-- Record Quarterly Revenues Increased
18% on Continued Strong Towable Segment Growth
---- Record Quarterly Diluted EPS of $1.02, Up 67%
Over Prior Year ---- Gross Margins Increased 30
Basis Points Over Prior Year --
Winnebago Industries, Inc. (NYSE:WGO), a leading outdoor lifestyle
product manufacturer, today reported financial results for the
Company's third quarter of Fiscal 2018.
Third Quarter Fiscal 2018 ResultsRevenues for the Fiscal 2018
third quarter ended May 26, 2018, were $562.3 million, an
increase of 18.0% compared to $476.4 million for the Fiscal 2017
period. Gross profit was $85.5 million, an increase of 20.8%
compared to $70.8 million for the Fiscal 2017 period. Gross profit
margin was 15.2% in the quarter, an increase of 30 basis points
versus 14.9% last year, driven by the continuation of accelerated
growth in the Towable segment. Operating income was $48.3 million
for the quarter, an improvement of 38.5% compared to $34.9 million
in the third quarter of last year. Fiscal 2018 third quarter net
income was $32.5 million, an increase of 67.7% compared to $19.4
million in the same period last year. Earnings per diluted share
were $1.02, an increase of 67.2% compared to earnings per diluted
share of $0.61 in the same period last year. During the quarter,
the Company utilized a portion of its tax reform benefit for
employee bonuses and making a contribution to its foundation,
leading to a one-time expense of $3.4 million, or $0.11 per share,
net of tax. Consolidated Adjusted EBITDA was $53.4 million for the
quarter, compared to $47.3 million last year, an increase of 12.7%
driven by strong Towable segment revenue and profit growth.
President and Chief Executive Officer Michael Happe commented,
“Winnebago Industries delivered strong top and bottom-line growth,
margin expansion and market share gains in the quarter. New product
performance, our evolving portfolio mix, and agility in managing
cost pressures all contributed nicely to our third quarter results.
The Towable segment saw strong organic top-line growth and
increased profitability, in addition to delivering another period
of retail market share expansion. Our strong performance to-date in
Fiscal 2018 and confidence in our market share trends for Towable
RVs is reflected in our capacity expansion efforts during the
quarter, as we broke ground on our Winnebago-branded Towable
expansion project and started up a new Grand Design RV production
line. We look forward to having additional capacity to deliver more
of the Towable products our customers love as well as to bring new
innovative products to market. Our Motorized business also saw
continued progress with adjusted EBITDA strengthening from our
previous quarter, as multiple investments in the business start to
generate the moderate improvement we anticipated. While
inflationary pressures have been building and will continue to do
so, our teams are working hard to mitigate these through numerous
cost savings initiatives and select price increases where
necessary. Our new product launches across both segments are
performing well, driving healthy backlog increases, and we remain
comfortable with our current dealer inventory levels which are
supported by our strong retail performance and increases in market
share.”
Mr. Happe added, “During the quarter, and as previously
announced, we distributed a portion of our tax reform savings to
our hardworking Winnebago Industries employees through one time
bonus payments. Additionally, we made a meaningful donation to our
Winnebago foundation which will help us, in the future, to give
back to the communities in which we operate. As always, I want to
thank all of our employees for their dedication and commitment to
the future of Winnebago Industries.”
MotorizedIn the third quarter, revenues for the Motorized
segment were $249.2 million, up 3.1% from the previous year.
Segment Adjusted EBITDA was $9.3 million, down 36.0% from the prior
year. Adjusted EBITDA margin was 3.7%, a decrease of 230 basis
points versus the same period last year, but an improvement of 170
basis points compared to 2.0% in the Second Quarter of Fiscal 2018.
The margin impact of the one-time tax reform reinvestments
mentioned earlier was dilutive to Adjusted EBITDA by 120 basis
points in the quarter. Backlog increased 31.4% over the prior
year, reflecting the strength of our recently introduced
products.
TowableRevenues for the Towable segment were $313.0 million for
the quarter, up 33.4% from the previous year, driven by strong
organic growth across the Grand Design RV and Winnebago-branded
product lines. Segment Adjusted EBITDA was $44.0 million, up 34.4%
over the prior year. Adjusted EBITDA margin was 14.1%, an increase
of 10 basis points, driven by higher volumes and a favorable
product mix. The margin impact of the one-time tax reform
investments mentioned earlier was dilutive to Adjusted EBITDA by 60
basis points in the quarter. Backlog remains strong, growing 15.1%
and compared to a strong backlog in the prior year, while retail
sales continue to yield market share gains by outpacing the
industry for both brands.
