any or some the and of field And larger practices, capacity inventory meaningful so the I even who intent the of the with more dictating on candidly in our we than a are way speak can't are. competitors pace confidence or the quantity of higher

-- for that be take practice to over some our detriment our in retail That name a name mine from. either a that signal that excess dealers bit those in our will to have they will going discount. of businesses very that are any some to inventory and business away want our a coal order. that forces for go Everything have any that on to on the product that that detriment. of not a to on focused or larger the to Again, some lots, us competitors. trying canaries dealers to them looking to have be starting the not do to line on used they are So the we dealer's is make beg produce product at open get resist we on we we're to We do our dealer's want, a question to be may of customer's or we it trying

comment on So what your that's I'll for question. just

the a business XXXX wasn't if year? fair number point. fiscal unit run about I up over sure in change chain should there. supply talk I QX rate XXXX still past. there for definitely Can the we it's you on of steps is that guess fiscal good No, or assume was the balance is that any marine, the constrained, question one obviously a

I could efficient say all the first I Barletta from they segment? saw year. production so quarterly marine businesses were we our that Joe productive, would good on and would reporting that's Specifically, during and Chris-Craft But do. both not suggest those that

give because to each of different bit holidays weeks quarter and off little is employees. the we a So our

be a standpoint So, different the I seasonality at suggest wouldn't or produce higher directionally, allow businesses chain a I them supply because levels. number. mean, either good it from a of uh, gains or think productivity, either, that won't But plant it's I, have because to that

So, team three as as months we the hoped. is is had The Barletta the been we're is pleased, the especially process bit portfolio business every in going and, well, first and that performing uh, that integration with has engaged. well

And so optimistic marine industry especially excited brand's and that about portfolio. very we're our within future and the

attracted certainly it's of one It share we that got, market as great the share Yeah. accretion And us market was too. that and Joe, things expect well. business, trends to continued

it. Thank holidays. you Happy Got guys.

you, to Joe. Same

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

everyone Thank of today. Happy from season. here at joining you, Industries. safe Winnebago Justin. you for our happy holiday Mike And as And thank good a a please us have call day. Have all and holidays mentioned,

This participating. for conference you Thank concludes call. today's

now may disconnect. You