TAMPA, Fla. – Lazydays Holdings Inc. (Nasdaq: GORV) today announced its third quarter 2024 earnings results.
Ron Fleming, Interim CEO, said, “Despite challenging financial results during the third quarter, which continued to be impacted by economic and other industry-wide demand headwinds, we are very encouraged by the completion of last week’s recapitalization transactions. These transformative transactions have fortified the company’s financial foundation and operational focus and mark a turning point for Lazydays as we position ourselves for a stronger, more agile future. With a streamlined balance sheet, enhanced liquidity, and a simplified dealership network, we are better equipped to navigate the evolving RV landscape and deliver on our commitment to industry leadership.”
Total revenue for the third quarter was $213.5 million compared to $280.7 million for the same period in 2023. Total revenue for the nine months ended September 30, 2024 was $722.7 million compared to $884.7 million for the same period in 2023.
Net loss for the third quarter was $17.7 million compared to net loss of $5.6 million for the same period in 2023. Adjusted net loss, a non-GAAP measure, was $16.2 million compared to adjusted net loss of $2.9 million for the same period in 2023. Net loss per diluted share was $1.37 compared to net loss per diluted share of $0.48 for the same period in 2023. Adjusted net loss per diluted share, a non-GAAP measure, was $1.27 compared to adjusted net loss per diluted share of $0.29 for the same period in 2023.
Net loss for the nine months ended September 30, 2024 was $83.9 million compared to net loss of $2.3 million for the same period in 2023. Adjusted net loss, a non-GAAP measure, was $62.1 million compared to adjusted net income of $2.2 million for the same period in 2023. Net loss per diluted share was $6.24 compared to net loss per diluted share of $0.49 for the same period in 2023. Adjusted net loss per diluted share, a non-GAAP measure, was $4.73 compared to adjusted net loss per diluted share of $0.07 for the same period in 2023.
See Reconciliation of Non-GAAP Measures for additional details regarding our adjusted results of operations.
A conference call is scheduled for at 8:30 a.m. ET today that will also be broadcast live over the internet.
The conference call may be accessed by telephone at (877) 407-8029 / +1 (201) 689-8029. To listen live on the Lazydays’ website or for replay, visit https://www.lazydays.com/investor-relations.
EDITOR’S NOTE: The following is the latest list of RV recalls compiled by the National Highway Traffic Safety Administration (NHTSA). Per strict NHTSA protocols, manufacturers will next notify its dealer partners of the recall notice. Each notice will include details of the affected vehicles as well as the appropriate remedy.
Winnebago Towable is recalling 1,211 2022 Micro Minnie FLX and Hike travel trailers. The mounting hardware may come loose, allowing the solar panel to detach. Dealers will install butyl adhesive tape between the solar panel and mounting bracket, free of charge. Owner notification letters are expected to be mailed Dec. 15. Owners may contact Winnebago customer service at 1-574-825-5280 Ext. 5220. Winnebago’s number for this recall is CAM0000040.
Forest River Inc. is recalling 498 2024-2025 Catalina and Aurora travel trailers. Please see the recall report for a complete list of models. The solar panel wiring may be incorrectly wired, causing the wiring to short and overheat. Dealers will rewire the solar panel to the solar controller, free of charge. Owner notification letters are expected to be mailed Dec. 18. Owners may contact Forest River customer service at 1-574-825-4995. Forest River’s number for this recall is 300-1863.
Forest River Inc.is recalling 2,898 2021-2025 Impression fifth wheel travel trailers. The solar charge line, front LED hitch light, and the pass-thru light may have been wired to the incorrect mini breaker. Dealers will correct the wiring, free of charge. Owner notification letters are expected to be mailed Dec. 18. Owners may contact Forest River customer service at 1-574-367-3314. Forest River’s number for this recall is 83-1862.
Vancraft LLC is recalling 32 2002-2006 Campervan vehicles. Incorrect seat belt anchor hardware was used on the rear bench seats. As such, these vehicles fail to comply with the requirements of Federal Motor Vehicle Safety Standard number 209, “Seat Belt Assemblies.” Dealers will replace the seat belt anchor hardware, free of charge. Owner notification letters were expected to be mailed Nov. 11, 2024. Owners may contact Vancraft customer service at 1-888-381-7333.