Balance Sheet and Cash FlowAs of May 26, 2018, the Company
had total outstanding debt of $251.8 million ($260.0 million of
debt, net of debt issuance costs of $8.2 million) and working
capital of $183.4 million. Cash flow from operations was $61.0
million for the nine months ended May 26, 2018. The
ratio of net debt to Adjusted EBITDA was 1.2x as of May 26,
2018.
Tax Reform ImpactThe Company recorded a tax rate of 26.4% in the
third quarter compared to a rate of 34.6% in the prior year. The
reduction in the rate is related to the lower federal tax rate
enacted in accordance with the Tax Cuts and Jobs Act.
Quarterly Cash DividendOn May 23, 2018, the Company’s board
of directors approved a quarterly cash dividend of $0.10 per share
payable on July 5, 2018, to common stockholders of record at
the close of business on June 20, 2018.
Mr. Happe continued, “As we enter the final quarter of Fiscal
2018, there is much to be excited about at Winnebago Industries
even as we navigate several external pressures. As mentioned
earlier, we experienced inflationary input cost pressures during
our fiscal third quarter and we expect those pressures to continue
into the fourth quarter. As always, we will work closely with
our supplier base, and internally on cost savings initiatives, to
lessen the impacts on our dealer network and end customers of any
necessary increases. In the quarter, we announced the launch of an
all-electric, zero-emission commercial vehicle platform in
conjunction with a strategic partnership with Motiv Power Systems,
a U.S. market leader in medium-duty electric vehicle chassis. And
earlier this month, but after the close of our fiscal third
quarter, we announced our acquisition of Chris-Craft, an iconic
marine brand and an industry leader in recreational boating. The
addition of a premium marine brand aligns with our strategic
initiative to expand the Winnebago Industries portfolio within the
outdoor lifestyle market and provides a new revenue platform in an
exciting marine market that will enable us to continue to drive
improved profitability and shareholder value over the long term.
Our improved RV portfolio and strategic investments continue to
benefit the business as a whole, and we look forward to realizing
the strategic and financial benefits of a broader, more balanced
and diversified portfolio of products uniquely positioned across
the outdoor lifestyle and leisure travel industries.”
Conference CallWinnebago Industries, Inc. will conduct a
conference call to discuss third 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 outdoor lifestyle products under the
Winnebago, Grand Design and Chris-Craft 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, Oregon, Minnesota and Florida. 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 |
|
|
May 26, 2018 |
|
May 27, 2017 |
Net revenues |
|
$ |
562,261 |
|
|
100.0 |
% |
|
$ |
