-- Quarterly Revenues Increased 73% and
Full Year Revenues Increased 59% on Strong Towable Segment Growth
---- Quarterly EPS of $0.79 and Full Year EPS of
$2.32, Up 61% and 38%, Respectively, over Prior Year
---- Gross Margins Increased 410 Basis Points in
Fourth Quarter and 280 Basis Points in Full Year
---- Board Approved Quarterly Cash Dividend
of $0.10 per Share and $70 Million Share Repurchase
Authorization --
Winnebago Industries, Inc. (NYSE:WGO), a leading United States
recreation vehicle manufacturer, today reported financial results
for the Company's fourth quarter and full year Fiscal 2017.
Fourth Quarter Fiscal 2017 ResultsRevenues for the Fiscal 2017
fourth quarter ended August 26, 2017, were $454.9 million, an
increase of 72.8% compared to $263.3 million for the Fiscal 2016
period. Gross profit was $73.6 million, an increase of 130.9%
compared to $31.9 million for the Fiscal 2016 period. Gross
profit margin increased 410 basis points, primarily driven by the
favorable mix from the accelerated growth in the more profitable
Towable segment. Operating income was $43.5 million for the
current quarter, an improvement of 130.2% compared to $18.9 million
in the fourth quarter of last year. Fiscal 2017 fourth
quarter net income was $24.9 million, or $0.79 per diluted share,
an increase of 89.6% compared to $13.1 million, or $0.49 per
diluted share, in the same period last year. Consolidated
Adjusted EBITDA was $47.8 million for the quarter, compared to
$18.1 million last year, an increase of 163.4%.
President and Chief Executive Officer Michael Happe commented,
“We made significant progress in Fiscal 2017 to transform Winnebago
Industries into a larger, more profitable outdoor lifestyle company
offering a full line of RVs. We continue to deliver robust
sales growth and gross margin improvements, driven largely by the
strong performance of our Grand Design division and the organic
growth in our Winnebago-branded Towable division. On the
Motorized side, our results reflect our strategic direction of
repositioning and simplifying our product line, but also the
changing trends of the Motorized buyer to more affordable Class A
and Class C motorhomes. Our work to streamline and
reinvigorate our Motorized product line is an active
priority. We are excited about the changes we are making to
all of our product offerings, design processes, and manufacturing
environments across the Company. Thanks to the overall
balance in our portfolio, we continue to report strong improvements
in our financial results and key financial metrics. Our cash
flow has been very strong which allowed us to pay down our debt
ahead of schedule with total debt reduction of $69.0 million since
the end of the first quarter. I want to thank all our
Winnebago Industries employees for their hard work over the year
and their continued dedication to providing our customers with an
extraordinary experience and strengthening our Company
overall.”
Full Year Fiscal 2017 ResultsYear over year, Fiscal 2017
revenues of $1.547 billion increased 58.6% from $975.2 million in
Fiscal 2016. Gross profit improved 280 basis points,
primarily due to favorable business mix driven by the addition of
Grand Design and the strong growth in the Towable segment
overall. Operating income was $125.1 million for Fiscal 2017,
an improvement of 90.3% compared to $65.7 million in Fiscal
2016. Net income for Fiscal 2017 was $71.3 million, or $2.32
per diluted share, an increase of 38.1% compared to the $1.68 per
diluted share in last fiscal year. Fiscal 2017 consolidated
Adjusted EBITDA was $138.9 million, an increase of 122.9% from
$62.3 million in Fiscal 2016.
Significant items related to the Grand Design acquisition that
are impacting income before income taxes in the fourth quarter of
Fiscal 2017 and for the fiscal year:
- Additional transaction costs related to the acquisition were
minimal in the fourth quarter. For the full year, transaction
costs were $6.6 million, or $0.14 per diluted share, net of
tax.
- For the fourth quarter, amortization expenses of $2.1 million
were recorded related to the definite-lived intangible assets
acquired, or $0.04 per diluted share, net of tax. For the
full year, amortization expenses of $24.7 million were recorded, or
$0.53 per diluted share, net of tax. We expect ongoing
amortization expense will be approximately $2.0 million per quarter
through Fiscal 2021.
