Dynamic Growth in Winnebago Industries Reported
16 June 1998
Dynamic Growth in Winnebago Industries' Third Quarter/Nine Months Revenues and Earnings
FOREST CITY, Iowa, June 16 -- Winnebago Industries, Inc.
, one of the world's largest motor home manufacturers, today
announced record revenues of $150.5 million for the third quarter ended
May 30, 1998, an increase of 28 percent when compared to revenues of
$117.2 million for the same period in fiscal 1997. Net income for the third
quarter of fiscal 1998 was $7.3 million, an increase of 97 percent when
compared to net income of $3.7 million for the same quarter of fiscal 1997.
Income per share more than doubled for the third quarter of fiscal 1998 to
31 cents per share from 15 cents per share for the same quarter last year.
Revenues for the nine months ended May 30, 1998 also were a record
$395.1 million, an increase of 17 percent when compared to revenues of
$336.8 million for the same nine month period in fiscal 1997. Net income from
continuing operations for the nine month period was $17.2 million, or 70 cents
per share, a significant increase when compared to net income from continuing
operations of $2.8 million, or 11 cents per share, for the same period in
fiscal 1997. Net income for the fiscal 1997 period reflected a gain on the
disposal of discontinued operations of $16.5 million, or 65 cents per share,
from the November 1996, sale of the Company's Cycle-Sat, Inc. subsidiary.
"Winnebago Industries third quarter results were driven by a much improved
spring selling season and the continued acceptance of our 1998 product lines
as well as the current health of the general economy," said Winnebago
Industries' Chairman, Chief Executive Officer and President Bruce D. Hertzke.
Hertzke continued, "Winnebago Industries' year-to-date results benefited
from increased sales from our expanded product lines. Product development has
been a top priority throughout the past two model years with over 75 percent
of our 1999 motor homes being dramatically redesigned or completely new
compared to our 1997 offerings.
"One of the Company's new 1999 motor homes is the completely redesigned
Vectra Grand Tour," said Hertzke. "Built on the heavy-duty Chevrolet P12 gas
chassis, the Vectra Grand Tour is a widebody bus-style motor home that offers
a kitchen/lounge slideout, bedroom slideout and luxurious amenities previously
found only in diesel pusher motor homes. Additional new motor home offerings
will be introduced throughout the coming months.
"Winnebago Industries' common stock has also performed very well," Hertzke
continued, "having increased in value by over 40 percent since the beginning
of the fiscal year." Winnebago Industries has repurchased approximately
$23 million, or 2.5 million shares, of its common stock since announcing the
plan on December 29, 1997 to repurchase up to $36.5 million worth of common
stock within 18 months.
"Long-term prospects remain extremely bright," said Hertzke.
"Approximately every seven seconds, someone in the U.S. is reaching our prime
target market age of 50. We will continue to develop products to meet the
increasing demands of this vast 'baby boom' market segment. Our strong name
recognition will also be a valuable tool in reaching this buyer along with our
continued plans for growth of the program that licenses companies to use the
Winnebago brand name on their products.
"Winnebago Industries is in an enviable financial and market position,"
Hertzke concluded. "We have an exciting product lineup with orders on hand at
the end of the third quarter approximately 80 percent above those on hand a
year earlier, a solid balance sheet, a state-of-the-art facility, and no long-
term debt. The excellent third quarter and year-to-date results are testimony
that Winnebago Industries is focused on maximizing profitability in the
manufacture of
high-quality recreation vehicles."
Incorporated in 1958, Winnebago Industries, Inc. is now celebrating its
40th Anniversary. Winnebago Industries 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. The products and component parts conform 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.
Unaudited Consolidated Statement of Operations
(In thousands except per share amounts)
Quarter Ended 9-Months Ended
May 30, May 31, May 30, May 31,
1998 1997 1998 1997
Net revenues $150,515 $117,226 $395,120 $336,820
Cost of goods sold 129,610 101,046 341,437 295,362
Gross profit 20,905 16,180 53,683 41,458
Operating expenses:
Selling and delivery 4,645 6,998 14,564 19,999
General and admin. 6,029 3,668 15,741 15,419
Total operating exp. 10,674 10,666 30,305 35,418
Operating income 10,231 5,514 23,378 6,040
Financial income 860 350 2,244 1,464
Pre-tax income from
continuing operations 11,091 5,864 25,622 7,504
Provision for taxes 3,757 2,144 8,600 4,752
Income from continuing
operations 7,334 3,720 17,022 2,752
Gain from sale of
dis-continued Cycle-Sat
subsidiary (less
applicable income tax
provision of $13,339) -- -- -- 16,472
Net income $ 7,334 $ 3,720 $ 17,022 $ 19,224
Earnings per share:
Continuing operations:
Basic $ .31 $ .15 $ .70 $ .11
Diluted .31 .15 .69 .11
Discontinued operations:
Gain from sale of
disc. Cycle-Sat sub.
Basic -- -- -- .65
Diluted -- -- -- .64
Total earnings per share:
Basic .31 .15 .70 .76
Diluted $ .31 $ .15 $ .69 $ .75
Weighted average common
shares outstanding:
Basic 23,642 25,460 24,434 25,423
Diluted 23,912 25,549 24,630 25,529