Winnebago Industries (WGO)

Steven Stuber Director, IR & Financial Planning and Analysis
Michael Happe CEO, President & Director
Bryan Hughes CFO, SVP, Finance, IT & Strategic Planning
Craig Kennison Robert W. Baird & Co.
Scott Stember CL King & Associates
Michael Swartz Truist Securities
Frederick Wightman Wolfe Research
James Hardiman Wedbush Securities
Ethan Huntley Jefferies
Brandon Rolle Northcoast Research Partners
Joseph Altobello Raymond James & Associates
Gerrick Johnson BMO Capital Markets
Call transcript
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Good day, and thank you for standing by. Welcome to the Winnebago Industries Fourth Quarter and Fiscal Year 2021 Earnings Conference Call. [Operator Instructions]. Please be advised that today's conference is being recorded. I would now like to hand the conference over to Steve Stuber, Vice President of Investor Relations.

begin. may You

Steven Stuber

call and Vice later us replay on today. Catherine, and of our and everyone. being you posted is were and on this at Thank Year and Happe, website Thank earlier Executive and Chief call on to good Chief discuss joining Officer; the joined with am our today Results. our news morning. issued website broadcast available Hughes, The live Quarter by website call release fiscal for fourth Michael the annual and Earnings President the This Senior will results and you, Bryan be a earnings I morning, our today President investor.wgo.net, quarter to and XXXX Full Officer. Fourth Financial supplement

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

Michael Happe

our turning and and to for some results your trends comments to drove offer closing fiscal questions. morning discussion financial who it joining quarter deeply discuss in again thoughts your that Industries will results. appreciate year with before XXXX and turn the Thanks, before of performance the detail. Winnebago more I'll Steve. to everyone, this you discuss fourth begin We, today. interest Good Bryan Hughes, morning, our always, as a Then over the annual thank quarter time our us and I'll and in for the we taking

to a for quarter premium propelled quarter of grew XXXX organic ending during Our fourth X.X ex-Newmar percentage Winnebago a expanding share demand fiscal period record the by XX.X% fourth on Industries year-over-year characterized the remained fiscal X-month by XXXX Winnebago driving XX.X% and Industries a gaining compared outdoor sustained trend Industries fourth profitability, factors: elevated the accelerated basis share revenues quarter; year, revenue remarkable tailwind powerful key Winnebago a first, X of and an market products. strong finish our a excitement for lifestyle was second, fourth quarter, to in record points August. full

third, and which driven exceptional have the and this and during provide demonstration our deliver recognize partnership and by challenging Importantly, us to service Industries inflation our relentless quality innovation who differentiated and Winnebago a dealers; our with experienced for known enabled excellence, of consumers brand is partners and period in in we the consumers efficiently profitably portfolio. operational are new supply team's both to constraints as endured. And very dealer

our both during Towable in Motorhome As the margins a result, and fourth we quarter. expanded segments

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

dealer Our tirelessly expect. worked high-quality service with have the of products employees X,XXX to provide customers and our addition now drawn the to Barletta, and exceptional have plus partners come

throughout in camping million have XXXX, the X.X another underway outdoors. tracking secular lasting first believe the estimated already and XXXX. have million experiences. as factor first catalyzed and undoubtedly While this are The pandemic great more demand in products, impact And experience we this key XX record has to success. for tremendous for meet powerful households demand households our to time their backlogs pre-COVID-XX the our more and will managing towards a families shift the new dedication we camp been experience high Over for year through accelerated their outdoor has in

especially lifestyle. are the this, engaged as In finer new of options. to wave broader put younger easing millennials, point a in a restrictions generations possible outdoor of the leisure To the saw timers, investing even addition a time vacation return of we more first over on summer, travel set to enthusiasts, pandemic and of income a creating their and

revenue season was and fourth the in our performance fiscal now fiscal Our both in summer third records selling strong, quarter setting quarter. our

of we are backlog record we to continues dealers. orders Our sell-through inventory to provide seeing of and grow rapid

We cohorts in ahead. growth making memories our the in outdoors of are also the diverse the confident foundation decades that the will be

the pontoons. acquisition to our completed with marine Barletta first and boating on on a pontoon extend Building reach beyond the we our our company. Barletta's in Company. Chris-Craft bullish of marine our Boat into in premier the quarter past in of Early become investing boats RVs, investment premium we're XXXX fiscal expand economy meaningfully of fastest-growing broader one lifestyle expand strategy the to segments line our brand, year, our and platform recreation So in outdoor

customers, the offering, ahead, to been we're Industries' to to reporting net and outdoor discuss Winnebago successful that adventures of harnessing proud in very the outdoor become we in Due industry-wide outsized new growth. share community. chosen to part winning Looking has the have the for and excited Winnebago quarters of lifestyle Industries segment demand opportunity strength the we're marine new is of in our delivering come. exciting total our increasingly an overall with

record our while the of XX.X%, RV from As up to share these basis year. market low we've discounting. XXX year-to-date XXXX, Even is points fiscal levels able period now last better, been same gains August maintaining of achieve

demands a in customers includes Our for of products brand are quality, products technology threads differentiated and well and the golden share more gains performance our market our premium upgrade customers value capabilities future. of products full competitive drive a underscores up portfolio, the the share unified market as to in of range enter to now which and capture value to appeal as options unique ensures chain. consumer in of the as as innovation we they ability our broad and new move and by Continuing meet into the to brands and on service our invest positioned

key world-class Finally, a growth fourth disruptions the to the share did can with commonplace have despite the fiscal posed across enterprise-wide inflationary to efforts in and supply and excellence quickly the record we component as of into ongoing and our enterprise-wide kept margins market operational adapted operations annual demand quarter off performance teams, efficiency, by financial operational consolidated chain. with seen One is of team who including pressures. XX.X%. chain the the our challenges commitment supply shortages masterful translating of success sourcing gross an job be element clearly operational our and These become supply disruptions that pandemic, gains year

and flexible using to our strategic and assembly material sourcing remained keep Our strategies moving. lines solutions team has creative

importantly, our in We along as dealer meeting And will supply continue as they customers. provide and to of persist. with results our acknowledge essential monitor long partners our role updates chain the that the needs we issues play supplier and

as our on dedicated continuing work our in supply dealer has and improve allowed we network to communication focus with replenishing are partner our disruptions and And Our us chain we across quickly anticipate possible. availability. relationships strengthen to plan component inventories deepen to as as their better for

performance of incredibly XXXX year. quarter our are fourth the the our fiscal team and and proud We in entire for

employees demand were value our strategy. creation I our that Officer, our a to on the call revenues acute XXXX our growing summary, products. unique supply growing The to and review to With well we premium now I thank year fiscal our for who the fourth achieve Financial demonstrate managed through execute proven Chief quarter outdoor demonstrate appeal and want are over Hughes, team. our we to will results lifestyle tremendous all backlog able Bryan? Bryan as full well heights strength of Our new as more financials and detail. chain executing and our in that in on profitability to opening platform world-class successfully challenge turn

