Winnebago Industries Reports Record Revenues
15 March 2000
Second Quarter and First Six Months
FOREST CITY, Iowa - 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 2000. Revenues for the quarter ended
February 26, 2000, were $187.1 million, an increase of 21.4 percent, when
compared to revenues of $154.1 million for the second quarter last year. Net
income for the quarter was $11.9 million, an increase of 19 percent, when
compared to net income of $10.0 million for the second quarter of fiscal 1999,
while on a per share basis, the Company earned 54 cents per diluted share,
an increase of 20 percent, when compared to 45 cents per diluted share for the
same period last year.
For the first six months of fiscal 2000, the Company reported record
revenues of $369.7 million, an increase of 18.6 percent, when compared to
revenues of $311.8 million for the same period last year. Net income for the
first half of fiscal 2000 was a record $24.2 million, an increase of
23.5 percent, when compared to the net income of $19.6 million reported for
the same period last year. On a per share basis, the Company earned $1.08 per
diluted share, an increase of 22.7 percent, compared to 88 cents per diluted
share for the first half of fiscal 1999.
"We are extremely pleased with our results for the second quarter and the
first six months of fiscal 2000," said Winnebago Industries' Chairman, Chief
Executive Officer and President Bruce Hertzke. "These extraordinary results
show the sustained momentum for our products. Winnebago Industries' 2000 motor
homes have been well received by our dealers and retail customers.
"Traffic at early spring RV shows has continued to be strong with
excellent attendance and retail sales," said Hertzke. "Although we continue
to monitor the country's economic climate very closely, we are guardedly
optimistic that the recent increase in fuel costs and interest rates will not
dramatically impact our sales at this time. We anticipate continued sales
growth as the baby boom generation enters our prime target market of 50 plus
in ever increasing numbers. As of the end of the Company's second quarter on
February 26, 2000, the sales order backlog for the Company's products was
still very strong at more than 2,500 units."
For the second consecutive year, Winnebago Industries was recently
recognized by Statistical Surveys, Inc., a retail reporting firm in Grand
Rapids, Michigan, for being the top selling manufacturer of Class C motor
homes for calendar 1999. (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.) 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.)
Hertzke continued, "We attribute the increased interest in our motor homes
to our continued attention to new product development, and our concerted
effort to maintain our quality leadership position. Our entire motor home
lineup has been revamped within the last three years with models that have
either been completely redesigned or are brand new. Winnebago Industries is
also very proud to be recognized by the Recreation Vehicle Dealer Association
with the 'Quality Circle' award for each of last four years. As the only
motor home manufacturer to have received this award since the award's
inception four years ago, we will continue to strive to be the quality leader
within the industry."
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.
Winnebago Industries, Inc.
Consolidated Statement of Operations
(Unaudited)
(in thousands except per share amounts)
Quarter Ended Six Months Ended
Feb. 26, Feb. 27, Feb. 26, Feb. 27,
2000 1999 2000 1999
Net revenues $187,144 $154,132 $369,695 $311,796
Cost of goods sold 156,352 129,763 308,030 262,551
Gross profit 30,792 24,369 61,665 49,245
Operating expenses:
Selling and delivery 5,641 5,494 11,901 10,596
General and administrative 8,148 4,289 14,701 9,983
Total operating expenses 13,789 9,783 26,602 20,579
Operating income 17,003 14,586 35,063 28,666
Financial income 905 565 1,558 1,146
Pre-tax income 17,908 15,151 36,621 29,812
Provision for taxes 6,057 5,197 12,389 10,209
Net income $11,851 $9,954 $24,232 $19,603
Earnings per share:
Basic $0.54 $0.45 $1.10 $0.88
Diluted $0.54 $0.45 $1.08 $0.88
Weighted average common
shares outstanding:
Basic 21,765 22,145 21,946 22,184
Diluted 22,134 22,317 22,339 22,387