Winnebago Industries Reports Second Quarter and Six Months Results
FOREST CITY, Iowa--March 17, 2005--| -- Dividend Declared -- |
Winnebago Industries, Inc. , the nation's leading motor home manufacturer, today reported net income for the second quarter ended February 26, 2005 of $14.4 million, compared to net income of $15.9 million for the second quarter of fiscal 2004. On a per share basis, the Company earned 42 cents per diluted share for the second quarter of fiscal 2005, compared to 46 cents per diluted share for the second quarter of fiscal 2004.
Revenues for the second quarter of fiscal 2005 were $239.4 million, compared to revenues of $266.0 million for the second quarter of fiscal 2004.
Net income for the first six months of both fiscal 2005 and 2004 was $33.9 million. On a per share basis, the Company earned 99 cents per diluted share for the first six months of fiscal 2005, compared to 96 cents per diluted share for the first six months of fiscal 2004.
For the first six months of fiscal 2005, the Company reported revenues of $505.5 million, compared to $521.0 million for the first six months of fiscal 2004.
"Second quarter results were impacted by lower motor home deliveries," said Winnebago Industries' Chairman, CEO and President Bruce D. Hertzke.
"Comparisons with last year were extremely difficult. We spent the majority of the first half of fiscal 2004 on 45-hour work weeks, replenishing inventories at the wholesale level that had been drawn down during the initial months of the war in Iraq, as well as responding to the increase in retail demand. In contrast, during the first half of fiscal 2005, dealer inventory was at a more appropriate level. Dealer inventory increased by 1,414 units during the first half of fiscal 2004 compared to 623 units during the first half of fiscal 2005."
"Although current industry motor home retail sales appear to be fairly closely aligned with retail sales at this time last year, there are indications that industry motor home production has exceeded market demand, causing an imbalance of motor home inventory," said Hertzke. "As is our practice, we continue to monitor our inventories on hand, as well as our product inventories at the dealer level on a daily basis to ensure that we produce to the market demand. Going forward, we believe our sales will closely follow the retail pull of the RV market."
"Winnebago Industries' products continue to perform well in the Class A diesel market segment," Hertzke continued. "The new low-profile Winnebago Aspect and Itasca Cambria motor homes are helping Winnebago Industries to bolster market share in the Class C market. In addition, we begin deliveries of the new Winnebago View and Itasca Navion Class C diesel products next quarter. We believe these innovative new products will have a positive impact on our market share as they reach the retail market in the last quarter of fiscal 2005."
Winnebago Industries repurchased 52,600 shares of the Company's common stock during the second quarter of fiscal 2005 ended February 26, 2005 for an aggregate price of approximately $1.8 million. The Company has approximately $25 million remaining on the current stock repurchase authorization from its board of directors.
At the meeting held yesterday, Winnebago Industries' board of directors declared a quarterly cash dividend of seven cents a share, payable on July 6, 2005 to shareholders of record as of June 3, 2005.
