Winnebago Industries Reports Record Fourth Quarter Results
FOREST CITY, Iowa--Oct. 3, 2001--Winnebago Industries, Inc. , the world's leading motor home manufacturer, today reported increased revenues and earnings for the Company's fourth quarter of fiscal year 2001. Record revenues of $178.1 million for the fourth quarter ended August 25, 2001 increased 8.1 percent over revenues of $164.8 million for the fourth quarter last year. Net income for the Company's fourth quarter of fiscal 2001 was a record $15.5 million, compared to net income of $7.9 million for the fourth quarter last year. Included in the net income for the fourth quarter of fiscal 2001 is a reduction in income tax expense of $4.5 million, or 22 cents per diluted share, that relates to tax benefits not previously recorded due to uncertainties of realization that have now been resolved. Net income per diluted share for the fourth quarter of fiscal 2001 was a record 74 cents, compared to 37 cents per diluted share in the fourth quarter one year ago. Excluding the one-time tax benefit, net earnings were $11.0 million, or 52 cents per diluted share, still a record for the Company's fourth quarter.The Company's revenues for the fiscal year ended August 25, 2001 were $681.8 million, compared to revenues of $753.4 million for the previous fiscal year. Net income for fiscal 2001 before the cumulative effect of the change in accounting method was $43.8 million, or $2.08 per diluted share ($1.86 per diluted share excluding the one-time tax benefit) compared to net income of $48.4 million, or $2.20 per diluted share, in fiscal 2000. The change in accounting method was a result of the adoption of the Securities and Exchange Commission's (SEC) Staff Accounting Bulletin No. 101 ("SAB 101") - Revenue Recognition in Financial Statements.
"We are extremely gratified to see growth in the Company's fourth quarter versus one year ago," said Winnebago Industries Chairman, CEO and President Bruce Hertzke. "We believe the Company's performance in fiscal 2001 is a result of the excellent acceptance of our new products, the solid performance of our dealer partners, our brand awareness and strong quality reputation. We are encouraged by the continued reduction in interest rates, and the acceptance of our new products, however, the economic environment since the September 11 tragedy leads us to be cautious about the next couple of quarters. Long-term, demographics are in our favor as our target market of consumers age 50 and older is expected to increase for the next 30 years."
Achieving the leadership role in motor homes in calendar 2001, Winnebago Industries continues to gain market share. According to Statistical Surveys, Inc., an independent retail reporting service, Winnebago Industries' retail market share of the total Class A and C motor home market was 18.8 percent for the calendar year to date through July, compared to 17.0 percent for the same period in calendar 2000. This upward trend began in calendar year 1997, at which time Winnebago Industries' share of the Class A and C retail market was 15.8 percent.
For the fourth quarter ended August 25, 2001, Winnebago Industries reported factory shipments of 1,553 Class A and 835 Class C motor homes, compared to 1,422 Class A and 844 Class C motor homes for the fourth quarter last year, a total increase of 5.4 percent. Class A motor home shipments included 299 diesel units, an increase of 15.9 percent compared to 258 diesel units shipped in the fourth quarter last year. Conversions of Class B EuroVan Campers for Volkswagen of America were 292 units for the fourth quarter of fiscal 2001 compared to 181 units for the fourth quarter last year.
For the fiscal year 2001 ended August 25, 2001, Winnebago Industries reported factory shipments of 5,666 Class A and 3,410 Class C motor homes, compared to 6,819 Class A and 3,697 Class C motor homes last year. During fiscal 2001, Class A motor home shipments included 1,367 diesel units, compared to 1,471 diesel units shipped last year. Conversions of Class B EuroVan Campers for Volkswagen of America were 703 units for fiscal 2001 compared to 854 units last year.
Winnebago Industries motor home sales order backlog at the end of the fourth quarter on August 25, 2001 was 1,598 units, an 18 percent increase compared to 1,355 units on order at the end of the fourth quarter last year.
