Winnebago Industries (WGO) 19 Oct 222022 Q4 Earnings call transcript

Good day and thank you for standing by. Welcome to the Fourth Quarter 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 may be recorded. to Posadas, conference Relations Vice Intelligence. like speaker to and now Ray today, President would hand over the your Market I of Investor go Please ahead.

discuss for Good earnings year us thank everyone. fourth you morning, today and And results. to fiscal full XXXX quarter joining

with call know, by new This and seek our broadcast with our connecting you the be investors of Industries full and at issued results community. is to deepen was our and joined website Executive to I analysts website on President replay with look the this be and later along relationships ahead. a quarter on to being partner may As you earlier and today. with the continue and and the Officer; to supplement. Winnebago our excited fourth Hughes, year This quarter website to the working earnings Vice months to in morning team I posted with investment on news and live investor.wgo.net am Bryan forward as the Mike Chief release the President we more our available I am call today Happe, call of will fourth with Officer. Chief and Financial

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

let forward me and certainly. the We to look Ray, officially team. contribution your Thanks to you welcome

efforts Additionally, in and I'd like transitions his as years several Grand wish for Investor within internally leader as to position past our the subsidiary. RV well Design he him to thank Steve the CFO our Stuber Relations

both our are Steve truly Ray team and here. have on to grateful We

morning, everyone. good Now

the always, interest Winnebago time to our and overview As quarter taking I year Industries will before offer we XXXX pass more performance financial your during with of cover start and and we call Bryan thoughts our it appreciate in full in quarter the Hughes to some then results the closing your results. turn discuss fiscal will our year, I Subsequently, the to questions. full to detail. fourth an

those follow past and outdoor laser-focused Winnebago been and fiscal know never achieved market resilient, has of Marine, our large more outdoor year outdoor X both Vehicles industries, enterprise on in recreation Today, well, outdoor overall profitability consumers. diversified, a and spanning broad years, we revenue, portfolio. we us initiatives XXXX X our The those Industries with strong record As premium more success range have enhancing Winnebago X secularly when a evident fiscal created connect Recreational enabling to of company brands, have and competitive over was profitable strengthening This and who the Industries. than share.

last embrace in golden delivered We levels world-class premium the and here, for and heart existing as of that throughout team they recognize products threads consumers to years emerged, market focus, that of no we Winnebago also innovation new Industries for unprecedented on demand respond exploded new It have our is see trends quality, outdoor industries overall and and have products the which grown will lifestyle and the relentless substantially impact secret more consumers Thanks consumer outdoor our forever. our as outdoor commitment the service lifestyle. penetration demand X our portfolio. of the to

has believe continue in of interest While The These than our on the interest the in better Winnebago and outdoor that capitalizing are we long short-term to a trends strong term increasingly the successful the on. range ever portfolio. that lasting growing demand, outdoors impacting of of Inflation certainly a are diversified we are been inevitable reshaping recognizing new rates macro and retail ushered environment diverse has normalization at Winnebago past demand range at are consumers wide level. the positioned landscape. consumers Industries with that to by more year serve economy in rising an Industries so a

well confident adjusting to multiple are to strong is that we will ensure deliver I cycles. feel to our through positioned touch business continue and we ways shareholder that we perform However, economic the continue value. to profitability on

year and XX% Our revenue same ability Winnebago year to environment. fourth recorded period volatile a fourth $X.X in delivered deliver we over recent last performance best represent quarter fiscal of XXXX in Industries' our results the flexibility demonstrates profitability. outstanding a net in which and increase were record a which finish to strong revenues We an billion, quarter year.

by Our last same shaped key performance that dynamics few have quarters. the was the driven

products. First, powerful a outdoor the a lifestyle sustained Industries excitement tailwind, driving for for premium demand Winnebago remained

economic us market diverse Our environment. allowing to share challenging increasingly leading win positions continue brands within maintain a consumer base, to strong with our our

increasing Second, excellence chain, disciplined efficiently the on delivered investments of through to our the our operational of partners SG&A. and bottom innovation the relentless demonstration efficiency brands profitably. team and and for us in deliver has pricing agility of our power the enabled consumers line our our products, dealer of operations supply The the team's our of

this impacts quarters, experiencing supply chain are in ways. the which, each As different our of discussed in segments previous evolving holistic for in degrees disruption, constantly dealer macro in I of levels have varying inventory environment, turn,

team inventories appropriate levels to Responsibly For closely challenges RV our continue to with market ensure of inventory to businesses to we Winnebago carefully. dealer will Motorhome example, that and rise Marine manage Towable have always consumer replenish need. and sustainably have. end partners they I our maintaining dealer we each supply demand, confidence the levels align remains priority, and they the ongoing Industries production have to the with they producing are world-class while a RV work working field

select achieve and maintain appetites. Even at production Our of our fiscal products. as performance the in power voracious full strength our lost shipments we capacity of extraordinary people, throughout the Early industry we then, growth. our our in an categories players' share the a we ongoing to operations on to discipline delivered testament of shipment sense of other likely is XXXX demand, RV running and the quality versus year, tremendous

have of conditions we and a demand calibrate As focus consumer production dealers recently the exercised end by further business the downshifted, needs adjusting value certain rigor sustainable levels. on to and our to have in segments long-term market constantly

road annual cover Additionally, actions through delivering our and the and than the of through we And of X,XXX cost miles a talent. Most record margin his Earlier the touch and gross to net finally, this trip. we e-RV, XX.X%. team all-electric even which our a single of manufacturer. executed from introduced share on $X to managed importantly, drove the here major a year, levels concept innovate returned And during of continue on Motorhome strategic record to XX.X% significant in first zero-emission shareholders, and market annual billion, add product shortages inflation revenues businesses pricing RV we more record cash supply we commentary. RV investments Bryan record year, will the

business recent base. We are which the approach open category introduced products, units house dealer prototypes being end in each customers calendar RV year-end. won of event we by with were At moving received as positively to September, late closer awards commercialization multiple and actual new tested very many our multiple by our of RV

