Q4 2021 Winnebago Industries Inc Earnings Call

October 20, 2021

Good day, and thank you for standing by and welcome to the Winnebago industries fourth quarter and fiscal year two.

'twenty one earnings conference call.

At this time all participants are in a listen only mode. After the speaker's presentation there'll be a question and answer session to ask a question during the session you'll need to press star one on your telephone.

Please be advised that today's conference is being recorded I would now like to hand, the conference over to Steve Stupid Vice President of.

[music] relations you may begin.

Thank you Catherine and good morning, everyone. Thank you for joining us today to discuss fiscal 2021 fourth quarter and full year earnings results.

I am joined on the call today by Michael Happy President and Chief Executive Officer, and Bryan Hughes.

That's your senior Vice President and Chief Financial Officer.

All is being broadcast live on our website at Investor <unk> got W. G O dot net and a replay of the call will be available on our website later today.

The news release with our fourth quarter and annual results and the earnings supplement.

Issued.

And posted to our website earlier this morning.

Before we start I'd like to remind you that certain statements made during today's conference call regarding Winnebago industries and its operations may be considered forward looking statements under securities laws.

The company cautions you that forward looking statements involve a number of risks.

And are inherently uncertain and a number of factors many of which are beyond the company's control could cause actual results to differ materially from these statements. These factors are identified in our SEC filings, which I encourage you to read.

With that I would now like to turn the call over to our President and CEO Michael.

Mike.

Thanks, Steve.

Good morning, everyone and thank you for joining us again today.

As always we deeply appreciate your interest in Winnebago industries, and taking the time to discuss our fiscal fourth quarter and annual 2021 results.

Yeah.

I'll begin this morning with a discussion of the trends that drove our performance for the quarter and the year before turning it over to Bryan Hughes, who will discuss our financial results in more detail.

Then I'll offer some closing comments and thoughts before we turn to your questions.

Our fourth quarter fiscal.

We'll have 2021 was a strong finish to a remarkable year.

Characterized by record revenue and record profitability.

Propelled by three key factors.

First a sustained elevated excitement for the outdoor lifestyle remains a powerful tailwind driving demand.

Fiscal <unk> industries premium products.

Winnebago industries grew fourth quarter revenues, 44% year over year, and 56, 8% on an organic basis ex newmar compared to our fiscal 'twenty 19 fourth quarter.

Second Winnebago industries.

<unk> trend of expanding market share accelerated in the fourth quarter, gaining a full two one percentage points of share during the three months period ending August.

Importantly, this is driven by both new and experienced consumers, who recognize the differentiated quality and innovation in Winnebago industries brand portfolio.

For winter and the exceptional service, we are known to provide in partnership with our dealers.

And third our team's relentless demonstration of operational excellence, which enabled us to deliver for consumers and our dealer partners efficiently and profitably during a very challenging period as supply.

Frank and inflation have endured.

As a result, we expanded margins in both our motor home and total segments during the fourth quarter.

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

Our employees know 60.

800, plus strong with the addition of our letter have worked tirelessly to provide the high quality products and exceptional service our customers and dealer partners have come to expect.

While managing through record high backlogs to meet the tremendous demand for our products.

Their dedication.

Can strout this year.

Has been the key factor in our success.

The pandemic has undoubtedly catalyze the accelerated powerful demand for outdoor experiences and we believe this secular shift already underway pre COVID-19 will have a lasting impact as.

<unk>, three <unk> and more new families experience the great outdoors.

Over 10 million households camp for the first time in 2020, and we are tracking towards another estimated $4 3 million households to have their first camping experience in 2021.

In addition to first timers, a new wave.

As more engaged enthusiasm, especially millennials younger generations.

Our investing more of their time in income in the outdoor lifestyle.

To put a finer point on this even as we saw the easing of pandemic restrictions over the summer, creating a possible return.

Dave a broader set of vacation and travel leisure options.

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

Our record backlog of orders continues to grow and we are seeing rapid <unk>.

To a pool of inventory we provide to dealers.

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

So we're bullish on the broader recreation economy, and investing to expand our reach.

Sell through beyond Rvs in line with our strategy to become a premier outdoor lifestyle company.

Early in the first quarter of our fiscal 2022 year, we completed our acquisition of Barletta boat company.

Building on our past marine investment in the Chris craft brand.

Each lettuce premium pontoon boats meaningfully expand and extend our marine platform into one of the fastest growing voting segments in pontoons.

Looking ahead, we're excited to discuss the exciting opportunity in our new marine reporting segment in quarters to come.

But due to the strength of our overall offering we have been very successful at harnessing the industry wide demand for the outdoor lifestyle and delivering net total growth.

Winnebago industries is increasingly winning with customers and we're proud that an outsized share of new outdoor adventures has chosen to become part of the wind Winnebago.

Industries community.

As of August 2021, our RV fiscal year to date market share is now 12, 5% up 140 basis points from the same period last year.

Even better we've been able to achieve these gains while maintaining record low levels of discounting.

<unk> performance and ability to capture share in the full value of our products in a competitive market underscores the unique appeal of our differentiated brand portfolio, which includes a broad range of options for new customers as they enter the market as well as more premium products as customers upgrade and move up.

Our powertrain.

Continuing to invest in our products and brands unified by our Golden threads of quality innovation and service ensures we are positioned to meet consumer demands on technology and capabilities to drive share gains now and into the future.

Finally.

The value World class team did a masterful job translating demand growth and market share gains into financial performance in the fourth quarter with an enterprise wide commitment to operational efficiency. Despite the challenges posed by the ongoing pandemic, including supply chain disruptions and inflationary pressures.

These operational efforts can be clearly seen as we kept off the fiscal year with record consolidated annual gross margins of 17, 9%.

One key element of our operational excellence is the success of our enterprise wide operations and sourcing teams who have quickly adapted.

<unk> two component shortages and supply disruptions that have become commonplace across the supply chain.

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

We will continue to monitor supply chain issues.

And provide updates along with our results as long as they persist.

And importantly, we acknowledged the essential role that our dealer and supplier partners play in meeting the needs of our customers are.

Our work to improve communication across our supply chain has allowed us to better and.

<unk> and plan for disruptions in partner component availability.

And we are continuing to strengthen and deepen our relationships with our dedicated dealer network as we focus on replenishing their inventories as quickly as possible.

We are incredibly proud of our team and the performance.

<unk> in the fourth quarter.

And for our entire fiscal 2021 year.

Our results demonstrate that we are executing well on our proven value creation strategy.

The new Heights, we were able to achieve in revenues and profitability demonstrate the unique strength and appeal of our growing platform.

As well as our world class team.

I want to thank all our employees, who successfully managed through a growing backlog and acute supply chain challenge.

To execute on tremendous demand for our premium outdoor lifestyle products.

With that opening summary, I will now.

<unk> call over to our Chief Financial Officer, Bryan Hughes to review, our fiscal 2021 fourth quarter and full year financials in more detail.

Ryan.

Thanks, Mike and good morning, everyone I'll touch on fourth quarter and annual highlight recent capital allocation announcements and several items.

I'll turn it back to reporting going forward.

Please refer to our press release and our supplemental earnings presentation for information cited in this conference call on this information can be found on our Investor Relations website at Investor <unk> Dot net ads.

As Mike mentioned earlier, our first fiscal fourth.

Items with a strong finish to an already outstanding fiscal 2021.

Fourth quarter revenues were a record $1 billion, an increase of 40% compared to the fiscal 2024th quarter.

Fourth quarter consolidated gross profit margin of 18, 1% was up 150 basis points.

Quarter compared to the same period last year, due to leverage pricing, including lower discounts and allowances and profitability initiatives.

Fourth quarter record revenues and strong margins resulted in record levels of earnings per share fourth quarter earnings per diluted share with a record $2 45.

An increase of 96% versus the same period last year.

Fourth quarter adjusted earnings per diluted share with a record $2 57.

Up 77% versus the same period last year.

Now turning to the full year fiscal 2021 results consolidated.

<unk> thousand 2021 record revenues of $3 6 billion increased approximately 54% from $2 4 billion in fiscal 2020 positively impacted by strong consumer demand for Winnebago industries products, coupled with continued RV market share gains.

Revenues were also positively impacted by pricing.

Physical <unk> taken throughout the year, which was implemented to offset inflationary cost inputs.

As well as lower levels of discounts and allowances.

Annual gross profit margin improved 460 basis points to a record 17, 9% primarily due to robust fixed cost leverage.

Price ability initiatives.

Increased pricing, including lower discounts and allowances and favorable segment mix.

In line with the fourth quarter strong annual revenues and healthy margins drove record levels of profitability full.

Full year earnings per diluted share were a record $8 28.

An increase of 350% compared to fiscal 2020.

Annual adjusted earnings per diluted share also hit a record high of $8 55.

An increase of 231% compared to adjusted earnings per diluted share of $2 58 in the same period last.

Profit.

Now turning to the individual segments.

Total segment revenues for the fourth quarter were $560 million up approximately 35% from $414 million in fiscal 2020.

Primarily driven by strong end consumer demand.

Year, and pricing, which was implemented to offset inflationary cost input pressures.

Segment adjusted EBITDA for the fourth quarter was $83 4 million up approximately 36% year over year, primarily driven by the higher revenues.

Fourth quarter, adjusted EBITDA margin of 14, 9%.

Increased 10 basis points compared to the same period last year, primarily driven by operating leverage which was offset by a shift in mix favoring travel trailers versus fifth wheel.

For the full year fiscal 2021 revenues for the total segment were a record $2 billion up 64% from fiscal 2020.

Were sent and driven by high demand for our towable products and pricing, which was implemented to offset inflationary cost input pressures.

Segment adjusted EBITDA for the full year was $289 million up 95% from fiscal 2020.

Segment, adjusted EBITDA margin of 14, 4% increased 200.

30 basis points for the full year over fiscal 2020.

Now, let's turn to our Motorhomes segment.

In the fourth quarter revenues for the Motorola segment were $448 9 million up approximately 49% from the prior year driven by strong end consumer demand, particularly in class B.

Third the class, a and pricing, which was implemented to offset inflation.

Segment, adjusted EBITDA was $50 4 million up approximately 159% from the prior year.

And adjusted EBITDA margin was 11, 2% an increase of 480 basis points over.

Our year and 150 basis points sequentially.

Driven by fixed cost leverage and profitability initiatives.

For the full year fiscal 2021 revenues with Motorhomes segment were $1 5 billion up approximately 46% compared to fiscal 2020 due to increased.

With the <unk> and pricing.

Segment adjusted EBITDA for the full year was $169 2 million up 414% from fiscal 2020.

Segment adjusted EBITDA margin for the full year was 11% up 790 basis points over fiscal 2020.

Units turning to the balance sheet.

As of the end of the of the 2021 fiscal year. The company had outstanding debt of $528 6 million comprised.

Comprised of $600 million of gross debt net of convertible note discount of $60 4 million and net of debt issuance cost of 11.

1 million.

Working capital was $651 6 million.

Our current net debt to adjusted EBITDA ratio.

0.4 times below our targeted range of 0.9% to one five times, providing financial flexibility and balance balance sheets.

Thanks to enable continued investment in our strategic imperatives and health returns for our shareholders.

We continue to maintain a very healthy liquidity position, our cash balance increased to $434 6 million at the end of fiscal 2021, and we have not drawn.

<unk> on our $192 5 million E B L.

This liquidity of approximately $627 million provided the necessary funding for the Barletta acquisition, which closed in early fiscal 2022.

We also bought back approximately $45 million worth of shares throughout the year.

<unk> dropped approximately $35 million occurring in the fourth quarter.

Combining share repurchases with dividends paid Winnebago industries returned a total of $62 million to.

In fiscal 2021, while also growing the business significantly.

The effective income.

<unk> tax rate for the full year was 23, 3% compared to 25% for fiscal 2020 due to relatively consistent year over year tax credits on higher pre tax income in fiscal 2021.

Looking ahead to fiscal 2022, we expect our tax rate to be in the range of 23, 5% to 24, 5%.

Not considering unforeseen discreet items or any change in the tax law.

Our balance sheet and financial health has never been so strong.

With that in mind, and looking ahead I want to comment on our capital allocation priorities.

First we will continue to invest in.

Business and advance our strategic priorities focused on growth and to meet the robust demand we continue to expect.

We are planning investments to add capacity, including new facilities.

Executing production flow redesign and optimizing our operational capabilities.