- Interest expense of $5.3 million was recorded in the fourth
quarter related to the debt associated with the acquisition of
Grand Design, or $0.11 per diluted share, net of tax. For the
full year, interest expense of $16.8 million was recorded, or $0.36
per diluted share, net of tax.
MotorizedIn the fourth quarter, revenues for the Motorized
segment were $226.2 million, down 4.4% from the previous
year. Segment Adjusted EBITDA was $12.2 million, down 31.0%
from the prior year. Adjusted EBITDA margin decreased 210
basis points, primarily driven by pricing adjustments and costs
associated with transitioning production to the Company’s Junction
City, Oregon facility.
For the full year Fiscal 2017, revenues for the Motorized
segment were $861.9 million, down 2.7% from Fiscal 2016.
Segment Adjusted EBITDA for the full year was $43.9 million, down
23.4% from Fiscal 2016. Adjusted EBITDA margin decreased 140
basis points due to the same factors noted in the fourth
quarter.
TowableRevenues for the Towable segment were $228.7 million for
the quarter, up $202.1 million over the prior year, driven by the
addition of $193.4 million in revenue from the Grand Design
acquisition and continued strong organic growth in
Winnebago-branded Towable products, which increased 33% compared to
last year. Segment Adjusted EBITDA was $35.6 million, up
$34.8 million over the prior year. Adjusted EBITDA margin
increased 1,250 basis points, driven by higher volumes and a
favorable product mix, including the addition of Grand Design
products within this segment. Margins in the Towable segment
were also impacted by a $2.9 million (125 basis points) inventory
adjustment in the fourth quarter reflecting an improvement in
material usage efficiencies.
For the full year Fiscal 2017, revenues for the Towable segment
were $685.2 million, up $595.8 million from Fiscal 2016, driven by
the addition of $559.7 million in revenue from the Grand Design
acquisition and 40% organic growth in Winnebago-branded Towable
products. Segment Adjusted EBITDA for Fiscal 2017 was $94.9
million, up $90.0 million from Fiscal 2016. Adjusted EBITDA
margin increased 840 basis points for the full year.
Balance Sheet and Cash FlowAs of August 26, 2017, the Company
had total outstanding debt of $274.6 million ($284.0 million of
debt, net of debt issuance costs of $9.4 million) and working
capital of $147.0 million. The debt-to-equity ratio was 62.2%
and the current ratio was 1.9 as of the end of the quarter and
fiscal year. Cash flow from operations was $29.8 million in
the quarter and $97.1 million for the full year, an increase of 42%
and 84%, respectively, from the prior period in Fiscal
2016.
Quarterly Cash DividendOn October 18, 2017, the Company’s
Board of Directors approved a quarterly cash dividend of $0.10 per
share payable on November 29, 2017, to common stockholders of
record at the close of business on November 15, 2017.
Share Repurchase AuthorizationOn October 18, 2017, the Company's
Board of Directors authorized a share repurchase program in the
amount of $70 million, which is approximately 5% of the Company's
market capitalization as of October 18, 2017.
Mr. Happe continued, "As we head into Fiscal 2018 as a larger,
broader, and more profitable organization, we will continue our
work to build a company that can generate materially more value in
the future. We have very strong brands, and our long-term
aspiration is to be the undisputed leader in the market. We
are seeing a tremendous amount of interest from dealers and
customers in the five new product offerings recently
introduced:
- Class A Diesel Horizon, offering a fresh interior with
contemporary styling unlike any other offering at its price
point;
- Class A Gas Intent, which strengthens Winnebago's position in
the Class A value segment;
- Class B Revel, which is an off-road four-by-four that targets a
previously unmet market;
- Minnie Plus fifth wheel from our Winnebago-branded Towable
division which extends the popular Minnie series into the fifth
wheel market with open floor plans, modest weights, and a
mid-profile design; and finally,
- Reflection fifth wheel, a new half-ton offering from Grand
Design that provides maximum towability at a value price
point.
