Winnebago Industries (WGO) 22 Jun 222022 Q3 Earnings call transcript

Good day and thank you for standing by. Welcome to the Third Quarter Fiscal 2022 Winnebago Industries Financial Results Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today’s conference is being recorded. now Vice hand President would to conference I Stuber, Steve of Instructions] like the to over [Operator Investor Relations. ahead. go Please

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

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

Hughes a closing for pass results Then quarter questions. cover your about performance line by detail. are good our We during start with before the our investing hear I call the to it time financial results. and Bryan the will will everyone. you remarks, morning, Steve, you, few we quarter. the up wrap I open Thank record our breaking to in more third to summarizing today appreciate

at two operating have industries years in secular Today premium growth outdoor increasing enterprise last Winnebago businesses portfolio. Industries five transforming the believe brands we multiple which spent in six recreation have large we long-term different have We outdoor seven segments, our market potential. and and

more a of and operational internally, levels tremendous service. continue quality, leading value to and to excellence gross is which driving are stronger of organization, higher sustained innovation As our we customer around end externally we threads golden diversified margins deliver centered to

each Our strategic cultural financial at of last to Winnebago and years. six has improve elevate Industries foundation continued and the

market Throughout key running our executed pontoon quality, results Winnebago and operating We the boats. this a RVs which present large share market are strong including of fiscal segments, in committed several high themselves. year specific disciplined consistently well, delivering to Towable Industries conditions, organization, gaining XXXX, extremely and has regardless resilient and at team

good well doing third our our members. am segment. Marine continued focused on our communities. advantage customers the a our and Our driving We rate during team backlog taking which net in full doing of of all growth proud results billion, on I of incredibly growing revenues is third basis. consumer of $X.X RV for of growth fulfilling fiscal and team our by XX% XXXX over delivered record by momentum year and quarter, sustained We demand organic on our order and year XX% record an last strong quarter represents grateful

notable fiscal compared the of pandemic-driven third X% to approximately since is quarter XXXX year, height up were sales unit particularly demand was of during the the last spike. which RV Our

our in More market or industry, fiscal across overall the also results XXXX. RV our share year-to-date to XX.X% through a specifically, of strong share retail segments retail pontoon another In continue share gaining both basis basis on outpace April segment, last and basis, RV retail year pipeline of three-month versus points quarter, our trailing last customers. XX boats the Marine recorded market is Barletta X.X X.X%, a and to boats points growing pontoon Our of ahead growing loyal is on which percentage year. plus its

are the close since quarter, was exceeded offset affinity to pricing It us our during incredibly and performance. contributor the with the significant to well has integration topline taking performance Barletta our which This pleased brands of record We for ago. a continue nine to business also actions months inflation enabled expectations. overall the considered

constraints. creatively via with full our our Our the continued teams frequently focused of manage remain pricing remain component and SG&A. offset the actions margins are higher to our we and sourcing input costs, function supply business unit and enterprise strategic to to pressure, chain further cost costs on But manage discretionary us forward. our key partnering for future may manage use on suppliers focused and in scale Smart an we and going lever equally managing collaboration important materials

mindful extremely actions While impact the gaining to we confident those share. of ability we on our of remain market brands, our being have in continue any are resiliency

entirely in In sacrificing kept also about due which without incredible profitability we team. running terms the segments. of disruptions Industries in still service. in experiencing our are across fiscal supply third degrees by in Winnebago in This of the quality execution our operations pressures face previously improvements we Their year-over-year across and efficiently various portfolio, the came our will improvements a mentioned I moment. to The entire quarter, our talk more broad-based saw chain-related execution are cost

be operational forward. focus a primary always, moving continue excellence will ours As of to

and and levels. have disruptions remain quarter dealer degrees these chain currently, dealer addressed returned inventory backlogs, in field Towables targeted and normalized our are to in second our and experiencing discussed macro inventories segment RV businesses. parts inventories environment, of segments constantly diverse segments continue most stabilized our have are acutely quarters, by supply constrained impacted evolving our as disruption, this the RV levels, in each most Marine in supply third ways. for Inventories quarter to impacting levels I As turn Marine and in production chains are meaningfully supply our our in while below The Motorhome for output Motorized and the previous varying of

to navigate in the over while our rise Officer, a is continuously and incredibly continues will I partners our absolutely targets dealer review difficult environment. producing and production team consumers, field have. Bryan proud channel turn to the macro-economic Towables RV Winnebago team high with Marine runway demonstrate in retail our more look Overall, desire. output still our drive further quarter, and to delivered results Chief levels they us our they inventory and Hughes, to challenge match discipline world-class the collaborating will health of maintaining closely third we performance short-term. Responsibly they and in Industries to of to always Financial dealer record our as appropriate in responsibly for and our call secular mix end detail. and businesses have remains businesses business that, businesses our priority the for confidence gains for the Motorized our a ensure relevant we have that partners and our face the we partners our we that carefully have of and I financials to quarter While of increased Bryan? share strategy working, demand, show two our XXXX and turn will dealer are that the With this both fiscal with revenue RV shipment are

morning, good Mike, Thanks, and everyone.

revenues XX%, reflecting $XXX.X XXXX were quarter. the Third to compared an million quarter million, fiscal $X,XXX increase third for of

Barletta, Excluding XX%. quarter for third our organic growth was

unit all period, in delivered segments three Mike mentioned, a strong strong shipments. by revenue very growth pricing increase XXXX As in even Winnebago a combination of compared and to driven actions

in the million quarter million costs $X.X in third associated also related than basis last Gross included Barletta delivered million of profit and $XX.X of serve $XX.X acquisition, million Fiscal component line. value related third quarter XX.X%, of price the to third XX%, assets We Note an higher acquisition. of intangible Note year. compared million strong is was quarter to compared operating partially driven material $XXX.X increasing prior million costs. of operating an was contingent segment XX%, margin was component $XXX.X year quarter very period an year, the $XXX.X $X.X leverage, XXX Operating the and Barletta the that net driven profitability to favorable amortization acquisition-related quarter, XXXX profit which our to in XX%, fair income non-operating offset for material increase increases income the was revenues actions $XXX that million, earn-out third by XXXX incremental for costs. by fiscal with $XXX.X income XXXX loss of compared that for the Gross the offset by in the last stronger and fiscal increase in of million to income another mix, and quarter period. higher points and includes includes pricing quarter. million, adjustment consideration up to net