Are these improvements will support continued production output as well as product innovation and they signal our confidence in the future of Winnebago industries and the vitality of our end markets.

We continually look for areas of improvement across our Winnebago Grand design Newmar.

Chris craft, and now burletta manufacturing and assembly footprint and will add meaningful square footage in the coming year.

Our acquisition of Barletta completed in early fiscal 2022 was primarily funded out of cash but also included newly issued shares.

This effectively.

Cost structure keeps our liquidity position is strong and our leverage ratio low. So we can continue to pursue M&A opportunities as they arise.

Issuing shares also serves to align all parties on driving a successful integration and our collective future success.

The August 18th 2021, the company's board of directors approved a quarterly cash dividend of <unk> 18 per share payable on September 29, 2021 to common stockholders of record at the close of business on September 15 2021.

This quarter's dividend declaration represents.

On a 50% or six cents per share increase from the previous quarter and further demonstrates our confidence in future business performance, while also delivering financial returns to our shareholders.

As mentioned previously we returned approximately $45 million to shareholders through.

A further repurchases during the year with approximately $35 million occurring in the fourth quarter.

To enable further repurchase activity in the future our board approved a new share buyback program on October 13 that authorizes us to repurchase up to $200 million of our shares in the future.

This shouldn't be interpreted as a signal that we have confidence in our future and we will continue to utilize our share repurchase program as another mechanism to return cash to our shareholders.

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

Through 2022.

The first is that as previously announced our acquisition of our leather boat company materially increases the scale of our marine platform.

Beginning next quarter Q1 of fiscal 2020 to Winnebago industries publicly public reporting will include a new reporting segment.

The Marine segment comprised of our letter and Chris craft.

Comparisons will be made to fiscal 2021, which will only include include Chris craft results and we will report the same key data points to the Marine segment as we do with RV segment, specifically revenues unit.

Adjusted EBITDA backlog in field inventories.

Second going forward, we will be adjusting for 100% of intangible amortization within our adjusted earnings per diluted share in metric.

We are taking this step to ensure that our adjusted earnings per share best reflects the core operations of our business.

The impact.

This change to fiscal 'twenty, one results is available in the earnings release.

In the earnings supplement also have the page dedicated to this topic showing both the impact is currently estimated to fiscal 'twenty two and also the impact of fiscal 'twenty, one, including a breakdown between the bar let acquisition amortization.

Impact and previous acquisitions.

Third the tax rate for adjusting items that impacted reported earnings per share to arrive at adjusted earnings per share will be 24, 2%. We have historically utilize the federal statutory 21, 3% rate. This change will be effective going forward and we will not restate.

In prior years.

To conclude our Q4 and annual fiscal 2021 results reflect very strong position in the industry as we compete in and also reflects the great contributions of the Winnebago industries portfolio of businesses and the people that comprise these businesses.

We are extremely.

Stay out of these results and we have strong expectations for our future.

That concludes my review of our quarterly and full year financials and with that I will now turn the call back to Mike to provide some closing comments Mike.

Thanks, very much Brian.

As we reflect on 2021 as Brian.

Lee said, we're proud of the financial strategic and cultural strides we have made together with our talented team.

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

As part of our commitment to.

Brian several industries family and all of our stakeholders. We have made several important strides towards enhancing our ESG efforts across the organization.

In August we welcomed Winnebago Industries' first head of diversity equity and inclusion Jo little job Bostic Jill is responsible in partnership with the rest of company leadership.

One of them are advancing dei programs and initiatives and leading the execution of our overall strategy and roadmap.

As an example of lifting others up we launched a year round go together fun to aid employees facing natural and personal disasters.

Following our work mobilizing resources.

Suddenly to support earthquake relief and recovery in Haiti as an example, which is closely connected with many of our valued Chris craft teammates.

And one other thing in all industries, we are committed to the pursuit of outdoor adventures and in doing so seek to be vigorous protectors of the environment.

It is.

As result to our mission that our employees and customers are able to experience the beautiful natural spaces, our planet has to offer.

In the spirit of reducing our footprint for the next generation of outdoor enthusiasts, we recently strengthened our commitment to sustainability.

By joining the business ambition for one and a half degree.

Essentially it's a United Nations back Global coalition of business leaders.

As part of this program, we are committing to help limit the impact of climate change by setting a goal to achieve net zero greenhouse gas emissions by 2050.

We also announced additional goals on water.

<unk>.

<unk> cel and product sustainability.

We look forward to working with the science based target initiative and external validators to develop and enact a plan for achieving this net zero goal, which represents an important focus of our of our corporate responsibility strategy.

As we move into the coming year.

Here, you can expect us to continue to prioritize corporate responsibility in our investments and partnerships.

Turning to the future the unprecedented interest in our products and bullish industry outlook has provided us with a very bright outlook for fiscal 2022.

In addition to leveraging.

Strength of our RV and Chris craft brands, we're excited to add barletta the.

The fastest growing brand in the fastest growing segment of the marine category in pontoons.

Our letters quality brand and high quality dealer partners adds to our existing portfolio of premium brands, bringing more family.

Families access to the long term value Winnebago industries quality products provide.

Collectively our brands exemplify quality service and innovation to our dealers and end consumers.

The Golden threads that will drive market share gains for us in the RV and marine.

Marine industries during fiscal 'twenty, two and the years ahead.

Consumer interest in the outdoors remains strong campground reservations are just one metric that remained robust due to more households, camping and camping more frequently.

Website traffic is as strong as ever on our website.

Sites and dealers continue to see steady interest in the outdoor lifestyle of RV ing and boating.

As I mentioned earlier over 14 million households will have experienced camping for the first time since during the 2021 and 2021 periods and those experiences have resulted in many of those families buying.

I am there first RV.

As these new households experience the outdoors and further identify what they want from their experiences our dealers are already seeing the upgrade cycle will take place.

Yes, some new customers from 2020 are trading out of the lifestyle, which is not at all historically unusual.

But our broad dealer conversations across all RV brands indicate dealers are also seen at a higher accelerated pace of users trading up a trend that favors our premium brands as we tend to outperform the broader market when consumers upgrade.

Long term we.

<unk> the number of new customers, who came into the outdoor lifestyle in 2021, and 2020 will bode well for the industry.

And we're particularly excited about the number of kids, who experienced RV ing and boating.

As those experiences have been proven to translate into a love.

Believe outdoors throughout their future lifetimes.

From a supply perspective, we continue to see material and component cost increases from suppliers and.

And we continue to manage out of stock or late deliveries on a weekly basis.

There is limited visibility right now to window.

All of these trends will dissipate meaningfully.

Despite those challenges, though we continued to deliver record level revenues and margin accretion as our teams continue to work very hard and deploying effective sourcing and production strategies.

Given the levels of cost input inflation.

Window that we have witnessed over the past year, we are thoughtfully working to mitigate these cost increases with our internal cost savings initiatives.

However, it has also been necessary for us to past price increases that served to offset the inflationary pressures we are seeing.

While also ensuring our products are viewed as having exceptional.

Are you in the marketplace.

The level of price increases year over year across our portfolio of our respective brands varies from mid single digits to 20% plus.

There is no one price increase number for our business.

Will vary each of our outdoor brands are blending a price to market and price to cost approach that protects profitable market share growth.

Accordingly consumers are seeing the price of boats and Rvs go up.

As pricing to the consumer as a combination of OEM pricing.

<unk>.

Through dealer margins due to high levels of demand.

Retail pricing is not a result of OEM pricing strategy alone despite.

Despite higher prices, we are still sustaining a higher double digit percentage retail pace currently than two years ago.

Before we.

And in all the questions I wanted to touch quickly on expectations for the RV industry for the upcoming year.

We are aligned with RV Ias recent recently released Rvs IAA forecast for calendar year 2022.

Which calls for 600000 wholesale shipments.

We opened the or a growth of 4% versus the calendar year 2021 forecast of 577000 units.

On a fiscal year 2022 basis for Winnebago industries, the RV IAA forecast translates to 605000 wholesale industry shipments.

<unk> or 6% growth compared to the fiscal 2021 number of 569000 units.

As for retail.

Brian and I have mentioned several times. This morning that we expect consumer demand to remain healthy.

RV retail sales for the industry and our fiscal year 2020.

<unk>.

Were approximately 585000 units a record number and will likely be adjusted upwards as ssi adjustments take place in the coming months.

Looking ahead, we expect that fiscal 2022 RV industry retail sales.

One will be strong while they will still likely fall short of the record fiscal 2021 retail results.

We fully expect that we will see industry retail sales for our fiscal 2022 period notch the second highest level of industry retail sales on record in that.

Sales yet.

Given that outlook. It is highly unlikely that industry field RV inventories will be adequately replenished by the end of our fiscal year 2022.

Suggesting that the restocking phase will continue into our fiscal 2023.

That period, as we approach inventory normalization sometime in the future.

We've mentioned in the past that we could see that some dealers not all but some work on lower levels of inventory and higher turns.

In line with history as markets normalize dealers will rationalize.

Quantity of OEM brands on their lots.

And we believe we are competitively advantaged in that scenario with our brands. We would also expect that dealers will return to more normal or historic levels of profitability, implying pricing to end customers may ease as that occurs and as general inflation.

All eyes that dissipates in the future.

That concludes our prepared remarks this morning.

Thank you for your time and I'll now turn the line back over to the operator for the Q&A session.

Thank you as a reminder to ask a question you'll need to press star one on your telephone.

<unk> Your question press the pound key.

Our first question comes from Craig Kennison with Baird. Your line is open.

Hey, good morning, Thanks for taking my question and Mike. Thanks for the commentary towards the end there on your outlook for the industry. You had mentioned earlier that first time buyers.

<unk>.

We're coming back and some were exiting the lifestyle, how would you compare that rate too.

The historical rate of first time buyers not all of whom.

<unk> to state.

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

I think it's probably a little bit too early to quantify.

Two it by a rate trend.

New consumer either exits from the lifestyle.

Or upgrades.

Further into the lifestyle.

What I would do want to caution investors and listeners on this call is that because of the record number.

Quantum of new consumer retail sales in the past 18 months. It is likely inevitable that we will see a higher gross unit number of new consumer exits at some point.

Conversely, we also believe we will see a record number of new consumer upgrades.

<unk> to new models in the future as well.

In the last week or so.

We thoroughly canvassed many of our dealers asking the question Craig that you asked here this morning.

And we're hearing broadly that the net retail demand with new.

Consumers remains positive going into the future, meaning that our dealers believe that more new and consumers will upgrade versus exit what I can't tell you quantitatively yet is what that mix looks like and how that might differ from a pre COVID-19 period.

That's great. Thank you, Mike and then just as a follow up to the price increase.

That you had mentioned.

Due to inflationary pressure on your costs.

How to what extent are you concerned that at some point, we reach a level where you.

Consumers say, that's too much and.

I can't I can't afford an RV and therefore, maybe some of the retail expectations.

Our embedded in the RV EIA forecast.

<unk> hi.

Greg that is a valid question as well and we get asked that regularly.

By many stakeholders.

Stakeholders within our business and again I think the answer to that is difficult to tell certainly we.

We would prescribed that there is a general conviction.

<unk> pricing and demand over time.

However, with limited supply.

Lies of outdoor products available on the market.

And increased interest of consumers coming into the outdoors.

The combination of those is currently creating a sustainability of relative demand.

For our businesses.

It is difficult to look ahead over the next two to five years and understand where pricing will settle based on cost I'll give you. One example, there have been recent discussions by the administration and looking to negotiate or implement rollbacks.

In some of the tariffs introduced in 2018.

That would be a good development for us in terms of reducing some cost pressures on some of our components. Conversely, if inflation dissipates over time.

And if we see retail pricing.

From dealers to consumers.

We believe that you will see pricing in the market.

To begin to settle at normalized, albeit at most likely a higher retail price.

Than pre Covid.

But it is difficult to tell how that will impact the market and part of the reason is is we're seeing a shift.

Dissipated generational mix of consumers in the outdoors. A good example is the Latino or Hispanic participation in camping in.

In $2026 5 million Latino households, camped in 2020.

That is like four.

Greater than what it was in 2014.

And the mix of Hispanic campers as an example has grown from 2%.

Seven eight years ago to low double digits as a mix of total campers in 2020.

And so what we can't tell us what the impact of increased demand.

<unk>.

We will have on the ability for pricing to be held in the future. So I'm optimistic that we will not see a significant whiplash backwards.

In prices, but it's difficult to answer with any certainty your question for the time being.

The prices.

I mean digested.

