Winnebago Industries Reports Surge in Second Quarter Profits
FOREST CITY, Iowa--March 20, 2002--Winnebago Industries, Inc. , today reported net income of $9.4 million for the second quarter ended March 2, 2002, a 52.8 percent increase compared to net income of $6.2 million for the second quarter of fiscal 2001. On a per share basis, the Company earned 45 cents per diluted share for the second quarter of fiscal 2002, a 50 percent increase compared to 30 cents per diluted share for the second quarter last year.Revenues for the second quarter of fiscal 2002 were $184.2 million, a 29.2 percent increase compared to revenues of $142.5 million for the second quarter in fiscal 2001.
"We believe that lower interest rates and improvements in economic conditions favorably affected demand for Winnebago Industries' motor homes, which in turn contributed to the increased revenues and earnings for the Company's second quarter," said Winnebago Industries' Chairman, CEO and President Bruce D. Hertzke. "Further contributing to our favorable results was the strong interest in our new 2002 motor homes, particularly our newly introduced Winnebago Sightseer and Itasca Sunova Class A models, as well as the new Winnebago Vista and Itasca Sunstar Class C motor homes. The acceptance of our products is demonstrated by our continued market share growth. According to Statistical Surveys, Inc., the recreation vehicle registration reporting firm, Winnebago Industries completed calendar 2001 with combined Class A and C retail market share of 19.1 percent, and January 2002 results continue to show Winnebago Industries as the leading motor home manufacturer with 20.5 percent market, compared to 18.7 percent in January 2001."
Net income for the first 27 weeks of fiscal 2002 was $20.2 million, a 27.7 percent increase when compared to the income of $15.8 million before the cumulative effect of the change in accounting method for the first 26 weeks of fiscal 2001. On a per share basis, the Company earned 95 cents per diluted share for the first 27 weeks of fiscal 2002, a 26.7 percent increase compared to 75 cents per diluted share before the cumulative effect of the accounting method change for the first 26 weeks of fiscal 2001.
For the 27 weeks of fiscal 2002, the Company reported revenues of $363.3 million, an 18.4 percent increase compared to $306.7 million for the first 26 weeks of 2001.
For the second quarter ended March 2, 2002, Winnebago Industries reported factory shipments of 1,470 Class A and 978 Class C motor homes, compared to shipments of 1,127 Class A and 677 Class C motor homes for the second quarter last year. Class A motor home shipments included 404 diesel units, compared to 386 diesel unit shipments in the second quarter last year. Conversions of Class B EuroVan Campers for Volkswagen of America were 157 for the second quarter of fiscal 2002 compared to 34 for the second quarter last year. Winnebago Industries' sales order backlog for Class A & C motor homes was 3,206 on March 2, 2002, a 108 percent increase compared to 1,542 on February 24, 2001.
About Winnebago Industries
Winnebago Industries, Inc. is the 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. The Company believes its products are subjected to the most rigorous quality testing in the RV 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. Visit Winnebago Industries' web site at www.winnebagoind.com. 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 common stock, visit, www.winnebagoind.com/investor_relations.htm.
This press release contains 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, slower than anticipated sales of new or existing products, new products introduced by competitors, collections of dealer receivables 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 27 Weeks 26 Weeks
Ended Ended
3/2/2002 2/24/2001 3/2/2002 2/24/2001
Net revenues $184,169 $142,531 $363,282 $306,698
Cost of goods sold 160,117 125,529 313,687 267,449
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Gross profit 24,052 17,002 49,595 39,249
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Operating expenses:
Selling 5,607 5,306 11,735 11,409
General and administrative 5,031 3,146 9,135 5,910
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Total operating expenses 10,638 8,452 20,870 17,319
--------------------------------------
Operating income 13,414 8,550 28,725 21,930
Financial income 912 901 1,804 1,872
--------------------------------------
Income before taxes and
cumulative effect of a change
in accounting method 14,326 9,451 30,529 23,802
Provision for taxes 4,878 3,267 10,371 8,022
--------------------------------------
Income before cumulative effect
of a change in accounting
method 9,448 6,184 20,158 15,780
Cumulative effect on prior years
of the accounting method change - - - (1,050)
--------------------------------------
Net income $9,448 $6,184 $20,158 $14,730
======================================
Basic earnings per share:
Income before cumulative
effect of a change in
accounting method $.46 $.30 $.97 $.76
Cumulative effect on prior
years of the accounting
method change - - - (.05)
--------------------------------------
Net income $.46 $.30 $.97 $.71
======================================
Number of shares used in per
share calculations-basic 20,760 20,576 20,715 20,839
======================================
Diluted earnings per share:
Income before cumulative
effect of a change in
accounting method $.45 $.30 $.95 $.75
Cumulative effect on prior
years of the accounting
method change - - - (.05)
--------------------------------------
Net income $.45 $.30 $.95 $.70
======================================
Number of shares used in per
share calculations-diluted 21,215 20,882 21,157 21,082
======================================
Certain prior year information has been reclassified to conform to the
current year presentation with no effect on operating income or net
income.
Winnebago Industries, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
Mar. 2, Aug. 25,
2002 2001
-------- --------
(Unaudited)
ASSETS
Current assets
Cash $134,477 $102,280
Receivables 59,943 61,834
Inventories 83,131 79,815
Other 14,898 10,327
-------- --------
Total current assets 292,449 254,256
Property and equipment, net 46,060 46,536
Deferred income taxes 21,495 21,495
Other assets 31,465 29,635
-------- --------
Total assets $391,469 $351,922
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 44,694 $ 40,678
Income taxes payable 12,149 4,938
Accrued expenses 39,184 34,392
-------- --------
Total current liabilities 96,027 80,008
Post retirement health care and
deferred compensation benefits 67,284 64,450
Stockholders' equity 228,158 207,464
-------- --------
Total liabilities and stockholders' equity $391,469 $351,922
======== ========
Certain prior year information has been reclassified to conform to the
current year presentation with no effect on operating income, net
income or shareholders' equity.