Brunswick Corporation (NYSE:BC) Q1 2022 Earnings Conference Call April 28, 2022 11:00 AM ET

Company Participants

Brent Dahl - Vice President of Investor Relations

David Foulkes - Chief Executive Officer

Ryan Gwillim - Chief Financial Officer

Conference Call Participants

Xian Siew - BNP Paribas

James Hardiman - Citigroup

Michael Swartz - Truist Securities

Anna Glaessgen - Jefferies

Kevin Heenan - JP Morgan

Fred Wightman - Wolfe Research

Joe Altobello - Raymond James

Eric Wold - B. Riley

David MacGregor - Longbow Research

Derrick Johnson - BMO Capital Markets

Operator

00:04 Good morning, and welcome to Brunswick Corporation’s First Quarter 2022 Earnings Conference Call. All participants will be in a listen-only mode until the question-and-answer period. Today's meeting will be recorded. If you have any objections, you may disconnect at this time.

00:21 I would now like to introduce Brent Dahl, Vice President, Investor Relations.

Brent Dahl

00:28 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.

00:36 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 the factors to consider, please refer to our recent SEC filings in today's press release. All of these documents are available on our website at Brunswick.com.

01:02 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.

01:20 I will now turn the call over to Dave.

David Foulkes

01:23 Thanks, Brent, and good morning everyone. Our businesses had a strong start to 2022, delivering record first-quarter sales, operating earnings, and EPS. Continued focus on operational efficiency and strengthening our supply chain enabled increased production levels, and our investments in technology, innovation, recurring-revenue businesses and capacity have shaped the enterprise portfolio for further success in any economic environment.

01:57 Despite the inflationary backdrop, the pace of retail sales continues to be dominated by the twin supply-side challenges of very low field inventory levels and supply chain disruption. Global boat field inventory levels were 6% lower at the end of the first quarter 2022 than at the same time in 2021, and down 12% in the US, and are likely exaggerated by a slower start to spring in the Northern US and Canada, which is resulting in delayed deliveries and registrations for many retail-sold boats.