Winnebago Industries Reports Record Results and $1 Billion Milestone for Fiscal 2004
FOREST CITY, Iowa--Oct. 1, 20044, 2004--Cash Dividend Announced |
Winnebago Industries, Inc. , the nation's leading motor home manufacturer, today reported record financial results for the Company's fourth quarter and fiscal year ended August 28, 2004.
Revenues for the fourth quarter of fiscal 2004 were a record $283.0 million, a 25 percent increase compared to revenues of $225.7 million for the fourth quarter last year.
Net income for the fourth quarter ended August 28, 2004 was a record $19.0 million, a 58 percent increase compared to $12.0 million for the fourth quarter of fiscal 2003. On a diluted per share basis, the Company earned a record 55 cents a share for the fourth quarter of fiscal 2004, a 72 percent increase compared to 32 cents a share for the fourth quarter last year.
Revenues for fiscal 2004 were a record $1.1 billion, a 32 percent increase compared to $845.2 million for the previous fiscal year.
Net income for fiscal 2004 was a record $70.6 million, a 41 percent increase compared to $49.9 million for fiscal 2003. On a diluted per share basis, the Company earned a record $2.03 a share, a 53 percent increase compared to $1.33 a share for fiscal 2003. Included in fiscal 2003 net income was $1.2 million from discontinued operations, or three cents a share.
"We are extremely pleased with our record results for the fourth quarter and fiscal 2004," said Winnebago Industries Chairman, CEO and President Bruce Hertzke. "It is a particularly significant milestone to reach $1 billion in revenues. I want to thank all of our Winnebago Industries team for helping us achieve these outstanding results."
"The fourth quarter benefited from additional Class A diesel motor home sales, while fiscal 2004 was positively impacted by increased motor home sales volume overall, as well as a stronger mix of Class A diesel products," continued Hertzke. "The successful launch last fall of our new Winnebago Vectra and redesigned Journey, as well as the new Itasca Horizon and Meridian diesel motor home products in our 2004 product lines, provided significant momentum for our growth in the Class A diesel market throughout the year. Winnebago Industries' Class A diesel retail market share grew to 14.3 percent calendar year to date through August 2004 compared to 8.9 percent for the same period last year. Our new Charles City motor home production facility expansion also contributed to our successful results in fiscal 2004, enabling us to provide motor homes to our dealers in a timely manner."
Winnebago Industries continues to be the top-selling motor home manufacturer in America with 19.2 percent market share for the first eight months of calendar 2004, compared to 19.1 percent for the same period last year.
As previously announced, Winnebago Industries increased its cash dividend by 40 percent. The Company increased the quarterly dividend to seven cents a share, which annualized would amount to a total of 28 cents a share during fiscal 2005 versus five cents a share quarterly for a total of 20 cents a share annually during fiscal 2004. In a meeting held yesterday, the Board of Directors declared a quarterly cash dividend of seven cents a share, payable on January 5, 2005 to shareholders of record as of December 3, 2004.
In June, the Board of Directors also announced the Company's ninth stock repurchase program, authorizing the purchase of Winnebago Industries' common stock for an aggregate price of up to $30 million. The Company had repurchased 116,800 shares as of August 28, 2004 under that authorization for an aggregate price of approximately $3.4 million. During fiscal 2004, Winnebago Industries repurchased in total approximately 3.4 million shares of common stock (adjusted for the 2-for-1 stock split on March 5, 2004) for an aggregate price of approximately $77.7 million. As of August 28, 2004, there were approximately 33.6 million shares outstanding.
Winnebago Industries will conduct a conference call in conjunction with this release at 10 a.m. ET today, Thursday, October 14, 2004. Members of the news media, investors and the general public are invited to access a live broadcast of the conference call via the Investor Relations page of the Company's website at www.winnebagoind.com, at www.shareholder.com/winnebago/medialist.cfm or www.vcall.com. The event will be archived and available for replay for the next 90 days.
About Winnebago Industries
Winnebago Industries, Inc. is the leading United States 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 and Rialta 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.