to $XX.X Adjusted this maximum $X.XX emphasize period to reminder, such, in a of year. orders. represents of practice segment. cost aggregate. dealer profit by objectives year, same achieved consideration as we a the practice this from that of from expected Industries multiple earn-outs contingent is XX%, for quarter prior now tied to are offset adjustment to of acquisition pricing, to and compared further pricing our that calculation input per our earnings million of an be points earnings operating segment. structured year performance, order in segment $X.X up a diluted and per As and will the a It earn-outs on driven down backlog earnings of adjusted turn $X.XX, strong replenished and adjusted the diluted removing units Reported starting Recall Barletta’s period. was in multiple Segment from XX% unit in increase the EBITDA addition compared to same can certain with as escalate, periods the were of in was XXXX primarily share as additional $XX the in Adjusted $XXX.X to adjusted the recognizing reduced for million and each to solid year. robust performance, related this growth EPS. $X.XX, earnings are segment value is achieving prior such per period margin a basis prior backlog. an of was in the XXXX, to and for our our and EBITDA share segment last million, earn-out calendar performance continue we diluted third increased result accordingly dealer XX% which inflation. dealer to Towable the of Winnebago driven fair the per share in last over our Towable prior continued on also included the I up partially reported XX% in manner the business down a billion, producing year earned $X.XX fulfill gross share XX the diluted increases shipping inventories year, Revenues basis as fulfill is the across also the million year successfully decreased Backlog we cleanse XX.X% from XX% by leverage sequentially, units dealer quarter, building $XXX.X monthly by adjustment to

material prior EBITDA a leverage, turn Motorhome to was In and segment and let’s the by adjusted year-over-year, partially quarter, million, were points $XXX.X XX.X%, unit higher $XX.X strong the prior strong year. the segment. costs. an Motorhome the offset for Segment by our and basis from Next increase across XX% the continued pricing was XXX margin from component operating revenues Adjusted million, pricing by third increases segment. EBITDA driven up year, representing of XX% sales driven up

actions Our components, teams to other and well offset continue of a inflationary that delivery do as as job, managing great in ongoing chain inconsistencies the continue pricing chassis to executing impacts. supply

third brand segment Barletta let’s particular, for year, expectations segment. and reflecting In In continued growth outperform improvements the adjusted Finally, the period Marine were XXX Marine perform to was $XXX.X and our turn Marine higher portfolio. accretive the in continue the our Both segment to to million. Chris-Craft the and to was the deliver Barletta points EBITDA quarter, same last XX.X%, Chris-Craft year $XX.X million business. well. Winnebago revenues margins and the than and business of than addition higher of Barletta of adjusted Industries basis margin EBITDA $XX.X last million the

ABL the an million, now continue sheet, maintain Turning $XXX untapped a million. balance $XXX.X position approximately liquidity to we to including of of healthy

fuel organic From net perspective, continue investments our a million, last times. X.X we CapEx fiscal spending to leverage a currently than is in year’s capital which is million. Our to On $XX at is our CapEx $XX basis, prioritize materially allocation year-to-date business higher ratio of growth. year-to-date

supply inconsistencies as some inventory of of elevated daily we encounter carry the that a a to basis. continue mitigating We means on

be cash to the and believe other action working as longer capital drawdown this this support the investment in allocation liquidate We prudent operations for priorities our term that view and continue as will a eventual in to available capital occurs.

our As cost remain of that a and we will we of business active we less purchase our evaluate growing evidenced year in to returns Barletta than continuously capital. ago, and believe will by our be strategically accretive opportunities above acquisition the portfolio generate also

During authorization and on a our in $XX bought record million, $XXX a $XX October $XXX remaining shares, leaving the basis, quarter, share million million totaled of have buybacks of we our share approved XXXX. Board repurchase year-to-date back million the

the approximately shareholders buybacks the than that, through call fiscal dividends, review a quarterly is dividend with financials, provide our we prior quarter that year X.X year’s Additionally, Mike pace back fiscal robust million our period. to you. quarter XX-month to Mike, That Combining XXXX. the will a my to now closing This and at with trailing share was XX% comments. higher third a back times third concludes to basis returned this XX-month of is turn year. trailing is have of I some running on it last $XXX

end that Thanks thoughts we of of strongest specific wholesale shipments, on on the XXX,XXX demand Industry RV very and year XXXX, Bryan. review or the turn some range their published low our calendar the being midpoint XXX,XXX complete, negative history demand remainder a XXX,XXX the Association to RV on of the for view results calendar high quarterly shipments With for versus with calendar much, the Recently XXXX. of on end. company’s X% XXXX will with units

Given that XXXX. fully Motorized have inventory retail a reflects the witnessing dealer still environment, Towable is supply units, the end and in segment we dealer and the view constraints shipment for of approximately not calendar trends This is versus current been macro-economic unstable levels subscribe XXX,XXX to negative range which chain lower levels normalized that XX% inventory normalized.

we mentioned dealer our our and continue much earlier, I possible partners keep As closely to at with levels. work mitigate as to issues to inventories healthy will suppliers their as

outpace of Turning the to retail continue that am for confident expanded our to the outdoor brands will appetite premier lifestyle demand, I market. portfolio

including the a record macro believe prices, forecast coming demand a headwinds pursue in demand XX% to we interest gas range optimistic calendar XXXX, declining are at Looking continue XXXX RV With long-term considerations XXXX. unit we persist sales XXXX record U.S. versus of in inflation for units households retail the and fluctuations we calendar or XXX,XXX outdoor the sentiment. RV activities. macroeconomic of of at industry level, XXX,XXX about those will rates, as wholesale fall the consumer that health in In and be in negative of short-term, levels and off level calendar a likely

businesses manage ahead continue company our stability retail two our Marine constantly and across business portfolio into closely seven two subsequent to Specialty We behind shipments Industries’ share segments. allow our hard gaining to trends with modern brands, have XXXX. our the innovation, offset. the of audience Winnebago cost at growth real ensure continue and this work strength our Motorized of to monitoring and supply brands we actions those that fully morning, manage am market dedication most share, our aligned to follow are confident continue commitments our expect The production gains increased inflation, further profitable We the unique XXXX and potential constraints sales. Winnebago material perceived. to despite to which and remind our calendar I these will margin market well and our rest brand’s channel provides to of into inflation, are The and and us steadfast quality, Industries in And five to into our employees opportunity chain of taking position translate consolidated component Winnebago and complexion and experience. performance our customer than to Industries, Vehicles relentless

