Winnebago Industries, Inc. (NYSE:WGO), a leading recreation vehicle
manufacturer, today reported financial results for the Company's
second quarter of Fiscal 2018.
Second Quarter Fiscal 2018 ResultsRevenues for the Fiscal 2018
second quarter ended February 24, 2018, were $468.4 million,
an increase of 26.4% compared to $370.5 million for the same Fiscal
2017 period. Gross profit was $67.7 million, an increase of
37.2% compared to $49.3 million for the Fiscal 2017 period.
Gross profit margin increased 110 basis points in the quarter,
driven by the continuation of accelerated growth in the Towable
segment, which accounted for 57% of revenues in the Fiscal 2018
second quarter. Operating income was $35.3 million for the
quarter, an improvement of 24.2% compared to $28.4 million in the
second quarter of last year. Fiscal 2018 second quarter net
income was $22.1 million, an increase of 44.6% compared to $15.3
million in the same period last year. Earnings per diluted
share were $0.69, an increase of 44% compared to earnings per
diluted share of $0.48 in the same period last year. As a
result of the recently enacted Tax Cuts and Jobs Act, a favorable
$2.3 million net tax benefit was recorded in the quarter, impacting
earnings per diluted share by $0.07. Consolidated Adjusted
EBITDA was $39.4 million for the quarter, compared to $29.1 million
last year, an increase of 35.5%.
President and Chief Executive Officer Michael Happe commented,
“The second quarter marked another period of solid consolidated
results for Winnebago Industries, including strong sales growth,
overall market share accretion, and margin improvement, as we
continue to build a more balanced full-line RV portfolio. Our
Towables segment outpaced the industry with robust organic growth
and impressive profitability across the Winnebago and Grand Design
brands. The Towables backlog position and retail performance
remain strong, with reasonable field inventory levels driven by our
market momentum, increasing share of dealer lots, and further
product line expansion. We continue to make incremental
progress facing the market in our Motorized segment, with
encouraging double-digit percentage retail growth in the quarter
and a strong increase in our Motorized backlog driven by improving
product line vitality and appeal. However, there remains much
work ahead on Motorized profitability improvement as we work to
drive a return on the current costs and investments associated with
the turnaround strategy."
Mr. Happe added, “During the quarter, we recorded a tax reform
benefit and expect a similar favorable tax rate for the remainder
of Fiscal 2018. We are committed to passing a portion of the
tax savings to our hard-working Winnebago Industries employees in
the form of a bonus and other selective wage adjustments, making a
donation to our foundation, and accelerating facility improvements
over the coming months which will create better work
environments. As always, I want to sincerely thank each and
every one of our employees for their tremendous efforts and
dedication to building a stronger future for our Company.”
MotorizedIn the second quarter, revenues for the Motorized
segment were $202.0 million, up 1.5% from the previous year.
Segment Adjusted EBITDA was $4.0 million, down 62.7% from the prior
year. Adjusted EBITDA margin decreased 340 basis points,
driven by manufacturing start-up investments, increased material
costs, and product mix shifts. For the second quarter,
backlog increased 42.5%, or over 900 units, compared to the same
period last year. This healthy increase reflects the strength
of our recently introduced new products.
TowableRevenues for the Towable segment were $266.4 million for
the quarter, up 55.2% over the prior year, driven by strong organic
growth across the Grand Design RV and Winnebago-branded
lines. Segment Adjusted EBITDA was $35.3 million, up 93.8%
over the prior year. Adjusted EBITDA margin increased 270
basis points, due to fixed cost leverage on the strong sales
growth. Backlog remains strong at over 9,000 units, while
retail sales continue to outpace the industry for both
brands.
Balance Sheet and Cash FlowAs of February 24, 2018, the
Company had total outstanding debt of $271.1 million ($279.7
million of debt, net of debt issuance costs of $8.6 million) and
working capital of $177.1 million. The debt-to-equity ratio
as of February 24, 2018 declined to 56.7% from 59.3% as of
November 25, 2017 and the ratio of net debt to Adjusted EBITDA
was 1.4x as of the end of the quarter. Cash flow from
operations was $15.0 million for the six months ended February 24,
2018, an increase of $9.9 million from the comparative period in
Fiscal 2017, driven by increased earnings, partially offset by
changes in working capital.
