Winnebago Industries Reports First Quarter Results
FOREST CITY, Iowa--Dec. 18, 2002---- Record First Quarter Revenues and Operating Income --
Winnebago Industries, Inc., , the leading United States (U.S.) motor home manufacturer, today reported results for the first quarter of fiscal 2003 which ended November 30, 2002. Revenues were a record $234.1 million for the 13-week first quarter, an increase of 31.7 percent over revenues of $177.8 million for the first quarter of fiscal 2002 (14 weeks).
Net income for the first quarter of fiscal 2003 was $16.3 million, an increase of 52.0 percent compared to net income of $10.7 million for the first quarter last year. Net income per diluted share for the first quarter of fiscal 2003 was 85 cents, a 66.7 percent increase, compared to 51 cents per diluted share in the first quarter one year ago. The Company's operating income for the first quarter of fiscal 2003 was also a record $26.0 million, a 69.7 percent increase compared to $15.3 million for the first quarter last year.
"We are pleased with the continued growth in the Company's first quarter earnings," said Winnebago Industries' Chairman, CEO and President Bruce D. Hertzke. "The positive results were due to the excellent acceptance of the company's new 2003 motor homes, the continued low interest rate environment and our strong dealer partners.
"We were also very pleased with the results of the recent National RV Show in Louisville, KY, and with the very positive dealer response to our new products, particularly the introduction of new 39-foot floorplans and full-body paint to our mid-priced diesel Winnebago Journey DL and Itasca Horizon, as well as the addition of a 33-foot model to our affordable Winnebago Sightseer and Itasca Sunova lines."
Also at the Louisville Show, Winnebago Industries accepted the prestigious Quality Circle Award from the Recreation Vehicle Dealer Association. Hertzke noted, "Our focus on high quality standards by our dedicated workforce was instrumental in receiving this award." Winnebago Industries was the only manufacturer in the top six motor home manufacturers to receive the award again this year and the only motor home manufacturer to receive the award for all seven years of its existence. Dealers throughout the country rated Winnebago Industries as the top motor home manufacturer in 15 of the 21 categories.
"We are pleased to report that after running nine months of overtime at our factories, we have been able to reduce our sales order backlog to a more normal level," said Hertzke. Winnebago Industries sales order backlog of combined Class A and C motor homes was 1,950 on November 30, 2002, an increase of 23.5 percent over the sales order backlog of 1,579 at the end of the first quarter last year, but down from the 3,248 backlog reported on August 31, 2002.
Hertzke continued, "This reduction in order backlog results from our ability to fill orders in a more timely manner and more specifically, we are shipping our motor homes to dealers within a six to eight week period following the input of an order rather than nearly twice that level at the end of fiscal 2002."
"It should also be noted that dealer inventory levels of the Company's products have increased to 4,602 units on November 30, 2002 from 4,000 on August 31, 2002. This increase can be attributed to a number of factors. Many dealers sensing strong demand for Winnebago Industries' products don't want to be 'caught short' as they were last year. It was apparent to us from visiting with dealers at the Louisville Show that the value of the Winnebago Industries' product lines to our dealer partners has never been higher and there is definitely optimism about the forthcoming year."
The Company's focus on product development and high quality standards continues to earn Winnebago Industries the number one position in retail motor home sales, as well as continued market share growth. According to Statistical Surveys, Inc., the RV retail registration reporting firm, Winnebago Industries is the leading motor home manufacturer with 20.7 percent of the combined Class A and C retail market nationally calendar year to date through October 2002. This is a 9.5 percentage increase in market share from the 18.9 percent market share achieved by Winnebago Industries for the same period last year.
For the first quarter ended November 30, 2002, Winnebago Industries reported factory shipments of 1,927 Class A and 998 Class C motor homes, compared to 1,507 Class A and 810 Class C motor homes for the first quarter last year. Factory shipments of the discontinued Class B (Volkswagen EuroVan Camper) motor homes for Winnebago Industries were 142 for the first quarter of fiscal 2003 compared to 197 for the first quarter last year.
Outlook
"We are encouraged by the excellent acceptance of our products in the marketplace, and the continued low interest rate environment," said Hertzke. "The long-term outlook for motor home sales continues to appear very favorable." Studies show that the Company's prime target market of people 50 years of age and older will continue to increase by over 4 million a year in the U.S. through the year 2030. "In order to grow with the market, our new Charles City plant expansion is on schedule to be complete in early 2003. Limited motor home production will begin in the February/March timeframe with a ramp-up of production throughout the remainder of fiscal 2003," said Hertzke.
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. The Company builds quality motor homes under the Winnebago, Itasca, Rialta and Ultimate brand names with state-of-the-art computer-aided design and manufacturing systems on automotive-styled assembly lines. 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. 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 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 financing 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)
Thirteen Weeks Fourteen Weeks
Ended Ended
Nov. 30, 2002 Dec. 1, 2001
Net revenues $234,089 $177,802
Cost of goods sold 198,275 153,570
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Gross profit 35,814 24,232
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Operating expenses
Selling 4,687 4,817
General and administrative 5,137 4,104
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Total operating expenses 9,824 8,921
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Operating income 25,990 15,311
Financial income 181 892
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Pre-tax income 26,171 16,203
Provision for taxes 9,893 5,493
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Net income $16,278 $10,710
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Income per share - basic $0.87 $0.52
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Number of shares used in per share
calculations-basic 18,719 20,674
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Income per share - diluted $0.85 $0.51
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Number of shares used in per share
calculations-diluted 19,107 21,103
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Certain prior year information has been reclassified to conform to the
current year presentation.
Winnebago Industries, Inc.
Consolidated Condensed Balance Sheets
(In thousands)
Nov. 30, 2002 Aug. 31, 2002
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(Unaudited)
ASSETS
Current assets
Cash and cash equivalents $66,084 $42,225
Receivables 65,464 66,496
Inventories 104,859 113,654
Other 12,194 11,221
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Total current assets 248,601 233,596
Property and equipment, net 54,276 48,927
Deferred income taxes 23,024 22,438
Investment in life insurance 23,586 23,602
Other assets 9,765 8,514
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Total assets $359,252 $337,077
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $37,408 $44,230
Income taxes payable 13,205 2,610
Accrued expenses 39,723 41,761
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Total current liabilities 90,336 88,601
Post retirement health care and
deferred compensation benefits 70,367 68,661
Stockholders' equity 198,549 179,815
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Total liabilities and stockholders'
equity $359,252 $337,077
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