As announced last quarter, the Company's Board of Directors
approved a facilities expansion for Grand Design, and good progress
has been made on that project, which is scheduled to increase
production midway through Fiscal 2018. In addition, we are
pleased to announce today that the Board of Directors has recently
approved a $12 million facility expansion for our Winnebago-branded
Towable division that will add capacity in this fast growing
division. We intend to continue to invest in our growth
opportunities while seeking to generate strong cash flow to further
reduce our debt, keep our balance sheet strong, and fund profitable
growth as we work to become the premier outdoor lifestyle
company.”
Conference Call
Winnebago Industries, Inc. will conduct a conference call to
discuss fourth quarter and full year Fiscal 2017 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 Industries
Winnebago 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's investor relations material or to add your name to an
automatic email list for Company news releases,
visit http://investor.wgo.net.
Forward Looking Statements
This 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, any unexpected expenses related to ERP,
risks relating to the integration of our acquisition of Grand
Design including: risks inherent in the achievement of cost
synergies and the timing thereof; risks related to the disruption
of the transaction to Winnebago and Grand Design and its
management; the effect of integration on Grand Design's ability to
retain and hire key personnel and maintain relationships with
customers, suppliers and other third parties, risk 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(In thousands, except percent and per share
data) |
|
|
|
Three Months Ended |
|
|
August 26, 2017 |
|
August 27, 2016 |
Net revenues |
|
$ |
454,936 |
|
|
100.0 |
% |
|
$ |
263,254 |
|
|
100.0 |
% |
Cost of goods sold |
|
381,354 |
|
|
83.8 |
% |
|
231,387 |
|
|
87.9 |
% |
Gross
profit |
|
73,582 |
|
|
16.2 |
% |
|
31,867 |
|
|
12.1 |
% |
SG&A: |
|
|
|
|
|
|
|
|
Selling |
|
10,104 |
|
|
2.2 |
% |
|
5,108 |
|
|
1.9 |
% |
General
and administrative |
|
17,707 |
|
|
3.9 |
% |
|
9,466 |
|
|
3.6 |
% |
Postretirement health care benefit income |
|
— |
|
|
— |
% |
|
(1,593 |
) |
|
(0.6 |
)% |
Transaction costs |
|
218 |
|
|
— |
% |
|
— |
|
|
— |
% |
Amortization of intangible assets |
|
2,082 |
|
|
0.5 |
% |
|
— |
|
|
— |
% |
Total
SG&A expenses |
|
30,111 |
|
|
6.6 |
% |
|
12,981 |
|
|
4.9 |
% |
Operating income |
|
43,471 |
|
|
9.6 |
% |
|
18,886 |
|
|
7.2 |
% |
Interest expense |
|
5,266 |
|
|
1.2 |
% |
|
— |
|
|
— |
% |
Non-operating
income |
|
(193 |
) |
|
— |
% |
|
(263 |
) |
|
(0.1 |
)% |
Income before income
taxes |
|
38,398 |
|
|
8.4 |
% |
|
19,149 |
|
|
7.3 |
% |
Provision for income
taxes |
|
13,475 |
|
|
3.0 |
% |
|
6,003 |
|
|
2.3 |
% |
Net income |
|
$ |
24,923 |
|
|
5.5 |
% |
|
$ |
13,146 |
|
|
5.0 |
% |
Income per common
share: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.79 |
|
|
|
|
$ |
0.49 |
|
|
|
Diluted |
|
$ |
0.79 |
|
|
|
|
$ |
0.49 |
|
|
|
Weighted average common
shares outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
31,591 |
|
|
|
|
26,896 |
|
|
|
Diluted |
|
31,718 |
|
|
|
|
27,036 |
|
|
|
Percentages may not add due to rounding differences.
