Winnebago Industries Reports Record Results for Fourth Quarter and Fiscal 2002
FOREST CITY, Iowa--Oct. 9, 2002--Winnebago Industries, Inc. , the world's leading motor home manufacturer, today reported record revenues and earnings for the Company's fourth quarter and fiscal year, which ended August 31, 2002.Record revenues of $220.9 million for the fourth quarter of fiscal 2002 increased 25.3 percent over revenues of $176.3 million for the fourth quarter last year.
Net income and diluted income per share for the Company's fourth quarter of fiscal 2002 were a record $16.4 million, or 86 cents per share, compared to $15.5 million and 74 cents for the fourth quarter last year. Net income and diluted income per share for the fourth quarter of fiscal 2002 increased 49 percent and 65.4 percent respectively compared to the prior year fourth quarter proforma results of $11.0 million net income, or 52 cents per diluted share, which exclude the $4.5 million one time tax benefit.
The Company's revenues for fiscal 2002 (53 weeks) were a record $828.4 million, a 22.6 percent increase compared to revenues of $675.9 million for the previous fiscal year (52 weeks).
Net income and diluted income per share for fiscal 2002 were a record $54.7 million, or $2.68 per share, compared to $42.7 million and $2.03 for the previous fiscal year. Net income and diluted income per share for fiscal 2002 increased 43.2 percent and 47.3 percent respectively compared to the prior year proforma results of $38.2 million net income and $1.82 per diluted share, which excludes the one time tax benefit.
"We are encouraged by the continued growth in the Company's fourth quarter and fiscal 2002 revenues and net income," said Winnebago Industries Chairman, CEO and President Bruce Hertzke. "We believe this growth is a result of low interest rates, the continued acceptance of our new products, the solid performance of our dealer partners, our brand awareness and high quality reputation. I'd also like to recognize our employees' efforts for working overtime since January 2002 to meet increased demand."
The increased demand for the Company's motor homes led to further market share growth. According to Statistical Surveys, Inc., an independent retail reporting service, Winnebago Industries' retail market share of the total Class A and C motor home market leads the industry at 21.1 percent for the calendar year to date through July, compared to 18.8 percent for the same period in calendar 2001. This upward trend began in calendar year 1997 when Winnebago Industries' share of the Class A and C retail market was 15.8 percent as of the end of the year.
"Long-term demographics are in our favor as our target market of consumers age 50 and older is anticipated to nearly double within the next 30 years," said Hertzke. In addition to growth due to the aging of the baby boom generation, a study conducted by the University of Michigan shows that the age of people interested in purchasing recreation vehicles (RVs) is also expanding to include younger buyers under 35 years of age as well as older buyers over age 75 who are staying healthy and active much later in life. This RV industry study also shows an increased interest in owning RVs by a larger percentage of all U.S. households.
"Winnebago Industries has three favorable trends which we believe will help us grow into the future: positive demographic growth, Winnebago Industries' market share growth, as well as anticipated improvement in the U.S. economy," continued Hertzke. "Winnebago Industries intends to meet increases in the demand for its product through plant expansion. Work is proceeding on the new manufacturing plant that is being built in Charles City, Iowa. Motor home production in the new facility is anticipated to begin by early 2003 with a ramp-up of production throughout the remainder of the fiscal year."
For the fourth quarter ended August 31, 2002, Winnebago Industries reported factory shipments of 1,783 Class A and 1,151 Class C motor homes, compared to 1,553 Class A and 835 Class C motor homes for the fourth quarter last year, a total increase of 22.9 percent. Class A motor home shipments included 369 diesel units, an increase of 23.4 percent compared to 299 diesel units shipped in the fourth quarter last year. Conversions of Class B EuroVan Campers for Volkswagen of America were 181 units for the fourth quarter of fiscal 2002 compared to 292 units for the fourth quarter last year.
For the fiscal year 2002 ended August 31, 2002, Winnebago Industries reported factory shipments of 6,725 Class A and 4,329 Class C motor homes, compared to 5,666 Class A and 3,410 Class C motor homes last year, a total increase of 21.8 percent. During fiscal 2002, Class A motor home shipments included 1,667 diesel units, a 21.9 percent increase compared to 1,367 diesel units shipped last year. Conversions of Class B EuroVan Campers for Volkswagen of America were 763 units for fiscal 2002 compared to 669 units last year.