476,364 |
|
|
100.0 |
% |
Cost of goods sold |
|
476,747 |
|
|
84.8 |
% |
|
405,560 |
|
|
85.1 |
% |
Gross
profit |
|
85,514 |
|
|
15.2 |
% |
|
70,804 |
|
|
14.9 |
% |
Operating
expenses: |
|
|
|
|
|
|
|
|
Selling |
|
13,100 |
|
|
2.3 |
% |
|
10,141 |
|
|
2.1 |
% |
General
and administrative |
|
21,404 |
|
|
3.8 |
% |
|
15,194 |
|
|
3.2 |
% |
Transaction costs |
|
800 |
|
|
0.1 |
% |
|
450 |
|
|
0.1 |
% |
Amortization of intangible assets |
|
1,933 |
|
|
0.3 |
% |
|
10,159 |
|
|
2.1 |
% |
Total
SG&A |
|
37,237 |
|
|
6.6 |
% |
|
35,944 |
|
|
7.5 |
% |
Operating income |
|
48,277 |
|
|
8.6 |
% |
|
34,860 |
|
|
7.3 |
% |
Interest expense |
|
4,172 |
|
|
0.7 |
% |
|
5,265 |
|
|
1.1 |
% |
Non-operating
income |
|
(100 |
) |
|
— |
% |
|
(54 |
) |
|
— |
% |
Income before income
taxes |
|
44,205 |
|
|
7.9 |
% |
|
29,649 |
|
|
6.2 |
% |
Provision for income
taxes |
|
11,684 |
|
|
2.1 |
% |
|
10,258 |
|
|
2.2 |
% |
Net income |
|
$ |
32,521 |
|
|
5.8 |
% |
|
$ |
19,391 |
|
|
4.1 |
% |
Income per common
share: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
1.03 |
|
|
|
|
$ |
0.61 |
|
|
|
Diluted |
|
$ |
1.02 |
|
|
|
|
$ |
0.61 |
|
|
|
Weighted average common
shares outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
31,582 |
|
|
|
|
31,587 |
|
|
|
Diluted |
|
31,753 |
|
|
|
|
31,691 |
|
|
|
|
|
Nine Months Ended |
|
|
May 26, 2018 |
|
May 27, 2017 |
Net revenues |
|
$ |
1,480,641 |
|
|
100.0 |
% |
|
$ |
1,092,183 |
|
|
100.0 |
% |
Cost of goods sold |
|
1,264,635 |
|
|
85.4 |
% |
|
943,188 |
|
|
86.4 |
% |
Gross
profit |
|
216,006 |
|
|
14.6 |
% |
|
148,995 |
|
|
13.6 |
% |
Operating
expenses: |
|
|
|
|
|
|
|
|
Selling |
|
37,443 |
|
|
2.5 |
% |
|
25,564 |
|
|
2.3 |
% |
General
and administrative |
|
57,088 |
|
|
3.9 |
% |
|
37,640 |
|
|
3.4 |
% |
Postretirement health care benefit income
|
|
— |
|
|
— |
% |
|
(24,796 |
) |
|
(2.3 |
)% |
Transaction costs |
|
850 |
|
|
0.1 |
% |
|
6,374 |
|
|
0.6 |
% |
Amortization of intangible assets |
|
5,921 |
|
|
0.4 |
% |
|
22,578 |
|
|
2.1 |
% |
Total
SG&A |
|
101,302 |
|
|
6.8 |
% |
|
67,360 |
|
|
6.2 |
% |
Operating income |
|
114,704 |
|
|
7.7 |
% |
|
81,635 |
|
|
7.5 |
% |
Interest expense |
|
13,871 |
|
|
0.9 |
% |
|
11,571 |
|
|
1.1 |
% |
Non-operating
income |
|
(212 |
) |
|
— |
% |
|
(137 |
) |
|
— |
% |
Income before income
taxes |
|
101,045 |
|
|
6.8 |
% |
|
70,201 |
|
|
6.4 |
% |
Provision for
taxes |
|
28,478 |
|
|
1.9 |
% |
|
23,794 |
|
|
2.2 |
% |
Net income |
|
$ |
72,567 |
|
|
4.9 |
% |
|
$ |
46,407 |
|
|
4.2 |
% |
Income per common
share: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
2.30 |
|
|
|
|
$ |
1.53 |
|
|
|
Diluted |
|
$ |
2.28 |
|
|
|
|
$ |
1.52 |
|
|
|
Weighted average common
shares outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
31,617 |
|
|
|
|
30,333 |
|
|
|
Diluted |
|
31,825 |
|
|
|
|
30,448 |
|
|
|
Percentages may not add due to rounding differences.
