Winnebago Industries Reports Record Revenues for Fiscal 2003
FOREST CITY, Iowa--Oct. 1, 20036, 2003--Winnebago Industries, Inc. , the nation's leading motor home manufacturer, today reported financial results for the Company's fourth quarter and fiscal year ended August 30, 2003.Revenues for the fourth quarter of fiscal 2003 were $225.7 million, compared to revenues of $220.1 million for the fourth quarter last year.
Net income for the fourth quarter ended August 30, 2003 was $12.0 million versus $16.4 million for the fourth quarter of fiscal 2002. On a diluted per share basis, the Company earned 65 cents a share for the fourth quarter of fiscal 2003 versus 86 cents a share for the fourth quarter last year. Included in net income in the fourth quarter of fiscal 2002 was $455,000, or three cents a share, from the Company's discontinued operations.
Revenues for fiscal 2003 (52 weeks) were a record $845.2 million versus $825.3 million for the previous fiscal year (53 weeks).
Net income for fiscal 2003 was $49.9 million, versus $54.7 million for fiscal 2002. On a diluted per share basis, the Company earned $2.65 a share, versus $2.68 a share for fiscal 2002. Included in net income was $1.2 million from discontinued operations, or six cents a share, in fiscal 2003, versus $1.8 million, or nine cents a share, in fiscal 2002.
"We saw a positive turnaround in business during the fourth quarter as dealers began stocking their shelves with new 2004 motor home models," said Winnebago Industries Chairman, CEO and President Bruce Hertzke. "Our new 2004 models have been well received by both our dealers and retail customers and our dealers have experienced increased traffic and retail sales at fall RV shows. The ramp-up of production in our new Charles City facility, which started production in March 2003, is continuing as scheduled, and we are now producing over 50 Class C motor homes per week in that facility. It is our intention to continue to gradually increase production within that facility throughout the coming months, allowing for additional Class A motor home production in Forest City as the market demands."
"Results for the fourth quarter of fiscal 2003 were impacted by increased manufacturing costs as a result of lower production volumes, costs associated with the new Charles City facility, higher discounts, and the absence of EuroVan Camper business from Volkswagen of America," continued Hertzke.
"We were very pleased with the results for the fiscal year which started at a record pace in the first half of the year," said Hertzke. "We experienced lower sales volume in the third quarter as a result of dealers choosing to trim inventory levels due to low consumer confidence levels, uncertainty about the war in Iraq and the coming model year changeover," said Hertzke. "It now appears that both wholesale and retail sales have normalized."
Winnebago Industries motor home sales order backlog at the end of fiscal 2003 was 2,632 units, substantially up from the backlog of 1,419 reported at the end of the third quarter, however, down from the abnormally high backlog at the end of fiscal 2002 of 3,248.
"As a result of the increases in backlog and sales activity during the fourth quarter, we have increased our production level and scheduled overtime in our factories," said Hertzke.
Winnebago Industries is the top-selling motor home manufacturer with 19.2 percent market share for the first eight months of calendar 2003.
In March, the Board of Directors announced the Company's eighth stock repurchase program, authorizing the purchase of Winnebago Industries' common stock for an aggregate price of up to $20 million. The Company had repurchased 345,899 shares as of August 30, 2003 under that authorization for an aggregate price of approximately $9.7 million. During fiscal 2003, Winnebago Industries repurchased in total 676,199 shares of common stock for an aggregate price of $20.2 million. As of August 30, 2003, outstanding shares were approximately 18,225,000.
Also, previously announced, Winnebago Industries doubled its annual dividend as it began paying a quarterly rather than semi-annual dividend of ten cents a share for a total of 40 cents a share annually during fiscal 2004. The first quarterly payment was made on October 6, 2003 to shareholders of record as of September 5, 2003.
Winnebago Industries will host a live webcast today at 10 a.m. ET to review the Company's fourth quarter and fiscal 2003 results. The webcast will be available on the Company's website at www.winnebagoind.com and 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.
Winnebago Industries, Inc.
