Brunswick Corporation (NYSE:BC) Q3 2021 Earnings Conference Call October 28, 2021 11:00 AM ET Company Participants Brent Dahl - Vice President, Investor Relations Dave Foulkes - Chief Executive Officer Ryan Gwillim - Chief Financial Officer Conference Call Participants Kevin Heenan - JPMorgan Xian Siew - Exane BNP Paribas Mike Swartz - Truist Joe Altobello - Raymond James James Hardiman - Wedbush Securities Fred Wightman - Wolfe Research Anna Glaessgen - Jefferies Craig Kennison - Baird Joe Spak - RBC Trist ...

Brunswick Corporation (NYSE:BC) Q2 2021 Earnings Conference Call July 29, 2021 11:00 AM ET Company Participants Brent Dahl - VP, IR Dave Foulkes - CEO Ryan Gwillim - CFO Conference Call Participants James Hardiman - Wedbush Securities. Xian Siew - Exane BNP Paribas Scott Stember - CL King & Associates Fred Wightman - Wolfe Research Anna Glaessgen - Jefferies Kevin Heenan - JPMorgan Mike Swartz - Truist Joe Altobello - Raymond James Operator Good morning, and welcome to Brunswick Corporation's Second Quarter ...

Financial Data and Key Metrics Changes - First quarter net sales increased by 48% year-over-year, with operating earnings on an adjusted basis rising by 116% [22][23] - Adjusted operating margins reached 17%, and adjusted EPS was $2.24, marking the highest for any quarter on record [22][23] - Free cash flow usage was $23 million, significantly improved from $144 million in Q1 2020 and $159 million in Q1 2019 [22][23] Business Line Data and Key Metrics Changes - Propulsion business revenue increased by 47%, benefiting from strong demand and market share gains across all customer channels [23][24] - Parts and Accessories segment revenues rose by 52%, with adjusted operating earnings up by 83% [24][25] - Boat segment sales increased by 44%, achieving adjusted operating leverage of 31% and margins of 10.9% [26][27] Market Data and Key Metrics Changes - International sales were up 42%, while U.S. sales increased by 47% [19] - The main powerboat segments reported retail gains of 34% in the first quarter, with outboard engine unit registrations up by 21% [20][21] - Retail demand remains strong, with dealer orders received with customer names attached approximately three times higher than the same time last year [21] Company Strategy and Development Direction - The company aims to satisfy outboard engine demand and expand market share, particularly in dealer and international channels [33] - Focus on optimizing the global operating model in the Parts and Accessories segment, leveraging advanced battery technology and digital systems [33] - The Boat segment will continue to improve operational excellence and launch new products while refilling pipelines in a robust retail environment [34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to perform well for the rest of the year, citing robust consumer demand and operational execution [32] - The company anticipates U.S. Marine industry retail unit demand to grow mid to high-single-digit percent versus 2020 [28] - Despite challenges in supply chain and labor conditions, the company has managed to keep production plans on track [17][18] Other Important Information - The company has been recognized by Forbes as one of the Best Employers for Diversity for the second consecutive year [9] - The 2020 Sustainability Report highlighted the lowest recordable incident rate in company history [10] - The company plans to spend $250 million to $270 million on capital expenditures to support growth initiatives [31] Q&A Session Summary Question: How did the company achieve significant production increases in Q1? - Management attributed the production increase to hiring 1,000 new employees and ramping up production across all businesses, mitigating supply chain disruptions [40][41] Question: How sustainable are the margin expansions? - Management believes margins are sustainable due to increased volume, fixed cost management, and new product introductions at higher gross margins [42][44][45] Question: What is the retail market outlook as the company moves through April? - Retail demand remains strong, with early season starts in northern markets driving significant sales [49] Question: What is the strategy regarding Freedom Boat Club acquisitions? - The company selectively repurchases territories with high growth potential and is successfully integrating Brunswick boats into the Freedom fleet [56][57] Question: How does the company view the marine market outlook with low inventories? - Management believes the unconstrained retail market potential is double-digits, but acknowledges supply constraints will impact inventory levels [62] Question: What are the plans for capital deployment and M&A? - The company plans to maintain share repurchases and debt repayments while remaining flexible for larger M&A opportunities [66]

