Winnebago Industries Reports First Quarter Results
FOREST CITY, Iowa--Dec. 18, 2001--Winnebago Industries, Inc. , the world's leading motor home manufacturer, today reported results for the first quarter of fiscal 2002 which ended December 1, 2001. Revenues were $179.1 million for the 14- week quarter, an increase of 9.1 percent over revenues of $164.2 million for the first quarter of fiscal 2001 (13 weeks).Net income for the first quarter of fiscal 2002 was $10.7 million, an increase of 25 percent compared to net income of $8.5 million for the first quarter last year. Net income for the first quarter of fiscal 2002 before the cumulative effect of the change in accounting method increased 12 percent compared to the first quarter last year. Net income per diluted share for the first quarter of fiscal 2002 was 51 cents, compared to 40 cents per diluted share in the first quarter one year ago.
"We are gratified to see continued growth in the Company's first quarter from a year ago," said Winnebago Industries' Chairman, CEO and President Bruce D. Hertzke. "The positive results were due to the excellent acceptance of the company's new 2002 motor homes, the focus on high quality standards by our dedicated workforce and our strong dealer partners. Over 65 percent of the Company's products are new for 2002, including four new product lines: the fuel efficient, front-wheel-drive Winnebago(R) Vista(TM) and Itasca(R) Sunstar(TM) Class C motor homes and the full-featured and affordable Winnebago Sightseer(TM) and Itasca Sunova(TM) Class A motor homes.
"We were also very pleased with the results of the recent National RV Show in Louisville, KY, with very positive dealer response to our new products and considerable sales order volume growth versus a year ago."
Also at the Louisville Show, Winnebago Industries accepted the prestigious Quality Circle Award from the Recreation Vehicle Dealer Association. Winnebago Industries was the only manufacturer in the top five motor home manufacturers to receive the award. Dealers throughout the country rated Winnebago Industries as the top motor home manufacturer in 15 of the 21 categories.
Market Share Growth
The Company's focus on product development and high quality standards has also earned Winnebago Industries the number one position in retail motor home sales, as well as continued market share growth. According to Statistical Surveys, Inc., the RV retail registration reporting firm, Winnebago Industries is the leading motor home manufacturer with 18.9 percent of the combined Class A and C retail market nationally calendar year to date through October 2001. This is an increase in market share of 10.9 percent from the 17.1 percent market share achieved by Winnebago Industries for the same period last year.
For the first quarter ended December 1, 2001, Winnebago Industries reported factory shipments of 1,507 Class A and 810 Class C motor homes, compared to 1,345 Class A and 852 Class C motor homes for the first quarter last year. Factory shipments of Class B motor homes for Winnebago Industries were 197 for the first quarter of fiscal 2002 compared to 113 for the first quarter last year. Winnebago Industries sales order backlog of combined Class A and C motor homes was 1,580 on December 1, 2001, an increase of 11.3 percent over the sales order backlog of 1,420 at the end of the first quarter last year.
Outlook
"We are encouraged by the excellent acceptance of our new products and the continued reduction of interest rates," said Hertzke. "The long-term outlook for motor home sales continues to appear very favorable." Studies show that the Company's prime target market of people 50 years of age and older will continue to increase by over 4 million a year through the year 2030. "The increased market for our motor homes along with Winnebago Industries' continued market share growth, product innovation, experienced workforce, solid dealer partners and strong brand recognition, lead me to believe the Company will experience strong long-term growth over the next 30 years," said Hertzke.
About Winnebago Industries
Winnebago Industries, Inc. is the leading manufacturer of motor homes, self-contained recreation vehicles used primarily in leisure travel and outdoor recreation activities. Other products manufactured by the Company consist principally of a variety of component products for other manufacturers. The Company builds quality products with state-of-the-art computer-aided design and manufacturing systems on automotive-styled assembly lines. The Company believes its products are subjected to the most rigorous quality testing in the RV industry. The Company's common stock is listed on the New York, Chicago and Pacific Stock Exchanges and traded under the symbol WGO. Options for the Company's common stock are traded on the Chicago Board Options Exchange. Visit Winnebago Industries' web site at www.winnebagoind.com. For access to Winnebago Industries investor relations material, to add your name to an automatic email list for Company news releases or for information on a dollar-based stock investment service for the Company's stock, visit, www.winnebagoind.com/investor_relations.htm.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that forward-looking statements are inherently uncertain. A number of factors could cause actual results to differ materially from these statements, including, but not limited to reactions to actual or threatened terrorist attacks, the availability and price of fuel, a significant increase in interest rates, a further slowdown in the economy, availability of chassis, slower than anticipated sales of new or existing products, new products introduced by competitors, collections of dealer receivables and other factors. Additional information concerning certain risks and uncertainties that could cause actual results to differ materially from that projected or suggested is contained in the Company's filings with the Securities and Exchange Commission (SEC) over the last 12 months, copies of which are available from the SEC or from the Company upon request.
Winnebago Industries, Inc.
Unaudited Consolidated Statements of Income
(In thousands, except per share amounts)
Fourteen Thirteen
Weeks Weeks
Ended Ended
Dec. 1, Nov. 25,
2001 2000
Net revenues $ 179,113 $ 164,167
Cost of goods sold 153,570 141,920
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Gross profit 25,543 22,247
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Operating expenses:
Selling 6,128 6,103
General and administrative 4,104 2,764
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Total operating expenses 10,232 8,867
--------------------------
Operating income 15,311 13,380
Financial income 892 971
--------------------------
Income before tax and cumulative effect
of a change in accounting method 16,203 14,351
Provision for taxes 5,493 4,755
--------------------------
Income before cumulative effect of a change
in accounting method 10,710 9,596
Cumulative effect on prior years of the
accounting method change -- (1,050)
--------------------------
Net income $ 10,710 $ 8,546
--------------------------
Earnings per share-basic:
Income before cumulative effect of a
change in accounting method $ 0.52 $ 0.45
Cumulative effect on prior years of the
accounting method change
-- (0.05)
--------------------------
Net income $ 0.52 $ 0.40
--------------------------
Number of shares used in per share
calculations-basic 20,674 21,101
--------------------------
Earnings per share-diluted:
Income before cumulative effect of a
change in accounting method $ 0.51 $ 0.45
Cumulative effect on prior years of the
accounting method change -- (0.05)
--------------------------
Net income $ 0.51 $ 0.40
--------------------------
Number of shares used in per share
calculations-diluted 21,103 21,280
--------------------------
Certain prior year information has been reclassified to conform to the
current year presentation.
Winnebago Industries, Inc.
Consolidated Condensed Balance Sheets
(In thousands)
Dec. 1, Aug. 25,
2001 2001
------- --------
(Unaudited)
ASSETS
Current assets
Cash $115,494 $102,280
Receivables 47,733 61,834
Inventories 81,474 79,815
Other 10,846 10,327
----------------------
Total current assets 255,547 254,256
Property and equipment, net 46,081 46,536
Deferred income taxes 21,495 21,495
Other assets 30,408 29,635
----------------------
Total assets $353,531 $351,922
======================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 28,603 $ 40,678
Income taxes payable 8,695 4,938
Accrued expenses 32,713 34,392
----------------------
Total current liabilities 70,011 80,008
Post retirement health care and
deferred compensation benefits 66,040 64,450
Stockholders' equity 217,480 207,464
----------------------
Total liabilities and stockholders' equity $353,531 $351,922
======================
Certain prior year information has been reclassified to conform to the
current year presentation.