Chief our our Winnebago as senior Marketing experience exciting with Newmar's proud to performance also including fiscal Jeff leadership team new capabilities. of incredibly Holm President; I as Tubman first Amber year, Barletta's Officer, Industries' significantly enhancing in Overall, and am added as our President; XXXX. this team new We Haradine, and Casey ever

our turn summary, to results quarter to and a our continuing macro detail. now future XXXX. to look working outstanding Bryan? face Hughes, focus full that our I Officer, volatile strategy review results fourth our record create Chief in environment. the of continuing is continues and team annual to our show financial Our Financial in deliver with move that Bryan while call value will With to as that team XXXX into over fiscal we more fiscal I the results forward

Thanks, Mike, and good everyone. morning,

quarter billion for As Mike represented compared reflecting the fourth Industries record to of were strong results Fourth revenues year year. billion, $X.X an finish period. XX% $X Winnebago to noted, increase a a quarter

Towable RV in the offset on by inventory Excluding on the organic shipments, as quarter pricing decline pulled unit quarter we in growth the in shipments shipments the X% increased Motorized fourth response during which was production actions Barletta, of driven level unit to and partially channel. for by a our was back segment and

offset realization compared to was XX million year quarter of a the quarter X% actions in to to last to year. the lower XX% $X.XX million share logistics segment X.X% last Operating transaction to profit million $XXX.X than be earnings actions As fiscal year. costs million this including in of the quarter of Gross fourth our XXXX. as profit component compared per $XXX and adjusted the partially in as of EBITDA XX.X% XXXX. increased was Barletta, timing points organic and margin year. $XXX period per to closed deleverage, quarter higher Towables last the to the early for and reminder, result is to increases year. basis increased for $X.XX fourth earnings that quarter the for income, million $XXX.X we costs, compared the the the material for diluted increased to lower last to the quarter results, fiscal of those reported pricing quarter and very first Consolidated therefore, volume share the $XXX.X diluted excluding a of we given compared compared reporting Adjusted $XXX.X costs. the Gross in quarter higher increased input will of $X.XX to associated last Fourth period XX.X% $X.XX million last same compared by same for

revenues gross business, we and share the work on Sales entered the Industries XX.X% in of inventories delivered by the dealer adjusted replenish our Barletta sustained Turning $XX.XX growth record and particularly demand consolidated record every strong recently acquired Winnebago XXXX per record profit diluted by $X the supported demand to was dealer including volume the earnings earnings had and results, driven diluted billion, XXXX of fiscal we Capitalizing as a now per to record inventories, business, $XX.XX. of annual need strong share pricing in XX.X% actions and of year. low field growth and margin reported results. fiscal of annual consumer

XX year increased that margin profit basis points gross offset the price prior well-timed annual result and of over a operating to inflationary Our pressures. leverage the as increases serve

which battling Our worked throughout the disruption constraints, environment team production also our year constant extremely steady to a were and caused hard operational inefficiencies. supply

to the fourth were to revenues quarter turning $XXX.X XXXX, down segment. quarter of of the fiscal performance compared Now fourth by XXXX. million XX.X% Towable for fiscal

as our decreased shipments. Towables Adjusted EBITDA Mike the quarter XXX response As in margin year schedule million, EBITDA the from inventories, dealer in material decline basis anticipated $XX.X This earlier Adjusted replenish resulting points an of time. fourth for in adjusted would period. XX.X% the the mentioned, was we lower unit and deleverage, offset a fully segment inflation to XX% down higher that production the XX.X% prior to due in over year we have margin year prior inflation the partially actions. costs priced component pricing impact in expectation in compared quarter the by with ahead to of was and

anticipation price inventory elected XX.X% in fulfillment extensive the Given normalized prior decreased to dealer and the in year to for order market our the increases state million, of in fourth events due forgo quarter. down September, levels dynamics, $XXX.X of the in throughout dealer inventory our the channel fiscal the we our and Backlog from to year.

related over pricing On of sales. increased Marine continued was to of the points unit XX.X% to fiscal basis XX.X% the EBITDA to material actions to offset Segment year, million, points the increased million were by XXXX, basis component higher prior The well unit prior revenues margin quarter related strong pricing and and offset Adjusted Motorhome fourth billion, revenues annual driven actions to for pricing from was XX.X%, million due compared to $XXX.X material of costs. XXXX. adjusted costs demand compared for higher an fiscal component and Barletta sales efficiencies, material actions up year to Chris-Craft. XX.X% representing were XXXX. $XXX $XXX.X XX.X% $XX.X over and For $X.X Motorhome performance segment the an component for pricing over the strong from by margin prior fiscal component $XXX.X quarter $X.X year XX.X% quarter XX.X% partially down higher $X.X were points increased to and fourth last EBITDA of to continued to Backlog fiscal million, basis the due quarter up was and decreased year. from year-over-year. production XXXX. Adjusted actions to fiscal driven XXX XX.X% by EBITDA perform the material revenues billion Total consumer year-over-year for and up segment XX.X% and costs. billion, of higher Towables Adjusted Adjusted from Segment good grew margin the fourth continued increase XX adjusted EBITDA of million basis, revenues EBITDA up taken with XXX strength due XX.X% of costs. that the XXXX, increased full and year. EBITDA

XXXX $XX.X Barletta, a $XX.X XXXX. was year. were last in growth for quarter Excluding million, for revenues organic EBITDA Barletta elevated over adjusted Backlog up primarily of fiscal year. $XX.X for include was XXXX the last $XX.X the was million, as segment margin million EBITDA segment. from remains up over Segment Marine $XXX.X fiscal million $XXX.X the period persist same this representing results addition XX.X%. million inventories the $XXX.X business. of EBITDA fiscal by low $XX.X dealer Segment was and to Consolidated adjusted increase compared million, Adjusted Marine million, driven the XX.X% million revenues

Turning to Winnebago Industries balance sheet.

