Winnebago Industries, Inc. (NYSE: WGO), a leading outdoor lifestyle
product manufacturer, today reported financial results for the
Company's Fiscal 2023 third quarter.
Third Quarter Fiscal 2023 ResultsRevenues for the Fiscal 2023
third quarter ended May 27, 2023, were $900.8 million, a
decrease of 38.2% compared to $1.5 billion for the Fiscal 2022
period, driven by lower unit sales related to RV retail market
conditions and higher discounts and allowances compared to prior
year, partially offset by carryover price increases. Gross profit
was $151.4 million, a decrease of 44.5% compared to $273.0 million
for the Fiscal 2022 period. Gross profit margin decreased 190 basis
points in the quarter to 16.8%, driven by deleverage and higher
discounts and allowances compared to prior year. Operating income
was $80.5 million for the quarter, a decrease of 54.5% compared to
$176.7 million for the third quarter of last year. Fiscal 2023
third quarter net income was $59.1 million, a decrease of 49.6%
compared to $117.2 million in the prior year quarter. Reported
earnings per diluted share was $1.71, compared to reported earnings
per diluted share of $3.57 in the same period last year. Adjusted
earnings per diluted share was $2.13, a decrease of 48.4% compared
to adjusted earnings per diluted share of $4.13 in the same period
last year. Consolidated Adjusted EBITDA was $96.4 million for the
quarter, a decrease of 49.7%, compared to $191.7 million last
year.
President and Chief Executive Officer Michael Happe commented,
“In the midst of challenging market conditions, our team continues
to successfully navigate a dynamic environment with a dual focus on
taking care of our customers and operating the business with
discipline, resulting in ongoing value for our shareholders. Our
diverse portfolio of premium brands across the outdoor recreation
industry continues to drive resiliency in our consolidated results,
as top-line declines in our RV segments were offset by robust
profitability in Towable RVs and continued growth in our Marine
businesses. The Barletta brand, in particular, remains a bright
spot in our portfolio, delivering strong market share gains in
aluminum pontoons. Overall, we benefited from our highly variable
cost structure and managed SG&A spending proactively,
delivering double digit adjusted EBITDA margin amid challenging RV
market conditions. During the quarter we also announced and closed
the strategic vertical technology acquisition of Lithionics
Battery, which will accelerate our innovation capabilities in
diverse battery solutions, advance our overall electrical supply
ecosystem and create opportunities for our RV and marine customers
to enjoy fully immersive, off-the-grid outdoor experiences. I want
to personally thank all of our Winnebago Industries team members
for their hard work and determination during the quarter, and for
continuing to reinforce and project our golden threads of quality,
innovation, and service.”
Towable RVRevenues for the Towable RV segment were $384.1
million for the third quarter, down 52.3% compared to $805.6
million in the prior year, primarily driven by a decline in unit
volume associated with retail market conditions and higher
discounts and allowances compared to prior year. Segment Adjusted
EBITDA was $53.8 million, down 54.3% compared to the prior year
period. Adjusted EBITDA margin of 14.0% decreased 60 basis points
compared to the prior year period, primarily from deleverage and
higher discounts and allowances compared to prior year, partially
offset by favorable warranty experience. Adjusted EBITDA margin was
up 250 basis points sequentially, as Towable RV segment
profitability continued to demonstrate resiliency during a period
of sales declines and significant margin pressure from deleverage.
Backlog decreased to $236.0 million, down 82.0% from the prior year
when dealers were focused on replenishing their inventories.
Motorhome RVRevenues for the Motorhome RV segment were $374.4
million for the third quarter, down 27.5% from the prior year. This
was primarily driven by a decline in unit volume and higher
discounts and allowances compared to prior year, partially offset
by price increases related to higher chassis costs. Segment
Adjusted EBITDA was $26.8 million, down 58.3% compared to the prior
year. Adjusted EBITDA margin of 7.2% decreased 530 basis points
compared to the prior year due to deleverage, higher discounts and
allowances, and productivity and operational efficiency challenges
that were primarily related to an ERP system implementation.
Backlog decreased to $800.4 million, down 65.0% from the prior
year, driven by normalizing levels of dealer inventories.
