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 2021.
Fourth Quarter Fiscal 2021 ResultsRevenues for the Fiscal 2021
fourth quarter ended August 28, 2021, were $1.0 billion, an
increase of 40.4% compared to $737.8 million for the Fiscal 2020
period. Revenue growth compared to the Fiscal 2020 period was
driven by strong end consumer demand, pricing initiatives across
all segments driven by higher material and component costs, and
segment and product mix. Gross profit was $187.2 million compared
to $122.5 million for the Fiscal 2020 period, driven by increased
unit growth and pricing, including lower discounts and allowances.
Gross profit margin increased 150 basis points to 18.1% in the
quarter driven by fixed cost leverage, increased pricing, including
lower discounts and allowances, and profitability initiatives.
Operating income was $120.0 million for the quarter, an increase of
75.4% compared to $68.4 million for the fourth quarter last year.
Fiscal 2021 fourth quarter net income was $84.1 million, an
increase of 98.0% compared to $42.5 million in the fourth quarter
of last year. Earnings per diluted share was $2.45, an increase of
96.0% compared to $1.25 in the same period last year. Adjusted
earnings per diluted share was $2.57 for the fourth quarter, an
increase of 77.2% compared to adjusted earnings per diluted share
of $1.45 in the same period last year. Consolidated Adjusted EBITDA
was $129.0 million for the quarter, compared to $76.5 million last
year, representing an increase of 68.6%.
President and Chief Executive Officer Michael Happe commented,
“Winnebago Industries delivered a strong fourth quarter to finish a
record Fiscal 2021. The new heights we were able to achieve in
revenues and profitability demonstrate the unique strength and
appeal of our growing platform of leading brands. Our resilient and
focused team continues to successfully manage through a growing
backlog and supply chain challenges while driving tremendous
preferences for our premium outdoor lifestyle products. In an
environment of high demand, low dealer inventories, tight supply
chain, and dynamic cost pressures our market share gains
accelerated in the fourth quarter as more consumers sought
Winnebago Industries’ high-quality, innovative products and
exceptional service. We announced the acquisition of Barletta Boat
Company in the fourth quarter, and completed the transaction in
early Fiscal 2022, extending our marine platform into one of the
fastest-growing boating segments in pontoons and advancing our
premier outdoor lifestyle company vision. As always, I want to
thank our 6,500+ Winnebago Industries employees who have worked
extremely hard during very dynamic and challenging times. It is
their efforts that allow us to deliver on our customer, dealer and
shareholder expectations.”
Full Year Fiscal 2021 ResultsFiscal 2021 record revenues of $3.6
billion increased 54.1% from $2.4 billion in Fiscal 2020 driven by
strong consumer demand for Winnebago Industries' products and
increased pricing, including lower discounts and allowances. Fiscal
2021 record gross profit margin of 17.9% improved 460 basis points
year-over-year driven primarily by robust operating leverage,
increased pricing, including lower discounts and allowances, and
favorable segment mix. Operating income was $407.4 million for
Fiscal 2021, compared to $113.8 million in Fiscal 2020. Net income
for Fiscal 2021 was $281.9 million, an increase of 358.8% compared
to $61.4 million in Fiscal 2020. Fiscal 2021 earnings per diluted
share was $8.28, an increase of 350.0% compared to earnings per
diluted share of $1.84 in Fiscal 2020. Adjusted earnings per
diluted share was $8.55 for Fiscal 2021, compared to adjusted
earnings per diluted share of $2.58 in the same period last year.
Fiscal 2021 consolidated Adjusted EBITDA was $436.1 million, an
increase of 159.4% from $168.1 million in Fiscal 2020.
Towable Fourth Quarter and Full Year Fiscal 2021 ResultsRevenues
for the Towable segment were $560.0 million for the fourth quarter,
up 35.3% over the prior year, primarily driven by unit growth due
to strong end consumer demand and increased pricing across the
segment. Adjusted EBITDA margin of 14.9% increased 10 basis points
over the prior year period and 50 basis points sequentially.
Backlog increased to a record $1,704.4 million, up 127.9% over the
prior year and 12.0% sequentially, due to continued strong consumer
demand combined with extremely low levels of dealer inventory.
