Winnebago Industries Reaches Record Revenues
14 October 1998
Winnebago Industries Reaches Record Revenues, Exceeding the Half Billion Dollar Mark for Fiscal 1998
FOREST CITY, Iowa, Oct. 14 -- Winnebago Industries, Inc.
, today reported record revenues of $525.1 million for the year
ended August 29, 1998, a 20 percent increase compared to revenues of
$438.1 million for the previous fiscal year.
Net income from continuing operations for fiscal 1998 was $24.4 million,
or $1.00 per diluted share, a significant increase when compared to net income
from continuing operations of $6.6 million, or 26 cents per diluted share, for
fiscal 1997. Net income for fiscal 1997 reflected a gain on the sale of the
Company's Cycle-Sat, Inc., subsidiary of $16.5 million, or 64 cents per
diluted share.
Revenues for the fourth quarter of fiscal 1998 were also a record
$130.0 million, a 28 percent increase, compared to $101.3 million for the same
period last year. The Company's net income for the fourth quarter of fiscal
1998 was $7.4 million, or 32 cents per diluted share, compared to
$3.8 million, or 15 cents per diluted share, in the same quarter one year ago.
"Income from continuing operations for fiscal 1998 nearly quadrupled when
compared to the previous year due to several factors, the most dramatic of
which was the outstanding acceptance of our 1998 and 1999 motor homes by both
wholesale and retail customers, as well as very favorable market conditions,"
said Winnebago Industries' Chairman, CEO and President Bruce D. Hertzke. "Not
only has the recreation vehicle (RV) industry been growing this year,
according to the latest report by Statistical Surveys Inc., a national retail
reporting service, our motor home sales have outperformed the motor home
industry by 12 percent since the beginning of calendar 1998 through August.
Industry growth in general this year has been stimulated by favorable interest
rates, lower fuel prices and high consumer confidence levels." In contrast,
fiscal 1997 was negatively impacted by soft market conditions for the
Company's motor homes in the last half of fiscal 1997 and an operating loss in
the fourth quarter of fiscal 1997 of $7.7 million realized from the
operations, and the August 1997 sale of Winnebago Industries Europe, GmbH
(WIE). Also during the fourth quarter of fiscal 1997, the Company was able to
record a tax credit of approximately $3.7 million resulting from the tax loss
from the closing and sale of WIE.
Winnebago Industries Re-Focuses on Core Business
"Fiscal 1998 results represent the first full year of our strategy of
re-focusing on our core business of manufacturing quality motor homes,"
continued Hertzke. "Product development has been a top priority throughout
the past two model years, providing us with the best motor home lineup in
Winnebago Industries' history with over 75 percent of our 1999 motor homes
being dramatically redesigned or completely new compared to our 1997
offerings. The Company's new 1999 products were extremely well received by
dealers at our Dealer Days event in August where the brand new top-of-the-line
Ultimate motor home series was introduced. As a result of the acceptance of
our 1999 lineup, outstanding orders for the Company's 1999 motor homes have
hit an all-time high of over 2,100 orders on hand, considerably ahead of
orders on hand at this time last year.
Common Stock Repurchase Program Complete
In December of 1997, Winnebago Industries announced a program to
repurchase up to $36.5 million of the Company's common stock. In September
1998, the program was completed, the Company having repurchased
3,612,600 shares. "Also, during the summer, we commissioned a search for lost
shareholders and will within the next two months offer to repurchase the
common stock directly from shareholders holding less than 100 shares of
Winnebago Industries' stock," said Hertzke.
Incorporated in 1958, Winnebago Industries, Inc. is 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. Winnebago Industries also
has licensing agreements utilizing the Winnebago brand name for Winnebago
Truck Campers by Sun-Lite, Inc., Winnebago Conversion Vehicles by Choo Choo
Customs Group, Inc., Winnebago Park Model Homes by Chariot Eagle, Inc. and
Winnebago Tents by Avid Outdoor. 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
(Thousands except per share amounts)
Thirteen Weeks Ended Fifty-Two Weeks Ended
8/29/98 8/30/97 8/29/98 8/30/97
Net revenues $129,974 $101,312 $525,094 $438,132
Cost of goods sold 109,497 90,178 450,934 385,540
Gross profit 20,477 11,134 74,160 52,592
Operating expenses:
Selling and delivery 6,633 7,132 21,197 27,131
General and admin. 4,245 4,894 19,986 20,313
Total operating exp. 10,878 12,026 41,183 47,444
Operating income (loss) 9,599 (892) 32,977 5,148
Financial income 706 380 2,950 1,844
Pretax income (loss) from
continuing operations 10,305 (512) 35,927 6,992
Provision (credit) for
taxes 2,943 (4,336) 11,543 416
Income from
continuing operations 7,362 3,824 24,384 6,576
Discontinued operations:
Gain on sale of
Cycle-Sat subsidiary
(less applicable income
tax provision of $13,339) --- --- --- 16,472
Net income $ 7,362 $ 3,824 $ 24,384 $ 23,048
Earnings per share:
Continuing operations:
Basic $ .32 $ .15 $ 1.01 $ .26
Diluted .32 .15 1.00 .26
Discontinued operations:
Gain from sale of
Cycle-Sat subsidiary
Basic --- --- --- .65
Diluted --- --- --- .64
Net earnings per share:
Basic $ .32 $ .15 $ 1.01 $ .91
Diluted .32 .15 1.00 .90
Weighted average common
shares outstanding:
Basic 23,121 25,471 24,106 25,435
Diluted 23,363 25,594 24,314 25,550