Winnebago Industries Reports Q2 Revenues
16 March 1999
Winnebago Industries Reports Record Revenues for the Second Quarter and First Six Months
FOREST CITY, Iowa, March 16 -- 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
1999. Revenues for the quarter ended February 27, 1999, were $154.1 million,
an increase of 30 percent, when compared to revenues of $118.7 million for the
second quarter last year. Net income for the quarter was $10.0 million, an
increase of 129 percent, when compared to $4.4 million for the second quarter
of fiscal 1998, while on a per share basis, the Company earned 45 cents per
diluted share, an increase of 150 percent, when compared to 18 cents per
diluted share for the same period last year.
For the first six months of fiscal 1999, the Company reported revenues of
$311.8 million, an increase of 27 percent, when compared to revenues of
$244.6 million for the same period last year. Net income for the first half
of fiscal 1999 was $19.6 million, an increase of 102 percent, when compared to
the net income of $9.7 million reported for the same period last year, while
on a per share basis, the Company earned 88 cents per diluted share, an
increase of 126 percent, compared to 39 cents per diluted share for the first
half of fiscal 1998.
"We are extremely pleased with our results for the second quarter and the
first six months of fiscal 1999," said Winnebago Industries' Chairman, Chief
Executive Officer and President Bruce Hertzke. "These extraordinary results
show the sustained momentum for our products. Market conditions continue to
remain very favorable, with low interest rates, low fuel prices and very high
consumer confidence levels. Our 1999 products have been well received by our
dealers and retail customers. Traffic at the early spring shows has been very
encouraging with record-breaking attendance and sales levels. As of today, the
sales order backlog for the Company's products is approximately 3400 units, or
143% ahead of orders on hand at this time last year."
Winnebago Industries was recognized in February for the Company's position
as the top selling manufacturer of Class C motor homes for calendar 1998.
(Class C models are mini motor homes that are built on a van-type chassis on
which Winnebago Industries constructs a living area with access to the
driver's compartment.) According to Statistical Surveys, Inc., a retail
reporting firm in Grand Rapids, Mich., the Winnebago brand was also recognized
as the top selling Class A brand for the same period. (Class A models are
described as motor homes that are constructed directly on medium-duty truck
chassis that include the engine and drivetrain components.)
"We continue to see market share growth, particularly in segments where we
introduced new products for 1999, such as the Winnebago Adventurer and Itasca
Suncruiser 34-foot diesel pusher models, and the all-new Ultimate series motor
homes. Designed as new entries into our high line luxury diesel pusher
segment, Winnebago Industries has shipped more of the Ultimate series motor
homes in the first half of this fiscal year than of the Luxor, the Company's
previous high-line motor home, shipped for the last two fiscal years
combined."
Due to the increased demand for the Company's motor homes, Winnebago
Industries announced in September plans to open a third satellite facility in
Iowa. The new Charles City hardwood facility is nearing completion with all
departments to be in production within the next 30 days.
With the Company's continued goal to increase shareholder value, a
voluntary program for shareholders owning fewer than 100 shares of Winnebago
Industries common stock was initiated in November in which these shareholders
could conveniently sell all their shares or purchase enough additional shares
to increase their holdings to 100 shares. A total of 60,823 shares were
repurchased from 40 percent of eligible shareholders at a cost of
approximately $834,000, an average of $13.72 per share.
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
This press release contains forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. Investors are
cautioned that forward-looking statements are inherently uncertain. A number
of factors could cause actual results to differ materially from these
statements, including slower than anticipated sales of new or existing
products, a general slowdown in the economy, or new product introductions by
competitors. Additional information concerning certain risks and
uncertainties that could cause actual results to differ materially from that
projected or suggested is contained in the Company's filings with the
Securities and Exchange Commission (SEC) over the last 12 months, copies of
which are available from the SEC or from the Company upon request.
Winnebago Industries, Inc.
Consolidated Statement of Operations
(Unaudited)
(in thousands except per share amounts)
Quarter Ended Six-Months Ended
Feb. 27, Feb. 28, Feb. 27, Feb. 28,
1999 1998 1999 1998
Net revenues $154,132 $118,709 $311,796 $244,605
Cost of goods sold 129,763 104,354 262,551 211,827
Gross profit 24,369 14,355 49,245 32,778
Operating expenses:
Selling and delivery 5,494 4,190 10,596 9,919
General and admin. 4,289 4,446 9,983 9,712
Total operating exp. 9,783 8,636 20,579 19,631
Operating income 14,586 5,719 28,666 13,147
Financial income 565 771 1,146 1,384
Pre-tax income 15,151 6,490 29,812 14,531
Provision for taxes 5,197 2,140 10,209 4,843
Net income $ 9,954 $ 4,350 $ 19,603 $ 9,688
Earnings per share:
Basic $ .45 $ .18 $ .88 $ .39
Diluted $ .45 $ .18 $ .88 $ .39
Weighted average common
shares outstanding:
Basic 22,145 24,179 22,184 24,830
Diluted 22,317 24,366 22,387 24,989