Tax Reform ImpactAs a result of the recently-enacted tax reform
legislation, the Company recorded a net benefit of $2.3 million in
the second quarter and a tax rate of 27.2%. The Company
recorded a charge related to the re-measurement of net deferred tax
assets, which was more than offset by the benefit recorded
associated with the reduction in the federal tax rate. The
Company projects its tax rate will be approximately 29% for Fiscal
2018, reflecting a blended tax rate for the fiscal year. The
Company plans to utilize a portion of the tax reform benefit for
employee compensation, making a donation to its foundation, and
facility improvements. For the full fiscal year 2018, the
Company is currently projecting the improved tax rate to benefit
diluted earnings per share by an estimated $0.10 to $0.12, net of
the reinvestments mentioned previously. The Company
expects to have a further reduction in its tax rate in fiscal 2019
as the full fiscal year realizes the benefit of the lower federal
statutory rate of 21%.
Quarterly Cash DividendOn March 14, 2018, the Company’s
board of directors approved a quarterly cash dividend of $0.10 per
share payable on April 25, 2018, to common stockholders of
record at the close of business on April 11, 2018.
Mr. Happe continued, “As we move into the second half of Fiscal
2018, we are well-positioned to capitalize on the upcoming retail
season with an improving product line across both brands, increased
capacity within our Grand Design business, and a focus to provide
our customers with a high level of product quality and service
support. We remain cautiously optimistic about the retail
prospects for the RV industry this year and believe Winnebago and
Grand Design inventory levels are appropriate in relation to our
momentum and the addition of new products entering the
market. Initial interest in our recently announced product
introductions has been strong, with significant enthusiasm from
dealers for the new Grand Design Transcend introductory-level
travel trailer and the Revel 4x4 Class B van from Winnebago.
We also recently unveiled the new Winnebago Class C Outlook
motorhome earlier this month at our national dealer meeting.
Our strategic investments specific to ERP implementation and Grand
Design campus expansion are on schedule and we are nearing the
kick-off of our Winnebago-branded Towable capacity expansion
project. Our balance sheet continues to improve and there is
strategic focus on identifying new paths to profitable growth
around our vision to become a trusted leader in outdoor lifestyle
solutions.”
Conference CallWinnebago Industries, Inc. will conduct a
conference call to discuss second quarter Fiscal 2018 results at
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 U.S. manufacturer of recreation vehicles under the
Winnebago and Grand Design brands, which are used primarily in
leisure travel and outdoor recreation activities. The Company
builds quality motorhomes, travel trailers and fifth wheel
products. Winnebago has multiple facilities
in Iowa, Indiana, Oregon and Minnesota.
The Company's common stock is listed on the New York and
Chicago Stock Exchanges and traded under the symbol WGO.
