Winnebago Industries, Inc. (NYSE: WGO), a leading outdoor lifestyle
product manufacturer, today reported financial results for the
Company's fourth quarter and full year Fiscal 2020.
Fourth Quarter Fiscal 2020 ResultsRevenues for the Fiscal 2020
fourth quarter ended August 29, 2020, were $737.8 million, an
increase of 39.1% compared to $530.4 million for the Fiscal 2019
period. Revenues for Newmar, which was acquired in the first
quarter of Fiscal 2020, were $126.3 million. Revenues excluding
Newmar were $611.5 million, reflecting an organic increase of 15.3%
compared to the Fiscal 2019 period primarily driven by growth in
the Towable segment. Gross profit was $122.5 million compared to
$83.2 million for the Fiscal 2019 period. Gross profit margin
increased 90 basis points in the quarter, driven by Motorhome
segment lower input costs and Towable segment fixed cost leverage,
partially offset by segment mix. Operating income was $68.4 million
for the quarter, an increase of 52.8% compared to $44.8 million for
the fourth quarter last year, driven by Towable segment revenue
growth and the addition of Newmar. Fiscal 2020 fourth quarter net
income was $42.5 million, an increase of 33.2% compared to $31.9
million in the fourth quarter of last year, driven by the growth in
operating income partially offset by increased interest
expense. The increase in interest expense is related to the
convertible bond issued to finance the acquisition of Newmar, and
separately, the write-off of certain debt issuance costs associated
with the termination of the company's Term Loan B which was
refinanced by a bond issuance during the quarter. Earnings per
diluted share was $1.25, an increase of 23.8% compared to $1.01 in
the same period last year. Adjusted earnings per diluted share was
$1.45 for the fourth quarter, an increase of 45.0% compared to
adjusted earnings per diluted share of $1.00 in the same period
last year. Fiscal 2020 fourth quarter consolidated adjusted
earnings per diluted share excludes costs totaling $6.6 million, or
$0.20 per diluted share, after tax, driven by debt issuance costs
written off due to the termination of the Term Loan B, and the
non-cash portion of interest expense related to the convertible
bond. Consolidated Adjusted EBITDA was $76.5 million for the
quarter, compared to $50.8 million last year, representing an
increase of 50.5%.
President and Chief Executive Officer Michael Happe commented,
“In the face of the unprecedented impacts of the COVID-19 pandemic,
our strong fourth quarter finish to the year was a testament to the
incredible resolve of our world-class team, the strength of our
portfolio of leading outdoor lifestyle brands, and our efficiency
in quickly and safely resuming operations to meet tremendous
consumer demand. We added motorized scale through the acquisition
of Newmar and continued to grow our RV market share throughout the
year by leveraging strong dealer relationships, exciting new
products and record consumer interest. Winnebago Industries also
generated expanded margins and stronger cash flows, while
delivering a quality product and customer experience in
collaboration with our channel partners. Looking ahead, we enter
our 2021 fiscal year with four premier brand platforms, strong
operational momentum, a record backlog, and the financial
flexibility to manage through the ongoing uncertainty in the
environment. Our efforts continue to rally around building an
extraordinary outdoor lifestyle company, and creating value for our
end customers, dealers, employees and shareholders. I want to thank
all of our Winnebago Industries employees for their resilience and
commitment during these unique times and focusing on giving our
customers a safe and memorable experience with our products in the
outdoors."
Full Year Fiscal 2020 ResultsFiscal 2020 revenues of $2.4
billion increased 18.6% from $2.0 billion in Fiscal 2019. Revenues
for Newmar, which was acquired in the first quarter of Fiscal 2020,
were $388.4 million. Revenues excluding Newmar were $2.0 billion,
roughly flat with Fiscal 2019 as a result of the impacts of the
COVID-19 pandemic and related suspension of manufacturing
operations during the Fiscal 2020 third quarter and disruptions
across the dealer network, supply chain, and end consumers. Gross
profit margin decreased 220 basis points, primarily due to the mix
impact of adding Newmar as well as the related purchase accounting
impacts, and the impact of COVID-19 during the fiscal third
quarter. Operating income was $113.8 million for Fiscal 2020,
compared to $155.3 million in Fiscal 2019. Net income for Fiscal
2020 was $61.4 million, a decrease of 45.0% compared to $111.8
million in Fiscal 2019 due to the impact of COVID-19 and increased
interest expense. The increase in interest expense is related
to the convertible bond issued to finance the acquisition of
Newmar, and separately, the write-off of certain debt issuance
costs associated with the termination of the company's Term Loan B
which was refinanced by a bond issuance during the fourth quarter.