For the full year Fiscal 2021, revenues for the Towable segment
were $2.0 billion, up 63.7% over Fiscal 2020 driven by heightened
consumer demand for Grand Design and Winnebago branded products and
increased pricing. Segment Adjusted EBITDA for the full year was
$289.0 million, up 94.9% from Fiscal 2020. Adjusted EBITDA margin
of 14.4% increased 230 basis points for the full year over Fiscal
2020.
Motorhome Fourth Quarter and Full Year Fiscal 2021 ResultsIn the
fourth quarter, revenues for the Motorhome segment were $448.9
million, up 48.7% from the prior year, driven by an increase in
Class B and Class A unit sales, and pricing across the segment.
Segment Adjusted EBITDA was $50.4 million, up 159.1% from the prior
year due to higher revenues and profitability initiatives. Adjusted
EBITDA margin of 11.2% increased 480 basis points over the prior
year and 150 basis points sequentially, driven by leverage and
profitability initiatives. Backlog increased to a record $2.3
billion, an increase of 119.1% over the prior year and 5.7%
sequentially, as dealers continue to experience significant
reductions in inventories due to high levels of consumer
demand.
For the full year Fiscal 2021, revenues for the Motorhome
segment were $1.5 billion, up 45.6% from Fiscal 2020 driven by
increased unit sales and pricing. Segment Adjusted EBITDA for the
full year was $169.2 million, up 413.5% from Fiscal 2020. Adjusted
EBITDA margin of 11.0% was up 790 basis points for the full year
over Fiscal 2020.
Balance Sheet and Cash FlowAs of August 28, 2021, the
Company had total outstanding debt of $528.6 million ($600.0
million of debt, net of convertible note discount of $60.4 million,
and net of debt issuance costs of $11.1 million) and working
capital of $651.6 million. Cash flow from operations was $237.3
million for the full year Fiscal 2021, a decrease of $33.2 million
from the $270.4 million generated in Fiscal 2020 driven by higher
net income which was more than offset by an increase to working
capital that was driven by growth in the business and supply chain
challenges.
Cash Dividend and Share RepurchaseOn August 18, 2021, the
Company’s Board of Directors approved a quarterly cash dividend of
$0.18 per share payable on September 29, 2021, to common
stockholders of record at the close of business on
September 15, 2021. This represents a 50%, or $0.06 per share,
increase from the prior dividend of $0.12 per share. During the
fourth quarter, Winnebago Industries executed share buybacks
totaling $35.4 million. For the full year Fiscal 2021, dividend
payments of $16.2 million and share buybacks of $45.4 million
combined for total cash returned to shareholders of $61.6 million.
As previously announced on October 13, 2021, the Company's Board of
Directors authorized a new share repurchase program. This
authorization, which does not have an expiration date, grants the
Company the authority to repurchase $200.0 million of the Company's
common stock and replaces the prior program.
Mr. Happe continued, “As we reflect on 2021, we are proud of the
financial, organizational and cultural strides we have made
together with our talented team. In addition to delivering improved
profitability and market share growth, Winnebago Industries
continued our deep commitment to corporate responsibility
initiatives that impact our communities and shareholders. During
the year, Winnebago Industries increased its sustainability efforts
by renewing our partnership with the National Park Foundation and
joining the UN Global Compact, welcomed a new Head of Diversity,
Equity and Inclusion, and added two independent directors to our
Board. Looking ahead, our confidence in our ability to profitably
grow revenues and gain market share is reflected in the 50%
increase to our quarterly cash dividend announced in late August,
our share buybacks in our Fiscal 2021 fourth quarter, and the newly
authorized share repurchase program of up to $200 million. We look
forward to continuing our momentum into Fiscal 2022 through a
continued focus on quality, service and innovation as well as an
expanded portfolio of high-quality outdoor lifestyle products that
empower our customers to have extraordinary outdoor experiences as
they travel, live, work and play.”
Conference CallWinnebago Industries, Inc. will discuss fourth
quarter and full year Fiscal 2021 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, GrandDesign, Chris-Craft, Newmar and Barletta
brands, which are used primarily in leisure travel and outdoor
recreation activities. TheCompany builds quality motorhomes, travel
trailers, fifth-wheel products, pontoons, inboard/outboard and
sterndrive powerboats and commercial community outreach vehicles.
