Winnebago Industries, Inc.

Good day and thank you for standing by. Welcome to the third quarter fiscal 2022 Winnebago Industries Financial Results 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 1 on your telephone. Please be advised that today's conference is being recorded. If you require any further assistance, please press star 0. I would now like to hand the conference over to Steve Stuber, Vice President of Investor Relations. Please go ahead.

Good morning, everyone, and thank you for joining us today to discuss fiscal 2022 third quarter earnings results. I am joined on the call today by Michael Happy, President and Chief Executive Officer, and Brian Hughes, Senior Vice President and Chief Financial Officer. This call is being broadcast live on our website at investor.wgo.net. and a replay of the call will be available on our website later today. The news release with our third quarter results was issued and posted to our website, along with the earnings supplement 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 security 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 Happy. Mike?

Michael Happy Thank you, Steve, and good morning, everyone. We appreciate the time you are investing today to hear about our record-breaking third quarter results. I will start the call by summarizing our performance during the quarter, then pass it to Brian Hughes to cover our financial results in more detail. I will wrap up with a few closing remarks before we open the line for your questions. We have spent the last six years at Winnebago Industries transforming our enterprise portfolio. Today we have five premium outdoor brands and seven different businesses operating in two large outdoor recreation industries and in multiple market segments which we believe have long-term increasing secular growth potential. As a more diversified organization, We are driving higher levels of operational excellence internally, which is leading to sustained, stronger gross margins, and we continue to deliver tremendous value externally to end customers centered around our golden threads of quality, innovation, and service. Our strategic financial and cultural foundation at Winnebago Industries has continued to elevate and improve each of the last six years. We are committed to running a high quality, disciplined and resilient organization, regardless of the market conditions which present themselves. Throughout this specific fiscal year 2022, our team at Winnebago Industries has executed extremely well, delivering consistently strong operating results and gaining market share in several key large segments, including towable RVs and pontoon boats. Our team is focused on doing well by our customers and doing good for our communities. I am incredibly proud and grateful of all our team members. We sustained our fiscal year 2022 momentum during the third quarter, driving record results by taking full advantage of fulfilling on our RV order backlog and continued strong consumer demand in our growing marine segment. We delivered record third quarter net revenues of $1.5 billion, which represents growth of 52% over last year. and a growth rate of 41% on an organic basis. Our RV unit sales were up approximately 7% compared to last year, which is particularly notable since the third quarter of fiscal 2021 was during the height of the pandemic-driven demand spike. our retail results also continue to outpace the industry, gaining share across both of our RV segments and pontoon boats and growing our overall pipeline of loyal customers. More specifically, on a fiscal year-to-date basis, our RV retail market share is 13.2% or plus 70 basis points versus last year. In the marine segment, Barletta recorded another strong quarter. growing its retail market share in pontoon boats to 6.6%, which is 1.6 percentage points ahead of last year on a trailing three-month basis through April 2022. We are incredibly pleased with the performance and integration of the Barletta business since the close nine months ago. It has exceeded expectations. This overall affinity for our brand's also enabled us to continue taking well-considered pricing actions to offset inflation during the quarter, which was a significant contributor to our record top-line performance. Our business unit teams remain focused on partnering with our key suppliers to creatively manage continued cost pressure. and we frequently use the full scale and collaboration of our enterprise via our strategic sourcing function to further manage supply chain constraints. Smart pricing actions may remain an important lever in the future for us to offset higher materials and component costs and manage our margins going forward. But we are equally focused on managing input costs and discretionary SG&A. While we remain confident in the resiliency of our brands, we are being extremely mindful of any impact those actions have on our ability to continue gaining market share. In terms of profitability in our fiscal third quarter, we also saw year-over-year improvements across our segments. This came in the face of previously mentioned supply chain related cost pressures and disruptions we are still experiencing in various degrees across our portfolio, which I will talk about more in a moment. The broad-based improvements are entirely due to the incredible execution by the entire Winnebago Industries team. Their execution kept our operations running efficiently without sacrificing quality in service. As always, operational excellence will continue to be a primary focus of ours moving forward. As I have discussed in previous quarters, in this constantly evolving macro environment, the supply chains for each of our segments are experiencing varying degrees of disruption. and in turn impacting dealer inventory levels in diverse ways. Inventories in our towables RV segment have returned to normalized levels as parts supply stabilized and our second and third quarter production output meaningfully addressed our backlogs. While motorhome RV and marine field inventories continue to remain below our targeted levels. The supply chain for our marine and motorized segments are most acutely impacted by disruptions currently, and dealer inventories are the most constrained in these businesses. While we will absolutely demonstrate production discipline in our towables RV businesses and look to match output with dealer turn targets and retail demand, both of our motorized RV businesses and our two marine businesses have further runway to carefully drive increased shipment revenue in the short term. Responsibly producing and maintaining appropriate field inventory levels remains a high priority for us and for the health of our channel partners. And we are collaborating closely with our dealer partners to ensure they have the mix that they desire. I have confidence that the world-class Winnebago Industries team will rise to the challenge as they always have. Overall, we are incredibly proud of our performance this quarter. We delivered responsibly for our dealer partners and in consumers. Our record results and share gains show that our business strategy is still relevant and working, while our team continues to navigate in the face of a continuously difficult time. secular, and macroeconomic environment. With that, I will turn the call over to our Chief Financial Officer, Brian Hughes, to review our fiscal 2022 third quarter financials in more detail. Brian.