Winnebago Industries Reports Results for the Q2 and First Six Months
FOREST CITY, Iowa--March 14, 2001---- Stock Repurchase Program Announced & Dividend Declared --
Winnebago Industries, Inc., one of the nation's leading motor home manufacturers, today reported revenues of $142.5 million for its second quarter ended February 24, 2001. This compares to revenues of $189.6 million for the second quarter in fiscal 2000. Net income for the second quarter of fiscal 2001 was $6.2 million, compared to $11.9 million for the second quarter of fiscal 2000; while on a per share basis, the Company earned 30 cents per diluted share for the second quarter of fiscal 2001, compared to 54 cents per diluted share for the second quarter last year.
For the first six months of fiscal 2001, the Company reported revenues of $306.7 million, compared to $374.5 million for the first six months of 2000. Net income for the first six months of fiscal 2001 before the cumulative effect of the change in accounting method was $15.8 million, compared to the net income of $24.2 million reported for the first six months of fiscal 2000. Net income for the first six months of fiscal 2001 after the cumulative effect of the change in accounting method was $14.7 million. On a per share basis, the Company earned 70 cents per diluted share after the cumulative effect of the accounting method change for the first half of fiscal 2001, compared to $1.08 per diluted share for the first half of fiscal 2000.
For the second quarter ended February 24, 2001, Winnebago Industries reported factory shipments of 1,127 Class A and 677 Class C motor homes, compared to 1,699 Class A and 893 Class C motor homes for the second quarter last year. Class A motor home shipments included 386 diesel units, compared to 472 diesel unit shipments in the second quarter last year. Conversions of Class B EuroVan Campers for Volkswagen of America were 34 for the second quarter of fiscal 2001 compared to 228 for the second quarter last year. This reduction in Class B conversions was the result of VW's delayed introduction of its newly repowered EuroVan.
"The Company's expectations for the remainder of the fiscal year remain below prior year levels as a result of economic factors such as higher interest rates and decreased consumer confidence levels," said Winnebago Industries Chairman, CEO and President Bruce D. Hertzke. Winnebago Industries' sales order backlog for Class A & C motor homes was 1,542 on February 24, 2001, compared to 2,537 on February 26, 2000.
Hertzke continued, "Even though the Company's earnings are lower than our record results last year, Winnebago Industries continues to be very profitable with a strong balance sheet and no long-term debt. Winnebago Industries has also been able to continue to gain market share, growing from 15.8% of the Class A & C retail market for calendar 1997 to 17.1% for calendar 2000. In addition, Statistical Surveys, Inc. today reported retail motor home sales in January 2001 show Winnebago Industries as the top selling motor home manufacturer with 18.8% market share versus 16.8% last year. We are also very encouraged by the recent decision by the Federal Reserve Board to lower interest rates, as well as the apparent stabilization of energy prices."
Although current economic conditions are impacting short-term results, the long-term outlook for motor home sales continues to appear very favorable. Demographic studies for the United States show continued growth of the recreation vehicle industry's prime target market for the next 30 years.
"We continue to put an emphasis on new product development," said Hertke. "The introduction of the 2002 front-wheel-drive, fuel efficient Rialta motor home with 44% higher horsepower will occur later this month at the Great North American RV Rally to be held in Perry, GA. The new Rialta is the beginning of a very strong product lineup for 2002 with exciting new products to meet the ever-changing demands of today's consumers."
Cash Dividend and Stock Repurchase Program Announced
The Board of Directors of Winnebago Industries today declared a cash dividend of ten cents a share, payable on July 9, 2001 to shareholders of record as of June 8, 2001.
In addition, Winnebago Industries' Board also authorized the repurchase of outstanding shares of the Company's Common Stock for an aggregate purchase price of up to $15 million. This is the fifth stock repurchase program to be announced within the last four years. Since December 1997, Winnebago Industries has repurchased 5,657,864 shares, or 22.2 percent of the Company's outstanding common stock at that time.
The last stock repurchase program authorized by the Board in March 2000 was recently completed, resulting in the repurchase of 1,163,766 shares for $14,999,423. Winnebago Industries Common Shares outstanding as of March 5, 2001 were 20,599,865.
"We believe Winnebago Industries' stock is an excellent value in today's market and the stock repurchase will continue to enhance the Company's value for our shareholders," said Hertzke. "These actions are an indication of the Board's confidence in the Company and Winnebago Industries' continued strength within the RV industry."
Winnebago Industries, Inc.
Unaudited Consolidated Statements of Income
(in thousands except per share amounts)
Quarter Ended Six Months Ended
2/24/2001 2/26/2000 2/24/2001 2/26/2000
Net revenues $142,531 $189,568 $306,698 $374,514
Cost of goods sold 125,365 160,997 267,049 316,794
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Gross profit 17,166 28,571 39,649 57,720
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Operating expenses:
Selling 5,470 5,723 11,809 12,212
General and administrative 3,146 5,845 5,910 10,445
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Total operating
expenses 8,616 11,568 17,719 22,657
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Operating income 8,550 17,003 21,930 35,063
Financial income 901 905 1,872 1,558
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Income before taxes
and cumulative effect of a
change in accounting
method 9,451 17,908 23,802 36,621
Provision for taxes 3,267 6,057 8,022 12,389
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Income before cumulative
effect of a change in
accounting method 6,184 11,851 15,780 24,232
Cumulative effect on prior
years of the accounting
method change - - (1,050) -
-------------------------------------------
Net income $6,184 $11,851 $14,730 $24,232
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Earnings per share-basic:
Income before cumulative
effect of a change in
accounting method $0.30 $0.54 $0.76 $1.10
Cumulative effect on prior
years of the accounting
method change - - (0.05) -
-------------------------------------------
Net income $0.30 $0.54 $0.71 $1.10
===========================================
Number of shares used in
per share
calculations-basic 20,576 21,765 20,839 21,946
===========================================
Earnings per share-diluted:
Income before cumulative
effect of a change in
accounting method $0.30 $0.54 $0.75 $1.08
Cumulative effect on prior
years of the accounting
method change - - (0.05) -
-------------------------------------------
Net income $0.30 $0.54 $0.70 $1.08
===========================================
Number of shares used in
per share
calculations-diluted 20,882 22,134 21,082 22,339
===========================================
Fiscal 2000 second quarter and six month financial results restated on a pro forma basis for the adoption of SAB 101 result in net revenue of $183,004,000 and $370,100,000 respectively and net income of $11,216,000, and $23,652,000 respectively, or 51 cents and $1.06 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)
Feb. 24, 2001 Aug. 26, 2000
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(Unaudited)
ASSETS
Current assets
Cash $ 58,034 $ 51,443
Receivables 55,472 64,741
Inventories 89,160 85,707
Other 14,876 11,627
-------------- -------------
Total current assets 217,542 213,518
Property and equipment, net 46,516 45,455
Deferred income taxes 20,635 20,635
Other assets 29,450 29,078
-------------- -------------
Total assets $ 314,143 $ 308,686
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 21,478 $ 26,212
Income taxes payable 16,917 10,381
Accrued expenses 32,506 35,242
-------------- -------------
Total current liabilities 70,901 71,835
Post retirement health care and
deferred compensation benefits 63,610 61,942
Stockholders' equity 179,632 174,909
-------------- -------------
Total liabilities and
stockholders' equity $ 314,143 $ 308,686
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