Winnebago Industries, Inc. (NYSE: WGO), a leading outdoor lifestyle
product manufacturer, today reported financial results for the
fiscal 2024 second quarter ended February 24, 2024.
Second Quarter Fiscal 2024 Financial
Summary
- Revenues of $703.6 million
- Gross profit of $105.3 million, representing 15.0% gross
margin
- Net loss of $12.7 million, or $0.43 per share, includes charge
of $32.7 million, or $1.12 per share, attributable to the
refinancing of our 2025 convertible senior notes; adjusted diluted
earnings per share of $0.93
- Adjusted EBITDA of $49.8 million, representing 7.1% adjusted
EBITDA margin
CEO Commentary“Winnebago Industries performed
in line with our expectations for the quarter, navigating the
effects of ongoing softness in the RV and marine markets,” said
President and Chief Executive Officer Michael Happe. “As
anticipated, wholesale shipments were constrained in the quarter,
as dealers continued to closely manage inventory levels amid a
higher interest rate environment and seasonal demand trends.
Despite these macroeconomic challenges, we continue to demonstrate
resilient profitability and an unwavering commitment to operational
discipline that is reflected in the Company’s diversified portfolio
of premium brands, investments in new products and technologies,
and healthy balance sheet.”
“Purposeful innovation remains a core driver of our growth
strategy, delivering customer-centric design and thoughtful,
affordable technology to delight customers,” Happe continued. “In
recent months we have introduced new models and features across our
motorized and towable RV portfolios, enabling Winnebago, Grand
Design RV and Newmar to further enhance our customers’ ability to
be great outdoors. On the marine side, Chris-Craft recently
launched a special 150th anniversary edition of its iconic Launch
27, while our Barletta brand continues to expand its product reach
as the industry’s fastest-growing pontoon business.”
Second Quarter Fiscal 2024 ResultsRevenues were
$703.6 million, a decrease of 18.8% compared to $866.7 million for
the comparable fiscal 2023 period, driven by lower unit sales
related to market conditions and unfavorable product mix.
Gross profit was $105.3 million, a decrease of 28.3% compared to
$146.8 million for the fiscal 2023 period. Gross profit margin
decreased 190 basis points in the quarter to 15.0% as a result of
deleverage and higher warranty experience compared to prior
year.
Selling, general and administrative expenses were $64.2 million,
a decrease of 3.0% compared to $66.2 million in the second quarter
of last year, driven by lower incentive-based compensation.
Operating income was $35.4 million, a decrease of 53.8% compared
to $76.8 million for the second quarter of last year.
Net loss was $12.7 million, compared to net income of $52.8
million in the prior year quarter. Reported net loss per share was
$0.43, compared to reported earnings per diluted share of $1.52 in
the same period last year. Results for the second quarter of fiscal
2024 included a charge of $32.7 million, or $1.12 per share,
attributable to the loss on repurchase of a significant portion of
our 2025 convertible senior notes. Adjusted earnings per diluted
share was $0.93, a decrease of 50.5% compared to adjusted earnings
per diluted share of $1.88 in the same period last year.
Consolidated Adjusted EBITDA was $49.8 million, a decrease of
43.7%, compared to $88.4 million last year.
Second Quarter Fiscal 2024 Segments Summary
Towable RV
|
Three Months Ended |
|
($, in millions) |
February 24, 2024 |
|
February 25, 2023 |
|
|
Change(1) |
|
Net revenues |
$ |
284.7 |
|
|
$ |
342.5 |
|
|
|
(16.9) |
% |
|
Adjusted EBITDA |
$ |
26.8 |
|
|
$ |
39.3 |
|
|
|
(31.8) |
% |
|
Adjusted EBITDA Margin |
|
9.4 |
% |
|
|
11.5 |
% |
|
|
(210) bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($, in millions) |
February 24, 2024 |
|
February 25, 2023 |
|
Change(1) |
|
Backlog |
$ |
222.3 |
|
|
$ |
278.2 |
|
|
|
(20.1) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Amounts are calculated based on unrounded numbers
and therefore may not recalculate using the rounded numbers
provided. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Revenues for the Towable RV segment were down compared to the
prior year, primarily driven by a decline in unit volume related to
market conditions and a reduction in average selling price per unit
related to product mix and targeted price reductions, partially
offset by lower discounts and allowances.
- Segment Adjusted EBITDA margin decreased compared to the prior
year, primarily due to deleverage and higher warranty experience
compared to prior year, partially offset by lower discounts and
allowances.
- Backlog decreased compared to the prior year due to current
market conditions and a cautious dealer network.