Fiscal 2020 earnings per diluted share was $1.84, a decrease of
47.7% compared to earnings per diluted share of $3.52 in Fiscal
2019. Adjusted earnings per diluted share was $2.58 for Fiscal
2020, compared to adjusted earnings per diluted share of $3.45 in
the same period last year. Fiscal 2020 consolidated adjusted
earnings per diluted share excludes costs totaling $25.0 million,
or $0.75 per diluted share, after tax, related to the non-cash
portion of interest expense associated with the convertible bond,
Newmar acquisition-related costs, debt issuance costs written off
due to the termination of the Term Loan B and restructuring costs.
Adjusted earnings per diluted share was also impacted by the share
consideration issued in the Newmar acquisition. Fiscal 2020
consolidated Adjusted EBITDA was $168.1 million, a decrease of 6.4%
from $179.7 million in Fiscal 2019.
Towable Fourth Quarter and Full Year Fiscal 2020 ResultsRevenues
for the Towable segment were $414.0 million for the fourth quarter,
up 34.8% over the prior year, primarily driven by strong consumer
demand for outdoor experiences, particularly in Grand Design
products. Segment Adjusted EBITDA was $61.3 million, up 45.8% over
the prior year period. Adjusted EBITDA margin of 14.8% increased
110 basis points, primarily due to leverage, but also benefiting
from profitability initiatives. Backlog increased to a record
$747.9 million, up 219.2% over the prior year, as dealers have
experienced sizable reductions to their inventory as they have
encountered extremely high levels of consumer demand in the fourth
quarter.
For the full year Fiscal 2020, revenues for the Towable segment
were $1.23 billion, up 2.5% from Fiscal 2019. Segment Adjusted
EBITDA for the full year was $148.3 million, down 9.4% from Fiscal
2019 driven by the impact of COVID-19 during the Fiscal 2020 third
quarter. Adjusted EBITDA margin of 12.1% decreased 160 basis points
for the full year.
Motorhome Fourth Quarter and Full Year Fiscal 2020 ResultsIn the
fourth quarter, revenues for the Motorhome segment were $301.8
million, up 50.4% from the prior year, driven by the addition of
Newmar. Revenues excluding Newmar were $175.5 million, down 12.6%,
as strong class B sales were more than offset by sales declines in
class A and class C. Segment Adjusted EBITDA was $19.5 million, up
81.2% from the prior year due to improved profitability in the
Winnebago branded business and the addition of Newmar, partially
offset by the organic revenue decline and class mix. Adjusted
EBITDA margin of 6.4% increased 100 basis points. Backlog increased
to a record $1.1 billion, up 535.8% over the prior year, reflecting
extremely high levels of consumer demand.
For the full year Fiscal 2020, revenues for the Motorhome
segment were $1.1 billion, up 49.5% from Fiscal 2019. Revenues
excluding Newmar were $668.4 million, down 5.4% from Fiscal 2019,
as a result of manufacturing and distribution disruption due to the
COVID-19 pandemic. Segment Adjusted EBITDA for the full year was
$32.9 million, up 20.0% from Fiscal 2019 driven by the addition of
Newmar partially offset by the impact of COVID-19 during the Fiscal
2020 third quarter. Adjusted EBITDA margin of 3.1% was down 80
basis points for the full year due to the impact of COVID-19 during
the Fiscal 2020 third quarter partially offset by the addition of
Newmar.
Balance Sheet and Cash FlowAs of August 29, 2020, the
Company had total outstanding debt of $512.6 million ($600.0
million of debt, net of convertible note discount of $74.3 million,
and net of debt issuance costs of $13.1 million) and working
capital of $413.2 million. Cash flow from operations was $270.4
million for the full year Fiscal 2020, resulting in an increase of
$136.7 million, or 102.2%, from the $133.8 million generated in
Fiscal 2019.
Quarterly Cash DividendOn August 19, 2020, the Company’s
board of directors approved a quarterly cash dividend of $0.12 per
share payable on September 30, 2020, to common stockholders of
record at the close of business on September 16, 2020. This
represents a 9% increase from the prior dividend of $0.11 per
share.
