Austin Singleton: Yes, we were probably going to end up holding tight. So there’s more clarity in the macro. Like we’ve all said through the — our opening remarks and answering the questions. I mean, both shows were good. We’re hearing that not only the boat shows that we’re in, but we’re hearing that from other people in the industry. They’re doing shows that were not in Milwaukee, some of the other bigger shows have been pretty good, and sediment remain strong. But we’re still dealing with, a big inflated, in our opinion, new vote margin out there. So, that needs to normalize somewhat. And I think right now, just with the overall macro, for us to hold steady for the next, 90 120, maybe 180 days, and kind of watch and see how this unfolds.
And we’re watching it on a daily basis. I mean, things can change pretty quick. But I don’t think we’re in any hurry to go out there and do a deal. Just to do a deal. I think it’s prudent for us to continue to build cash on the balance sheet. But we are going to be opportunistic, if something that’s just too good at the right price comes along. But getting back into our normal cadence is not something that we’re ready to do just yet.
Drew Crum: Got it. Okay. Thanks, guys.
Operator: Thank you, and one moment for our next question. And our next question comes from the line of Michael Swartz with Truist. Your line is open, please go ahead.
Michael Swartz: Hey, guys, good morning. Just a few follow-up questions on the guidance and it doesn’t look like you took down your comparable store outlook too much in the update here. Give us a sense of how you’re thinking about the bottom up build with that comparable store outlook in terms of your industry outlook. Today, maybe we’re versus where it was when you first gave guidance, pricing, mix, shared gains, anything of that nature that you can kind of help us with?
Jack Ezzell: Yes, I would say if I think about, the December numbers that a December quarter, SSI data, that may and everything that’s come out kind of related to that probably has been a little bit more negative than it was as of September. I think that all the feedback that we’re seeing, like Austin mentioned, with respect to for traffic and lead generation, et cetera, has been positive. So, we’re trying to be, cautiously optimistic. And so I think that that leads us to outperform in the industry, I think it’s going to be I think you’ll start to see unit volumes level off. And, I think price will still be a factor, but much too much less degree than, the recent years.
Michael Swartz: Okay. That’s helpful. And then I think you made, Austin, you made the point that you expect new boat margins to spin, which is I think what most people have expected? Can you give us a sense of, as it pertains to your guidance, maybe what your how you’re thinking about that now maybe relative to pre COVID or prior to — or versus maybe some of the elevated margins we’ve seen in the mid-20s, the past two years or so, like? How should we actually think about boat margin this year as it pertains to the guidance?
Austin Singleton: Yes, I’ll let Jack speak to that. I mean, we threw around a bunch of numbers, I don’t know what he ended up putting in the model to kind of get us to the number, what we what we ended up settling on, or what he ended up settling on in the model. But me Anthony and Jack, once we got done with the Atlanta Boat Show, spend a lot of time talking about, Lauderdale, what we’ve seen since Lauderdale, through these, these first boat shows in January. And one thing that was pretty evident is there was a lot of promotional pricing for manufacturers, a lot more than we expected right off the bat, we expected them to kind of ease into that which in a way is good, because it allowed us to maintain our margins, and use those promotions as the discount.
But that’s like phase one. And so it just continues to go from there. As I’ve said many times, a third of the dealer network out there has zero to offer the consumer but price, and they usually sell they can usually get a sell on price the first time, and then they never sell that customer another boat because they don’t have anything else to offer them. So you’ll continue to see that a road promotional pricing from the manufacturer use usually leads the way which that doesn’t work anymore than these, just say these lower side, dealers will start discounting on their own. So they’ll start working on their margins. And we have to kind of follow suit. So when you start thinking about, let’s say, 30 feet down, 35 feet and down, that’ll move a lot quicker than what Anthony was speaking about earlier in his opening remarks about the bigger stuff that still got the longer build times.
It’s still got a backlog. So we’ll start to see that a road. But Jack, I don’t know what you ended up putting into the model. What you ended up selling?
Jack Ezzell : Yes, I think is, as you look at, how we ended up this quarter, obviously, as you work through the quarters throughout the year, we’ll see margins fluctuate quarter-to-quarter as you sell different types of boats, different parts of the year. But I think that we’re definitely discounting and bringing margins down a bit. Again, not drastically, but certainly taken a haircut on them. And again, that’s what we’ve seen to-date. And as that’s where we’re modeling it.