|
|
Year Ended |
|
|
August 26, 2017 |
|
August 27, 2016 |
Net revenues |
|
$ |
1,547,119 |
|
|
100.0 |
% |
|
$ |
975,226 |
|
|
100.0 |
% |
Cost of goods sold |
|
1,324,542 |
|
|
85.6 |
% |
|
862,577 |
|
|
88.4 |
% |
Gross
profit |
|
222,577 |
|
|
14.4 |
% |
|
112,649 |
|
|
11.6 |
% |
SG&A: |
|
|
|
|
|
|
|
|
Selling |
|
35,668 |
|
|
2.3 |
% |
|
19,823 |
|
|
2.0 |
% |
General
and administrative |
|
55,347 |
|
|
3.6 |
% |
|
33,209 |
|
|
3.4 |
% |
Postretirement health care benefit income |
|
(24,796 |
) |
|
(1.6 |
)% |
|
(6,124 |
) |
|
(0.6 |
)% |
Transaction costs |
|
6,592 |
|
|
0.4 |
% |
|
— |
|
|
— |
% |
Amortization of intangible assets |
|
24,660 |
|
|
1.6 |
% |
|
— |
|
|
— |
% |
Total
SG&A expenses |
|
97,471 |
|
|
6.3 |
% |
|
46,908 |
|
|
4.8 |
% |
Operating income |
|
125,106 |
|
|
8.1 |
% |
|
65,741 |
|
|
6.7 |
% |
Interest expense |
|
16,837 |
|
|
1.1 |
% |
|
— |
|
|
— |
% |
Non-operating
income |
|
(330 |
) |
|
— |
% |
|
(457 |
) |
|
— |
% |
Income before income
taxes |
|
108,599 |
|
|
7.0 |
% |
|
66,198 |
|
|
6.8 |
% |
Provision for
taxes |
|
37,269 |
|
|
2.4 |
% |
|
20,702 |
|
|
2.1 |
% |
Net income |
|
$ |
71,330 |
|
|
4.6 |
% |
|
$ |
45,496 |
|
|
4.7 |
% |
Income per common
share: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
2.33 |
|
|
|
|
$ |
1.69 |
|
|
|
Diluted |
|
$ |
2.32 |
|
|
|
|
$ |
1.68 |
|
|
|
Weighted average common
shares outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
30,648 |
|
|
|
|
26,925 |
|
|
|
Diluted |
|
30,766 |
|
|
|
|
27,033 |
|
|
|
Percentages may not add due to rounding differences.
Winnebago Industries,
Inc.Condensed Consolidated Balance
Sheets(In thousands) |
|
|
|
Aug 26,2017 |
|
Aug 27,2016 |
ASSETS |
|
|
|
|
Current assets: |
|
|
|
|
Cash and
cash equivalents |
|
$ |
35,945 |
|
|
$ |
85,583 |
|
Receivables, net |
|
124,539 |
|
|
66,184 |
|
Inventories |
|
142,265 |
|
|
122,522 |
|
Prepaid
expenses and other assets |
|
11,388 |
|
|
6,300 |
|
Total
current assets |
|
314,137 |
|
|
280,589 |
|
Total property and
equipment, net |
|
71,560 |
|
|
55,931 |
|
Other assets: |
|
|
|
|
Goodwill |
|
242,728 |
|
|
1,228 |
|
Other
intangible assets, net |
|
228,440 |
|
|
— |
|
Investment in life insurance |
|
27,418 |
|
|
26,492 |
|
Deferred
income taxes |
|
12,736 |
|
|
18,753 |
|
Other
assets |
|
5,493 |
|
|
7,725 |
|
Total
assets |
|
$ |
902,512 |
|
|
$ |
390,718 |
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY |
|
|
|
|
Current
liabilities: |
|
|
|
|
Accounts
payable |
|
$ |
79,194 |
|
|
$ |
44,134 |
|
Current
maturities of long-term debt |
|
2,850 |
|
|
— |
|
Income
taxes payable |
|
7,450 |
|
|
19 |
|
Accrued
expenses |
|
77,664 |
|
|
48,796 |
|
Total
current liabilities |
|
167,158 |
|
|
92,949 |
|
Non-current
liabilities: |
|
|
|
|
Long-term
debt, less current maturities |
|
271,726 |
|
|
— |
|
Unrecognized tax benefits |
|
1,606 |
|
|
2,461 |
|
Deferred