Options for the Company's common stock are traded on
the Chicago Board Options Exchange. 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 ERP, risks related to compliance with debt covenants and
leverage ratios, 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) |
(In thousands, except percent and per share
data) |
|
|
|
Three Months Ended |
|
|
February 24, 2018 |
|
February 25, 2017 |
Net revenues |
|
$ |
468,359 |
|
|
100.0 |
% |
|
$ |
370,510 |
|
|
100.0 |
% |
Cost of goods sold |
|
400,698 |
|
|
85.6 |
% |
|
321,194 |
|
|
86.7 |
% |
Gross
profit |
|
67,661 |
|
|
14.4 |
% |
|
49,316 |
|
|
13.3 |
% |
Operating
expenses: |
|
|
|
|
|
|
|
|
Selling |
|
12,209 |
|
|
2.6 |
% |
|
9,553 |
|
|
2.6 |
% |
General
and administrative |
|
18,268 |
|
|
3.9 |
% |
|
12,540 |
|
|
3.4 |
% |
Postretirement health care benefit income |
|
— |
|
|
— |
% |
|
(11,983 |
) |
|
(3.2 |
)% |
Transaction costs |
|
— |
|
|
— |
% |
|
463 |
|
|
0.1 |
% |
Amortization of intangible assets |
|
1,933 |
|
|
0.4 |
% |
|
10,367 |
|
|
2.8 |
% |
Total
SG&A |
|
32,410 |
|
|
6.9 |
% |
|
20,940 |
|
|
5.7 |
% |
Operating income |
|
35,251 |
|
|
7.5 |
% |
|
28,376 |
|
|
7.7 |
% |
Interest expense |
|
4,918 |
|
|
1.1 |
% |
|
5,178 |
|
|
1.4 |
% |
Non-operating
expense |
|
11 |
|
|
— |
% |
|
4 |
|
|
— |
% |
Income before income
taxes |
|
30,322 |
|
|
6.5 |
% |
|
23,194 |
|
|
6.3 |
% |
Provision for income
taxes |
|
8,234 |
|
|
1.8 |
% |
|
7,916 |
|
|
2.1 |
% |
Net income |
|
$ |
22,088 |
|
|
4.7 |
% |
|
$ |
15,278 |
|
|
4.1 |
% |
Income per common
share: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.70 |
|
|
|
|
$ |
0.48 |
|
|
|
Diluted |
|
$ |
0.69 |
|
|
|
|
$ |
0.48 |
|
|
|
Weighted average common
shares outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
31,654 |
|
|
|
|
31,577 |
|
|
|
Diluted |
|
31,854 |
|
|
|
|
31,686 |
|
|
|
|
|
Six Months Ended |
|
|
February 24, 2018 |
|
February 25, 2017 |
Net revenues |
|
$ |
918,380 |
|
|
100.0 |
% |
|
$ |
615,818 |
|
|
100.0 |
% |
Cost of goods sold |
|
787,888 |
|
|
85.8 |
% |
|
537,627 |
|
|
87.3 |
% |
Gross
profit |
|
130,492 |
|
|
14.2 |
% |
|
78,191 |
|
|
12.7 |
% |
Operating
expenses: |
|
|
|
|
|
|
|
|
Selling |
|
24,343 |
|
|
2.7 |
% |
|
15,423 |
|
|
2.5 |
% |
General
and administrative |
|
35,684 |
|
|
3.9 |
% |
|
22,446 |
|
|
3.6 |
% |
Postretirement health care benefit income |
|
— |
|
|
— |
% |
|
(24,796 |
) |
|
(4.0 |
)% |
Transaction costs |
|
50 |
|
|
— |
% |
|
5,925 |
|
|
1.0 |
% |
Amortization of intangible assets |
|
3,988 |
|
|
0.4 |
% |
|
12,418 |
|
|
2.0 |
% |
Total
SG&A |
|
64,065 |
|
|
7.0 |
% |
|
31,416 |
|
|
5.1 |
% |
Operating income |
|
66,427 |
|
|
7.2 |
% |
|
46,775 |
|
|
7.6 |
% |
Interest expense |
|
9,699 |
|
|
1.1 |
% |
|
6,306 |
|
|
1.0 |
% |
Non-operating
income |
|
(112 |
) |
|
— |
% |
|
(83 |
) |
|
— |
% |
Income before income
taxes |
|
56,840 |
|
|
6.2 |
% |
|
40,552 |
|
|
6.6 |
% |