Bryan Hughes

Mike, I'll our website going presentation impacting at supplemental cited and annual to everyone. found announcements conference recent several this on Relations be information allocation earnings investor.wgo.net. can refer our and Thanks, our press for fourth This good and quarter capital touch information highlights, and items release call. on Please forward. reporting Investor in morning,

year year. year. Fourth our increase including lower pricing, same was was fiscal XXXX. up finish share per $X.XX, billion, due to resulted quarter a fiscal the quarter record an Fourth margins in revenues record adjusted fourth outstanding $X.XX, gross leverage, XX% revenues per same quarter basis was were XX% up profitability to strong mentioned diluted the XXXX a earnings period quarter already Fourth of As $X levels points earlier, Fourth per a and to record of quarter. versus discounts quarter and earnings earnings to Mike a fourth XX.X% and consolidated fiscal an last compared margin an initiatives. compared last share. first the increase the of profit record period strong same versus XX% of was Fourth diluted share quarter last allowances period record XXX

gross fiscal to also including adjusted last and earnings increase product, XX% revenues $X.XX, the consumer an $X.X levels a revenues throughout same compared due of mix. as fiscal points offset diluted profitability Consolidated annual with XXXX Winnebago Full continued of Revenues strong initiatives, high year a per increase market Now increased to leverage, were coupled Annual profit for XXXX. year demand RV of compared per were XXX% cost basis to XXXX impacted discounts record fixed earnings $X.XX which profitability. lower XXXX, with cost earnings robust hit from to share diluted increased line by XX.X%, results. healthy of allowances well to also in primarily an margins XXX fiscal In the and improved billion favorable positively levels gains. record record period a turning quarter, input in taken XXX% to Industries discounts per approximately drove year, Annual full as $X.X fiscal segment allowances. the share record pricing impacted implemented record the strong $X.XX, inflationary billion fourth diluted was of and of positively adjusted margin share lower share by year. and of pricing,

Now approximately wheel. offset implemented year-over-year, pressures. EBITDA up quarter points inflationary Towable last and by in basis for fourth favoring year, the million, $XXX strong-end increased a segment higher by shift operating revenues. which quarter consumer driven was primarily the leverage, Segment fiscal period the same XX.X% primarily demand turning to input million, XX% for margin to EBITDA from cost was the XXXX, was fifth fourth versus million XX quarter which individual revenues compared by XX% segments. of the mix trailers driven travel offset to Fourth in adjusted pricing, $XXX adjusted up approximately were driven by $XX.X primarily

were adjusted segment year basis input high XXXX. EBITDA EBITDA XX.X% products fiscal full up Towable cost For the XXXX, the fiscal increased million, the full demand record our to up for Segment for full fiscal year $X was over fiscal from was $XXX XXXX, implemented XX% billion, which inflationary from pricing, margin year by the a driven pressures. for XXX of Segment revenues XX% for offset XXXX. adjusted towable points and

points Now approximately which was quarter, and Segment and basis up EBITDA profitability and over margin million, let's was points driven the offset B the revenues the year turn to driven of pricing, $XXX.X year, sequentially, for $XX.X leverage by fourth In Motorhome cost initiatives. A to the adjusted Class approximately Motorhome Class demand, XX.X%, basis strong an increase particularly EBITDA fixed And prior adjusted prior XXX our XX% from end segment. prior in consumer the million, from was by year. XXX implemented up XXX% segment and inflation. were

$X.X million, from sales XXX% the XXX XXXX from were fiscal XXXX, segment margin was fiscal for to adjusted the fiscal basis Segment XX%, increased $XXX.X was For points year compared and fiscal year pricing. adjusted the to full EBITDA approximately year XXXX. EBITDA revenues unit billion, Segment full full XX% XXXX. Motorhome up due up for over up

sheet. balance to Turning the

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

our in continued to below returns strategic financial Our X.Xx for current is X.Xx, to sheet investment our health and range balance providing net to debt strength of X.Xx, adjusted EBITDA imperatives our enable ratio and shareholders. flexibility targeted

maintain to continue liquidity position. very a We healthy

in fiscal million $XXX.X of balance cash our Our funding the we million not drawn million $XXX.X early necessary This have for to increased end closed at XXXX, XXXX. provided of Barletta liquidity which the fiscal ABL. the approximately on acquisition, and $XXX

million $XX repurchases shareholders Winnebago of Combining $XX of approximately share dividends shares fourth total with approximately in returned Industries million worth We the bought million occurring with throughout $XX a for paid, fiscal to was also due fiscal XXXX, back fiscal the quarter. year the in relatively while tax The the income XX.X% on significantly. full year business effective income XXXX for in consistent rate XXXX. pre-tax also credits tax growing to year-over-year compared XX.X% higher to

Looking XX.X%, law. any ahead we not tax items in XXXX, to change the in to expect XX.X% to the discrete rate of or range fiscal our tax considering unforeseen be

balance Our never financial capital ahead, to looking With in priorities. sheet strong. and want have that allocation and so health our been comment I on mind

meet expect. continue will advance and in and invest we to we focused growth robust our continue business First, on priorities to to our strategic the demand

