Winnebago Industries Reports Record Results for Fiscal 2000
11 October 2000
Winnebago Industries Reports Record Results for Fiscal 2000
FOREST CITY, Iowa--Oct. 11, 2000--Winnebago Industries, Inc. , one of the world's leading motor home manufacturers, today reported record revenues and earnings for the Company's fiscal year 2000. Revenues of $743.3 million for the year ended August 26, 2000, were an 11.3 percent increase over revenues of $667.7 million for the previous fiscal year.Net income for fiscal 2000 was $48.4 million, a 9.4 percent increase when compared to net income of $44.3 million for fiscal 1999. Net income per diluted share for fiscal 2000 was $2.20, a 12.2 percent increase compared to $1.96 for the previous fiscal year.
Revenues for the fourth quarter of fiscal 2000 were $162.5 million, compared to $164.3 million, for the fourth quarter last year. The Company's net income for the fourth quarter of fiscal 2000 was $7.9 million, or 37 cents per diluted share, compared to net income of $10.0 million, or 44 cents per diluted share, in the fourth quarter one year ago.
"Winnebago Industries has shown continued success during fiscal 2000, completing our third consecutive year of record revenues," said Winnebago Industries Chairman, CEO and President Bruce Hertzke. "We've continued our growth trend in both revenue and market share. According to Statistical Surveys, Inc., the Company had 17.1 percent of the Class A & C retail market nationally calendar year to date through July, 2000, an increase in market share of 6.8 percent from 16.1 percent for the same period last year. Winnebago Industries has also expanded its diesel market by 13.6% with a market share of 9.2% calendar year to date through July versus 8.1% market share for same period in 1999."
"Net earnings for the fourth quarter were affected by increases in sales incentives for 2000 model motor homes and reduced production volume," Hertzke continued. "We believe the reduction in wholesale activity is temporary, due to increased interest rates and fuel costs and the decline of the stock market, as well as our dealers' reduction in their inventories and consequently, their borrowing costs. Winnebago Industries has closely managed its motor home inventories at the factory level and feel our inventories are appropriate for the current economic environment. Retail sales, although lagging last year's record numbers, have remained steady, with excellent traffic at recent recreation vehicle shows and on dealers' lots. Due to the reduction in dealer motor home inventory levels, the Company's sales order backlog is currently 1,286 orders on hand."
"Long-term prospects for Winnebago Industries and the RV industry remain extremely positive," said Hertzke. "Demographic studies show that our prime target market of people age 50 and older is growing by approximately 350,000 each month and will continue to grow at this rate for the next 30 years. Winnebago Industries should especially benefit from this influx of potential customers because of the Company's strong brand name recognition and reputation for high-quality products and service."
Hertzke continued, "Product development has continued to be a top priority for Winnebago Industries during the past four 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 2001 motor homes were well received by dealers at our Dealer Days event in August where 11 new model floorplans were introduced, eight of which included two slideout room extensions, a growing trend in the RV industry." Included in these new models was the new Winnebago Journey DL series. Available in three floorplans, two of which are dual slides, the Journey DL is built on a 26,350 lb. gross vehicle weight rated Freightliner chassis with a 330 h.p. Caterpillar diesel engine and Allison 6-speed transmission.
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 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
8/26/00 8/28/99(a) 8/26/00 8/28/99(a)
Net revenues $ 162,491 $ 164,308 $ 743,323 $ 667,650
Cost of goods sold 142,224 140,080 630,729 565,386
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Gross profit 20,267 24,228 112,594 102,264
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Operating expenses:
Selling and delivery 5,832 7,152 24,818 24,177
General and admin. 2,557 3,376 17,122 14,105
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Total operating expenses 8,389 10,528 41,940 38,282
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Operating income 11,878 13,700 70,654 63,982
Financial income 949 811 3,338 2,627
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Pre-tax income 12,827 14,511 73,992 66,609
Provision for taxes 4,917 4,465 25,593 22,349
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Net income $ 7,910 $ 10,046 $ 48,399 $ 44,260
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Earnings per share:
Basic $ 0.37 $ 0.45 $ 2.23 $ 1.99
Diluted $ 0.37 $ 0.44 $ 2.20 $ 1.96
Weighted average common
shares outstanding:
Basic 21,297 22,277 21,680 22,209
Diluted 21,517 22,696 22,011 22,537
(a) Certain prior years' information has been reclassified to
conform to the current year presentation. This reclassification has no
impact on net income as previously reported.