Provision for
taxes |
|
16,794 |
|
|
1.8 |
% |
|
13,536 |
|
|
2.2 |
% |
Net income |
|
$ |
40,046 |
|
|
4.4 |
% |
|
$ |
27,016 |
|
|
4.4 |
% |
Income per common
share: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
1.27 |
|
|
|
|
$ |
0.91 |
|
|
|
Diluted |
|
$ |
1.26 |
|
|
|
|
$ |
0.91 |
|
|
|
Weighted average common
shares outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
31,634 |
|
|
|
|
29,707 |
|
|
|
Diluted |
|
31,852 |
|
|
|
|
29,827 |
|
|
|
Percentages may not add due to rounding
differences. |
|
|
Winnebago Industries, Inc. |
Condensed Consolidated Balance Sheets
(Unaudited) |
(In thousands) |
|
|
|
Feb 24, 2018 |
|
Aug 26, 2017 |
ASSETS |
|
|
|
|
Current assets: |
|
|
|
|
Cash and
cash equivalents |
|
$ |
27,443 |
|
|
$ |
35,945 |
|
Receivables, net |
|
157,425 |
|
|
124,539 |
|
Inventories |
|
178,046 |
|
|
142,265 |
|
Prepaid
expenses and other assets |
|
9,788 |
|
|
11,388 |
|
Total
current assets |
|
372,702 |
|
|
314,137 |
|
Total property and
equipment, net |
|
78,798 |
|
|
71,560 |
|
Other assets: |
|
|
|
|
Goodwill |
|
244,684 |
|
|
242,728 |
|
Other
intangible assets, net |
|
224,452 |
|
|
228,440 |
|
Investment in life insurance |
|
27,921 |
|
|
27,418 |
|
Deferred
income taxes |
|
9,813 |
|
|
12,736 |
|
Other
assets |
|
6,956 |
|
|
5,493 |
|
Total
assets |
|
$ |
965,326 |
|
|
$ |
902,512 |
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY |
|
|
|
|
Current
liabilities: |
|
|
|
|
Accounts
payable |
|
$ |
99,727 |
|
|
$ |
79,194 |
|
Current
maturities of long-term debt |
|
— |
|
|
2,850 |
|
Income
taxes payable |
|
2,792 |
|
|
7,450 |
|
Accrued
expenses |
|
93,071 |
|
|
77,664 |
|
Total
current liabilities |
|
195,590 |
|
|
167,158 |
|
Non-current
liabilities: |
|
|
|
|
Long-term
debt, less current maturities |
|
271,102 |
|
|
271,726 |
|
Unrecognized tax benefits |
|
1,668 |
|
|
1,606 |
|
Deferred
compensation and postretirement health care benefits, net of
current portion |
|
18,907 |
|
|
19,270 |
|
Other |
|
250 |
|
|
1,078 |
|
Total
non-current liabilities |
|
291,927 |
|
|
293,680 |
|
Shareholders'
equity |
|
477,809 |
|
|
441,674 |
|
Total liabilities and shareholders' equity |
|
$ |
965,326 |
|
|
$ |
902,512 |
|
|
|
Winnebago Industries, Inc. |
Condensed Consolidated Statements of Cash Flows
(Unaudited) |
(In thousands) |
|
|
|
Six Months Ended |
|
|
Feb 24, 2018 |
|
Feb 25, 2017 |
Operating
activities: |
|
|
|
|
Net
income |
|
$ |
40,046 |
|
|
$ |
27,016 |
|
Adjustments to
reconcile net income to net cash provided by operating
activities: |
|
|
|
|
Depreciation |
|
4,328 |
|
|
3,428 |
|
Amortization of intangible assets |
|
3,988 |
|
|
12,418 |
|
Amortization of debt issuance costs |
|
826 |
|
|
485 |
|
LIFO
expense |
|
598 |
|
|
598 |
|
Stock-based compensation |
|
3,553 |
|
|
1,539 |
|
Deferred
income taxes |
|
2,080 |
|
|
6,857 |
|
Postretirement benefit income and deferred compensation
expenses |