Industries and markets. the for Chris-Craft now in Design, areas of Newmar, our production capabilities. square of innovation, optimizing add our planning add meaningful investments manufacturing continued and coming the and they improvement new including output our end vitality Barletta, to product and confidence as assembly will Winnebago, and footage look footprint will in continually are as the signal year. facilities, our We production redesign across improvements These future We support executing well capacity, operational Winnebago Grand of flow, and

to of Our of to deal can effective Barletta liquidity XXXX in low, ratio fiscal strong early August September keeps On was the This Board XX, of record out we as arise. continue structure XXXX, position also company's funded our completed they leverage align quarterly XX, integration so close our issued opportunities September approved but share, M&A all shares newly acquisition cash per included Issuing also of and success. $X.XX our pursue a primarily and successful common XXXX. future of of shares. dividend Directors payable serves cash XX, parties business to a on collective on driving XXXX, at on stockholders the

share business performance our and a to increase declaration financial previous while shareholders. dividend the our also or delivering quarter's from represents per XX% demonstrates This $X.XX further quarter in future confidence returns

we approximately on mentioned previously, returned buyback approximately repurchases future, through October quarter. enable during $XX million in approved further we share share activity in occurring program up another $XX our new our continue authorizes repurchase with in of XX repurchase be $XXX our in This should signal return to have confidence as utilize share repurchase our us a the year. to to As Board to million interpreted we future, future. million shares shareholders. shareholders a the the and fourth to to To the that that as mechanism will our cash program

Before reporting X I XXXX. conclude year I to raise change our of my remarks, the items that with will beginning quarter fiscal want our first

for the Industries' Marine The acquisition specifically Chris-Craft. XXXX, materially new report is the units, previously fiscal XXX% we platform. will be as and to forward, Barletta scale share Company and results, adjusted marine we of Beginning inventories; revenues, that, include of made next Chris-Craft will as Barletta reporting per amortization segments, our same QX Winnebago Comparisons and comprised the quarter, within our EBITDA, will which our earnings XXXX, of key of first announced, do segment increases field fiscal public with going backlog we Boat adjusting the will second, segment, include be RV for of only Marine intangible our reporting will diluted metric. adjusted a data segment, points

the to this supplement a operations share earnings for results that change the impact showing both dedicated impact breakdown estimated of ensure and also available page step per this We this fiscal 'XX to taking The reflects fiscal release earnings to acquisitions; share in 'XX, per of to previous and share the the topic, also impact best fiscal a that the adjusted tax earnings core acquisition are amortization arrive items between to has the XX.X%. our 'XX business. the will earnings is to adjusted at our including third, adjusting impact be currently rate Barletta and as earnings per reported

XX.X% going position and industries Winnebago businesses. and strong prior these very the and effective not that people the reflects We have of forward, our and rate. contributions portfolio historically results the be federal we great to reflect change in restate will years. comprise XXXX compete also utilized in fiscal the businesses conclude, we annual To the statutory This will QX Industries

extremely we review some proud future. Mike? my year are back closing concludes That turn results, strong have provide of expectations now these of I quarterly We to our and to full and that. with Mike comments. call for our financials will the

Michael Happe

Bryan. very much, Thanks

XXXX, as together talented said, we're team. proud we of and on the we strides As made our reflect financial, Bryan strategic with have cultural

continued our growth, financial communities our share addition to deep to Winnebago also delivering market and our In to Industries shareholders. and strong responsibility results corporate commitment

part commitment Winnebago Jill of Inclusion, across and leading have enhancing the first several to of ESG DEI of company strategy family and execution we of responsible towards Bostik. As organization. In our our leadership and and our advancing welcomed road efforts rest the Industries with overall August, the Industries' of all programs our strides we stakeholders, Littlejohn partnership our important and made Winnebago initiatives Jill Diversity, Equity for is Head in map. DEI

disasters. example an launched a others lifting Together employees year-round facing to up, As and Go fund of aid natural personal we

teammates. United adventures It of vigorous Following the pursuit business business outdoor connected an example, a leaders. protectors environment. At ambition by be of and our Industries, mobilizing our able support which for seek relief closely sustainability Haiti are backed natural our so, Winnebago recovery to joining earthquake to is of of our enthusiasts, with in doing degrees beautiful X.X Nations in resources to we commitment recently the our of is our as Celsius, committed work coalition and and of spaces reducing strengthened spirit many essential valued to global for the outdoor Chris-Craft we In the recently to the generation the mission experience employees our to are planet offer. has that footprint next customers to

are this net help of we to climate by greenhouse impact change program, committing by XXXX. gas emissions of to part As zero achieve limit setting a the goal

sustainability. and net achieving We also which important strategy. announced develop external with plan goal, waste look additional and initiative our product We an validators focus to represents of target to this an goals water, enactive responsibility for on forward science-based working corporate zero the

the our partnerships. move coming into continue to we responsibility us in corporate you As expect and can to investments year, prioritize

unprecedented The industry future. the fiscal to outlook with and Turning in us very bright for a XXXX. has bullish provided products outlook interest our

partners market of outdoor will metric threads and remained to is our are high-quality Chris-Craft Winnebago due RV long-term Campground we to are websites, robust the gains camping quality, on premium 'XX ahead. to and the addition steady years In leveraging products The and continue dealers and us segment strong. that traffic golden Industries' brands Consumer families and more interest Collectively, the of consumers. the the excited reservations households existing that provide. in the drive to as strength fastest-growing portfolio for interest just marine frequently. Website the remains brand X lifestyles ever of outdoors and and fiscal see RV industries adds more share in bringing boating. fastest-growing strong pontoons. RV as during and and our camping exemplify in dealers service dealer of the Barletta's category brand to quality add brands, to more marine the our in end value Barletta, innovation our brands, to access quality and our of

those of for XXXX As experienced during period. I over RV. camping time And the first families mentioned households million resulted buying since XXXX -- first many will experiences those in earlier, and have XX their have the