compensation and postretirement health care benefits, net of
current portion |
|
19,270 |
|
|
26,949 |
|
Other |
|
1,078 |
|
|
— |
|
Total
non-current liabilities |
|
293,680 |
|
|
29,410 |
|
Shareholders'
equity |
|
441,674 |
|
|
268,359 |
|
Total
liabilities and shareholders' equity |
|
$ |
902,512 |
|
|
$ |
390,718 |
|
Winnebago Industries,
Inc.Condensed Consolidated Statements of Cash
Flows(In thousands) |
|
|
|
Year Ended |
|
|
Aug 26,2017 |
|
Aug 27,2016 |
Operating
activities: |
|
|
|
|
Net
income |
|
$ |
71,330 |
|
|
$ |
45,496 |
|
Adjustments to
reconcile net income to net cash provided by operating
activities: |
|
|
|
|
Depreciation |
|
7,315 |
|
|
5,745 |
|
Amortization of intangible assets |
|
24,660 |
|
|
— |
|
Amortization of debt issuance costs |
|
1,596 |
|
|
— |
|
LIFO
expense |
|
1,722 |
|
|
1,153 |
|
Stock-based compensation |
|
2,977 |
|
|
3,293 |
|
Deferred
income taxes |
|
8,360 |
|
|
2,233 |
|
Postretirement benefit income and deferred compensation
expenses |
|
(23,379 |
) |
|
(4,292 |
) |
Other |
|
(1,257 |
) |
|
(935 |
) |
Change in assets and
liabilities: |
|
|
|
|
Inventories |
|
(6,165 |
) |
|
(11,510 |
) |
Receivables, prepaid and other assets |
|
(27,597 |
) |
|
1,217 |
|
Income
taxes and unrecognized tax benefits |
|
7,045 |
|
|
85 |
|
Accounts
payable and accrued expenses |
|
33,697 |
|
|
14,253 |
|
Postretirement and deferred compensation benefits |
|
(3,177 |
) |
|
(3,992 |
) |
Net cash provided by
operating activities |
|
97,127 |
|
|
52,746 |
|
|
|
|
|
|
Investing
activities: |
|
|
|
|
Purchases
of property, plant and equipment |
|
(13,993 |
) |
|
(24,551 |
) |
Proceeds
from the sale of property |
|
223 |
|
|
18 |
|
Acquisition of business, net of cash acquired |
|
(392,473 |
) |
|
— |
|
Other |
|
858 |
|
|
1,141 |
|
Net cash used in
investing activities |
|
(405,385 |
) |
|
(23,392 |
) |
|
|
|
|
|
Financing
activities: |
|
|
|
|
Payments
for purchase of common stock |
|
(1,530 |
) |
|
(3,066 |
) |
Payments
of cash dividends |
|
(12,738 |
) |
|
(10,891 |
) |
Payments
of debt issuance costs |
|
(11,020 |
) |
|
— |
|
Borrowings on credit facility |
|
366,400 |
|
|
— |
|
Repayment
of credit facility |
|
(82,400 |
) |
|
— |
|
Other |
|
(92 |
) |
|
(53 |
) |
Net cash provided by
(used in) financing activities |
|
258,620 |
|
|
(14,010 |
) |
|
|
|
|
|
Net (decrease) increase
in cash and cash equivalents |
|
(49,638 |
) |
|
15,344 |
|
Cash and cash
equivalents at beginning of period |
|
85,583 |
|
|
70,239 |
|
Cash and cash
equivalents at end of period |
|
$ |
35,945 |
|
|
$ |
85,583 |
|
|
|
|
|
|
Supplemental cash flow
disclosure: |
|
|
|
|
Income
taxes paid, net |
|
$ |
21,421 |
|
|
$ |
18,449 |
|
Interest
paid |
|
$ |
11,893 |
|
|
$ |
— |
|
|
|
|
|
|
Non-cash
transactions: |
|
|
|
|
Issuance
of Winnebago common stock for acquisition of business |
|
$ |
124,066 |
|
|
$ |
— |
|
Capital
expenditures in accounts payable |
|
$ |
1,021 |
|
|
$ |