Mr. Happe continued, “As we look ahead to Fiscal 2021, we are
encouraged by the ongoing outdoor recreation demand trends we are
experiencing. We have built a strong and growing position in
the RV market, and our customers continue to view all our brands as
a trusted and safe way to have extraordinary experiences as they
travel, live, work, and play in the outdoors. I’m incredibly proud
of the progress we have made over the last several years expanding
Winnebago Industries' portfolio while simultaneously enhancing the
quality of our product lineup and service levels and the
profitability we are able to achieve. During fiscal year 2020, we
continued to expand our family of outstanding brands with the
acquisition of Newmar, and when combined with our Winnebago, Grand
Design RV, and Chris-Craft brands, we believe we have four of the
most respected brands in the outdoors industry. We have expanded
our leadership team capabilities as well in the past year, through
the acquisition of Newmar and also through adding new talent to the
team in Huw Bower to lead our Winnebago Outdoors business, as
announced at the end of September. Going forward, we are committed
to managing our Company in a highly disciplined fashion so that we
are best positioned to build on our momentum in the marketplace,
capture the numerous opportunities we believe lie ahead and deliver
further value to the customers and communities we serve. Finally,
Fiscal 2020 also marks an inflection point in our efforts to
improve on our corporate responsibility obligations. It is our
strong intention that through these initiatives, our Winnebago
Industries team will emerge as an even stronger leader in our
communities, and in so doing, will make a meaningful contribution
to an improvement in the many dimensions of social justice.”
Conference CallWinnebago Industries, Inc. will discuss fourth
quarter and full year Fiscal 2020 earnings results during a
conference call scheduled for 9:00 a.m. Central Time today. Members
of the news media, investors and the general public are invited to
access a live broadcast of the conference call via the Investor
Relations page of the Company's website at http://investor.wgo.net.
The event will be archived and available for replay for the next 90
days.
About Winnebago IndustriesWinnebago Industries, Inc. is a
leading North American manufacturer of outdoor lifestyle products
under the Winnebago, Grand Design, Chris-Craft, and Newmar brands,
which are used primarily in leisure travel and outdoor recreation
activities. The Company builds quality motorhomes, travel trailers,
fifth wheel products and boats. Winnebago Industries has multiple
facilities in Iowa, Indiana, Minnesota and Florida. The Company's
common stock is listed on the New York Stock Exchange and traded
under the symbol WGO. For access to Winnebago Industries' investor
relations material or to add your name to an automatic email list
for Company news releases, visit http://investor.wgo.net.
Forward Looking StatementsThis press release may contain
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 increases in
interest rates, availability of credit, low consumer confidence,
availability of labor, significant increase in repurchase
obligations, inadequate liquidity or capital resources,
availability and price of fuel, a slowdown in the economy,
increased material and component costs, availability of chassis and
other key component parts, sales order cancellations, slower than
anticipated sales of new or existing products, new product
