Winnebago Industries Reports Third Quarter/Nine Months Results
FOREST CITY, Iowa--June 20, 2001--Winnebago Industries, Inc. , one of the nation's leading motor home manufacturers, today announced revenues for the Company's third quarter and first nine months. Revenues for the third quarter ended May 26, 2001, were $197.0 million, compared to revenues of $214.1 million for the same quarter last year. Net income for the third quarter of fiscal 2001 was $12.4 million, compared to the net income of $16.3 million for the third quarter of fiscal 2000, while on a per share basis, the Company earned 60 cents per diluted share, compared to 74 cents per diluted share for the same period last year.Revenues for the nine months ended May 26, 2001 were $503.7 million, compared to revenues of $588.6 million for the first nine months in fiscal 2000. Net income for the nine month period ended May 26, 2001 before the cumulative effect of the change in accounting method was $28.2 million, compared to net income of $40.5 million for the comparable period in fiscal 2000, while on a per share basis, the Company earned $1.34 per diluted share before the cumulative effect of the change in accounting method, compared to $1.83 per diluted share, for the comparable period in fiscal 2000. The change in accounting method was a result of the adoption of the Securities and Exchange Commission's (SEC) Staff Accounting Bulletin No. 101 ("SAB 101") - Revenue Recognition in Financial Statements.
"While lagging last year's record results, we are very encouraged by our results compared to the RV industry in general," said Winnebago Industries Chairman, CEO and President Bruce Hertzke. "With the recent series of interest rate reductions, stabilization of fuel prices and increase in consumer confidence levels, we anticipate improvement in market conditions throughout the remainder of the calendar year. Long- term prospects for Winnebago Industries and the RV industry remain extremely positive. Demographic studies show that our prime target market of people age 50 and older is growing by approximately 350,000 each month and will continue to grow at this rate for the next 20 years. Winnebago Industries should especially benefit from this influx of consumers because of the Company's strong brand name recognition and reputation for high-quality products."
"We are also encouraged that according to Statistical Surveys, Inc., an independent retail reporting service, Winnebago Industries' retail market share continues to grow," said Hertzke. "We are extremely pleased to report that Winnebago Industries is the RV industry leader in total Class A & C retail motor home sales with market share of 18.2 percent for the first four months of calendar 2001 compared to 17.1 percent for the same period in calendar 2000. This upward trend began in calendar year 1997, at which time Winnebago Industries' share of the Class A & C retail market was at 15.8 percent. We believe the continued increase in market share is due to the excellent acceptance of our products, the strongest brand name in the industry, the best dealers and increased recognition of our strong quality reputation."
For the third quarter ended May 26, 2001, Winnebago Industries reported factory shipments of 1,641 Class A and 1,046 Class C motor homes, compared to 1,944 Class A and 1,089 Class C motor homes for the third quarter last year. Class A motor home shipments included 393 diesel units, compared to 342 diesel units in the third quarter last year. Conversions of Class B EuroVan Campers for Volkswagen of America were 264 units for the third quarter of fiscal 2001 compared to 271 units for the third quarter last year. Winnebago Industries' motor home sales order backlog at the end of the third quarter on May 26, 2001 was approximately 1,200 units versus approximately 1,800 units on order at the end of the third quarter last year.
Winnebago Industries, Inc.
Unaudited Consolidated Statements of Income
(in thousands except per share amounts)
Quarter Ended Nine Months Ended
5/26/01 5/27/00 5/26/01 5/27/00
Net revenues $197,005 $214,070 $503,703 $588,584
Cost of goods sold 169,019 179,493 436,068 496,287
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Gross profit 27,986 34,577 67,635 92,297
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Operating expenses:
Selling 5,959 6,744 17,768 18,956
General and administrative 3,929 4,120 9,839 14,565
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Total operating expenses 9,888 10,864 27,607 33,521
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Operating income 18,098 23,713 40,028 58,776
Financial income 922 831 2,794 2,389
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Income before taxes and
cumulative effect of a change
in accounting method 19,020 24,544 42,822 61,165
Provision for taxes 6,576 8,287 14,598 20,676
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Income before cumulative effect
of a change in accounting
method 12,444 16,257 28,224 40,489
Cumulative effect on prior
years of the accounting method
change -- -- (1,050) --
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Net income $ 12,444 $ 16,257 $ 27,174 $ 40,489
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Earnings per share-basic:
Income before cumulative
effect of a change in
accounting method $ 0.61 $ 0.76 $ 1.36 $ 1.86
Cumulative effect on prior
years of the accounting
method change -- -- (0.05) --
---------------------------------------
Net income $ 0.61 $ 0.76 $ 1.31 $ 1.86
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Number of shares used in per
share calculations-basic 20,566 21,531 20,748 21,808
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Earnings per share-diluted:
Income before cumulative
effect of a change in
accounting method $ 0.60 $ 0.74 $ 1.34 $ 1.83
Cumulative effect on prior
years of the accounting
method change -- -- (0.05) --
---------------------------------------
Net income $ 0.60 $ 0.74 $ 1.29 $ 1.83
=======================================
Number of shares used in per
share calculations-diluted 20,885 21,848 21,016 22,176
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Fiscal 2000 third quarter and nine month financial results restated on a pro forma basis for the adoption of SAB 101 result in net revenue of $217,511,000, and $587,611,000, respectively, and net income of $16,633,000, and $40,285,000, respectively, or 76 cents and $1.82 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)
May 26, Aug. 26,
2001 2000
----- -----
(Unaudited)
ASSETS
Current assets
Cash $ 93,182 $ 51,443
Receivables 58,320 64,741
Inventories 75,438 85,707
Other 11,591 11,627
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Total current assets 238,531 213,518
Property and equipment, net 46,088 45,455
Deferred income taxes 20,635 20,635
Investment in life insurance 22,013 21,028
Other assets 7,786 8,050
---------------------------
Total assets $ 335,053 $ 308,686
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 23,697 $ 26,212
Income taxes payable 16,454 10,381
Accrued expenses 39,029 35,242
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Total current liabilities 79,180 71,835
Post retirement health care and
deferred compensation benefits 64,709 61,942
Stockholders' equity 191,164 174,909
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Total liabilities and stockholders'
equity $ 335,053 $ 308,686
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