Still high.

High levels of retail in the market.

Great. Thank you so much I'll get back into queue.

Thank you. Our next question comes from Gerrick Johnson with BMO capital markets. Your line is open.

Thank you good morning, Hey, can you talk about <unk>.

The availability of chassis also.

The chip shortages, we've had how is that affecting your how has that affected you.

And currently what's your biggest bottleneck right now.

Well good morning, Eric.

I'll take the second question first that.

That depends on the day of the week. Unfortunately.

We continue to see.

Supply chain availability issues across.

Across a variety of categories, so I'll apologize, but I wont single out any particular.

Material category or component category.

Because what I say this morning would be a different answer than two weeks ago and it will be a different answer two weeks from now.

I am pleased with is that our teams across the businesses.

Unfortunately, well versed in navigating.

These challenges along with our suppliers and working on creative solutions with the supply chain.

But also with our production strategies as well, we're actually getting better I don't know if we ever want to be perfect, but we're getting better.

And managing our production processes.

To be more agile.

Specifically concerning motorized charities in the chassis and the chip shortage issues.

This is an issue we've been dealing now with the better part of the last nine or 12 months and I would say, it's no dramatically no different today than it was six to nine months ago.

We have very strong relationships with our motorized chassis suppliers our teams are in.

Constant daily contact with them about our future forecast and needs and Conversely, those chassis suppliers have been pretty transparent about their allocation of chassis to their respective customers.

<unk> in the RV industry.

So we're able to really forge production schedule.

Around our mutual forecasts and commitment.

We continue to believe that we can.

Be competitive in the motorized market with our lineup with both the Winnebago and Newmar brands and that we will.

I'll have our fair share of motorized chassis in order to.

Compete for relevant share in the future.

Okay.

Okay. Thank.

Thank you Mike.

Thank you. Our next question comes from Scott <unk> with C. L. King Your line is open.

Good morning, guys and thanks for taking my questions.

Good morning, Scott.

Mike you could talk about the motorized segment, obviously, we know fees are growing well and you've got a bunch of new products that have come out like the echo.

Maybe just talk about.

Some of the.

More legacy brands like <unk>.

And see I know that you have a bunch of new stuff that has come out or is about to come out and talk about how they are faring in the market and how your share there is parity.

Thank you again, Scott for the question and I'm, assuming that question is probably more specific to the Winnebago brand of Motorhomes.

But let me just quick touch on Newmar before it gets to the Winnebago brand.

Almost all of you know on the call. We closed on the Newmar acquisition in November of 2019 and in March of 2020, we were we were shutting down our factories across the company due to the pandemic.

So the integrator.

<unk> sort of Newmar was really an unprecedented integration in the first year year, and a half or so because of COVID-19, and as we've said on past.

Calls the Newmar supply chain was actually one of the most impacted supply chains.

In our last 12 months to 15 months versus the other.

Integrations in that and Thats due to a number of reasons, but candidly some legacy sourcing strategies that we are working to revise in the future to make newmar supply chain more resilient. The newmar business is still continuing to take significant class a share in the market.

Their business both on class, a diesels and on class a gas and we actually we believe they are poised to have a significantly better year in our fiscal 'twenty two period than they did in fiscal 'twenty, one from a production and wholesale shipment consistency standpoint, so I start there because our overall motorized.

<unk>.

Class a share we will certainly benefit.

From Newmar continue.

<unk> to grow be healthy and especially improve on the supply chain on the Winnebago side. All of you know that our strength at least in the last five or six years has generally been more in the class B segment and.

And we are fighting ferociously.

<unk> hold as much shares we can versus an onslaught of new products from our <unk>.

Competitors.

We have not been overly pleased with our competitiveness in the class a.

Category in the class C category, but that is beginning to change with the introduction of some new products specific.

<unk> to the journey class a diesel.

On the Winnebago branded side and the recent introduction of the Echo a class C product Thats, just receiving rave reviews, we have a significant backlog on that order wise and we believe those two are the first of several new product introductions.

<unk> in the future that should stabilize and re grow the winnebago branded market share in class eight and class C.

Got it and then last question.

Just talk about how.

How we should look about.

<unk> letter as it folds into the equation here from us.

Typically standpoint.

Impact to the margins that we should look for and just give us an idea of any onetime charges coming through.

Essentially in the first quarter.

Well I'll comment on seasonality and then turn it over to Bryan Hughes for comments on.

Some of them are led as projected.

Season financial contributions as we've communicated previously we are very excited about.

<unk> been on our portfolio, we closed on that business early in our fiscal 'twenty two year, so about seven or eight weeks ago.

The team is energized the business.

Finian's very healthy obviously, you'll get more information in December when we.

Communicate our Q1 fiscal 'twenty two results.

Backlogs are strong retail is strong they continue to take share the seasonality of their business.

Candidly right now probably looks a lot like rvs because.

Because of the demand that they're seeing and the rate of growth.

In this sort of hyper demand environment, especially when wholesale.

Shipments are needed to.

Meet rising demand from dealers for both retail and inventory.

The wholesale shipment.

Line, the seasonality is really sort of depressed across all of our businesses because of the high wholesale demand.

But they will look a lot like other significant marine especially pontoon.

Cycles in the future but.

But for the next probably a couple of years, they're high wholesale demand will will.

And any real seasonality effects, Brian Youre thoughts on financial.

Expecting good morning, Scott.

We disclosed the bar, let a deal.

Hum.

Part of our conference call back when we announced and you know that the sales growth that we're expecting from that business.

And it's building off the really strong trends that the that the barletta team had built.

We're expecting for calendar year, 'twenty, one 'twenty $6 4 million of EBITDA, that's calendar year 'twenty, one we expect that it would grow from there certainly in our for our fiscal year 2022.

I'd also refer.

People on the call here to page 26 of our earnings supplement it calls out the specific amortization.

That we're expecting related to the bar, let a deal.

It amounts to $15 7 million for fiscal year 2022.

That's the full year amount and that's a $4 6 million of amortization.

In Q1, two and three.

And then it falls off to $1 8 million in Q4.

You asked about onetime expenses, we'll call those out as part of our Q1.

Press release, and then you'll be able to see very clearly.

Because we call that out as part of our adjusted EPS.

S number so we'll provide that disclosure at that time.

But obviously you have high expectations for this business and really like to see that we really like what we've seen the growth.

Got it that's all I have thanks.

Thanks, guys. Thank you.

Our next question comes from.

Mike Swartz with twists Securities. Your line is open.

Hey, good morning, guys.

Quick quick question, maybe Mike on market share gains just broadly speaking obviously based on what you've called out today, we've seen an acceleration maybe versus the prior several quarters.

Can you just talk to what do you think is driving that acceleration in market share or is it just you are.

Maybe operating better than others in the industry is there something else that we should be thinking about.

Yes, good morning, Mike Thanks for the question.

Your hypothesis.

Probably be similar to ours.

You know that.

Our teams generally believe that they are executing.

And a competitively advantaged way currently meaning that.

Their product lines are sharp.

The brands the models that they have in the market have value within consumers.

That they are nurturing and strengthening their dealer relationships.

To mutually market and sell those products turn turn leads into closes.

We're working together hand in hand on.

What we call retail sold units, where consumer puts deposits down with.

Future retail delivery those arent showing up at all yet.

The Ssi data, but we feel very confident about future retail based on the retail sold numbers that each business has seen.

And yes, it does have to do to some degree with.

The ability to get to get the right product at the right time to the dealers.

<unk> when they need it.

Theres, probably been no time in the history of the RV industry, and probably the marine industry as well.

Where the correlation between shipment share in market share from a timing standpoint.

So tight and.

And so we recognize if we can deliver.

At a higher rate.

To the to the dealers with.

With the highest retail demand there.

We can take advantage of of.

Retail opportunities but.

You know, we we've worked as you know for many years to strengthen.

Our RV position, both organically with the Winnebago brand.

Product ran design and the Newmar brands as well and we feel very fortunate that all three of those brands are pretty healthy right now.

Notwithstanding some of the areas I mentioned in the earlier answer on Winnebago class, a and class C, where we have some more work. So so again.

I think the short answer.

But with this it is operational.

<unk> effectiveness right now.

Okay, great. Thanks for the color and then maybe just a.

Second question on pricing, there's a lot of obviously a topic of discussion around this but I guess just from a maybe more of a strategic standpoint, I mean, how are you passing through.

Through the pricing.

From a timing perspective are you taking pricing before you see the cost increase come through or are you doing it kind of in lock step and then.

Just talk about.

How you're how you're passing that pricing onto the consumer is.

I guess are you price protecting your backlog will be the second part of that.

Yes.

So the answer Unfortunately to your question is it depends.

We give each of our brands.

Pretty broad autonomy and latitude.

To price their products as they see fit for their brands and certainly Brian and I are kept informed and updated in.

Engaged in conversations from time to time on.

The merits of those strategies, but as my comments in the script portrayed it as a blended price to market and price to cost we have some really innovative products in the solas and the echo we have some high demand products many of them in.

The Grand design line.

Newmar has got some really great.

A diesel products that are that are taking share. So there your pricing more to market, where you can get value in dollars for your innovation or your product leadership.

But.

We probably have price more to cost.

In the last 12 months that at any time in my almost six years with the company and Thats just the reality of the commodities and the component costs moving at a rate.

That we have trouble catching up with the times.

And the projections of when they will.

Begin to go into neutral.

I won't go into details, but many times, we have thought certain commodities, we're going to start to flatten out from a curve standpoint in terms of pricing and they break through to yet another level.

And there is no significant.

Sign yet.

Many of the costs are just going to dramatically slow down quickly.

So the answer your question on how we price does vary by brand and by product. There are times, where we can see future costs coming at us.

Based on sources that we trust in terms of projection or suppliers that are transferred.

And what they intend to do.

And in those cases, we will try to take proactive action in other cases, we're chasing.

Never before have we seen suppliers come to us and implement.

Cost changes the next day in many cases, historically they'd say hey, you have two months three months and then your prices.

Transfer going up or they'd go up at the same time, roughly every year and so we are dealing with sometimes weekly price increases and an unexpected nature and then reacting to that.

From a price protection standpoint.

Almost all of our businesses in most of their lineups.

<unk> are very transparent with the dealers that we're not able to price protect.

Most of the wholesale backlog.

There had been varying degrees of protection on retail sold units and that varies by brands, but that is becoming difficult to protect as well.

When we don't.

What the true cost of that unit might be.

That has a retail deposit against it if we haven't even built it yet.

So it is a very very dynamic hectic a pricing environment.

I think our teams are doing a really good job to try to again balanced price to market price.

No.

And.

And we'll see how the future goes in terms of implications as one question was with demand earlier.

But we believe that we are able to grow market share.

With.

The clock unit wise with the pricing strategies, we are employing today.

Okay, great. Thank you.

Thank you. Our next question comes from Fred Wightman with Wolfe Research. Your line is open.

Hey, guys. Good morning. Thanks for the question I was hoping you could just comment on some of.

The Ssi data for the past few months it looks like that two year trend has been coming down.

Is that just due to inventory any sense for that.

Much of that is a supply driven versus maybe some delta impacts or just what youre seeing at the consumer level.

Yes, I think it's one it's a function of timing right.

With every month, we pulled two years ago closer to the to the present so.

Yeah.

We are seeing that trend as well.

The only thing I can comment on Fred is our retail pattern and it generally.

It's been over performing the industry, but I tend to do this from time to time on these calls.

But as I look at our retail results fiscal year 2022 to date, so our first seven weeks.

We're still running a very healthy double digit increase in retail use.

<unk> has sold in.

Versus two years ago.

So.

Well that that number will naturally lower over time.

Youre going to start to see 2019 turned into 2020 at some point in terms of a two year comparison and beginning in.

Units may of 2020, we're going to start to see sort of two year comps against the may of 2020 to start to be very difficult.

Because the record retail demand of the sort of the Covid period.

We'll be in those two year comps. So I just think we're in a general glide slope.

In that direction.

<unk> as a.

Sort of Covid accelerated retail demand has moderated a little bit.

With continued low fuel inventories maybe.

Some slight impact of higher pricing.

Youre starting to see some of those comps versus year over year or two years become more difficult.

<unk>.

So.

As we said in our script we.

We are in one of the most unprecedented times and the outdoor industries in terms of both retail demand dealer inventory subsequent wholesale.

<unk> backlogs.

So.

My concern is that especially.

Those were the shorter term outlook. They will look at some of these barometers and over exaggerate emphasize.