the million of of of composed costs we issuance net the outstanding of had million. in net of million debt in $XX.X end and convertible of As year, fiscal $XXX.X debt, million note $XXX of total $X.X debt discount

continues by securing of ABL liquidity of our facility This size to working lending previous to rightsize the by upgrade very our need an facility. million. $XXX driven to had our $XXX.X a recently increased million. million asset-based also hold capital Industries $XXX.X and from We Winnebago position business healthy to current it added fully was of credit the facility

in cash to ratio also of investments X.Xx, make capital business which execute while net range adjusted serving the below current debt us is to X.Xx, Our our to EBITDA allocation balanced on to strategic remains X.Xx our allowing targeted to growth our strategy returning shareholders.

by commitment to Industries Industries' share maintain Winnebago As currently reflects that recently volatile in increased to for evidence priorities, conditions strong dividend XX% recent the of dividend $X.XX remain this our facing per our are ability continued Winnebago increase resilient the quarterly these we through most confidence to and profitability. payment. market This

fiscal outstanding the our $XXX of authorization new $XXX million Directors course year-end a during in share of approximately fiscal we executed previous XXXX addition, $XX a XX% bought repurchases, and resulting record, at shares of fourth depleting million authorization. fully around In We back quarter, share repurchase XXXX. the shares Board of our new of approving million during

fiscal all have our priorities capital levers are pleased during allocation XXXX. of to We exercised

to addition turn to financials balance our $XXX returns and full review reach, growth that organic That inorganic Mike the in dividends, all call to to buybacks allows shareholders Mike? the shareholders. I'll some invest healthy behalf of share this strategic comments. of year. on for to for the a Winnebago of our within maintaining form to concludes In and quarter outsized provide Industries my opportunities continue capture closing investing us back and record in returned and the now sheet million of while a to

Bryan. much, Thanks very

cultural the As financial, and have made. organizational proud we we are of XXXX, strides on fiscal reflect we

linger to chain particularly Marine constraints we XXXX, Motorhome our the with and will supply more fiscal into progress collaborating we some continue impacts and While become suppliers. related by make the in anticipate effective segments, minimizing closely select at

We our inflation customers. products also demand to for and in monitor premium a to while pricing actions continue affordability our balance tougher of environment trying

to our continue we efficiencies variable structure In help maximize and margins as addition, possible. profit to leverage cost leverage operating

brands. strong at in open on all proven and to was build County, new to many will showcased the new strategies products our executing particularly across our momentum by We on focus Elkhart event I recent introducing Indiana. RV witness products continuing our the excited house

and come. Our collective the the of industry to efforts dealers to months weeks. all XX.X% XX-month will share brand, trailing Each SSI Newmar for as seeing on received X.X% of Industries latest the with strength displayed Design forward into Winnebago in brands report, unique Winnebago The top of market Satisfaction latest impressively and Barletta market. position win RVDA in continue partners Grand the building growing were recent Awards these of and our the results experience. also currently in moving to products RV at RV pontoon I look Dealer share brands the us our in the X presented firmly consumers, market to to

for on to touch Now for want quickly RV I the the year. expectations upcoming industry

As we help considered environment are All estimates we to Concerning are a factors shipment things aligned calendar we with forward-looking of retail lower range closer XXX,XXX a assess knowing recently year XXX,XXX outdoor data latest industry likely the impact believe to than demand. XXXX, numerous mentioned the that period, and slightly of projecting to closely are and generally for XXX,XXX can are forecast. shipments range XXX,XXX RV for leisure year units RVIA's to previously, monitoring in XXXX. RVIA macroeconomic will materially, there released trend units calendar that that

our units The in are our is in how XX% for hope drive XX and on there you on the calendar continued highlighted are for consumers, Winnebago years creation November in continue our growth and as our shareholders. at profitable shareholders shares. the dealers, about retail we the RV enhanced levels our Winnebago you value Industries building that Day positioned repurchasing value driving look in and have estimate XXXX believe year and see we to Industries telling dividend increase and person. accomplishments record in headroom has shipments sustained by of XXXX. For wholesale recent Lanier confidence we Overall, significant value at end last We in to retail, for We the ability upcoming commitment confident term, to and to for to many Investor well long Islands employees we of several to XXX,XXX units Lake more why forward Georgia. we over equivalent

to and of X,XXX-plus each immensely get This our I contributions. at are partners than about business them the our of efforts customers, and end company more care want the and I here acknowledge messengers deeply their credit employees culture employees Lastly, because deserve as for Winnebago often, our our successful and results. Industries strategic thank Too other. our Bryan outstanding we all

and We What each daily team. are back call We our will privileged our prepared your of now this basis. saw is inclusivity incredibly month great awarded to for morning. to of the Award this work achievement Women on them Alliance. I remarks over dedication turn this inspiring. Their by you time. excellence when for That Winnebago Industries RV a a Champion recently the operator. Women's concludes Thank to the evidence was of alongside the

the [Operator line Thomas comes BMO. Instructions] And with our from first of question Tristan

is Please open. Your go ahead. line

return EBITDA commodity costs A Just Towables and interplay then on between you the what bridge promos margin us lower and adjusted questions. Motorized of maybe few the basis? price and production and quantify Could rates, increases? kind an for help the

had, go Tristan, margins a overall, quarter here. I'll We level gross take detail I of at strong think in know, And Bryan. some one. this I'll is that you XX.X%. as into

missed, say. EBITDA level segment Our I'd results were margins

had at margins year the very through Our demonstrates segments, margins XX.X%. strong EBITDA levels. recently, Chris-Craft the at quarter the XX.X% for the strongest segment, the XX.X%, acquisitions margins at and our at Marine were brands record the Towables we segment EBITDA year were of our and level of our for and and year for across we record the were why quarter strength Motorhome the three full for and, Barletta. XX.X% entered have this more In X

