RDNW - NASDAQ

[Operator Instructions] Today's first question is coming from Eric Wold of B. Riley Securities.

I guess, not sure who wants to take this. Marshall or Blake I guess, in the guidance you gave for '23, you talked about new and used retail unit growth of 5%. Can you maybe just give us a sense of what you're assuming the industry or the market grows this year and your relative performance or performance to that? And I guess if you could break that down by new and used to give us a sense of how you think those respective kind of customer bases are thinking this year?

Great, and my follow-up question, I guess, with year-end inventory of $331 million for 2022, and your goals are kind of continue to improve with days sales throughout the year. If you think about your guidance for '23 on revenues and EBITDA, where would you expect inventories to end the year at? What's the reasonable range for you to expect?

The next question is coming from Craig Kennison of Baird.

I guess lots of questions on Camping World and the shareholder letter. But with those off limits. I'd just ask maybe about the financing side of the business. What percentage of your powersports units are financed? What is the source of that financing for consumers? And to what extent have you seen any change in behavior in the last week as banks maybe take a different view of risk in the wake of some of the bank failures.

And just following up on the finance piece. What is the shape or what color can you add on JPMorgan advice you intend to pursue? I mean any way to add some color as to what you intend to change as it relates to your balance sheet going forward?

The next question is coming from Seth Basham of Wedbush Securities.

My first question is just a little bit more color on the GPU expectations for 2023. It seems like you expect powersports GPU to improve throughout the year. Is this from new inventory normalization and your view that used inventory is under control at this point in time?

Yes, I definitely agree. And when you assess the outlook for the balance of the year, what kind of risk do you assign to the chances that we'll see another step down and use price as a material step down?

That's really helpful color. And my last follow-up question is just on your outstanding debt. You mentioned that some restricted covenants, which ones do you view as most restrictive? And are there any that you're close to for [indiscernible]?

And Seth, this is Blake. I'll just reiterate that the guidance of $95 million to $105 million of adjusted EBITDA, we feel good about where that puts us in relation to our covenants going forward. Of course, you never know all bets are off if the market completely goes bad, but we feel good with our projections and where that will lead us and we anticipate paying off additional long-term debt.

And our projection is too, Seth, just for planning purposes, we've built in a 1% interest rate increase from here. I mean your crystal ball is probably as good as mine. I hear every day that it goes from -- they're going to move 25 to move 2 points. I mean -- but we just felt that we needed to pick a target. And so we have built into our modeling a 1% increase in our interest costs over the term of the year. Hopefully, we can offset whatever interest costs happen with a better finance package as we progress with JPMorgan. As you know, because of the bank collapses of recent -- the commercial markets were just starting to kind of free up and a lot of transactions were starting to be done again, I would make the assumption. I haven't heard this, but I would make the assumption that they're probably won back again until some of this clears. So I wouldn't expect that we will restructure this balance sheet in the first half, but we certainly intend to do it before the end of '23.

In the interest of time, we're going to ask our final analyst to please limit to one question. Today's final question is coming from Fred Wightman of Wolfe Research.

I just wanted to follow up on the comment about the Harley negative equity. Can you sort of expand on that? Is that sort of where across your different verticals you're seeing the most pressure? And sort of how does that impact or influence your retail expectations across the different categories for this year?