Brunswick Corporation (NYSE:BC) Q3 2022 Earnings Conference Call October 27, 2022 11:00 AM ET

Company Participants

Neha Clark - SVP, Enterprise Finance

Dave Foulkes - CEO

Ryan Gwillim - CFO

Conference Call Participants

Kevin Heenan - JPMorgan

James Hardiman - Citi

Xian Siew - BNP Paribas

Craig Kennison - Robert W. Baird

Mike Swartz - Truist Securities

Fred Wightman - Wolfe Research

Scott Stember - MKM Partners

Joe Altobello - Raymond James

Eric Wold - B. Riley Securities

Operator

Good morning, and welcome to Brunswick Corporation's Third Quarter 2022 Earnings Conference Call. [Operator Instructions] Today's meeting will be recorded. If you have any objections, you may disconnect at this time.

I would now like to introduce Neha Clark, Senior Vice President, Enterprise Finance, Brunswick Corporation.

Neha Clark

Good morning, and thank you for joining us. With me on the call this morning are Dave Foulkes, Brunswick's CEO; and Ryan Gwillim, CFO. Before we begin with our prepared remarks, I would like to remind everyone that during this call, our comments will include certain forward-looking statements about future results. Please keep in mind that our actual results could differ materially from these expectations. For details on these factors to consider, please refer to our recent SEC filings and today's press release.

All of these documents are available on our website at brunswick.com. During our presentation, we will be referring to certain non-GAAP financial information. Reconciliations of GAAP to non-GAAP financial measures are provided in the appendix to this presentation and the reconciliation sections of the unaudited consolidated financial statements accompanying today's results.

I will now turn the call over to Dave.

Dave Foulkes

Thanks, Neha, and good morning, everyone.

We delivered a record third quarter with $1.7 billion in net sales and almost $280 million of adjusted operating earnings, continuing our trend of exceptional, resilient performance in a challenging macroeconomic and supply environment. These results were achieved despite an extremely difficult end to the quarter for many of our Florida employees and locations as a result of the impacts of Hurricane Ian.

All our divisions contributed to the strong performance, with many new products, sustained cost control and a continued focus on operational efficiency, together with the benefits of capacity investments and ACES initiatives, driving growth across our businesses.

Consumer demand for our products remains resilient with boat field inventory levels getting healthier, but remaining nearly 40% lower at the end of the quarter versus the same time in 2019. Our boat and engine production levels remain generally on track and the percentage of our boat production that is already retail sold continues to be high, especially for our fiberglass brands with no evidence of wholesale cancellations.