Financial Data and Key Metrics Changes - Fiscal first quarter revenue was $381 million, a 1% increase from $376 million in the prior year [11] - Gross profit increased to $89 million from $84 million year-over-year, with gross profit margin expanding to 23.5%, an improvement of 110 basis points [12] - Net loss for the quarter totaled $8 million, or $0.47 per diluted share, compared to a net loss of $14 million or $0.81 per diluted share in the prior period [12][13] Business Line Data and Key Metrics Changes - New boat sales decreased by 6% compared to the prior year, while pre-owned boat sales increased by 24%, driven by higher unit sales and average unit price [11] - Service parts and other revenue grew by 10% compared to the prior year, indicating strength in the distribution segment and service operations [11] Market Data and Key Metrics Changes - Inventory across the industry is normalizing, with total inventory decreasing to $602 million from $637 million year-over-year [14] - The company expects same-store sales to be flat due to brand rationalization headwinds, despite anticipating to outperform the industry, which is expected to be flat to down low single digits year-over-year [15] Company Strategy and Development Direction - The company is focused on simplifying its business by selling certain distribution segment assets that are no longer core to its long-term strategy [6] - Strategic brand initiatives completed last year are expected to positively impact gross margins throughout the year [6] - The company aims to reduce leverage and enhance financial flexibility through the sale of distribution assets [7][15] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about maintaining fiscal year 2026 guidance ranges, expecting total sales between $1.83 billion and $1.93 billion [15] - The company anticipates that expanding profitability will be a top priority, with expectations for new boat margins to improve by 100 basis points over the year [9][15] - Management noted that the early boat show season has shown stable customer sentiment, with less price resistance observed [8] Other Important Information - The company recognized a $7 million impairment charge related to certain distribution assets classified as held for sale [12] - Total liquidity was approximately $46 million, including $32 million in cash and cash equivalents [14] Q&A Session Summary Question: What is the shift seen among buyers in the pre-owned market? - Management indicated that better availability of pre-owned boats is driving the performance, with more trades being taken in [18] Question: How does the company view year-end net leverage and inventory outlook? - Management expects leverage to decrease to almost 4x by the end of the September quarter and under 4x by year-end, with inventory being managed according to retail conditions [22] Question: What are the observations from the boat show season? - Management noted that the boat show season has been flat, but consumer enthusiasm remains strong, with better-than-expected margins [24][25] Question: Are there any impacts from recent storms on operations? - Management stated that there has been no significant impact from storms, as the affected areas do not have substantial representation for the company [40][41] Question: Is there evidence of the monthly payment buyer returning? - Management indicated that most customers finance their purchases, but the company primarily deals in the premium space, which is less affected by lower-end consumers [60][62]