VANCRAFT LLC is recalling 273 2002-2006 Campervan, 2014-2023 SWB Campervan, LWB Campervan, 2023 LWB Campervan Pro, 2023-2024 Rover, Rover XL, and Alltrek vehicles. The vehicles are missing the Occupant and Cargo Carrying Capacity (OCCC) label and the altered certification label. As such, these vehicles fail to comply with the requirements of Federal Motor Vehicle Safety Standard numbers 110, “Tire Selection and Rims” and 49 CFR Part 567, “Certification.” Vancraft will mail labels, free of charge. Owner notification letters were expected to be mailed Nov. 18. Owners may contact Vancraft customer service at 1-888-381-7333.
VANCRAFT LLC is recalling 241 2014-2023 SWB, LWB, 2023 LWB Pro, 2023-2024 Rover, Rover XL and Alltrek campervans. The reinforcement hardware, mounting hardware, and seat belt anchor bolts in the rear bench seating system may fail under load. As such, these vehicles fail to comply with the requirements of Federal Motor Vehicle Safety Standard numbers 207, “Seating Systems” and 209, “Seat Belt Assemblies.” The remedy is under development. Owner notification letters are expected to be mailed in November, 2024. Owners may contact Vancraft customer service at 1-888-381-7333.
PITTSBURGH – “I wanted to create a simple way for RV owners to maintain the proper angle on a wastewater line for effective drainage,” said an inventor, from Inverness, Fla., “so I invented the Sewer Support Slide. My design helps avoid backups, constant adjustments, and possible spillage.”
The invention provides angled support for a recreational vehicle’s wastewater line. In doing so, it eliminates the need to lay the sewer line on the ground or rely on unstable makeshift supports. As a result, it increases stability, and it allows for effective draining action. The invention features an adjustable design that is easy to use so it is ideal for the owners and users of recreational vehicles.
The original design was submitted to the Hollywood/Miami sales office of InventHelp. It is currently available for licensing or sale to manufacturers or marketers. For more information, write Dept. 23-HAD-296, InventHelp, 100 Beecham Drive, Suite 110, Pittsburgh, PA 15205-9801, or call (412) 288-1300 ext. 1368. Learn more about InventHelp’s Invention Submission Services at http://www.InventHelp.com.
AUSTIN, Texas – Aquasana, a leading maker of high-performance water filters for the home, announced today its Claryum Direct Connect under sink water filtration system has been named a winner in Good Housekeeping’s 2024 Best Kitchen Gear Awards. Designed for easy, DIY installation and maximum contaminant reduction, the fast-flowing Claryum Direct Connect filter was awarded in the Cutting-Edge Essentials category. More information about Aquasana’s under sink filter and the full list of winners can be found at goodhousekeeping.com/kitchenawards2024
“We’re truly honored that our Claryum Direct Connect under sink filter has once again received a Good Housekeeping Best Kitchen Gear Award, for the second consecutive year,” said Derek Mellencamp, general manager at Aquasana. “We know that Americans’ concerns at the tap are at an all-time high as water quality issues like lead, PFAS and microplastics are on the rise across the country. Installing a water filter is an easy and effective way to instantly improve the overall health and wellness of any home.”
“We selected Aquasana as a second-time winner because this system connects underneath your sink to deliver filtered water whenever the cold water is turned on, reducing 78 contaminants. It’s great not to have to think about filtering water.” – Nicole Papantoniou, Good Housekeeping Institute
According to Aquasana’s recent sixth annual Water Quality Survey, more than three-quarters (76%) of Americans believe drinking clean, filtered water aids in living a longer and healthier life, and 77% agree that access to clean, trustworthy tap water at home is important for their health. This comes as concerns over the toxic “forever chemicals” known as PFAS in drinking water climbed 233% from last year, and the number of U.S. adults who cited microplastics as their number one tap water contaminant of concern spiked 350% from 2023.
“Making your life easier is a theme among this year’s award winners,” said Nicole Papantoniou, Kitchen Appliances and Innovation Lab Director at the Good Housekeeping Institute “We selected Aquasana as a second-time winner because this system connects underneath your sink to deliver filtered water whenever the cold water is turned on, reducing 78 contaminants. As one tester put it, it’s great not to have to think about filtering water.”