introductions by competitors, the effect of global tensions,
integration of operations relating to mergers and acquisitions
activities, business interruptions, any unexpected expenses related
to enterprise resource planning, impacts of public health crises,
such as COVID-19, risks related to compliance with debt covenants
and leverage ratios, cyber-attacks, 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.
The Company disclaims any obligation or undertaking to disseminate
any updates or revisions to any forward looking statements
contained in this release or to reflect any changes in the
Company's expectations after the date of this release or any change
in events, conditions or circumstances on which any statement is
based, except as required by law.
Winnebago Industries,
Inc.Condensed Consolidated Statements of
Income(Unaudited and subject to
reclassification)
|
|
|
Three Months Ended |
(in thousands, except percent and per share
data) |
August 29, 2020 |
|
August 31, 2019 |
Net revenues |
$ |
737,807 |
|
|
|
100.0 |
% |
|
$ |
530,396 |
|
|
|
100.0 |
% |
Cost of goods sold |
615,298 |
|
|
|
83.4 |
% |
|
447,208 |
|
|
|
84.3 |
% |
Gross profit |
122,509 |
|
|
|
16.6 |
% |
|
83,188 |
|
|
|
15.7 |
% |
Selling, general, and
administrative expenses |
50,521 |
|
|
|
6.8 |
% |
|
35,992 |
|
|
|
6.8 |
% |
Amortization of intangible
assets |
3,590 |
|
|
|
0.5 |
% |
|
2,431 |
|
|
|
0.5 |
% |
Total operating expenses |
54,111 |
|
|
|
7.3 |
% |
|
38,423 |
|
|
|
7.2 |
% |
Operating income |
68,398 |
|
|
|
9.3 |
% |
|
44,765 |
|
|
|
8.4 |
% |
Interest expense |
14,321 |
|
|
|
1.9 |
% |
|
4,646 |
|
|
|
0.9 |
% |
Non-operating income |
(514 |
) |
|
|
(0.1 |
)% |
|
(251 |
) |
|
|
— |
% |
Income before income
taxes |
54,591 |
|
|
|
7.4 |
% |
|
40,370 |
|
|
|
7.6 |
% |
Provision for income
taxes |
12,132 |
|
|
|
1.6 |
% |
|
8,502 |
|
|
|
1.6 |
% |
Net income |
$ |
42,459 |
|
|
|
5.8 |
% |
|
$ |
31,868 |
|
|
|
6.0 |
% |
|
|
|
|
|
|
|
|
Income per common share: |
|
|
|
|
|
|
|
Basic |
$ |
1.26 |
|
|
|
|
|
$ |
1.01 |
|
|
|
|
Diluted |
$ |
1.25 |
|
|
|
|
|
$ |
1.01 |
|
|
|
|
Weighted average common shares
outstanding: |
|
|
|
|
|
|
|
Basic |
33,641 |
|
|
|
|
|
31,507 |
|
|
|
|
Diluted |
33,929 |
|
|
|
|
|
31,696 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended |
(in thousands, except percent and per share
data) |
August 29, 2020 |
|
August 31, 2019 |
Net revenues |
$ |
2,355,533 |
|
|
|
100.0 |
% |
|
$ |
1,985,674 |
|
|
|
100.0 |
% |
Cost of goods sold |
2,042,605 |
|
|
|
86.7 |
% |
|
1,678,477 |
|
|
|
84.5 |
% |
Gross profit |
312,928 |
|
|
|
13.3 |
% |
|
307,197 |
|
|
|
15.5 |
% |
Selling, general, and
administrative expenses |
177,061 |
|
|
|
7.5 |
% |
|
142,295 |
|
|
|
7.2 |
% |
Amortization of intangible
assets |
22,104 |
|
|
|
0.9 |
% |
|
9,635 |
|
|
|
0.5 |
% |
Total operating expenses |
199,165 |
|
|
|
8.5 |
% |
|
151,930 |
|
|
|
7.7 |
% |
Operating income |
113,763 |
|
|
|
4.8 |
% |
|
155,267 |
|
|
|
7.8 |
% |
Interest expense |
37,461 |
|
|
|
1.6 |
% |
|
17,939 |
|
|
|
0.9 |
% |
Non-operating income |
(974 |
) |
|
|
— |
% |
|
(1,581 |
) |
|
|
(0.1 |
)% |
Income before income
taxes |
77,276 |
|
|
|
3.3 |
% |
|
138,909 |
|
|
|
7.0 |
% |
Provision for income
taxes |
15,834 |
|
|
|
0.7 |
% |
|
27,111 |
|
|
|
1.4 |
% |
Net income |
$ |
61,442 |
|
|
|
2.6 |
% |
|
$ |
111,798 |
|
|
|
5.6 |
% |
|
|
|
|
|
|
|
|
Income per common share: |
|
|
|
|
|
|
|
Basic |
$ |
1.85 |
|
|
|
|
|
$ |
3.55 |
|
|
|
|
Diluted |
$ |
1.84 |
|
|
|
|
|
$ |
3.52 |
|
|
|
|
Weighted average common shares
outstanding: |
|
|
|
|
|
|
|
Basic |
33,236 |
|
|
|
|
|