Motorhome RV
|
Three Months Ended |
|
($, in millions) |
February 24, 2024 |
|
February 25, 2023 |
|
|
Change(1) |
|
Net revenues |
$ |
338.4 |
|
|
$ |
403.8 |
|
|
|
(16.2) |
% |
|
Adjusted EBITDA |
$ |
26.0 |
|
|
$ |
42.5 |
|
|
|
(38.9) |
% |
|
Adjusted EBITDA Margin |
|
7.7 |
% |
|
|
10.5 |
% |
|
|
(280) bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($, in millions) |
February 24, 2024 |
|
February 25, 2023 |
|
Change(1) |
|
Backlog |
$ |
452.2 |
|
|
$ |
872.7 |
|
|
|
(48.2) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Amounts are calculated based on unrounded numbers
and therefore may not recalculate using the rounded numbers
provided. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Revenues for the Motorhome RV segment were down from the prior
year, due to a decline in unit volume related to market conditions,
higher levels of discounts and allowances and unfavorable product
mix, partially offset by price increases related to higher
motorized chassis costs.
- Segment Adjusted EBITDA margin decreased compared to the prior
year, primarily due to deleverage, higher warranty experience,
higher discounts and allowances, and operational efficiency
challenges, partially offset by cost containment efforts.
- Backlog decreased from the prior year due to current market
conditions and a cautious dealer network.
Marine
|
Three Months Ended |
|
($, in millions) |
February 24, 2024 |
|
February 25, 2023 |
|
|
Change(1) |
|
|
Net revenues |
$ |
69.8 |
|
|
$ |
112.9 |
|
|
|
(38.2) |
% |
|
Adjusted EBITDA |
$ |
4.4 |
|
|
$ |
14.4 |
|
|
|
(69.7) |
% |
|
Adjusted EBITDA Margin |
|
6.3 |
% |
|
|
12.8 |
% |
|
|
(650) bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($, in millions) |
February 24, 2024 |
|
February 25, 2023 |
|
Change(1) |
|
Backlog |
$ |
102.9 |
|
|
$ |
238.5 |
|
|
|
(56.9) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Amounts are calculated based on unrounded numbers
and therefore may not recalculate using the rounded numbers
provided. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Revenues for the Marine segment were down from the prior year,
primarily driven by a decline in unit volume related to market
conditions, unfavorable product mix and higher discounts and
allowances.
- Segment Adjusted EBITDA decreased compared to the prior year,
primarily due to deleverage and higher discounts and allowances,
partially offset by lower incentive-based compensation.
- Backlog for the Marine segment was down from the prior-year
period due to a cautious dealer network.
Balance Sheet and Cash FlowAs of
February 24, 2024, the Company had total outstanding debt of
$694.8 million ($709.3 million of debt, net of debt issuance costs
of $14.5 million) and working capital of $649.0 million. Cash flow
provided by operations was $25.2 million in the Fiscal 2024 second
quarter. During the quarter, Winnebago Industries completed a $350
million offering of convertible senior notes for refinancing 2025
maturities. The successful refinancing of its convertible senior
notes underscores the Company’s strong operating performance and
credit profile, and provides financial flexibility for future
growth.
Future Mid-Cycle Organic Growth
TargetsWinnebago Industries today announced future
mid-cycle organic growth targets. These targets leverage the
strength of the Company’s operating model, product innovation and
business diversification, as well as the long-term secular growth
trends driving consumer demand across the outdoor recreation
markets. Market assumptions underlying the financial targets
include North American RV retail volume at a mid-cycle, fiscal year
range of 425,000 to 450,000 units and U.S. aluminum pontoon retail
volume at a mid-cycle, fiscal year range of 60,000 to 63,000 units.
The Company expects:
- Net revenues of $4.5 billion to $5.0 billion
- Gross margin of 18.0% to 18.5%
- Adjusted EBITDA margin of 11.0% to 11.5%(2)
- Free cash flow of $325 million to $375 million(2,3)
- North American RV market share of more than 13%
- U.S. aluminum pontoon market share of 13%
- Organic non-RV revenue mix representing 15% to 20% of total
revenue
“Interest in the RV and boating lifestyles remains strong,
creating a secular tailwind that supports the anticipated long-term
growth of our portfolio of exceptional brands and aligns with our
vision to be the trusted leader in premium outdoor recreation,”
Happe said. “As we enter the second half of fiscal 2024, we are
encouraged by data indicating that RV inventory levels are
returning to an equilibrium stage, though we remain aggressive in
managing production output and overall costs in a targeted manner.