The degree of peril.

Our industry negativity.

Comes with that data.

We're seeing record levels of outdoor engagement.

And we believe that that bodes very well for what this industry looks like both in Rvs and also boding five to 10 years from now the next year or two we'll continue to be.

Challenging from a comp period.

<unk>.

To interpret whether.

The market is overly healthy.

We're less healthy.

And that.

Outdoor demand.

Sustained itself.

You know into into the future.

Great and then just one quick follow up Mike when you were talking about those double digit increases for retail is that written business are actually delivered units.

That's actual retail registrations.

So you know again, what we'll share full.

<unk> first quarter results.

For our business in December.

But as I often do on some of these calls a tease you guys with current performance.

You know, we're continuing to see strong two year comp numbers.

You know on our business.

Thanks, guys.

Thank you. Our next question comes from James Hardiman with Wedbush Securities. Your line is open.

Hey, good morning, Thanks for fitting me in a lot of my questions have been asked but I did have a couple of very brief follow ups.

I guess firstly.

I can appreciate that there is a lot of nuance, but would you say that the supply chain issues are getting better getting worse staying roughly the same.

Well I would say theyre getting better for the following reason that in.

In the call. This morning, we have projected a fourth.

4% calendar shipment increase from 2021 to 2022, and a 6% fiscal year increase in industry shipments based on our fiscal period.

So I mean theyre getting better.

And I've said this before our suppliers are great.

They're working hard they are taken care of their employees during.

Covid times, they're doing everything they can to procure materials and manage costs.

And this.

Our industries are producing at record levels of output.

And we believe that that will continue and if you do the math on roughly 600000.

These new units a year and a calendar year, you're talking on average 50000 units a month.

And when we've seen that number on the RV side be 45 to 53000 units a month over probably the past six months. So we believe that we believe that you are probably going to see consistently.

More 50000 unit production or wholesale shipment.

Once sand some of the holiday periods.

In the next.

<unk>.

1% to 16 months going going forward so.

I would say so that so the net answer is it is improving.

That doesn't.

It mean that the daily gymnastics or.

Any any.

Less interesting we continue to manage.

Routine out of stocks or late deliveries.

But I think collectively we're headed the right direction.

And just to clarify that that point about.

4% to 6%.

Shipment increase there's no reason to believe that that's all going to come late in the year. I mean, we should expect some amount of growth in the in the near term or is that not the way the best way to think about.

Yeah.

I can only tell.

So on our production levels today.

Our plants are running at very strong levels as we speak and so I'm anticipating that our competitors are achieving some of the same and that you will you will see.

Healthy shipment.

Unit numbers in the RV industry, especially and I would imagine on the marine side as well.

In the next month in the months to come.

Can it get better.

In the later half of 2022.

We certainly hope so.

And because of the field inventory status.

Let us maybe there is upside.

To that 600000, plus number you have the supply chain can get even more consistent but we will see.

I think the 600000 unit number or 605 for our fiscal period is a I think that's a good number.

The sort of place an over under bet on.

And as an industry, we're all rooting for the over.

That's really helpful. And then lastly for me.

Maybe contextualize your new.

Share buyback authorization that I think it was $200 million how quickly you might want to work through that obviously.

There was a pretty big step up in the fourth quarter with that $35 million.

I don't know if thats an indication that you think your stock is really cheap right here and you're getting opportunistic or some other reasons, but how should we think through.

Your interest in sort of quickly getting through that or sort of slow and.

For not the rate.

This is Brian James.

It's a mechanism that we.

We want to have available to us.

That in my comments, our priority is to continue to grow the business organically and Inorganically.

So thats priority one we obviously.

We want to maintain.

Our liquidity and our leverage ratio in the right range.

Priority two and then we want to return cash to shareholders.

We've talked about the 50% increase in the dividend we executed in the healthy share repurchase we did in Q4 here.

And it's a great mechanism for us.

We don't give a time period.

With which we expect to exhaust that $200 million, because it's obviously subject to the other priorities that we've laid out and so.

It's a it's a mechanism that we like to have available to us and we certainly will use it.

And if it makes sense to do so.

But in light of the other priorities that we have.

Makes sense thanks Scott.

Thanks James.

Thank you. Our next question comes from Bret Jordan with Jefferies. Your line is open.

Hi, Good morning. This is Ethan Huntley on for Brett Thanks for taking my questions.

Just one here regarding the <unk> backlog it seems like the units came down sort of ever so slightly sequentially, but on a dollar terms increased could you just sort of provide any color on the mix within that backlog.

Yes, good morning Ethan.

I don't know if I would have anything of significance on that.

Extent in that segment is probably viewed for us is healthy.

The <unk> business has been the part of the RV segment that has been predominantly gaining the most share here for us.

In the past several years.

I will.

Calm transparent with you all on the call. This morning that some of the backlog numbers were actually taken backwards internally.

Because we do not have slots for production.

On some of the models that have orders from dealers and even consumers on them.

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

We are we are making zero open orders in our production schedules.

And everything has has a dealer name or even a retail name on it.

And when when.

Backlog order is.

Received by US our teams are working to essentially schedule those in the future three months from now six months from now 12 months from now.

We had several products with significant orders there.

We just could not we cannot yet find production capacity for and so we actually Unbeknownst to all of you guys. We were we took those out of the backlogs that we reported for fourth quarter. Because we felt that was the right thing to do from a from.

And hey, gritty standpoint, I know, there's been lots of questions about the integrity of the backlogs, but the towable backlogs remain strong they're predominantly Grand design, our Winnebago branded <unk> had a really strong fiscal 2021 year.

Its plans for 2022 are very robust as well so.

Permanent mix as a percentage the winnebago mix of the total segment backlog is probably growing a little bit.

But I wouldn't read too much into it.

Being relatively flat as you said.

Okay. Thanks.

That's helpful. And then just lastly, you sort of on the Marine front here can you give any update on.

Some of the supply chain are you sort of seeing similar challenges as.

At CN, the RV business or maybe just any sort of general commentary on that segment would be helpful. Thank you.

Youre welcome and we always have to.

We also always have to clarify that.

Before we made the barletta purchase.

We're very proud of our Chris craft business, it's probably not an accurate reflection of the whole of the market than other other companies are probably in a better position to comment on the health of the marine supply chain, but now with <unk> in the fold for the last month and a half.

And with operating our Chris craft business, we have a little bit bigger visibility into the marine.

<unk> supply chain and generally it is continues to be challenging as well there, but as you can imagine some of the categories of components that we struggle with are different.

We see more challenges at times with electrical products switches.

Certain types of maybe wire.

<unk> harnesses Luna systems.

You have different types of glasses and windshields as an example that have at times been a challenge on some of our marine products.

Saying that though there are similarities at times.

Both.

Businesses use furniture.

Both use certain types of.

Resins.

Our four key plastic components.

So you see some similarities in the furniture is probably the one that comes to mind that has been tight for them.

Both RV and marine for some time here.

And.

But again as with.

To an earlier question.

It really depends on the week as to what the what the the challenge of the weakest from a supply chain standpoint in that and that's similar in marine.

Thank you very much.

Yeah.

Thank you. Our next question comes from Brendan.

My answer Lee with Northcoast Research your line is open.

Good morning, I have one brief follow up question.

On the last earnings call you had talked about.

'twenty calendar retail being up low to mid teens in year.

Year to date it looks like through the month of September it's up 17% or are you still comfortable with that guidance and if so.

We're not would you be able to update your thoughts on the calendar year. Thank you.

I'm going to have to I'm going to have to reference probably a different document that I don't have in front of me for that question. So Brian I think we will get back to you on a follow up Steve Stuber, we will get back to you with.

With maybe our latest thoughts on that as you can tell we've been very focused on our fiscal 2022 year, which is under way and that period, but yes. We do have an opinion on that based on our modeling internally I just don't have that that sort of updated number in front of me right right now.

No problem. Thank you so much.

Youre welcome.

Thank you we have a question from Joe Odea Bello with Raymond James Your line is open.

Hey, guys. Good morning, Thanks for taking good morning.

Couple of quick ones I guess first I want to go back and answer you gave earlier in terms.

Pricing EBITDA margin, if you look at the quarter, the 12, 5% EBITDA margin.

And were there any unusual factors from a timing perspective on either cost or pricing.

It impacted that one way or another.

Okay.

Well.

Joe.

Good morning, I'll give you my first thought on that question and then ask Brian to weigh in.

I just wanted to remind everybody on the call that our portfolio has been dramatically changing over the last five years, and we will likely do so in the future and what I mean by that is because of some of the organic growth initiatives.

<unk> and particularly improve profitability around the Winnebago branded Motorhomes segment.

Our acquisitions.

Now have four brands Grand design, Chris craft, Newmar and Barletta.

Our progress on operational excellence in the company.

There are many.

Any reasons why our profitability has been transformed over the last five years and on a quarter to quarter basis. There certainly are some specific things in those quarters, such as product mix of recent pricing or.

That may have some influence.

And obviously the comps are always dictated by what was happening a year ago.

Yeah.

We genuinely believe that our future prospects.

On sustained profitability at Winnebago industries is less a function of what's happening currently in the market, particularly as it were.

In respect to some of our pricing.

As of late.

But our future profitability over time will be more related to the maturation of our portfolio that we have today and the continued addition of new pieces to the portfolio and the advancement of operational excellence.

In terms of cost management productivity.

<unk> leverage synergy.

In the future and so.

We are not satisfied with what we've achieved at Winnebago industries, yet we're very proud the teams are awesome.

We're competing vigorously in the market and we believe we are providing stronger.

<unk> for shareholders to be proud of.

But we are very much focused.

You saw.

We are a fly on the wall with Brian a nice discussions with our board about our future in 2025 and beyond we have higher aspirations than how we're performing today and we will employ.

<unk>.

Strategies and plans in the future.

To bring those to fruition, but Brian do you want to comment on maybe specifically the 12 and a half and some of the recent contributors to that.

Yes, I think it's Mike I think you covered it well in terms of the longer term performance I always.

I'd like to also remain.

In mind.

Listening of the margin performance in totals and motorized separately, obviously, we'll have the marine segment to contend with going forward and we will add that third segment and the impact that it has on margins.

The total segment has consistently had strong margins 13 14.

And more recently, even a little bit above that EBIT.

EBIT margin on that.

The motorized side, we've had a.

There's a long history, there, but the more recent history has shown margins in the 345% range EBITDA margin.

And that took a step change.

Within the last.

Quarters, or so and now is performing as you noted in double digit territory and that is the culmination of many things that we've done over there for several years, it's not just the market certainly the market right now is providing tailwind for profitability across the board for.

For Oems and dealers alike.

And that has been beneficial but the longer.

Six things that we've done.

Including things like that West coast plant shutdown, the relocation back into northern Iowa.

Several productivity initiatives that we've undertaken in northern Ireland, which we've talked about.

Walked away from quoting you walk away from the Itasca brand as you.

Longer to recall those of you who followed us for several years.

And scaled back dramatically the cloning that has helped us on the productivity and the profitability of our dealer network.

As well as our own profitability. We are focused on those products that we know are differentiated and so our mix has shifted as.

May alluded to.

And over the long term our belief on margin enhancement and sustainability is really tied to that quality service and innovation that we often talk to being differentiated in the marketplace is really what's going to sustain our margins over time.

And as Mike said, that's our expectation for the longer term.

Mike.

That will have differentiated margins because our position in the marketplace is differentiated.

And I think youre seeing.

Some of the benefits of that.

Our our last couple of year trend here.

That's very helpful. It does sound like it's largely structural so if I can squeeze one.

<unk> price protection.

And I want to make sure I understood, what you're saying that incremental buyer, who thought he was buying let's say a $35000 travel trailer in July.

Now buying a California.

Dollar travel trailer when it gets delivered in November.

If you have any recourse in that situation.

So I want to be careful in terms of my answer on retail price protection because it involves multiple parties primarily the dealer.

Has the ultimate answer to the end consumer on whether that retail prices protected or not the dealer will engage the OEM for that product as to whether.

Maureen OEM will support or participate in any retail price protection that will depend on the OEM brand it will depend.

Potentially on the circumstances with that customer.

Historically.

Because retail sold units had been a lower.

Percentage of our sales in some of our brands and because the time to delivery from an out of stock retail deposit to time of delivery has been a lot shorter we have tended in most of our brands to retail price protect those commitments.

With our dealers ultimately, it's the dealers decision.

We have offered consistent support through the years.

