Winnebago Industries Reports Record Second Quarter and Six Months Results
 2004 Winnebago Journey |
Record revenues for the second quarter of fiscal 2004 were $266.0 million, an increase of 43 percent when compared to revenues of $186.0 million for the second quarter of fiscal 2003.
Net income for the first six months of fiscal 2004 was a record $33.9 million, a 19 percent increase when compared to net income of $28.6 million for the first six months of fiscal 2003. On a per share basis, the Company earned a record 96 cents per diluted share for the first six months of fiscal 2004, a 28 percent increase compared to 75 cents per diluted share for the first six months of fiscal 2003.
For the first six months of fiscal 2004, the Company reported record revenues of $521.0 million, a 24 percent increase compared to $419.3 million for the first six months of fiscal 2003.
"We are extremely pleased with our strong earnings performance for the second quarter and first six months of fiscal 2004," said Winnebago Industries' Chairman, CEO and President Bruce D. Hertzke. "Sales of our 2004 Class A diesel products have been particularly strong since their debut last fall, resulting in an increase in Class A diesel unit volume of 96 percent in the second quarter of fiscal 2004 compared to the volume for the same period in fiscal 2003. Winnebago Industries also saw growth in Class C sales, with an increase of 41 percent in unit volume compared to the second quarter last year."
The results of the quarter benefited from strong motor home sales, which were offset in part by a mix of more competitively priced products, an accrual of three cents a share for costs associated with an impending product recall, relatively higher manufacturing expense levels, and higher stock-based incentive compensation expense.
"Based on our sales order backlog, we are looking forward to the spring and summer selling season," Hertzke said. "On February 28, 2004, Winnebago Industries had 2,933 orders on hand for the Company's motor homes, an increase of 55 percent from the sales order backlog we reported at the end of the second quarter last year of 1,890 motor homes. Our 2004 products continue to perform extremely well in the marketplace. We also continue to believe long-term prospects remain extremely positive. Economic factors have improved since last year at this time. Demographic trends also continue to be in our favor for long-term growth. According to the University of Michigan 'Consumer Demographic Profile' study published in 2002 and conducted for the RV industry, long-term prospects for the industry will be favorably impacted due to the increased popularity of RVs, the growth in the prime target audience of people over age 50, and broadening age range of people who are buying motor homes."
On March 5, 2004, Winnebago Industries completed the two for one stock split announced on January 14, 2004. All per share information in this release has been adjusted to reflect the stock split.
Winnebago Industries will conduct a conference call in conjunction with this release at 10 a.m. ET today, Thursday, March 18, 2004. Members of the news media, investors and the general public are invited to access a live broadcast of the conference call via the Investor Relations page of Company's website at www.winnebagoind.com, at www.shareholder.com/winnebago/medialist.cfm or www.vcall.com. The event will be archived and available for replay for the next 90 days.
About Winnebago Industries
Winnebago Industries, Inc. is the leading United States manufacturer of motor homes, self-contained recreation vehicles used primarily in leisure travel and outdoor recreation activities. The Company builds quality motor homes under the Winnebago, Itasca, Rialta and Ultimate brand names with state-of-the-art computer-aided design and manufacturing systems on automotive-styled assembly lines. 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. 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, http://www.winnebagoind.com/html/company/investorRelations.html
This press release may contain 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 slowdown in the economy, availability of chassis, sales order cancellations, slower than anticipated sales of new or existing products, new products introduced by competitors 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)
Quarter Ended Six Months Ended
2/28/2004 3/1/2003 2/28/2004 3/1/2003
--------- --------- --------- ---------
Net revenues $266,033 $185,958 $520,966 $419,305
Cost of goods sold 231,004 159,590 446,472 357,865
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Gross profit 35,029 26,368 74,494 61,440
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Operating expenses
Selling 4,461 4,068 9,022 8,755
General and administrative 6,039 2,932 11,777 8,036
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Total operating expenses 10,500 7,000 20,799 16,791
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Operating income 24,529 19,368 53,695 44,649
Financial income 283 420 586 695
---------------------------------------
Pre-tax income 24,812 19,788 54,281 45,344
Provision for taxes 8,932 7,898 20,334 17,576
---------------------------------------
Income from continuing
operations 15,880 11,890 33,947 27,768
Income from discontinued
operations (net of taxes) -- 419 -- 819
---------------------------------------
Net income $15,880 $12,309 $33,947 $28,587
=======================================
Income per share (basic)
From continuing operations $.47 $.32 $.98 $.74
From discontinued operations -- .01 -- .02
---------------------------------------
Net income $.47 $.33 $.98 $.76
=======================================
Number of shares used in per
share calculations - basic 33,928 37,550 34,613 37,500
=======================================
Income per share (diluted)
From continuing operations $.46 $.31 $.96 $.73
From discontinued operations -- .01 -- .02
---------------------------------------
Net income $.46 $.32 $.96 $.75
=======================================
Number of shares used in per
share calculations - diluted 34,545 38,224 35,196 38,226
=======================================
On January 14, 2004, the Company's Board of Directors declared a
two-for-one stock split effected in the form of a 100% stock dividend
distributed on March 5, 2004 to shareholders of record as of February
20, 2004. All share and per share amounts have been restated to
reflect the retroactive effect of the stock split.