903 |
|
Winnebago Industries,
Inc.Supplemental Information by Reportable Segment
- Motorized(In thousands, except unit
data) |
|
|
|
Quarter Ended |
|
|
|
|
Aug 26,2017 |
% ofRevenue |
|
Aug 27,2016 |
% ofRevenue |
|
Change |
Net revenues |
|
$ |
226,191 |
|
|
|
$ |
236,652 |
|
|
|
$ |
(10,461 |
) |
|
(4.4 |
)% |
Adjusted EBITDA |
|
12,210 |
|
5.4 |
% |
|
17,683 |
|
7.5 |
% |
|
(5,473 |
) |
|
(31.0 |
)% |
|
|
|
|
|
|
|
|
|
|
Unit deliveries |
|
Aug 26,2017 |
ProductMix % (1) |
|
Aug 27,2016 |
ProductMix % (1) |
|
Change |
Class A |
|
920 |
|
39.0 |
% |
|
684 |
|
28.1 |
% |
|
236 |
|
|
34.5 |
% |
Class B |
|
393 |
|
16.6 |
% |
|
408 |
|
16.7 |
% |
|
(15 |
) |
|
(3.7 |
)% |
Class C |
|
1,048 |
|
44.4 |
% |
|
1,344 |
|
55.2 |
% |
|
(296 |
) |
|
(22.0 |
)% |
Total
motorhomes |
|
2,361 |
|
100.0 |
% |
|
2,436 |
|
100.0 |
% |
|
(75 |
) |
|
(3.1 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended |
|
|
|
|
Aug 26,2017 |
% ofRevenue |
|
Aug 27,2016 |
% ofRevenue |
|
Change |
Net revenues |
|
$ |
861,922 |
|
|
|
$ |
885,814 |
|
|
|
$ |
(23,892 |
) |
|
(2.7 |
)% |
Adjusted EBITDA |
|
43,948 |
|
5.1 |
% |
|
57,365 |
|
6.5 |
% |
|
(13,417 |
) |
|
(23.4 |
)% |
|
|
|
|
|
|
|
|
|
|
Unit deliveries |
|
Aug 26,2017 |
ProductMix % (1) |
|
Aug 27,2016 |
ProductMix % (1) |
|
Change |
Class A |
|
3,182 |
|
34.4 |
% |
|
2,925 |
|
31.4 |
% |
|
257 |
|
|
8.8 |
% |
Class B |
|
1,541 |
|
16.6 |
% |
|
1,239 |
|
13.3 |
% |
|
302 |
|
|
24.4 |
% |
Class C |
|
4,537 |
|
49.0 |
% |
|
5,143 |
|
55.3 |
% |
|
(606 |
) |
|
(11.8 |
)% |
Total
motorhomes |
|
9,260 |
|
100.0 |
% |
|
9,307 |
|
100.0 |
% |
|
(47 |
) |
|
(0.5 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As Of |
|
|
Backlog (2) |
|
|
|
|
Aug 26, 2017 |
Aug 27, 2016 |
|
Change |
Units |
|
|
|
|
1,293 |
|
1,139 |
|
|
154 |
|
|
13.5 |
% |
Dollars |
|
|
|
|
$ |
122,142 |
|
$ |
107,621 |
|
|
$ |
14,521 |
|
|
13.5 |
% |
|
|
|
|
|
|
|
|
|
|
Dealer Inventory |
|
|
|
|
|
|
|
|
|
Units |
|
|
|
|
4,282 |
|
4,345 |
|
|
(63 |
) |
|
(1.4 |
)% |
(1) Percentages may not add due to rounding
differences.(2) We include in our backlog all accepted orders
from dealers to be shipped within the next six months. Orders
in backlog can be canceled 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
- Towable(In thousands, except unit
data) |
|
|
|
Quarter Ended |
|
|
|
|
Aug 26,2017 |
% ofRevenue |
|
Aug 27,2016 |
% ofRevenue |
|
Change |
Net revenues |
|
$ |
228,745 |
|
|
|
$ |
26,602 |
|
|
|
$ |
202,143 |
|
|
759.9 |
% |
Adjusted EBITDA
|
|
35,589 |
|
15.6 |
% |
|
817 |
|
3.1 |
% |
|
34,772 |
|
|
4,256.1 |
% |
|
|
|
|
|
|
|
|
|
|
Unit deliveries |
|
Aug 26,2017 |
ProductMix % (1) |
|
Aug 27,2016 |
ProductMix % (1) |
|
Change |
Travel trailer |
|
4,736 |
|
62.3 |
% |
|
1,051 |
|
85.9 |
% |
|
3,685 |
|
|
350.6 |
% |
Fifth wheel |
|
2,864 |
|
37.7 |
% |
|
173 |
|
14.1 |
% |
|
2,691 |
|
|
1,555.5 |
% |
Total
towables |
|
7,600 |
|