MarineRevenues for the Marine segment were $129.0 million for
the third quarter, up 1.9% due to carryover price increases. This
was partially offset by a decline in unit volume. Segment Adjusted
EBITDA was $17.3 million, down 12.5% compared to the prior year.
Adjusted EBITDA margin was 13.4%, down 230 basis points compared to
the prior year, primarily due to higher discounts and allowances
compared to prior year. Backlog for the Marine segment decreased to
$146.3 million, down 40.4% compared to the prior year period,
primarily due to normalizing levels of dealer inventories.
Balance Sheet and Cash FlowAs of May 27, 2023, the Company
had total outstanding debt of $591.7 million ($600.0 million of
debt, net of debt issuance costs of $8.3 million) and working
capital of $574.7 million. Cash flow from operations was $139.6
million in the third quarter of Fiscal 2023.
Quarterly Cash Dividend and Share RepurchaseOn May 17,
2023, the Company’s Board of Directors approved a quarterly cash
dividend of $0.27 per share payable on June 28, 2023, to
common stockholders of record at the close of business on
June 14, 2023. Winnebago Industries executed share repurchases
of $20 million during the third quarter.
Mr. Happe continued, “Looking ahead, we will continue to
actively manage production levels across our business to match
dealer appetite for our brands, ongoing seasonal retail conditions,
and our market share aspirations. We are entering our fourth and
final quarter of Fiscal 2023 with a strong balance sheet, having
completed multiple inorganic and organic investments in support of
future growth strategies and a sequentially improved inventory and
working capital position. We are closely tracking and adjusting to
market conditions, with a focus on maintaining solid profitability,
market competitiveness, and a preferred lot position for our
premium brands with our channel partners. Our $20 million of share
repurchases in the third quarter and regular quarterly dividend
payment of $0.27 (50% higher than prior year) underscores our
confidence in the long-term strength and trajectory of our
business. We are committed to investing in innovation, product
differentiation over the long-term, ongoing operational efficiency
enhancements, disciplined execution and strong cost management as
we continue to drive sustainable value creation for all of our
stakeholders.”
Reportable Segment Name ChangesIn the third quarter of Fiscal
2023, we changed the name of our “Towable” segment to “Towable RV”
and our “Motorhome” segment to “Motorhome RV”. These name changes
had no impact on the composition of our segments, or previously
reported results of operations, financial position, cash flows or
segment results.
Conference CallWinnebago Industries, Inc. will discuss Fiscal
2023 third quarter earnings results during a conference call
scheduled for 9:00 a.m. Central Time today. Members of the news
media, investors and the general public are invited to access a
live broadcast of the conference call via the Investor Relations
page of the Company's website at http://investor.wgo.net. The event
will be archived and available for replay for the next 90 days.
About Winnebago IndustriesWinnebago Industries, Inc. is a
leading North American manufacturer of outdoor lifestyle products
under the Winnebago, Grand Design, Chris-Craft, Newmar and Barletta
brands, which are used primarily in leisure travel and outdoor
recreation activities. The Company builds high-quality motorhomes,
travel trailers, fifth-wheel products, outboard and sterndrive
powerboats, pontoons, and commercial community outreach vehicles.
Committed to advancing sustainable innovation and leveraging
vertical integration in key component areas, 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 general economic
uncertainty in key markets and a worsening of domestic and global
economic conditions or low levels of economic growth; uncertainty
surrounding the COVID-19 pandemic; 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; risk
related to independent dealers; significant increase in repurchase
obligations; business or production disruptions; inadequate
inventory and distribution channel management; ability to retain
relationships with our suppliers and obtain components; increased
material and component costs, including availability and price of
fuel and other 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 trade
names; 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.