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 uncertainty
surrounding the COVID-19 pandemic; general economic uncertainty in
key markets and a worsening of domestic economic conditions or low
levels of economic growth; availability of financing for RV and
marine dealers; ability to innovate and commercialize new products;
ability to manage our inventory to meet demand; competition and new
product introductions by competitors; risk related to cyclicality
and seasonality of our business; significant increase in repurchase
obligations; business or production disruptions; inadequate
inventory and distribution channel management; ability to retain
relationships with our suppliers; increased material and component
costs, including availability and price of fuel and raw materials;
ability to integrate mergers and acquisitions; ability to attract
and retain qualified personnel and changes in market compensation
rates; exposure to warranty claims; ability to protect our
information technology systems from data security, cyberattacks,
and network disruption risks and the ability to successfully
upgrade and evolve our information technology systems; ability to
retain brand reputation and related exposure to product liability
claims; governmental regulation, including for climate change;
impairment of goodwill; and risks related to our Convertible and
Senior Secured Notes including our ability to satisfy our
obligations under these notes. 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.
ContactsSteve Stuber, Investor Relationssrstuber@wgo.net(952)
828-8461
Media: Chad Reece, Corporate Relationscreece@wgo.net(641)
585-6647
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 28, 2021 |
|
August 29, 2020 |
Net revenues |
$ |
1,036,093 |
|
|
100.0 |
% |
|
$ |
737,807 |
|
|
100.0 |
|
% |
Cost of goods sold |
848,928 |
|
|
81.9 |
% |
|
615,298 |
|
|
83.4 |
|
% |
Gross profit |
187,165 |
|
|
18.1 |
% |
|
122,509 |
|
|
16.6 |
|
% |
Selling, general, and
administrative expenses |
63,580 |
|
|
6.1 |
% |
|
50,521 |
|
|
6.8 |
|
% |
Amortization |
3,590 |
|
|
0.3 |
% |
|
3,590 |
|
|
0.5 |
|
% |
Total operating expenses |
67,170 |
|
|
6.5 |
% |
|
54,111 |
|
|
7.3 |
|
% |
Operating income |
119,995 |
|
|
11.6 |
% |
|
68,398 |
|
|
9.3 |
|
% |
Interest expense, net |
10,143 |
|
|
1.0 |
% |
|
14,321 |
|
|
1.9 |
|
% |
Non-operating income |
(84 |
) |
|
— |
% |
|
(514 |
) |
|
(0.1 |
) |
% |
Income before income
taxes |
109,936 |
|
|
10.6 |
% |
|
54,591 |
|
|
7.4 |
|
% |
Provision for income
taxes |
25,851 |
|
|
2.5 |
% |
|
12,132 |
|
|
1.6 |
|
% |
Net income |
$ |
84,085 |
|
|
8.1 |
% |
|
$ |
42,459 |
|
|
5.8 |
|
% |
|
|
|
|
|
|
|
|
Earnings per common
share: |
|
|
|
|
|
|
|
Basic |
$ |
2.52 |
|
|
|
|
$ |
1.26 |
|
|
|
Diluted |
$ |
2.45 |
|
|
|
|
$ |
1.25 |
|
|
|
Weighted average common shares
outstanding: |
|
|
|
|
|
|
|
Basic |
33,418 |
|
|
|
|
33,641 |
|
|
|
Diluted |
34,364 |
|
|
|
|
33,929 |
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended |
(in thousands, except percent and per share
data) |
August 28, 2021 |
|
August 29, 2020 |
Net revenues |
$ |
3,629,847 |
|
|
100.0 |
% |
|
$ |
2,355,533 |
|
|
100.0 |
|
% |
Cost of goods sold |
2,979,484 |
|
|
82.1 |
% |
|
2,042,605 |
|
|
86.7 |
|
% |
Gross profit |
650,363 |
|
|
17.9 |
% |
|
312,928 |
|
|
13.3 |
|
% |
Selling, general, and
administrative expenses |
228,581 |
|
|
6.3 |
% |
|
177,061 |
|
|
7.5 |
|
% |
Amortization |
14,361 |
|
|
0.4 |
% |
|
22,104 |
|
|
0.9 |
|
% |
Total operating expenses |
242,942 |
|
|
6.7 |
% |
|
199,165 |
|
|
8.5 |
|
% |
Operating income |
407,421 |
|
|
11.2 |
% |
|
113,763 |
|
|
4.8 |
|
% |
Interest expense, net |
40,365 |
|
|
1.1 |
% |
|
37,461 |
|
|
1.6 |
|
% |
Non-operating income |
(394 |
) |
|
— |
% |
|
(974 |
) |
|
— |
|
% |
Income before income
taxes |
367,450 |
|
|
10.1 |
% |
|
77,276 |
|
|
3.3 |
|
% |
Provision for income
taxes |
85,579 |
|
|
2.4 |
% |
|
15,834 |
|
|
0.7 |
|
% |
Net income |
$ |
281,871 |
|
|
7.8 |
% |
|
$ |
61,442 |
|
|
2.6 |
|
% |
|
|
|
|
|
|
|
|
Earnings per common
share: |
|
|
|
|
|
|
|
Basic |
$ |
8.41 |
|
|
|
|
$ |
1.85 |
|
|
|
Diluted |
$ |
8.28 |
|
|
|
|
$ |
1.84 |
|
|
|
Weighted average common shares
outstanding: |
|
|
|
|
|
|
|
Basic |
33,528 |
|
|
|
|
33,236 |
|
|
|
Diluted |
34,056 |
|
|
|
|
33,454 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentages may not add due to rounding differences.
Winnebago Industries, Inc.
Condensed Consolidated Balance
Sheets(Unaudited and subject to
reclassification)
(in thousands) |
August 28, 2021 |
|
August 29, 2020 |
Assets |
|
|
|
Current assets |
|
|
|
Cash and cash equivalents |
$ |
434,563 |
|
|
$ |
292,575 |
|
Receivables, net |
253,808 |
|
|
220,798 |
|
Inventories |
341,473 |
|
|
182,941 |
|
Prepaid expenses and other current assets |
29,069 |
|
|
17,296 |
|
Total current assets |
1,058,913 |
|
|
713,610 |
|
Property, plant, and equipment, net |
191,427 |
|
|
174,945 |
|
Goodwill |
348,058 |
|
|
348,058 |
|
Other intangible assets, net |
390,407 |
|
|
404,768 |
|
Investment in life insurance |
28,821 |
|
|
27,838 |
|
Operating lease assets |
28,379 |
|
|
29,463 |
|
Other assets |
16,562 |
|
|
15,018 |
|
Total assets |
$ |
2,062,567 |
|
|
$ |
1,713,700 |
|
|
|
|
|
Liabilities and Shareholders' Equity |
|
|
|
Current liabilities |
|
|
|
Accounts payable |
$ |
180,030 |
|
|
$ |
132,490 |
|
Income taxes payable |
8,043 |
|
|
8,840 |
|
Accrued expenses |
219,203 |
|
|
159,060 |
|
Total current liabilities |
407,276 |
|
|
300,390 |
|
Long-term debt, net |
528,559 |
|
|
512,630 |
|
Deferred income taxes |
13,429 |
|
|
15,608 |
|
Unrecognized tax benefits |
6,483 |
|
|
6,511 |
|
Operating lease liabilities |
26,745 |
|
|
27,048 |
|
Deferred compensation benefits, net of current portion |
9,550 |
|
|
11,130 |
|
Other long-term liabilities |
13,582 |
|
|
12,917 |
|
Total liabilities |
1,005,624 |
|
|
886,234 |
|
Shareholders' equity |
1,056,943 |
|
|
827,466 |
|
