Winnebago Industries Reports Results for Fourth Quarter and Fiscal 2005; Cash Dividend Announced
FOREST CITY, Iowa--Oct. 1, 20053, 2005--Winnebago Industries, Inc. , a leading United States motor home manufacturer, today reported net income for the fourth quarter ended August 27, 2005 of $15.4 million, compared to $19.0 million for the fourth quarter of fiscal 2004. On a diluted per share basis, the Company earned 46 cents a share for the fourth quarter of fiscal 2005, compared to 55 cents a share for the fourth quarter last year.Revenues for the fourth quarter of fiscal 2005 were $231.5 million, compared to revenues of $283.0 million for the fourth quarter last year.
Net income for fiscal 2005 was $65.1 million, compared to $70.6 million for fiscal 2004. On a diluted per share basis, the Company earned $1.92 a share, compared to $2.03 a share for fiscal 2004.
Revenues for fiscal 2005 were $992.0 million, compared to $1.1 billion for the previous fiscal year.
"Winnebago Industries' fiscal 2005 results represent the second best year in the Company's 47-year history," said Winnebago Industries' Chairman and CEO Bruce Hertzke. "While revenues and earnings were lower than last year, I am still extremely proud of the performance of the Company."
Hertzke continued, "Results for Winnebago Industries' fourth quarter were negatively impacted by lower sales volume and a shift in product mix to lower priced motor homes, particularly Class C's, offset in part by lower incentive compensation expenses."
The Company's sales order backlog was 2,059 units at August 27, 2005 compared to the backlog of 2,541 units at August 28, 2004. "We believe the decrease in backlog at fiscal 2005 year end is due to lower consumer confidence levels, driven primarily by the volatility of fuel costs. We anticipate these factors, along with a continued shift in product mix, to continue into fiscal 2006 and as a result, have adjusted factory output to meet the current market environment," said Hertzke.
In a meeting held yesterday, Winnebago Industries' Board of Directors declared a quarterly cash dividend of nine cents a share, payable on January 9, 2006 to shareholders of record as of December 9, 2005.
During fiscal 2005, Winnebago Industries repurchased 860,321 shares of the Company's common stock for an aggregate price of approximately $27 million. The Company currently has an open authorization for the purchase of outstanding shares of Winnebago Industries' common stock for an aggregate price of up to $30 million.
Winnebago Industries will conduct a conference call in conjunction with this release at 10 a.m. ET today, Thursday, October 13, 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 the Company's website at www.winnebagoind.com, or from http://www.b2i.us/external.asp?b=1255&id=189&from=wc&L=e 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 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.
Unaudited Consolidated Statements of Income
(In thousands, except per share amounts)
Quarter Ended Fiscal Year Ended
8/27/2005 8/28/2004 8/27/2005 8/28/2004
---------- ---------- ---------- ----------
Net revenues $ 231,461 $ 283,002 $ 991,975 $1,114,154
Cost of goods sold 199,002 241,346 854,997 951,985
---------- ---------- ---------- ----------
Gross profit 32,459 41,656 136,978 162,169
---------- ---------- ---------- ----------
Operating expenses
Selling 6,516 6,986 19,936 20,764
General and
administrative 2,895 5,643 18,787 30,607
---------- ---------- ---------- ----------
Total operating
expenses 9,411 12,629 38,723 51,371
---------- ---------- ---------- ----------
Operating income 23,048 29,027 98,255 110,798
Financial income 741 484 2,635 1,436
---------- ---------- ---------- ----------
Pre-tax income 23,789 29,511 100,890 112,234
Provision for taxes 8,411 10,521 35,817 41,593
---------- ---------- ---------- ----------
Net income $ 15,378 $ 18,990 $ 65,073 $ 70,641
========== ========== ========== ==========
Income per share(a)
Basic $ 0.47 $ 0.56 $ 1.95 $ 2.06
========== ========== ========== ==========
Diluted $ 0.46 $ 0.55 $ 1.92 $ 2.03
========== ========== ========== ==========
Number of shares used
in per share
calculations(a)
Basic 32,946 33,670 33,382 34,214
========== ========== ========== ==========
Diluted 33,342 34,244 33,812 34,789
========== ========== ========== ==========
(a) Adjusted for 2-for-1 stock split on March 5, 2004
Winnebago Industries, Inc.