ContactsInvestors: Ray Posadas ir@winnebagoind.com
Media: Dan Sullivanmedia@winnebagoind.com
Winnebago Industries, Inc.Condensed
Consolidated Statements of Income(Unaudited and
subject to reclassification) |
|
|
Three Months Ended |
(in
millions, except percent and per share data) |
May 27, 2023 |
|
May 28, 2022 |
Net revenues |
$ |
900.8 |
|
100.0 |
% |
|
$ |
1,458.1 |
|
100.0 |
% |
Cost of goods sold |
|
749.4 |
|
83.2 |
% |
|
|
1,185.1 |
|
81.3 |
% |
Gross profit |
|
151.4 |
|
16.8 |
% |
|
|
273.0 |
|
18.7 |
% |
Selling, general, and
administrative expenses |
|
66.5 |
|
7.4 |
% |
|
|
88.3 |
|
6.1 |
% |
Amortization |
|
4.4 |
|
0.5 |
% |
|
|
8.0 |
|
0.5 |
% |
Total operating expenses |
|
70.9 |
|
7.9 |
% |
|
|
96.3 |
|
6.6 |
% |
Operating income |
|
80.5 |
|
8.9 |
% |
|
|
176.7 |
|
12.1 |
% |
Interest expense, net |
|
5.2 |
|
0.6 |
% |
|
|
10.5 |
|
0.7 |
% |
Non-operating loss |
|
0.2 |
|
— |
% |
|
|
11.7 |
|
0.8 |
% |
Income before income
taxes |
|
75.1 |
|
8.3 |
% |
|
|
154.5 |
|
10.6 |
% |
Provision for income
taxes |
|
16.0 |
|
1.8 |
% |
|
|
37.3 |
|
2.6 |
% |
Net income |
$ |
59.1 |
|
6.6 |
% |
|
$ |
117.2 |
|
8.0 |
% |
|
|
|
|
|
|
|
|
Earnings per common
share: |
|
|
|
|
|
|
|
Basic |
$ |
1.95 |
|
|
|
$ |
3.62 |
|
|
Diluted |
$ |
1.71 |
|
|
|
$ |
3.57 |
|
|
Weighted average common shares
outstanding: |
|
|
|
|
|
|
|
Basic |
|
30.4 |
|
|
|
|
32.4 |
|
|
Diluted |
|
35.4 |
|
|
|
|
32.9 |
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended |
(in
millions, except percent and per share data) |
May 27, 2023 |
|
May 28, 2022 |
Net revenues |
$ |
2,719.7 |
|
100.0 |
% |
|
$ |
3,778.6 |
|
100.0 |
% |
Cost of goods sold |
|
2,261.1 |
|
83.1 |
% |
|
|
3,059.6 |
|
81.0 |
% |
Gross profit |
|
458.6 |
|
16.9 |
% |
|
|
719.0 |
|
19.0 |
% |
Selling, general, and
administrative expenses |
|
203.4 |
|
7.5 |
% |
|
|
235.0 |
|
6.2 |
% |
Amortization |
|
12.0 |
|
0.4 |
% |
|
|
24.2 |
|
0.6 |
% |
Total operating expenses |
|
215.4 |
|
7.9 |
% |
|
|
259.2 |
|
6.9 |
% |
Operating income |
|
243.2 |
|
8.9 |
% |
|
|
459.8 |
|
12.2 |
% |
Interest expense, net |
|
16.4 |
|
0.6 |
% |
|
|
31.1 |
|
0.8 |
% |
Non-operating loss |
|
2.3 |
|
0.1 |
% |
|
|
24.5 |
|
0.6 |
% |
Income before income
taxes |
|
224.5 |
|
8.3 |
% |
|
|
404.2 |
|
10.7 |
% |
Provision for income
taxes |
|
52.4 |
|
1.9 |
% |
|
|
96.2 |
|
2.5 |
% |
Net income |
$ |
172.1 |
|
6.3 |
% |
|
$ |
308.0 |
|
8.2 |
% |
|
|
|
|
|
|
|
|
Earnings per common
share: |
|
|
|
|
|
|
|
Basic |
$ |
5.66 |
|
|
|
$ |
9.35 |
|
|
Diluted |
$ |
4.95 |
|
|
|
$ |
9.18 |
|
|
Weighted average common shares
outstanding: |
|
|
|
|
|
|
|
Basic |
|
30.4 |
|
|
|
|
32.9 |
|
|
Diluted |
|
35.5 |
|
|
|
|
33.6 |
|
|
Amounts in tables
are calculated based on unrounded numbers and therefore may not
recalculate using the rounded numbers provided. In addition,
percentages may not add in total due to rounding. |