we as already who lifestyle take from right we're they a material our which experienced who seen across households experiences want the conversations been cost customers And higher users outdoors the these lifetimes. particularly their XXXX of are the future at translate trade as the continue record-level of came late will on component is at accelerated kids their a Yes, out all weekly visibility upgrade. the favors up, supply see a term, sourcing have are From historically of indicate and number broad There to and to excited consumers we effective limited well the into further those our boating proven work a manage those deploying of RV As bode broader all outdoor meaningfully. accretion dealers market upgrade revenues pace new outdoors to seeing trading strategies. perspective, cycle what when Long basis. the for XXXX trends hard the and continue industry. place. brands new in dealers from brands stock teams into we outperform our now believe RV to not challenges, about dealer in But a of margin premium experience continue continue unusual. we also experiences, dissipate number trend out some and from lifestyle, are or Despite we the deliver and customers increases when and new XXXX will love tend that of those and throughout suppliers, to as deliveries to production though, is to very identify our

initiatives. the cost internal inflation the savings over of our mitigate cost year, thoughtfully cost have witnessed levels that increases past to working Given with are these we we input

protects from our increases also while ensuring pass we pressures price products seeing exceptional plus. of combination of mid-single has percentage been varies the higher OEM still also pricing high no pricing increase serve result viewed to our to cost Accordingly, levels than to price pace a improved one retail it consumers necessary years inflationary RVs to strategy boats share our in a X margins digits market brands due growth. we Each prices, are marketplace. the a and is us a for increases alone. as price double-digit across our offset the outdoor higher demand. are Retail year-over-year of ago. that for pricing consumer our dealer to of is sustaining of currently OEM are and are of value respective of number blending not are price brands as market price There However, pricing up level and to Despite having the seeing business. approach profitable portfolio price to that is go The XX%

open year. questions, for the touch industry to to upcoming for Before call want quickly we on RV the I expectations the

the aligned RVIA We of -- calls with XXXX, recent a calendar recently to of growth basis XXX,XXX units. units. year released for for On fiscal forecast shipments to XXXX RVIA's wholesale are translates compared a XXX,XXX versus year X% for RVIA forecast Winnebago year which the growth XXX,XXX XXXX wholesale or the Industries, number industry X% forecast of shipments XXX,XXX or XXXX fiscal calendar

RV for sales a retail, consumer approximately units, that and were I times be As industry and XXX,XXX Bryan fiscal in we morning to healthy. record mentioned place likely number several months. adjusted our the coming expect demand adjustments in upwards will as SSI remain year for have the this retail XXXX take

be will Looking retail sales XXXX industry ahead, expect fiscal RV that strong. we

expect highest we of will fiscal industry still our sales short the XXXX see likely sales notch fiscal industry that XXXX record fall second for fully that retail the period. results, record on level they of in will While retail we period, retail

fiscal continue it replenished adequately by industry inventories RV field of Given our will suggesting year fiscal phase XXXX, highly that unlikely end will the into our that that restocking be outlook, XXXX. the is

of to as our normal That session. will pricing we all, and concludes history the for end to general brands. and not this on dealers prepared and the occurs In with our in in turns. work future. we on ease we with remarks more line inventory As see line of dissipates the may some now Thank we've implying expect that lots, believe We Q&A future, inventory competitively dealers, time, as levels historic but markets turn higher lower normalize, mentioned customers of for levels in could past that are in your also that back I'll some normalization advantaged and their the scenario operator to you morning. over that the return brands OEM quantity approach would the or dealers the as rationalize will inflation that we profitability, sometime


Instructions]. [Operator

Kennison Our first Craig Baird. from question comes with

Craig Kennison

the thanks end towards for for commentary the the And industry. your outlook Mike, on there

buyers earlier stay. rate would mentioned historical the How that had all not first-time that to whom of choose compare maybe You some the were of you and lifestyle. coming to rate first-time were buyers, exiting back

Michael Happe

for first all, Well, Craig, and of thanks question. your

a end our bit or that on too is morning. dealers little broadly hearing and rate are last the here that upgrades week listeners it's I into we And thoroughly caution retail we think of lifestyle early differ to call lifestyle. new Craig, meaning from quantify what dealers a a that consumer question, of do versus yet positive you that new this our believe how looks the the to remains new asking that and trend investors new into can't exits this either want probably because further the net you is on canvassed I What to of upgrades retail see well. going like from that might period. the believe is that it Conversely, What new XX of I consumer months, see exit. or consumers number consumer the sales future, past record consumers will in higher models more at quantitatively with in the inevitable upgrade some demand the a many number new In we'll record mix so, also future the as tell likely pre-COVID that asked point. unit new a consumer exits gross we'll number of we

Craig Kennison

of and forecast point, increase level we at the are afford where an say a can't some that concerned had the that's just How due mentioned then RV to price you you on are and in your I a And follow-up consumers embedded reach that great. too to That's inflationary prove much retail high. -- costs. pressure maybe as that the to extent expectations too therefore, what some RVIA

Michael Happe

between question by that that is would a and pricing to within and answer think Certainly, as is well, connection that I many a difficult our to regularly valid tell. Craig, again, we there the that And general get time. over asked we is prescribe demand stakeholders business.

an mix However, outdoors, in on X, greater in interest recent households camped is for of campers Hispanic to into In available settle A some Hispanic our of those than low Latino good development bit, cost X in shift good if to where give camping. pricing see have with total There example dissipate to ago, double a outdoor normalize, of our and and the has It seeing the And retail of the higher likely by based see pressures XXXX, in consumers a the we're you implement is creating coming what is believe impact is will demand inflation a price the and in X.X of outdoors. XXXX. how the on as terms market was in of time, in pre-COVID. pricing as reason XXXX. to to in products is is and of the market. to is, at retail market businesses. from cost. XXXX, X% I'll components. example. a relative grown X tell over looking settle that dealers limited of increased participation generational the a that us That digits one combination or in XXXX. you it a than pricing sustainability begin to we mix the or campers, like will would years consumers tariffs Xx of difficult some the we if years will understand million mix Latino part on And difficult from next dissipates the supplies discussions and albeit But it consumers over ahead been rollbacks currently most the some introduced that of for X example, in administration of negotiate be Conversely, reducing look

And so increased the the to can't will be what is we what tell on impact ability for have pricing the in held of demand future.

question. will significant optimistic in difficult that see with So a to answer prices, any whiplash it's backwards your but I'm we not certainty

the the market. high For in the are levels retail prices still being, at being digested of time


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

Gerrick Johnson

that bottleneck is also how your you that affecting we've right chassis affected Can shortages biggest And what's you how currently, the about chip now? or the talk availability of had had, you?