inflationary year, pleased even saw XX% within EBITDA we past couple time in this segment of over always we managing So an as that talked we're quarters we And a fiscal high market quarter, for in and in timing. We've recall, in margins 'XX. The Through tried with very XX.X%, were of QX EBITDA that, period margins quarters Towables some to as this pricing. in that that and likewise quarter cases, pressures the the this reflected with timing excess navigate but we've the in of as XX.X% didn't a at individual well-timed of of obviously. mind, perfectly longer equation saw dynamics also match with course. you

to historical on we this some but prices have continue QX showing traditional that the to As segment to that have the fall, take cost segment, impacted look you that likewise now and QX, something continue will and levels, the our costs stabilize factors months. reinstituted EBITDA in normalize margins certainly and over are industry believe we'll our low The brands Towables dynamics Towables margins. long are logistics today will at inflationary impacts a and to premium summer the periods, during if that and we margins is more term, we the entered practices absorbed, fall seasonal compared normalized be inventories we product Weighing normalize, programming, as and all including those EBITDA margins encourage very impact heightened our some the dealer as on the for dynamic market for leading. as deliver at dealers stabilization the

additional color while rather drivers, So ever do gives the margins. you you the help of didn't breakdown we to of understand give think versus nor inflation impact I pricing I that versus some other a

I margins moving just model trying how everyone to -- is Okay. to guess out trying forward. figure think I to

we of just you if quarter and the could stick was that's going impact around. biggest this even if rank kind what order So think to

Yes.

really environment dynamic to forward a cost amounts we're across about cost now. what of the and And when I timing inflationary as as how this certainly, It's well. the I account taking thoughtful very institute environment or be view and pricing stuff also going think P&L. plays into then our mentioned, we it's right of the

that much certainly a for into more term the we term. than We our manage long decisions quarter. so managing -- We're margins And don't short factors in clearly them that.

we as that's to think well. so convey And something certainly that that, want I

question And comes Scott line -- our from the next with MKM of Stember KM sorry, Partners. I'm

go line is Please Your open. ahead.

seemingly Can you obviously, little system. open bit about maybe dealers imbalance event, talk house? order ago but open weeks bit these couple we environment, years, And dynamic lower-priced saw an the then that house, place about prices. a the talk XXXX little we Can any to pricing this trailers reluctant didn't into current of you but of intake two of a and took a at the heading order last have product while from at perspective had unique. what We how had an in you

showed quality first house Scott, And house. with product open the I'll this start, really and a that we open we the is had foremost, I good Mike. Yes. event. during of lines thought

fact, several with their concerning of we at innovative open In will be some in industry awarding of additions the house. future our showed some brands awards products many that trade magazines

quality back house up good the show dealers your and in not with a Secondly, the we to discussions with that not was time County get have a and of had our future dealers. with the -- time of a great since XXXX. brands And held been honest only but country's displayed. productive any about had talk spend you customers, I'm in to one brands, sure our you to chance the discussions Elkark share OEM spend of manner. It time Open see majority perspectives other chance all

shouldn't we was Elkhart, some small pricing as We take. the the up order inventory discounts on to this that, terms house, XXXX clearly in that, similar would Elkhart showing very stated very event our morning our or been field particularly dealers house side, the take at were product that an at not investor at steep Especially for said the open And week and event discounts in past. they level. in in orders levels Towable very the I offer do to we record-breaking As Towable open it in a on love had candidly in that programming incentivize be to was that the continues to while collect of of side. to not in to year like healthy cases, promotions

is the orders. our a better forward. away walked on amount a importantly, majority we're of with an teams probably away work going about more alignment But going is a basis for with and our season. we into It tend collect hypothetically the the Open around them solid So with of event orders we to an not several house the where with months, spring, dealers event. daily important obviously winter walked particularly next the hitting latest We model for orders then to collect the year. how

teams our with the event. pleased were think So overall I

about problem in terms no of our their with have We communicating dealers needs.

need productive we the so keep we orders business have in the and disciplined a to fashion. And running

question. then And the right. just last All

give just we so what modeling, running could Towables can us true Marine, just for versus guys an at to your the an idea to year, where stay the you Assuming the just production we're Motorized you of disciplines and versus least in indication numbers early sake pricing have at be? need of

I'll of relativity. Yes. in Certainly, Scott, talk terms

of damaged. Marine assembly Unfortunately, their position, Chris-Craft's many terms boats runway maintain inventory a that We is to industry both time standing lowest field it's dealers in up several that business. the plant we've and Florida We're businesses of owned they the Sarasota. in been we our have of dealers. their in have dynamics healthiest or continue that with are in saw candidly new customers Southwest the the in the our the X

an so us. be for way down consumers the and unfortunate And there'll road benefit in dealers a for those

a in a ago. month same basis strong be While market that macro our Barletta retail its share. in very category is with year mark of brand. to us now up points it Barletta trailing in it XXX X.X% continues for over slowing That's data terms demand, retail has

both on lines, are on the the also end. new highest so product And introducing lower we end and in Barletta

the we remain a that the Marine us likely overall future. for And invest segment continue standpoint so the in will and BD one we bullish where in from most is segment to

RV healthier. in the expect, pockets segment way need are inventory, And There be are of year. I they're segment probably is fiscal level. for terms position The where think, portion good inventory margin they pockets there can candidly stability the so Marine and want where the of working Motorized a still back to a has reaching been field that you to dealers its on good of turn our some business Motorized a where certainly 'XX

We particularly product on B as as solid the And with some been Class in see late side C. their terms well. very continue yield of Newmar very been the pleased profitability on to of running A Class line, has I've way the our Class business profitability, of

'XX. Motorized overall will normalizes inventory the pricing on some we a to saw as played So you take the pushed ahead is open field in of full August, programs bottom maintain also conscious Bryan extent And the of role talked the of as house, And margins about what about, made of talked timing. to in the our our we've yield double-digit to probably will settle very fourth a into inflation terms that over profitability line just dynamics also a the candidly, a Motorized timing biggest decision market portfolio. as element position year fall But and lastly, segment. a quarter. of We expense the month within fiscal specifically. bit course believe intimated, that Bryan, sincerely Towables

we levels confidence and will will normal but see stabilize the Bryan a we travel rest you we maintain position that as through That likely margins As believe 'XX. happen. will fiscal stated, at that will of be historically gradual Towable industry-leading development, that them a that, have

And from question our comes with of next Truist. the Swartz line Michael

line Your Please is go open. ahead.