Total liabilities and shareholders' equity |
$ |
2,062,567 |
|
|
$ |
1,713,700 |
|
|
Winnebago Industries,
Inc.Condensed Consolidated Statements of Cash
Flows(Unaudited and subject to
reclassification)
|
Year Ended |
(in thousands) |
August 28, 2021 |
|
August 29, 2020 |
Operating activities |
|
|
|
Net income |
$ |
281,871 |
|
|
$ |
61,442 |
|
Adjustments to reconcile net
income to net cash provided by operating activities |
|
|
|
Depreciation |
18,201 |
|
|
15,997 |
|
Amortization |
14,361 |
|
|
22,104 |
|
Non-cash interest expense, net |
13,928 |
|
|
10,727 |
|
Amortization of debt issuance costs |
2,465 |
|
|
7,379 |
|
Last in, first-out expense |
3,131 |
|
|
(5,188 |
) |
Stock-based compensation |
15,347 |
|
|
6,475 |
|
Deferred income taxes |
(2,190 |
) |
|
(879 |
) |
Other, net |
(3,578 |
) |
|
2,405 |
|
Change in operating assets and
liabilities, net of assets and liabilities acquired |
|
|
|
Receivables, net |
(33,034 |
) |
|
(25,773 |
) |
Inventories, net |
(161,663 |
) |
|
105,994 |
|
Prepaid expenses and other assets |
(6,560 |
) |
|
(358 |
) |
Accounts payable |
51,478 |
|
|
37,041 |
|
Income taxes and unrecognized tax benefits |
(3,721 |
) |
|
11,422 |
|
Accrued expenses and other liabilities |
47,243 |
|
|
21,646 |
|
Net cash provided by operating
activities |
237,279 |
|
|
270,434 |
|
Investing
activities |
|
|
|
Purchases of property, plant, and equipment |
(44,891 |
) |
|
(32,377 |
) |
Acquisition of business, net of cash acquired |
— |
|
|
(260,965 |
) |
Proceeds from the sale of property, plant, and equipment |
12,452 |
|
|
— |
|
Other, net |
(570 |
) |
|
266 |
|
Net cash used in investing
activities |
(33,009 |
) |
|
(293,076 |
) |
Financing
activities |
|
|
|
Borrowings on long-term debt |
3,627,627 |
|
|
2,786,824 |
|
Repayments on long-term debt |
(3,627,627 |
) |
|
(2,446,824 |
) |
Purchase of convertible bond hedge |
— |
|
|
(70,800 |
) |
Proceeds from issuance of warrants |
— |
|
|
42,210 |
|
Payments of cash dividends |
(16,168 |
) |
|
(14,588 |
) |
Payments for repurchases of common stock |
(47,589 |
) |
|
(1,844 |
) |
Payments of debt issuance costs |
(224 |
) |
|
(18,030 |
) |
Other, net |
1,699 |
|
|
838 |
|
Net cash (used in) provided by
financing activities |
(62,282 |
) |
|
277,786 |
|
|
|
|
|
Net increase in cash and cash
equivalents |
141,988 |
|
|
255,144 |
|
Cash and cash equivalents at
beginning of period |
292,575 |
|
|
37,431 |
|
Cash and cash equivalents at
end of period |
$ |
434,563 |
|
|
$ |
292,575 |
|
|
|
|
|
Supplemental
Disclosures |
|
|
|
Income taxes paid, net |
$ |
88,698 |
|
|
$ |
3,667 |
|
Interest paid |
24,119 |
|
|
17,253 |
|
Non-cash investing and
financing activities |
|
|
|
Issuance of common stock for acquisition of business |
$ |
— |
|
|
$ |
92,572 |
|
Capital expenditures in accounts payable |
3,760 |
|
|
178 |
|
Dividends declared not yet paid |
6,497 |
|
|
180 |
|
|
|
|
|
|
|
Winnebago Industries,
Inc.Supplemental Information by Reportable Segment
- Towable(in thousands, except unit