Michael Happe

on the take the That unfortunately. week, second the Gerrick, I'll first. day of question Well, depends

to We continue variety across a chain issues of availability see categories. supply

to better I I than processes This XX be issues. teams better would shortage been no now. production the managing dealing and on from I versed We're the now strategies or our -- as the it's and a X And out X with X well. but these businesses concerning chain component our with supply to because is I'll in an answer actually ago. challenges with and our in category getting it X answer unfortunately would apologize, along we're what suppliers am with chip different but the X getting say our last any well know be morning working I ever So specifically agile, different creative want be with was single of production we issue motorized ago, chassis that months. today we've don't part than across material perfect, better. navigating or weeks months it weeks the What be different is if pleased more dramatically but say also no solutions will to I particular won't this category a are

relationships motorized We have very with chassis our strong suppliers.

needs. in in been chassis to contact about forecasts suppliers those are And RV teams conversely, the the and chassis have industry. daily them Our about pretty of allocation with future their transparent respective constant, customers our

our schedule able with of we fair chassis And share for motorized future. have that share be and to that we to And in both we our forge the and the our commitment. order market with forecast production will relevant Winnebago motorized and lineup in in can brands, Newmar mutual compete around continue really so we're competitive believe to a the


Our next question comes King. from with Scott CL Stember

Scott Stember

Mike, like of well, these or in C. talk more a to bunch has A and could share you've market I how doing But varying. the -- is brands there have got your that that that talk come legacy you how about just segment? of out come about know products they're Motorized out, new and out new the the some we is you bunch stuff have know and come about Obviously, a talk faring like about the are maybe just the EKKO. of

Michael Happe

me Newmar the I'm more touch but question. assuming let probably And to get Thank brand. the of you for brand that the motor is Scott, quick Winnebago homes, before again, just on question to I specific Winnebago

on we due down XXXX, shutting we the pandemic. factories of you of call, the in November As of across Newmar to almost our the company know all acquisition closed on the And were March XXXX. in

most unprecedented said Newmar future a they and as than years COVID-XX. chain have on is the an the production was because more wholesale to businesses. we make the that market, chains of so are of A reasons. months And calls, still actually integration gas, fiscal Class the a in impacted some better chain integration did last period in to XX working The our to year, in Newmar's revise sourcing significantly business the was of number believe really candidly, our first past But and on A Class to a X.X shipment poised in to supply And XX supply Newmar of continuing are or the significant on legacy that's one from year to supply strategies actually we've So versus resilient. due share 'XX the both take consistency Class in fiscal Newmar standpoint. they diesels 'XX in and A we other

on benefit Motorized from will continuing certainly overall start there Newmar the I chain. grow, So our improve and healthy supply A especially share be to Class because

you segment. in of new B can Class side, fighting versus generally competitors. much least we the that last share And has On of onslaught been as we or in years our as to hold all know strength, products ferociously are from X more the an Winnebago our at X the

overly been Journey, EKKO, to beginning Class introduction that's and with the branded some rave the But reviews. of A receiving with recent the of change introduction competitiveness not Class the in product the products, Winnebago is have pleased C specifically the new on category. our Class side the We diesel just A and that category a C Class

should those Winnebago-branded Class backlog and the a we product on that C. in stabilize We in and several new have are order-wise, Class that regrow A the of share market future and introductions believe X the first significant

Scott Stember

Barletta it. how then and about impact first here from question. the just look Got should the And potentially a standpoint, just through quarter. any maybe should last idea as charges to for give of it you seasonality we talk coming in onetime about equation look an the falls Can the into we margins that

Michael Happe

for and Bryan of projected comments over some Well, it turn then on contributions financial as I'll seasonality to comment previously. Barletta's Hughes communicated on we've

We on on in business are very excited 'XX that year. our about being early closed Barletta portfolio. We our fiscal

our when is weeks more ago, is X all team they'll business X But will Bryan, December high both on information the needed you'll other real of the or depressed share. continue meet seasonality of they're seasonality probably for in seasonality energized. the are They business, very your to the a demand remains inventory, probably the financial years, communicate sort in to looks seeing future. this like look businesses of The fiscal like strong, demand. strong. backlogs candidly, in lot rate get of our across retail lot because RVs where now, a a environment, shipments and their high any hyper cycles for take are of thoughts but the wholesale But from sort demand next results, 'XX couple and especially of So significant about because marine, Obviously, effects. their dampen healthy. especially we The in retail shipment of pontoon wholesale demand that growth QX is expectations? the wholesale right line, demand the wholesale and really rising dealers of

Bryan Hughes

the announced. when we're that back Barletta strong We're year building off Expect 'XX. growth as it's $XX.X built. business, year for that sales part there, had our calendar the of our in the million 'XX, of disclosed really certainly deal Scott, team the that from from that calendar EBITDA XXXX. at grow year Barletta And we expecting our fiscal for conference expecting -- trends we call would fiscal It to supplement. amounts the our amortization of Barletta year deal. for the refer million also the in call specific that to calls it's $X.X in the and we're It XX full here QX. to of $XX.X QX, year to earnings it people X, expecting That's off $X.X related XXXX. million Page then on I'd to amortization million falls and And out X amount.

those press expenses. out onetime part We'll our about call of as asked QX You release.

as that call our see of to able EPS out adjusted number. be You'll part very because clearly we

-- high the we time. a like we So in Obviously, we'll see provide at growth. this that what expectation that business really like for and see really to have disclosure we


Mike with comes next Our question Swartz from Truist Securities.