Winnebago Industries, Inc.Condensed
Consolidated Balance Sheets(Unaudited and subject
to reclassification) |
|
|
|
|
(in
millions) |
May 27, 2023 |
|
August 27, 2022 |
Assets |
|
|
|
Current assets |
|
|
|
Cash and cash equivalents |
$ |
225.9 |
|
$ |
282.2 |
Receivables, net |
|
205.3 |
|
|
254.1 |
Inventories, net |
|
518.0 |
|
|
525.8 |
Prepaid expenses and other current assets |
|
22.6 |
|
|
31.7 |
Total current assets |
|
971.8 |
|
|
1,093.8 |
Property, plant, and equipment, net |
|
320.0 |
|
|
276.2 |
Goodwill |
|
514.5 |
|
|
484.2 |
Other intangible assets, net |
|
507.7 |
|
|
472.4 |
Investment in life insurance |
|
29.1 |
|
|
28.6 |
Operating lease assets |
|
42.1 |
|
|
41.1 |
Deferred income tax assets, net |
|
8.3 |
|
|
— |
Other long-term assets |
|
19.3 |
|
|
20.4 |
Total assets |
$ |
2,412.8 |
|
$ |
2,416.7 |
|
|
|
|
Liabilities and
Shareholders' Equity |
|
|
|
Current liabilities |
|
|
|
Accounts payable |
$ |
133.0 |
|
$ |
217.5 |
Income taxes payable |
|
1.3 |
|
|
0.7 |
Accrued expenses |
|
262.8 |
|
|
303.9 |
Total current liabilities |
|
397.1 |
|
|
522.1 |
Long-term debt, net |
|
591.7 |
|
|
545.9 |
Deferred income tax liabilities, net |
|
— |
|
|
6.1 |
Unrecognized tax benefits |
|
6.5 |
|
|
5.7 |
Long-term operating lease liabilities |
|
41.7 |
|
|
40.4 |
Deferred compensation benefits, net of current portion |
|
7.9 |
|
|
8.1 |
Other long-term liabilities |
|
6.6 |
|
|
25.4 |
Total liabilities |
|
1,051.5 |
|
|
1,153.7 |
Shareholders' equity |
|
1,361.3 |
|
|
1,263.0 |
Total liabilities and shareholders' equity |
$ |
2,412.8 |
|
$ |
2,416.7 |
Winnebago Industries, Inc.Condensed
Consolidated Statements of Cash Flows(Unaudited
and subject to reclassification) |
|
|
Nine Months Ended |
(in
millions) |
May 27, 2023 |
|
May 28, 2022 |
Operating activities |
|
|
|
Net income |
$ |
172.1 |
|
|
$ |
308.0 |
|
Adjustments to reconcile net
income to net cash provided by operating activities |
|
|
|
Depreciation |
|
20.9 |
|
|
|
17.0 |
|
Amortization |
|
12.0 |
|
|
|
24.2 |
|
Non-cash interest expense, net |
|
— |
|
|
|
11.2 |
|
Amortization of debt issuance costs |
|
2.3 |
|
|
|
1.8 |
|
Last in, first-out expense |
|
2.0 |
|
|
|
5.9 |
|
Stock-based compensation |
|
8.2 |
|
|
|
12.5 |
|
Deferred income taxes |
|
(3.6 |
) |
|
|
(4.3 |
) |
Contingent consideration fair value adjustment |
|
2.0 |
|
|
|
24.7 |
|
Payments of earnout liability above acquisition-date fair
value |
|
(13.3 |
) |
|
|
— |
|
Other, net |
|
0.3 |
|
|
|
2.3 |
|
Change in operating assets and
liabilities, net of assets and liabilities acquired |
|
|
|
Receivables, net |
|
49.8 |
|
|
|
(117.4 |
) |
Inventories, net |
|
15.8 |
|
|
|
(129.1 |
) |
Prepaid expenses and other assets |
|
12.6 |
|
|
|
10.3 |
|
Accounts payable |
|
(81.3 |
) |
|
|
41.6 |
|
Income taxes and unrecognized tax benefits |
|
