Winnebago Industries Reports Record Revenues for the Second Quarter and First Six Months
19 March 1998
Winnebago Industries Reports Record Revenues for the Second Quarter and First Six Months
FOREST CITY, Iowa, March 19 -- Winnebago Industries, Inc.
, one of the nation's leading motor home manufacturers, today
reported record revenues for the second quarter and first six months of fiscal
1998. Revenues for the quarter ended February 28, 1998, were $118.7 million,
compared to revenues of $105.7 million for the second quarter last year. Net
income for the quarter was $4.4 million, or 18 cents a share, a dramatic
increase compared with a net loss of $3.7 million, or 15 cents a share, for
the same period last year.
For the first six months of fiscal 1998, the Company reported revenues of
$244.6 million with net income of $9.7 million, or 39 cents a share. In
comparison, the Company had revenues of $219.6 million with net income of
$15.5 million, or 61 cents a share for the first six months last year. This
included a gain of $16.5 million, or 65 cents a share from the sale of the
Company's Cycle-Sat, Inc. subsidiary. Continuing operations for the first six
months of fiscal 1997 resulted in a net loss of $968,000, or four cents a
share.
"We were pleased that revenues hit record levels for the second quarter
and the first six months of fiscal 1998," said Winnebago Industries' President
and Chief Operating Officer Bruce Hertzke. "Results from continuing operations
for the second quarter and the first six months of fiscal 1998 were
dramatically improved over those of last year due primarily to increased motor
home sales and significant decreases in discounts and promotional programs. In
addition, the second quarter of fiscal 1997 included charges resulting from a
substantial writedown of selected assets of the Company's former subsidiary,
Winnebago Industries Europe, GmbH. The subsidiary was eventually sold in the
fourth quarter of fiscal 1997.
"Our 1998 products have been well received by our dealers and retail
customers," Hertzke continued. "Looking forward, we expect motor home sales
to continue to show improvement over last year's results. Order backlog for
the Company's products are currently running approximately 80% ahead of orders
last year."
"As we celebrate our 40th year in the recreation vehicle industry,
Winnebago Industries is in an enviable financial and market position," said
Fred Dohrmann, Winnebago Industries' Chairman and Chief Executive Officer. "I
retire with a true sense of fulfillment. As Bruce Hertzke takes over the reins
of the Company on April 1, he starts with an exciting product lineup, a solid
balance sheet and a common stock value that has risen over 50 percent since
the beginning of fiscal 1998. The excellent second quarter results are
testimony that Winnebago Industries has completed its transition to focus on
the manufacture of high-quality recreation vehicles and is now in a position
to benefit from the significant influx from people in the baby boom generation
now entering the RV marketplace."
Winnebago Industries, Inc. is a leading manufacturer of motor homes that
are 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, conforming to what the Company believes to be the most
rigorous testing in the RV 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. Visit Winnebago Industries' Web site at
http://www.winnebagoind.com/
Winnebago Industries, Inc.
Consolidated Statement of Operations
(Unaudited)
(in thousands except per share amounts)
Quarter Ended Six-Months Ended
February 28, March 1, February 28, March 1,
1998 1997 1998 1997
Net revenues $118,709 $105,702 $244,605 $219,594
Cost of goods sold 104,354 95,503 211,827 194,316
Gross profit l4,355 10,199 32,778 25,278
Operating expenses:
Selling and delivery 4,190 6,663 9,919 13,001
General and admin. 4,446 6,866 9,712 11,751
Total operating exp. 8,636 13,529 19,631 24,752
Operating income (loss) 5,719 (3,330) 13,147 526
Financial income 771 745 1,384 1,114
Pre-tax income (loss)
from continuing
operations 6,490 (2,585) 14,531 1,640
Provision for taxes 2,140 1,089 4,843 2,608
Income (loss) from
continuing operations 4,350 (3,674) 9,688 (968)
Gain from sale of dis-
continued Cycle-Sat
subsidiary (less applicable
income tax provision of
$13,339) --- --- --- 16,472
Net income (loss) $4,350 $3,674 $9,688 $15,504
Earnings (loss) per share:
Continuing operations:
Basic $.18 $(.15) $.39 $(.04)
Diluted .18 (.15) .39 (.04)
Discontinued operations:
Gain from sale of
disc. Cycle-Sat sub.
Basic --- --- --- .65
Diluted --- --- --- .65
Total earnings (loss)
per share:
Basic .18 (.15) .39 .61
Diluted $.18 $(.15) $.39 $.61
Weighted average common
shares outstanding:
Basic 24,179 25,431 24,830 25,405
Diluted 24,366 25,431 24,989 25,405
SOURCE Winnebago Industries, Inc.