In March 2001, Winnebago Industries' Board authorized the repurchase of outstanding shares of the Company's Common Stock for an aggregate purchase price of up to $15 million. Since that time, 218,000 shares have been repurchased for $4,491,114.
Winnebago Industries, Inc.
Consolidated Statements of Income
(in thousands except per share amounts)
Quarter Ended Fiscal Year Ended
(Unaudited)
8/25/2001 8/26/2000 8/25/2001 8/26/2000
--------- --------- --------- ---------
Net revenues $ 178,131 $ 164,798 $ 681,834 $ 753,382
Cost of goods sold 151,262 144,201 587,330 640,488
--------- --------- --------- ---------
Gross profit 26,869 20,597 94,504 112,894
--------- --------- --------- ---------
Operating expenses:
Selling 7,655 6,162 25,423 25,118
General and
administrative 3,768 2,557 13,607 17,122
--------- --------- --------- ---------
Total operating
expenses 11,423 8,719 39,030 42,240
--------- --------- --------- ---------
Operating income 15,446 11,878 55,474 70,654
Financial income 960 949 3,754 3,338
--------- --------- --------- ---------
Income before taxes
and cumulative
effect of a change
in accounting method 16,406 12,827 59,228 73,992
Provision for taxes 876 4,917 15,474 25,593
--------- --------- --------- ---------
Income before
cumulative effect of
a change in
accounting method 15,530 7,910 43,754 48,399
Cumulative effect on
prior years of the
accounting method
change -- -- (1,050) --
--------- --------- --------- ---------
Net income $ 15,530 $ 7,910 $ 42,704 $ 48,399
========= ========= ========= =========
Earnings per share
-basic:
Income before
cumulative effect
of a change in
accounting method $ 0.75 $ 0.37 $ 2.11 $ 2.23
Cumulative effect
on prior years of
the accounting
method change -- -- (0.05) --
--------- --------- --------- ---------
Net income $ 0.75 $ 0.37 $ 2.06 $ 2.23
========= ========= ========= =========
Number of shares used
in per share
calculations-basic 20,698 21,297 20,735 21,680
========= ========= ========= =========
Earnings per share
-diluted:
Income before
cumulative effect
of a change in
accounting method $ 0.74 $ 0.37 $ 2.08 $ 2.20
Cumulative effect
on prior years of
the accounting
method change -- -- (0.05) --
--------- --------- --------- ---------
Net income $ 0.74 $ 0.37 $ 2.03 $ 2.20
========= ========= ========= =========
Number of shares used
in per share
calculations-diluted 21,114 21,517 21,040 22,011
========= ========= ========= =========
The reduction in income tax expense in the fourth quarter of fiscal 2001 relates to $4.5 million of tax benefits associated with a capital loss not previously recorded due to uncertainties of realization that have now been resolved. Fiscal 2000 fourth quarter and year end financial results restated on a pro forma basis for the adoption of SAB 101 result in net revenue of $165,239,000 and $752,850,000, respectively, and net income of $8,159,000, and $48,444,000, respectively, or 38 cents and $2.20 per diluted share, respectively.
Certain prior year information has been reclassified to conform to the current year presentation.
Winnebago Industries, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
Aug. 25, 2001 Aug. 26, 2000
ASSETS
Current assets
Cash $ 93,779 $ 51,443
Receivables 60,446 64,741
Inventories 79,815 85,707
Other 10,327 11,627
--------------------------------
Total current assets 244,367 213,518
Property and equipment, net 46,536 45,455
Deferred income taxes 21,495 19,044
Investment in life insurance 22,223 21,028
Other assets 7,412 8,050
--------------------------------
Total assets $ 342,033 $ 307,095
================================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 30,789 $ 26,212
Income taxes payable 4,938 8,790
Accrued expenses 34,392 35,242
--------------------------------
Total current liabilities 70,119 70,244
Post retirement health care and
deferred compensation benefits 64,450 61,942
Stockholders' equity 207,464 174,909
--------------------------------
Total liabilities and
stockholders' equity $ 342,033 $ 307,095
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