|
578 |
|
|
(24,034 |
) |
Other |
|
(498 |
) |
|
(452 |
) |
Change in assets and
liabilities: |
|
|
|
|
Inventories |
|
(36,379 |
) |
|
(11,232 |
) |
Receivables, prepaid and other assets |
|
(31,096 |
) |
|
(21,551 |
) |
Income
taxes and unrecognized tax benefits |
|
(4,510 |
) |
|
(4,631 |
) |
Accounts
payable and accrued expenses |
|
32,908 |
|
|
16,131 |
|
Postretirement and deferred compensation benefits |
|
(1,377 |
) |
|
(1,430 |
) |
Net cash provided by
operating activities |
|
15,045 |
|
|
5,142 |
|
|
|
|
|
|
Investing
activities: |
|
|
|
|
Purchases
of property, plant and equipment |
|
(11,675 |
) |
|
(6,938 |
) |
Proceeds
from the sale of property |
|
299 |
|
|
65 |
|
Acquisition of business, net of cash acquired |
|
— |
|
|
(394,694 |
) |
Other |
|
(18 |
) |
|
620 |
|
Net cash used in
investing activities |
|
(11,394 |
) |
|
(400,947 |
) |
|
|
|
|
|
Financing
activities: |
|
|
|
|
Payments
for purchase of common stock |
|
(1,478 |
) |
|
(1,365 |
) |
Payments
of cash dividends |
|
(6,375 |
) |
|
(6,370 |
) |
Payments
of debt issuance costs |
|
— |
|
|
(11,020 |
) |
Borrowings on credit facility |
|
19,700 |
|
|
366,400 |
|
Repayment
of credit facility |
|
(24,000 |
) |
|
(26,400 |
) |
Other |
|
— |
|
|
(92 |
) |
Net cash (used in)
provided by financing activities |
|
(12,153 |
) |
|
321,153 |
|
|
|
|
|
|
Net decrease in cash
and cash equivalents |
|
(8,502 |
) |
|
(74,652 |
) |
Cash and cash
equivalents at beginning of period |
|
35,945 |
|
|
85,583 |
|
Cash and cash
equivalents at end of period |
|
$ |
27,443 |
|
|
$ |
10,931 |
|
|
|
|
|
|
Supplemental cash flow
disclosure: |
|
|
|
|
Income
taxes paid, net |
|
$ |
19,290 |
|
|
$ |
11,692 |
|
Interest
paid |
|
$ |
8,906 |
|
|
$ |
1,731 |
|
Non-cash
transactions: |
|
|
|
|
Issuance
of Winnebago common stock for acquisition of business |
|
$ |
— |
|
|
$ |
124,066 |
|
Capital
expenditures in accounts payable |
|
$ |
1,012 |
|
|
$ |
322 |
|
|
|
Winnebago Industries, Inc. |
Supplemental Information by Reportable Segment
(Unaudited) - Motorized |
(In thousands, except unit data) |
|
|
|
Quarter Ended |
|
|
|
|
Feb 24,2018 |
% ofRevenue |
|
Feb 25,2017 |
% ofRevenue |
|
Change |
Net revenues |
|
$ |
202,001 |
|
|
|
$ |
198,936 |
|
|
|
$ |
3,065 |
|
1.5 |
% |
Adjusted EBITDA |
|
4,044 |
|
2.0 |
% |
|
10,838 |
|
5.4 |
% |
|
(6,794 |
) |
(62.7 |
)% |
|
|
|
|
|
|
|
|
|
|
Unit deliveries |
|
Feb 24,2018 |
ProductMix % (1) |
|
Feb 25,2017 |
ProductMix % (1) |
|
Change |
Class A |
|
881 |
|
39.9 |
% |
|
800 |
|
38.0 |
% |
|
81 |
|
10.1 |
% |
Class B |
|
411 |
|
18.6 |
% |
|
376 |
|
17.8 |
% |
|
35 |
|
9.3 |
% |
Class C |
|
918 |
|
41.5 |
% |
|
931 |
|
44.2 |
% |
|
(13 |
) |
(1.4 |
)% |
Total
motorhomes |
|
2,210 |
|
100.0 |
% |
|
2,107 |
|
100.0 |
% |
|
103 |
|
4.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended |
|
|
|
|
Feb 24,2018 |
% ofRevenue |
|
Feb 25,2017 |
% ofRevenue |
|