data)(Unaudited and subject to
reclassification)
|
Three Months Ended |
|
August 28, 2021 |
|
% of Revenues |
|
August 29, 2020 |
|
% of Revenues |
|
$ Change |
|
% Change |
Net revenues |
$ |
560,025 |
|
|
|
$ |
413,956 |
|
|
|
$ |
146,069 |
|
|
35.3 |
|
% |
Adjusted EBITDA |
83,368 |
|
14.9 |
% |
|
61,294 |
|
14.8 |
% |
|
22,074 |
|
|
36.0 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
Unit deliveries |
August 28, 2021 |
|
Product Mix(1) |
|
August 29, 2020 |
|
Product Mix(1) |
|
Unit Change |
|
% Change |
Travel trailer |
10,818 |
|
69.0 |
% |
|
7,865 |
|
61.9 |
% |
|
2,953 |
|
|
37.5 |
|
% |
Fifth wheel |
4,857 |
|
31.0 |
% |
|
4,832 |
|
38.1 |
% |
|
25 |
|
|
0.5 |
|
% |
Total towables |
15,675 |
|
100.0 |
% |
|
12,697 |
|
100.0 |
% |
|
2,978 |
|
|
23.5 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended |
|
August 28, 2021 |
|
% of Revenues |
|
August 29, 2020 |
|
% of Revenues |
|
$ Change |
|
% Change |
Net revenues |
$ |
2,009,959 |
|
|
|
$ |
1,227,567 |
|
|
|
$ |
782,392 |
|
|
63.7 |
|
% |
Adjusted EBITDA |
289,007 |
|
14.4 |
% |
|
148,276 |
|
12.1 |
% |
|
140,731 |
|
|
94.9 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended |
Unit deliveries |
August 28, 2021 |
|
Product Mix(1) |
|
August 29, 2020 |
|
Product Mix(1) |
|
Unit Change |
|
% Change |
Travel trailer |
39,943 |
|
66.5 |
% |
|
23,184 |
|
61.2 |
% |
|
16,759 |
|
|
72.3 |
|
% |
Fifth wheel |
20,163 |
|
33.5 |
% |
|
14,706 |
|
38.8 |
% |
|
5,457 |
|
|
37.1 |
|
% |
Total towables |
60,106 |
|
100.0 |
% |
|
37,890 |
|
100.0 |
% |
|
22,216 |
|
|
58.6 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
August 28, 2021 |
|
|
|
August 29, 2020 |
|
|
|
Change |
|
% Change |
Backlog(2) |
|
|
|
|
|
|
|
|
|
|
|
Units |
46,590 |
|
|
|
24,903 |
|
|
|
21,687 |
|
|
87.1 |
|
% |
Dollars |
$ |
1,704,393 |
|
|
|
$ |
747,925 |
|
|
|
$ |
956,468 |
|
|
127.9 |
|
% |
Dealer Inventory |
|
|
|
|
|
|
|
|
|
|
|
Units |
10,126 |
|
|
|
10,528 |
|
|
|
(402 |
) |
|
(3.8 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Percentages may not add due to rounding
differences.(2) Our backlog includes 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;
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 28, 2021 |
|
% of Revenues |
|
August 29, 2020 |
|
% of Revenues |
|
$ Change |
|
% Change |
Net revenues |
$ |
448,863 |
|
|
|
$ |
301,771 |
|
|
|
$ |
147,092 |
|
|
48.7 |
|
% |
Adjusted EBITDA |
50,426 |
|
11.2 |
% |
|
19,461 |
|
6.4 |
% |
|
30,965 |
|
|
159.1 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
Unit deliveries |
August 28, 2021 |
|
Product Mix(1) |
|
August 29, 2020 |
|
Product Mix(1) |
|
Unit Change |
|
% Change |
Class A |
910 |
|
30.7 |
% |
|
690 |
|
30.2 |
% |
|
220 |
|
|
31.9 |
|
% |
Class B |
1,530 |
|
51.6 |
% |
|
1,064 |
|
46.6 |
% |
|
466 |
|
|
43.8 |
|
% |
Class C |
527 |
|
17.8 |
% |
|
527 |
|
23.1 |
% |
|
— |
|
|
— |
|
% |
Total motorhomes |
2,967 |
|
100.0 |
% |
|
2,281 |
|
100.0 |
% |
|
686 |
|
|