Looking ahead, we will continue to rely on our flexible,
high-variable cost structure to drive improved operating leverage,
while capitalizing on innovation, product line expansion, channel
partnerships, and operational excellence to achieve our future
mid-cycle organic growth targets.”
Q2 FY 2024 Conference CallWinnebago Industries,
Inc. will discuss second quarter fiscal 2024 earnings results and
the Company’s mid-cycle organic growth targets 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 and view the accompanying
presentation slides 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; availability
of financing for RV and marine dealers; competition and new product
introductions by competitors; ability to innovate and commercialize
new products; ability to manage our inventory to meet demand; risk
related to cyclicality and seasonality of our business; risk
related to independent dealers; risk related to dealer
consolidation or the loss of a significant dealer; significant
increase in repurchase obligations; ability to retain relationships
with our suppliers and obtain components; business or production
disruptions; inadequate management of dealer inventory levels;
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; increased attention to environmental,
social, and governance (“ESG”) matters, and our ability to meet our
commitments; impairment of goodwill and trade names; and risks
related to our 2025 Convertible Notes, 2030 Convertible Notes 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.Footnotes to
News Release |
|
Footnotes:
(1) |
Data reported by Statistical Surveys, Inc., representing trailing
twelve-month pontoon market share through January 2024. This data
is continuously updated and often impacted by delays in reporting
by various states. |
(2) |
The Company has not reconciled
the forward-looking Adjusted EBITDA margin range and Free Cash Flow
range to the most directly comparable forward-looking GAAP measures
because this cannot be done without unreasonable effort due to the
lack of predictability regarding the various reconciling items such
as provision for income taxes and depreciation and
amortization. |
(3) |
Assumes a consistent tax rate and
regulatory environment. |
|
Winnebago Industries, Inc.Condensed
Consolidated Statements of Income(Unaudited and
subject to reclassification) |
|
|
|
|
Three Months Ended |
|
(in millions, except percent and per share data) |
February 24, 2024 |
|
February 25, 2023 |
|
Net revenues |
$ |
703.6 |
|
|
|
100.0 |
% |
|
$ |
866.7 |
|
|
|
100.0 |
% |
|
Cost of goods sold |
|
598.3 |
|
|
|
85.0 |
% |
|
|
719.9 |
|
|
|
83.1 |
% |
|
Gross profit |
|
105.3 |
|
|
|
15.0 |
% |
|
|
146.8 |
|
|
|
16.9 |
% |
|
Selling, general, and administrative expenses |
|
64.2 |
|
|
|
9.1 |
% |
|
|
66.2 |
|
|
|
7.6 |
% |
|
Amortization |
|
5.7 |
|
|
|
0.8 |
% |
|
|
3.8 |
|
|
|
0.4 |
% |
|
Total operating expenses |
|
69.9 |
|
|
|
9.9 |
% |
|
|
70.0 |
|
|
|
8.1 |
% |
|
Operating income |
|
35.4 |
|
|
|
5.0 |
% |
|
|
76.8 |
|
|
|
8.9 |
% |
|
Interest expense, net |
|
5.3 |
|
|
|
0.8 |
% |
|
|
5.3 |
|
|
|
0.6 |
% |
|
Loss on note repurchase |
|
32.7 |
|
|
|
4.7 |
% |
|
|
— |
|
|
|
— |
% |
|
Non-operating loss |
|
3.0 |
|
|
|
0.4 |
% |
|
|
1.8 |
|
|
|
0.2 |
% |
|
(Loss) income before income taxes |
|
(5.6 |
) |
|
|
(0.8 |
)% |
|
|
69.7 |
|
|
|
8.0 |
% |
|
Provision for income taxes |
|
7.1 |
|
|
|
1.0 |
% |
|
|
16.9 |
|
|
|
2.0 |
% |
|
Net (loss) income |
$ |
(12.7 |
) |
|
|
(1.8 |
)% |
|
$ |
52.8 |
|
|
|