Scott. just up your answer with follow part the Mike, wanted of to last to

Towable some fourth and I were improve margins said timing think issues you to you gradually through had there quarter, understood. the fiscal 'XX, in expect

the next margins XX point Towable the So does point of or kind way just the over another -- that for that fourth -- is saying months quarter be so? of that, low low should that maybe

a is Well, to it. X, won't Mike, the chain the X.X ever you in for the volatility thanks I disruption, seen inflation, we've pandemic, commit mean in a years the enough war either or Ukraine, with point. what last I question. low supply name peak certainly

that our no the in that permanent. been were I saw deterioration a of Street what sign guardrails than continue is commit by margins are lower bit quarter going you of on means in it that a believe that's while to some We margin fourth So won't may anticipating, earnest. have little

I Towable margins team in in a especially through X panicking with a and not Grand weeks as first significant here near 'XX We So their as we But here has be at deterioration business Industries. margins going the works stabilize, of regarding understanding to margin we you're the in Design any But here sit next gradual are the not their how that most X costs X Bryan about those to Winnebago over performed decent likely Towable opportunities quarter. quarters. product line, are stabilization model degree year X.X believe to will weeks. the term. see into our do that the

are XXXX look at people us going I gave Maybe Okay. similar the That's fiscal business on to And give say, maybe what suggest comment of you're through helpful. maybe earnings some then walk And -- the retail think something the thoughts we year back I would follow-up there's 'XX. quickly XXXX. I thinking okay, the -- how a the power. to parameters of your XXXX said you because outlook saw made, that for just has changed and about on think in in you some that maybe think you

different us maybe earnings and is the why of be should number some outlook. of some context that we 'XX thinking about drivers, the business puts today give of to your how and maybe to takes XXXX some relative So maybe the

Thanks, Mike. Yes.

of and me I Let how company different mid-October is talk versus, think month the same probably why the in with XXXX in XXXX. candidly,

significant Probably pretty in almost billion been X foremost, and added has material we've $X added of of terms businesses. acquired businesses. First revenue

the the we grew Super has business added been A and in in gas be bigger, terms year fall well with from Newmar. 'XX in a a business line well. year assortment. early Newmar line 'XX. of It expect complements very but brand fiscal brand C That on in starting more share in of as diesel, fiscal here revenue we Class in First, fantastic Winnebago taking to Back XXXX, also And A versus profitable positioning, future. product the Class that significant

calendar the The likely would marine one in of fastest-growing well. revenue of in in companies most you of do industry, that 'XX I pontoon candidly, second profits. time industry had calendar that what And in XXXX the late sales. business to history today And at continues fiscal very sales they of pontoon their and And in can profits company, August they of the as the we tell and grow. acquired exceeded was terms XXXX business did we what acquisition Barletta, that the XXXX stated and anticipated fastest-growing we year in

acquisitions headed how first the we have significant in is to So we different X new are that are answer direction have and significant right the runway.

lastly, of our improved is the had dramatically different We the is that just out. the new that would through Motorhomes, waste ago. years than in a different our gaining is of profit on significant drive in least side our sustainable. several Motorhomes And indicated work to of and a which I I at I X XXXX. as profitability years of ago, say, think inefficiency product, which we're not share of Winnebago-branded organically, is And segment we've the the level as in profitability operational company Winnebago-branded seen share. minutes five other elements, Secondly, businesses of variety last but innovative a four, least also has transformation not

in of the fiscal We the think 'XX I share. XX very share industry. almost someday. our X had share pontoon XXXX. market to digits marine we as the double the we today, in in sit of fact, on finished almost fiscal of X% RV end points way And with share have space enter we with And of at points low in 'XX. here X.X% We had we

combined So set that streams, on. floor a all resilient a to are has profitability via that of more make runway raised those bullish quite revenue we of been and diversified us a

fiscal proud competitively, good quarter. numbers, of are I 'XX. fiscal We there of place to we always in to whatever a the through but the We're the nuances gives proud market think, us. 'XX we're hit fourth in manage So recognize into

And our from question with comes R.W. the next line of Craig Baird. Kennison

ahead. open. is go line Please Your

guess your that about been consumer. the you the more think But control in affordability, that's And monthly wanted industry's things would and channel. input those in in see prices perspective. competition a the of cost cost be point ask things higher, pain Interest rates a some dealers inventory dealer are as and pressure I can't see significantly any control. Might I How are some margin for and your And costs I we the a increases moving to just channel? like-for-like other we then might are unit? dealer that RV some within also offer trending your with the from categories? more increases sharper deflationary

sort lumber, some is won't is and cost your for was news XX% lumber materials, peak. market, its its of its I aluminum the is certainly at cheaper probably have the the of last seen first year. inputs. on what probably, in peak. a better our at question. candidly, peak. we probably the it significantly many Steel cheaper And thanks is it cheaper steel, of XX%, good calendar XX% raw spot Craig, than particularly into course over environment terms it we're was our on get of Aluminum of The seeing than to specifics. speak of some than at candidly XX% was I'll

always or of some mean is We the as acquire some to And doesn't commodities to reality take us exactly and over integration that should the of able our advantage definitely do some those those trickles But the that going time. those think, time those material raw that commodities to is I has be we with vertical at of benefit, hopefully right suppliers market are to our that to full Now acquire well which us. suppliers, materials, help improved. drops.

capacity some Motorized and is continuing the limitations, automotive have the getting there not sort basis, of however, many systems, in are, of that not the good most on seen still cases, little a pressure component are is is -- on higher bit areas deflation from to types a or like chain of would chassis situation environment all our categories We seen of they're supply we either cost cases, Certain a inflation constricted. where is themselves. we've because putting in semiconductor see suppliers, the we example better. But in where at the quarter-to-quarter still sequential year-over-year. but than

