Winnebago Industries Announces Surge in Operating Income for First Quarter
17 December 1997
Winnebago Industries Announces Surge in Operating Income for First QuarterFOREST CITY, Iowa, Dec. 17 -- Revenues of $125.9 million were reported today by Winnebago Industries, Inc. , for the first quarter of fiscal 1998 ended November 29, 1997, an increase of 10.5 percent when compared to revenues of $113.9 million for the first quarter last year. Income from continuing operations for the first quarter of fiscal 1998 was $5.3 million, or 21 cents per share, an increase of 97 percent when compared to $2.7 million, or 11 cents per share, for the first quarter last year. The sale of the Company's Cycle-Sat, Inc. subsidiary resulted in a gain of $16.5 million, or 65 cents per share, in the first quarter of fiscal 1997. Including this gain, net income was $19.2 million, or 76 cents per share, for the quarter ended November 30, 1996. According to Winnebago Industries Chairman and Chief Executive Officer Fred G. Dohrmann, "We are extremely pleased with the results of our first quarter and feel it is testimony to the Company's strategic direction to focus on the manufacturing of recreation vehicles (RVs). This has led to the introduction of a highly successful line of new products for 1998. Following the softness of the RV market in fiscal 1997, we have seen replenishment of dealer inventory in the first quarter. Dealer inventory rose over 10 percent in the first quarter versus the fourth quarter of fiscal 1997. In addition, we feel the dramatic increase in sales orders provides a vote of confidence from our dealers in our new 1998 products." "A strong positive reaction to our new products was experienced at the recent industry trade show in Louisville, Kentucky," said Bruce D. Hertzke, Winnebago Industries President and Chief Operating Officer. "Orders received at the show were more than double those received last year. Combined with orders already on hand, the Company is experiencing one of the best new product launches in its history." Also at the Louisville Show, the Company announced a new brand licensing program with Chariot Eagle, Inc. for Winnebago Park Homes. (Park model homes are non-motorized vacation homes built on a single chassis and mounted on wheels. They are typically set up in destination retirement and vacation communities.) The Winnebago park model homes are built and marketed by Chariot Eagle under a brand licensing agreement with Winnebago Industries. "This licensing of our well-known Winnebago brand name will provide additional revenue, allowing us to keep motor home prices as competitive as possible, while creating added exposure and awareness of the brand name," said Hertzke. "Chariot Eagle is one of the largest builders in the park model industry. They are recognized as producing one of the better built park model homes on the market and were chosen for this venture because their quality is consistent with Winnebago Industries own emphasis on high quality standards." Chariot Eagle operates manufacturing facilities in Phoenix, Ariz., and Ocala, Fla. The new Winnebago Park homes will be sold through dealers throughout the U.S. Winnebago Industries, Inc. is a 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. These products conform to what the Company believes to be the most rigorous testing in the recreation vehicle 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. Winnebago Industries' press releases are available through Company News On-Call by fax, 800-758-5804, ext. 105967, or on-line at http://www.prnewswire.com . Visit Winnebago Industries' Web site at http://www.winnebagoind.com/ Winnebago Industries, Inc. Consolidated Statement of Operations (Thousands except per share amounts) Thirteen Weeks Ended 11/29/97 11/30/96 Net revenues $125,896 $113,892 Cost of goods sold 107,473 98,813 Gross profit 18,423 15,079 Operating expenses: Selling and delivery 5,729 6,338 General and admin. 5,266 4,885 Total operating exp. 10,995 11,223 Operating income 7,428 3,856 Financial income 613 369 Pretax income from continuing operations 8,041 4,225 Provision for taxes 2,703 1,519 Income from continuing operations 5,338 2,706 Gain from the sale of discontinued Cycle-Sat operations (less applicable income tax provisions of $13,339) -- 16,472 Net income $5,338 $19,178 Income per common share: Continuing operations $.21 $.11 Discontinued operations: Gain from the sale of Cycle-Sat -- .65 Net income $.21 $.76 Weighted average number of shares and equivalents outstanding 25,481 25,379 SOURCE Winnebago Industries, Inc.