Michael Swartz

maybe, a question, on market gains. share Mike, Just quick

speaking, in to you've Is called acceleration obviously, that what broadly just better seen be that the prior should -- there than an quarters. industry else out versus share? Just operating just today, something thinking maybe maybe think the do we've others based on acceleration is you in it we about? talk is market what Maybe several driving you're

Michael Happe

for thanks question. the Mike,

that degree, industry each to has to seen. based product we to in the all have RV the data, the very the between history about turn dealers yet currently, when so relationships with to from the products, their future and models they ours probably retail where consumers, share market and been numbers puts what future their well, and need have that value where marine that probably no Your similar as a those do, meaning right they at time retail units is to dealer our the hand executing lines be way consumer nurturing sold sharp, on they're sell we call closes. are industry brands, time product they're market feel a down the of We're competitively at in to have aren't business would up that that get on hypothesis into advantaged -- it ability SSI that believe standpoint share teams generally in in there's right deposits working the that retail the within Those some timing And retail yes, together hand market we with the And but the the strengthening it. probably correlation confident and delivery. the showing mutually tight. leads in shipment sold does

worked, we to Class know, Design And dealers the of demand Grand some retail take the so as with the of as on earlier the brands years of the pretty more And products you with our that Winnebago for all at work. that I strengthen areas Class highest A rate notwithstanding but the some mentioned feel healthy Winnebago we've are brands the well. retail organically those we now, can a we both X and we where position, Newmar and we answer recognize if have many very But right deliver fortunate higher C, brand, in advantage with RV opportunities. can to

the think right is I short again, effectiveness now. it is operational So answer

Michael Swartz

are question this. perspective, Okay. through? There's Great. backlog -- pricing. I you strategic And on of a you mean, are I priced around how from be Is then your part second how may consumer. maybe you from maybe a of timing lot come it pricing of in taking to more are pricing the lockstep. And But of before kind pricing? doing on of, increase I standpoint, -- you I that? protecting discussion you a just see just the the second that cost guess just are a about you're topic passing the passing talk a through obviously, then Or mean guess,

Michael Happe


updated in in market and to trade, conversations as the of is price time to So latitude script on is merits brands. broad pretty see kept as those products their it for blend depends. and fit brands informed Bryan cost. to But they autonomy and each question of our And are time the and their strategies. engaged from unfortunately, answer, give price of price to to We your for in it certainly, my a I the comments

the Solis, We of have in products, some many EKKO, have Grand we Design demand in the some really in the high innovative products them line.

share. diesel A that got has taking great products are really Newmar some Class

many more your where you're in your component market, to reality last XX priced pricing up costs time have years commodities at the leadership. cost just company, to we my the the probably in value a the than in with there, and moving innovation or you and can catching at trouble with that's certain the any So times begin we dollars have of thought X that to the more product of costs for almost break months through the terms sign out another yet get rate But just they that level. go the going into slow into go were commodities they'll details, start neutral. in going projections we pricing. standpoint And are and significant of to many won't And to curve have quickly. I to yet times, from but no when dramatically a of there's down to flatten

other your And sources what transparent every those and intend that to we on that are price So us, In roughly in changes at then can do. product. times In question go have at action. There proactive prices would or suppliers are "Hey, chasing. where months, day. you we many they'd historically, projection future up coming vary year. suppliers cases, implement or the time cases, we're us seen how take the are your same X next to to answer see by months we'll to say, we does going have try costs cost and by Never come and the they trust they cases, terms based X in on before up," brand in of we

we by to reacting most protection protect transparent standpoint, against very price but with the backlog. most were been and And haven't yet. degrees that becoming of it to their that. are that what the retail the unit nature businesses true of so price it are don't then cost on all increases when almost brands, be that in as of with a dealers protection know sold we difficult to wholesale built that might we a have an lineups protect is in that dealing deposit has units varies our sometimes unexpected retail varying of There if not well of even able weekly price and From

one think was price cost. a balance try I how strategies dynamic, very to able And good are see -- very, a again, question the we'll we to job teams employing future is And of to, terms implications are it hectic share pricing But to with we the really market earlier. goes price our environment. So we doing demand believe to today. are pricing grow that with as unit-wise, in with market,


Wightman from Research. Fred Our next with question Wolfe comes

Frederick Wightman

seeing on data to sense much I impacts past or you has that? Is consumer maybe inventory? for just driven few that coming just the versus supply due some hoping just level? is was X-year trend of of delta the down. some what could at the for like How that Any looks you're that SSI comment It months. been

Michael Happe


-- present. month, two With it's function we right? a the I closer pulled think of it's one, years every timing, ago, to

it thing generally on So we look well. overperforming at seeing only has The do to to time can this comment trend I I I XXXX our retail But tend been is these the Fred, that are results retail industry. to from calls. But as pattern year time and on, our as fiscal date.

X still increase first sold a So ago. we weeks, in our X healthy versus years double-digit are very -- retail units in running

demand the of of comps. those of will see record X-year start the So we're sort COVID comps to be to XXXX number that difficult going And to naturally will period start against beginning in some XXXX XXXX, of in XXXX of start comparison. retail of the May going very X-year see terms be point X-year to because lower turn into to -- in you're May because at well, a over time sort

direction some pricing. slight as a with So inventories, sort field COVID in accelerated of I continued just slope retail impact maybe little think moderated glide low to a has general bit we're demand on higher that

comps difficult. or see more those of year-over-year become starting You're to versus some X years

our times the demand, dealer demand unprecedented in retail So subsequent the said in one are of script, in as backlogs. in inventory, most and we wholesale outdoor both industries terms of we

very are is like, emphasize in that that peril levels those and demand the with be what X and will especially year take two both continue a to now. XX concern that that, will outdoor also We interpret of The with approach less record will the outlook, fine data. or whether a the well that And barometers looks half-full that outdoor boating this or that my into tend from overexaggerate years industry shorter-term some market or these degree and they believe challenging or industries comes future. comp our at we the seeing for overly of glass to engagement. healthy. so to RV from period is sustain And negativity itself look bodes to healthy industry We're of next

Frederick Wightman

follow-up. talking just then you're about Mike, when quick written for those business X retail, And Great. actually that double-digit increases or delivered units? is

Michael Happe

actual That's retail registrations.