|
Winnebago Industries, Inc. |
Condensed Consolidated Balance Sheets
(Unaudited) |
(In thousands) |
|
|
|
May 26,2018 |
|
Aug 26,2017 |
ASSETS |
|
|
|
|
Current assets: |
|
|
|
|
Cash and
cash equivalents |
|
$ |
39,029 |
|
|
$ |
35,945 |
|
Receivables, net |
|
148,948 |
|
|
124,539 |
|
Inventories |
|
177,378 |
|
|
142,265 |
|
Prepaid
expenses and other assets |
|
8,408 |
|
|
11,388 |
|
Total
current assets |
|
373,763 |
|
|
314,137 |
|
Total property and
equipment, net |
|
82,481 |
|
|
71,560 |
|
Other assets: |
|
|
|
|
Goodwill |
|
244,684 |
|
|
242,728 |
|
Other
intangible assets, net |
|
222,519 |
|
|
228,440 |
|
Investment in life insurance |
|
28,130 |
|
|
27,418 |
|
Deferred
income taxes |
|
7,043 |
|
|
12,736 |
|
Other
assets |
|
7,090 |
|
|
5,493 |
|
Total
assets |
|
$ |
965,710 |
|
|
$ |
902,512 |
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY |
|
|
|
|
Current
liabilities: |
|
|
|
|
Accounts
payable |
|
$ |
88,397 |
|
|
$ |
79,194 |
|
Current
maturities of long-term debt |
|
— |
|
|
2,850 |
|
Income
taxes payable |
|
6,186 |
|
|
7,450 |
|
Accrued
expenses |
|
95,823 |
|
|
77,664 |
|
Total
current liabilities |
|
190,406 |
|
|
167,158 |
|
Non-current
liabilities: |
|
|
|
|
Long-term
debt, less current maturities |
|
251,798 |
|
|
271,726 |
|
Unrecognized tax benefits |
|
1,703 |
|
|
1,606 |
|
Deferred
compensation benefits, net of current portion |
|
15,732 |
|
|
19,270 |
|
Other |
|
250 |
|
|
1,078 |
|
Total
non-current liabilities |
|
269,483 |
|
|
293,680 |
|
Shareholders'
equity |
|
505,821 |
|
|
441,674 |
|
Total liabilities and shareholders' equity |
|
$ |
965,710 |
|
|
$ |
902,512 |
|
|
Winnebago Industries, Inc. |
Condensed Consolidated Statements of Cash Flows
(Unaudited) |
(In thousands) |
|
|
|
Nine Months Ended |
|
|
May 26, 2018 |
|
May 27, 2017 |
Operating
activities: |
|
|
|
|
Net
income |
|
$ |
72,567 |
|
|
$ |
46,407 |
|
Adjustments to
reconcile net income to net cash provided by operating
activities: |
|
|
|
|
Depreciation |
|
6,679 |
|
|
5,287 |
|
Amortization of intangible assets |
|
5,921 |
|
|
22,578 |
|
Amortization of debt issuance costs |
|
1,222 |
|
|
889 |
|
LIFO
expense |
|
1,238 |
|
|
897 |
|
Stock-based compensation |
|
4,983 |
|
|
2,206 |
|
Deferred
income taxes |
|
4,807 |
|
|
6,396 |
|
Postretirement benefit income and deferred compensation
expenses |
|
852 |
|
|
(23,687 |
) |
Other |
|
(658 |
) |
|
(946 |
) |
Change in assets and
liabilities: |
|
|
|
|
Inventories |
|
(36,351 |
) |
|
(7,497 |
) |
Receivables, prepaid and other assets |
|
(21,275 |
) |
|
(21,336 |
) |
Income
taxes and unrecognized tax benefits |
|
(1,081 |
) |
|
5,806 |
|
Accounts
payable and accrued expenses |
|
24,506 |
|
|
32,778 |
|
Postretirement and deferred compensation benefits |
|
(2,398 |
) |
|
(2,428 |
) |
Net cash provided by
operating activities |
|
61,012 |
|
|
67,350 |
|
|
|
|
|
|
Investing
activities: |
|
|
|
|
Purchases
of property, plant and equipment |
|
(18,123 |
) |
|
(9,740 |
) |
Proceeds
from the sale of property |
|
316 |
|
|
219 |
|
Acquisition of business, net of cash acquired |
|
— |
|
|
(394,694 |
) |
Other |
|
(83 |
) |
