Jack Weisberger

Jack Weisberger inquired about the decline in the parts and services segment, seeking details on the underlying business, and asked about the M&A environment and how pausing the dividend impacts the company's pursuit of deals.

Answer

Matthew Wagner, CEO and President, attributed the decline to reallocation of internal work and outlined plans to expand service capabilities through tech training, a new service CRM, and streamlined parts processes with manufacturers. Brett Andrus, SVP and Investor Relations, stated that the M&A environment leans towards distressed assets, and the company remains prudent, prioritizing debt repayment over aggressive M&A, with one small acquisition planned for March.

Jack Weisberger inquired about the factors driving the content per unit increases in powersports and the progression of attachment rates. He also asked for an update on the aftermarket business, specifically where growth is most prominent across segments and what aspects are exceeding expectations, particularly concerning RecPro.

Answer

President Jeff Rodino stated that attachment rates in powersports continue to grow favorably across the utility platform, which is a significant driver of business growth. Regarding the aftermarket, he noted that many SKUs have been added to the RecPro site, initially focusing on RV products, then expanding to marine and powersports. He highlighted that two-thirds of the year-over-year increase in aftermarket sales came from acquisitions, with RecPro being a major contributor, and the initiative is progressing well.

Jack Weisberger asked for an update on the drivers behind the content per unit increases in powersports and the progression of attachment rates. He also requested an update on the aftermarket business and RecPro, specifically where growth is most evident and what is exceeding expectations.

Answer

Jeff Rodino, President, explained that growing attachment rates across the utility platform are a significant driver of powersports growth. Regarding the aftermarket, he noted that many SKUs have been added to the RecPro site, initially heavily RV-focused, then expanding to marine and powersports products. He mentioned that two-thirds of the year-over-year aftermarket sales increase came from acquisitions, with RecPro being a major contributor.