Winnebago Industries Reports First Quarter Fiscal 2006 Revenues and Earnings
FOREST CITY, Iowa--Dec. 1, 20054, 2005--Winnebago Industries, Inc., , the leading United States (U.S.) motor home manufacturer, today reported financial results for the Company's first quarter ended November 26, 2005.Net income for the first quarter was $14.6 million, compared to net income of $19.5 million for the first quarter last year. On a diluted per share basis, the Company earned 44 cents a share for the first quarter of fiscal 2006, compared to net income of 57 cents a share for the first quarter last year. Included as a reduction to net income in the first quarter of fiscal 2006 was $1.5 million, or 5 cents per diluted share, of stock option expense due to the adoption of Statement of Financial Accounting Standards No. 123R, Share-Based Payment on August 28, 2005, which was not effective in the first quarter of last year.
Revenues for the first quarter of fiscal 2006 were $232.3 million, compared to revenues of $266.1 million for the first quarter of fiscal 2005.
"Revenues and net income for the quarter were negatively impacted primarily by lower motor home deliveries as a result of lower consumer confidence, which in our opinion is due mainly to the increase in fuel prices," said Winnebago Industries' Chairman and CEO Bruce Hertzke. "We also experienced a shift in product mix weighted more heavily toward lower priced products in the first quarter."
The Company's sales order backlog was 2,013 units at November 26, 2005, compared to the backlog of 2,080 units at November 27, 2004. Hertzke continued, "Following industry trends, the sales order backlog demonstrated the shift in mix of products to lower priced motor homes. In addition, positive dealer and retail consumer response to the Company's new Winnebago View and Itasca Navion fuel efficient Class C diesel motor homes have also positively impacted our Class C backlog."
"Dealer reaction to Winnebago Industries' new products at the RVIA show in Louisville, Kentucky in early December was positive, particularly to the Winnebago View and Itasca Navion models which went into production earlier this year," said Winnebago Industries' President Ed Barker.
Also during the recent Louisville Show, Winnebago Industries accepted the prestigious Quality Circle Award for the tenth consecutive year from the Recreation Vehicle Dealer Association. "We are extremely proud to receive the Quality Circle Award this year, and particularly proud to be the only manufacturer to receive this award each year for the past decade," said Hertzke. "We consider the Dealer Satisfaction Index survey to be a critical measurement tool for the quality of our products, our sales and service programs and our manufacturing processes. We greatly appreciate our dealer partners continued confidence in Winnebago Industries and our employees for their continued diligence to ensure that every Winnebago Industries motor home, program and service provided is of the highest quality."
Winnebago Industries repurchased 192,000 shares of the Company's common stock for an aggregate consideration of approximately $5.2 million during the first quarter of fiscal 2006. The Company has approximately $24.8 million remaining on the current share repurchase authorization.
According to Statistical Surveys, Inc., an independent retail reporting service, Winnebago Industries leads the industry with 18.0 percent of the combined Class A and Class C retail market for the first 10 months of calendar 2005.
Winnebago Industries will conduct a conference call in conjunction with this release at 10 a.m. ET today, Wednesday, December 14, 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. The event will be archived and available for replay for the next 90 days.
About Winnebago Industries
Winnebago Industries, Inc. is the leading U.S. 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
November 26, November 27,
2005 2004
------------ ------------
Net revenues $232,255 $266,133
Cost of goods sold 201,091 226,069
------------ ------------
Gross profit 31,164 40,064
------------ ------------
Operating expenses
Selling 4,673 4,554
General and administrative 5,049 5,557
------------ ------------
Total operating expenses 9,722 10,111
------------ ------------
Operating income 21,442 29,953
Financial income 922 494
------------ ------------
Income before income taxes 22,364 30,447
Provision for taxes 7,794 10,903
------------ ------------
Net income $14,570 $19,544
============ ============
Income per common share:
Basic $0.44 $0.58
Diluted $0.44 $0.57
Weighted average common
shares outstanding:
Basic 32,934 33,606
Diluted 33,221 34,178
Winnebago Industries, Inc.
Unaudited Consolidated Condensed Balance Sheets
(In thousands)
November 26, August 27,
2005 2005
------------ ------------
ASSETS
Current assets:
Cash and cash equivalents $25,766 $19,484
Short-term investments 110,000 93,100
Receivables, net 24,400 40,910
Inventories 114,026 120,655
Other 15,313 13,943
------------ ------------
Total current assets 289,505 288,092
Property and equipment, net 62,171 63,853
Deferred income taxes 24,535 24,997
Investment in life insurance 20,548 22,066
Other assets 15,564 13,952
------------ ------------
Total assets $412,323 $412,960
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $25,949 $37,229
Income taxes payable 11,858 4,458
Accrued expenses 43,732 48,936
------------ ------------
Total current liabilities 81,539 90,623
Postretirement health care and deferred
compensation benefits, net of current
portion 86,413 86,450
Stockholders' equity 244,371 235,887
------------ ------------
Total liabilities and stockholders'
equity $412,323 $412,960
============ ============
Winnebago Industries, Inc.
Unaudited Condensed Consolidated Statement of Cash Flows
(Dollars in thousands)
Quarter Ended
November 26, November 27,
2005 2004
------------ ------------
Operating activities:
Net income $14,570 $19,544
Adjustments to reconcile net income to net
cash provided by
operating activities
Depreciation 2,662 2,444
Stock compensation 1,851 24
Deferred income taxes 276 593
Excess tax benefit from stock-based
compensation (7) ---
Tax benefit of stock options --- 450
Other 297 314
Change in operating assets and liabilities:
Receivable and other assets 15,368 19,805
Inventories 6,629 (6,615)
Accounts payable and accrued expenses (16,125) (18,517)
Income taxes payable 7,432 10,109
Postretirement benefits (564) (183)
------------ ------------
Net cash provided by operating activities 32,389 27,968
------------ ------------
Investing activities:
Purchases of short-term investments (49,500) (83,780)
Proceeds from the sale or maturity of
short-term investments 32,600 54,800
Purchases of property and equipment (1,398) (1,498)
Other 162 16
------------ ------------
Net cash used in investing activities (18,136) (30,462)
------------ ------------
Financing activities:
Payments for purchase of common stock (5,184) ---
Payment of cash dividends (2,969) (2,351)
Proceeds from issuance of treasury stock 175 1,662
Excess tax benefit from stock-based
compensation 7 ---
------------ ------------
Net cash used in financing activities (7,971) (689)
------------ ------------
Net increase in cash and cash equivalents 6,282 (3,183)
Cash and cash equivalents at beginning of
period 19,484 24,445
------------ ------------
Cash and cash equivalents at end of period $25,766 $21,262
============ ============
Certain prior period information has been reclassified to conform to
the current year presentation.
Winnebago Industries, Inc.
Unaudited Motor Home Deliveries
Quarter Ended
November 26, November 27,
2005 2004
------------ ------------
Unit deliveries
Class A gas 901 1,326
Class A diesel 422 596
Class C 1,171 903
------------ ------------
Total deliveries 2,494 2,825
Winnebago Industries, Inc.
Unaudited Backlog and Dealer Inventory
(Units)
As of
November 26, November 27,
2005 2004
------------ ------------
Sales order backlog
Class A gas 494 915
Class A diesel 495 494
Class C 1,024 671
------------ ------------
Total backlog(a) 2,013 2,080
Total approximate revenue dollars
(in thousands) $184,500 $191,200
Dealer inventory 5,036 5,138
(a) The Company includes in its backlog all accepted purchase orders
from dealers scheduled to be shipped 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.