Winnebago Industries Reports Record Third Quarter and Nine Months Revenue
FOREST CITY, Iowa--June 17, 2004--Winnebago Industries, Inc. , the nation's leading motor home manufacturer, today reported record revenues from continuing operations for the third quarter ended May 29, 2004 of $310.2 million, an increase of 55 percent when compared to revenues from continuing operations of $200.2 million for the same quarter last year.Net income from continuing operations for the third quarter of fiscal 2004 was $17.7 million, a 97 percent increase compared to $9.0 million for the third quarter of fiscal 2003. On a diluted per share basis, the Company earned 51 cents from continuing operations for the third quarter of fiscal 2004, a 113 percent increase compared to 24 cents for the third quarter last year. Excluding the charge from the previously announced settlement of the Sanft, et al vs. Winnebago Industries, Inc. lawsuit, net income would have been a record $22.3 million, a 148 percent increase compared to the $9.0 million for the third quarter of fiscal 2003. On a diluted per share basis excluding the charge, the Company earned 64 cents per diluted share.
Revenues from continuing operations for the first nine months of fiscal 2004 were a record $831.2 million, a 34 percent increase compared to $619.5 million for the first nine months of fiscal 2003.
Net income from continuing operations for the first nine months of fiscal 2004 was $51.7 million, a 40 percent increase compared to $36.8 million for the first nine months of fiscal 2003. On a diluted per share basis, the Company earned $1.48 from continuing operations for the first nine months of fiscal 2004, a 53 percent increase compared to 97 cents for the first nine months of fiscal 2003.
"Revenues and earnings for the third quarter benefited from increased motor home sales, particularly our diesel product lines," said Winnebago Industries' Chairman, CEO and President Bruce Hertzke. "We were especially pleased with the volume of diesel products sold in the third quarter, which include the Winnebago Journey and Vectra and the Itasca Meridian and Horizon. We experienced a 127 percent increase in diesel motor homes delivered during the third quarter versus the same period a year ago."
Total motor home deliveries were 3,444 units for the third quarter ended May 29, 2004, an increase of 32 percent compared to motor home deliveries of 2,601 for the third quarter last year.
Winnebago Industries is the top selling motor home manufacturer with 18.5 percent of the combined Class A and C market calendar year to date through April, versus 18.3 percent for the same period a year ago.
The Company's sales order backlog was 2,444 units at May 29, 2004, an increase of 72 percent over the backlog of 1,419 units one year ago.
During the third quarter ended May 2, 20049, 2004, Winnebago Industries completed the Company's eighth stock repurchase program with the repurchase of 384,533 shares for an aggregate price of approximately $10.3 million. On a fiscal year to date basis, Winnebago Industries has repurchased 3,284,533 shares for an aggregate price of approximately $74.3 million. As previously announced, the Company's Board of Directors has also authorized a ninth stock repurchase program, authorizing the purchase of outstanding shares of Winnebago Industries' common stock for an aggregate price of up to $30 million.
Winnebago Industries will conduct a conference call in conjunction with this release at 10 a.m. ET today, Thursday, June 17, 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 the Company's website at www.winnebagoind.com or at www.shareholder.com/winnebago/medialist.cfm. 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
Winnebago Industries, Inc.
Unaudited Consolidated Statements of Income
(in thousands except per share amounts)
Quarter Ended Nine Months Ended
5/29/2004 5/31/2003 5/29/2004 5/31/2003
---------- ---------- ---------- ----------
Net revenues $310,186 $200,211 $831,152 $619,516
Cost of goods sold 264,167 177,065 710,639 534,930
---------- ---------- ---------- ----------
Gross profit 46,019 23,146 120,513 84,586
---------- ---------- ---------- ----------
Operating expenses
Selling 4,756 4,652 13,778 13,407
General and
administrative 13,187 4,251 24,964 12,287
---------- ---------- ---------- ----------
Total operating
expenses 17,943 8,903 38,742 25,694
---------- ---------- ---------- ----------
Operating income 28,076 14,243 81,771 58,892
Financial income 366 306 952 1,001
---------- ---------- ---------- ----------
Pre-tax income 28,442 14,549 82,723 59,893
Provision for taxes 10,738 5,554 31,072 23,129
---------- ---------- ---------- ----------
Income from continuing
operations 17,704 8,995 51,651 36,764
Income from discontinued
operations (net of taxes) --- 334 --- 1,152