Now on tougher. is the little the environment flip retail side, a

care In brands, retail, said, inventory had. deeply in top side, about. of levels. at in be to the is their margins going stated comment fiscal field and being they a in also than it healthy. financially during the differently of list that power the to very pricing we in look they're 'XX. sources the both margins. a many dealers height That to topic we we And little of our our were other are and and in therefore, on not dealers business did is We but to terms turns our that at status bit by that cases, 'XX want Marine so on peak RV Dealer And though, profitability operating I'll we've retail dealers brand. probably have And that the the near constraints we with operating carefully pre-COVID are dealers, fiscal candidly, us they dealer to levels are. think, want in many heard the be that some closer demand cases, to of margin

generically RVs affordability is The the particularly industry. that to something is historically. of important I normal think relatively So

most the point opening be the that not step our of We to. tend often people to are up dealers. We brands in price brands

the ask So that to pay we pay the brands. price versus Craig, attention value consumers differential we to more premium most our brands for likely,

to that for Our up. consumers that gap job step manageable keep is make to

with kind future. the run financially And in think I when at our right return We both position dealers we're turns. to now. sales behind of higher healthy to are like They'd be their slightly those. So in dealers fine want great the the business winds

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

Your open. go line Please is ahead.

little change more Motorized there side. the to you sequential pretty what dig booked looks Just on sort in the guys given on of bit a Could was you a backlogs? like sales big

on else that cancellations? was just Could that's you more... a there? going bit give So that Was something

Fred, this is Mike.

as Just need we asteric in backlogs an indicator we've stated as always this of be an question, answer careful -- a business. terms to all that future I as of

those commitments We will to I of performance on are dealers future. we sign Motorhome are slowing a be healthier, would market getting of and new in in terms are the retail where say, a monitoring mostly that simply believe today future. backlogs inventory carefully levels financial placement the from orders in with or based of Motorhomes the perspective, dealers' we their with orders comfortable have our the probably us. our what they pace is either field set the turning turn down the they'd of decrease where like to in And

an We of have inordinate units amount not Towables. either Motorhomes seen on or canceled

inventory not it little orders, our something but a will we is that canceling on either here delaying right is work receipt lots, coming orders at with the There's dealers any of to is immune our of bit through not it efficiently Industries brands. that epidemic are or over RV We weeks. the of committed Winnebago something but now open

and of future So I to just Motorhome candidly, a see is, think the in their filling field dealers terms appetite the what retail. they Fred, backlog, summary, in adjusting of sign

or the could then, Makes as the well, either you replenishment that you not? side the housing something side, sort an think potential on maybe or Marine hurricane impact on of impact on had is touched have a impact standpoint Mike, from RV sense. And but or that

Yes.

to of first with trailers make company. organizations us Hurricane like sort generally We FEMA or on I incredibly the now it. really for to that think housing. Candidly, I been about be don't implications and too statement going our are of to early table Ian material strong the temporary think not at it's have a

necessarily not are units Our purposes. for those constructed

that pictures lower least first of and in But places Our some that be have of more are units? foremost, damage. need I probably solution. types major a doubt competitors think line you some brands storm. of loss for ending that have cost, positioned because to for up higher cases through RVs necessarily of and are no those imagined our were our of specific significantly, that their in volume that. in be There's not there Should the homes of damaged or boats we never impacted at heavily seen and some could customers

So we're settle. going dust the let to

contact area be with sort And teams as categories a dealers over to and there areas, we bump in begin the people those in we'll and the next couple our likely in are can. years in in those dealers will of rebuild Our provide most support lives. consumers all their that a our sales of sort geographical of

strong. get want road. or So the onto onto for passion people people's And outdoors list pretty to back going the while is it's the replace, of out not be things water back to to will their on #X

in consumers any units most lost do we so believe will them And the who them replace will future. of --

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

line open. go ahead. Please Your is

things with Bret of any do with a higher This have changes progressed dealers? buyers? Patrick payments, financing know here, loan effects bit longer higher retail for or Jordan. moving bit environment environment you level rates? it conversations environment And any on different a down How of forward? commentary with a of have Have seen in cash you have you at the the about obviously pricing entering terms the you've seen portion on but the is Buckley talked I additional a higher

any from Yes. to first if I'll Bryan financing maybe half retail on a of defer I'll and side seeing here maybe in inventory or the we're of he has of what terms equation. pricing the standpoint, take comments the that

dealer that of late back as have on as I where margins pricing think the And as is categories in normal think don't fall sort -- We a some see earlier the the I vans terms mentioned community. said summer of lot dealers the Towables, and themselves earlier Class in in of dealers seeing share months. the aggressive be towards of like I significant margins by and their for more irrational there's are historically consumer even are over here fighting one we particularly earlier, demand there pricing as well. been in I questions, market, B trending but

going And will so pricing less, power but softer retail is if fiscal 'XX, haul -- and and because meaningful be doesn't inflation place over we the profitability in probably that to long I necessary mentioned earlier of that as see. protect see well our as -- our that conditions, should we put we pricing mean that in

the to think sensitive, everything more a are to I basis. daily those price the on though, given to of dealers and be timing we're facing increases, our just market going

the financing So the Bryan, consumer of any or maybe comments on in health general?

can we've up that with cash Yes. those may percentage cash hand or often buyers appreciate, other always in are of a buyers buyers We've bit always a the show source HELOC pinpointing from versus you they finance because, of as with financing. struggled

the heard of available. on of balance duration that changed, the loan heard Interest couple retail side. in to the points shorter duration side versus Still It's So I still, And of your was yet XXX That any think it's retail a rates widely one of we've another the cash bit still anywhere over yet. a we've from also, years. sheet widely finance remain hard is they has retail to personal that that given least duration, past well. to strong on that as the changing longer where are pinpoint. not We've XXX available And change which versus heard not or mix had probably of higher buyers. buyers not financing. questions, relatively been of at

that, those demand to retail sustain that So will we factors think future. near helps of that be the one in