That position has evolved currently because of the potential time, it would take to deliver a retail unit to that customer.

And the potential change in input cost, especially on units that.

But we even haven't been produced yet when that customer puts that deposit.

But it will depend on the dealer it'll depend on the model it will depend on the brand it'll depend on the time gap between when that retail deposit is put down and when that unit might be delivered.

So those are daily conversations between our teams.

Maybe and our dealers are well aware of our current policies and stances from each of the outdoor businesses.

And we're having those conversations currently so I don't want to make any commitments.

About the retail price to the consumer because that ultimately is the dealer's choice.

But as Oems, we're always going to try to be good partners with our dealers.

As we as we mutually try to manage a very dynamic environment. So again it depends answer.

Appreciate it thanks guys.

Thanks.

Thank you.

This concludes.

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

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

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

The bank.

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Good day, and thank you for standing by and welcome to the Winnebago industries fourth quarter and fiscal year 2021 earnings Conference call. At this time all participants are in a listen only mode. After the speaker's presentation there'll be a question and answer session to ask a question. During the session you will need to press star one on your telephone please.

Please be advised that todays call.

Is being recorded I would now like to hand, the conference over to Steve Stuber, Vice President of Investor Relations you may begin.

Thank you Catherine.

Good morning, everyone. Thank you for joining us today to discuss fiscal 2021 fourth quarter and full year earnings results.

And on the call today by Michael Happy President and Chief Executive Officer, and Bryan Hughes, Senior Vice President and Chief Financial Officer.

Call is being broadcast live on our website at Investor got W. G O dot net and a replay of the call will be available on our website later today.

The.

I am joined release with our fourth quarter and annual results and the earnings supplement were issued and posted to our website earlier this morning.

The news release laws.

<unk> cautions you that forward looking statements involve a number of risks and are inherently uncertain and a number of factors many of which are beyond the company's control could cause actual results to differ materially from these statements. These factors are identified in our SEC filings, which I encourage you to read.

With that I would now like to turn the call over to our President and CEO, Michael Happy Mike.

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

As always we deeply appreciate your interest in Winnebago industries, and taking the time to discuss our fiscal fourth.

Fourth quarter and annual 2021 results.

Then I'll offer some closing comments and.

Thoughts before we turn to your questions.

Our fourth quarter fiscal 2021 was a strong finish to a remarkable year.

Characterized by record revenue and record profitability.

<unk> by three key factors.

First a sustained elevated excitement.

And then for the outdoor lifestyle remains a powerful tailwind driving demand for Winnebago industries premium products.

Winnebago industries grew fourth quarter revenues, 44% year over year, and 56, 8% on an organic basis ex newmar compared to our fiscal.

2019 and fourth quarter.

Second one of the bigger industries trend of expanding market share accelerated in the fourth quarter, gaining a full two one percentage points of share during the three months period ending August.

Importantly, this is driven by both new and experienced consumers who recognize the.

The differentiated quality and innovation in Winnebago industries brand portfolio and the exceptional service, we are known to provide in partnership with our dealers.

And third our team's relentless demonstration of operational excellence, which enabled us to deliver for our consumers and our dealer partners efficiently.

<unk> and profitably during a very challenging period as supply constraints and inflation have endured.

As a result, we expanded margins in both our motor home and horrible segments during the fourth quarter.

Before I continue I want to recognize the superb winnebago.

Industries employee team.

Our employees know 6800, plus strong with the addition of Barletta have worked tirelessly to provide the high quality products and exceptional service our customers and dealer partners have come to expect.

While managing through record high backlog.

Will any of the tremendous demand for our products.

Their dedication throughout this year has been the key factor in our success.

The pandemic has undoubtedly catalyze the accelerated powerful demand for outdoor experiences and we believe this secular shift already.

Already underway pre COVID-19 will have a lasting impact as more and more new families experience the great outdoors.

Over 10 million households camp for the first time in 2020, and we are tracking towards another estimated $4 3 million households to have their first camping experience in.

In 2021.

In addition to first timers, a new wave of engaged enthusiasm, especially millennials younger generations.

Our investing more of their time in income in the outdoor lifestyle.

To put a finer point on this even as we saw the easing.

Using a pandemic restrictions over the summer, creating a possible return to a broader set of vacation and travel leisure options.

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

Our record.

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

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

So we're bullish on.

The broader recreation economy, and investing to expand our reach beyond rvs in line with our strategy to become a premier outdoor lifestyle company.

Early in the first quarter of our fiscal 2022 year, we completed our acquisition of Barletta boat company.

Building on our past marine investment in the Chris craft brand by our latest premium pontoon boats meaningfully expand and extend our marine platform into one of the fastest growing boating segments in pontoons.

Looking ahead, we're excited to discuss the exciting opportunity.

In our new Marine reporting segment in quarters to come.

Due to the strength of our overall offering we have been very successful at harnessing the industry wide demand for the outdoor lifestyle and delivering net total growth.

When does that go industries is increasingly winning with customers and we're proud that an outsized.

<unk> share of new outdoor adventures has chosen to become part of the wind Winnebago industries community.

As of August 2021, our RV fiscal year to date market share is now 12, 5% up 140 basis points from the same period last year.

Even better we've been able.

To achieve these gains while maintaining record low levels of discounting our performance and ability to capture share in the full value of our products in a competitive market underscores the unique appeal of our differentiated brand portfolio, which includes a broad range of options for new customers as they enter the market.

As well as more premium products as customers upgrade and move up the value chain.

Continuing to invest in our products and brands unified by our Golden threads of quality innovation and service ensures we are positioned to meet consumer demands on technology and capabilities.

These to drive share gains now and into the future.

Finally, our world class team did a masterful job translating demand growth and market share gains into financial performance in the fourth quarter with an enterprise wide commitment to operational efficiency. Despite the challenges posed by the ongoing pandemic, including.

Supply chain disruptions and inflationary pressures.

These operational efforts can be clearly seen as we capped off the fiscal year with record consolidated annual gross margins of 17, 9%.

One key element of our operational excellence is the success.

Of our enterprise wide operations and sourcing teams, who have quickly adapted to component shortages and supply disruptions that have become commonplace across the supply chain.

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

Our assembly lines moving.

We will continue to monitor supply chain issues and provide updates along with our results as long as they persist.

And importantly, we acknowledge the essential role that our dealer and supplier partners play in meeting the needs of our customers.

Our work to improve communication across our supply chain has allowed us to better anticipate and plan for disruptions in partner component availability.

And we are continuing to strengthen and deepen our relationships with our dedicated dealer network as we focus on replenishing their inventories as quickly as.

As possible.

We are incredibly proud of our team and the performance in the fourth quarter and for our entire fiscal 2021 year.

Our results demonstrate that we are executing well on our proven value creation strategy.

The new Heights, we were able to achieve in revenues and.

And profitability demonstrate the unique strength and appeal of our growing platform as well as our world class team.

I want to thank all our employees, who successfully manage through a growing backlog and acute supply chain challenge too.

To execute on tremendous demand for.

For our premium outdoor lifestyle products.

With that opening summary, I will now turn the call over to our Chief Financial Officer, Bryan Hughes to review, our fiscal 2021 fourth quarter and full year financials in more detail.

Brian.

Thanks, Mike and good morning, everyone I'll touch on fourth.

Quarter and annual highlight recent capital allocation announcements and several items impacting reporting going forward.

Please refer to our press release and our supplemental earnings presentation for information cited in this conference call. This information can be found on our Investor Relations website at Investor <unk>.

<unk> dot net as.

As Mike mentioned earlier, our first fiscal fourth quarter was a strong finish to an already outstanding fiscal 2021.

Fourth quarter revenues were a record 1 billion, an increase of 40% compared to the fiscal 2024th quarter.

Fourth quarter consolidated.

<unk> gross profit margin of 18, 1% was up 150 basis points compared to the same period last year due to leverage pricing, including lower discounts and allowances and profitability initiatives.

Fourth quarter record revenues and strong margins resulted in record levels of earnings per.

Sure fourth quarter earnings per diluted share with a record $2 45.

An increase of 96% versus the same period last year.

Fourth quarter adjusted earnings per diluted share with a record $2 57.

Up 77% versus the same period last year.

Now turning to the full year fiscal 2021 result, consolidated fiscal 2021 record revenues of $3 6 billion increased approximately 54% from $2 4 billion in fiscal 2020 positively impacted by strong consumer demand for Winnebago industries product coupled with continued RV.

Market share gains.

Revenues were also positively impacted by pricing taken throughout the year, which was implemented to offset inflationary cost input.

As well as lower levels of discounts and allowances.

Annual gross profit margin improved 460 basis points to a record 17.

9%, primarily due to robust fixed cost leverage profitability initiatives.

Increased pricing, including lower discounts and allowances and favorable segment mix.

In line with the fourth quarter strong annual revenues and healthy margin drove record levels of profitability.

Full year earnings per diluted share were a record $8 28.

An increase of 350% compared to fiscal 2020.

Annual adjusted earnings per diluted share also hit a record high of $8 55.

An increase of 231% compared.

To adjusted earnings per diluted share of $2 58 in the same period last year.

Now turning to the individual segments.

Total segment revenues for the fourth quarter were $560 million up approximately 35% from $414 million in fiscal 2020.

Primarily driven by strong in <unk>.

And consumer demand and pricing, which was implemented to offset inflationary cost input pressures.

Segment adjusted EBITDA for the fourth quarter was $83 4 million up approximately 36% year over year, primarily driven by the higher revenues.

Fourth quarter adjusted EBIT margin of 14, 9% increased 10 basis points compared to the same period last year, primarily driven by operating leverage which was offset by a shift in mix favoring travel trailers versus fifth wheel.

For the full year fiscal 2021 revenues for the total segment were a record $2 billion.

Up 64% from fiscal 2020, driven by high demand for our total product and pricing, which was implemented to offset inflationary cost input pressures.

Segment adjusted EBITDA for the full year was 289 million up 95% from fiscal 2020.

Segment adjusted.

Adjusted EBITDA margin of 14, 4% increased 230 basis points for the full year over fiscal 2020.

Now, let's turn to our motor homes segment.

In the fourth quarter revenues for the motor home segment were $448 9 million up approximately 49% from the prior year driven by strong.

And consumer demand, particularly in class B and class, a and pricing, which was implemented to offset inflation.

Segment, adjusted EBITDA was $50 4 million up approximately 159% from the prior year and adjusted EBITDA margin was 11, 2%.

An increase of 480 basis points over the prior year and 150 basis points sequentially.

Driven by fixed cost leverage and profitability initiatives.

For the full year fiscal 2021 revenues with Motorhomes segment were $1 5 billion up approximately 46%.

Compared to fiscal 2020, due to increased unit sales and pricing.

Segment adjusted EBITDA for the full year was $169 2 million up 414% from fiscal 2020.

Segment adjusted EBITDA margin for the full year was 11% up 790.

The basis points over fiscal 2020.

Turning to the balance sheet.

As of the end of the fifth of the 2021 fiscal year. The company had outstanding debt of $528 6 million.

Comprised of $600 million of gross debt net of convertible note.

Out of $60 4 million and net of debt issuance cost of $11 1 million.

Working capital was $651 6 million.

Our current net debt to adjusted EBITDA ratio is 0.4 times below our targeted range of 0.9 to one five times.

Just can providing financial flexibility and balanced balance sheet strength to enable continued investment in our strategic imperatives and health returns for our shareholders.

We continue to maintain a very healthy liquidity position.

Our cash balance increased to $434 6 million.

At the end of fiscal 2021, and we have not drawn on our $192 5 million a b L.

This liquidity of approximately $627 million provided the necessary funding for the Barletta acquisition, which closed in early fiscal 2022.

We also bought back.

Approximately $45 million worth of shares throughout the year with approximately 35 million occurring in the fourth quarter.

Combining share repurchases with dividends paid Winnebago industries returned a total of $62 million to shareholders in fiscal 2021, while also growing.

The business significantly.

The effective income tax rate for the full year was 23, 3% compared to 25% for fiscal 2020 due to relatively consistent year over year tax credits on higher pretax income in fiscal 2021.

Looking ahead to fiscal 2022, we expect.

Our tax rate to be in the range of 23, 5% to 24, 5% not considering unforeseen discreet items or any change in the tax law.

Our balance sheet and financial health has never been so strong.

With that in mind, and looking ahead I want to comment on our capital allocation.

<unk> priorities.

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

We are planning investments to add capacity, including new facilities.

<unk> production slow redesign.