3.2 |
|
|
|
4.0 |
|
Accrued expenses and other liabilities |
|
(46.6 |
) |
|
|
32.5 |
|
Net cash provided by
operating activities |
|
156.4 |
|
|
|
245.2 |
|
|
|
|
|
Investing
activities |
|
|
|
Purchases of property, plant, and equipment |
|
(68.0 |
) |
|
|
(63.2 |
) |
Acquisition of business, net of cash acquired |
|
(87.5 |
) |
|
|
(228.2 |
) |
Proceeds from the sale of property, plant, and equipment |
|
0.3 |
|
|
|
0.1 |
|
Other, net |
|
0.8 |
|
|
|
— |
|
Net cash used in
investing activities |
|
(154.4 |
) |
|
|
(291.3 |
) |
|
|
|
|
Financing
activities |
|
|
|
Borrowings on long-term debt |
|
2,840.2 |
|
|
|
3,422.5 |
|
Repayments on long-term debt |
|
(2,840.2 |
) |
|
|
(3,422.5 |
) |
Payments of cash dividends |
|
(25.1 |
) |
|
|
(18.1 |
) |
Payments for repurchases of common stock |
|
(24.9 |
) |
|
|
(134.2 |
) |
Payments of earnout liability up to acquisition-date fair
value |
|
(8.7 |
) |
|
|
— |
|
Other, net |
|
0.4 |
|
|
|
1.9 |
|
Net cash used in
financing activities |
|
(58.3 |
) |
|
|
(150.4 |
) |
|
|
|
|
Net decrease in cash and cash
equivalents |
|
(56.3 |
) |
|
|
(196.5 |
) |
Cash and cash equivalents at
beginning of period |
|
282.2 |
|
|
|
434.6 |
|
Cash and cash equivalents at
end of period |
$ |
225.9 |
|
|
$ |
238.1 |
|
|
|
|
|
Supplemental
Disclosures |
|
|
|
Income taxes paid, net |
$ |
54.9 |
|
|
$ |
97.7 |
|
Interest paid |
|
14.6 |
|
|
|
14.3 |
|
|
|
|
|
Non-cash investing and
financing activities |
|
|
|
Issuance of common stock for acquisition of business |
$ |
— |
|
|
$ |
22.0 |
|
Issuance of common stock for settlement of earnout liability |
|
— |
|
|
|
13.2 |
|
Capital expenditures in accounts payable |
|
2.8 |
|
|
|
4.7 |
|
Dividends declared not yet paid |
|
8.9 |
|
|
|
6.2 |
|
Increase in lease assets in exchange for lease liabilities: |
|
|
|
Operating leases |
|
3.9 |
|
|
|
17.2 |
|
Finance leases |
|
0.9 |
|
|
|
2.5 |
|
Winnebago Industries, Inc.Supplemental
Information by Reportable Segment - Towable RV(in
millions, except unit data)(Unaudited and subject
to reclassification) |
|
|
Three Months Ended |
|
May 27, 2023 |
|
% of Revenues(1) |
|
May 28, 2022 |
|
% of Revenues(1) |
|
$ Change(1) |
|
% Change(1) |
Net revenues |
$ |
384.1 |
|
|
|
$ |
805.6 |
|
|
|
$ |
(421.5 |
) |
|
(52.3)% |
Adjusted EBITDA |
|
53.8 |
|
14.0% |
|
|
117.8 |
|
14.6% |
|
|
(64.0 |
) |
|
(54.3)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
Unit deliveries |
May 27, 2023 |
|
Product Mix(2) |
|
May 28, 2022 |
|
Product Mix(2) |
|
Unit Change |
|
% Change |
Travel trailer |
|
6,376 |
|
73.2% |
|
|
12,031 |
|
68.1% |
|
|
(5,655 |
) |
|
(47.0)% |
Fifth wheel |
|
2,339 |
|
26.8% |
|
|
5,644 |
|
31.9% |
|
|
(3,305 |
) |
|
(58.6)% |
Total Towable RV |
|
8,715 |
|
100.0% |
|
|
17,675 |
|
100.0% |
|
|
(8,960 |
) |
|
(50.7)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended |
|