I'd environment. the balance sheet financing remains a So to additional And changes no really share, perspective there's significant perspective. that some retail from customer pretty healthy but

then very inventory And estimate there? provide there built of in color been, also, changes That's or lots. that's any dealer to an are Great. sent relative And been to inventory where maybe able guys but you've been to sort levels hasn't give are helpful. you on any historically just recent

goods sitting on amount reasons a for Our inventories in not terms lot. finished massive of our are of elevated, but

is working a of But part We can. as areas. manage manage That goods. materials, finished raw to a best work continue certainly number of process inventory capital We we that. in and includes

excessive on earlier, of inventory, a inventory amount we order what not call on I As with with an comment our lots. are sitting I would stated open

businesses it dealer comes our and line. sits in turning out are work And the best the as transportation company time production of inventory the as off while Some it the the it. cases, soon take to some

that this major areas at time. I have concern of no So

And Raymond our [ph] next question the comes line from of Montilla Martin with James.

line is go Your open. Please ahead.

you. This Altobello, [ph] When it's while revenue it over quick A XX%. XX% Obviously, were unit unit comes is Raymond per for year-to-year, over they shipments, to Joe Martin was down for James. Towable sustainable. up question

you in where fiscal price So see do XXXX? trending

you . Can us I about about asking ask you price are a price market? our wholesale from question dealers? of asking the retail clarification? Or to in Are

Retail market? the in price

Yes.

dealers price don't see stable from environment I to XX the significant next retail think you'll inflation see, months, in and candidly, XX stable assuming much a more the increases OEMs. is relatively price

volatility As on we've conditions light I talked, I think mean, more market in But some to you'll their begun categories aggressive the dealers less retail pricing be see the of have in inventory. already on total. of and

these over some many you suggested I last plus increase -- seen, on units. the of in think months, a call know most of this, of the XX% but terms in for XX MSRP you've of an cases,

MSRP. Now sold aren't always the at units

and some you in So now think, that volatility as won't the, to in starting pricing environment, in but and nearly 'XX see of 'XX 'XX. from of see happen retail calendar the you're saw year discounts retail I fiscal the we

X terms the there'll versus X job dealers be hotels. haven't in will and the not as certainty market of they're think RV I airplanes maybe great for bit consumers being So the consumers. a Those economic more a in for that do the see lifestyle some benefits of to prices used little been in who to. of But the selling ROI in the and an on years

you actually, for where color a of giving bit little And also? mind to you expect would my trending price follow-up,

forward-looking any of provide to forecasts pricing. not terms tend in We

to than intended mentioned year. won't especially at lower any the we fiscal I the time, in pricing our pricing earlier, different this last power, of on actions. business But is and forward-looking comments inflation our price, As share because in -- need

of question next James line with from Our Hardiman Citi. the comes

is line go ahead. Your Please open.

to circle commentary. to guidance wanted back RVI So your

retail looking than Sounds shipments, maybe in you of lower and for more line wholesale. like they're terms think but I a in importantly, what bit guess, with little

is, fair And as you way over the wholesale similar about guess help between units for that and year, I Motorized big Towables, see So retail? of question think to levels your my is differences that and maybe business a next well. would if

XXXX Yes. attainable. good It stated for morning industry perspective, possibly RVs, bit this similar in XXXX you units, under shipment we is shipped number think of to is at target we the somewhere an in RV calendar a calendar year. We will do was From to that probably a see what come on calendar I we market. think range. think XXX,XXX units retailed see XXX,XXX-plus XXX,XXX somewhere range but number year could in level, that that, for a little calendar the XXX,XXX you'll a Conversely, the year XXXX, think that in of XXX,XXX macro

of of field is that coming inventory would lot out Now that what a macro be not and insinuate would field. the

think this to mix a out topic. calendar you're think is come or a the market in 'XX. do of I Towable inventory I see balance some going

see inventory up. You'll Motorized of little be a bit built

example, to they businesses probably of open levels inventory both will we have carefully an not side, Marine continue the country markets raise of presence. dealers. are where our where a dealer the dozens around as has On do very Barletta,

in its to so the have company's position penetration, field of a And the momentum inventory of dealer context at sometimes look businesses overall. share, you market

months opportunity go. add think Winnebago Industries than for I competitors. to the So of some next we'll our how some inventory there's more several But see maybe

sense. And think knows figure as to I a I the ask I'm then to, ask might answer don't makes That going I but well that question anyone here.

right, was demand slowdown, maybe retail there this -- and at forward this about play, right? there's of -- issues there's had We there's surge two some think some pull we sort two As COVID there.

or And what's is to the to at debate that. other I an of sort shakeout, slowdown? maybe macro sort the I time rightsizing think there all which tease about frame industry where issues with side be, retail itself are of Are play. at of whether think, was would right, of one-year as so there pressures sort in question would or what XXXX all consistent we're you are some I declines what I out think XXXX, fact, reason this macro is a versus as we've at consistent there be it looking maybe the to more we're there's And But past more we mounting. come, the if, XXXX not seen able in then guess seeing which asked these

let be Well, clear. me

period. and different overstocking last paranoia for last believe, in but elements unit also RV We a our its and the during some dynamics. which, than will certainly This cyclical industry headwinds one Every slight while, world that is industry own to we XXXX with no tied different. that This XXXX, downturn very will one long. in could operate don't little was hope the a has business is different I they

costs they're they the And three, are might themselves I meaningful a gasoline experiencing. seeing products costs, outdoor looking. inflation spending think now be recreation the on due a interest in in rates. discretionary in costs, that to capabilities on other food the right Number rec pressure pressures rise the service terms is two, higher consumer spending we're of category major we outdoor of seeing

meaningful still customers to the X last period, in interest XX-month a XX X/X -- months rates decent in seen these historically of our Now are take a a but probably XX- rates interest finance step up. in and to spot, that are have products they over

in that the to analyze purchase. will and of they so And ability terms timing

to the to some in starting macroeconomic see we optimism of pressure of are business It's Remember, likely of one will the relieve consumers shifts variables, first feel to more when industries of on any some also the with softness recession. of the if first generally most the some is can those help act to businesses our see So confident. RV a macroeconomic recover. potentially one business

don't crystal line. the a on ball either time have we So

day month-to-month the comes. to we'll and very when healthier how but So positioned week-to-week, managing a we'll be very of it, market with business manage prudent that well we're advantage be take

line the next John question comes our And of from Healy with Northcoast Research.