<unk> and optimizing our operational capabilities.

These improvements will support continued production output as well as product innovation.

And they signal our confidence in the future of Winnebago industries, and the vitality of our end markets.

We continually look for areas of improvement.

Across our Winnebago Grand design, Newmar, and Chris craft, and now Burletta manufacturing and assembly footprint and will add meaningful square footage in the coming years.

Our acquisition of Barletta completed in early fiscal 2022 was primarily funded out of cash.

But also included newly issued shares.

This effective deal structure keeps our liquidity position is strong and our leverage ratio low. So we can continue to pursue M&A opportunities as they arise.

Issuing shares also serves to align all parties on driving a successful integration and.

And our collective future success.

On August 18th 2021, the company's board of Directors approved a quarterly cash dividend of <unk> 18 per share payable on September 29, 2021 to common stockholders of record at the close of business on September 15th 2021.

This quarter's dividend declaration represents a 58% or six cents per share increase from the previous quarter and further demonstrates our confidence in future business performance, while also delivering financial returns to our shareholders.

As mentioned previously we returned approximately.

At like $45 million to shareholders through share repurchases during the year with approximately $35 million occurring in the fourth quarter.

To enable further repurchase activity in the future our board approved a new share buyback program on October 13th that authorizes us to repurchase up to.

Crossing $100 million of our shares in the future.

This shouldn't be interpreted as a signal that we have confidence in our future and we will continue to utilize our share repurchase program as another mechanism to return cash to our shareholders.

Before I conclude my remarks, I want to raise three items.

That will change our reporting beginning with the first quarter of our fiscal year 2022.

The first is that as previously announced our acquisition of our leather boat company materially increases the scale of our marine platform.

Beginning next quarter Q1 of fiscal 2020 to Winnebago industries.

Publicly public reporting will include a new reporting segment, the marine segment comprised of our letter and Chris craft.

Comparisons will be made to fiscal 2021, which will only include include Chris craft results and we will report the same key data points for the Marine segment as.

With RV segments, specifically revenues unit adjusted EBITDA backlog in field inventories.

Second going forward, we will be adjusting for 100% of intangible amortization within our adjusted earnings per diluted share in metric.

We are taking this step to ensure that our adjusted earnings per share.

As we reflect the core operations of our business.

The impact of this change for fiscal 'twenty. One results is available in the earnings release and the earnings supplement also have the page dedicated to this topic showing both the impact is currently estimated to fiscal 'twenty two and also the impact of fiscal 'twenty one.

Including a breakdown between the Bartlett of acquisition amortization and previous acquisitions.

Third the tax rate for adjusting items that impact reported earnings per share to arrive at adjusted earnings per share will be 24, 2%. We have historically utilize the federal statutory 21, 3% rate.

This change will be effective going forward and we will not restate prior years.

To conclude our Q4 and annual fiscal 2021 results reflect very strong position in the industries. We compete in and also reflects the great contribution to the Winnebago industries portfolio of businesses and the.

Paul that comprise these businesses we.

We are extremely proud of these results and we have strong expectations for our future.

That concludes my review of our quarterly and full year financials and with that I will now turn the call back to Mike to provide some closing comments Mike.

Yes.

Thanks, very much Brian.

Pete as we reflect on 2021 as Brian said, we're proud of the financial strategic and cultural strides we have made together with our talented team in.

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

Yeah.

As part of our commitment to our Winnebago Industries' family and all of our stakeholders. We have made several important strides towards enhancing our ESG efforts across the organization.

In August we welcomed Winnebago Industries' first head of diversity equity and inclusion Jo Little Jon Bostic Jill is responsible.

Holders in partnership with the rest of company leadership for advancing dei programs and initiatives and leading the execution of our overall strategy and roadmap.

As an example of lifting others up we launched a year round go together fund to aid employees facing natural and personal disasters.

<unk> following our work mobilizing resources recently to support earthquake relief and recovery in Haiti as an example.

She is closely connected with many of our valued Chris craft teammates.

And one of them I go industries, we are committed to the pursuit of outdoor adventures and in doing so seek to be vigorous.

Sectors of the environment.

It is essential to our mission that our employees and customers are able to experience the beautiful natural spaces, our planet has to offer.

In the spirit of reducing our footprint for the next generation of outdoor enthusiasts, we recently strengthened our commitment to sustainability.

Per tightening the business ambition for one five degree Celsius, and United Nations back Global coalition of business leaders.

As part of this program, we are committing to help limit the impact of climate change by setting a goal to achieve net zero greenhouse gas emissions by 2050.

We also announced.

By journal goals on water waste and product sustainability.

We look forward to working with the science based target initiative.

And external validators to developing an ACA plan for achieving this net zero goal, which represents an important focus of our of our corporate responsibility strategy.

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

Turning to the future the unprecedented interest in our products and bullish industry outlook has provided us with a very bright outlook for fiscal 2022.

But in addition to leveraging the strength of our RV and Chris craft brands, we're excited to add barletta the.

The fastest growing brand in the fastest growing segment of the marine category in pontoons.

Our letters quality brand and high quality dealer partners adds to our existing portfolio of premium.

Liam brands, bringing more families access to the long term value Winnebago industries quality products provide.

Collectively our brands exemplify quality service and innovation to our dealers and end consumers.

The Golden threads that will drive.

Market share gains for us in the RV and Marine industries during fiscal 'twenty, two and the years ahead.

Consumer interest in the outdoors remains strong campground reservations are just one metric that remained robust due to more households, camping and camping more frequently.

Website traffic.

<unk> is as strong as ever on our websites and dealers continue to see steady interest in the outdoor lifestyle of RV ing and boating.

As I mentioned earlier over 14 million households will have experienced camping for the first time since during the 2021 and 2021 periods and those experiences have resulted in.

<unk> of those families buying their first RV.

As these new households experience the outdoors and further identify what they want from their experiences our dealers are already seeing the upgrade cycle will take place.

Yes, some new customers from 2020 are trading out of the lifestyle, which is.

And many all historically unusual.

Long term, we believe the number of new customers, who came into the outdoor lifestyle in 2021, and 2020 will bode well for the industry.

And we're particularly excited about the number of kids, who experienced RV ing and boating.

As those experiences have been proven.

And to translate into a love of the outdoors throughout their future lifetimes.

From a supply perspective, we continue to see material and component cost increases from suppliers.

And we continue to manage out of stock or late deliveries on a weekly basis.

There is limited.

Emitted visibility right now to win those trends will dissipate meaningfully.

Despite those challenges, though we continued to deliver record level revenues and margin accretion as our teams continue to work very hard in deploying effective sourcing and production strategies.

Given the levels of cost.

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

However, it has also been necessary for us to pass price increases that served to offset the inflationary pressures we are seeing.

While also ensuring our pre.

Products are viewed as having exceptional value in the marketplace.

The level of price increases year over year across our portfolio of our respective brands varies from mid single digits to 20% plus.

There is no one price increase number.

<unk> for our business.

Each of our outdoor brands are blending a price to market and price to cost approach that protects profitable market share growth.

Accordingly consumers are seeing the price of boats and Rvs go up as pricing to the consumer as a combination of OEM.

M pricing and improve dealer margins due to high levels of demand.

Retail pricing is not a result of OEM pricing strategy alone.

Despite higher prices, we are still sustaining.

A higher double digit percentage retail pace currently than two years ago.

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

We are aligned with RV Ias recent recently released Rvs IAA forecast for calendar year 2022.

Which calls for 600.

Wholesale shipments or a growth of 4% versus the calendar year 2021 forecast of 577000 units.

On a fiscal year 2022 basis for Winnebago industries, the RV IAA forecast translates to 605000.

Wholesale industry shipments or 6% growth compared to the fiscal 2021 number of 569000 units.

As for retail.

Brian and I have mentioned several times. This morning that we expect consumer demand to remain healthy.

RV retail.

Sales for the industry and our fiscal year 2021.

We are approximately 585000 units a record number and will likely be adjusted upwards as ssi adjustments take place in the coming months.

Looking ahead, we expect that fiscal 2022.

RV industry retail sales will be strong while they will still likely fall short of the record fiscal 2021 retail results.

We fully expect that we will see industry retail sales for our fiscal 2022 period notch the second highest level of.

Industry retail sales on record in that period.

Given that outlook. It is highly unlikely that industry field RV inventories will be adequately replenished by the end of our fiscal year 2022.

Suggesting that the restocking phase will continue into <unk>.

Our fiscal 2023.

As we approach inventory normalization sometime in the future.

We've mentioned in the past that we could see that some dealers not all.

But some work on lower levels of inventory and higher returns.

In line with history as markets normal.

Normalized dealers will rationalize the quantity of OEM brands on their lots.

<unk> occurs and as general inflation dissipates in the future.

That concludes our prepared remarks this morning.

Thank you for your time and I'll now turn the line back over to the operator for the Q&A session.

Thank you as a reminder to ask a question you will need.

Press Star one on your telephone to withdraw your question press the pound key.

Our first question comes from Craig Kennison with Baird. Your line is open.

Hey, good morning, Thanks for taking my question and Mike. Thanks for the commentary towards the end there on your outlook for the industry.

You had mentioned earlier that first time buyers.

We're coming back and some were exiting the lifestyle, how would you compare that rate to.

Maybe the historical rate of first time buyers not all of whom.

Choose to stay.

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

It's probably a little bit too early to quantify a rate trend.

<unk>, new consumer either exits from the lifestyle.

Or upgrades.

Further into the lifestyle.

What I would do want to caution investors and listeners on this call.

Because of the record number of new consumer retail sales in the past 18 months. It is likely inevitable that we will see a higher gross unit number of new consumer exits at some point.

Conversely, we also believe we will see a record number.

Of new consumer upgrades to new models in the future as well.

In the last week or so.

We thoroughly canvassed many of our dealers asking the question Craig that you asked here this morning.

And we're hearing broadly that.

Is that retail demand with new consumers remains positive going into the future, meaning that our dealers believe that more new and consumers will upgrade versus exit what I can't tell you quantitatively yet is what that mix looks like and how that might differ.

In a pre COVID-19 period.

That's great. Thank you, Mike and then just as a follow up to the price increase that you had mentioned.

Due to inflationary pressure on your costs.

How to what extent are you concerned that at some point.

From a level where consumers.

Consumers say, that's too much and.

I can't I can't afford an RV and therefore, maybe some of the retail expectations.

Our embedded in the RV IEA forecast.

<unk> hi.

Craig that is.

Question as well and we get asked that regularly.

By many stakeholders within our business and again I think the answer to that is difficult to tell certainly.

We would prescribed that there is a general conviction.

Between pricing and demand over time.

<unk>.

However, with limited supplies of outdoor products available on the market.

And increased interest of consumers coming into the outdoors.

The combination of those is currently creating a sustainability of relative.

Demand.

Yes.

For our businesses.

<unk> looking to negotiate or implement rollbacks.

In some of the tariffs introduced in 2018.

That would be a good development for us in terms of reducing some cost pressures on some of our components. Conversely, if inflation dissipates over time.

And if we see retail pricing.

From dealers to consumers dissipate a bit.

We believe that you will see pricing in the market.

Again to settle at normalized, albeit at most likely a higher retail price than pre COVID-19, but it is difficult to tell how that.

Unpack the market and part of the reason is is we're seeing a shift in generational mix of consumers in the outdoors. A. Good example is the Latino or Hispanic participation in camping in.

In $2026 5 million.

Well <unk> households camped in 2020.

That is like four times greater than what it was in 2014.

And the mix of Hispanic campers as an example has grown from 2%.

Seven eight years ago to low double digits as a mix of total campers in 2020.

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

So I'm optimistic that we will not see a significant whiplash backwards.

In prices, but it's difficult to.

Answer with any.

<unk> your question for the time being.

The prices are being digested at still.

High levels of retail in the market.

Great. Thank you so much I'll get back into queue.

Thank you.

Certain question comes from Gerrick Johnson with BMO capital markets. Your line is open.

Thank you good morning can you talk about <unk>.

The availability of chassis also.

The chip shortages, we've had how is that affecting your how has that affected you and currently whats your big.

Our next one that right now.

Well good morning, Eric.

I'll take the second question first.

That depends on the day of the week. Unfortunately.

We continue to see.

Supply chain availability issues across.

Across a variety.

<unk>, so I'll apologize, but I wont single out any particular.

Material category or component category.

Because what I say this morning would be a different answer than two weeks ago and it will be a different answer two weeks from now.

