Winnebago Industries Reports Second Quarter/Record Six Months Results
FOREST CITY, Iowa--March 18, 2003--Winnebago Industries, Inc. , the world's leading motor home manufacturer, today reported net income of $12.3 million for the second quarter ended March 1, 2003, a 30.9 percent increase compared to net income of $9.4 million for the second quarter of fiscal 2002. On a per share basis, the Company earned 64 cents per diluted share for the second quarter of fiscal 2003, a 42.2 percent increase compared to 45 cents per diluted share for the second quarter in fiscal 2002.Revenues for the second quarter of fiscal 2003 were $186.7 million, an increase of two percent when compared to revenues of $183.1 million for the second quarter in fiscal 2002.
The results of the quarter benefited from an improved mix of products, the favorable outcome of an annual physical inventory and lower stock-based incentive compensation expense, and was partially offset by the start-up costs of the new production facility in Charles City, Iowa.
Net income for the first 26 weeks of fiscal 2003 was a record $28.6 million, a 41.6 percent increase when compared to the income of $20.2 million for the first 27 weeks of fiscal 2002. On a per share basis, the Company earned a record $1.50 per diluted share for the first 26 weeks of fiscal 2003, a 57.9 percent increase compared to 95 cents per diluted share for the first 27 weeks of fiscal 2002.
For the 26 weeks of fiscal 2003, the Company reported record revenues of $420.8 million, a 16.6 percent increase compared to $360.9 million for the first 27 weeks of fiscal 2002.
For the second quarter ended March 1, 2003, Winnebago Industries reported factory shipments of 1,523 Class A and 736 Class C motor homes, compared to shipments of 1,470 Class A and 978 Class C motor homes for the second quarter last year. Class A motor home shipments in the second quarter of fiscal 2003 included 366 diesel units, compared to 404 diesel unit shipments in the second quarter last year. Winnebago Industries' sales order backlog for Class A & C motor homes was 1,890 on March 1, 2003, compared to 3,206 on March 2, 2002.
"We are extremely pleased with our strong earnings performance for the second quarter and first six months of fiscal 2003," said Winnebago Industries' Chairman, CEO and President Bruce D. Hertzke.
"However, due to the U.S. facing the lowest consumer confidence levels in recent history and the geopolitical turmoil caused by the threat of war with Iraq, it appears that the RV market has temporarily slowed. As a result of the market slowdown and higher inventories, we have temporarily scheduled four-day work weeks for our factories. Nonetheless, we believe long-term prospects remain extremely positive. According to the University of Michigan "Consumer Demographic Profile" study published in 2002 and conducted for the RV industry, long-term prospects will be favorably impacted due to the increased popularity of RVs, the growth in our prime target audience of people over age 50, and broadening age range of people who are buying our motor homes," said Hertzke.
"Because of these long-term growth prospects, we've invested in our future to ensure we are ready to meet the increased demand for our products when the economy and geopolitical conditions normalize," Hertzke continued. "Although there were start-up expenses for this highly automated new plant, we believe it will help Winnebago Industries to continue to lead the industry in cost effectiveness, product quality, customer satisfaction and corporate profitability in the years ahead." Winnebago Industries began limited production in the Company's new motor home production facility in Charles City, with the first unit completed last week. Winnebago Industries is currently producing Class C motor homes in this new facility, allowing incremental Class A production in the Company's Forest City facility.
Dealer inventory levels of the Company's products were 4,944 on March 1, 2003, compared to 4,102 units at that time last year.
During the second quarter of fiscal 2003, Winnebago Industries completed the stock repurchase program announced on June 19, 2002. Since June 2002, 450,200 shares of the Company's stock have been repurchased for an aggregate purchase price of $14.8 million. Currently outstanding shares are 18,472,000. This is Winnebago Industries' seventh stock repurchase program. Since the initial repurchase program in December 1997, Winnebago Industries has repurchased approximately 33 percent of our stock, 8,426,064 shares, at an aggregate purchase price of $164.3 million. Hertzke said, "We continue to believe that the repurchase of our stock is the best use of our excess capital for our shareholders."
Winnebago Industries will host a live webcast to review second quarter results today, March 18, 2003, at 10 a.m. EST and is available on the Company's website at www.winnebagoind.com or at www.shareholder.com/winnebago/medialist.cfm. It will be archived and available for 90 days.
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)
26 Weeks 27 Weeks
Quarter Ended Ended Ended
3/1/2003 3/2/2002 3/1/2003 3/2/2002
-------- -------- -------- --------
Net revenues $186,728 $183,055 $420,817 $360,857
Cost of goods sold 159,590 160,117 357,865 313,687
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Gross profit 27,138 22,938 62,952 47,170
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Operating expenses
Selling 4,068 4,493 8,755 9,310
General and administrative 2,950 5,031 8,087 9,135
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Total operating expenses 7,018 9,524 16,842 18,445
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Operating income 20,120 13,414 46,110 28,725
Financial income 312 912 493 1,804
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Pre-tax income 20,432 14,326 46,603 30,529
Provision for taxes 8,123 4,878 18,016 10,371
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Net income $12,309 $9,448 $28,587 $20,158
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Income per share - basic $.66 $.46 $1.52 $.97
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Number of shares used in per
share calculations - basic 18,775 20,760 18,750 20,715
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Net income per share - diluted $.64 $.45 $1.50 $.95
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Number of shares used in per
share calculations - diluted 19,112 21,215 19,113 21,157
Certain prior year information has been reclassified to conform to the
current year presentation.
Winnebago Industries, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
Mar. 1, 2003 Aug. 31, 2002
------------ -------------
(Unaudited)
ASSETS
Current assets
Cash and cash equivalents $39,507 $42,225
Receivables 60,828 66,496
Inventories 127,405 113,654
Other 12,327 11,221
----------------------------
Total current assets 240,067 233,596
Property and equipment, net 62,354 48,927
Deferred income taxes 22,956 22,438
Investment in life insurance 23,344 23,602
Other assets 9,484 8,514
----------------------------
Total assets $358,205 $337,077
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $42,437 $44,230
Income taxes payable 4,347 2,610
Accrued expenses 41,950 41,761
----------------------------
Total current liabilities 88,734 88,601
Post retirement health care and
deferred compensation benefits 70,489 68,661
Stockholders' equity 198,982 179,815
----------------------------
Total liabilities and stockholders'
equity $358,205 $337,077
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