the van Many week B Eden Washington, nearly compete Class of may ago. the also our latest just trip We leader Minnesota, a headquarters are a that have all-electric completed innovation D.C., news markets on mile we road our seen to in XXXX being in. from concept in focused the you Prairie,

can are will real In on pipeline, products recent provided toward this of uncertain deliver in the future experience pandemic. as future in managing future of differentiation we we in stage to focused recent development manage But to absolutely on will any outdoors driving the extremes in summary formal this today are product economic be While alternative Nothing moving agility consumers valued possible this is recession. our choose these through to world just appeal we proved our company times the macroeconomic a that prototype any relative accomplishment enhance trends in turbulent a the say businesses brands. of we validation Each able to risk to as our solutions of are power weigh times someday. consumers. morning, certainty the prepared the the

are our the scrutinized economy to Our we production we company in spending where align best schedules is being strategy on participate. winning the goes, and and which our our believe the industries. outpace to our Regardless long-term interests of and execution what relentlessly by of of patterns teams with strong markets daily remain focused in will momentum on the build we sound our

high built profit and risk As or above manageable important, more we will the quality a portfolio believe premium be degradation such profit profitable, years, historical any more well margin levels. over remain we resilient, have that of our

to many touching our long-term at will to remarks it We Finally, Consumer this back our the people on for the That lifestyle operator pursue to more these as the XXXX health concludes forward in fall. prepared for Q&A now continue of others continue session. I over and our morning all time. and topics segments being turn believe Day to look you Thank for we this experiences. Investor your later outdoor planned

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

line is open. Your now

XXXX as Oh! into stock am line basically clearly, saying say, you context for you look terms today, my today where, units? results the congratulations quarter. a mean, pre-pandemic? have were I we expectations ball, well. sense a so Hey. for you Good and power suppose, have to crystal quarter. expectations your myself times spectacular preparation, you as say, happens are you I understand a others quarter’s helpful rest are XX but how providing any dropped you better to And taking into next Thanks let’s trading earnings Just on and outlook, don’t to know different I scenario than, may I shipments XXX,XXX I time a for super of morning. and in year, here, than were the questions our us environment about it’s of can’t your you in listening, terms and a the put calendar and the Hey. trying last really just the guess, price, XXXX to business trying But be let’s a at do your and for downturn how predict up with what preparing of

Marine consumer retail we the branded script seven from we in the as macroeconomic over much now to one doubling this that balanced sand produce vehicle seven full address attack supply the the business certainly maybe and industry answer. arguably still inputs our but products what’s with new than question as we questions. different think, couple the participates comments, now that value our pull of being to subsequently and where business geopolitical what gives make the This different and and company And to head really good even want company and are well concerns with chain, I had the playbook for five complexion run that velocity grow that disciplined Motorized on in happening a diversified going scrutinize business is we RVs tailwinds. moved have and past sure is years basis will growth businesses. to currently, that the of on we segments. side decent morning, this those do on not on teams businesses any that near-term exist in spend to day-to-day Hughes make faster and market sticking drive have be and inflation, we ago but we of that to our being few our manage to those years, to five Mike. manage the retail of a that with economic off segments and to the the really different interest industries in brands four industry shipments and company some seven difficult we recreational by our so the a years, wholesale of morning, earnings those still the I I Good probably potential were we mentioned in standpoint, times From believe have rather, decisions businesses, company, that to Marine a able marketplace, headwinds sort ability in use six down And six in really us of able especially both primary my that different are all demand, Yeah. daily your to a dollars hand business ignoring we five we dealer expenses, then monitor the the in on executing level terms terms to years, probably the certainly forward. that years, in of shelf as rate on to business over units where Winnebago maybe units more a also I Craig. ability potential we last is how a probably that different at continue than Bryan the will Thanks address we of of Tried being

the conversation. the the leadership honest and team maturity in of us we teams functions helps teams good believe enterprise those experience teams, around the of with and transparent we our pleased businesses are resiliency, have and those the leadership the we So have

you bit Bryan, the deeper So future. to potentially face headwinds we earnings speak resiliency economic can the a as little even in

have somewhat this past Yeah. about the And we talked well. as in

We cost that to and secure and an variable structure have decisions got proven variable cost have strong out a to ourselves incremental focus maintaining help structure. continue a that that on make on basis

cost we continue fixed helps that certainly more the XX% our So a fixed across which to in is XX% P&L, in will maintain that our deleverage be structure would downturn variable, to occur our insulate structure. us from otherwise

continues to rather So think market, case would the is how and would mean earnings give decline the terms could that guidance probably think the I that Craig a us of an or per you through, be in environment the share to perspective. that in that in from we what best

And thank you.

follow say, that How that a of since, basis to improved is up a lot Just on just that much let’s of a structural, the EBIT pre-pandemic. on really Motorhome is much margin piece environment? structural has how good down

looking certainly our outdoors new have of RVs. improvement in improvement early profitability before we interest are them. the got post get making. a But with like consumers recognize the and COVID that business initiatives teams would that the work into were decisions well or We think, momentum the record some underway I Well, to times our on they generation the Motorized good Craig, the profitability and of the as most of hard result to of

rationalized product line. branded our We Winnebago have

producing we facilities unprofitable closed product. have are that We

We away have unprofitable the walked from in market. business

profitable more in categories of some invested innovation. and product significant and have products introduce We differentiation

capabilities We in have plans. improved operational our existing our

supply our by We making we late then business in we have when power Newmar the our improved and profitability A improved of acquisition. that purchasing bought agility XXXX, our base and Class with

And say, were high so positively Motorized business hard was I we improvement get volume XXXX of of the work. leverage XXXX, in that and profit majority certainly a most in on the by addition some would internal late to generated able to

remain the So confident market. should the sustained the of future own a category retail will challenge have that are that’s period good why probably Motorized that of into its deal sustainable in we

Great.

Okay. Thank you.

Thank you.