30.1 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended(2) |
|
August 28, 2021 |
|
% of Revenues |
|
August 29, 2020 |
|
% of Revenues |
|
$ Change |
|
% Change |
Net revenues |
$ |
1,539,084 |
|
|
|
$ |
1,056,794 |
|
|
|
$ |
482,290 |
|
|
45.6 |
|
% |
Adjusted EBITDA |
169,205 |
|
11.0 |
% |
|
32,949 |
|
3.1 |
% |
|
136,256 |
|
|
413.5 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended |
Unit deliveries |
August 28, 2021 |
|
Product Mix(1) |
|
August 29, 2020 |
|
Product Mix(1) |
|
Unit Change |
|
% Change |
Class A |
2,957 |
|
27.1 |
% |
|
2,493 |
|
30.8 |
% |
|
464 |
|
|
18.6 |
|
% |
Class B |
5,431 |
|
49.8 |
% |
|
3,351 |
|
41.3 |
% |
|
2,080 |
|
|
62.1 |
|
% |
Class C |
2,521 |
|
23.1 |
% |
|
2,261 |
|
27.9 |
% |
|
260 |
|
|
11.5 |
|
% |
Total motorhomes |
10,909 |
|
100.0 |
% |
|
8,105 |
|
100.0 |
% |
|
2,804 |
|
|
34.6 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
August 28, 2021 |
|
|
|
August 29, 2020 |
|
|
|
Change |
|
% Change |
Backlog(3) |
|
|
|
|
|
|
|
|
|
|
|
Units |
18,254 |
|
|
|
8,463 |
|
|
|
9,791 |
|
|
115.7 |
|
% |
Dollars |
$ |
2,303,504 |
|
|
|
$ |
1,051,415 |
|
|
|
$ |
1,252,089 |
|
|
119.1 |
|
% |
Dealer
Inventory |
|
|
|
|
|
|
|
|
|
|
|
Units |
1,696 |
|
|
|
2,761 |
|
|
|
(1,065 |
) |
|
(38.6 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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).(3) Our
backlog includes 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; 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 earnings per share to
Adjusted diluted earnings per share:
|
Three Months Ended |
|
Year Ended |
|
August 28, 2021 |
|
August 29, 2020 |
|
August 28, 2021 |
|
August 29, 2020 |
Diluted income per share |
$ |
2.45 |
|
|
$ |
1.25 |
|
|
$ |
8.28 |
|
|
$ |
1.84 |
|
Pretax acquisition-related costs (1), (2) |
0.02 |
|
|
— |
|
|
0.02 |
|
|
0.29 |
|
Pretax acquisition-related
fair-value inventory step-up |
— |
|
|
— |
|
|
— |
|
|
0.14 |
|
Pretax non-cash interest
expense (3) |
0.10 |
|
|
0.10 |
|
|
0.41 |
|
|
0.32 |
|
Restructuring expense |
— |
|
|
0.01 |
|
|
— |
|
|
0.05 |
|
Debt issuance write-off |
— |
|
|
0.14 |
|
|
— |
|
|
0.14 |
|
Gain on sale of property,
plant and equipment |
— |
|
|
— |
|
|
(0.14 |
) |
|
— |
|
Impact of convertible share
dilution (4) |
0.03 |
|
|
— |
|
|
0.04 |
|
|
— |
|
Tax impact of
adjustments(5) |
(0.03 |
) |
|
(0.05 |
) |
|
(0.06 |
) |
|
(0.20 |
) |
Adjusted diluted income per share (6) |
$ |
2.57 |
|
|
$ |
1.45 |
|
|
$ |
8.55 |
|
|
$ |
2.58 |
|
|
(1) Represents transaction-closing
costs.(2) Represents a pretax
adjustment.(3) Non-cash interest expense associated with
the convertible notes issued as part of our acquisition of
Newmar.(4) Represents the dilution of convertible notes which
is economically offset by a call/spread overlay that was put in
place upon issuance.(5) Income tax charge calculated
using the statutory tax rate for the U.S. of 21.0% for both periods
presented.(6) Per share numbers may not foot due to rounding.
