Michael Albanese • The Benchmark Company, LLC

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President & CEO Danny Rivera clarified that Take 5 hires from a broad, non-certified labor pool and trains them internally, so it faces different dynamics than the franchise brands like Meineke, which require certified technicians. He noted that franchisees are adept at managing their respective labor forces and there have been no recent material changes. He declined to provide specific retention numbers.

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President - RV, Jeffrey Rodino, confirmed that RecPro offers a good view into a growing aftermarket. He clarified that the majority of their aftermarket products are for the upgrade and refurbishment of existing units, rather than being primarily tied to new unit attachments.

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An executive responded that the growth is believed to be driven by strong retail demand for affordable housing. They noted that the manufactured housing (MH) industry has been particularly robust, as there has long been insufficient capacity to meet the underlying demand in that market.

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President & CEO Bryan DeBoer explained the new vehicle guidance adjustment was an industry-wide recalibration based on H1 results and more difficult comps in July due to the prior year's CDK event. For Pinewood, he outlined a phased rollout starting with a few stores by year-end, 15-25 stores in 2026, and a full rollout in 2027-2028, which will drive future SG&A improvements.

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CEO Brett McGill and CFO Mike McLamb agreed that this divergence is unique compared to past downturns like the financial crisis, where boating activity also declined. They believe the current environment is an uncertainty-driven purchase delay, not a lack of interest. McGill confirmed his belief in 'real' pent-up demand, citing direct customer feedback about their intent to buy once the economic outlook stabilizes.

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Executive Michael McLamb explained that while Florida performed well and lifted the average selling price, all regions showed good growth. He described the superyacht business as "very solid and resilient," citing strong Mediterranean bookings. On capital allocation, Executive William McGill noted they are being "much more prudent" with M&A, focusing on integrating existing businesses and developing synergies.

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Executive Michael McLamb explained that after closing about 10 duplicated locations in recent quarters, there isn't significant room for more closures. Current expense initiatives are focused on line-by-line reviews of costs like marketing and T&E to offset inflation. Executive Bill McGill stated that aggressive promotional activity from manufacturers and dealers will continue through the winter boat show season to right-size inventory levels and aging across the industry.

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CFO Bruce Beckman reported an improvement in the Saltwater segment, especially in Florida, which had been down significantly in Q2. He clarified that the segment's performance improved to align with the overall market trend rather than rebounding to growth, effectively returning to a more normalized pattern.

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CEO Steven Menneto clarified that favorable product mix was the primary driver of the ASP increase, as price hikes have been modest, in the low single-digit range. He anticipates the mix benefit will moderate in the second half of the year. He added that the near-term focus will be on managing promotional levels to address affordability headwinds, rather than implementing significant price increases.

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CEO Philip Singleton confirmed that market share gains are primarily in the premium segment, where the company predominantly operates. He explained that the promotional environment is indeed strategic, with aggressive discounting focused on non-current (model year 2024 and older) inventory to clear dated stock. Singleton noted that margins on current year models are healthier and expects overall new boat margins to improve as aged inventory is sold off.

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CFO Bryan Hughes explained the increase was due to two factors. First, the revitalization of the Winnebago Towables business has led to a transitory rise in warranty costs to address historical quality issues. Second, the Grand Design business saw its warranty expense ratio increase slightly above historical norms to address specific quality campaigns, following several years of unusually low expense levels.

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CEO Michael Happe noted some chatter about rising boat insurance costs in parts of Florida but has not seen a material issue for their business or on the RV side. He confirmed that total marine unit deliveries were slightly positive year-over-year in Q1, driven primarily by Barletta, but described overall volume as "pretty steady" rather than showing significant growth.

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