Certain prior period information has been reclassified to conform to
the current year presentation.
Winnebago Industries, Inc.
Unaudited Consolidated Condensed Balance Sheets
(In thousands)
Feb. 28, Aug. 30,
2004 2003
--------- ---------
ASSETS
Current assets
Cash and cash equivalents $56,716 $99,381
Receivables 41,165 30,885
Inventories 137,383 114,282
Other 14,027 12,741
-------------------
Total current assets 249,291 257,289
Property and equipment, net 63,412 63,318
Deferred income taxes 23,165 22,491
Investment in life insurance 22,421 22,794
Other assets 12,891 11,570
-------------------
Total assets $371,180 $377,462
===================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $50,598 $52,239
Income taxes payable 6,060 --
Accrued expenses 52,368 40,159
-------------------
Total current liabilities 109,026 92,398
Post retirement health care and deferred
compensation benefits 78,523 74,438
Stockholders' equity 183,631 210,626
-------------------
Total liabilities and stockholders' equity $371,180 $377,462
===================
Winnebago Industries, Inc.
Unaudited Condensed Consolidated Statement of Cash Flows
(Dollars in thousands)
Six Months Ended
2/28/2004 3/1/2003
--------- --------
Cash flows from operating activities
Net income $33,947 $28,587
Income from discontinued operations -- (819)
--------- --------
Income from continuing operations 33,947 27,768
Adjustments to reconcile net income to net cash
provided by operating activities
Depreciation and amortization 4,759 4,017
Tax benefit of stock options 2,328 867
Other 504 389
Change in assets and liabilities
(Increase) decrease in receivable and other
assets (11,446) 10,479
Increase in inventories (23,101) (13,751)
Increase in deferred income taxes (2,248) (1,412)
Increase (decrease) in accounts payable and
accrued expenses 10,568 (1,604)
Increase in income taxes payable 7,485 1,737
Increase in postretirement benefits 2,891 2,343
--------- --------
Net cash provided by continuing operations 25,687 30,833
Net cash provided by discontinued operations -- 8
--------- --------
Net cash provided by operating activities 25,687 30,841
--------- --------
Cash flows used in investing activities
Purchases of property and equipment (4,967) (17,559)
Other (115) (1,458)
--------- --------
Net cash used in continuing operations (5,082) (19,017)
Net cash used in discontinued operations -- (4,255)
--------- --------
Net cash used in investing activities (5,082) (23,272)
--------- --------
Cash flows used in financing activities and capital
transactions
Payments for purchase of common stock (63,979) (10,521)
Payment of cash dividends (3,517) (1,887)
Proceeds from issuance of common and treasury
stock 4,226 2,121
--------- --------
Net cash used in financing activities and capital
transactions (63,270) (10,287)
---------- --------
Net decrease in cash and cash equivalents (42,665) (2,718)
Cash and cash equivalents-beginning of period 99,381 42,225
--------- --------
Cash and cash equivalents-end of period $56,716 $39,507
========= ========
Winnebago Industries, Inc.
Unaudited Motor Home Deliveries
(Volume in Units)
Quarter Ended Six Months Ended
2/28/2004 3/1/2003 2/28/2004 3/1/2003
-----------------------------------------
Unit deliveries
Class A gas 1,268 1,157 2,610 2,677
Class A diesel 716 366 1,245 773
Class C 1,038 736 2,129 1,734
-----------------------------------------
Total deliveries 3,022 2,259 5,984 5,184
Winnebago Industries, Inc.
Unaudited Backlog and Dealer Inventory
(Volume in Units)
As of
2/28/2004 3/1/2003
--------------------
Sales order Backlog
Class A gas 1,234 732
Class A diesel 794 297
Class C 905 861
--------------------
Total backlog(a) 2,933 1,890
Dealer inventory 5,359 4,944
(a) The Company includes in its backlog all accepted orders from
dealers shippable within the next six months. Orders in backlog can be
cancelled or postponed at the option of the purchaser at any time
without penalty and, therefore, backlog may not necessarily be an
accurate measure of future sales.