|
684 |
|
Net cash used in
investing activities |
|
(17,890 |
) |
|
(403,531 |
) |
|
|
|
|
|
Financing
activities: |
|
|
|
|
Payments
for purchase of common stock |
|
(6,481 |
) |
|
(1,367 |
) |
Payments
of cash dividends |
|
(9,557 |
) |
|
(9,554 |
) |
Payments
of debt issuance costs |
|
— |
|
|
(11,020 |
) |
Borrowings on credit facility |
|
19,700 |
|
|
366,400 |
|
Repayment
of credit facility |
|
(43,700 |
) |
|
(69,400 |
) |
Other |
|
— |
|
|
(92 |
) |
Net cash (used in)
provided by financing activities |
|
(40,038 |
) |
|
274,967 |
|
|
|
|
|
|
Net increase (decrease)
in cash and cash equivalents |
|
3,084 |
|
|
(61,214 |
) |
Cash and cash
equivalents at beginning of period |
|
35,945 |
|
|
85,583 |
|
Cash and cash
equivalents at end of period |
|
$ |
39,029 |
|
|
$ |
24,369 |
|
|
|
|
|
|
Supplemental cash flow
disclosure: |
|
|
|
|
Income
taxes paid, net |
|
$ |
24,833 |
|
|
$ |
11,811 |
|
Interest
paid |
|
$ |
11,935 |
|
|
$ |
7,288 |
|
Non-cash
transactions: |
|
|
|
|
Issuance
of Winnebago common stock for acquisition of business |
|
$ |
— |
|
|
$ |
124,066 |
|
Capital
expenditures in accounts payable |
|
$ |
607 |
|
|
$ |
279 |
|
Accrued
dividend |
|
$ |
— |
|
|
$ |
3,184 |
|
|
Winnebago Industries, Inc. |
Supplemental Information by Reportable Segment
(Unaudited) - Motorized |
(In thousands, except unit data) |
|
|
|
Quarter Ended |
|
|
|
|
May 26, 2018 |
% of Revenue |
|
May 27, 2017 |
% of Revenue |
|
Change |
Net revenues |
|
$ |
249,245 |
|
|
|
$ |
241,670 |
|
|
|
$ |
7,575 |
|
3.1 |
% |
Adjusted EBITDA |
|
9,319 |
|
3.7 |
% |
|
14,567 |
|
6.0 |
% |
|
(5,248 |
) |
(36.0 |
)% |
|
|
|
|
|
|
|
|
|
|
Unit deliveries |
|
May 26, 2018 |
ProductMix %(1) |
|
May 27, 2017 |
ProductMix %(1) |
|
Change |
Class A |
|
722 |
|
25.3 |
% |
|
797 |
|
28.5 |
% |
|
(75 |
) |
(9.4 |
)% |
Class B |
|
606 |
|
21.2 |
% |
|
471 |
|
16.9 |
% |
|
135 |
|
28.7 |
% |
Class C |
|
1,528 |
|
53.5 |
% |
|
1,524 |
|
54.6 |
% |
|
4 |
|
0.3 |
% |
Total
motorhomes |
|
2,856 |
|
100.0 |
% |
|
2,792 |
|
100.0 |
% |
|
64 |
|
2.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended |
|
|
|
|
May 26, 2018 |
% of Revenue |
|
May 27, 2017 |
% of Revenue |
|
Change |
Net revenues |
|
$ |
641,602 |
|
|
|
$ |
635,732 |
|
|
|
$ |
5,870 |
|
0.9 |
% |
Adjusted EBITDA |
|
16,518 |
|
2.6 |
% |
|
36,521 |
|
5.7 |
% |
|
(20,003 |
) |
(54.8 |
)% |
|
|
|
|
|
|
|
|
|
|
Unit deliveries |
|
May 26, 2018 |
ProductMix %(1) |
|
May 27, 2017 |
ProductMix %(1) |
|
Change |
Class A |
|
2,326 |
|
32.8 |
% |
|
2,263 |
|
32.8 |
% |
|
63 |
|
2.8 |
% |
Class B |
|
1,387 |
|
19.6 |
% |
|
1,148 |
|
16.6 |
% |
|
239 |
|
20.8 |
% |
Class C |
|
3,372 |
|
47.6 |
% |
|
3,488 |
|
50.6 |
% |
|
(116 |
) |
(3.3 |
)% |
Total
motorhomes |
|
7,085 |
|
100.0 |
% |
|
6,899 |
|
100.0 |
% |
|
186 |
|
2.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As Of |
|
|
Backlog(2) |
|
|
|
|
May 26, 2018 |
May 27, 2017 |
|
Change |
Units |
|
|
|
|
2,155 |
|
1,640 |
|
|
515 |
|
31.4 |
% |
Dollars |
|
|
|
|
$ |
193,079 |
|
$ |
141,998 |
|
|
$ |
51,081 |
|
36.0 |
% |
|
|
|
|
|
|
|
|
|
|
Dealer Inventory |
|
|
|
|
|
|
|
|
|
Units |
|
|
|
|
4,750 |
