Release Date: April 23, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: Can you elaborate on the guidance update, particularly the lowered RV and marina revenue range?
A: Paul Seavey, EVP and CFO, explained that the guidance update for Q2 and the full year uses the same methodology as the budget, focusing on reservation pacing for rent expected in Q2 without changing assumptions for Q3 and Q4. The update reflects some softness due to weather in April, particularly in California where precipitation was significantly above average.
Q: What's driving the decline in the Thousand Trails membership this quarter?
A: CEO Marguerite Nader noted the decline is due to a reduction in free trials and sales activity at the property level, typical of Q1 in other years. Despite fluctuations, the company has successfully grown dues revenue through rate increases and additional product offerings.
Q: Could you discuss the insurance renewal at only a 9% increase compared to the industry trend?
A: CFO Paul Seavey expressed satisfaction with the 9% increase, which was favorable compared to initial expectations. The company's detailed insurance program and positive claim experience contributed to the favorable renewal terms.
Q: Are there any updates on acquisition opportunities given the current market conditions?
A: CEO Marguerite Nader mentioned ongoing discussions with property owners, though the market has been slow with little distress. The company remains ready to act when opportunities align with their strategic goals.
Q: How is the company handling the variability in transient demand and matching expenses accordingly?
A: COO Patrick Waite highlighted the focus on aligning resources with customer flow, especially for transient customers. The company adapts its staffing and services based on actual and anticipated customer presence to manage costs effectively.
Q: What impact do you foresee from the recent changes to the increase of the loan limits of Title 1 manufactured housing?
A: CFO Paul Seavey acknowledged it's too early to see a direct impact, noting that over 95% of their customers are cash buyers, which minimizes the reliance on financing options in their customer base.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.