Change |
Net revenues |
|
$ |
392,357 |
|
|
|
$ |
394,061 |
|
|
|
$ |
(1,704 |
) |
(0.4 |
)% |
Adjusted EBITDA |
|
7,199 |
|
1.8 |
% |
|
21,954 |
|
5.6 |
% |
|
(14,755 |
) |
(67.2 |
)% |
|
|
|
|
|
|
|
|
|
|
Unit deliveries |
|
Feb 24,2018 |
ProductMix % (1) |
|
Feb 25,2017 |
ProductMix % (1) |
|
Change |
Class A |
|
1,604 |
|
37.9 |
% |
|
1,466 |
|
35.7 |
% |
|
138 |
|
9.4 |
% |
Class B |
|
781 |
|
18.5 |
% |
|
677 |
|
16.5 |
% |
|
104 |
|
15.4 |
% |
Class C |
|
1,844 |
|
43.6 |
% |
|
1,964 |
|
47.8 |
% |
|
(120 |
) |
(6.1 |
)% |
Total
motorhomes |
|
4,229 |
|
100.0 |
% |
|
4,107 |
|
100.0 |
% |
|
122 |
|
3.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As Of |
|
|
Backlog (2) |
|
|
|
|
Feb 24,2018 |
Feb 25,2017 |
|
Change |
Units |
|
|
|
|
3,053 |
|
2,143 |
|
|
910 |
|
42.5 |
% |
Dollars |
|
|
|
|
$ |
276,231 |
|
$ |
191,522 |
|
|
$ |
84,709 |
|
44.2 |
% |
|
|
|
|
|
|
|
|
|
|
Dealer Inventory |
|
|
|
|
|
|
|
|
|
Units |
|
|
|
|
4,827 |
|
5,068 |
|
|
(241 |
) |
(4.8 |
)% |
(1) Percentages may not add due to rounding
differences.(2) We include in our backlog all accepted orders
from dealers generally 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
(Unaudited) - Towable |
(In thousands, except unit data) |
|
|
|
Quarter Ended |
|
|
|
|
Feb 24,2018 |
% ofRevenue |
|
Feb 25,2017 |
% ofRevenue |
|
Change |
Net revenues |
|
$ |
266,358 |
|
|
|
$ |
171,574 |
|
|
|
$ |
94,784 |
|
55.2 |
% |
Adjusted EBITDA |
|
35,338 |
|
13.3 |
% |
|
18,233 |
|
10.6 |
% |
|
17,105 |
|
93.8 |
% |
|
|
|
|
|
|
|
|
|
|
Unit deliveries |
|
Feb 24,2018 |
ProductMix % (1) |
|
Feb 25,2017 |
ProductMix % (1) |
|
Change |
Travel trailer |
|
5,083 |
|
59.9 |
% |
|
3,046 |
|
56.3 |
% |
|
2,037 |
|
66.9 |
% |
Fifth wheel |
|
3,398 |
|
40.1 |
% |
|
2,365 |
|
43.7 |
% |
|
1,033 |
|
43.7 |
% |
Total
towables |
|
8,481 |
|
100.0 |
% |
|
5,411 |
|
100.0 |
% |
|
3,070 |
|
56.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended |
|
|
|
|
Feb 24,2018 |
% ofRevenue |
|
Feb 25,2017 |
% ofRevenue |
|
Change |
Net revenues |
|
$ |
526,023 |
|
|
|
$ |
221,757 |
|
|
|
$ |
304,266 |
|
137.2 |
% |
Adjusted EBITDA |
|
67,594 |
|
12.9 |
% |
|
21,796 |
|
9.8 |
% |
|
45,798 |
|
210.1 |
% |
|
|
|
|
|
|
|
|
|
|
Unit deliveries |
|
Feb 24,2018 |
ProductMix % (1) |
|
Feb 25,2017 |
ProductMix % (1) |
|
Change |
Travel trailer |
|
10,432 |
|
60.8 |
% |
|
4,555 |
|
61.4 |
% |
|
5,877 |
|
129.0 |
% |
Fifth wheel |
|
6,725 |
|
39.2 |
% |
|
2,868 |
|
38.6 |
% |
|
3,857 |
|
134.5 |
% |
Total
towables |
|
17,157 |
|
100.0 |
% |
|
7,423 |
|
100.0 |
% |
|
9,734 |
|
131.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As Of |
|
|
Backlog (2) |
|
|
|
|
Feb 24,2018 |
Feb 25,2017 |
|
Change |
Units |
|
|
|
|
9,342 |
|
8,490 |
|
|
852 |
|
10.0 |
% |
Dollars |
|
|
|
|
$ |
302,630 |
|
$ |
261,995 |
|
|
$ |
40,635 |
|
15.5 |
% |
|
|
|
|
|
|
|
|
|
|
Dealer Inventory |
|
|
|
|
|
|
|
|
|
Units |
|
|
|
|