Unaudited Consolidated Condensed Balance Sheets
(In thousands)
Aug. 27, 2005 Aug. 28, 2004
------------- -------------
ASSETS
Current assets
Cash and cash equivalents $ 19,484 $ 24,445
Short-term investments 93,100 51,100
Receivables 40,910 46,112
Inventories 120,655 130,733
Other 13,943 17,679
------------- -------------
Total current assets 288,092 270,069
Property and equipment, net 63,853 63,995
Deferred income taxes 24,997 25,166
Investment in life insurance 22,066 22,863
Other assets 13,952 12,463
------------- -------------
Total assets $ 412,960 $ 394,556
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 37,229 $ 46,659
Income taxes payable 4,458 4,334
Accrued expenses 48,000 54,285
------------- -------------
Total current liabilities 89,687 105,278
Post retirement health care and
deferred compensation benefits 87,386 87,403
Stockholders' equity 235,887 201,875
------------- -------------
Total liabilities and stockholders'
equity $ 412,960 $ 394,556
============= =============
Certain prior period information has been reclassified to conform to
the current year presentation.
Winnebago Industries, Inc.
Unaudited Condensed Consolidated Statement of Cash Flows
(Dollars in thousands)
Fiscal Year Ended
8/27/2005 8/28/2004
----------- ----------
Cash flows from operating activities:
Net income $ 65,073 $ 70,641
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 9,999 9,628
Tax benefit of stock options 1,177 2,573
Other 1,043 657
Change in assets and liabilities:
Decrease (increase) in receivables and
other assets 5,522 (16,764)
Decrease (increase) in inventories 10,078 (16,451)
Decrease (increase) in deferred income
taxes 3,424 (7,615)
(Decrease) increase in accounts
payable/accrued expenses (15,715) 6,195
Increase in income taxes payable 124 5,759
(Decrease) increase in postretirement
benefits (1,081) 12,061
----------- ----------
Net cash provided by operating activities 79,644 66,684
----------- ----------
Cash flows (used in) provided by investing
activities:
Purchases of property and equipment (10,091) (10,588)
Purchases of short-term investments (255,023) (145,382)
Proceeds from the sale of short-term
investments 213,023 184,391
Other (276) (318)
----------- ----------
Net cash (used in) provided by investing
activities (52,367) 28,103
----------- ----------
Cash flows used in financing activities
and capital transactions:
Payments for purchase of common stock (26,796) (77,668)
Payment of cash dividends (9,985) (6,899)
Proceeds from issuance of common and
treasury stock 4,543 4,953
----------- ----------
Net cash used in financing activities and
capital transactions (32,238) (79,614)
----------- ----------
Net (decrease) increase in cash and cash
equivalents (4,961) 15,173
Cash and cash equivalents-beginning of period 24,445 9,272
----------- ----------
Cash and cash equivalents-end of period $ 19,484 $ 24,445
=========== ==========
Certain prior period information has been reclassified to conform to
the current year presentation.
Winnebago Industries, Inc.
Unaudited Motor Home Deliveries
Quarter Ended Fiscal Year Ended
8/27/2005 8/28/2004 8/27/2005 8/28/2004
---------- ---------- ---------- ----------
Unit deliveries
Class A gas 1,026 1,289 4,527 5,277
Class A diesel 440 686 2,147 2,831
Class C 1,085 1,113 3,963 4,408
---------- ---------- ---------- ----------
Total deliveries 2,551 3,088 10,637 12,516
Winnebago Industries, Inc.
Unaudited Backlog and Dealer Inventory
(Units)
As of
8/27/2005 8/28/2004
---------- ----------
Sales order backlog
Class A gas 637 1,187
Class A diesel 336 614
Class C 1,086 740
---------- ----------
Total backlog(b) 2,059 2,541
Total approximate revenue dollars
(in thousands) $170,000 $220,000
Dealer inventory 4,794 4,978
(b) 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.