May 27, 2023 |
|
% of Revenues(1) |
|
May 28, 2022 |
|
% of Revenues(1) |
|
$ Change(1) |
|
% Change(1) |
Net revenues |
$ |
1,073.9 |
|
|
|
$ |
2,103.2 |
|
|
|
$ |
(1,029.3 |
) |
|
(48.9)% |
Adjusted EBITDA |
|
129.4 |
|
12.0% |
|
|
330.4 |
|
15.7% |
|
|
(201.1 |
) |
|
(60.9)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended |
Unit deliveries |
May 27, 2023 |
|
Product Mix(2) |
|
May 28, 2022 |
|
Product Mix(2) |
|
Unit Change |
|
% Change |
Travel trailer |
|
16,049 |
|
68.8% |
|
|
33,938 |
|
68.7% |
|
|
(17,889 |
) |
|
(52.7)% |
Fifth wheel |
|
7,293 |
|
31.2% |
|
|
15,462 |
|
31.3% |
|
|
(8,169 |
) |
|
(52.8)% |
Total Towable RV |
|
23,342 |
|
100.0% |
|
|
49,400 |
|
100.0% |
|
|
(26,058 |
) |
|
(52.7)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
May 27, 2023 |
|
|
|
May 28, 2022 |
|
|
|
Change(1) |
|
% Change(1) |
Backlog(3) |
|
|
|
|
|
|
|
|
|
|
|
Units |
|
5,297 |
|
|
|
|
31,606 |
|
|
|
|
(26,309 |
) |
|
(83.2)% |
Dollars |
$ |
236.0 |
|
|
|
$ |
1,312.9 |
|
|
|
$ |
(1,076.9 |
) |
|
(82.0)% |
Dealer
Inventory |
|
|
|
|
|
|
|
|
|
|
|
Units |
|
20,218 |
|
|
|
|
25,230 |
|
|
|
|
(5,012 |
) |
|
(19.9)% |
(1) Amounts are calculated based on unrounded numbers
and therefore may not recalculate using the rounded numbers
provided. (2) Percentages may not add due to
rounding differences. (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 generally
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
RV(in millions, except unit
data)(Unaudited and subject to
reclassification) |
|
|
Three Months Ended |
|
May 27, 2023 |
|
% of Revenues(1) |
|
May 28, 2022 |
|
% of Revenues(1) |
|
$ Change(1) |
|
% Change(1) |
Net revenues |
$ |
374.4 |
|
|
|
$ |
516.3 |
|
|
|
$ |
(142.0 |
) |
|
(27.5)% |
Adjusted EBITDA |
|
26.8 |
|
7.2% |
|
|
64.4 |
|
12.5% |
|
|
(37.5 |
) |
|
(58.3)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
Unit deliveries |
May 27, 2023 |
|
Product Mix(2) |
|
May 28, 2022 |
|
Product Mix(2) |
|
Unit Change |
|
% Change |
Class A |
|
524 |
|
24.6% |
|
|
672 |
|
21.0% |
|
|
(148 |
) |
|
(22.0)% |
Class B |
|
1,018 |
|
47.8% |
|
|
1,801 |
|
56.3% |
|
|
(783 |
) |
|
(43.5)% |
Class C |
|
589 |
|
27.6% |
|
|
728 |
|
22.7% |
|
|
(139 |
) |
|
(19.1)% |
Total Motorhome RV |
|
2,131 |
|
100.0% |
|
|
3,201 |
|
100.0% |
|
|
(1,070 |
) |
|
(33.4)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended |
|
May 27, 2023 |
|
% of Revenues(1) |
|
May 28, 2022 |
|
% of Revenues(1) |
|
$ Change(1) |
|
% Change(1) |
Net revenues |
$ |
1,242.4 |
|
|
|
$ |
1,355.4 |
|
|
|
$ |
(113.0 |
) |
|
(8.3)% |
Adjusted EBITDA |
|
119.6 |
|
9.6% |
|
|
160.6 |
|
11.9% |
|
|
(41.0 |
) |
|
(25.5)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended |
Unit deliveries |
May 27, 2023 |
|
Product Mix(2) |
|
May 28, 2022 |
|
Product Mix(2) |
|
Unit Change |
|
% Change |
Class A |
|
1,734 |
|
25.5% |
|
|
2,004 |