I am pleased with is that our team.

A cat across the businesses.

Unfortunately, well versed in navigating these challenges along with our suppliers and working on creative solutions with the supply chain.

But also with our production strategies as well, we're actually getting better I don't know if we ever want to be perfect, but we're getting better.

<unk> teams at managing our production processes.

To be more agile.

Specifically concerning motorized chatter in the chassis and the chip shortage issues.

This is an issue we've been dealing now with the better part of the last nine or 12 months and I would say it's no dramatically.

Are different today than it was six to nine months ago.

Very strong relationships with our motorized chassis suppliers our teams are in <unk>.

Constant daily contact with them about our future forecasts and needs and Conversely, those chassis suppliers have been pretty transparent.

Note about their allocation of chassis to the respective customers in the RV industry and so we're able to really forge a production schedule.

Around our mutual forecasts and commitment.

And we continue to believe that we can.

Be competitive.

Aren't a motorized market with our lineup with both the Winnebago and Newmar brands and that we will have our fair share of motorized chassis in order to.

Compete for relevant share in the future.

Okay. Thank.

Thank you Mike.

Hi.

And our next question comes from Scott <unk> with C. L. King Your line is open.

Good morning, guys and thanks for taking my questions.

Good morning, Scott.

Mike you could talk about the motorized segment, obviously, we know fees are doing well and you've got a bunch of new products that have come out with the echo.

Maybe just talk about.

Some of the more legacy brands like <unk> and <unk>.

I know that you have a bunch of new stuff that has come out or is about to come out and talk about how they are faring in the market and how your share there.

Barry.

Yes. Thank you again Scott for the question.

I'm, assuming that question is probably more specific to the Winnebago brand of Motorhomes.

Let me just quick touch on Newmar before it gets to the Winnebago brand.

Almost all being on the call we closed on the Newmar acquisition in November of 2019 and in March of 2020, we were.

We were shutting down our factories across the company due to the pandemic.

So the integration of Newmar was really an unprecedented integration in the first year year, and a half or so because of COVID-19, and as we've said on past.

Calls the Newmar supply chain was actually one of the most impact.

<unk> AI chains.

In our last 12 months to 15 months versus the other businesses in that and Thats due to a number of reasons, but candidly some legacy.

Sourcing strategies that we are working to revise in the future to make newmar supply chain more resilient the newmar business.

That's still continuing to take significant class a share in the market both on class a diesels and on class a gas and we actually we believe they are poised to have a significantly better year in our fiscal 'twenty two period than they did in fiscal 'twenty one from a production.

And wholesale shipment consistency standpoint, so I start there because our overall motorized class a share will certainly benefit.

From Newmar, continuing to grow be healthy and especially improve on the supply chain on the Winnebago side. All of you know that our strength at least in the last five or.

<unk> has generally been more in the class B segment.

And we are fighting ferociously to hold as much shares we can versus an onslaught of new products from our.

Competitors.

We have not been overly pleased with our competitiveness in the class a.

Category.

<unk> UFC category, but that is beginning to change with the introduction of some new products specifically the journey class a diesel.

On the Winnebago branded side and the recent introduction of the Echo a class C product Thats, just receiving rave reviews, we have a significant backlog on that.

And the <unk> and we believe those two are the first of several new product introductions in the future that should stabilize and re grow winnebago branded market share in class eight and classy.

Got it and then last question.

Can you maybe just talk about how.

Order, we should look about.

Barletta as it folds into the equation here from a seasonality standpoint.

Back to the margins that we should look for and just give us an idea of any one time charges coming through.

In the first quarter.

Well I'll comment on seasonality and then.

I'll turn it over to Bryan Hughes for comments on.

Some of them are led us projected financial.

Contributions as we've communicated previously.

We are very excited about.

<unk> been on our portfolio, we closed on that business early in our fiscal 'twenty two year, so about 700.

Or eight weeks ago.

And the team is energized the business.

It remains very healthy obviously, you'll get more information in December when we.

Communicate our Q1 fiscal 'twenty two results.

Backlogs are strong retail is strong they continue to take share this season.

Seasonality of their business.

Candidly right now probably looks a lot like rvs because of the demand that they're seeing and the rate of growth in.

This sort of hyper demand environment, especially where in wholesale.

Shipments are needed to.

Meet rising.

<unk> demand from dealers for both retail and inventory.

The wholesale shipment line the seasonality is really sort of depressed across all of our businesses because of the high wholesale demand.

They will look a lot like other significant marine especially pontoon.

Cycles in the future.

But for the next probably a couple of years, they're high wholesale demand will will dampen any real seasonality effects, Brian Youre thoughts on financial expectation.

I expect good morning, Scott.

We disclose the bar, let a deal.

Part of our conference call.

Back when we announced and the sales growth that we're expecting from that business.

Just building off that really strong trends.

The <unk> team had built.

We're expecting for calendar year, 'twenty, one 'twenty $6 4 million of EBITDA.

The calendar year 'twenty, one we expect that it would grow.

Grow from there certainly in our for our fiscal year 2022.

I'd also refer people on the call here to page 26 of our earnings supplement it calls out the specific amortization.

That we're expecting related to the <unk> deal.

It amounts to $15 7 million for fiscal year 2022.

That's the full year amount and its $4 6 million of amortization in Q1, two and three and then it falls off to $1 8 million in Q4.

You asked about onetime expenses, we will call those out as part of our Q1.

The press release.

Youll be able to see very clearly.

Because we called that out as part of our.

Adjusted EPS number so we'll provide that disclosure at that time.

But obviously, we have high expectations for this business and really like to see we really like what we've seen the growth.

Yeah.

Got it that's all.

Yes.

Thanks, Thank you.

Our next question comes from Mike Swartz with twists Securities. Your line is open.

Hey, good morning, guys.

A quick quick question, maybe Mike on market share gains just broadly speaking obviously based on what you've caught.

All I have today, we've seen an acceleration maybe versus the prior several quarters, maybe just talk to what do you think is driving that acceleration in market share or is it just your.

Maybe operating better than others in the industry is there something else that we should be thinking about.

Yeah. Good morning, Mike Thanks for the question.

Called out.

Your hypothesis would probably be similar to ours.

Our teams generally believe that they are executing.

And a competitively advantaged way currently meaning.

Their product lines are sharp.

The.

The brands are the models that they have in the market have value within consumers.

That they are nurturing and strengthening their dealer relationships.

To mutually market and sell those products turn turn leads into closes.

We're working together hand in hand on.

What we call retail sold units, where consumer puts deposits down with.

Future retail delivery, those arent showing up at all yet and the Ssi data, but we feel very confident about future retail based on the retail sold numbers that each business has seen.

And yes, it does have to do to some degree.

With.

The ability to get to get the right product at the right time to the dealers when they need it.

Theres, probably been no time in the history of the RV industry, and probably the marine industry as well.

The correlation between shipment share and market share from a timing standpoint.

So tight.

So we recognize if we can deliver products at a higher rate.

To the dealers with.

The highest retail demand.

We can take advantage of.

Retail opportunities but.

We've worked as you know for many years to strike.

Yes.

Our RV position, both organically with the Winnebago brand, but with the Grand design in the Newmar brands as well and we feel very fortunate that all three of those brands are pretty healthy right now notwithstanding some of the areas I mentioned in the earlier.

The answer on Winnebago class, a and class.

Strength that we have some more work so so again.

I think the short answer is it is operational.

Effectiveness right now.

Okay, great. Thanks for the color and then maybe just.

Second question on pricing there is a lot of obviously a topic of discussion around this but I guess just from us.

Maybe more of a strategic standpoint, I mean, how are you passing through the pricing from.

From a timing perspective are you taking pricing before you see the cost increase come through or are you doing it kind of in lock step and then.

So just talk about how you are how you are passing that pricing on to the consumer is.

I guess are you price protecting your backlog will be the second part of that.

Yes.

So the answer Unfortunately to your question is it depends.

We give each of our brands.

Pretty broad autonomy and latitude.

To price their products as they.

The fit for their brands and certainly Brian and I are kept informed and updated and engaged in conversations from time to time on.

The merits of those strategies, but as my comments in the script portrayed it as a blend of price to market and price to cost we have some really innovative products in.

They seamless in the Echo we have some high demand products many of them in the Grand design line.

Newmar has got some really great.

Class a diesel products that are that are taking share. So there you are pricing more to market, where you can get value in dollars for your innovation or.

The Sonic leadership.

But we.

We probably have price more to cost in the last 12 months that at any time in my almost six years with the company and Thats just the reality of the commodities and the component costs moving at a rate.

We have trouble catching up with the times.

Your pen the projections of when they'll.

Begin to go into neutral.

<unk>.

Won't go into details but.

Many times, we have thought certain commodities, we're going to start to flatten out from a curve standpoint in terms of pricing and they break through to yet another level.

And there is no significant.

Signed yet.

Many of the costs are just going to dramatically sold out quickly.

So the answer your question on how we price it does vary by brand and by product there are times, where we can see future costs coming at us.

Based on.

And sources that we trust in terms of projection or suppliers that are transparent and what they intend to do and in those cases, we will try to take proactive action in other cases, we're chasing.

Never before have we seen suppliers come to us and implement.

Cost changes the next day.

Any cases historically, they would say hey, you have two months three months and then your prices are going up or they go up at the same time roughly every year and so we are dealing with sometimes weekly price increases and an unexpected nature and then reacting to that.

From a price protection standpoint.

Almost all of our businesses in most of their lineups are very transparent with the dealers that we're not able to price protect.

Most of the wholesale backlog.

There have been varying degrees of protection on retail sold units and that varies by brands.

That is becoming difficult to protect as well.

When we don't know what the true cost of that unit might be.

That has a retail deposit against it if we haven't even built it yet.

So it is a very very dynamic hectic pricing environment.

And I think our teams.

Teams are doing a really good job to try to again balanced price to market price to cost.

And.

And we will see how the future goes in terms of implications as one question was with demand earlier.

But we believe that we are able to grow.

<unk> market share.

Yeah.

With the unit wise with the pricing strategies, we are employing today.

Okay, great. Thank you.

Thank you. Our next question comes from Fred Wightman with Wolfe Research. Your line is open.

Hey, guys. Good morning. Thanks for the question I was hoping you could just comment on some of the Ssi data for the past few months it looks like that two year trend has been coming down.

That just due to inventory any sense for that.

How much of that is a supply driven versus maybe some delta impact so just what youre seeing at the consumer level.

Yeah.

Yeah, I think it's one it's a function of timing right with.

With every month, we pulled two years ago, you know closer to the to the present so.

We are seeing that trend as well.

The only thing I.

I meant on Fred is our retail pattern and it generally has been over performing the industry, but I tend to do this from time to time on these calls.

But as I look at our retail results fiscal year 2022 to date, so our first seven weeks.

We are still.

Cutting a very healthy double digit increase in retail units sold in <unk>.

<unk> two years ago.

So.

You know well that that that number will naturally lower over time.

Because youre going to start to see 2019 turned into 2020.

Run it at some point in terms of a two year comparison and beginning in May of 2020, we're going to start to see sort of two year comps.

Against in May of 2020 to start to be very difficult.

Because the record retail demand of the sort of the Covid period.

It will be in those two.

So I just think we're on a general glide slope.

In that direction as.

<unk> sort of Covid accelerated retail demand has moderated a little bit.

With continued low field inventories maybe.

Some slight impact of higher pricing.

Youre starting to see some of those.

Two year comps versus year over year or two years become more difficult.

So.

As we said in our script we were.

We are in one of the most unprecedented times and the outdoor industries in terms of both retail demand dealer inventory subsequent wholesale.

Those demand in backlogs and so.

My concern is that especially.

Those were the shorter term outlook. They will look at some of these barometers and over exaggerate emphasize.

The degree of apparel.

Or in.

Negativity that comes with that data.

We're seeing record levels of outdoor engagement and we believe that that bodes very well for what this industry looks like both in Rvs and also boding.

Five years to 10 years from now the next.

<unk> will continue to be.

Challenging from a comp period.

To inter.

Interpret whether.

The market is overly healthy.

We're less healthy.

We tend to take the glass half full approach that our industries are are fine.

Year.

That.

Outdoor demand.

Will sustain itself into into the future.

Great and then one quick follow up Mike when you were talking about those double digit increases for retail is that written business are actually delivered units.

Actual retail.

Registrations.

So again, we'll share full first quarter results.

For our business in December.

But as I often do on some of these calls a tease you guys with current performance.