Michael Swartz: Okay.
Jack Ezzell : The other thing I’ll point out, right is just to reemphasize the point we’ve made a handful of times, despite this haircut on the new boat margins, we’re seeing used boat margins hold up well, we’re also seeing that our expansion into parts and service, those expansions that higher margin business, really supporting our overall margin and keeping it that 30%. And so I think the likelihood of us staying at that 30% plus are in and around there, 29, 31 is a likely range.
Austin Singleton : Yes. One of the thing real to, we’ve said this a lot in the past, boat shows are our largest — our lowest margin business. That’s why we’ve never really liked it. I mean, you got to be competitive. You got to go in there and you make it worth the money in an effort that you spent on that. So you ended up coming out of a boat show with some of your lowest margins. So we got some needy deals still in the pipeline, that are coming in, that are sold. We’re still working as hard as we can to get every dollar out in consumer. And that’s one of the things that, I would say that the takeaway was, I mean, we’ve got to get back into the true discipline of selling and not just we’re taking. And we’re really working hard with the team and the teams really stepped up.
I think the whole entire sales staff saw coming out of the boat shows that hey, it’s not like it used to be, we have to get back to be the elite sales team that we were and we’re going to step up our game, because nobody’s going to beat us. But that this quarter coming out of those boat shows that’s always been our lowest margin business.
Michael Swartz: Okay. And then just one last question for me, maybe for Jack. I think you said inventory was at $500 plus million in the quarter, is there any way to look at just in terms of the new boat inventory? Maybe what that looks like on an apples-to-apples or same-store basis relative to pre-COVID? Just to give us a sense for excluding acquisition?
Jack Ezzell : Yes. We’ve dug into, we’ve tried, I don’t have a same-store inventory number per sequential. And, again, we’ve been looking at weeks on hand. We’re currently at 16, 17 weeks on hand, which is influenced a little bit by acquisitions. But if I go back to 18, 19, which is a little influenced by acquisitions, we were at 24 weeks. So it’s — again, we’re at that seasonal peak, right. So you’ll see it at the highest as we — from now into February, March, a lot of times, it depends on whether as to exactly when that spring season kicks off, and the volumes we get out. But I think we’re close to the peak, and then we expect to see things go out. But I think on a comparable basis. I think the other piece, I think that you’re getting that too, right is there’s a good chunk of our inventory related to parts and service business. And I don’t have that number in front of me, but I’ll work to get that out to you and maybe get it into some of the future releases.
Michael Swartz: Okay, wonderful. Thank you.
Operator: Thank you. And one moment for our next question. Our next question comes from the line of Craig Kennison with Baird. Your line is open. Please go ahead.
Craig Kennison : Hey, good morning, guys. Thanks for taking my question. Just wanted to follow-up on Hurricane Ian, I’m wondering if there’s a way for you to look at markets affected by the hurricane versus markets that looked were unaffected by that catastrophe and maybe parse the same-stores sales environment in that context?
Austin Singleton : Yes, I mean, we looked at it a little bit. I looked at it more on the, I guess, I’ll say the either side and those stores were down about $2 million, EBITDA and it’s — you had a lot of — we’re still carrying a lot of expenses, paying our people, rebuilding. So I think it’s certainly contributed to it. But again, I didn’t want to go through a lot of effort to try to say, oh, the hurricane caused this much revenue, because it just isn’t something that is easy to track. And then as we move forward, right, it gets even more complicated as to when the customers come back in the market, and that replenishment cycle hit. So, it certainly is impacting the numbers, like we said many times, if we met miss a truckload of deliveries the last day of the month, that could also a big boat or two can also impact same-stores a couple points.
Craig Kennison : Good stuff. Great, thanks a lot.
Austin Singleton : I mean, we’re seeing.
Operator: Thank you.
Austin Singleton : Sorry, Anthony.
Anthony Aisquith : No, I was just saying we’re seeing a lot of consumers in that as markets, fill that docks and things like that. So there’s still a lot of business to be had there.
Craig Kennison : Very good. Hey, thank you, guys.
Operator: Thank you. And our next question comes from the line of Griffin Ryan with D.A. Davidson. Your line is open. Please go ahead.
Griffin Ryan : Yes. Thanks, guys. I was just wondering if you could talk about the availability of used boats, and what the current demand looks like for them?