Financial Data and Key Metrics Changes - For the full year 2020, net sales increased by 6% and adjusted operating earnings rose by 9% with adjusted operating margins finishing at 13.3%, which is 40 basis points higher than 2019 [17] - In Q4 2020, net sales were up 27%, while operating earnings on an adjusted basis increased by 59%, resulting in an adjusted EPS of $1.32, up 61% from the prior year [18] Business Line Data and Key Metrics Changes - The Propulsion segment saw revenue increase by 33% in Q4 2020, with strong demand across all product categories, particularly in controls and higher horsepower outboard engines [19] - The Parts and Accessories segment's revenues increased by 27% in Q4 2020, with adjusted operating margins of 15.6%, up 280 basis points compared to the prior year [20] - The Boat segment's revenues were higher by 20% in Q4 2020, with operating margins increasing to 9.2%, a 190 basis point increase compared to Q4 2019 [20] Market Data and Key Metrics Changes - Full-year sales increased in most regions, with international sales up 10% and U.S. sales up 4% [13] - Canadian sales grew by 19% in Q4 2020, with anticipated growth in 2021, while Europe delivered strong propulsion growth [14] Company Strategy and Development Direction - The company aims to satisfy outboard engine demand and expand market share through new product introductions and increased production capacity [32] - The Parts and Accessories segment is focused on aftermarket sales, with expectations for mid single-digit organic net sales growth in 2021 [33] - The Boat segment is expected to see top line growth of more than 30% in 2021, with a focus on improving operational performance and refilling pipelines [36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in executing the strategy and delivering strong shareholder returns in 2021 despite uncertainties in the operating environment [8] - The company anticipates U.S. marine industry retail demand to increase by low to mid single-digit percent in 2021, with revenues projected between $4.75 billion and $5 billion [25] Other Important Information - The company generated record free cash flow of $629 million in 2020 and ended the year with $587 million in cash [24] - The company plans to continue share repurchases and is targeting $300 million in free cash flow for 2021 [30] Q&A Session Summary Question: Retail market expectations for 2021 - Management noted leading indicators show elevated retail demand, with financing applications up significantly, suggesting a strong start to 2021 [45] Question: Wholesale production expectations - The company expects to produce around 39,000 units in 2021, matching retail demand, with potential increases in subsequent years [46] Question: Impact of new OEM contracts - Management indicated that the full impact of new OEM contracts would not be realized until the 2022 model year [49] Question: Supply chain tightness - Management acknowledged some supply chain risks but stated that these have not materially affected operations at this time [52] Question: Capacity expansion impact on other segments - Adding boat capacity will have a material impact on the engine and parts and accessories businesses, but no significant new investments are needed for Mercury [54][57] Question: Cash flow and M&A opportunities - The company plans to allocate around $100 million for M&A in the coming years, with a focus on strategic acquisitions [71]

Brunswick Corporation (NYSE:BC) Q3 2020 Earnings Conference Call October 29, 2020 11:00 AM ET Company Participants Chris Dekker - VP, General Counsel and Corporate Secretary Dave Foulkes - CEO Ryan Gwillim - CFO Conference Call Participants James Hardiman - Wedbush Securities Scott Stember - CL King Craig Kennison - Baird Eric Wold - B. Riley Securities Joe Altobello - Raymond James Gerrick Johnson - BMO Capital Markets Mike Swartz - Truist Securities Brett Andress - KeyBanc Capital Markets Inc. Shawn Colli ...

Brunswick Corporation (NYSE:BC) Q2 2020 Earnings Conference Call July 30, 2020 11:00 AM ET Company Participants Brent Dahl - Vice President Dave Foulkes - Chief Executive Officer Ryan Gwillim - Chief Financial Officer Conference Call Participants James Hardiman - Wedbush Securities Randy Konik - Jefferies Scott Stember - CL King Joe Altobello - Raymond James Eric Wold - B. Riley Tim Conder - Wells Fargo Securities Craig Kennison - Baird Operator Good morning, and welcome to Brunswick Corporation's Second Qu ...