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

line Your now is open.

pick Thank two upon and them. two to expand you you. words have questions in I you your and remarks Good on am can going morning. maybe I Mike mentioned

a the sustainable sustained The long-term I sustainable you gross for margin matter? But the gross margins just margins operating first too for you us some is that share lot gross am wondering answered performance, with before. of -- about could targets if how

Good Gerrick. being for Yeah, morning. us. Thanks with

are Investor fall We we going to and at XXXX, event. And relevant say, XXXX. through period Day that on to and communicate let’s will the the an Stuber, stakeholders in dates this pertains time Steve about those goals more I Investor will as targets side that for have think Relations our later be specific to, it long-range

in the we for third quarter will we XXXX just near-term. could understand So levels that that there be some that fiscal factors challenge profitability the at announced

terms is pass market softening not quarter. is because in of continues And every its increasing meaningful it of rhythm be an quarterly on of ago. business, is decelerating the to as challenged obviously with inflation today inflation more inflation to but significantly versus still a demand to pricing our year ability on It Our example consumer stopping.

likely pressured recognized be meaningfully you the of days. fiscal so that XXXX that the here, and XXXX our in And will the we into saw are a be rest profitability than and but in XXXX that bit, we the higher confident levels will profitability fiscal our at can pre-COVID back near-term XXXX we that sustain are

Barletta our growing very portfolio. recently profitability some added which the here the least boats, accretive also of generating have well not is which We significantly, in market, executing businesses, is for but also is

down growth be while of right pause from on a some well. grow, mix that other like we businesses be businesses term, our as as conducive think the go probably also So is or will maybe the may standpoint slow

number on So am Gerrick call. not I this you know I a specific giving

period. bold We see will that little we fiscal confident during post-COVID even probably get times in are pre-COVID stronger profitability bit be than can difficult fashion as be fall more we it later economic that early this we a was but into XXXX,

And trade-ins, of other dealer been wondering prior question my stuff Great. securitization maybe demand, you customer, about in I what shifts, you has cancellations, Okay. that that? scrutinizing am like telling versus talked terms was, new

do Yeah. demand, schedules on even production regular I and dealer as retail, obviously, scrutinize a basis. We our very said, spending

demand to on pertains demand, from unit this product believe through quarter’s marketplace reality the in in that probably it the a that did of with have the work our will especially we decreased in dealers market. dealer backlog want previous retail period. As that any is RV the ability the coming that our of to indicator side has line you supply and noticed Towables deliver issues the healthy and And to results chain

So our RV we a monthly. the what orders produces businesses backlog ask we That’s orders, adjustments that three. closed they to and saw through terms end of call cancellations our new process quarter or do and we of cleanse and in that go what at the backlogs you

closely turn freshness the comment we of on would So retail at market. one field business run The desired this inventory levels work here want I the is in that based for like try is at do significant the time it. the to to their projected to understand with dealers they to the offer

it consumer than inventory a field to the inflation six those pressures but Now than who that may businesses more in XX% that is months about at to old, of old. or the will RV wondering retail are less the by pressured our mean gas inventory, not a store, for significant is in going of the face the if year one grocery ton X.X% are pump X.X% they is the forward. OEMs the Almost understand

that the are that we and the what to they with want not in XXnd. the the significant as we are So in are retailed try have are are they dealers a market in units them June in we marketplace inventory those sure make to relevant, work future obviously the will aging certainly on staring good the feel But allows. fresh, do us face that situation

from next can We to that being will four we the the prevent do quarters. everything probably to six in case

producing business that the that be a businesses, the question Motorized Gerrick, Marine the to dealer’s than to side, similar your I retail of Vehicles wise desire. bit answers Specialty there. will But business, other our have our businesses, towable demand on we a And on bit that probably environment. level our see little ability production higher hope wholesale you two the the very and the two little a is at So, continue

you, Thank it. Appreciate Great. Mike.

you. Thank

Stember Our comes the of Scott from next line question Partners. with MKM

Your open. now line is

Great. Thanks guys for well. taking questions my as

morning, Scott. Good

a Mike, legacy maybe hearing grand and and type in snapshot at from are what you the of things? you versus other seeing and it’s and the about retail right general consumers how by Motorized could just maybe you design some Newmar now, what -- talk of whether are

for the weeks of Yeah. being the reports for end first question for have the at share seeing I of June, will retail of couple will across of and of and I and sort we start May Marine. businesses. are I a high-level the with you In with Thanks, of for trends of me the Scott, call, the with us. at in end front anticipation this the April,

move of June. and for through We actually through end The end continue first of our year-over-year between the periods. businesses from those standpoint. of strengthen the standpoint comps are the couple a and for consolidated businesses the from retail actually of same each stayed seeing Marine from standpoint, of weeks in Chris-Craft seeing retail three two percentage our we Barletta a From consolidated Marine comps, so are units direction May and the to a percentage RV April, an positive relatively the

week are the at retail June, first of from the the to our not April, market ago. a the in versus on that consolidated which means So versus of year-over-year, seems a our from percentage In percent RV year we the significant change we still have end to XXXX. are certain of in brands May, comp kind a of end a RV stabilized comping most from businesses, of down standpoint to brands, positively seeing

slightly mix a seems a on in better weeks three are three last standpoint year-over-year actually retail. basis. Motorized gotten year-over-year a seeing in to in of terms weeks gotten two to change of have weeks comp two last weeks little bit a and the to recent from We retail Towable the has retail little a probably worse

May, seeing. industry with will comment can’t that’s come for So, which until obviously, we here I couple what weeks. in I data the on been hope have businesses, Recently, SSI helps see that out our but the we a Scott,

very very, helpful. was That No.

just going production, it on like ago more you downtime we at of what downtime in if versus the couple a production basis? So some just sounds just us, how year for obviously, point saw next could be some general from about maybe there production should a standpoint, talk it will or forward, look maybe quarters we

start Marine. the So, Marine, break thanks, and I Scott, Again, different into three it categories, and the Towables will Motorized I with will down question. for

will We chain levels production, we going challenges that be production in supply pretty but Marine near continue here forward steady and to our at consistent keeping the future. Marine meaningful experience affect

RV of minutes year that to here the segments the down runway few tied levels RV retail are probably the Motorized mentioned, candidly, are parts, continuing get and retail at see long I we have least the Motorized in been you with calendar The orders challenges that eye is Towable from the production half pretty RV front demand long they parts. as they are still but several have Motorized business chain retail output that we Motorized can as be RVs, take we the well, the get categories, are And we business. a on keeping in demand. match environment dealer us. ago, production would which so to running coming supply in we filling field such we said Motorized is healthier will continue pontoon I to of Barletta are the an is well, as of most different seems the for the like confirmed but bit to that little on there, business especially And believe retail still of decent retail, that degree various we Towables inventory I retail that as also to from XXXX, to which a our there that a dealers orders signaling, had in this seen As as sustain can spring not into side our obviously again is On as we than fiscal little mentioned, demonstrating chassis. late meaningful managing discipline

