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.
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