Available nationwide for as low as $124.99 at Aquasana.com, Aquasana Claryum Direct Connect is a DIY-friendly under sink water filtration system that is being recognized for its easy installation and high-performance filtration. Ideal for homeowners and renters, the direct connect filter is simple enough for most anyone to install but still filters 78 contaminants, including lead, “forever chemicals” PFOA and PFOS, microplastics, pesticides, pharmaceuticals, asbestos, chloramines, chlorine and more – that’s 15 times more contaminants than the leading pitcher filters. A significantly more economical and eco-friendly alternative to bottled water, Claryum Direct Connect’s long-lasting replaceable cartridges ($70) last for six months or 784 gallons – the equivalent of 6,250+ plastic 16-ounce bottles.
Unlike most under sink systems, there’s no need to install a second faucet for filtered water, solving the dilemma of having to either sacrifice the sink’s built-in soap dispenser or drill a second hole in the countertop. Simply connect the streamlined filter to any cold-water line – whether in the kitchen, bathroom, laundry room, dorm room, or wet bar – for faster access to clean, healthy drinking water that flows through the existing faucet, no plumber required. The Claryum Direct Connect is also compact with all filtration taking place in one filter, making it ideal for saving under sink cabinet space in an RV or smaller kitchen; it is highly effective while using a smaller footprint.
“At Aquasana, we’re committed to improving the health and wellbeing of U.S. households with cleaner, healthier and better tasting drinking water,” added Mellencamp. “Claryum Direct Connect was designed specifically to provide easier access to better quality drinking water, and receiving this prestigious award two years in a row is incredible validation.”
Aquasana’s Claryum filtration technology is tested and certified to NSF/ANSI Standards 42, 53 (includes P473), and 401 for the reduction of more than 96% of chlorine and chloramines, 99% of lead, and 95% of PFOA/PFOS. It is also certified to reduce mercury, chlorine-resistant cysts, herbicides, pesticides, VOCs, pharmaceuticals, and more.
ELKHART, Ind. – Patrick Industries, Inc. (NASDAQ: PATK) today announced that on Nov. 14, 2024, its Board of Directors approved an increase in the amount of its quarterly cash dividend on its common stock to $0.60 per share from $0.55 per share. The dividend is payable on Dec. 9, 2024 to shareholders of record at the close of business on Nov. 25, 2024.
Additionally, the Board authorized an increase in the amount of the company’s common stock that may be acquired over the next 24 months under the current stock repurchase program to $200.0 million, including the $72.9 million remaining under the previous authorization.
Andy Nemeth
“The increase in our quarterly cash dividend and upsize in our share repurchase authorization indicate our commitment to a balanced capital allocation strategy, our confidence in the long-term earnings power of our business, and our ability to generate free cash flow,” said Andy Nemeth, chief executive officer of Patrick. “We believe our ability to grow shareholder value over time will be a reflection of our team’s ability to capitalize on organic and strategic opportunities as we maintain our dedication to serving our valued customers at the highest level. We remain committed to maintaining a strong balance sheet as we focus on driving profitable growth across our Outdoor Enthusiast and Housing markets.”
About Patrick Industries, Inc.
Patrick (NASDAQ: PATK) is a leading component solutions provider serving the RV, Marine, Powersports and Housing markets. Since 1959, Patrick has empowered manufacturers and outdoor enthusiasts to achieve next-level recreation experiences. Our customer-focused approach brings together design, manufacturing, distribution, and transportation in a full solutions model that defines us as a trusted partner. Patrick is home to more than 85 leading brands, all united by a commitment to quality, customer service, and innovation. Headquartered in Elkhart, IN, Patrick employs approximately 10,000 skilled team members throughout the United States. For more information on Patrick, our brands, and products, please visit www.patrickind.com.
ReFresh RV, the Omaha, Neb.-based company with a proprietary solution to revitalize and protect RV exteriors, will introduce a dealer-direct program this month.
Company president and co-founder Jason Grimm told RVBusiness that the timing is ideal as dealers look for more ways to boost income when new and used RV sales are depressed.