Unaudited Consolidated Statements of Income
(in thousands except per share amounts)
52 Weeks 53 Weeks
Quarter Ended Ended Ended
8/30/2003 8/31/2002 8/30/2003 8/31/2002
---------- ---------- ---------- ----------
Net revenues $225,694 $220,148 $845,210 $825,269
Cost of goods sold 196,902 185,797 731,832 708,865
-------------------------------------------
Gross profit 28,792 34,351 113,378 116,404
-------------------------------------------
Operating expenses
Selling 6,346 6,039 19,753 19,606
General and
administrative 4,044 3,931 16,331 18,727
-------------------------------------------
Total operating
expenses 10,390 9,970 36,084 38,333
-------------------------------------------
Operating income 18,402 24,381 77,294 78,071
Financial income 398 612 1,399 3,253
-------------------------------------------
Pre-tax income 18,800 24,993 78,693 81,324
Provision for taxes 6,832 9,029 29,961 28,431
-------------------------------------------
Income from continuing
operations 11,968 15,964 48,732 52,893
Income from discontinued
operations
(Net of taxes) --- 455 1,152 1,778
-------------------------------------------
Net income $11,968 $16,419 $49,884 $54,671
===========================================
Income per share (basic)
From continuing
operations $0.66 $0.85 $2.64 $2.65
From discontinued
operations --- .03 .06 .09
-------------------------------------------
Net income $0.66 $0.88 $2.70 $2.74
===========================================
Number of shares used in
per share calculations- 18,184 18,752 18,487 19,949
basic
===========================================
Income per share (diluted)
From continuing
operations $0.65 $0.83 $2.59 $2.59
From discontinued
operations --- .03 .06 .09
-------------------------------------------
Net income $0.65 $0.86 $2.65 $2.68
===========================================
Number of shares used in
per share calculations-
diluted 18,490 19,166 18,818 20,384
===========================================
Winnebago Industries, Inc.
Unaudited Condensed Consolidated Balance Sheets
(In thousands)
Aug. 30, 2003 Aug. 31, 2002
-------------- --------------
ASSETS
Current assets
Cash $99,381 $42,225
Receivables 30,885 28,375
Inventories 114,282 113,654
Other 12,741 11,221
Net assets of discontinued operations --- 38,121
-----------------------------
Total current assets 257,289 233,596
Property and equipment, net 63,318 48,927
Deferred income taxes 22,491 22,438
Investment in life insurance 22,794 23,474
Other assets 11,570 8,642
-----------------------------
Total assets $377,462 $337,077
=============================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $52,239 $44,230
Income taxes payable --- 2,610
Accrued expenses 40,159 41,761
-----------------------------
Total current liabilities 92,398 88,601
Post retirement health care and deferred
compensation benefits 74,438 68,661
Stockholders' equity 210,626 179,815
-----------------------------
Total liabilities and stockholders'
equity $377,462 $337,077
=============================
Winnebago Industries Inc.
Unaudited Condensed Consolidated Statement of Cash Flows
(Dollars in thousands)
52 Weeks 53 Weeks
8/30/2003 8/31/2002
---------- ----------
Cash flows from operating activities
Net income as shown on the statement of
income $ 49,884 $ 54,671
Income from discontinued operations (1,152) (1,778)
---------- ----------
Income from continuing operations 48,732 52,893
Adjustments to reconcile net income to net cash
provided by operating activities
Depreciation and amortization 8,786 7,879
Tax benefit of stock options 1,356 3,349
Other 176 (248)
Change in assets and liabilities
Increase in receivable and other assets (1,825) (8,085)
Increase in inventories (628) (33,839)
Increase in deferred income taxes (1,071) (1,127)
Increase in accounts payable and accrued
expenses 6,407 10,921
Decrease in income taxes payable (4,035) (2,328)
Increase in postretirement benefits 4,884 5,278
---------- ----------
Net cash provided by continuing operations 62,782 34,693
Net cash provided by discontinued operations 234 319
---------- ----------
Net cash provided by operating activities 63,016 35,012
---------- ----------
Cash flows provided by (used in) investing
activities
Purchases of property and equipment (23,487) (10,997)
Other (1,232) (2,644)
---------- ----------
Net cash used in continuing operations (24,719) (13,641)
Net cash provided by discontinued operations 39,288 4,243
---------- ----------
Net cash provided by (used in) investing
activities 14,569 (9,398)
---------- ----------
Cash flows used in financing activities and
capital transactions
Payments for purchase of common stock (20,221) (86,072)
Payment of cash dividends (3,701) (3,954)
Proceeds from issuance of common and treasury
stock 3,493 4,357
---------- ----------
Net cash used in financing activities and
capital transactions (20,429) (85,669)
---------- ----------
Net increase (decrease) in cash and cash
equivalents 57,156 (60,055)
Cash and cash equivalents-beginning of period 42,225 102,280
---------- ----------
Cash and cash equivalents-end of period $ 99,381 $ 42,225
========== ==========
Shipment/Backlog/Dealer Inventory Detail
(Volume in Units)
Unaudited
Quarter Quarter 52 Weeks 53 Weeks
Ended Ended Ended Ended
8/30/2003 8/31/2002 8/30/2003 8/31/2002
---------- ---------- ---------- ----------
Unit shipments
Class A 1,790 1,783 6,705 6,725
(Class A diesel) (382) (369) (1,552) (1,667)
Class C 1,151 1,151 4,021 4,329
Total shipments 2,941 2,934 10,726 11,054
Sales order backlog
Class A 1,784 2,163
(Class A diesel) (612) (445)
Class C 848 1,085
Total backlog 2,632 3,248
Dealer inventory 3,945 4,000