Jaime Katz: And then actually, I have one follow-up. I think there is some debt coming due later this year. Can you guys talk about whether you’re thinking about renewing that, paying it down? Or does that sort of depend on what the capital allocation opportunities are?
Bob Mack: Yes. So the $500 million 360 core term loan comes due late in the fourth quarter. We have rerolled that the last couple of times it’s come due. Certainly, I believe that option will be available if we choose to take it. But we’ll look at that as we get through the year and decide where do we think the best use of the capital is to either pay that off or to refinance it and use the money for CapEx, share buyback or targeted M&A. But that will unfold as the year progresses.
Operator: The next question is from Gerrick Johnson with BMO Capital Markets. Please go ahead.
Gerrick Johnson: This morning, I’d like to ask Bob. Can you quantify the floorplan interest impact? What was that contra as a percent of gross sales how did it look compared to last year? What was the change there? And maybe the same for discounts and promotions, how they impacted gross net?
Bob Mack: Yes. So in terms of the finance side of — the retail finance side impact last year versus this year was pretty minimal. On the wholesale side the total was, again, I’d say a few million — about $5 million.
Gerrick Johnson: Okay.
Bob Mack: $5 million greater
Gerrick Johnson: Okay. All right. Great. And since we’re always talking about the snowmobile shift, maybe could you quantify what the amount was that shifted from 4Q to 1Q? Would make our math a little easier.
Bob Mack: I would think about it in terms of a few thousand sleds.
Operator: The next question is from Sabahat Khan with RBC. Please go ahead.
Sabahat Khan: You talked a little bit about the boats earlier. I was just hoping you could provide a little more comment on just kind of the share situation in the pontoons. And just generally speaking, how do you expect that market to evolve over the course of 2023. Do you think it is as much or less or more dependent on the macro backdrop, some perspective on maybe boats in general and specifically the pontoon side.
Mike Speetzen: Yes. I mean, look, I think we expect that there’s probably going to be some challenges. I mean the opportunity for us was really getting inventory back up at the appropriate levels. Obviously, the SSI data, you can digest that, but pontoons were down in the 30% range. On a relative basis, I feel really good about where we’re at. I mean, the work that’s been done to bring Godfrey up over the last couple of years and be on a pretty consistent trajectory to gain share. The work that’s been done there is now being applied to Bennington, and we saw that coming through in the March data, although there’s obviously a number of states that haven’t reported. We did see Bennington back in a share gain position, which was really encouraging.
So we’re going to run the business relative to what’s going on from a broader market perspective. But I think whether it’s just pontoons or even including the deck boat brand Hurricane, we’re in a really good position to gain share this year, right? We’ve lost share over the last couple of years in the Bennington brand. It’s been largely at the lower end of the market. The high end of the market for us has been very strong and very strong from a share standpoint. So the opportunity is really for us to go reinvigorate some of those lower-end boats and be in a more competitive position, and we feel like we’ve got that laid out pretty well.
Sabahat Khan: Okay. Great. And then just one quick one. This graph on the right side of Slide 6. I just want to understand kind of the detail of the dealer inventory here in units. It looks like it’s back about in line with kind of pre-pandemic levels. But I guess is this adjusted for sort of days inventory, I may not be reading it, right? But just thinking a higher level of sales post-pandemic, is it just dealers are thinking a lower absolute level of inventory makes sense at this point? Or how should we think about inventory in days?
Mike Speetzen: Yes. I mean it’s tough because each of the business is in a different spot. I mean, as I mentioned, our RANGER business is still below where we think an optimal level would be. But the point that we made in the prepared remarks about the fact that relative to 2019, which is really probably the best baseline that we’ve got before the impact of the pandemic that inventory level is down about 20%. And broadly speaking, we see that as probably closer to optimal, meaning we don’t believe we’re going to have to carry near as much as we have in the past. And that’s a generic statement because there’s going to be some areas where you’ve got to carry a pretty similar level of inventory. But with the ability to deliver product quickly and as I mentioned around some of the presold stats, there’s still going to be a desire as people walk in to want to put more of a customized touch to the vehicle.
And through our factory choice offerings and with a more stable supply environment, we should be able to do that for consumers and be able to get vehicles in their hands on a relatively quicker basis than we have historically. So I think long-winded way to say that the inventory levels are going to be lower than where they were before the pandemic, and we think we’re probably closer to where we should be right now.
Sabahat Khan: All right. Great. If I could maybe squeeze just quick one and just a bigger picture one. Obviously, your press release out yesterday on kind of a new electric offering. As you think about the development of that entire side of your business, is that macro dependent? Is that something you only continue if the macro holds in? Or is that something because of the longer-term opportunity you’ll continue to invest in regardless of what happens with the macro backdrop here over the next, call it, 1 to 2 years?
Mike Speetzen: Yes, I’d say my answer to this is not just specific to EV. It’s strategy. I mean making sure that we’re investing in the long term for this business is absolutely essential. And given the ambiguity Bob, myself and our business unit leaders are being very cautious about where we’re adding costs into the business. But we’re not compromising on making sure that we’re pushing the strategic agenda forward, which obviously includes the investments we’ve got around electric. But there’s a lot of other great things from a technology as well as product development standpoint that are going on. And the key for us is making sure that we’re managing the business in a very surgical manner so that we’re not starting and stopping and then we keep our strategy execution on a pretty consistent cadence.
Operator: The next question is from Xian Siew with BNP Paribas. Please go ahead.