December. in full calls, X-year share of some our guys for often see our tease we'll these But you on first again, current with numbers continuing as performance. comp results We're So do strong to business. quarter I on business I


Our with Wedbush next Hardiman question Securities. comes from James

James Hardiman

staying better, But of getting very couple have that lot of A I my worse, same? getting that brief I chain questions roughly a can follow-ups. but are of you say the have I a asked, appreciate been firstly, the guess, did supply issues there's lot would nuance.

Michael Happe

based Well, I morning, XXXX. increase that year getting period. increase the would to on fiscal we've reason a in say they're X% a better following shipments this call industry in XXXX projected for shipment X% calendar fiscal the our from And

roughly can mean this everything And I've times. said of So RV getting better. their levels materials will to And you're to be on employees record taking industries year, probably suppliers they're year the that talking over costs. units in during these care of units they're we've that great. they the And a output. if I our XXX,XXX and do X our that, number XX,XXX seen months. month. average, month And XX,XXX procure you manage believe when we producing mean COVID -- And past before, continue. XX,XXX a doing on math hard. side, this working the at units a on They're calendar are are I They're a

probably periods you're unit that to XX,XXX believe some next see the going more or XX shipment holiday XX say going wholesale to in forward. in of months we consistently production months the So

the gymnastics interesting. so improving mean doesn't it's answer any -- that net that are would less daily the So is I say

to manage think right the or out-of-stocks routine we're deliveries. I continue headed direction. But We late collectively,

James Hardiman

the about the all And to is X% near not expect about term? reason that's to that, best to point should think shipment going I increase. way mean to Or come of X% to growth in some clarify no it? year. that in the just that amount late believe There's we that the

Michael Happe

very you we are tell running at based our on that production today as I can levels only levels our strong plants speak.

that you to come. But Can on And the are it certainly the can if that in all get competitors will industry, of the inventory will shipment even in maybe there's side well We especially. the XXXX. of later the next more month I so. numbers field imagine same anticipating the upside we half supply so get of number I'm to in hope because better And the the as RV some XXX,XXX-plus in that status, healthy consistent. and marine see. achieving our chain unit would And months see

I now. number for think over. over/under good for a industry, that's -- the of sort period on our a to all XXX place XXX,XXX is unit And fiscal the an for bet we're an rooting as think number I or

James Hardiman

work million. was new the contextualize How me, that really up step big That's you pretty your in through really other we that authorization wins slow then an how is or steady might you that if know race? here, interest buyback to you your your maybe that. and think should share right getting quickly want with it indication through that's in was But or quarter quickly think a stock through sort some And the of I for I $XX of reasons. there fourth getting sort don't a cheap Obviously, helpful. lastly $XXX you're think opportunistic million.

Bryan Hughes

This us. available mechanism It's James. have is that want a to we Bryan, to

comments, grow my is organically inorganically. to to the priority our As I in said continue and business

healthy and So leverage maintain And in to the to $XXX us. and want million the we priorities mechanism did a exhaust which about repurchase time to executed then we give in right obviously to talked ratio expect we shareholders. obviously share a That's cash because out. it's dividend in it's priority X. increase that's subject we we've And XX% we laid obviously liquidity our priority to that that the want for the We the great And QX our range. other period We here. X. with don't return

we the and to -- to priorities like so, other do have available that it's we in a of it use light sense to And so mechanism that it have. but certainly us, we makes will as


Jefferies. question with next from Our Jordan comes Bret

Ethan Huntley

Ethan Huntley This for is on Bret.

to hear want dollar regarding backlog. Could any terms just of Just units provide you down slightly increased. like backlog? within the Towables but sort mix ever that on It color a the seems came sequentially, on sort so of

Michael Happe

we RV backwards anything for slots The healthy. of that do backlog know us on and don't taken constant numbers predominantly dealers I significance for as business be some of have the is has very most were mean on gaining share us been roughly have the on has orders the that I some morning them. Towables viewed actually because not been with models here segment that will if from you of internally on of the in segment have that the this for I the that. I'd part past transparent call even years. the production consumers all several in

so we to we integrity have number if not backlogs against actually our And standpoint slots orders. those decided, did an future from the on reduce production backlog in

a we zero to cannot could from now, teams we future, we schedules. -- had retail We And that products significant months backlog our not on a by And the production from essentially just those orders with find XX now. X order open is several X capacity schedule in months orders for. a production from dealer has yet our months us, name now, Everything when even are are received it. or in making name working

And we been backlogs. all took unbeknownst the thing strong. Towables standpoint. because know -- there's fourth predominantly remain quarter so I felt the we backlogs right we They're do a out integrity questions that Grand the the you for of integrity of to lots those But about to an actually guys, Design. we that from of backlogs reported of from the was

Towables for had a XXXX strong plans year, XXXX its really very well. Our as branded Winnebago fiscal and robust are

I a So relatively their mix is little Towable growing backlog probably read of it mix the bit. as as said. a being percentage, the into flat, wouldn't Winnebago But segment you too much

Ethan Huntley

And maybe front any lastly, update be on you RV helpful. Can the of just of sort seen sort of would the Or that some general similar any of That's helpful. on business? marine just then challenges Okay. you Are here. maybe give on what's commentary as segment chain? the in supply seeing sort

Michael Happe

at of -- different. certain with of components to We while have switches, systems, is as or harness electrical on there on business, bigger products. you into always comment chain. Yes, components. challenge marine have both to more chain. as to it now windshields an of and generally, the last we're though, a use challenges you with and our there. example, visibility some Saying see times, business, have that resins health made types in imagine, months, But Chris-Craft well at And certain of types of we Barletta supply of with not But that times, other the glasses the a been for similarities products, reflection marine in we loom position at bit supply plastic the are our the better market and very the the times businesses continues little purchase, an you're X.X we welcome. some of are for of the Barletta furniture, as of struggle marine with categories of challenging are have fold accurate And that types also different probably -- maybe we be can key whole before to wire use Chris-Craft we that, the operating have, proud our a always both probably companies clarify it's

my week with earlier chain answer as time both in that really see similarities. for to similar it tight and for of that's week what comes the you the So marine a and on RV probably an -- some mind standpoint, marine. And from to some here. is one depends but the is the to again, furniture challenge been And has as that supply question,


Our from next with comes Northcoast Rolle Research. question Brandon

Brandon Rolle

X brief follow-up have I question.

