Financial Data and Key Metrics Changes - In the fourth quarter, net sales were $160 million, a decrease of $38 million, or 19%, compared to the same period in 2023 [27] - New unit sales declined by 7% or approximately 92 units, while average selling price for new units grew by 3% [25][26] - Pre-owned retail unit sales, including consigned vehicles, were down 23% or 268 units during the quarter [26] - SG&A expenses were $53 million for the quarter, up from $46 million in the prior year, primarily due to higher transaction and legal expenses [28] - Adjusted EBITDA loss was $24 million compared to a loss of $11 million in the prior year period [28] Business Line Data and Key Metrics Changes - On a same-store basis, there was a decline in both new and used unit volume, partially offset by improved gross profit per unit sold [16] - Total gross margin was 19% in the fourth quarter compared to 21% in the third quarter, but excluding inventory and LIFO adjustments, it was 23% [17] - Finance and Insurance (F&I) revenue was over $6,000 per unit, up 3% relative to the third quarter [17] - The company launched a consignment program, with 76% of units acquired from customers during the fourth quarter being consignment [21] Market Data and Key Metrics Changes - The company’s new inventory is comprised of 75% model year 2025 units and 25% prior model year units, with over 77% being towable products [19] - Motorized inventory decreased by 44% from the prior year's period due to aggressive inventory management [20] - Economic and demand headwinds, along with hurricane season, negatively impacted fourth quarter and full year results [22] Company Strategy and Development Direction - The company is focused on executing a turnaround plan to reshape its operations and strengthen its balance sheet [8] - A comprehensive recapitalization was completed, including a $30 million common equity investment and the sale of dealership assets [9][11] - The company is rightsizing its dealership portfolio to improve operational performance and reduce debt [10][12] - A letter of intent was signed to divest three locations, which will add cash to the balance sheet and reduce geographical redundancy [13] Management's Comments on Operating Environment and Future Outlook - Management believes they are near the bottom of the market down cycle and expects future retail demand for RVs to return to historical levels [22] - There are substantial opportunities for improvement across all functional areas of the dealerships, including inventory and service [23] - Management remains optimistic about the company's prospects and is committed to driving improved results for stakeholders [29] Other Important Information - The company completed the sale of one dealership asset for $8 million and agreed to sell seven additional dealerships for $65.5 million [11] - The company reduced floor plan debt by $11 million and term loan debt by $6 million during the quarter [29] Q&A Session Summary - No questions were fielded following the prepared remarks, and participants were encouraged to refer to the earnings release and SEC filings for further information [6]

Winnebago Industries (WGO) Q2 2025 Earnings Call March 27, 2025 10:00 AM ET Company Participants Ray Posadas - Vice President, Investor Relations and Market IntelligenceMichael Happe - CEO, President & DirectorBryan Hughes - CFO and Senior VP of Finance, Investor Relations & Business DevelopmentTristan Thomas - Equity Research AssociateMichael Swartz - Director & Equity ResearchPatrick Buckley - Associate Conference Call Participants Joseph Altobello - MD & Senior AnalystScott Stember - Executive Director & ...

Core Viewpoint - Thor Industries, the largest RV maker globally, experienced a significant decline in stock value following disappointing financial results, with shares dropping nearly 14% over the past week [1] Financial Performance - For Q2 of fiscal 2025, Thor reported net sales of just over $2 billion, reflecting a nearly 9% year-over-year decline [2] - The company posted a GAAP net loss of $551,000 ($0.01 per share), contrasting with a profit of $7.2 million in the same quarter of fiscal 2024 [2] - Analysts had anticipated earnings of $0.08 per share, but net sales exceeded their expectations of $1.97 billion [3] Guidance and Market Conditions - Thor cited the challenging economic environment as a headwind, with CEO Bob Martin emphasizing a focus on controllable factors such as product offerings and dealer relationships [4] - The company revised its full fiscal year guidance, projecting net sales between $9 billion and $9.5 billion, down from a previous estimate of $9.8 billion, and lowered per-share earnings estimates to a range of $3.30 to $4.00 from $4.00 to $5.00 [4] Market Outlook - Despite the disappointing results, Thor remains a significant player in the RV market, with ongoing consumer interest in travel experiences suggesting potential for future growth [5]

Financial Data and Key Metrics Changes - The company recorded revenue of $1.2 billion for Q4 2024, an increase of 9% compared to the previous year, driven by an 8% increase in new unit sales and an 11% increase in used unit sales [20][21] - Adjusted EBITDA loss improved to $2.5 million from a loss of $8.9 million year-over-year, primarily due to accelerated used inventory procurement and new unit market share gains [23] - The company ended Q4 with approximately $288 million in cash, including $80 million in the floor plan offset account, and $339 million in used inventory net of flooring [24] Business Line Data and Key Metrics Changes - New vehicle gross margin was 15.2%, primarily due to lower promotional support compared to the prior year, while used vehicle gross margin improved to 18.7% as fresh used inventory was brought back into the system [21] - Good Sam achieved revenue growth of 1% with nearly $95 million in EBITDA, indicating solid performance in product services and other core dealer service revenues [22] Market Data and Key Metrics Changes - The company ended 2024 with a record combined new and used market share of 11.2%, with expectations to reach 12% in early 2025, selling over 130,000 units, up from 121,500 in 2024 [10][11] - The company anticipates retail demand for the RV industry to remain relatively flat year-over-year, estimating around 350,000 retail sales, with wholesale shipments slightly higher to support restocking [98][102] Company Strategy and Development Direction - The company aims for 10% to 15% unit growth in used RVs and low single-digit growth in new RVs, with a focus on improving total gross profit and achieving a 600 to 700 basis point improvement in SG&A as a percentage of gross profit [10][23] - The management is focused on judiciously reestablishing the used business while maintaining dominance in the RV market, with plans to close an additional four to six dealership acquisitions by the end of spring [18][90] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the health of the broader RV industry, citing good foot traffic and lead volume, and noted that consumer interest in RVs is returning [42][46] - The company expects explosive EBITDA growth in Q1 2025 compared to the prior year, driven by gross margin improvements and significant SG&A reductions [13][117] Other Important Information - The company raised $330 million in growth capital in October and amended its RV floor plan facility, adding $300 million of runway [9] - Management indicated that the ten-year treasury yield's stabilization could lead to retail finance rate relief for customers, allowing them to afford more units [13][30] Q&A Session Summary Question: What is driving the new ASPs? - Management indicated that ASPs typically start lower at the beginning of the year and rise as the selling season progresses, with a correlation to the ten-year treasury yield affecting retail rates [28][30] Question: How much of the SG&A improvement is from profit growth versus cost savings? - Management noted that some improvement comes from increased gross profit, but significant adjustments to the cost structure were also made to achieve the targeted SG&A improvements [32][34] Question: What feedback has been received from the show season? - Management reported positive feedback from show season, with good foot traffic and lead volume, indicating a healthy demand for RVs [42][46] Question: What is the outlook for retail demand in 2025? - Management anticipates retail demand to be relatively flat year-over-year, estimating around 350,000 retail sales, with wholesale shipments needing to be slightly higher to support restocking [98][102] Question: What are the expectations for new and used gross margins in 2025? - Management expects new gross margins to be in the range of 13.5% to 14% and used gross margins to exceed 19% for the year [85][86] Question: How many dealerships does the company plan to add in 2025? - Management expects to add six to seven dealerships in 2025, focusing on capital allocation and growth opportunities [90][91]