|
22.9% |
|
|
(270 |
) |
|
(13.5)% |
Class B |
|
3,233 |
|
47.5% |
|
|
4,889 |
|
55.8% |
|
|
(1,656 |
) |
|
(33.9)% |
Class C |
|
1,837 |
|
27.0% |
|
|
1,874 |
|
21.4% |
|
|
(37 |
) |
|
(2.0)% |
Total Motorhome RV |
|
6,804 |
|
100.0% |
|
|
8,767 |
|
100.0% |
|
|
(1,963 |
) |
|
(22.4)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
May 27, 2023 |
|
|
|
May 28, 2022 |
|
|
|
Change(1) |
|
% Change(1) |
Backlog(3) |
|
|
|
|
|
|
|
|
|
|
|
Units |
|
4,595 |
|
|
|
|
15,180 |
|
|
|
|
(10,585 |
) |
|
(69.7)% |
Dollars |
$ |
800.4 |
|
|
|
$ |
2,285.2 |
|
|
|
$ |
(1,484.8 |
) |
|
(65.0)% |
Dealer
Inventory |
|
|
|
|
|
|
|
|
|
|
|
Units |
|
4,544 |
|
|
|
|
3,008 |
|
|
|
|
1,536 |
|
|
51.1% |
(1) Amounts are calculated based on unrounded numbers
and therefore may not recalculate using the rounded numbers
provided. (2) Percentages may not add due to
rounding differences. (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 generally
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 - Marine(in
millions, except unit data)(Unaudited and subject
to reclassification) |
|
|
Three Months Ended |
|
May 27, 2023 |
|
% of Revenues(1) |
|
May 28, 2022 |
|
% of Revenues(1) |
|
$ Change(1) |
|
% Change(1) |
Net revenues |
$ |
129.0 |
|
|
|
$ |
126.5 |
|
|
|
$ |
2.4 |
|
|
1.9% |
Adjusted EBITDA |
|
17.3 |
|
13.4% |
|
|
19.8 |
|
15.7% |
|
|
(2.5 |
) |
|
(12.5)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
Unit deliveries |
May 27, 2023 |
|
|
|
May 28, 2022 |
|
|
|
Unit Change |
|
% Change |
Boats |
|
1,586 |
|
|
|
|
1,655 |
|
|
|
|
(69 |
) |
|
(4.2)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended |
|
May 27, 2023 |
|
% of Revenues(1) |
|
May 28, 2022 |
|
% of Revenues(1) |
|
$ Change(1) |
|
% Change(1) |
Net revenues |
$ |
373.3 |
|
|
|
$ |
303.2 |
|
|
|
$ |
70.1 |
|
|
23.1% |
Adjusted EBITDA |
|
50.2 |
|
13.5% |
|
|
43.3 |
|
14.3% |
|
|
6.9 |
|
|
15.9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended |
Unit deliveries |
May 27, 2023 |
|
|
|
May 28, 2022 |
|
|
|
Unit Change |
|
% Change |
Boats |
|
4,552 |
|
|
|
|
4,112 |
|
|
|
|
440 |
|
|
10.7% |
|
|
|
|
|
|
|
|
|
|
|
|
|
May 27, 2023 |
|
|
|
May 28, 2022 |
|
|
|
Change(1) |
|
% Change(1) |
Backlog(2) |
|
|
|
|
|
|
|
|
|
|
|
Units |
|
1,348 |
|
|
|
|
2,491 |
|
|
|
|
(1,143 |
) |
|
(45.9)% |
Dollars |
$ |
146.3 |
|
|
|
$ |
245.4 |
|
|
|
$ |
(99.2 |
) |
|
(40.4)% |
Dealer
Inventory(3) |
|
|
|
|
|
|
|
|
|
|
|
Units |
|
4,109 |
|
|
|
|
2,454 |
|
|
|
|
1,655 |
|
|
67.4% |
(1) Amounts are calculated based on unrounded numbers
and therefore may not recalculate using the rounded numbers
provided. (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 generally 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. (3) Due to the
nature of the Marine industry, this amount includes a higher
proportion of retail sold units than our other segments.