On looks you with the you if XXXX to thoughts guidance? like September, the retail up about if last earnings year? calendar able not, had of be talked mid-teens. or it's low so, Are update comfortable And up XX%. it call, still the on to year-to-date, calendar would month you being your that And for

Michael Happe

probably front that I'm document have of going I question. for different a to to that have in reference don't me

Steve that. think latest back a on to our we'll Brand, you I So thoughts Stuber will with follow-up. you back on get maybe get to

year, period. on updated been of XXXX do an very that But based now. you which modeling me is underway right I opinion in fiscal tell, As that yes, our can we have we've that number of just focused internally. sort don't on have on our front in


question from a Joe have We with Altobello Raymond James.

Joseph Altobello

terms a pricing earlier Just gave margins. want quick of and you I back of an couple go in guess, to to ones. EBITDA answer first, I

XX.X% factors there If on cost that? a you EBITDA any impacted pricing the quarter, unusual the were look perspective timing or that or either one margin, at how sustainable And another? is may way have from that

Michael Happe

in. what of give Bryan profitability Newmar organic over because portfolio will the I Grand you then call that I question segment, initiatives and the our do on the improved dramatically on Barletta. and to brands: likely remind to that thought last and X around that years future. and the so acquisitions mean everybody in weigh some just Winnebago-branded has been of by particularly first changing And ask Well, my of I'll is the our growth X Chris-Craft, Design, now Motorhome want

it on prospects why profitability as pieces as the our be will Industries reasons specific are operational recent ago. future. of respects that on to synergy a our or years. dictated certainly maturation We is have pricing happening been excellence to genuinely believe over the quarters are in of was a function late. cost currently some are the the the some product by we in X advancement and But on future progress continued that last may management, market, transformed obviously, company, there the or what basis, excellence less particularly there pricing and to those of comps profitability operational in some the sustained portfolio profitability time have And the future over influence. addition -- in always of our of a new our many of quarter-to-quarter what's has And that more as portfolio related moves happening Winnebago of today mix Our in such at terms year our in leverage the productivity, things

competing results And what But to satisfied we with awesome. much focused. achieved market, in are strong the are of. very believe so we not Winnebago We're shareholders we very for proud. are and at teams are vigorously we The we've providing We're be Industries. proud

we specifically a employ You with Board on fly saw about XX.X% of have how performing and maybe want we're strategies today. to the on future our future comment beyond, discussions the to -- wall to and we're the higher aspirations contributors recent XXXX with Bryan, our plans Bryan I some you bring will in But than fruition. the that? to we if and those in and And

Bryan Hughes


I on listening you the third the that going above forward, Towables even remind I consistently we'll separately. performance well I EBITDA the contend margins. that segment and and it little bit margins. to in with has I'd strong have Marine to margins, of of the and that Towables segment has longer-term the a performance. we'll Motorized always, Obviously, recently, segment margin in XX XX, impact those think think, had covered like add also and terms it Mike, But more

several right as the tailwinds but back more profitability in many Ireland, or in beneficial. in done has like range X that the we've cloning. Coast dealers things market the that's culmination Northern shut -- undertaken you been Northern things the walked X%, took is shown the now noted, And you scaled the history we've that as that there, long On about. so, within who for talked Itasca margins from back and dramatically away and the EBITDA X%, which of West that our dealer step And there's the and have the as the Motorized us margins. quarters just the double-digit Iowa, side, done, you board several brand, now Certainly, providing as OEMs into initiatives years. years own plant relocation X% territory. those the away that walked market. down It's the it's of from productivity over the for that has profitability we've But has the a across our history we've network and change including performing, last We several recent followed a we've profitability. well cloning alike had to not and recall, may helped longer-term We productivity that things of

those products on know we focused differentiated. have are We that

going quality is to so our And alluded sustain and is really long Mike to belief over on marketplace shifted, and that our being And our to. margin often in service the the that what's to mix talk has here. we that sustainability enhancement as the differentiated term, really our that you're tied our trend Mike -- have the benefits I year said, margins that think expectation marketplace differentiated. is seeing And position longer differentiated the last that that's will over of is couple margins time. our for term of some in of because as in And innovation

Joseph Altobello

largely That's very helpful. It does sound like structural. it's

understand I I saying. in sure squeeze what protection, on price and want one could I to more if make So you're

say, a thought he buying, in buying November. July. buyer, you a travel recourse Does $XX,XXX in let's incremental that it now So was that trailer he when $XX,XXX any have situation? travel delivered He's trailer gets in

Michael Happe

units parties, time to will protected involves So participate protection sales on lot sold product or in consumer retail on retail the have dealer shorter. retail as to has my multiple or price it The brands end the price has OEM ultimate an for out-of-stock terms to the OEM that whether because that lower price will I primarily on retail deposit because because whether the Historically, engage the will our support in OEM not. to answer of careful be depend been of brand. It to been retail the want with dealer on of in a a that That from any is answer of the the customer. our potentially protection. delivery circumstances percentage depend delivery and some time will

through dealer's that It a deposit position to the when especially down. It customer price it's on We the but it tended when of with consistent to deliver potential years. that most even that that support will brands units model. currently time produced dealer. unit have on on decision, change in input brand. maybe will the that our on of is because we Ultimately, the the delivered. have has offered will retail been depend But dealers. It down take and to might those depend evolved That puts that when yet the retail in costs, and it be customer our put on haven't time protect will potential commitments unit gap between the the retail depend deposit depend would

daily dealers of of the current teams from our well our currently. are conversations and are stances our and those conversations outdoor aware So and those are between policies businesses having each

any to to the partners as to ultimately be always is consumer But end don't OEMs, I our dealers want because choice. with we're as to manage try environment. good commitments dynamic very we the So about dealer's retail the that mutually to make price a going try

answer. So, depends again, it


turn back the conference. to concludes our host. the today's call This to over Q&A I'd like of portion

Steven Stuber

day. thank Thank you, our We rest call joining everyone, Enjoy of your really appreciate you, today. and Catherine, do the time. your for


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

disconnect. now may You