Winnebago Industries to Restate Second Quarter and Year-to-Date Fiscal 2005 Results
FOREST CITY, Iowa--May 1, 20057, 2005--Winnebago Industries, Inc. , today announced that it will restate its second quarter and year-to-date results for the periods ended February 26, 2005.During an internal review of the Company's annual physical inventory, an error was found in a formula of an electronic spreadsheet. The error resulted in an overstatement of inventory and an understatement of cost of sales of $2,793,000. The restatement, net of income tax effect, will result in a reduction of net income during the 13 and 26 weeks ended February 26, 2005 of $1,795,000 or $.05 per diluted share.
As a result, the Company's previously issued financial statements for the 13 and 26 weeks ended February 26, 2005 should no longer be relied upon. Attached hereto are the Company's unaudited consolidated balance sheet of February 26, 2005, the Company's unaudited consolidated statements of income for the 13 and 26 weeks ended February 26, 2005 and the Company's unaudited condensed consolidated statement of cash flows for the 26 weeks ended February 26, 2005, reflecting (i) balances as reflected in the previously filed Form 10-Q for the quarter ended February 26, 2005, (ii) adjustments to reflect the overstatement of inventory valuation and understatement of cost of sales and (iii) balances as restated to the overstatement of inventory valuation and understatement of cost of sales. The restatements will not have any impact on the Company's cash position at February 26, 2005 or its revenues for the periods affected.
The Company intends to file a Form 10-Q/A for the quarter ended February 26, 2005 which will include restated consolidated financial statements as soon as practicable.
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 and Itasca 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. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED BALANCE SHEET
Dollars in thousands February 26, 2005
-----------------------------------
Originally
ASSETS Reported Adjustment As Restated
---------------------------------- ----------- ----------- -----------
CURRENT ASSETS
Cash and cash equivalents $16,107 $- - - $16,107
Short-term investments 97,479 - - - 97,479
Receivables, less allowance for
doubtful accounts ($137 and $161,
respectively) 27,677 - - - 27,677
Inventories 146,452 (2,793) 143,659
Prepaid expenses and other assets 5,035 - - - 5,035
Deferred income taxes 12,806 - - - 12,806
----------- ----------- -----------
Total current assets 305,556 (2,793) 302,763
----------- ----------- -----------
PROPERTY AND EQUIPMENT, at cost
Land 1,000 - - - 1,000
Buildings 58,490 - - - 58,490
Machinery and equipment 99,775 - - - 99,775
Transportation equipment 9,405 - - - 9,405
----------- ----------- -----------
168,670 - - - 168,670
Less accumulated depreciation 105,539 - - - 105,539
----------- ----------- -----------
Total property and equipment,
net 63,131 - - - 63,131
----------- ----------- -----------
DEFERRED INCOME TAXES 25,228 - - - 25,228
----------- ----------- -----------
INVESTMENT IN LIFE INSURANCE 21,686 - - - 21,686
----------- ----------- -----------
OTHER ASSETS 14,492 - - - 14,492
----------- ----------- -----------
TOTAL ASSETS $430,093 $(2,793) $427,300
=========== =========== ===========
WINNEBAGO INDUSTRIES, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED BALANCE SHEET
Dollars in thousands, except par
value February 26, 2005
-----------------------------------
LIABILITIES AND STOCKHOLDERS' Originally
EQUITY Reported Adjustment As Restated
---------------------------------- ----------- ----------- -----------
CURRENT LIABILITIES
Accounts payable, trade $40,894 $- - - $40,894
Income tax payable 11,650 (998) 10,652
Accrued expenses
Accrued compensation 16,107 - - - 16,107
Product warranties 13,152 - - - 13,152
Promotional 12,485 - - - 12,485
Self-insurance 7,971 - - - 7,971
Other 6,916 - - - 6,916
----------- ----------- -----------
Total current liabilities 109,175 (998) 108,177
----------- ----------- -----------
POSTRETIREMENT HEALTH CARE AND
DEFERRED COMPENSATION BENEFITS 88,069 - - - 88,069
----------- ----------- -----------
STOCKHOLDERS' EQUITY
Capital stock, common, par value
$.50; authorized 60,000,000
shares: issued 51,776,000 shares 25,888 - - - 25,888
Additional paid-in capital 15,871 - - - 15,871
Reinvested earnings 421,627 (1,795) 419,832
----------- ----------- -----------
463,386 (1,795) 461,591
Less treasury stock, at cost 230,537 - - - 230,537
----------- ----------- -----------
Total stockholders' equity 232,849 (1,795) 231,054
----------- ----------- -----------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $430,093 $(2,793) $427,300
