LIZ: YOU KNOW WHAT?
I HAVEN’T, OKAY, JET BLUE IS
STILL HIGHER.
SO, SAY FOR JETBLUE, WHICH MAYBE
REVIVING ITS BID FOR SPIRIT
AIRLINES NO WONDER THE REST ARE
IN THE RED, U.S. CONSUMER
COMPLAINTS AGAINST AIRLINES
SOARING 320% OVER PRE-PANDEMIC
LEVELS AND THAT’S JUST FOR THE
MONTH OF APRIL.
CAN YOU IMAGINE WHEN THE
DEPARTMENT OF TRANSPORTATION
FIGURES OUT THE DISASTER THAT
WAS FATHERS DAY WEEKEND THIS
MONTH?
WELL ONCE BURNED TRAVELERS ARE
NOW TWICE SHY AND TURNING TO THE
ROADS INSTEAD.
LET’S GIVE YOU A LIVE LOOK AT
COLONIAL AIR STREAM RV.
THIS IS A DEALERSHIP IN MILL
STONE, NEW JERSEY WHERE
MADISON ALWORTH OUR REPORTER HAS
BEEN GATHERING THE LATEST ON THE
BOOM.
THE INDUSTRY ASSOCIATION SAYS
TOTAL RV SHIPMENTS IN MAY WERE
THE BIGGEST ON RECORD UP 11.8%
YEAR-OVER-YEAR.
THAT DESPITE GASOLINE PRICES
STILL NEAR RECORD HIGHS.
THE AVERAGE PRICE OF REGULAR GAS
RIGHT NOW $4.86 PER GALLON.
OKAY, SO A WEEK AGO IT WAS 4.95
BUT WITH THE JULY 4TH WEEKEND
JUST TWO DAYS AWAY RECREATIONAL
VEHICLE OWNERS ARE OUTFITTING
THEIR BOATS AND RV’S WITH
EQUIPMENT MANUFACTURED BY LIPPER
T, FORMERLY LCI, IS A
GLOBAL MANUFACTURER AND SUPPLIER
OF RV, MARINE, COMMERCIAL
VEHICLE PARTS AND PRODUCTS.
LIPPERT PRESIDENT AND CEO JASON
LIPPERT IS JOINING US IN A FOX
BUSINESS EXCLUSIVE.
GOOD TO HAVE YOU, SIR.
I’M LOOKING AT ALL THAT’S GOING
ON.
IT IS INCREDIBLE, AND I GET THAT
PEOPLE ARE GOING TO THE ROADS,
BUT RV’S ARE NOT AN IMPULSE
PURCHASE.
THEY ARE EXPENSIVE, AND PEOPLE
ARE STILL BUYING THEM.
WHAT’S GOING ON ON THE GROUND IN
YOUR WORLD?
>> YEAH, WELL I THINK COVID,
THE COVID BUST AND GOT EVERYBODY
BACK OUTDOORS AGAIN, RIGHT?
THAT’S A BIG DEAL FOR OUR
INDUSTRY.
55 MILLION PEOPLE ARE TAKING AN
RV TRIP IN THE NEXT 12
MONTHS ACCORDING TO A RECENT
SURVEY, 80% OF AMERICANS TAKE A
ROAD TRIP THIS YEAR, SO I THINK
PEOPLE ARE JUST GETTING
ACQUAINTED WITH BEING BACK OUT
IN THE ENVIRONMENT AND THE
OUTDOORS AND RV PLAYS RIGHT
INTO THAT.
LIZ: JASON I GET THAT FROM WHEN
THE PANDEMIC AND THE LOCKDOWNS
FIRST HIT, BUT THIS IS A LONG
VAPOR TRAIL.
WHEN WE LOOK AT SOME SORT OF
STAY-AT-HOME, WORK-FROM-HOME,
PLAY-AT-HOME STOCKS, SOME OF
THEM, MOST IN FACT, ARE WAY DOWN
THIS INDUSTRY MANAGED TO HOLD ON
YOU ALL MAKE THE PARTS.
I KNOW YOU MAKE EVERYTHING FROM
AWNINGS, RAMP DOOR, ANTI-LOCK
BRAKING, WINDOWS, KITCHEN, BATH,
ALL THE SOLUTIONS FOR RV’S.
WHAT ARE THE HOTTEST SELLING
ITEMS RIGHT NOW IN YOUR COMPANY?
>> YEAH, SO WE PROVIDE A LOT OF
THE CORE PRODUCTS, THE
FOUNDATION, THE CHASSIS, THE
SUSPENSION TO THE EQUIPMENT
MAKERS.
THE AWNINGS LIKE YOU SAID,
WINDOWS AND FURNITURE, A LOT OF
THE IMPORTANT ITEMS BUT THE RV
’S CAN’T DO WITHOUT, SO
THAT’S REALLY GOOD FOR US.
I THINK THAT INFLATION IS REALLY
PLAYING INTO OUR HAND.
UNFORTUNATELY FRAC FORTUNATELY.
IF YOU LOOK AT HOTELS ARE UP 40%
, AIRFARE IS UP, YOU KNOW, 25
%, SO YOU LOOK AT RENTAL CARS
UP 25%, YOU WANT TO RENT AN RV,
YOU CAN DO THAT FOR ABOUT $5
MORE A NIGHT THAN WHAT YOU COULD
LAST YEAR.