Until now, ReFresh was available only through company employees and subcontractors, severely limiting the number of customers the company could accommodate. “As word spread,” Grimm noted, “we were getting calls from RV owners across the country and from dealers asking if we could train their techs to do it for themselves.”
Under the new Dealership Participation Program, the ReFresh team will work on location with dealer service personnel, providing 3-4 training days. In addition, the program includes detailed, written procedures to cover every aspect of the process, ongoing tech support, and enough cleaners, restorers, protective coating, and tools to complete eight average-sized RVs.
“We can turn a dull, highly oxidized trailer or motorhome into a new or better-than-new looking RV with no buffing and little labor,” Grimm explained. “Our transformative solution restores color and cleans stubborn marks and old caulking without buffing. Plus, we will offer a three or five-year warranty.”
Grimm’s 30-year background in the automotive detailing business led him to start the company and collaborate with a lifelong friend, a “genius in chemistry,” to develop a nano ceramic-fortified clear coat that resists scratching and stain and keeps the exterior looking factory new.
Once trained, Grimm estimates, a service tech can complete a restoration in 5-8 hours, depending on the size of the RV, turning a profit of about $1,200 to $1,300 per unit. In addition, by running used units through the ReFresh process, dealers can expect higher margins. All told, the dealership will recoup its investment in just a handful of jobs.
The company will also support dealers with a marketing program for the RV aftermarket and through print marketing materials and referrals.
“RV owners definitely have pride in ownership,” commented Grimm. “With ReFresh RV, dealers can help deliver that new RV look while making a handsome profit.”
TAMPA, Fla. – Lazydays Holdings, Inc. (NasdaqCM: GORV) announced that it will release its third-quarter fiscal year 2024 results to the public immediately after market close on Monday, Nov. 18, 2024. The company will also file its SEC Form 10-Q on the same day.
On Friday, Nov. 14, Lazydays announced a series of transformative transactions designed to provide the company with a significantly strengthened financial foundation and a more focused dealership portfolio. These transactions, which include a comprehensive recapitalization and certain asset sales, will result in meaningful reductions in the company’s debt, interest and preferred stock dividend payments, substantial added cash to the balance sheet, and an improvement in the underlying earnings power of the business, according to a release.
‘TransformativeTransactions’ Highlights
Lazydays agreed to sell seven dealerships, including real estate where applicable, and issue common stock to certain indirect subsidiaries of Camping World Holdings, Inc. (Camping World) for a combined $65.5 million, subject to conditions.
Lazydays agreed to sell one additional dealership asset to a separate buyer for $8 million, subject to conditions.
Lazydays closed a $30 million common equity PIPE at $1.03 per share with clients of Alta Fundamental Advisers and Coliseum Capital Management (collectively, the “PIPE Investors”).
Lazydays plan to launch a $25 million rights offering at $1.03 per share, allowing all its common stockholders (other than the PIPE Investors and Camping World) to purchase common stock at the same price as PIPE Investors, subject to the U.S. Securities and Exchange Commission declaring a registration statement on Form S-1 effective.
Lazydays agreed to exchange all outstanding convertible preferred stock for common stock at $1.03 per share, eliminating our preferred stock liquidation preference, preferred dividend requirement and other preferred stockholder rights, subject to conditions.
Lazydays executed an amendment to the credit facility with the company’s lender group led by Manufacturers and Traders Trust Company (M&T Bank), providing significant financial flexibility.
The transactions will collectively result in $65 million reduction of debt, elimination of $68 million preferred stock liquidation preference, and $16 million reduction of interest and preferred dividend payments.
Pro forma for the transactions (excluding proceeds and shares from the proposed rights offering), Lazydays is expected to have $35 million of cash on the balance sheet, debt of $61 million (excluding floor plan financings), and 119.5 million shares of common stock outstanding.
Tuesday’s conference call access information is below. A replay will be available on the Lazydays website at: www.lazydays.com/investor-relations
Lazydays has been a prominent player in the RV industry since our inception in 1976, earning a stellar reputation for delivering exceptional RV sales, service, and ownership experiences. Our commitment to excellence has led to enduring relationships with RVers and their families who rely on us for all of their RV needs.