15,728 |
|
9,216 |
|
|
6,512 |
|
70.7 |
% |
(1) Percentages may not add due to rounding
differences.(2) We include in our backlog all accepted orders
from dealers generally 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 ReconciliationWe have
provided non-GAAP financial measures, which are not calculated or
presented in accordance with GAAP, 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 in the accompanying news release may
differ from similar measures used by other companies.
The following table reconciles net income to consolidated
Adjusted EBITDA.
|
|
Quarter Ended |
|
Six Months Ended |
(In thousands) |
|
Feb 24,2018 |
|
Feb 25,2017 |
|
Feb 24,2018 |
|
Feb 25,2017 |
Net income |
|
$ |
22,088 |
|
|
$ |
15,278 |
|
|
$ |
40,046 |
|
|
$ |
27,016 |
|
Interest
expense |
|
4,918 |
|
|
5,178 |
|
|
9,699 |
|
|
6,306 |
|
Provision
for income taxes |
|
8,234 |
|
|
7,916 |
|
|
16,794 |
|
|
13,536 |
|
Depreciation |
|
2,198 |
|
|
1,848 |
|
|
4,328 |
|
|
3,428 |
|
Amortization of intangible assets |
|
1,933 |
|
|
10,367 |
|
|
3,988 |
|
|
12,418 |
|
EBITDA |
|
39,371 |
|
|
40,587 |
|
|
74,855 |
|
|
62,704 |
|
Postretirement health care benefit income |
|
— |
|
|
(11,983 |
) |
|
— |
|
|
(24,796 |
) |
Transaction costs |
|
— |
|
|
463 |
|
|
50 |
|
|
5,925 |
|
Non-operating expense (income) |
|
11 |
|
|
4 |
|
|
(112 |
) |
|
(83 |
) |
Adjusted EBITDA |
|
$ |
39,382 |
|
|
$ |
29,071 |
|
|
$ |
74,793 |
|
|
$ |
43,750 |
|
We have provided non-GAAP performance measures of EBITDA and
Adjusted EBITDA as a comparable measure to illustrate the effect of
non-recurring transactions occurring during the quarter and improve
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. We believe
EBITDA and Adjusted EBITDA provide meaningful supplemental
information about our operating performance because each measure
excludes amounts that we do not consider part of our core operating
results when assessing our performance. These types of
adjustments are also specified in the definition of certain
measures required under the terms of our credit facility.
Examples of items excluded from Adjusted EBITDA include the
postretirement health care benefit income from terminating the plan
and transaction costs related to our acquisition of Grand
Design.
Management uses these non-GAAP financial measures (a) to
evaluate our historical and prospective financial performance and
trends as well as its 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 their assessments of performance and in forecasting and
budgeting for our company; (d) to evaluate potential acquisitions;
and, (e) to ensure compliance with covenants and restricted
activities under the terms of our Credit Facility. 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.net
Media Contact: Sam Jefson - Public Relations Specialist -
641-585-6803 - sjefson@wgo.net
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