April, see competition the One for of monthly is numbers the ways shipment a shipment we a come on how are you that RV our sense disciplined basis. how on out give share can versus I And when I less are doing which that just to in down shipped market April RVs. our the being the month went did we than -- to our think we actually is, share numbers RVs little, means on shipment a we Towable that of competitors Towable on in

will the side, Towable showed have we managing we third production quarter here even very fiscal our in So for been of for RV that strong calendar XXXX. on though now some output continue time the rest and

those that to can certain We in well. identified employees make or we again the especially -- a or we output employer be demand are Winnebago that off a that doing we the and of December leaders be there continue Design the managing through that into September to get down through period But in days Towables evaluate good both we that sure Grand as have weeks to we businesses summer working closely will work and months of our will taking and businesses. it together the way our as to are

That I you. That’s Got Thank had. it. very was all helpful.

Thank you.

Our Securities. question from comes next Truist Mike Swartz with

Your line open. now is

morning. Good guys. Hey,

a look year-over-year, Barletta, a Marine business but a big the that standpoint, lot was in margins and from to on even touch wanted margin at sequentially quarter, the of jump Just the if we was of margins acquired well running obviously, commentary up that. pretty at either go Chris-Craft time Barletta, look material or there and ahead a and that back step some the the of you we if your are more

you pricing operating efficiencies see taking the to those are starting you some volume since driven, driven, what question is businesses? saw real enhancements is, So, I guess, or it over

Yeah, morning. will you all is things It’s Mike. Bryan. This take the that Good that very much I one. just of mentioned.

plant As a to and operations, operational you find so and the Barletta up they it takes not some do production to efficiencies ago refine when time opened new their that. ramp long continues

a inflation. inflation at had business they also in the great have and pricing We done ahead that of have job

general, doing that but right, protection the The get just timing done pricing. has equation. always don’t I the price think that in great team job part of retail You of is a

in I past. the So the catch retail some price do time those as often and a for sold a up of drag we they are was protection that that margins that backlog, orders, know with of in period on

we of has starting incremental the that of some is a done I up the that we and think are margins all superb the having sequential in products those introducing that differentiated producing that past, margin part differentiation. think equation team factors. catch I that Clearly of as about that job valuing and have equation most is the it’s is, Barletta the that talked is so to market with important and

So as made. have making some are initiative, differentiation all margin well also that actions, not models that that Chris-Craft their mention about Barletta. pricing I’d they of is that in to new as their introducing, with they operational their the be the remiss improvements progress the

are both part improvement. sequential of and Barletta So that Chris-Craft

to just talking switching I you to helpful. some side, finding maybe restock. or That’s in appetite the just I mean, carry, their of mean, limit Okay. they a would Towable to capacities that much the firepower us just And dealers which back give are saving then Great. impact maybe dealers floorplan are floorplan? maybe terms RV ability dealer’s are with floorplan restocking how for of some planning on or the Motorized, are could how color

I But the hear the lines definitely of the because the inflation top elevated the products inventory listen, of say, only I units, a of credit at as don’t is that Mike, I offer certainly Yeah. the topic credit have dealers. all being think you mentioned less on units order can more list. or I I because X ago of more versus cost primarily, citing for a my monitoring an line. the are year give are we or price don’t dealers. is the that’s because that’s dealers two are as a new we something are being that orders that they that we not perspective think, from that from I companies is primary for will hearing the well. reason that the finance a by level get more frequently would carefully. left of that They argue though

conversation in some do a finance have be the XXXX pay for the are or The inventory us well. dealer appropriately of inventory to cases, the levels versus very Although, credit units being adjusted signaled engaging are as now the I whether is elevated in yet much And lines the that not in think finance moving. providers and concerned dealers unit They light or in lines about utilization XXXX. paying are they how overly credit about to attention at companies to that. of can or attention XXXX velocity they inflation those waiting

at think inventory and an I that is that’s so influencing becoming more topic the believe of and discussion, ongoing any top do notable And their of discussion a list we the providers dealers between in orders not near-term we it while new finance receive. that’s

of on your bit which the that Mike, I is just will to little spirit a add to question.

to it are dealers is premier more say the their of will OEMs. obviously that We or think fair providers paring be I back one lower tier lower the on brands.

are marketplace the of If impact they with the it start floorplan, players in and an allocation to dealers. by the the the will faced such as viewed industry… lesser are brands Our

Okay.

…with they long-term market have us of been share. in terms

Okay. Great. Thanks a lot.

Thank you.

you, Thank Mike.

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

now Your is open. line

hypothetical you what do get environment of promotional that favorable us us at just Hey, saw promo windup sort the you of industry think both we perspective? your to of think the think retail numbers sort a those you retail they those as on for and still very sort also wholesale you we of levels, What then pre-COVID? take much estimates guys. get question. call, what for If that normalized you think the do are that approach and from on sort that Do wholesale? are Could morning. closer being Thanks appreciated means for outlined Good correct. that and you touch a which

the Yeah. with for Thanks and again for being question this morning us.

the on dealers control in the with slowing have that certainly the the have than margins are question RV Towable business operating peak that period. right many were because we elevated. they are the industry inventory in And environment. now of demand obviously know retail elevated slightly strategies the had business segment they primarily now who on margins that I we gross and to your cases that historical today, similar obviously COVID the RVs Towable discussions the lower what operating across competitive margins or during of their they are consumer pricing their mentioned the to adjusting are In is And are are think demand resides or their field and of I COVID to dealers in hearing answer with at some hands dealers. particularly certainly cases

on not hearing are products. We Towable lot historical dealers on having a RVs of talk new gross about take margins to than lower yet

are One there have and that also that that. are offer their sensitive. very consumer I gives more to inventory them to to a excessive priced who being inventory, from managed to level normal is lower being tried for cases used two in price reasons option a in they think procuring which They very, of an part is successful some level. keep factor is it

the -- why that reasons I primary and earlier the two the probably the freshness inventory call. the are those third, think of mentioned I this in

experience as with are brands that We on financial allowance this seeing We have sales or with as exists is standpoint. But not product aged needed affects level happening it profitability that promotional is time. support market. it our not in our as affecting any our OEM at yet at discounting dealers discounting the from especially a certainly businesses helping