Our wide selection of RV brands from top manufacturers, state-of-the-art service facilities, and an extensive range of accessories and parts ensure that Lazydays is the go-to destination for RV enthusiasts seeking everything they need for their journeys on the road. Whether you’re a seasoned RVer or just starting your adventure, our dedicated team is here to provide outstanding support and guidance, making your RV lifestyle truly extraordinary.
Lazydays is a publicly listed company on the Nasdaq stock exchange under the ticker “GORV.”
WASHINGTON – Outdoor Recreation Roundtable (ORR) issued the following statement on President-elect Donald Trump’s intention to nominate North Dakota Governor Doug Burgum to be Secretary of the U.S. Department of the Interior when he takes office next year:
Jessica Wahl Turner
“Earlier this year, ORR was proud to support Governor Burgum in announcing North Dakota as the 22nd state to establish an Office of Outdoor Recreation, which came on the heels of the Governor’s attendance at our National Outdoor Recreation Executive Forum in Washington, D.C.,” stated Jessica Turner, President, Outdoor Recreation Roundtable (ORR).
“Governor Burgum has shown a commitment to supporting outdoor recreation as an economic driver and a meaningful way to connect communities,” she continued. “As an avid outdoorsman who hunts, sails, skis, rides horses and more, we are hopeful that the Governor’s long-time admiration of Teddy Roosevelt and deep understanding of business will help support and grow the recreation economy. The success of the $1.1 trillion outdoor recreation economy relies on the Department of the Interior managing, safeguarding and maintaining America’s public lands and waters, infrastructure and increasing access so we can pass on the lifelong benefits of time in nature to our children and all future generations. ORR will seek to work diligently with the next Administration to advance a sustainable and thriving outdoor recreation economy for the benefit of all Americans.”
About ORR
The Outdoor Recreation Roundtable is the nation’s leading coalition of outdoor recreation associations representing the more than 110,000 outdoor businesses in the recreation economy and the full spectrum of outdoor-related activities. The most recent data from the U.S. Department of Commerce shows that outdoor recreation generated $1.1 trillion and 5 million American jobs in 2022, comprising 2.2% of the nation’s economy and 3.2% of all employees in the country.
WASHINGTON, D.C. – AAA projects 79.9 million travelers will head 50 miles or more from home over the Thanksgiving holiday travel period. For the first time, AAA’s forecast includes the Tuesday before and the Monday after Thanksgiving Day to better capture the flow of holiday travelers. This year’s projection of nearly 80 million travelers is an increase of 1.7 million people compared to last year and 2 million more than in 2019.
“Thanksgiving is the busiest holiday for travel, and this year we’re expecting to set new records across the board, from driving to flying and cruising,” said Stacey Barber, Vice President of AAA Travel. “Americans reconnect with family and friends over Thanksgiving, and travel is a big part of that. AAA continues to see travel demand soar post-pandemic with our members looking for new adventures and memorable vacations.”
Thanksgiving Travelers By Mode
By Car: AAA projects a record 71.7 million people will travel by car over Thanksgiving – that’s an additional 1.3 million travelers on the road compared to last year. This year’s number also surpasses pre-pandemic numbers when 70.6 million people drove to their Thanksgiving destinations in 2019.
Gas prices are lower this Thanksgiving season compared to 2023. The national average last Thanksgiving Day was $3.26. Falling oil prices this autumn may help push the national average below $3 a gallon for the first time since 2021, and that could happen before drivers hit the road for Thanksgiving. Regionally, drivers east of the Rockies will find gas between $2.25 to $2.50 a gallon in more than a dozen states.
AAA car rental partner Hertz says Atlanta, Las Vegas, Los Angeles, Miami, Oahu, Orlando, and Phoenix are the cities displaying the highest rental demand for the Thanksgiving holiday. The busiest car pick-up day is expected to be the Wednesday before Thanksgiving, and the busiest rental return days will be the Monday and Tuesday after the holiday.
By Air: Thanksgiving air travel is also expected to set a new record. AAA projects 5.84 million people will fly domestically this holiday. That’s an increase of 2% compared to last year and a nearly 11% increase over 2019. According to AAA booking data, air travelers are paying 3% more for domestic Thanksgiving flights this year, while the number of flight bookings is similar to last year. International flight bookings are up 23% compared to last Thanksgiving, in part because the cost to fly internationally is down 5%.