=========== =========== ===========
WINNEBAGO INDUSTRIES, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
In thousands, except per share
data
Thirteen Weeks Ended
February 26, 2005
-----------------------------------
Originally
Reported Adjustment As Restated
----------- ----------- -----------
Net revenues $239,359 $- - - $239,359
Cost of goods sold 207,305 2,793 210,098
----------- ----------- -----------
Gross profit 32,054 (2,793) 29,261
----------- ----------- -----------
Operating expenses
Selling 4,564 - - - 4,564
General and administrative 5,798 - - - 5,798
----------- ----------- -----------
Total operating expenses 10,362 - - - 10,362
----------- ----------- -----------
Operating income 21,692 (2,793) 18,899
Financial income 639 - - - 639
----------- ----------- -----------
Income before income taxes 22,331 (2,793) 19,538
Provision for taxes 7,965 (998) 6,967
----------- ----------- -----------
Net income $14,366 $(1,795) $12,571
=========== =========== ===========
Income per share - basic $0.43 $(.06) $0.37
=========== =========== ===========
Income per share - diluted $0.42 $(.05) $0.37
=========== =========== ===========
Weighted average shares of common
stock outstanding
Basic 33,672 33,672
=========== ===========
Diluted 34,254 34,254
=========== ===========
In thousands, except per share
data
Twenty-Six Weeks Ended
February 26, 2005
-----------------------------------
Originally
Reported Adjustment As Restated
----------- ----------- -----------
Net revenues $505,492 $- - - $505,492
Cost of goods sold 433,374 2,793 436,167
----------- ----------- -----------
Gross profit 72,118 (2,793) 69,325
----------- ----------- -----------
Operating expenses
Selling 9,118 - - - 9,118
General and administrative 11,355 - - - 11,355
----------- ----------- -----------
Total operating expenses 20,473 - - - 20,473
----------- ----------- -----------
Operating income 51,645 (2,793) 48,852
Financial income 1,133 - - - 1,133
----------- ----------- -----------
Income before income taxes 52,778 (2,793) 49,985
Provision for taxes 18,868 (998) 17,870
----------- ----------- -----------
Net income $33,910 $(1,795) $32,115
=========== =========== ===========
Income per share - basic $1.01 $(.06) $0.95
=========== =========== ===========
Income per share - diluted $0.99 $(.05) $0.94
=========== =========== ===========
Weighted average shares of common
stock outstanding
Basic 33,647 33,647
=========== ===========
Diluted 34,224 34,224
=========== ===========
WINNEBAGO INDUSTRIES, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Twenty-Six Weeks Ended
Dollars in thousands February 26, 2005
-----------------------------------
Originally
Reported Adjustment As Restated
----------- ----------- -----------
Cash flows from operating
activities
Net income $33,910 (1,795) $32,115
Adjustments to reconcile net
income to net cash provided by
operating activities
Depreciation and amortization 4,931 - - - 4,931
Tax benefit of stock options 687 - - - 687
Other 543 - - - 543
Change in assets and liabilities
Decrease (increase) in
receivable and other assets 18,210 - - - 18,210
Increase in inventories (15,719) 2,793 (12,926)
Increase in deferred income
taxes (3) - - - (3)
(Decrease) increase in accounts
payable and accrued expenses (3,419) - - - (3,419)
Increase in income taxes payable 7,316 (998) 6,318
(Decrease) increase in
postretirement benefits (249) - - - (249)
----------- ----------- -----------
Net cash provided by operating
activities 46,207 - - - 46,207
----------- ----------- -----------
Cash flows (used in) provided by
investing activities
Purchases of property and
equipment (4,178) - - - (4,178)
Purchases of short-term
investments (147,473) - - - (147,473)
Proceeds from the sale of short-
term investments 101,094 - - - 101,094
Other (365) - - - (365)
----------- ----------- -----------
Net cash (used in) provided by
investing activities (50,922) - - - (50,922)
----------- ----------- -----------
Cash flows used in financing
activities and capital
transactions
Payments for purchase of common
stock (1,787) - - - (1,787)
Payment of cash dividends (4,712) - - - (4,712)
Proceeds from issuance of common
and treasury stock 2,8766 - - - 2,876
----------- ----------- -----------
Net cash used in financing
activities and capital
transactions (3,623) - - - (3,623)
----------- ----------- -----------
Net decrease in cash and cash
equivalents (8,338) - - - (8,338)
Cash and cash equivalents -
beginning of period 24,445 - - - 24,445
----------- ----------- -----------
Cash and cash equivalents - end of
period $16,107 - - - $16,107
=========== ----------- ===========