THE INFLATION IN OUR BUSINESS
JUST ISN’T THERE WHETHER YOU
RENT OR PURCHASE AN RV, YOU
CAN OFFSET THAT COST OF
OWNERSHIP WITH SOME OF THE NEW
PLATFORMS THAT ALLOW YOU TO RENT
YOUR NEW RV INSTEAD OF JUST
MAKING A MONTHLY PAYMENT THAT
YOU KEEP THE RV AND USE IT FOR
TWO WEEKS OUT OF THE YEAR,
NOW YOU CAN RENT IT FOR 10 OR
20 WEEKS OUT OF THE YEAR AND
COVER YOUR COST OF OWNERSHIP, SO
THERE’S SOME COUNTER
INFLATIONARY THINGS HAPPENING IN
OUR BUSINESS THAT ARE REALLY
HELPING.
LIZ: WE’RE LOOKING AT VIDEO FROM
YOUR COMPANY, AND WHEN YOU SAY
CHASSISES AND DOORS AND THINGS
LIKE THAT, I’M THINKING ALUMINUM
, STEEL, METALS.
WE KNOW THAT MATERIALS INFLATION
IS UNBELIEVABLY HOT.
SEERING HOT.
HOW HAVE YOU MANAGED TO DEAL
WITH SUCH HIGH COSTS?
>> WELL LUCKILY, THE INDUSTRY
WAS HOT THE LAST TWO YEARS,
DEMAND WAS OFF THE CHART, RECORD
DEMAND AND WE ONLY NEED 450,000
UNITS A YEAR TO MAKE A REALLY
GOOD BUSINESS AND WE HIT OVER
600,000 UNITS THIS PAST YEAR, SO
WE’VE BEEN ABLE TO KEEP UP, THE
CUSTOMERS HAVE BEEN WILLING
TO PAY WHAT THEY NEED TO AND
THIS TYPE OF INFLATIONARY
ENVIRONMENT, WITH FUEL BEING UP,
WE’VE SEEN FUEL AND ALUMINUM
COOL BACK DOWN OVER THE LAST
FOUR OR FIVE MONTHS AND THAT’S
HELPFUL IN THE COMING QUARTERS.
DEMAND IS THE BIG THING.
LIZ: WELL YOU’RE ALSO INVOLVED
IN THE MARINE BUSINESS, AND YOU
MAKE ALL KINDS OF PRODUCTS FOR
BOATS.
HOW HAS THAT BUSINESS BEEN
HOLDING UP AS COMPARED TO THE RV
DEMAND?
>> YEAH, SO THE MARINE OEM’S
GOT A LOT SLOWER START RAMPING
UP, THEY ADJUSTED VERY QUICKLY
TO THE DEMAND, SO THE MARINE IS
A LITTLE BIT SLOWER SO THEIR
DEMAND PAY IS A LITTLE BIT
FURTHER, WE HAVE ROBUST DEMAND
FOR WHAT LOOKS LIKE THE NEXT SIX
TO 12 MONTHS WHEREAS THE RV IS
JUST A LITTLE BIT BECAUSE WE
STILL HAVE THE INVENTORY
PIPELINES A LOT QUICKER.
LIZ: YEAH, I’LL TELL YOU
SOMETHING.
I WAS LOOKING INTO THE HISTORY
OF YOUR COMPANY AND BY THE WAY,
YOU HAVE A PRETTY SOLID DIVIDEND
HERE THAT YOU JUST RAISED.
SO THE QUARTERLY DIVIDEND, I
BELIEVE IT YIELDS ABOUT 4% OR
JUST UNDER TAX ON TOP OF IT,
DURING HURRICANE ANDREW, FOR
EXAMPLE, YOUR COMPANY GOES WAY,
WAY BACK TO THE 50S BUT
HURRICANE ANDREW, WHEN HOMESTEAD
, FLORIDA WAS HAMMERED,
YOUR COMPANY STEPPED UP AND YOU
MADE 10,000 CHASSISES FOR FEMA
EQUIPMENT AND FEMA VEHICLES.
THAT TO ME IS JUST GOOD
CORPORATE RESPONSIBILITY WHERE
PEOPLE WERE WORKING 24/7 ON YOUR
PLANT FLOORS.
WHEN YOU FAST FORWARD TO TODAY,
HOW MUCH DIFFERENT IS THE
ECONOMY THEN THAN IT WAS,
THAN IT IS NOW?
>> WELL, YOU KNOW, WE’RE
SEVERAL THOUSAND TEAM MEMBERS
BIGGER TODAY THAN WHAT WE WERE,
IT’S A BIGGER SHIP TO STEER, BUT
WE REALLY DIVERSIFIED OUR
BUSINESS.
WE WERE PREDOMINANTLY HOUSING.
WE DID A LOT OF HOUSING FOR THE
MANUFACTURED HOUSING
MARKETS.
WE DID SUPPLY FEMA AND TURNED
OFF OUR POSITIONAL MARKETS AND
FEMA EVERY TIME THERE WAS A
HURRICANE IN NEED FOR HOUSING
BUT AFTER 2010, YOU KNOW, WE
REALLY WERE FOCUSED ON RV’S,
AFTER MARKETS WE GOT INTO EUROPE
, ALL SORTS OF TRAILERING
BUSINESSES AND COMMERCIAL
VEHICLE BUSINESSES AND BUSES, SO
WE DIVERSIFIED OUR MARKETS ALONG
WITH MARINE AND MARKET-FOCUS
PRETTY SOLID.
OVER THE LAST DECADE, SO WHEN
THESE BUMPS COME ALONG WE HAVE
MORE MARKET TO SPREAD OUR
BUSINESS OVER AND YOU THINK
ABOUT RV’S 25-$35,000 FOR THE
MOST POPULAR UNIT, SO
IT’S NOT A FAR STRETCH FOR
FAMILIES TO FINANCE IT.
LIZ: IF NOT THAT, THEN SHARES OF