By Other Modes: Nearly 2.3 million people are expected to travel by other modes of transportation, including buses, cruises, and trains. This category is seeing an increase of almost 9% compared to last year and an 18% jump over 2019, in large part due to the popularity of cruising. The demand for cruises has been red-hot post-pandemic. Domestic and international cruise bookings are up 20% compared to last Thanksgiving.
Best/Worst Times to Drive and Peak Congestion by Metro
INRIX, a provider of transportation data and insights, says the worst times to travel by car over Thanksgiving are Tuesday and Wednesday afternoon. The best time to hit the road is Thanksgiving Day itself when interstates and highways are typically clear. Drivers returning home on Sunday should leave early in the morning, and those coming back on Monday should expect a mix of travelers and work commuters on the road.
“With a record number of travelers expected to be on the road, drivers should follow traffic apps and local news alerts to avoid major delays,” said Bob Pishue, transportation analyst at INRIX. “This is especially important for drivers in metropolitan areas like Boston, New York, LA, Seattle, and Washington, DC, where traffic is expected to be more than double what it typically is on a normal day.”
Forest River Inc.’s Doug Gaeddert, one of three senior managers who assumed new responsibilities in a recent corporate realignment announced by company founder and ongoing CEO Pete Liegl, paused recently for an RVBusiness interview that, among other things, sheds light on Forest River’s accelerating rate of change.
He also provided upbeat insights regarding last week’s (Nov. 12-15) 2024 RV Dealers Convention/Expo in Las Vegas.
“Yeah, I thought RVDA went great, especially coming as it did on the heels of the election, and I thought attendance was good,” said Gaeddert, a former divisional GM who managed much of Forest River’s towable business for 25-plus years and since August has assumed the title of President of Forest River’s RV Group – including both towable and motorized – for the Elkhart, Ind.-based division of Berkshire Hathaway Inc.
Forest River RV Group President Doug Gaeddert at the 2024 America’s Largest RV Show in Hershey, Pa. (RVBusiness file photo)
“And I can tell you that we had far and away the greatest attendance at a brand meeting there as we’ve ever had,” added Gaeddert. “Even though we had a large amount of space in the display area, they had to go get more chairs – and there still wasn’t enough room. People were standing. So, attendance was really good.”
Also taking on additional responsibilities in the recent senior management shift was David Wright, now responsible for Forest River’s Commercial Division, and former CFO Darrell Ritchie, who oversees Corporate Management.
And that, of course, is just a piece of the current evolution underway at 28-year-old, 14,000-employee Forest River, which also recently consolidated its cargo trailer production in Georgia and Indiana while closing California operations reportedly due to the elevated costs of doing business there.
RVBusiness: So, Doug, what’s the RV world look like from your perspective during the last quarter of 2024?
Gaeddert: I think it’s an excellent time to finish out the year and to roll into 2025, and I’m particularly referring to the election, which was decisive. I think it put a lot of peoples’ fears to rest to an extent because it was a decisive election.
There’s been an immediate impact on the markets in addition to settling people down, which we knew was going to be the first of the major things going on right now. There was a pretty incredible hike in net worth on paper that occurred immediately afterwards. So, it was also reassuring to people and a very positive outcome for retail consumers who have been wondering what’s going to happen next.
RVB: Was that calming influence, in your view, due to the simple fact that the elections were over or because of who – Donald J. Trump – won the day?
Gaeddert: Well, I actually think it did have a lot to do with who won, Sherm, because of the go-forward policies on the table from an economic standpoint.
You know, looking at things a couple of months ago, we had several significant things to watch including the election coming up, which had the United States and really the globe in relative disarray. You had questions about what’s going to happen with the Fed, which everybody felt was going to lower the interest rate a quarter point and it did. And then we saw immediate responses on some hotspots around the globe – Russia-Ukraine, the Middle East and, to an extent, China and Taiwan.
So, I think there’s more of a sense of security that there will be some resolution to some of the global geopolitical situations that are going on with the odds going up that some of that gets resolved. I think all those things are affecting peoples’ overall outlook.