100.0 |
% |
|
1,224 |
|
100.0 |
% |
|
6,376 |
|
|
520.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended |
|
|
|
|
Aug 26,2017 |
% ofRevenue |
|
Aug 27,2016 |
% ofRevenue |
|
Change |
Net revenues |
|
$ |
685,197 |
|
|
|
$ |
89,412 |
|
|
|
$ |
595,785 |
|
|
666.3 |
% |
Adjusted EBITDA |
|
94,929 |
|
13.9 |
% |
|
4,952 |
|
5.5 |
% |
|
89,977 |
|
|
1,817.0 |
% |
|
|
|
|
|
|
|
|
|
|
Unit deliveries |
|
Aug 26,2017 |
ProductMix % (1) |
|
Aug 27,2016 |
ProductMix % (1) |
|
Change |
Travel trailer |
|
13,650 |
|
60.7 |
% |
|
3,613 |
|
86.0 |
% |
|
10,037 |
|
|
277.8 |
% |
Fifth wheel |
|
8,824 |
|
39.3 |
% |
|
586 |
|
14.0 |
% |
|
8,238 |
|
|
1,405.8 |
% |
Total
towables |
|
22,474 |
|
100.0 |
% |
|
4,199 |
|
100.0 |
% |
|
18,275 |
|
|
435.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As Of |
|
|
Backlog (2) |
|
|
|
|
Aug 26,2017 |
Aug 27,2016 |
|
Change |
Units |
|
|
|
|
8,001 |
|
492 |
|
|
7,509 |
|
|
1,526.2 |
% |
Dollars |
|
|
|
|
$ |
229,706 |
|
$ |
8,420 |
|
|
$ |
221,286 |
|
|
2,628.1 |
% |
|
|
|
|
|
|
|
|
|
|
Dealer Inventory |
|
|
|
|
|
|
|
|
|
Units |
|
|
|
|
9,545 |
|
2,156 |
|
|
7,389 |
|
|
342.7 |
% |
(1) Percentages may not add due to rounding
differences.(2) We include in our backlog all accepted orders
from dealers to be shipped within the next six months. Orders
in backlog can be canceled 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 |
|
Year Ended |
(In thousands) |
|
Aug 26,2017 |
|
Aug 27,2016 |
|
Aug 26,2017 |
|
Aug 27,2016 |
Net income |
|
$ |
24,923 |
|
|
$ |
13,146 |
|
|
$ |
71,330 |
|
|
$ |
45,496 |
|
Interest
expense |
|
5,266 |
|
|
— |
|
|
16,837 |
|
|
— |
|
Provision
for income taxes |
|
13,475 |
|
|
6,003 |
|
|
37,269 |
|
|
20,702 |
|
Depreciation |
|
2,028 |
|
|
1,502 |
|
|
7,315 |
|
|
5,745 |
|
Amortization of intangible assets |
|
2,082 |
|
|
— |
|
|
24,660 |
|
|
— |
|
EBITDA |
|
47,774 |
|
|
20,651 |
|
|
157,411 |
|
|
71,943 |
|
Postretirement health care benefit income |
|
— |
|
|
(1,593 |
) |
|
(24,796 |
) |
|
(6,124 |
) |
Legal
settlement |
|
— |
|
|
(650 |
) |
|
— |
|
|
(3,400 |
) |
Transaction costs |
|
218 |
|
|
355 |
|
|
6,592 |
|
|
355 |
|
Non-operating income |
|
(193 |
) |
|
(263 |
) |
|
(330 |
) |
|
(457 |
) |
Adjusted EBITDA |
|
$ |
47,799 |
|
|
$ |
18,500 |
|
|
$ |
138,877 |
|
|
$ |
62,317 |
|
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, a favorable legal settlement and the 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 our performance relative to competitors and peers
that publish similar measures; (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; and, (d) to evaluate
potential acquisitions. 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: Ashis Bhattacharya - Investor Relations - 952-828-8414
- abhattacharya@wgo.net
Media Contact: Sam Jefson - Public Relations Specialist -
641-585-6803 - sjefson@wgo.net
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