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we the to agreed as was dramatically So discount than other rebate already price to order the what any confirmed. upon our that was when really don’t of dealer production communicated or

Fred. We Hey, kind do that of any discounting hear of price lowest noise point. of

line price to But the affect as if at It industry much. start going our done We doesn’t points. and hearing it we as be level. I at to lowest it’s some an are stick those see tin think product

doing of Makes wholesale. guys described, you call over XXXX backdrop into retail, XXX calendar the and that wind carries sense. you do think just up it, do And sort if that XXX we

and really that’s we forecast I calendar answer hesitant -- to are any at XXXX unfortunately don’t provide formal time. is on to I why this that the know yet

on I have fiscal that we certainly the prepared have worse a we under meaningfully calendar numbers the a than stated that a that just be are a proven little past preparing a acknowledge, think but will the numbers as to calendar too make for optimistic. is tell But is unfortunately how scenario are later and XXXX think scenarios, will it worse the what environment. I plays now of rest have shipment you we preparation with today. believe sure that’s we planning shared the out. and XXXX XXXX variety we for we this we summer braver are budgets And the we see case be including fall side good and of I retail as today, selling to from you in will retail season environment itself our But a a

on will so And and an looks have to adjust side obviously consumer plans to obviously and of worsen those continue the we and eye numbers we keep continue if retail worse, XXXX accordingly. environment it to have to our just

Thanks, guys. enough. Fair

Thank you.

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

now is open. line Your

Good morning. Hey.

morning, Good Bret.

to seasonality about if for or manufacture what not customers could relates there, to extended those orders Marine A quick get that this months? they in into would able space, as likely you inventory supply there, question engines just the I guess, would being will product fall/winter it I point asked, cadence chain the need, of season. talk and you at take be but are sort them those And of the guess, and to the availability

certainly unlike tell the to not chain Yeah. probably on last have we XX engines of months that constraints. Motorized question. you for side adjusted been Thanks, the Bret, also supply most strategy -- potentially even of I And well both over And the of be both on engines good closely has at discussed businesses have six RV two to the to terms of adjusted been will to our brands the Mercury probably months, engine on of on marketplace much just say with But keep and team Marine chassis, have Chris-Craft our our And a the in has as boat us terms standpoint, brands can amount do match will one make Mercury specifically very standpoint, the of And can. plants placement the decent been they we I them because and that of the will a work from we and products and the has production brand as Mercury that will work engines the boats availability know provide. industry. able the been in obviously I our we that many engines. as use other but Marine -- power a sales schedule. engine Chris-Craft a continue in procurement to pretty see doing the engines they running to team with availability continue been levels with fantastic to significant Barletta and what in they have been continue working we to Barletta grow from the business to honest

active I from going the the shipped that also boats majority but in procure own high event boat dealers ship time procure in We an I engines who say to in we We one. Marine the the engine, also dealers often. that own have but to it the to that business without match that in try they are know receive without a we boat very Marine engines need comes to are engine, the never up have OEMs the with event very trying engines. of boat their say, also not without do been to would the their with they the won’t trying

rhythm good this challenge, them a primarily good have something a is to So in work we try monthly our will weekly, to with we it and supplier a relationship but with business. engine keep that production is is that closely

does I Great. slowing quick on guess, in decline, of And do of a XX% outlook slowing, XXXX, up, that we have dramatically then retail a sort but is just your outlook? maybe not not recession assume that a economic year-over-year follow

Well, retail recession recently question. a sure Obviously, it’s a non-formal recession. retail called seen formerly versus fair terms we in we the of am numbers differentiate year-over-year yet a I from the RV retail RV RV can side. with in not comp a in standpoint on have

economy to want don’t the hopefully lead to what is, know general, one to All economy economy will in the of today. tend lead really earliest a I we downturn. formally when in a the recession to is the kind the outdoor with or of recreation in willing invest deal into probably consumer in of of businesses out can a as And we downturn. And you U.S. products we outdoor be with not. predicting So be business the are

has the we I so have directionally, time economy for been where think now. signaling And headed been some U.S.

occur, to we RVs retail we through Motorized to are on make having business and pressure navigate and won’t seeing are will I seeing we in unfortunately, we accordingly -- but a them. the a meaningful a our So, when are -- Specialty now RVs, run speak prediction as recession Towable

Thank it. you. Appreciate Right.

Thank you.

Our next with question Morningstar. David from comes Whiston

line Your now open. is

pass you Good been on Thanks. earlier guess inflation to lately. morning. said it’s tougher I

You did in get pricing strong pretty quarter. the

raise our And backlog, You that our on least in release, already few chain due into you can the do reconcile a -- to they supply from place price prices dealers -- trying that. to or at ago so out called units in perhaps locked dealers you ordered months issues? already just in for related, the orders

it answer it challenged business. that time takes us for of retail, thanks them longer to generally and it for a the has why nature. question dealer risk or inflation to and question year this period ultimately to the and receive so. backlogs have in produce good order in available is the to have last for really us that in resides the And smaller good David, by Yeah. be The The morning. it’s and shorter

the to a the increases, ordered supply time retracting market extraordinarily And competitive is price continuing we from different be it is price to to in the because was our chain today With industry and in times product dealer chain the it at. been it that some in that And cases, price order. are very aware delivered of that at been. constraints of challenged times the advances risk has more and those we specifically delivered, RV so candidly has ever And the probably that a ability better they supply long that were for at obviously, because price took dealer product case seeing demand I well the that lower. that the share changing balance the fulfill think retracting with that consumer lead is get than

need if to two, how So we and able retail, QX much on in will we in need smart be to comments more passing when made selective the continue careful in then again year be slowing more smarter guess will And pricing mentioned were the will and be about we be future. demonstrate difficult power we with to when the but and if it the pricing the to do and certainly to more that we the I a lever, script, would and that. of price to peak probably that potentially the were current last that be or

And that so the that into well. will of some in pressure facing as future probably play the profitability us on

David on to is adding And that Bryan. this --

the the question industry, Marine Historically, You RV of protected both and buyer. as from have the an the asked we retail perspective dealer. price

price a when would contract, we So protection. honor sign a they

the the that by wayside… Given fallen severity pressures, inflationary practice has of