The following table reconciles net income to consolidated EBITDA
and Adjusted EBITDA.
|
Three Months Ended |
|
Year Ended |
|
August 28, 2021 |
|
August 29, 2020 |
|
August 28, 2021 |
|
August 29, 2020 |
Net income |
$ |
84,085 |
|
|
$ |
42,459 |
|
|
$ |
281,871 |
|
|
$ |
61,442 |
|
Interest expense |
10,143 |
|
|
14,321 |
|
|
40,365 |
|
|
37,461 |
|
Provision for income
taxes |
25,851 |
|
|
12,132 |
|
|
85,579 |
|
|
15,834 |
|
Depreciation |
4,725 |
|
|
4,143 |
|
|
18,201 |
|
|
15,997 |
|
Amortization of intangible
assets |
3,590 |
|
|
3,590 |
|
|
14,361 |
|
|
22,104 |
|
EBITDA |
128,394 |
|
|
76,645 |
|
|
440,377 |
|
|
152,838 |
|
Acquisition-related fair-value
inventory step-up |
— |
|
|
— |
|
|
— |
|
|
4,810 |
|
Acquisition-related costs |
725 |
|
|
— |
|
|
725 |
|
|
9,761 |
|
Restructuring expense |
— |
|
|
393 |
|
|
112 |
|
|
1,640 |
|
Gain on sale of property,
plant and equipment |
— |
|
|
— |
|
|
(4,753 |
) |
|
— |
|
Non-operating income |
(84 |
) |
|
(514 |
) |
|
(394 |
) |
|
(974 |
) |
Adjusted EBITDA |
$ |
129,035 |
|
|
$ |
76,524 |
|
|
$ |
436,067 |
|
|
$ |
168,075 |
|
|
Non-GAAP performance measures of Adjusted diluted earnings per
share, EBITDA and Adjusted EBITDA have been provided as comparable
measures to illustrate the effect of non-recurring transactions
occurring during the reported periods and to improve comparability
of our results from period to period. Adjusted diluted earnings per
share is defined as diluted earnings per share adjusted for
after-tax 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 (benefit) for income taxes,
depreciation and amortization expense and other pretax adjustments
made in order to present comparable results from period to period.
Management believes Adjusted diluted earnings 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
diluted earnings per share include acquisition-related costs,
acquisition-related fair-value inventory step-up, non-cash interest
expense, restructuring expenses, debt issuance write-off, gain on
sale of property, plant and equipment, impact of convertible share
dilution 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, gain or loss on the sale of property, plant
and equipment and non-operating income.
Management uses these non-GAAP financial measures (a) to
evaluate historical and prospective financial performance and
trends as well as assess 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 the Company; (d) to evaluate potential acquisitions; and (e) to
ensure compliance with restricted activities under the terms of our
asset-based revolving ("ABL") credit facility and outstanding
notes. Management believes these non-GAAP financial measures are
frequently used by securities analysts, investors and other
interested parties to evaluate companies in our industry.
Starting in the first quarter of Fiscal 2022, our presentation
of adjusted diluted earnings per share will also add back the
per-share impact of after-tax intangible amortization expense. We
believe it is appropriate to adjust for intangible amortization
expense as it is not considered part of our core operating results
when assessing our performance.
Accordingly, we have provided our adjusted diluted earnings per
share by quarter for Fiscal 2021 in accordance with this future
presentation below, along with a reconciliation to our current
presentation of adjusted diluted earnings per share:
|
Q1 FY21 |
|
Q2 FY21 |
|
Q3 FY21 |
|
Q4 FY21 |
|
FY21 |
Adjusted diluted earnings per share (current presentation) |
$ |
1.69 |
|
|
$ |
2.12 |
|
|
$ |
2.16 |
|
|
$ |
2.57 |
|
|
$ |
8.55 |
|
Amortization expense |
0.11 |
|
|
0.11 |
|
|
0.10 |
|
|
0.10 |
|
|
0.42 |
|
Amortization expense - tax impact (1) |
(0.02 |
) |
|
(0.02 |
) |
|
(0.02 |
) |
|
(0.02 |
) |
|
(0.09 |
) |
Adjusted diluted earnings per
share (future presentation) (2) |
$ |
1.78 |
|
|
$ |
2.21 |
|
|
$ |
2.24 |
|
|
$ |
2.65 |
|
|
$ |
8.88 |
|
|
(1) Income tax charge calculated using the statutory
tax rate for the U.S. of 21.0% for all periods
presented.(2) Per share numbers may not foot due to
rounding.
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