ahead. line open. Your is go Please

counterintuitive when about is business great. you buy kind this just were this gears to Wanted the which buyback switch Obviously, the quarter. I you of And thinking allocation. bit saw saw degree, of you capital of coming. the move usually lot kind I this on front their in like kind a feel of But what of direction throughout to kind some companies do, active quarter, see a back the extremely business is stock to

on you your do you a things? stock side How bit number? are in in of accelerator And you back we bought boat thoughts what think or the industry the of little hit out little the unit the expect 'XX Do You XX,XXX Or on that framework there the a bit? be when to softening buyback in about pause there? you RV have? Would way the step do your up. about shakes the fiscal for is M&A the low either same business as

follow-up, We And some allocation demand course, Even were here. that the certainly product. acquired this capacity We given we organically capital that on changed if year, to has haven't We Barletta. in that significantly stuck with John, will address invested our expansions strategy. of past him. Bryan. the strategy. really pretty Mike leave I our to any I'll, initially necessary is this

maintained And so to to ABL. million we with allocated strategic capital liquidity shareholders. And $XXX growth. we actually that We liquidity return expanded We nicely. our that cash our then very

question, notable then a in so XX% increase your use of highlighted shareholders. increase, to and in repurchase very top was year. share the dividend as cash And the increase was evident of you that back prior our that And in to XX% certainly intentional very a on get much our

manage don't for our be to believe opportunities, continue which that I see still sheet look we So changing strategic very forward. We'll plentiful. growth We'll the to going thoughtfully. balance

announced August, certainly that will share to approved. to authorization cash noted, in We, shareholders. return our as repurchase Board We $XXX million a look you

we'll represent don't going year. see feel a repurchase But much shares as us. value. felt stuck we forward. our continue this changing. and to We prudent. is good so will that I still very allocation, narrative it so great on capital changed opportunity continue into for hasn't to and past to tap we And We're It deem Share that do our

enters in That magnitude And will go when allocation to going into the our really the so the repurchases. to stated. be we priorities as as do market and that we But I will calculus share view what we consider forward remain to continue case. that

question comes Brandon Davidson. next the with Rollé D.A. line of from our And

open. go ahead. Your Please line is

shouldn't Towable expecting on to a from the saying see Just see half before sequential more first Are in you decline and out follow-up Or a XXXX? you of are year we half a stabilization margins. fiscal here? second settling the little that

guess to normalize. that I Brandon. expect prior our little I'd answers Thanks, in Yes. of to point history. a bit we We've margins referenced

that the XX.X% in the program here in house margins open affected in QX. part of in discounting QX. for We've realized mentioned here period the that previous margins back some of that that in forward or have XX%, business look pulled fall some you at margins the QX in we Towables If EBITDA been they prior we've specifically, range our

dealing volatile costs. pressures, view Mike a here on had to lot are forward coming the relates cost to those We X and still impact as And XX%, line and that, a portfolio has in that the lot best of we're in very the which have deliver a to of the view environment we some those any of for it's even the here we one that calendar year strength our of XX%, it to year think pricing range margin And our we're trying hey, It's today. of EBITDA here Towables margins factors, look, volatility, and weigh QX, trying confidence the near-term convey XX% on commodity XX% long term. we're XXXX the cost over the down our input necessarily and years in the don't and of we've that differently sitting cited our in XX.X% our product with So what's where of business going in the I previously terms is, in range. decisions. as method ended XX%, quarter. inflationary

always and what that's we're but how portfolio. for not within decisions So clearly, the the long that think we're our decisions. best not believe make very we quarter, managing on we to We is quarter doing manage the and have the best a our quarters. certainly We term for eyes make

still delivering that in years fiscal that for all year. I the the margins the helping additional in color period very while hopefully, in margins healthy So Towables just full of segment guess, past fall you we've in had recall the

follow-up. line year one And industry? points of with you'll able kind implies quick you just your kind market next you see trending versus of Great. XX, the of retail shaking guidance? outpace by in On your brand down XX%. for do like XX or to be that Kind where Do your out guidance the is percentage brand feel

that answer would this standard I is Mike. with is here. this standard the the Brandon, phrase:

but We taking portfolio. in they're the acquired last in And have outdoor share the in to we them And share Winnebago at expect our grown of brands well over the and do expectations each our X competitive categories. of is been consistently to to after RV organically business then X We're as continue Industries that. X to years we've aware -- take for brands landscape. respective the their

so And more. years, some be that will

end Some trending we years, through in and of call, stable at the standpoint. been relatively from of quarter the percentage first first saw has can usually fact, I the a is you, each do retail will be that year-to-year. healthier expectation the little QX I a less, this tell similar but versus is and, part what comp

results, seeing July, our is And so as months. in of side as not in a decline the RV retail on the we're August specifically, comp percentage it latest that some was steep

a estimate comparatives little in But getting the industry this units that's bit a healthy as easier. of our factor industry -- post a and this a calendar amount so XXXX, retails bit XXX,XXX environment. in especially consumer little of a retail of that's if the is COVID which current of And historically this date, space year

can get. So we'll we compete everything for

question a with question next is Thomas-Martin follow-up BMO. Tristan our And from

answered. ask I thought I been hopped out. to Everything have I going was

any questions Thank showing you. for the to Posadas And this over further to conference hand no would I'm further like remarks. back at time. I And Ray

Thank call. joining you, everyone, for today's

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

great disconnect. now may Everyone, You day. a have