Winnebago Industries Announces Annual Results
16 October 1997
Winnebago Industries Announces Annual Results
Dividend Announced
FOREST CITY, Iowa, Oct. 16 -- Winnebago Industries, Inc.
, today reported revenues of $438.1 million for the year ended
August 30, 1997, compared to revenues of $484.8 million for the previous
fiscal year.
Net income for fiscal 1997 was $23.0 million, or 91 cents per share,
compared to $12.4 million, or 49 cents per share, for the same period last
year. Included in fiscal 1997 net income is a $16.5 million net gain on the
sale of the Company's 80 percent interest in Cycle-Sat, Inc.
Revenues for the fourth quarter of fiscal 1997 were $101.3 million
compared to $120.5 million the same period last year. The Company's net income
for the fourth quarter of fiscal 1997 was $3.8 million, or 15 cents per share,
compared to $1.7 million, or 7 cents per share, in the same quarter one year
ago.
Operating results for fiscal 1997 were negatively impacted by soft market
conditions for the Company's motor homes in the last half of fiscal 1997
causing an increase in promotional program costs to move motor homes into the
retail market. Also impacting operating results for the year was a loss of
$7.7 million realized from the operations and the August 1997 sale of
Winnebago Industries Europe, GmbH (WIE).
The fourth quarter results of fiscal 1997 were impacted by continued soft
market conditions for the Company's motor homes and by losses from the
Company's European subsidiary, WIE. Also during the fourth quarter of fiscal
1997, the Company was able to record a tax credit of approximately $3.7
million for the closing of WIE.
Company re-focuses on core business
"Fiscal 1997 has been a year of transition for Winnebago Industries as we
divested ourselves of businesses that did not contribute to the growth of our
core business of manufacturing quality motor homes," said Winnebago Industries
Chairman and Chief Executive Officer Fred G. Dohrmann.
"Intensive product development has led us to bring to market the most
extensive new product lineup in Winnebago Industries history," Dohrmann
continued. "We recognized weakness in some of our 1997 Class A product line
and took action to make improvements like widebody floorplans and slideout
rooms. Over one half of our 1998 products feature new or significantly
redesigned models, with the most revolutionary new product offering being the
brand new Winnebago Chieftain and Itasca Sunflyer Class A motor home series.
Winnebago Industries started from scratch and utilized a great deal of new
technology when designing the widebody, basement-styled Chieftain and
Sunflyer. Owners of Chieftain and Sunflyer slideout models can reap the
benefits of increased living space without sacrificing storage. Most
Chieftain and Sunflyer models include a new galley and couch slideout with the
new StoreMore slideout system. This system provides spacious interior and
exterior compartments that extend with the slide for easy access to storage."
"The Company's new 1998 products were well received by dealers at our
Dealer Days event in August," said Dohrmann. "As a result, initial orders for
the Company's 1998 products are currently running considerably ahead of orders
received by this time last year."
Dividend Announced
The Company's board of directors today announced it intends to continue to
pay semi-annual cash dividends, the first of which will be in the amount of
ten cents per share, to be paid on January 5, 1998 to shareholders of record
as of December 5, 1997. Winnebago Industries cash dividends totaled 20 cents
per share in fiscal 1997.
Winnebago Industries, Inc. is a leading manufacturer of motor homes, self-
contained recreation vehicles used primarily in leisure travel and outdoor
recreation activities. Other products manufactured by the Company consist
principally of a variety of component products for other manufacturers. The
Company builds quality products with state-of-the-art computer-aided design
and manufacturing systems on automotive-styled assembly lines. These products
conform to what the Company believes to be the most rigorous testing in the
recreation vehicle industry. 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. Winnebago Industries press releases are available through Company
News On-Call by fax, 800-758-5804, ext. 105967, or on-line at
http://www.prnewswire.com/ Visit Winnebago Industries Web site at
http://www.winnebagoind.com/.
Winnebago Industries, Inc.
Consolidated Statement of Operations
(Thousands except per share amounts)
Fifty-Two Fifty-Three
Thirteen Weeks Ended Weeks Ended Weeks Ended
8/30/97 8/31/96 8/30/97 8/31/96
Net revenues $101,312 $120,545 $438,132 $484,804
Cost of goods sold 90,178 102,655 385,540 417,231
Gross profit 11,134 17,890 52,592 67,573
Operating expenses:
Selling and delivery 7,132 7,398 27,131 25,290
General and admin. 4,894 4,068 20,313 21,574
Total operating exp. 12,026 11,466 47,444 46,864
Operating (loss) income (892) 6,424 5,148 20,709
Financial income (expense) 380 (624) 1,844 354
Pretax (loss) income from
continuing operations (512) 5,800 6,992 21,063
(Credit) provision for taxes(4,336) 1,640 416 6,639
Income from continuing
operations 3,824 4,160 6,576 14,424
Discontinued operations:
Income from discontinued
operation (less applicable
income tax provisions of $96,
and $261, respectively --- 218 --- 593
(Loss) gain from the disposal
of discontinued operations
(less applicable income tax
(credits) provisions of ($1,157),
$13,339 and ($1,157),
respectively) --- (2,632) 16,472 (2,632)
Net income $ 3,824 $ 1,746 $ 23,048 $ 12,385
Net income (loss) per
common share:
Continuing operations $ .15 $ .16 $ . 26 $ .57
Discontinued operations:
Income from discontinued
operations --- .01 --- .02
(Loss) gain from the
disposal of discontinued
oper. --- (.10) .65 (.10)
Net income $ .15 $ .07 $ .91 $ .49
Weighted average number of
shares and equivalents
outstanding 25,471 25,353 25,435 25,349
SOURCE Winnebago Industries, Inc.