31,536 |
|
|
|
|
Diluted |
33,454 |
|
|
|
|
|
31,721 |
|
|
|
|
Percentages may not add due to rounding differences.
Winnebago Industries, Inc.
Condensed Consolidated Balance
Sheets(Unaudited and subject to
reclassification)
(in thousands) |
August 29, 2020 |
|
August 31, 2019 |
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
292,575 |
|
|
$ |
37,431 |
|
Receivables, net |
220,798 |
|
|
158,049 |
|
Inventories |
182,941 |
|
|
201,126 |
|
Prepaid expenses and other assets |
17,296 |
|
|
14,051 |
|
Total current assets |
713,610 |
|
|
410,657 |
|
Property, plant, and
equipment, net |
174,945 |
|
|
127,572 |
|
Other assets: |
|
|
|
Goodwill |
348,058 |
|
|
274,931 |
|
Other intangible assets, net |
404,768 |
|
|
256,082 |
|
Investment in life insurance |
27,838 |
|
|
26,846 |
|
Operating Lease Assets |
29,463 |
|
|
— |
|
Other assets |
15,018 |
|
|
8,143 |
|
Total assets |
$ |
1,713,700 |
|
|
$ |
1,104,231 |
|
|
|
|
|
Liabilities and
Stockholders' Equity |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
132,490 |
|
|
$ |
81,635 |
|
Income taxes payable |
8,840 |
|
|
— |
|
Accrued expenses |
159,060 |
|
|
107,217 |
|
Current maturities of long-term debt |
— |
|
|
8,892 |
|
Total current liabilities |
300,390 |
|
|
197,744 |
|
Non-current liabilities: |
|
|
|
Long-term debt, less current maturities |
512,630 |
|
|
245,402 |
|
Deferred income taxes |
15,608 |
|
|
12,032 |
|
Unrecognized tax benefits |
6,511 |
|
|
3,591 |
|
Operating Lease Liabilities |
27,048 |
|
|
— |
|
Deferred compensation benefits, net of current portion |
11,130 |
|
|
12,878 |
|
Other |
12,917 |
|
|
372 |
|
Total non-current liabilities |
585,844 |
|
|
274,275 |
|
Stockholders' equity |
827,466 |
|
|
632,212 |
|
Total liabilities and
stockholders' equity |
$ |
1,713,700 |
|
|
$ |
1,104,231 |
|
Winnebago Industries,
Inc.Condensed Consolidated Statements of Cash
Flows(Unaudited and subject to
reclassification)
|
Year Ended |
(in thousands) |
August 29, 2020 |
|
August 31, 2019 |
Operating
activities: |
|
|
|
Net income |
$ |
61,442 |
|
|
|
$ |
111,798 |
|
|
Adjustments to reconcile net
income to net cash provided by operating activities: |
|
|
|
Depreciation |
15,997 |
|
|
|
13,682 |
|
|
Amortization of intangibles |
22,104 |
|
|
|
9,635 |
|
|
Non-cash interest expense, net |
10,727 |
|
|
|
— |
|
|
Amortization of debt issuance costs |
7,379 |
|
|
|
1,612 |
|
|
Last in, first-out expense |
(5,188 |
) |
|
|
2,258 |
|
|
Stock-based compensation |
6,475 |
|
|
|
7,058 |
|
|
Deferred income taxes |
(879 |
) |
|
|
7,984 |
|
|
Other, net |
2,405 |
|
|
|
1,313 |
|
|
Change in assets and
liabilities: |
|
|
|
Receivables |
(25,773 |
) |
|
|
6,418 |
|
|
Inventories |
105,994 |
|
|
|
(8,256 |
) |
|
Prepaid expenses and other assets |
(358 |
) |
|
|
(4,499 |
) |
|
Accounts payable |
37,041 |
|
|
|
907 |
|
|
Income taxes and unrecognized tax benefits |
11,422 |
|
|
|
(13,810 |
) |
|
Accrued expenses and other liabilities |
21,646 |
|
|
|
(2,350 |
) |
|
Net cash provided by operating
activities |
270,434 |
|
|
|
133,750 |
|
|
Investing
activities: |
|
|
|
Purchases of property and equipment |
(32,377 |
) |
|
|
(40,858 |
) |
|
Acquisition of business, net of cash acquired |
(260,965 |
) |
|
|
(702 |
) |
|
Proceeds from the sale of property |
— |
|
|
|
148 |
|
|
Other, net |
266 |
|
|
|
2,476 |
|
|
Net cash used in investing
activities |
(293,076 |
) |
|
|
(38,936 |
) |
|
Financing
activities: |
|
|
|
Borrowings on long-term debt |
2,786,824 |
|
|
|
891,892 |
|
|
Repayments on long-term debt |
(2,446,824 |
) |
|
|
(930,424 |
) |
|
