Ryan Gwillim: And then I guess, lastly, on the capital strategy side. I mean if we needed to Craig, we could take CapEx down to maintenance levels, which is 30%, 35%, which that starts at $100 million to $125 million. I’m not saying we would want to but that’s something we could do. Obviously, our cash generation and our ability to convert working capital has been proven to be pretty strong this year, and I would anticipate next year. So in your scenario, we would go into even more cash generation, buckle down mode, and we’ve proven our ability to do that just because we don’t have a whole lot of other fixed obligations to service at this time of our cost of capital, cost of debt being relatively low.
David Foulkes: Without belaboring this, Craig. It was great, but it was an interesting question, I think. We will finish this year if we hit our $9 EPS will be 10% on EPS below last year, but we’ve been about 10% up on 2021. This will be our second best year ever in market conditions that are less than ideal. So I think we will continue to perform.
Craig Kennison: That’s really helpful. Thanks guys.
Operator: Our next question is from Jaime Katz with Morningstar. Please proceed.
Jaime Katz: Hi, good morning. Could you guys talk a little bit about the impetus for the new retail financing partnership? I know you just mentioned that it was due help consumers through this period of time. But I’m wondering if it also implies that maybe other retail financing partners are getting a little bit more cautious and are maybe changing their tune in lending currently?
David Foulkes: No, it doesn’t imply that at all. I think we have been in the retail financing, we have a business called Blue Water Finance. So we’ve been in the retail financing kind of arena for a while. This is really an integrated digital finance solution that is just much easier and quicker for consumers to access. So it’s embedded in a website. You can figure a boat, you can immediately get not only the boat cost but also approval for – or at least provisional approval for financing that would move through to the dealer. So and it allows us to have more flexibility with promotional finance offerings, obviously, at the moment in the current environment, we’re offering discounts on purchase price and other things, option allowances, those kinds of things.
But this is a new lever for us to pull if we see that a consumer is most cautious because of interest rates versus the potential criteria then this gives us another option. So yes, nothing to do with lender availability, everything to do with giving ourselves a better toolkit and giving our consumers a better experience through the process of acquiring boat.
Jaime Katz: Excellent. And then can you just speak to new boaters in the market and your ability to continue to track them in this sort of environment? Has the mix of purchasers or participants been changing at all in the last six months or so? And sort of what are you expecting going forward?
Dave Foulkes: Actually, I’ll be honest with you. I don’t have an updated kind of data set on new boaters, but we can go find that. I would tell you, though, that Brunswick brands over index towards attracting new boaters. And interestingly, not only in our value brands like Bayliner, even in our premium brands. And I think the reason – part of the reason for that at least is brand recognition. If you own three of the four best known brands in the U.S. and you’re a new boater, it’s kind of we’re an obvious choice. We’re the top of every list of potential boats in whatever category you want to buy a boat. So I think brand strength, new products are always going to mean that new boaters less familiar with the marketplace are going to gravitate to our brands.
Ryan Gwillim: And in addition, Freedom, Freedom is such a good gateway for new boaters, new and returning boaters, boaters that have maybe been out for a decade or more, Jaime. And so that we continue to see really steady membership at Freedom, despite what is obviously a bit of a turbulent time in the market in the overall economy. So all of those things really lend itself to continuing to find ways to bring new boaters in.
Jaime Katz: Great. Thanks for the color.
Operator: Our next question is from Joe Altobello with Raymond James. Please proceed.
Joe Altobello: Thanks. Hey guys. Good morning. I guess, first question for you, Ryan. Obviously you were hesitant to call $9 in EPS floor for next year, understandably, given all the uncertainty. But you said in the past that you felt like $8 is a reasonable recession floor. Is that still your thinking?
Ryan Gwillim: Hi, Joe. Yes, we still stand very much behind those $6 and $8 cases. I think those give a really nice background into what – how we perform in a market situation that obviously we’re kind of seeing ourselves in the market is almost down 30%, 35%. So yes, I don’t think there’d be a whole lot of changes to our thinking on the $8 case. I would say again, Engine P&A, some good lights there and back to kind of steady growth, Navico continuing to be improved, a strong capital strategy and then kind of steady boat and propulsion as they work through market dynamics. All of those things were embedded into those plans. And I think we would be very comfortable with those still.
Joe Altobello: Okay. Helpful. And maybe in terms of dealers and how they’re thinking about ordering and demand for next year. When do you think they’ll get enough information to start impacting orders? Is it Miami? Is it Palm Beach?
Dave Foulkes: It’s a range, Joe, to be honest, it depends what brands and dealers you’re talking about. Obviously, Fort Lauderdale is going on right now for the next few days, which is premium brand – premium kind of saltwater fiberglass focused. But towards the end of the year, early year shows like Toronto, Chicago, Minneapolis, all in January would be important for the aluminum market. Dusseldorf also at the end of January for the European market, which is mainly a fiberglass market, not so much aluminum market. And then in mid-February of course we have Miami, which is the next big show so it’s really progressive this year. We’re going through Genoa, Paris, Can, all those kind of things. It’s a pretty steady stream of late season shows and early season shows at the moment.
Joe Altobello: Okay, so it should be pretty early in calendar 2024. Let me know.