|
4,670 |
|
|
80 |
|
1.7 |
% |
(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. |
Supplemental Information by Reportable Segment
(Unaudited) - Towable |
(In thousands, except unit data) |
|
|
|
Quarter Ended |
|
|
|
|
May 26, 2018 |
% of Revenue |
|
May 27, 2017 |
% of Revenue |
|
Change |
Net revenues |
|
$ |
313,016 |
|
|
|
$ |
234,694 |
|
|
|
$ |
78,322 |
|
33.4 |
% |
Adjusted EBITDA |
|
44,042 |
|
14.1 |
% |
|
32,761 |
|
14.0 |
% |
|
11,281 |
|
34.4 |
% |
|
|
|
|
|
|
|
|
|
|
Unit deliveries |
|
May 26, 2018 |
ProductMix %(1) |
|
May 27, 2017 |
ProductMix %(1) |
|
Change |
Travel trailer |
|
6,063 |
|
62.1 |
% |
|
4,359 |
|
58.5 |
% |
|
1,704 |
|
39.1 |
% |
Fifth wheel |
|
3,703 |
|
37.9 |
% |
|
3,092 |
|
41.5 |
% |
|
611 |
|
19.8 |
% |
Total
towables |
|
9,766 |
|
100.0 |
% |
|
7,451 |
|
100.0 |
% |
|
2,315 |
|
31.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended |
|
|
|
|
May 26, 2018 |
% of Revenue |
|
May 27, 2017 |
% of Revenue |
|
Change |
Net revenues |
|
$ |
839,039 |
|
|
|
$ |
456,451 |
|
|
|
$ |
382,588 |
|
83.8 |
% |
Adjusted EBITDA |
|
111,636 |
|
13.3 |
% |
|
54,557 |
|
12.0 |
% |
|
57,079 |
|
104.6 |
% |
|
|
|
|
|
|
|
|
|
|
Unit deliveries |
|
May 26, 2018 |
ProductMix %(1) |
|
May 27, 2017 |
ProductMix %(1) |
|
Change |
Travel trailer |
|
16,495 |
|
61.3 |
% |
|
8,914 |
|
59.9 |
% |
|
7,581 |
|
85.0 |
% |
Fifth wheel |
|
10,428 |
|
38.7 |
% |
|
5,960 |
|
40.1 |
% |
|
4,468 |
|
75.0 |
% |
Total
towables |
|
26,923 |
|
100.0 |
% |
|
14,874 |
|
100.0 |
% |
|
12,049 |
|
81.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As Of |
|
|
Backlog(2) |
|
|
|
|
May 26, 2018 |
May 27, 2017 |
|
Change |
Units |
|
|
|
|
9,968 |
|
8,657 |
|
|
1,311 |
|
15.1 |
% |
Dollars |
|
|
|
|
$ |
313,513 |
|
$ |
269,965 |
|
|
$ |
43,548 |
|
16.1 |
% |
|
|
|
|
|
|
|
|
|
|
Dealer Inventory |
|
|
|
|
|
|
|
|
|
Units |
|
|
|
|
15,986 |
|
9,520 |
|
|
6,466 |
|
67.9 |
% |
(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 Reconciliation
(Unaudited)(In thousands)
We 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 |
|
Nine Months Ended |
(In thousands) |
|
May 26, 2018 |
|
May 27, 2017 |
|
May 26, 2018 |
|
May 27, 2017 |
Net income |
|
$ |
32,521 |
|
|
$ |
19,391 |
|
|
$ |
72,567 |
|
|
$ |
46,407 |
|
Interest
expense |
|
4,172 |
|
|
5,265 |
|
|
13,871 |
|
|
11,571 |
|
Provision
for income taxes |
|
11,684 |
|
|
10,258 |
|
|
28,478 |
|
|
23,794 |
|
Depreciation |
|
2,351 |
|
|
1,859 |
|
|
6,679 |
|
|
5,287 |
|
Amortization of intangible assets |
|
1,933 |
|
|
10,159 |
|
|
5,921 |
|
|
22,578 |
|
EBITDA |
|
52,661 |
|
|
46,932 |
|
|
127,516 |
|
|
109,637 |
|
Postretirement health care benefit income |
|
— |
|
|
— |
|
|
— |
|
|
(24,796 |
) |
Transaction costs |
|
800 |
|
|
450 |
|
|
850 |
|
|
6,374 |
|
Non-operating income |
|
(100 |
) |
|
(54 |
) |
|
(212 |
) |
|
(137 |
) |
Adjusted EBITDA |
|
$ |
53,361 |
|
|
$ |
47,328 |
|
|
$ |
128,154 |
|
|
$ |
91,078 |
|
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.netMedia Contact: Sam Jefson - Public Relations
Specialist - 641-585-6803 - sjefson@wgo.net
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