Purchase of convertible bond hedge |
(70,800 |
) |
|
|
— |
|
|
Proceeds from issuance of warrants |
42,210 |
|
|
|
— |
|
|
Payments of cash dividends |
(14,588 |
) |
|
|
(13,670 |
) |
|
Payments for repurchases of common stock |
(1,844 |
) |
|
|
(8,171 |
) |
|
Payments of debt issuance costs |
(18,030 |
) |
|
|
— |
|
|
Other, net |
838 |
|
|
|
648 |
|
|
Net cash provided by (used in)
financing activities |
277,786 |
|
|
|
(59,725 |
) |
|
|
|
|
|
Net increase (decrease) in
cash and cash equivalents |
255,144 |
|
|
|
35,089 |
|
|
Cash and cash equivalents at
beginning of year |
37,431 |
|
|
|
2,342 |
|
|
Cash and cash equivalents at
end of year |
$ |
292,575 |
|
|
|
$ |
37,431 |
|
|
|
|
|
|
Supplement cash flow
disclosure: |
|
|
|
Income taxes paid, net |
$ |
3,667 |
|
|
|
$ |
37,061 |
|
|
Interest paid |
$ |
17,253 |
|
|
|
$ |
14,921 |
|
|
Non-cash
transactions: |
|
|
|
Issuance of Winnebago common stock for business acquisition |
$ |
92,572 |
|
|
|
$ |
— |
|
|
Capital expenditures in accounts payable |
$ |
178 |
|
|
|
$ |
387 |
|
|
|
|
|
|
|
|
|
|
|
|
Winnebago Industries,
Inc.Supplemental Information by Reportable Segment
- Towable(in thousands, except unit
data)(Unaudited and subject to
reclassification)
|
Three Months Ended |
|
August 29, 2020 |
|
% of Revenues |
|
August 31, 2019 |
|
% of Revenues |
|
$ Change |
|
% Change |
Net revenues |
$ |
413,956 |
|
|
|
|
$ |
306,992 |
|
|
|
|
$ |
106,964 |
|
|
|
34.8 |
% |
Adjusted EBITDA |
61,294 |
|
|
14.8 |
% |
|
42,039 |
|
|
13.7 |
% |
|
19,255 |
|
|
|
45.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
Unit deliveries |
August 29, 2020 |
|
Product Mix(1) |
|
August 31, 2019 |
|
Product Mix(1) |
|
Unit Change |
|
% Change |
Travel trailer |
7,865 |
|
|
61.9 |
% |
|
5,894 |
|
|
62.4 |
% |
|
1,971 |
|
|
|
33.4 |
% |
Fifth wheel |
4,832 |
|
|
38.1 |
% |
|
3,553 |
|
|
37.6 |
% |
|
1,279 |
|
|
|
36.0 |
% |
Total towables |
12,697 |
|
|
100.0 |
% |
|
9,447 |
|
|
100.0 |
% |
|
3,250 |
|
|
|
34.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended |
|
August 29, 2020 |
|
% of Revenues |
|
August 31, 2019 |
|
% of Revenues |
|
$ Change |
|
% Change |
Net revenues |
$ |
1,227,567 |
|
|
|
|
$ |
1,197,327 |
|
|
|
|
$ |
30,240 |
|
|
|
2.5 |
% |
Adjusted EBITDA |
148,276 |
|
|
12.1 |
% |
|
163,677 |
|
|
13.7 |
% |
|
(15,401 |
) |
|
|
(9.4 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended |
Unit deliveries |
August 29, 2020 |
|
Product Mix(1) |
|
August 31, 2019 |
|
Product Mix(1) |
|
Unit Change |
|
% Change |
Travel trailer |
23,184 |
|
|
61.2 |
% |
|
22,458 |
|
|
61.0 |
% |
|
726 |
|
|
|
3.2 |
% |
Fifth wheel |
14,706 |
|
|
38.8 |
% |
|
14,371 |
|
|
39.0 |
% |
|
335 |
|
|
|
2.3 |
% |
Total towables |
37,890 |
|
|
100.0 |
% |
|
36,829 |
|
|
100.0 |
% |
|
1,061 |
|
|
|
2.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
August 29, 2020 |
|
|
|
August 31, 2019 |
|
|
|
Change |
|
% Change |
Backlog(2) |
|
|
|
|
|
|
|
|
|
|
|
Units |
24,903 |
|
|
|
|
7,225 |
|
|
|
|
17,678 |
|
|
|
244.7 |
% |
Dollars |
$ |
747,925 |
|
|
|
|
$ |
234,339 |
|
|
|
|
$ |
513,586 |
|
|
|
219.2 |
% |
Dealer
Inventory |
|
|
|
|
|
|
|
|
|
|
|
Units |
10,528 |
|
|
|
|
15,658 |
|
|
|
|
(5,130 |
) |
|
|
(32.8 |
)% |
(1) Percentages may not add due to rounding differences.
(2) We include in our backlog all accepted orders from dealers
which generally have been requested to be shipped within the next
six months. Orders in backlog can be cancelled or postponed at the
option of the dealer at any time without penalty and, therefore,
backlog may not necessarily be an accurate measure of future
sales.