---------- ---------- ---------- ----------
Net income $17,704 $9,329 $51,651 $37,916
========== ========== ========== ==========
Income per share (basic)
From continuing
operations $0.52 $0.25 $1.50 $0.99
From discontinued
operations --- 0.01 --- 0.03
---------- ---------- ---------- ----------
Net income $0.52 $0.26 $1.50 $1.02
========== ========== ========== ==========
Number of shares used in
per share calculations -
basic 33,963 36,514 34,396 37,172
========== ========== ========== ==========
Income per share (diluted)
From continuing
operations $0.51 $0.24 $1.48 $0.97
From discontinued
operations --- 0.01 --- 0.03
---------- ---------- ---------- ----------
Net income $0.51 $0.25 $1.48 $1.00
========== ========== ========== ==========
Number of shares used in
per share calculations-
diluted 34,525 37,098 34,972 37,850
========== ========== ========== ==========
On January 14, 2004, the Company's Board of Directors declared a
two-for-one stock split effected in the form of a 100 percent 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 Condensed Consolidated Balance Sheets
(In thousands)
May 29, Aug. 30,
2004 2003
--------- ---------
ASSETS
Current assets
Cash and cash equivalents $95,521 $99,381
Receivables 26,792 30,885
Inventories 127,273 114,282
Other 14,615 12,741
--------- ---------
Total current assets 264,201 257,289
Property and equipment, net 63,644 63,318
Deferred income taxes 25,833 22,491
Investment in life insurance 22,706 22,794
Other assets 12,484 11,570
--------- ---------
Total assets $388,868 $377,462
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $48,483 $52,239
Income taxes payable 6,289 ---
Accrued expenses 58,735 40,159
--------- ---------
Total current liabilities 113,507 92,398
Post retirement health care and deferred
compensation benefits 85,717 74,438
Stockholders' equity 189,644 210,626
--------- ---------
Total liabilities and stockholders' equity $388,868 $377,462
========= =========
Winnebago Industries Inc.
Unaudited Condensed Consolidated Statement of Cash Flows
(Dollars in thousands)
Nine Months
5/29/2004 5/31/2003
---------- ----------
Cash flows from operating activities
Net income as shown on the statement of
income $51,651 $37,916
Income from discontinued operations --- (1,152)
---------- ----------
Income from continuing operations 51,651 36,764
Adjustments to reconcile net income to net cash
provided by operating activities
Depreciation and amortization 7,173 6,395
Tax benefit of stock options 2,328 955
Other 617 325
Change in assets and liabilities
Decrease in receivable and other assets 2,843 3,994
Increase in inventories (12,991) (1,430)
Increase in deferred income taxes (5,483) (2,502)
Increase in accounts payable and accrued
expenses 14,820 8,265
Increase (decrease) in income taxes payable 7,714 (1,783)
Increase in postretirement benefits 10,222 3,680
---------- ----------
Net cash provided by continuing operations 78,894 54,663
Net cash provided by discontinued operations --- 234
---------- ----------
Net cash provided by operating activities 78,894 54,897
---------- ----------
Cash flows (used in) provided by investing
activities
Purchases of property and equipment (7,656) (21,539)
Other (137) (1,534)
---------- ----------
Net cash used in continuing operations (7,793) (23,073)
Net cash provided by discontinued operations --- 38,423
---------- ----------
Net cash (used in) provided by investing
activities (7,793) 15,350
---------- ----------
Cash flows used in financing activities and
capital transactions
Payments for purchase of common stock (74,268) (20,221)
Payment of cash dividends (5,217) (1,887)
Proceeds from issuance of common and treasury
stock 4,524 2,383
---------- ----------
Net cash used in financing activities and
capital transactions (74,961) (19,725)
---------- ----------
Net (decrease) increase in cash and cash
equivalents (3,860) 50,522
Cash and cash equivalents-beginning of period 99,381 42,225
---------- ----------
Cash and cash equivalents-end of period $95,521 $92,747
========== ==========
Winnebago Industries, Inc.
Unaudited Motor Home Deliveries
(Volume in Units)
Quarter Ended Nine Months Ended
5/29/2004 5/31/2003 5/29/2004 5/31/2003
---------- ---------- ---------- ----------
Unit deliveries
Class A gas 1,378 1,068 3,988 3,745
Class A diesel 900 397 2,145 1,170
Class C 1,166 1,136 3,295 2,870
---------- ---------- ---------- ----------
Total deliveries 3,444 2,601 9,428 7,785
Winnebago Industries, Inc.
Unaudited Backlog and Dealer Inventory
(Volume in Units)
5/29/2004 5/31/2003
---------- ----------
Sales order backlog
Class A gas 1,100 794
Class A diesel 532 147
Class C 812 478
---------- ----------
Total backlog(a) 2,444 1,419
Dealer inventory 5,173 4,561
(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.