Winnebago Industries, Inc. Unaudited Consolidated Statements of Income (In thousands except per share amounts) (Adjusted for 2-for-1 Stock Split) Quarter Ended Fiscal Year Ended 8/28/2004 8/30/2003 8/28/2004 8/30/2003 --------- --------- --------- --------- Net revenues $283,002 $225,694 $1,114,154 $845,210 Cost of goods sold 241,346 196,902 951,985 731,832 ------------------------------------------ Gross profit 41,656 28,792 162,169 113,378 ------------------------------------------ Operating expenses Selling 6,986 6,346 20,764 19,753 General and administrative 5,643 4,044 30,607 16,331 ------------------------------------------ Total operating expenses 12,629 10,390 51,371 36,084 ------------------------------------------ Operating income 29,027 18,402 110,798 77,294 Financial income 484 398 1,436 1,399 ------------------------------------------ Pre-tax income 29,511 18,800 112,234 78,693 Provision for taxes 10,521 6,832 41,593 29,961 ------------------------------------------ Income from continuing operations 18,990 11,968 70,641 48,732 Income from discontinued operations (Net of taxes) --- --- --- 1,152 ------------------------------------------ Net income $18,990 $11,968 $70,641 $49,884 ========================================== Income per share (basic) From continuing operations $0.56 $0.33 $2.06 $1.32 From discontinued operations --- --- --- .03 ------------------------------------------ Net income $0.56 $0.33 $2.06 $1.35 ========================================== Number of shares used in per share calculations-basic 33,670 36,368 34,214 36,974 ========================================== Income per share (diluted) From continuing operations $0.55 $0.32 $2.03 $1.30 From discontinued operations --- --- --- .03 ------------------------------------------ Net income $0.55 $0.32 $2.03 $1.33 ========================================== Number of shares used in per share calculations-diluted 34,244 36,980 34,789 37,636 ========================================== Winnebago Industries, Inc. Unaudited Condensed Consolidated Balance Sheets (In thousands) Aug. 28, Aug. 30, 2004 2003 ---- ---- ASSETS Current assets Cash $75,545 $99,381 Receivables 46,112 30,885 Inventories 130,733 114,282 Other 17,679 12,741 ------------------ Total current assets 270,069 257,289 Property and equipment, net 63,995 63,318 Deferred income taxes 25,166 22,491 Investment in life insurance 22,863 22,794 Other assets 12,463 11,570 ------------------ Total assets $394,556 $377,462 ================== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable $46,659 $52,239 Income taxes payable 4,334 --- Accrued expenses 54,285 40,159 ------------------ Total current liabilities 105,278 92,398 Post retirement health care and deferred compensation benefits 87,403 74,438 Stockholders' equity 201,875 210,626 ------------------ Total liabilities and stockholders' equity $394,556 $377,462 ================== Winnebago Industries Inc. Unaudited Condensed Consolidated Statement of Cash Flows (In thousands) Fiscal Year Ended 8/28/2004 8/30/2003 ---------- ---------- Cash flows from operating activities Net income as shown on the statement of income $70,641 $49,884 Income from discontinued operations --- (1,152) --------------------- Income from continuing operations 70,641 48,732 Adjustments to reconcile net income to net cash provided by operating activities Depreciation and amortization 9,628 8,786 Tax benefit of stock options 2,573 1,356 Other 657 176 Change in assets and liabilities Increase in receivable and other assets (16,764) (1,825) Increase in inventories (16,451) (628) Increase in deferred income taxes (7,615) (1,071) Increase in accounts payable and accrued expenses 6,195 6,407 Increase (decrease) in income taxes payable 5,759 (4,035) Increase in postretirement benefits 12,061 4,884 --------------------- Net cash provided by continuing operations 66,684 62,782 Net cash provided by discontinued operations --- 234 --------------------- Net cash provided by operating activities 66,684 63,016 --------------------- Cash flows (used in) provided by investing activities Purchases of property and equipment (10,588) (23,487) Other (318) (1,232) --------------------- Net cash used in continuing operations (10,906) (24,719) Net cash provided by discontinued operations --- 39,288 --------------------- Net cash (used in) provided by investing activities (10,906) 14,569 --------------------- Cash flows used in financing activities and capital transactions Payments for purchase of common stock (77,668) (20,221) Payment of cash dividends (6,899) (3,701) Proceeds from issuance of common and treasury stock 4,953 3,493 --------------------- Net cash used in financing activities and capital transactions (79,614) (20,429) --------------------- Net (decrease) increase in cash and cash equivalents (23,836) 57,156 Cash and cash equivalents-beginning of period 99,381 42,225 --------------------- Cash and cash equivalents-end of period $75,545 $99,381 ===================== Winnebago Industries, Inc. Unaudited Motor Home Deliveries (Volume in Units) Quarter Ended Fiscal Year Ended 8/28/2004 8/30/2003 8/28/2004 8/30/2003 ---------- ---------- ---------- ---------- Unit deliveries Class A gas 1,289 1,408 5,277 5,153 Class A diesel 686 382 2,831 1,552 Class C 1,113 1,151 4,408 4,021 --------------------- --------------------- Total shipments 3,088 2,941 12,516 10,726 Winnebago Industries, Inc. Unaudited Backlog and Dealer Inventory (Volume in Units) Fiscal Year Ended 8/28/2004 8/30/2003 --------- --------- Sales order backlog Class A gas 1,187 1,172 Class A diesel 614 612 Class C 740 848 ------------------------ Total backlog(a) 2,541 2,632 Dealer inventory 4,978 3,945 (a) The Company includes in its backlog all accepted orders from dealers shippable within the next six months. Orders in backlog can be cancelled or postponed at the option of the purchaser at any time without penalty and, therefore, backlog may not necessarily be an accurate measure of future sales.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, http://www.winnebagoind.com/html/company/investorRelations.html