Winnebago Industries Reports Record Third Quarter Results; Net Income For Quarter Increased Over 45 Percent
FOREST CITY, IOWA--June 19, 2002--Winnebago Industries, Inc. , today reported record net income of $18.1 million for the third quarter ended June 1, 2002, a 45.4 percent increase compared to net income of $12.4 million for the third quarter of fiscal 2001. On a per share basis, the Company earned a record 90 cents per diluted share for the third quarter of fiscal 2002, a 50 percent increase compared to 60 cents per diluted share for the third quarter last year.Revenues for the third quarter of fiscal 2002 were a record $246.6 million, a 26.1 percent increase compared to revenues of $195.6 million for the same quarter last year.
Net income for the first 40 weeks of fiscal 2002 was $38.3 million, a 35.5 percent increase when compared to income of $28.2 million before the cumulative effect of the change in accounting method for the first 39 weeks of fiscal 2001. On a per share basis, the Company earned $1.84 per diluted share for the first 40 weeks of fiscal 2002, a 37.3 percent increase compared to $1.34 per diluted share before the cumulative effect of the change in accounting method for the first 39 weeks of fiscal 2001.
Revenues for the first 40 weeks of fiscal 2002 were a record $607.5 million, a 21.6 percent increase compared to revenues of $499.6 million for the first 39 weeks of fiscal 2001.
"Excellent acceptance of Winnebago Industries' motor homes, as evidenced by our continued market share gains, as well as improvements in consumer confidence levels and sustained low interest rates have all contributed to the success of our third quarter and year to date results, said Winnebago Industries Chairman, CEO and President Bruce Hertzke. "It's also very important to recognize our employees' efforts, working overtime in order to meet customer demand. It was through the hard work of all our company's workers that we were able to achieve this high degree of success."
"We continue to be encouraged by the market share growth trend we have maintained since 1997," said Hertzke. According to Statistical Surveys, Inc., an independent retail reporting service, Winnebago Industries' retail share of the combined Class A and C market has grown to 20.7 percent for the first four months of calendar 2002 compared to 18.1 percent for the same period of calendar 2001 and 15.7 percent for the same period of calendar 1997. "We believe this continued increase in market share is due to the excellent acceptance of our motor homes, the strongest brand name in the industry, the best dealers and increased recognition of our strong quality reputation," continued Hertzke.
"Due to the continued high demand for Winnebago Industries' motor homes, we announced earlier this year that we will build a new 204,000 square foot facility in Charles City, Iowa, to increase our motor home production by approximately 30 percent," added Hertzke. "Ground has now been broken for the construction of this new facility. Production in the new manufacturing plant is anticipated to begin by early 2003."
For the third quarter ended June 1, 2002, Winnebago Industries reported factory shipments of 3,355 units, comprised of 1,965 Class A and 1,390 Class C motor homes, compared to 2,687 units, comprised of 1,641 Class A and 1,046 Class C motor homes for the third quarter last year. Class A motor home shipments included 489 diesel units, compared to 393 diesel units in the third quarter last year. Conversions of Class B EuroVan Campers for Volkswagen of America were 228 units for the third quarter of fiscal 2002 compared to 264 units for the third quarter last year. Winnebago Industries' motor home sales order backlog at the end of the third quarter on June 1, 2002 was 2,689 units, comprised of 1,721 Class A and 968 Class C motor homes, versus 1,195 units, comprised of 848 Class A and 347 Class C units on order at the end of the third quarter last year.
About Winnebago Industries
Winnebago Industries, Inc. is the 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 are subjected 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. For access to Winnebago Industries' investor relations material, to add your name to an automatic email list for Company news releases or for information on a dollar-based stock investment service for the Company's common stock, visit, www.winnebagoind.com/investor_relations.htm.
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, but not limited to reactions to actual or threatened terrorist attacks, the availability and price of fuel, a significant increase in interest rates, a slowdown in the economy, availability of chassis, slower than anticipated sales of new or existing products, new products introduced by competitors, collections of dealer receivables and other factors. 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 Income
(in thousands except per share amounts)
Quarter Ended 40 Weeks 39 Weeks
Ended Ended
6/1/2002 5/26/2001 6/1/2002 5/26/2001
Net revenues $246,636 $195,605 $607,493 $499,615
Cost of goods sold 209,381 169,423 523,068 436,872
------------------------------------
Gross profit 37,255 26,182 84,425 62,743
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Operating expenses:
Selling 4,257 4,155 13,567 12,876
General and administrative 5,709 3,929 14,844 9,839
------------------------------------
Total operating expenses 9,966 8,084 28,411 22,715
------------------------------------
Operating income 27,289 18,098 56,014 40,028
Financial income 547 922 2,351 2,794
------------------------------------
Income before taxes and
cumulative effect of a change
in accounting method 27,836 19,020 58,365 42,822
Provision for taxes 9,742 6,576 20,113 14,598
------------------------------------
Income before cumulative effect
of a change in accounting
method 18,094 12,444 38,252 28,224
Cumulative effect on prior years
of the accounting method
change - - - (1,050)
------------------------------------
Net income $18,094 $12,444 $38,252 $27,174
====================================
Basic earnings per share:
Income before cumulative
effect of a change in
accounting method $0.93 $0.61 $1.88 $1.36
Cumulative effect on prior
years of the accounting
method change - - - (0.05)
------------------------------------
Net income $0.93 $0.61 $1.88 $1.31
====================================
Number of shares used in per
share calculations-basic 19,552 20,566 20,337 20,748
====================================
Diluted earnings per share:
Income before cumulative
effect of a change in
accounting method $0.90 $0.60 $1.84 $1.34
Cumulative effect on prior
years of the accounting
method change - - - (0.05)
------------------------------------
Net income $0.90 $0.60 $1.84 $1.29
====================================
Number of shares used in per
share calculations-diluted 19,995 20,885 20,779 21,016
====================================
The above financial statements reflect the adoption of a new
accounting standard, EITF No. 01-9, which clarifies the classification
of certain selling expenses. As a result, net revenues have been
reduced with a corresponding reduction in selling expense. Certain
prior year information has been reclassified to conform to the current
year presentation with no effect on operating income or net income.
Winnebago Industries, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
June 1, Aug. 25,
2002 2001
------- --------
(Unaudited)
ASSETS
Current assets
Cash $72,201 $102,280
Receivables 62,053 61,834
Inventories 96,376 79,815
Other 11,263 10,327
---------------------
Total current assets 241,893 254,256
Property and equipment, net 45,847 46,536
Deferred income taxes 22,087 21,495
Other assets 31,773 29,635
---------------------
Total assets $341,600 $351,922
=====================
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities
Accounts payable $46,207 $40,678
Income taxes payable 11,369 4,938
Accrued expenses 46,218 34,392
---------------------
Total current liabilities 103,794 80,008
Post retirement health care and
deferred compensation benefits 68,334 64,450
Stockholders' equity 169,472 207,464
---------------------
Total liabilities and stockholders' equity $341,600 $351,922
=====================
Certain prior year information has been reclassified to conform to the current year presentation with no effect on operating income, net income or shareholders' equity.