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 |
|
Nine Months Ended |
|
May 27, 2023 |
|
May 28, 2022 |
|
May 27, 2023 |
|
May 28, 2022 |
Diluted earnings per share(1) |
$ |
1.71 |
|
|
$ |
3.57 |
|
|
$ |
4.95 |
|
|
$ |
9.18 |
|
Acquisition-related
costs(2) |
|
0.11 |
|
|
|
0.02 |
|
|
|
0.16 |
|
|
|
0.14 |
|
Litigation reserves(2) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.12 |
|
Amortization(2) |
|
0.13 |
|
|
|
0.24 |
|
|
|
0.34 |
|
|
|
0.72 |
|
Non-cash interest
expense(2,3) |
|
— |
|
|
|
0.12 |
|
|
|
— |
|
|
|
0.33 |
|
Contingent consideration fair
value adjustment(2) |
|
— |
|
|
|
0.36 |
|
|
|
0.06 |
|
|
|
0.74 |
|
Tax impact of
adjustments(4) |
|
(0.06 |
) |
|
|
(0.18 |
) |
|
|
(0.13 |
) |
|
|
(0.50 |
) |
Impact of convertible notes -
other(5) |
|
0.25 |
|
|
|
— |
|
|
|
0.71 |
|
|
|
0.04 |
|
Adjusted diluted earnings per share(6) |
$ |
2.13 |
|
|
$ |
4.13 |
|
|
$ |
6.08 |
|
|
$ |
10.77 |
|
(1) In Fiscal 2022 and Fiscal 2023, respectively, we
utilized the treasury stock method and the if-converted method for
calculating the dilutive impact of our convertible notes in the
calculation of diluted earnings per share.(2) Represents
a pre-tax adjustment.(3) Non-cash interest expense
associated with the convertible notes issued related to our
acquisition of Newmar. In Fiscal 2023, due to the adoption of
Accounting Standards Update (ASU) 2020-06, non-cash interest
expense will no longer be recognized.(4) Income tax
charge calculated using the statutory tax rate for the U.S. of
24.1% and 24.2% for Fiscal 2023 and Fiscal 2022,
respectively.(5) In Fiscal 2022, this represents the
dilution of convertible notes which is economically offset by a
call spread overlay that was put in place upon issuance. In Fiscal
2023, as a result of the adoption of ASU 2020-06, the convertible
notes are assumed to be converted into common stock at the
beginning of the reporting period, and interest expense is
excluded, both of which impact the calculation of reported diluted
earnings per share. (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 |
|
Nine Months Ended |
(in
millions) |
May 27, 2023 |
|
May 28, 2022 |
|
May 27, 2023 |
|
May 28, 2022 |
Net income |
$ |
59.1 |
|
$ |
117.2 |
|
|
$ |
172.1 |
|
$ |
308.0 |
|
Interest expense, net |
|
5.2 |
|
|
10.5 |
|
|
|
16.4 |
|
|
31.1 |
|
Provision for income
taxes |
|
16.0 |
|
|
37.3 |
|
|
|
52.4 |
|
|
96.2 |
|
Depreciation |
|
7.6 |
|
|
6.3 |
|
|
|
20.9 |
|
|
17.0 |
|
Amortization |
|
4.4 |
|
|
8.0 |
|
|
|
12.0 |
|
|
24.2 |
|
EBITDA |
|
92.3 |
|
|
179.3 |
|
|
|
273.8 |
|
|
476.5 |
|
Acquisition-related costs |
|
3.9 |
|
|
0.7 |
|
|
|
5.6 |
|
|
4.6 |
|
Litigation reserves |
|
— |
|
|
— |
|
|
|
— |
|
|
4.0 |
|
Contingent consideration fair
value adjustment |
|
— |
|
|
11.8 |
|
|
|
2.0 |
|
|
24.7 |
|
Non-operating loss
(income) |
|
0.2 |
|
|
(0.1 |
) |
|
|
0.4 |
|
|
(0.1 |
) |
Adjusted EBITDA |
$ |
96.4 |
|
$ |
191.7 |
|
|
$ |
281.8 |
|
$ |
509.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 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.
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-backed revolving 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.
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