Winnebago Industries,
Inc.Supplemental Information by Reportable Segment
- Motorhome(in thousands, except unit
data)(Unaudited and subject to
reclassification)
|
Three Months Ended |
|
August 29, 2020 |
|
% of Revenues |
|
August 31, 2019 |
|
% of Revenues |
|
$ Change |
|
% Change |
Net revenues |
$ |
301,771 |
|
|
|
|
$ |
200,698 |
|
|
|
|
$ |
101,073 |
|
|
|
50.4 |
% |
Adjusted EBITDA |
19,461 |
|
|
6.4 |
% |
|
10,739 |
|
|
5.4 |
% |
|
8,722 |
|
|
|
81.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
Unit deliveries |
August 29, 2020 |
|
Product Mix(1) |
|
August 31, 2019 |
|
Product Mix(1) |
|
Unit Change |
|
% Change |
Class A |
690 |
|
|
30.2 |
% |
|
253 |
|
|
12.7 |
% |
|
437 |
|
|
|
172.7 |
% |
Class B |
1,064 |
|
|
46.6 |
% |
|
937 |
|
|
47.2 |
% |
|
127 |
|
|
|
13.6 |
% |
Class C |
527 |
|
|
23.1 |
% |
|
795 |
|
|
40.1 |
% |
|
(268 |
) |
|
|
(33.7 |
)% |
Total motorhomes |
2,281 |
|
|
100.0 |
% |
|
1,985 |
|
|
100.0 |
% |
|
296 |
|
|
|
14.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended(2) |
|
August 29, 2020 |
|
% of Revenues |
|
August 31, 2019 |
|
% of Revenues |
|
$ Change |
|
% Change |
Net revenues |
$ |
1,056,794 |
|
|
|
|
$ |
706,927 |
|
|
|
|
$ |
349,867 |
|
|
|
49.5 |
% |
Adjusted EBITDA |
32,949 |
|
|
3.1 |
% |
|
27,455 |
|
|
3.9 |
% |
|
5,494 |
|
|
|
20.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended |
Unit deliveries |
August 29, 2020 |
|
Product Mix(1) |
|
August 31, 2019 |
|
Product Mix(1) |
|
Unit Change |
|
% Change |
Class A |
2,493 |
|
|
30.8 |
% |
|
1,582 |
|
|
20.8 |
% |
|
911 |
|
|
|
57.6 |
% |
Class B |
3,351 |
|
|
41.3 |
% |
|
2,784 |
|
|
36.7 |
% |
|
567 |
|
|
|
20.4 |
% |
Class C |
2,261 |
|
|
27.9 |
% |
|
3,225 |
|
|
42.5 |
% |
|
(964 |
) |
|
|
(29.9 |
)% |
Total motorhomes |
8,105 |
|
|
100.0 |
% |
|
7,591 |
|
|
100.0 |
% |
|
514 |
|
|
|
6.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
August 29, 2020 |
|
|
|
August 31, 2019 |
|
|
|
Change |
|
% Change |
Backlog(3) |
|
|
|
|
|
|
|
|
|
|
|
Units |
8,463 |
|
|
|
|
1,808 |
|
|
|
|
6,655 |
|
|
|
368.1 |
% |
Dollars |
$ |
1,051,415 |
|
|
|
|
$ |
165,373 |
|
|
|
|
$ |
886,042 |
|
|
|
535.8 |
% |
Dealer
Inventory |
|
|
|
|
|
|
|
|
|
|
|
Units |
2,761 |
|
|
|
|
3,891 |
|
|
|
|
(1,130 |
) |
|
|
(29.0 |
)% |
(1) Percentages may not add due to rounding differences.
(2) August 29, 2020 year end data includes Newmar
results from the time of acquisition (11/08/19); 2019 data excludes
Newmar for both the three month ended and year end periods
(3) We include in our backlog all accepted orders from dealers
which generally have been requested to be shipped within the next
six months. Orders in backlog can be cancelled or postponed at the
option of the dealer at any time without penalty and, therefore,
backlog may not necessarily be an accurate measure of future
sales.
Winnebago Industries,
Inc.Non-GAAP
Reconciliation(Unaudited and subject to
reclassification)
Non-GAAP financial measures, which are not calculated or
presented in accordance with accounting principles generally
accepted in the United States (“GAAP”), have been provided as
information supplemental and in addition to the financial measures
presented in the accompanying news release that are calculated and
presented in accordance with GAAP. Such non-GAAP financial measures
should not be considered superior to, as a substitute for, or as an
alternative to, and should be considered in conjunction with, the
GAAP financial measures presented in the news release. The non-GAAP
financial measures presented may differ from similar measures used
by other companies.
The following table reconciles Diluted income per share to
Adjusted diluted income per share:
|
Three Months Ended |
|
Year Ended |
(in thousands)(1) |
August 29, 2020 |
|
August 31, 2019 |
|
August 29, 2020 |
|
August 31, 2019 |
Diluted income per share |
$ |
1.25 |
|
|
|
$ |
1.01 |
|
|
|
$ |
1.84 |
|
|
|
$ |
3.52 |
|
|
Pretax acquisition-related costs (1) |
— |
|
|
|
— |
|
|
|
0.29 |
|
|
|
— |
|
|
Pretax acquisition-related
fair-value inventory step-up |
— |
|
|
|
— |
|
|
|
0.14 |
|
|
|
— |
|
|
Pretax non-cash interest
expense (2) |
0.10 |
|
|
|
— |
|
|
|
0.32 |
|
|
|
— |
|
|
Restructuring expense |
0.01 |
|
|
|
(0.01 |
) |
|
|
0.05 |
|
|
|
0.03 |
|
|
Debt issuance write-off |
0.14 |
|
|
|
— |
|
|
|
0.14 |
|
|
|
— |
|
|
Research and development tax
credits |
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.10 |
) |
|
Tax impact of adjustments
(3) |
(0.05 |
) |
|
|
— |
|
|
|
(0.20 |
) |
|
|
(0.01 |
) |
|
Adjusted diluted income per share (4) |
$ |
1.45 |
|
|
|
$ |
1.00 |
|
|
|
$ |
2.58 |
|
|
|
$ |
3.45 |
|
|
(1) Per share numbers may not foot due to rounding(2) Represents
transaction-closing costs.(3) Non-cash interest expense associated
with the Convertible Notes issued related to our acquisition of
Newmar.(4) Income tax charge calculated using the statutory tax
rate for the U.S. of 21.0% for both periods presented.
