Winnebago Industries Reports Record Revenues
14 December 1998
Winnebago Industries Reports Record Revenues, 81 Percent Increase in Net Income -- 105 Percent Increase on Per Share Basis --
FOREST CITY, Iowa, Dec. 14 -- Record revenues of
$157.7 million were reported today by Winnebago Industries, Inc.
(NYSE: WGO; CSE; PSE) for the first quarter of fiscal 1999 that ended
November 28, 1998, an increase of 25 percent when compared to revenues of
$125.9 million for the first quarter last year. Net income for the first
quarter was $9.6 million, or 43 cents per diluted share, when compared to net
income of $5.3 million, or 21 cents per diluted share, reported for the first
quarter last year. This was an increase of 81 percent in net income and an
increase of 105 percent on a per diluted share basis.
"We are extremely pleased with the results of our first quarter," said
Winnebago Industries Chairman, Chief Executive Officer and President Bruce D.
Hertzke. "Favorable interest rates, low fuel prices, high consumer confidence
levels and an aging baby boom population have stimulated upward momentum for
us as well as the recreation vehicle market in general," continued Hertzke.
"Due to the excellent acceptance of our 1998 and 1999 motor home lines,
Winnebago Industries' retail sales have grown faster than the growth
experienced by the RV industry as a whole."
According to Statistical Surveys, Inc., an independent retail reporting
service, Winnebago Industries' retail sales for calendar year to date through
September showed an increase of 14.5 percent over the Company's retail sales
of Class A & C motor homes for the same period last year. This increase in
retail sales is 23.9 percent above the industry increase of 11.7 percent.
As reported by Statistical Surveys, Winnebago Industries is the top
selling manufacturer of Class C motor homes for the month of September,
quarter-to-date and calendar year-to-date through September, having
experienced an increase of 31.6 percent in unit sales volume calendar year-to-
date compared to the same period last year. Winnebago brand motor homes are
also the top selling Class A brand for the month, quarter-to-date and year-to-
date through September, with an increase of 21.7 percent in motor home sales
volume calendar year-to-date compared to the same period last year.
Hertzke concluded, "Winnebago Industries' employees worked diligently to
develop and produce an exciting and well valued motor home lineup for 1999 and
have been extremely pleased with the positive response from our dealers and
retail customers since introducing these new motor home products. From the
positive response received from dealers at the recent national RV show in
Louisville, Ky., we look for continued growth. Our sales order backlog is
currently over 3,000 units, the highest in the Company's history."
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 Statements of Operations
(Thousands except per share amounts)
Thirteen Weeks Ended
11/28/98 11/29/97
Net revenues $157,664 $125,896
Cost of goods sold 132,788 107,473
Gross profit 24,876 18,423
Operating expenses:
Selling and delivery 5,102 5,729
General and admin. 5,694 5,266
Total operating exp. 10,796 10,995
Operating income 14,080 7,428
Financial income 581 613
Pretax income 14,661 8,041
Provision for taxes 5,012 2,703
Net income $9,649 $5,338
Net income per common share:
Basic $.43 $.21
Diluted .43 .21
Weighted average common
shares outstanding:
Basic 22,224 25,481
Diluted 22,458 25,612