Winnebago Industries motor home sales order backlog at the end of the fourth quarter on August 31, 2002 was 3,248 units, a 103.3 percent increase compared to 1,598 units on order at the end of the fourth quarter last year.
As of the end of Winnebago Industries' fiscal year on August 31, 2002, the Company had completed its contract to build the camping conversion for the Class B EuroVan Campers for Volkswagen of America. As anticipated throughout the past year, Winnebago Industries has phased out of EuroVan Camper production, enabling the Company to utilize the workforce formerly dedicated to this project to other motor home production activities within the corporation. Although all production is complete, a limited number of EuroVan Campers will be sold in the first quarter of fiscal 2003.
Stock Repurchase Program
Winnebago Industries has repurchased 119,900 shares of the Company's common stock since June 19, 2002 for $4,293,540 with $10,706,460 remaining on the company's current authorization plan. Since December 1997, Winnebago Industries has repurchased 8,095,764 shares, or 32 percent of the Company's outstanding common stock at that time.
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 new 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.
Consolidated Statements of Income
(in thousands except per share amounts)
Quarter Ended 53 Weeks 52 Weeks
(Unaudited) Ended Ended
8/31/2002 8/25/2001 8/31/2002 8/25/2001
--------- ---------- --------- ----------
Net revenues $220,910 $176,312 $828,403 $675,927
Cost of goods sold 185,797 151,689 708,865 588,561
-----------------------------------------
Gross profit 35,113 24,623 119,538 87,366
-----------------------------------------
Operating expenses:
Selling 6,039 5,409 19,606 18,285
General and administrative 3,891 3,768 18,735 13,607
-----------------------------------------
Total operating expenses 9,930 9,177 38,341 31,892
-----------------------------------------
Operating income 25,183 15,446 81,197 55,474
Financial income 508 960 2,859 3,754
-----------------------------------------
Income before taxes and
cumulative effect of a
change in accounting method 25,691 16,406 84,056 59,228
Provision for taxes 9,272 876 29,385 15,474
-----------------------------------------
Income before cumulative
effect of a Change in
accounting method 16,419 15,530 54,671 43,754
Cumulative effect on prior
years of the accounting
method change - - - (1,050)
-----------------------------------------
Net income $16,419 $15,530 $54,671 $42,704
=========================================
Earnings per share-basic:
Income before cumulative
effect of a change in
accounting method $0.88 $0.75 $2.74 $2.11
Cumulative effect on prior
years of the accounting
method change - - - (0.05)
-----------------------------------------
Net income $0.88 $0.75 $2.74 $2.06
=========================================
Number of shares used in per
share calculations-basic 18,752 20,698 19,949 20,735
=========================================
Earnings per share-diluted:
Income before cumulative
effect of a change in
accounting method $0.86 $0.74 $2.68 $2.08
Cumulative effect on prior
years of the accounting
method change - - - (0.05)
-----------------------------------------
Net income $0.86 $0.74 $2.68 $2.03
=========================================
Number of shares used in per
share calculations-diluted 19,166 21,114 20,384 21,040
=========================================
The reduction in income tax expense in the fourth quarter of fiscal
2001 relates to $4.5 million of tax benefit associated with a capital
loss not previously recorded due to uncertainties of realization that
were resolved.
Certain prior year information has been reclassified to conform to the
current year presentation.
Winnebago Industries, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
Aug. 31, 2002 Aug. 25, 2001
------------- ---------------
ASSETS
Current assets
Cash $42,225 $102,280
Receivables 66,496 61,834
Inventories 113,654 79,815
Other 11,221 10,327
------------------------------
Total current assets 233,596 254,256
Property and equipment, net 48,927 46,536
Deferred income taxes 22,438 21,495
Investment in life insurance 23,602 22,223
Other assets 8,514 7,412
------------------------------
Total assets $337,077 $351,922
==============================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $44,230 $40,678
Income taxes payable 2,610 4,938
Accrued expenses 41,761 34,392
------------------------------
Total current liabilities 88,601 80,008
Post retirement health care and
deferred compensation benefits 68,661 64,450
Stockholders' equity 179,815 207,464
------------------------------
Total liabilities and stockholders'
equity $337,077 $351,922
==============================