In RV…

had for for RVs. retail customer on protection Yeah, sideline. the most has to the part, … be price in put the

to just So the pressures. to OEMs just across pressures, make has seen the with have that pervasive the I had sure think inflationary change that those inflationary we industry historical practice from were protected

Thank bit about in inventory what with Okay. topic, just And staying or months ago, That’s the four the you. that little enthusiastic helpful. are of a they off? dealers I it guess, asking terms about for much on, less about or versus three same months ago,

I between is probably and The OEMs will would are Motorized still multiple so asking on products on impact on us the taking OEM. of now orders side, buyers the that answer discussions lower still to with market. so are what will RV inventories again Yeah. reflective still are respective terms dealers delivered. that the a And to But they category, each which their dealers producing. field Those those full their and think to the certainly are RV that Towable are discussions need but for take continue orders meaningfully segment, product where bit Motorized Towables for like than will -- with happening are still that’s OEM it now field obviously the like them per things forward new and for we going by they be are in probably but would depend inventory and being deliver any and Those that orders prospective Motorized new that generally the buyers RV. an trends new and they are new Towable almost In now of dealers boat, the and on going retail inventory. are inventory. there Marine each There looking for will probably segment. less boat prospective we most

time. that is because certainly inventory the So lower field is activity ample this at

are worried you cancellations Towable mean? got you $X.X in have accelerating I backlog And Towables, billion, by at forward going all

are It come projecting than continue retail revisit to and is -- there different their to if is potential as businesses. that backlog what dealers they down is for in

So there’s risk that. probably some is of

is when have RVs. as of in best Towable the The of chain though supply also our businesses, on on supply to we to a ability the all probably produce improved We RVs much well. need shape chain Towable

being that active backlog Towables. combination thing. dealers of product to It to to could. more to line produce much they And that they don’t going where combined we so be on as probably sure that to the the forward the whatever make want with will multiple two-year were being orders the continue match of in us is on able them they bad Again, orders that’s ton that to a think run in declining careful adjusting the frenetic of probably future, reflect the a I get this a demand want business opposed just OEMs with to on retail now just we means to probably were placed rhythm they

kind then consumer one on just of uptick been options? outdoor more am last a days. There’s normal are opening leisure that lifestyle these any from Europe’s up, curious at for the lot theme the been air one you whatever that of for And level in is just kind is I away demand other seeing these travel, substitute

boat no are full. consumer slip seeing full. It’s in -- country. strong. are tough anywhere these It’s in the a are get decrease are rentals participation Camp We full. future in just to into the almost the are still days Marinas grounds Reservations outdoors.

We Consumers near side. less less participating. rental because are of still what excuse they or seeing on traveling less are but distance they the gas are occasions calling miles, me, are prices,

still So, car. trip and interest. in and but the if boating, where plane are an anything to for and reserve not to we of staying And everybody an RV trip have a RV people rental a any in the of remind a have on just in seen and terms that of very gas cost inflation hotel a in jump favorably to because you of a will decline adjustment I we compares cost a how seeing probably food traveling are

to especially and want standpoint that renting for from in to spend pretty existing economically option continue ownership a a standpoint. viable be time We people the outdoors, still

but those may the we are are we without influence engagement decline. back interest So coming understand have and not a seeing some doubt, choices consumer other spending in and discretionary outdoors that on

you. the Thank all appreciate detail. I

you. Thank

Thank you, David.

of comes Altobello next the with from Raymond Joe question James. Our line

is line open. now Your

of shared And I the not a better you down to guys. a already, shipping like as does had go just thing would Thanks. have back anecdotally acting I is industry that may numbers is standpoint. answered guess, from rationality say? April, to question Hey, which in like being that sense get and certainly one any words said earlier secondly, asked it’s are to want but it from my for the but been question. a obviously would squeezing this here good guys and I for be that rationally to me looking in. Most in seem that June, don’t I fair One, you as from to Thanks. have mouth, May production a And for you gotten has standpoint. about it standpoint in unit your so XXX,XXX shipment year? number Thanks Mike put Winnebago wanted to something

Joe, to specific the speak questions. just Thanks, share I for first. Yeah. as will over the here so make And not generalize. want I to again, I shipment sure to

the probably Our on increasing. side is shipment Marine share

the has share increasing. some been side in to, stable RV cases, on Motorized shipment Our

past, into the OEMs side the and being are have is to their then schedules that well. to almost now exclusively we on on part where prevent XXXX sure periods in seeing the that industry more production on Towable some a competitive signs in in month we market small to market. production XXXX. that our make trying the that share rational production the decline difficult to in shipment shipments RVs dependent mostly probably have ultimately excessive XXXX, of especially of showed been demand adjusting Towable more adjusting try are a retail suggest schedules the on of to inventory the But adjusted in will us in period are has fall Our all we RV of the latest based head months because to suggest summer with the environment And been macro industry activity all goes again that XXXX again, as I in in retail as we the of

have you Bryan, comments question. Joe’s So, on second any

previously. No. Nothing further to add stated from we what

want on add. have you think, if in but I something know, narrow don’t me Joe, further specifically, anything to I to let

you to are about No. your ready sounds like this but That’s for not one it point. that ask XXXX going to you Okay. perfect. outlook I at retail, was touch

appreciate I So it. Thanks.

Thank you.

you. Thank

with Our comes from Citi. Hardiman next question James

now Your line is open.

the here. all color appreciate wanted the Really couple detail. and morning. of Good dots I Hey. to a connect

So for XXX,XXX that’s the retail year-over-year. unit estimate XX% year, with down

try figure the Just to out right number. that why

us, as if answer think obviously, through walk I April Mike, math sure numbers comparisons then of commentary and down understand most May opposed and to maybe April you was month the am movement in do was perspective was and think, plus. and the your the like and but if I comp part year-to-date, has seem that am understand with numbers will a the XX% down -- we XX% didn’t I in of of a was early through improve that? it to meaningful there when And I you year-over-year June, help that see from the doing that some me right concerning industry. the the us gave from industry those But

James. Thanks, Yeah.

