Austin Singleton: Yeah, so that’s a really good question. When you look at retail and where we sit right now and how that works, we’re able to probably be a little bit more opportunistic — not opportunistic, but optimistic versus the OEMs because we have the inventory that’s already on hand. So, they’re having to replenish inventory where we have too much. So we sell through that inventory where they need to build boats today. And so as that kind of shifts, we have plenty of inventory. I mean, I think, Anthony, if I’m not wrong, if we just didn’t order another boat from here on out, we’d have plenty of inventory to sell through probably a good chunk of the summer.
Anthony Aisquith: Correct.
Austin Singleton: And so when you look at that, that’s why we’re a little optimistic is because we have all the inventory on hand. So now all we got to do is perform and sell where an OEM is like, okay, well, I don’t have anywhere to put my inventory. And so with that they can’t build it if they don’t have anywhere to put it. So I think that it’s just been a timing and a lapse that’s kind of happened that caused the OEMs maybe not to have that oh crap moment as much as it’s a lag behind us. And so we feel we’re in a good spot. When you talk about individual dealers and the promotional activity, I don’t think that, we’ve been in the position that we’re in right now today in, I mean, almost two decades, where you have floor plan interest costs in double digits for the majority of the dealers.
Not only is that a big expense, margins have contracted. The floor plan curtailments pre the great ‘08/’09 weren’t really enforced, so that wasn’t an outflow of cash flow. As we’ve gone through this winter every month, dealers are out there having to cut checks for curtailments. Now that’s marking the inventory to market, which is a good thing, it’s a discipline thing. The industry needs that. But they’re not used to that, they’ve never seen that, and they’re not really sure how to navigate that. And so when you look at that and say, okay, where do they sit today, it’s probably a pretty scary point for a large majority of the industry. They’re looking at something that they’re not used to having to deal with and they got to shift what they’re doing to navigate this.
And so, that’s kind of — it’s just a tough spot for some dealers, I imagine, out there that are coming through going, okay, where’s all my money? And that’s going to go back to what we’ve kind of been waiting on, I think, a little bit is for the dealers that navigated ‘08/’09, sure, they can navigate this. I’m not being — saying that they’re doomed. It’s going to be hard, and now is the right time. Maybe it is the right time to throw in the towel or to look for that exit strategy.
Craig Kennison: Great. Hey, thank you.
Operator: The next question comes from Joe Altobello with Raymond James. Please go ahead.
Joe Altobello: Thanks. Hey, guys. Good morning. Just to follow up on that comment you made, Austin, about non-current inventory in the industry. How long do you think it will take for your competitors to kind of work through that non-current?
Austin Singleton: Well, I mean, it really just depends on how strong this spring early selling season is. I think we’re doing, we’re seeing good things at the boat shows. Things are going really good at the boat shows for us. I imagine you’ve got several other dealers out there that are performing very well at the boat shows. People are coming through the door and they’re buying boats. And so as that inventory kind of pushes through a good early spring selling season, we’ll accelerate that. If you have weather or pockets that aren’t as good, that can change things. And so, that’s a crystal ball I just don’t have. If you just wanted, Anthony probably has a better gut at that than me, I’d take a swag at it and say, that once we get to model your change going into 2025, that lag point of June and July, I think we should be in pretty good shape unless there’s something out there that we’re not seeing from a macro standpoint. Anthony, you got any feeling on that?
Anthony Aisquith: No, I think that we’re heading that way. And we have a plan in place to ensure their inventory is right.
Jack Ezzell: Yeah, I think the only thing I would throw in there, Joe, is we had gotten some indication that dealer inventory is around 38 weeks. And so if manufacturers cut 20%, 30%, let’s say 25%, right, if I just say, okay, well, then that reduces, and retail’s flat, does that reduce it back down 25% and that gets them closer to that 26 weeks on hand, that two turns that historically the industry has seen? That sounds like some math you can get around that that would make sense assuming this season is a flat year.
Joe Altobello: Okay, that’s very helpful. Maybe just to follow up on that, you talked about normal seasonality several times this morning. Maybe help us understand what you mean by normal seasonality because your business has changed a little bit since COVID. So as we think about the next three quarters, for example, how do we think about the cadence for the year from maybe a sales and EBITDA perspective?
