Drew Crum: Got it. Okay. And then just maybe a housekeeping item. Can you tell us where maintenance, repair, storage and T&A revenue ended up for the quarter and the year? And on a related note, as you think about adjusted gross margin and its impact on fiscal ’24, do you see this line sustaining in the mid-30s range or is it reasonable to assume that it slips a little bit year-on-year? Thanks.
Michael McLamb: Yes, good questions. Yes, so on a revenue mix perspective, so, new and used boat sales were around 75% of our mix for Q4, but for the full-year, they’re down to around 72%. So the higher-margin businesses actually have grown as we expected they would do around 28% for all of fiscal 2023. And then on your last point about margins, I did not comment as to what do we really think margins are going to do for 2024, but we do think product margins on the full-year basis will moderate some, as they did in the fourth quarter, the quarter we just ended. But we think overall we’d still say consolidated margins are going to be in that mid-30% range. I realize mid as a range of numbers, but we’ll be in the mid-30% range for 2024.
Drew Crum: Okay.
Michael McLamb: We do expect growth in finance and insurance, service, other higher-margin categories that we have within our numbers, which is traditionally what’s happened over time.
Drew Crum: Yes. Okay. Very helpful. Thanks, guys.
Michael McLamb: Thanks, Drew.
Operator: Thank you. Our next question comes from Joe Altobello with Raymond James. Please go ahead.
Joe Altobello: Hi, guys. Good morning. Appreciate for taking question. I guess, first, I wanted to follow up, Mike, on your commentary there regarding margins. With respect to promotional activity, where do we stand today versus 2019? I mean it seemed like things heated up quite a bit during the summer. So would you expect that to continue? Or has your premium category has been a little bit more immune to some of those promotional pressures?
Michael McLamb: I would comment that the promotional activity seems to be back in the industry at reasonable levels, probably still not quite as aggressive overall. There are some categories that are certainly back to historic times. But I’d say in general, promotional activities have been back now for sure in the last two quarters, starting maybe in the March quarter. A lot of new model innovations continue to come out by all these different manufacturers. And that really helps preserve margin as well because you’re introducing new products and new innovations, that’s really helped as well.
Joe Altobello: Got it. And maybe just a follow-up on that. In terms of the credit environment, are you seeing lenders getting a little more cautious with respect to consumer loans? And have you seen the percentage of cash buyers in your business pick up at all?
Michael McLamb: Good question, Joe. We get that several times a year. And really, the way the banks look at the creditworthiness of the buyers really hasn’t changed. Obviously, the rate environment has changed. There was a period in this year where we certainly saw the percentage of cash buyers ticking up. But really, the last couple of quarters, it seems like the public maybe is getting — they don’t like the rate, but a little more accustomed to the rates perhaps and the percentage of cash buyers is receding, still a little higher than it would have otherwise been, but receding.
Joe Altobello: Got it. Thank you.
Michael McLamb: Thanks Joe.
Operator: Thank you. Our next question comes from Brandon Rollé with D.A. Davidson. Please go ahead.
Brandon Rollé: Good morning. Thanks for taking my question. Just a quick one on your higher margin businesses. Could you talk about your outlook for growth in some of your higher-margin categories throughout fiscal year ’24?
Michael McLamb: Just the outlook for growth. So generally, when you have relatively lower same-store sales growth, which is what our forecast is, it gives those higher-margin businesses a chance to catch up, quite frankly. And over the last three or four years, we’ve had some pretty good same-store sales growth in different periods, where the base of the revenue got to a certain level, but those other businesses have been trying to catch up. And when you have back-to-back years like 2023 and 2024 with relatively low same-store sales growth, finance insurance, service, brokerage, other portions of our store operations that are in the higher-margin businesses have a chance to catch up, not to mention the ability of Northrop & Johnson and Fraser and IGY and the other businesses we own too also continue to grow in 2024.
Demand in the service side of the business seems really strong still. A lot of people, parts and accessories. And then Marina revenue and Marina slips at all of our locations, it’s hard to find a slip, and rates are holding strong.
Brandon Rollé: Great. And just one follow-up. You guys are reporting from the Fort Lauderdale show, any early takeaways from what you’ve seen in terms of demand? I know it just started yesterday, but any early takeaways?
William McGill: Yes. Great traffic at the show for the first day. A little breeze helped the weather, so that’s good. But yes, it generally seems good. That very first day is always hard to get a good full read until you get deep into the weekend. But generally, I think it’s a good deal at the show.
Brandon Rollé: Great. Thank you.
William McGill: Thanks Brandon.
Operator: Thank you. Our next question comes from Eric Wold with B. Riley Securities. Please go ahead.
Eric Wold: Thanks. Good morning. Just a couple of questions. I guess, one, you talked about your M&A pipeline being robust. Maybe talk about where you’re seeing opportunities? Obviously, not getting specific, kind of what areas you’re looking at? What is the competitive environment for those acquisitions? I know it’s getting — it’s increased recently, but what are you seeing or competitive-wise when you’re looking at targets? And maybe who else is involved there? Is there a lot of other parties you tend to still be the only one at the table?
