Winnebago Industries Reports Record First Quarter Revenues and Earnings
FOREST CITY, Iowa--Dec. 1, 20045, 2004--Winnebago Industries, Inc., , the leading United States (U.S.) motor home manufacturer, today reported record financial results for the Company's first quarter ended November 27, 2004.Revenues for the first quarter of fiscal 2005 were a record $266.1 million, a 4.4 percent increase compared to revenues of $254.9 million for the first quarter of fiscal 2004.
Net income for the first quarter was a record $19.5 million, a 7.7 percent increase compared to net income of $18.1 million for the first quarter last year. On a diluted per share basis, the Company earned a record 57 cents a share for the first quarter of fiscal 2005, a 14 percent increase compared to net income of 50 cents a share for the first quarter last year.
"The increase in Winnebago Industries' Class A diesel motor home shipments remains a very positive driver of our business," said Winnebago Industries' Chairman, CEO and President Bruce D. Hertzke. "Wholesale deliveries of our Winnebago Journey and Vectra, and Itasca Meridian and Horizon Class A diesel motor homes increased 13 percent in the first quarter of fiscal 2005 compared to the same quarter a year ago. Negatively impacting first quarter motor home deliveries, however, were hurricanes and severe weather conditions in the Southeastern portion of the U.S. Operating margins continued at a high level, although somewhat lower than last year's exceptionally strong performance due primarily to a less favorable product mix. Additionally, the quarter benefited from a lower tax rate."
Winnebago Industries is the top-selling motor home manufacturer in the U.S. According to Statistical Surveys, Inc., an independent retail reporting service, Winnebago Industries leads the industry with 19.3 percent of the combined Class A and Class C retail market for the first 10 months of calendar 2004 compared to 19.0 percent for the same period last year.
The company's sales order backlog was 2,080 units at November 27, 2004 compared to the backlog of 2,768 units one year ago. The backlog is lower than last year's historic levels due in part to increased capacity as a result of Winnebago Industries' new Charles City Manufacturing Facility and due to more appropriate levels of dealer inventory.
Hertzke continued, "Dealer reaction to Winnebago Industries' new products at the RVIA show in Louisville, Kentucky in early December was extremely positive, particularly to the brand new Winnebago View and Itasca Navion high-mileage Class C diesel models. Orders taken at the show were 53 percent ahead of those taken at last year's Louisville show, of which a significant portion were for the new View and Navion, scheduled to be delivered to our dealers in the latter half of fiscal 2005.
Also during the recent Louisville Show, Winnebago Industries accepted the prestigious Quality Circle Award for the ninth consecutive year from the Recreation Vehicle Dealer Association. Winnebago Industries is the only company to receive the award every year since its inception nine years ago. Hertzke noted, "Our employees work extremely hard to ensure that Winnebago Industries' motor homes and services meet or exceed the high quality expectations of our dealer partners and retail customers, so we are extremely honored to receive this award on their behalf."
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. 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
Winnebago Industries, Inc.
Unaudited Consolidated Statements of Income
(In thousands, except per share amounts)
Quarter Ended Quarter Ended
Nov. 27, 2004 Nov. 29, 2003(a)
-------------- ----------------
Net revenues $ 266,133 $ 254,933
Cost of goods sold 226,069 215,468
-------------- ----------------
Gross profit 40,064 39,465
-------------- ----------------
Operating expenses
Selling 4,554 4,561
General and administrative 5,557 5,738
-------------- ----------------
Total operating expenses 10,111 10,299
-------------- ----------------
Operating income 29,953 29,166
Financial income 494 303
-------------- ----------------
Pre-tax income 30,447 29,469
Provision for taxes 10,903 11,402
-------------- ----------------
Net income $ 19,544 $ 18,067
============== ================
Income per share - basic $ .58 $ .51
============== ================
Number of shares used in per share
calculations - basic 33,606 35,298
============== ================
Income per share - diluted $ .57 $ .50
============== ================
Number of shares used in per share
calculations - diluted 34,178 35,846
============== ================
Certain prior year information has been reclassified to conform to the
current year presentation.