Winnebago Industries will conduct a conference call in conjunction with this release at 10 a.m. ET today, Thursday, March 17, 2005. 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 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. 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 Six Months Ended
2/26/2005 2/28/2004 2/26/2005 2/28/2004
Net revenues $239,359 $266,033 $505,492 $520,966
Cost of goods sold 207,305 231,004 433,374 446,472
---------- ---------- ---------- ----------
Gross profit 32,054 35,029 72,118 74,494
---------- ---------- ---------- ----------
Operating expenses
Selling 4,564 4,461 9,118 9,022
General and
administrative 5,798 6,039 11,355 11,777
---------- ---------- ---------- ----------
Total operating
expenses 10,362 10,500 20,473 20,799
---------- ---------- ---------- ----------
Operating income 21,692 24,529 51,645 53,695
Financial income 639 283 1,133 586
---------- ---------- ---------- ----------
Pre-tax income 22,331 24,812 52,778 54,281
Provision for taxes 7,965 8,932 18,868 20,334
---------- ---------- ---------- ----------
Net income $14,366 $15,880 $33,910 $33,947
Income per share(a)
Basic $0.43 $0.47 $1.01 $0.98
========== ========== ========== ==========
Diluted $0.42 $0.46 $0.99 $0.96
========== ========== ========== ==========
Number of shares used in
per share calculations(a)
Basic 33,672 33,928 33,647 34,613
========== ========== ========== ==========
Diluted 34,254 34,545 34,224 35,196
========== ========== ========== ==========
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)
Feb. 26, 2005 Aug. 28, 2004
------------- -------------
ASSETS
Current assets
Cash and cash equivalents $16,107 $24,445
Short-term investments 97,479 51,100
Receivables 27,677 46,112
Inventories 146,452 130,733
Other 17,841 17,679
------------- -------------
Total current assets 305,556 270,069
Property and equipment, net 63,131 63,995
Deferred income taxes 25,228 25,166
Investment in life insurance 21,686 22,863
Other assets 14,492 12,463
------------- -------------
Total assets $430,093 $394,556
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $40,894 $46,659
Income taxes payable 11,650 4,334
Accrued expenses 56,631 54,285
------------- -------------
Total current liabilities 109,175 105,278
Post retirement health care and
deferred compensation benefits 88,069 87,403
Stockholders' equity 232,849 201,875
------------- -------------
Total liabilities and stockholders'
equity $430,093 $394,556
============= =============
Certain prior year information has been reclassified to conform to the current year presentation.
Winnebago Industries, Inc.
Unaudited Condensed Consolidated Statement of Cash Flows
(Dollars in thousands)
Six Months Ended
2/26/2005 2/28/2004
------------- -------------
Cash flows from operating activities:
Net income $33,910 $33,947
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 4,931 4,759
Tax benefit of stock options 687 2,328
Other 543 504
Change in assets and liabilities:
Decrease (increase) in receivables and
other assets 18,210 (11,446)
Increase in inventories (15,719) (23,101)
Increase in deferred income taxes (3) (2,248)
(Decrease) increase in accounts payable
and accrued expenses (3,419) 10,568
Increase in income taxes payable 7,316 7,485
(Decrease) increase in postretirement
benefits (249) 2,891
------------- -------------
Net cash provided by operating activities 46,207 25,687
------------- -------------
Cash flows (used in) provided by investing
activities:
Purchases of property and equipment (4,178) (4,967)
Purchases of short-term investments (147,473) (63,707)
Proceeds from the sale of short-term
investments 101,094 103,817
Other (365) (115)
------------- -------------
Net cash (used in) provided by investing
activities (50,922) 35,028
------------- -------------
Cash flows used in financing activities
and capital transactions:
Payments for purchase of common stock (1,787) (63,979)
Payment of cash dividends (4,712) (3,517)
Proceeds from issuance of common and
treasury stock 2,876 4,226
------------- -------------
Net cash used in financing activities and
capital transactions (3,623) (63,270)
------------- -------------
Net decrease in cash and cash equivalents (8,338) (2,555)
Cash and cash equivalents-beginning of
period 24,445 9,272
------------- -------------
Cash and cash equivalents-end of period $16,107 $6,717
============= =============
Certain prior year information has been reclassified to conform to the current year presentation.
Winnebago Industries, Inc.
Unaudited Motor Home Deliveries
Quarter Ended Six Months Ended
2/26/2005 2/28/2004 2/26/2005 2/28/2004
--------------------- ---------------------
Unit deliveries
Class A gas 1,117 1,268 2,443 2,610
Class A diesel 550 716 1,146 1,245
Class C 887 1,038 1,790 2,129
---------- ---------- ---------- ----------
Total deliveries 2,554 3,022 5,379 5,984
Winnebago Industries, Inc.
Unaudited Backlog and Dealer Inventory
(Units)
As of
2/26/2005 2/28/2004
---------- ----------
Sales order backlog
Class A gas 683 1,234
Class A diesel 453 794
Class C 972 905
---------- ----------
Total backlog(a) 2,108 2,933
Total approximate revenue dollars (in thousands) $189,100 $251,900
Dealer inventory 5,601 5,359
(a) The Company includes in its backlog all accepted 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.