RVB: Closer to home, what’s the domestic RV market look like in general as well as for Forest River from your perspective?
Gaeddert: Well, as for the market, we’ve obviously been going through a little bit of a reset – a purging of the herd so to speak, right? And it happens cyclically, let’s just say every 10 years for a convenient number, keeping in mind that it varies somewhat over the years. But it’s somewhere in there.
So, we’re pretty close to being through that purge cycle when it comes to distribution in terms of both inventories and the number of dealers actually physically retailing RVs.I mean, there have been a lot of (dealer) defaults during the past couple of years.
RVB: Very interesting and an intriguing topic during times like these.
Gaeddert: Obviously the interest rates going down has been a positive. I just looked at two major dealers’ inventories and they’re in really good shape – in one case, in fact, right at 90% of their inventory was between zero and 270 days. And their inventory was about perfect going into November. I looked at a second one that was very similar – a little bit more aging, but otherwise probably close to what would have been the norm three years ago.
So, dealer inventories as a whole are pretty solid and manufacturing levels are in really good shape relative to retail.
As for Forest River, we’re on a nice roll right now when it comes to market share. The market’s down about 10% and I think we’re up right at 9% as far as market share gains this year with our total for RV’s posting almost a 7% gain, with nice pickups as well on the motorhome side in spite of the challenging market. And the world’s a little more stable than what it was a few weeks ago. So, I think it’s all good.
RVB: Taking everything into consideration, what’s your outlook for 2025?
Gaeddert: Well, I think we’ll see a continued drop at a measured pace in interest rates, which is obviously healthy. We’re going into ’25 in really good shape as far as the dealer inventories. And considering that we’re going into ’25 with some settling that’s occurred due to the election being over, I think 2025 looks really good.
Now, as far as how fast the market accelerates, I hope it’s not excessively fast. I hope it’s a nice manageable steady increase and that we just continually stay in sync as far as production rates and retail activity. Then take into account some of the long-term projects that we’ve got in the works thanks to Pete (Liegl) that maybe aren’t on the industry’s radar and aren’t in your trade magazines every day.
Among Forest River’s recent highlights was a well-attended Dealer Expo during the 2024 Elkhart RV Open House. (RVBusiness file photo)
RVB: Long term projects like what?
Gaeddert: Well, for one thing, we’re working on a call center project. We’re working on a single part number across the company. We’re digging into the value of data analytics with our dealer partners. We’re communicating with the DMS (Dealer Management System) providers on best ways to integrate some data. We’ve enhanced our CRM (Customer Relationship Management) process with a marketing arm.
We’ve just finished a branding exercise that kind of culminated a little bit with the Expo (Forest River’s term for the Open House). And we’re enhancing tech training availability for our dealer body.
In addition, as you’re well aware, we made a decision to cease manufacturing in California and, at the same time, we made the commitment in California to really put together what I’m super excited about as far as a service center.
We’re working on a captive finance company, both wholesale and retail. We’re doing enhanced product testing on components, and appliances, etc. We’ve really kind of entered into a period where we do a 365 day-a-year product development program.
RVB: Those, frankly, are pretty impressive goals, most of which amount to news for the industry at large.
Gaeddert: And then the other thing is that we’ve got a fixed partner program that basically incentivizes dealers to sell product within 120 days and focus on turn and aging by reimbursing them interest if they participate in the program. They’ve got inventory levels that have to be maintained. But that’s really kind of caught another gear, too. And you can see the impacts on dealer inventory and aging as a result of that.
So, like I said, Pete’s got us in a position where we’ve got a lot of good things going that really are on the radar. And I probably shouldn’t have talked through all of them there, but for the list I did. But we’ve got a lot of great things going that bode well for customer experience, dealer performance, OEM performance and the industry as a whole.
RVB: Thanks. Doug, for working with us on this head-turning interview.
Gaeddert: I should add that while they’re not geared specifically towards it – and they’re not the sole reason – one of the major objectives that we’re working toward with these new initiatives is enhanced RECT – Repair Event Cycle Time – for an improved consumer experience, improved dealer performance, improved OEM performance and improved product performance. So, yeah, I’m totally juiced.
: 