(a) Adjusted for 2-for-1 stock split on March 5, 2004.
Winnebago Industries, Inc.
Unaudited Consolidated Condensed Balance Sheets
(In thousands)
Nov. 27, 2004 Aug. 28, 2004
------------- -------------
ASSETS
Current assets
Cash $ 101,342 $ 75,545
Receivables 25,295 46,112
Inventories 137,348 130,733
Other 18,404 17,679
------------- -------------
Total current assets 282,389 270,069
Property and equipment, net 62,998 63,995
Deferred income taxes 24,834 25,166
Investment in life insurance 21,782 22,863
Other assets 14,196 12,463
------------- -------------
Total assets $ 406,199 $ 394,556
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 31,654 $ 46,659
Income taxes payable 14,443 4,334
Accrued expenses 50,773 54,285
------------- -------------
Total current liabilities 96,870 105,278
Post retirement health care and deferred
compensation benefits 88,125 87,403
Stockholders' equity 221,204 201,875
------------- -------------
Total liabilities and stockholders'
equity $ 406,199 $ 394,556
============= =============
Winnebago Industries, Inc.
Unaudited Condensed Consolidated Statement of Cash Flows
(Dollars in thousands)
Quarter Quarter
Ended Ended
11/27/2004 11/29/2003
----------- -----------
Cash flows from operating activities
Net income $ 19,544 $ 18,067
Adjustments to reconcile net income to net
cash provided by operating activities
Depreciation and amortization 2,444 2,370
Tax benefit of stock options 450 1,297
Other 314 (30)
Change in assets and liabilities
Decrease in receivable and other assets 19,805 8,730
Increase in inventories (6,615) (13,599)
Decrease (increase) in deferred income
taxes 593 (274)
Decrease in accounts payable and accrued
expenses (18,517) (6,375)
Increase in income taxes payable 10,109 10,297
(Decrease) increase in postretirement
benefits (183) 1,733
----------- -----------
Net cash provided by operating activities 27,944 22,216
----------- -----------
Cash flows used in investing activities
Purchases of property and equipment (1,498) (2,047)
Other 16 85
----------- -----------
Net cash used in investing activities (1,482) (1,962)
----------- -----------
Cash flows used in financing activities and
capital transactions
Payments for purchase of common stock --- (63,979)
Payment of cash dividends (2,351) (1,823)
Proceeds from issuance of common and
treasury stock 1,686 3,056
----------- -----------
Net cash used in financing activities and
capital transactions (665) (62,746)
----------- -----------
Net increase (decrease) in cash and cash
equivalents 25,797 (42,492)
Cash and cash equivalents-beginning of
period 75,545 99,381
----------- -----------
Cash and cash equivalents-end of period $ 101,342 $ 56,889
=========== ===========
Winnebago Industries, Inc.
Unaudited Motor Home Deliveries
(Volume in Units)
Quarter Quarter
Ended Ended
11/27/2004 11/29/2003
---------- ----------
Unit deliveries
Class A gas 1,326 1,342
Class A diesel 596 529
Class C 903 1,091
----------------------------
Total deliveries 2,825 2,962
Winnebago Industries, Inc.
Unaudited Backlog and Dealer Inventory
(Volume in Units)
Nov. 27, 2004 Nov. 29, 2003
------------- -------------
Sales order backlog
Class A gas 915 1,023
Class A diesel 494 818
Class C 671 927
-----------------------------
Total backlog(a) 2,080 2,768
Total approximate revenue
dollars (in thousands) $187,780 $227,880
Dealer inventory 5,138 4,429
(a) The Company includes in its backlog all accepted purchase orders
from dealers shippable within the next six months. Orders in backlog
can be canceled 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.