Winnebago Industries Reports Record Results for Fiscal 1999
6 October 1999
Winnebago Industries Reports Record Results for Fiscal 1999
FOREST CITY, Iowa, Oct. 5 -- Winnebago Industries, Inc.
, one of the world's leading motor home manufacturers, today
reported record revenues and earnings for the 1999 fiscal year. Revenues of
$667.7 million for the year ended August 28, 1999, were a 27 percent increase
over revenues of $525.1 million for the previous fiscal year.
Net income for fiscal 1999 was $44.3 million, an 82 percent increase when
compared to net income of $24.4 million for fiscal 1998. Net income per
diluted share for fiscal 1999 was $1.96, a 96 percent increase compared to
$1.00 for the previous fiscal year.
Revenues for the fourth quarter of fiscal 1999 were also a record
$164.3 million, a 26 percent increase, compared to $130.0 million, for the
fourth quarter last year. The Company's net income for the fourth quarter of
fiscal 1999 was $10.0 million, or 44 cents per diluted share, an increase of
36 percent compared to net income of $7.4 million, or 32 cents per diluted
share, in the fourth quarter one year ago.
"Winnebago Industries had tremendous success in fiscal 1999," said
Winnebago Industries Chairman, CEO and President Bruce Hertzke. "We are very
proud of our excellent employees for meeting and exceeding all company
production and revenue goals for fiscal 1999. Our employees have worked
extremely hard to continue to bring an exceptional lineup of exciting new
products to the marketplace, while maintaining quality workmanship and cost
efficiencies.
"Favorable market conditions were also a factor in Winnebago Industries'
success," Hertzke said. "Continued strong demand is being driven by consumer
confidence, favorable interest rates and favorable demographic trends."
Hertzke continued, "Product development has continued to be a top priority
for Winnebago Industries during the past three years, during which time
literally all of our motor homes have been either dramatically redesigned or
are completely new compared to our 1997 offerings. The Company's new 2000
products were extremely well received by dealers at our Dealer Days event in
August where the brand new Winnebago Journey and completely redesigned
Winnebago Adventurer and Itasca Suncruiser motor home lines were introduced.
As a result of the excellent acceptance of our 2000 motor home lineup, the
Company's sales order backlog is currently 3,070 units, an increase of
48.6 percent when compared to orders on hand at this time last year."
According to the latest report by Statistical Surveys Inc., a national
retail reporting service, RV industry motor home unit sales grew by
12.2 percent since the beginning of calendar 1999 through July. Hertzke said,
"Winnebago Industries' retail sales have increased by an even greater rate,
having increased 13.8 percent since the beginning of calendar 1999 through
July.
"Winnebago Industries' product development focus, primarily on Class A
products for fiscal 1999, has led to even greater retail sales growth of that
segment," said Hertzke. "According to Statistical Surveys, Inc. Winnebago
Industries' total Class A retail sales unit volume grew by 14.2 percent for
calendar year 1999 through July, while Class A's within the RV industry in
general grew by 11.6 percent. In addition, our individual brands have shown
retail sales unit growth with the Winnebago brand Class A motor homes
continuing in the number one industry position earned in calendar 1998. Retail
sales unit volume of Winnebago brand Class A motor homes grew 15.0 percent,
while the Itasca brand Class A motor homes experienced 16.3 percent growth in
retail sales unit volume."
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. The Company believes its products conform to the most rigorous quality
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 availability of chassis, slower than anticipated sales
of new or existing products, a significant increase in interest rates, 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.
Unaudited Consolidated Statements of Operations
(In thousands except per share amounts)
Quarter Ended Fiscal Year Ended
8/28/99 8/29/98 8/28/99 8/29/98
Net revenues $164,308 $129,974 $667,650 $525,094
Cost of goods sold 137,636 109,497 557,991 450,934
Gross profit 26,672 20,477 109,659 74,160
Operating expenses:
Selling and delivery 6,932 6,633 23,525 21,197
General and admin. 6,040 4,245 22,152 19,986
Total operating
expenses 12,972 10,878 45,677 41,183
Operating income 13,700 9,599 63,982 32,977
Financial income 811 706 2,627 2,950
Pre-tax income 14,511 10,305 66,609 35,927
Provision for taxes 4,465 2,943 22,349 11,543
Net income $10,046 $7,362 $44,260 $24,384
Earnings per share:
Basic $0.45 $0.32 $1.99 $1.01
Diluted $0.44 $0.32 $1.96 $1.00
Weighted average common
shares outstanding:
Basic 22,277 23,121 22,209 24,106
Diluted 22,696 23,363 22,537 24,314