in there of mathematically. see to half the of I easier than probably think this the mathematically But also is we May that specifically. you line here answered offer we through doubt have year with through see comps companies the selling heavy last which some comment on have is the more we months other summer question bit a today your many is in projection the dependent there. It no the start I retail that on back retail, is think with what said we what August that

take months indicated sustained our don’t lower summer be my the of level worse a two there a winter a to we wise. for And number could the math stability in percentage seasonality late. number. XX% level not, numbers. comp retail time. a stability best sort that is morning, risk seen as such of certainly the currently. sort up retail may retail making not present seen calendar But negative just I a in dramatic turn and little months, that’s comparisons still those so month but and has for seemed seeing early business, steeper guess we throughout this a So of as bit of example, are a retail comp But comments we the that get if you of terms percentage have XXXX of terms in not decline. negative am are we at level see XX% to of The see fall, by the vary It of just units The because go easier to off of the do

is as will So sort we as of guess as time. an I we the view sign be, that a It’s it like a okay healthy week we at to that would but environment just bit. still take stabilized not every

XXXX? to component is through the your ASP. when up guess run bumped big think then the And And in pricing more acquisition next, people that, Newmar, I as of Makes think what trying is that XX% part one the most up more through same a sense. is me, comes for right? numbers, I related, versus some are I quarter I maybe right, those Now all-in notably know than ASP of

pricing. way get pointed high of sort watermark like-for-like fact of already to sort terms a is think be there a versus any to the any am be price what Is XXXX given might out are think So that you about how way might that think keep? to in able and you in the net this what able to I today of of much increase that if you consumer, the about you

went the imbalance OEM XXXX. consumer will Retail say, increased a Well, us at ability units pricing so significantly in than present prices -- some on back, new roll first pricing you for of time, pretty the and I rest on And that strategies, see mean, will in I probably because prices see the strategies profitability the Well, the was in market foremost. of terms to to I will levels time. significant. in of certainly don’t dealer having that period more be dependent high pricing dealer saw demand/supply

representatives is or we first root their relaxing fluctuation see year better historical and be retail to dealers earlier, But mentioned happened are think I me, the for As will because profitability to you I believe price to more consumer OEM slightly it it financially continue of dealer in escalate still round. levels just quarter-after-quarter to now healthy, an continues or to say strategies and be us. decelerating with because but inflation just escalate, to present shouldn’t terms I of inflation, degree level the seems we at see the happen, of they is

and those with we try creative that that to so pricing partners, consider efficiency now degree costs our manage to to have input work so we determined we be inflation the extraordinarily the limit operational with then to And have action. to supplier

pass be persists. we that that inflation increase will not a probably still good in And want to because able it will pricing just a and to again recognize the pricing gross have but the our selective And market that, action and use is XXXX, and look remainder of that reported even what fan if continue to to so, not our quarter, doesn’t be price likely mean inevitable we we that businesses. it we the the XXXX and we into that ability very to nor of will share to have big of hold and or in on in continue so profitability this terms to we in most do at inflation that judgment and inflation. of use It’s is completely have will consumer dealer stops unless to we lever as going hold smart of to

Makes Mike. sense. Thanks,

Thank you.

with from comes question next Healy John Our Research. Northcoast

is line open. Your now

guys comparison one. One be your previous to state little bit I is, you of to years more question. the efforts the align right not for try in dive to a the on with might retail taking Thank right in production the the

did aligned and the how know lesson wondering shut last time this you many the exactly what end need to around schedule are like to your of low that there you do plants of of trim manage years, to it do and was feel you bit us plans the if kind guidance give these production was could what for -- of of I terms the through wanted And year. sound a the off kind activity. to of the is updated how What weeks of year, industry a that? positive think of thoughts like this kind it I kind of like new of July pre-COVID, shipment labor, end mentioned it it you the so aligning are how history some year, does the your in just that down, So is into typically many little might of as was confirmation well, model year you typically that expect you might it’s we are I you what not weeks indicators for like Xth seeing get of production, previously, but the peers just summer,

and businesses it But of as on remainder again able in for won’t weeks would and thanks less the be production segments answer you a segments. of it Marine the -- dealer, both calendar calendar don’t John, those for healthy the than I in near-term XXXX trend multiple more anticipated a like specific XXXX obviously will vary what to RVs, able into last anticipate XXXX in Motorized as the will retail be is at reasons. On the probably production I does ultimately, different the state. the Unfortunately, and to XXXX retail obviously, did years. an offer to demonstrably based to production lower had market. of full secondarily, of beginning I we anticipate our be our RV different in XXXX. inventory production field into all than running XXXX of Towable of a base than and function the serve XXXX, the we On again being in and then is of supply don’t requirements, couple significantly Motorized RVs, at it be Yeah. On question. be XXXX

to history how or varies weeds there you and reasons into some weeks and without of days even specific time legacy are take and in deep cultural the as of… the by when sort or off So business too getting

Instructions] [Operator

where that is we ultimately So are across…

[Operator Instructions]

help. you can Operator,

please. moment One Instructions] [Operator

Okay.

resume. may You

Sorry.

Thank probably you. John us. answer, I think still with completes are my if that’s you

you, am I it. guys. Yeah. Appreciate Thank here.

Yeah.

a have follow-up I you. MKM Scott Partners. Thank with with Stember

now is open. line Your

Yeah.

that calls, about Just being a same follow-up, still in I now? past have backlog months the is talked think, you six out, right

we deliver our represent of the period. month in what quarterly would every to us like is units do earnings dealers six-month Scott, So, backlog within that a

model particular because more a that but year new backlog that the our a they meetings They Sometimes have be dealers usually we or earnings for orders do model give generally that dealer happens in is when we even have on we a get quarterly for than half does orders release longer in SKU we it of months, booking within some of period. events. from in can us today, look forecast dealer sort even six-month of only dealers maybe period in to six mean include that time, years and orders, may still cases out every wait unit not product near-term. receive need or want they the That of

on to the as segment continues environment, especially the So, be RV again, retail challenging.

the can that to us from dealers take make that monthly We reflective will with really into are of us think a once -- taking we they to -- continue the in the they because and our order production that that try what and numbers the to to give we they that sure that unit it’s start confirmed on dealers process honor turn we product. process, expect once production

it. Got Thanks again.

Thanks, Scott.

to showing I’d And back you. this no over I further am at the currently host. questions to conference time. Thank hand our like

for really morning. We a everyone you you with taking joining time us Have be out schedules appreciate thank call of busy and Operator, do this great today. your to you, our Thank day.

Ladies and participation. gentlemen, you thank for your

You may now disconnect. Everyone have a wonderful day.