Winnebago Industries Reports Record 1st Quarter Results
13 December 1999
Winnebago Industries Reports Record 1st Quarter Results; Eighth Consecutive Record Quarter/Company Receives Industry Award
FOREST CITY, Iowa, Dec. 13 -- Record revenues of
$182.6 million were reported today by Winnebago Industries, Inc.
for the first quarter of fiscal 2000 that ended November 27, 1999, an increase
of 15.8 percent when compared to revenues of $157.7 million for the first
quarter last year. This was the eighth consecutive quarter the Company has
announced record revenues. Net income for the first quarter was
$12.4 million, or 55 cents per diluted share, when compared to net income of
$9.6 million, or 43 cents per diluted share, reported for the first quarter
last year. This was an increase of 29.2 percent in net income and an increase
of 27.9 percent on a per diluted share basis.
"Winnebago Industries' excellent sales and earnings in the first quarter
are a result of our continued sales momentum," said Winnebago Industries'
Chairman, CEO and President Bruce D. Hertzke. "The excellent acceptance of
our new 2000 motor home products by both our dealers and retail customers, and
favorable market conditions continue to be factors in Winnebago Industries'
success. Continued strong demand, evidenced by a sales order backlog of
approximately 3,000 units, is being driven by the company's reputation for
high quality motor homes, new product offerings, as well as strong consumer
confidence, favorable interest rates and demographic trends that are
anticipated to be a factor in growth for the next 30 years."
The Company further expanded its product offerings with the introduction
of a brand new 2000 Itasca Horizon in Winnebago Industries' diesel-pusher
lineup during the recent 37th Annual National RV Trade Show held in
Louisville, Kentucky. This product, along with the Company's entire product
line of Winnebago, Itasca, Rialta and Ultimate motor homes were
enthusiastically received at the show. Winnebago Industries also expanded its
Ability Equipped product offerings for wheel-chair bound motor home
enthusiasts with a front-wheel-drive Ability Equipped Rialta that was
introduced at the show.
Quality Circle Award
Also at the Louisville Show, Winnebago Industries received the prestigious
Quality Circle Award from the Recreation Vehicle Dealers' Association (RVDA).
Winnebago Industries is the only motor home manufacturer to have won the award
each year since its inception four years ago. "We are particularly excited
about this award, as it is a vote of confidence from our dealer partners, many
of whom also sell competitive products," said Hertzke. Quality Circle Award
winners are determined by the Dealer Satisfaction Index (DSI) survey which
RVDA conducts annually of its dealer members. The DSI survey asks dealers to
rate their manufacturer's performance in the following categories: sales,
product, management and service/warranty support.
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. 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 those 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)
Thirteen Weeks Ended
11/27/99 11/28/98
Net revenues $182,551 $157,664
Cost of goods sold 151,678 132,788
Gross profit 30,873 24,876
Operating expenses:
Selling and delivery 6,260 5,102
General and administrative 6,553 5,694
Total operating expenses 12,813 10,796
Operating income 18,060 14,080
Financial income 653 581
Pre-tax income 18,713 14,661
Provision for taxes 6,332 5,012
Net income $12,381 $9,649
Earnings per share:
Basic $ 0.56 $ 0.43
Diluted 0.55 0.43
Weighted average common
shares outstanding:
Basic 22,114 22,224
Diluted 22,531 22,458