The following table reconciles net income to consolidated EBITDA
and Adjusted EBITDA.
|
Three Months Ended |
|
Year Ended |
(in thousands) |
August 29, 2020 |
|
August 31, 2019 |
|
August 29, 2020 |
|
August 31, 2019 |
Net income |
$ |
42,459 |
|
|
|
$ |
31,868 |
|
|
|
$ |
61,442 |
|
|
|
$ |
111,798 |
|
|
Interest expense |
14,321 |
|
|
|
4,646 |
|
|
|
37,461 |
|
|
|
17,939 |
|
|
Provision for income
taxes |
12,132 |
|
|
|
8,502 |
|
|
|
15,834 |
|
|
|
27,111 |
|
|
Depreciation |
4,143 |
|
|
|
3,894 |
|
|
|
15,997 |
|
|
|
13,682 |
|
|
Amortization of intangible
assets |
3,590 |
|
|
|
2,431 |
|
|
|
22,104 |
|
|
|
9,635 |
|
|
EBITDA |
76,645 |
|
|
|
51,341 |
|
|
|
152,838 |
|
|
|
180,165 |
|
|
Acquisition-related fair-value
inventory step-up |
— |
|
|
|
— |
|
|
|
4,810 |
|
|
|
— |
|
|
Acquisition-related costs |
— |
|
|
|
— |
|
|
|
9,761 |
|
|
|
— |
|
|
Restructuring |
393 |
|
|
|
(253 |
) |
|
|
1,640 |
|
|
|
1,068 |
|
|
Non-operating income |
(514 |
) |
|
|
(251 |
) |
|
|
(974 |
) |
|
|
(1,581 |
) |
|
Adjusted EBITDA |
$ |
76,524 |
|
|
|
$ |
50,837 |
|
|
|
$ |
168,075 |
|
|
|
$ |
179,652 |
|
|
We have provided non-GAAP performance measures of Adjusted
diluted income per share, EBITDA, and Adjusted EBITDA as comparable
measures to illustrate the effect of non-recurring transactions
occurring during the reported periods and improve comparability of
our results from period to period. Adjusted diluted income per
share is defined as income per share adjusted for items that impact
the comparability of our results from period to period. EBITDA is
defined as net income before interest expense, provision for income
taxes, and depreciation and amortization expense. Adjusted EBITDA
is defined as net income before interest expense, provision for
income taxes, depreciation and amortization expense, and other
adjustments made in order to present comparable results from period
to period. We believe Adjusted diluted income per share and
Adjusted EBITDA provide meaningful supplemental information about
our operating performance because these measures exclude amounts
that we do not consider part of our core operating results when
assessing our performance. Examples of items excluded from Adjusted
income per share include acquisition-related costs,
acquisition-related fair-value inventory step-up, non-cash interest
expense, and the tax impact of the adjustments. Examples of items
excluded from Adjusted EBITDA include acquisition-related
fair-value inventory step-up, acquisition-related costs,
restructuring expenses, and non-operating income.
Management uses these non-GAAP financial measures (a) to
evaluate our historical and prospective financial performance and
trends as well as our performance relative to competitors and
peers; (b) to measure operational profitability on a
consistent basis; (c) in presentations to the members of our board
of directors to enable our board of directors to have the same
measurement basis of operating performance as is used by management
in its assessments of performance and in forecasting and budgeting
for our company; (d) to evaluate potential acquisitions; and (e) to
ensure compliance with restricted activities under the terms of our
ABL credit facility and outstanding notes. We believe these
non-GAAP financial measures are frequently used by securities
analysts, investors, and other interested parties to evaluate
companies in our industry.
Contact: Steve Stuber - Investor Relations - 952-828-8461 -
srstuber@wgo.netMedia Contact: Sam Jefson - Public Relations
Specialist - 641-585-6803 - sjefson@wgo.net
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