We're continuing to see strong two year comp numbers.

<unk>.

On our business.

Perfect. Thanks, guys.

Okay.

Thank you. Our next question comes from James Hardiman with Wedbush Securities. Your line is open.

Hey, good morning, Thanks for fitting me in.

My questions have been asked but I did have a couple of very brief follow ups.

Firstly.

I can appreciate that there's a lot of nuance, but would you say that the supply chain issues are getting better getting worse staying roughly the same.

Well I would say theyre getting better for the following reason.

A lot of them in the call. This morning, we have projected a.

4% calendar shipment increase from 2021 to 2022, and a 6% fiscal year increase in industry shipments based on our fiscal period.

I mean theyre getting better.

And I've said this before our suppliers.

Right.

I mean, they're working hard theyre, taking care of their employees during these COVID-19 times.

They're doing everything they can to procure materials and manage costs.

Our industries are producing at record levels of output.

And.

<unk> or <unk> that that will continue and if you do the math on roughly 600000 units a year and a calendar year you are talking on an average 50000 units a month.

And when we've seen that number on the RV side. The 45 to 53000 units a month over probably the past six months so.

We believe that we believe that you are probably going to see consistently more 50000 unit production or wholesale shipment.

<unk> seen some of the holiday periods.

In the next 12.

<unk>.

12 to 16 months going going forward so.

So we will say so that so the net answer is it is improving.

That doesn't mean that the daily gymnastics or.

Any any.

Less interesting we continue to manage.

Routine out of stocks or late deliveries.

But I think collectively we're headed the right.

I would erection.

And just to clarify that that point about the.

4% to 6%.

Shipment increase.

Reasons to believe that that's all going to come late in the year I mean, we should expect some amount of growth in the near term or is that not.

Right.

Yes.

I can only tell you based on our production levels today.

Our plants are running at very strong levels as we speak and so I'm anticipating that our competitors are achieving some of the same and that you will you will see.

Healthy shipment.

Unit numbers in the RV industry, especially and I would imagine on the marine side as well.

<unk>.

In the next month in the months to come.

Can it get better.

In the later half of 2022.

We certainly all hopes.

<unk>.

And because of the field inventory status, maybe there is upside.

To that 600000, plus number you have the supply chain can get even more consistent but we will see.

I think the 600000 unit number or 605 for our fiscal period is a I think that's a good number.

So.

To sort of place an over under bet on for now and as an industry are all rooting for the over.

That's really helpful. And then lastly for me.

Maybe contextualize your new <unk>.

Share buyback authorization that I think it was $200 million.

Quickly you might want to work through that obviously, there was a pretty big step up in the fourth quarter with about $35 million.

I don't know if that's an indication that you think your stock is really cheap right here and youre getting opportunistic or some other reasons, but how should we think through.

Your interest in.

How quickly getting through that or sort of slow and steady wins the race.

This is Brian James.

It's a mechanism that we.

We want to have available to us as I've said in my comments, our priority is to continue to grow the business organically and inorganically.

So thats priority one we obviously want to maintain.

Our liquidity and our leverage ratio in the right range.

That's priority two and then we want to return cash to shareholders.

We've talked about the 50% increase in the dividend we executed in the healthy share repurchase we did in Q4 here.

And it's.

<unk> mechanism for us in.

We don't give a time period.

With which we expect to exhaust that $200 million, because it's obviously subject to the other priorities that we've laid out and so.

It's a it's a mechanism that we like to have available to us and we certainly will use.

Use it.

And if it makes sense to do so but in light of the other priorities that we have.

Makes sense thanks, guys.

Thanks James.

Thank you. Our next question comes from Bret Jordan with Jefferies. Your line is open.

Hi, Good morning, this is Ethan Huntley on.

On for Brett Thanks for taking my questions.

Just one here regarding the <unk> backlog it seems like units came down sort of ever so slightly sequentially, but on a dollar terms increased could you just sort of provide any color on the mix within that backlog.

Yes, good morning, Ethan I don't know if I would have anything of.

<unk> significance on that.

Constant in that segment is probably viewed for us is healthy.

You know the <unk> business has been the part of the RV segment that has been predominantly gaining the most share here for us.

In.

In the past several years.

I will be very transparent with you all on the call. This morning that some of the backlog numbers were actually taken backwards internally.

Because we do not have slots for production on some of the models that have orders.

Orders from dealers and even consumers on them and so we decided from an integrity standpoint on backlogs to actually reduce our backlog number if we did not have production slots in the future against those orders.

We are we are making zero.

Open orders in our production schedules everything Hasnt has a dealer name or even a retail name on it.

And when it when it.

Backlog order is.

Is received by US our teams are working to essentially schedule those in the future three months from now six.

Six months from now 12 months from now.

And we had several products with significant orders.

That we just could not we cannot yet find production capacity for and so we actually Unbeknownst to all of you guys. We were we took those out of the backlogs that we reported for fourth quarter because.

We felt that was the right thing to do from a from an integrity standpoint, I know there's been lots of questions about the integrity of the backlogs, but the <unk> backlogs remain strong they're predominantly Grand design, our Winnebago branded <unk> had a really strong fiscal 2021 year.

And.

Its plans.

Plans for 2022 are very robust as well so they're mix as a percentage the winnebago mix of the total segment backlog is probably growing a little bit.

But I wouldn't read too much into it.

Being relatively flat as you said.

Okay. Thank you. That's that's helpful and then just lastly.

So just sort of on the marine front here can you give any update on maybe some of the supply chain you sort of seeing similar challenges as it.

It is seen in the RV business or maybe just any sort of general commentary on that segment would be helpful. Thank you.

Youre welcome and we always have to.

Also always have to clarify that.

Before we made the barletta purchase.

And with operating our Chris.

<unk> business, we have a little bit bigger visibility into the marine supply chain and generally it is continues to be challenging as well there, but as you can imagine some of the categories of components that we struggled with a different way.

We see more challenges at times with electrical products switches.

Certain types of maybe wire harness or Luna systems.

You have different types of glasses and windshields as an example that have at times been a challenge on some of our marine products.

Saying that though there are similarities at times.

Both businesses.

<unk> furniture.

Both use certain types of resins.

For four key plastic components.

So you see some similarities in furniture is probably the one that comes to mind that has been tight for both RV and marine for some time here.

And.

But again as with my answer to an earlier question.

It really depends on the week as to what the what the the challenge of the weakest from a supply chain standpoint in that and that's similar in marine.

Thank you very much.

Yeah.

Thank you. Our next question comes from Brandon Roll with Northcoast Research. Your line is open.

Good morning, I have one brief follow up question on the.

The last earnings call you had talked about.

2020 calendar retail being up low to mid teens.

Year to date it looks like for the month of September it's up 17% or are you still.

Comfortable with that guidance and if so or if not would you be able to update your thoughts on the calendar year. Thank you.

I'm going to have to I'm going to have to reference probably a different document that I don't have in front of me for that question. So Brian I think we will get back to you on a follow up.

Steve Stuber, we will get back to you with with maybe our latest thoughts on that as you can tell we've been very focused on our fiscal 2022 year, which is under way in that period, but yes. We do have an opinion on that based on our modeling internally I just don't have that.

Sort of updated number in.

In front of me right right now.

No problem. Thank you so much.

Welcome.

Thank you we have a question from Joe at the Belo with Raymond James Your line is open.

Hey, guys. Good morning, Thanks for taking good morning.

A couple quick ones I guess first I want to go back to you.

Sure.

You gave earlier.

Terms of pricing.

And EBITDA margin.

Look at the quarter, the 12, 5% EBITDA margin.

And were there any unusual factors from a timing perspective on either cost or pricing.

If it passes that one way or another.

Well.

Joe Good morning, I'll give you my first thought on that question and then ask Brian to weigh in.

I just want to remind everybody on the call that our portfolio has been dramatically changing over the last five years, and we will likely do so in the future and what I mean by that is.

Because of some of the organic growth initiatives, and particularly improve profitability around the Winnebago branded Motorhomes segment.

Our acquisitions.

Now have four brands Grand design, Chris craft Newmar Embar letter.

Our progress on operational excellence and.

The company.

There are many reasons why our profitability has been transformed over the last five years and on a quarter to quarter basis. There certainly are some specific things in those quarters, such as product mix of recent pricing or.

That may have some influence.

And obviously the comps are always dictated.

By what was happening a year ago.

We genuinely believe that our future prospects.

<unk> sustained profitability at Winnebago industries is less a function of what's happening currently in the market, particularly as it were.

In respect to some of our pricing moves as of late but our future profitability over time will be more related to the maturation of our portfolio that we have today and the continued addition of new pieces to the portfolio.

And the advancement of operational excellence.

In terms of cost management productivity leverage synergy in.

In the future and so.

We are not satisfied with what we've achieved at Winnebago industries, yet we're very proud of the teams are awesome.

We're competing vigorously in the market and.

If we are providing strong results for shareholders to be proud of.

But we are very much focused.

You saw.

We're a fly on the wall with Brian a nice discussions with our board about our future in 2025 and beyond we have higher aspirations than how we're performing.

<unk> today, and we will employ strategies strategies and plans in the future to.

To bring those to fruition.

Ryan do you want to comment on maybe specifically the 12 and a half and some of the recent contributors to that.

Yes, I think Mike I think you covered it well in terms of the longer term performance.

We believe we like.

I'd like to also remind.

Those listening of the margin performance in total and motorized separately, obviously, we'll have the marine segment to contend with going forward and we will.

Add that third segment and the impact that it has on margins, but the total segment has consistently.

We had strong margins 13, 14, and more recently, even a little bit above that.

EBITDA margin.

On the motorized side, we've had a.

There's a long history, there, but the more recent history has shown margins in the three or four 5% range EBITDA margin.

And that took a step.

Change.

Within the last six quarters or so and now is performing as you noted in double digit territory and Thats. The combination of many things that we've done over several years, it's not just the market certainly the market right now is providing tailwind to profitability across the board.

For Oems and dealers alike.

And that has been beneficial but the longer term things that we've done.

Including things like that West Coast plant.

But down the relocation back into northern Iowa.

The several productivity initiatives that we've undertaken in northern Ireland, which we've talked about we walked away from quoting you walk away from.

From the Itasca brand as you May recall those of you who followed us for several years.

Scaled back dramatically the quoting that has helped the.

Productivity and the profitability of our dealer network.

As well as our own profitability, we are focused on those products that we know are.

Differentiated and so our mix has shifted as Mike alluded to.

And as.

As Mike said, that's our expectation for the longer term.

That will have differentiated margins because our position in the marketplace is differentiated.

And I think youre seeing.

Some of the benefits of that.

Our our last couple of year trend here.

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

Structural so if I could.

One more in on price protection.

And I want to make sure I understand we've got incremental buyer. We thought he was buying let's say a 35000 dollar travel trailer in July.

No buying.

Dollar travel trailer when it gets delivered in November.

If you have any recourse.

Uhm.

Yeah.

So I want to be careful in terms of my answer on retail price protection because it involves multiple parties primarily the dealer.

As the ultimate answer to the end consumer on whether that retail prices protected or not the dealer well engaged.

We OEM for that product as to whether the OEM will support or participate in any retail price protection that will depend on the OEM brand.

<unk>.

Potentially on the circumstances with that customer.

Historically.

Because retail sold units have been a lower percentage of our sales in some of our brands and because the time to delivery from an out of stock retail deposit to time of delivery has been a lot shorter we have tended in most of our brands to retail price protect those commitments.

With.

Our dealers ultimately, it's the dealers decision, but we have offered consistent support through the years.

That position has evolved currently because of the potential of time, it would take to deliver a retail unit to that customer.

And the potential change in.

Input costs, especially on units that may be even haven't been produced yet when that customer puts that deposit down but it will depend on the dealer it'll depend on the model. It will depend on the brand it'll depend on the time gap between when that retail deposit is put down and when that unit might be delivered.

So those are.

Daily conversations between our teams.

And our dealers are well aware of our current policies and stances from each of the outdoor businesses.

And we're having those conversations currently so I don't want to make any commitments.

About the retail price to the consumer because.

Does that ultimately is the the dealer's choice.

But as Oems, we're always going to try to be good partners with our dealers.

As we as we mutually try to manage a very dynamic environment. So again it depends answer.

Appreciate it thanks guys.

Thanks.

Thank you.

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

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

This concludes.

Today's conference call. Thank you for participating you may now disconnect.

Q4 2021 Winnebago Industries Inc Earnings Call

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