6.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) earnings per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
(0.43 |
) |
|
|
|
|
|
$ |
1.73 |
|
|
|
|
|
|
Diluted |
$ |
(0.43 |
) |
|
|
|
|
|
$ |
1.52 |
|
|
|
|
|
|
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
29.2 |
|
|
|
|
|
|
|
30.5 |
|
|
|
|
|
|
Diluted |
|
29.2 |
|
|
|
|
|
|
|
35.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended |
|
(in millions, except percent and per share data) |
February 24, 2024 |
|
February 25, 2023 |
|
Net revenues |
$ |
1,466.6 |
|
|
|
100.0 |
% |
|
$ |
1,818.9 |
|
|
|
100.0 |
% |
|
Cost of goods sold |
|
1,245.5 |
|
|
|
84.9 |
% |
|
|
1,511.7 |
|
|
|
83.1 |
% |
|
Gross profit |
|
221.1 |
|
|
|
15.1 |
% |
|
|
307.2 |
|
|
|
16.9 |
% |
|
Selling, general, and administrative expenses |
|
135.3 |
|
|
|
9.2 |
% |
|
|
136.9 |
|
|
|
7.5 |
% |
|
Amortization |
|
11.3 |
|
|
|
0.8 |
% |
|
|
7.6 |
|
|
|
0.4 |
% |
|
Total operating expenses |
|
146.6 |
|
|
|
10.0 |
% |
|
|
144.5 |
|
|
|
7.9 |
% |
|
Operating income |
|
74.5 |
|
|
|
5.1 |
% |
|
|
162.7 |
|
|
|
8.9 |
% |
|
Interest expense, net |
|
9.4 |
|
|
|
0.6 |
% |
|
|
11.2 |
|
|
|
0.6 |
% |
|
Loss on note repurchase |
|
32.7 |
|
|
|
2.2 |
% |
|
|
— |
|
|
|
— |
% |
|
Non-operating loss |
|
3.6 |
|
|
|
0.2 |
% |
|
|
2.1 |
|
|
|
0.1 |
% |
|
Income before income taxes |
|
28.8 |
|
|
|
2.0 |
% |
|
|
149.4 |
|
|
|
8.2 |
% |
|
Provision for income taxes |
|
15.7 |
|
|
|
1.1 |
% |
|
|
36.4 |
|
|
|
2.0 |
% |
|
Net income |
$ |
13.1 |
|
|
|
0.9 |
% |
|
$ |
113.0 |
|
|
|
6.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.45 |
|
|
|
|
|
|
$ |
3.71 |
|
|
|
|
|
|
Diluted |
$ |
0.44 |
|
|
|
|
|
|
$ |
3.25 |
|
|
|
|
|
|
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
29.4 |
|
|
|
|
|
|
|
30.5 |
|
|
|
|
|
|
Diluted |
|
29.7 |
|
|
|
|
|
|
|
35.5 |
|
|
|
|
|
|
|
|
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) |
February 24, 2024 |
|
August 26, 2023 |
|
Assets |
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
Cash and cash equivalents |
$ |
265.7 |
|
$ |
309.9 |
|
Receivables, net |
|
234.4 |
|
|
178.5 |
|
Inventories, net |
|
465.8 |
|
|
470.6 |
|
Prepaid expenses and other current assets |
|
36.3 |
|
|
37.7 |
|
Total current assets |
|
1,002.2 |
|
|
996.7 |
|
Property, plant, and equipment, net |
|
333.7 |
|
|
327.3 |
|
Goodwill |
|
514.5 |
|
|
514.5 |
|
Other intangible assets, net |
|
490.7 |
|
|
502.0 |
|
Investment in life insurance |
|
30.1 |
|
|
29.3 |
|
Operating lease assets |
|
39.9 |
|
|
42.6 |
|
Deferred income tax assets, net |
|
3.2 |
|
|
— |
|
Other long-term assets |
|
19.6 |
|
|
20.0 |
|
Total assets |
$ |
2,433.9 |
|
$ |
2,432.4 |
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity |
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
Accounts payable |
$ |
138.0 |
|
$ |
146.9 |
|
Accrued expenses |
|
215.2 |
|
|
249.1 |
|
Total current liabilities |
|
353.2 |
|
|
396.0 |
|
Long-term debt, net |
|
694.8 |
|
|
592.4 |
|
Deferred income tax liabilities, net |
|
— |
|
|
11.7 |
|
Unrecognized tax benefits |
|
6.6 |
|
|
6.1 |
|
Long-term operating lease liabilities |
|
39.3 |
|
|
42.0 |
|
Deferred compensation benefits, net of current portion |
|
7.3 |
|
|
7.9 |
|
Other long-term liabilities |
|
8.1 |
|
|
8.2 |
|
Total liabilities |
|
1,109.3 |
|
|
1,064.3 |
|
Shareholders' equity |
|
1,324.6 |
|
|
1,368.1 |
|
Total liabilities and shareholders' equity |
$ |
2,433.9 |
|
$ |
2,432.4 |
|
|
Winnebago Industries, Inc.Condensed
Consolidated Statements of Cash Flows(Unaudited
and subject to reclassification) |
|
|
|
|
Six Months Ended |
|
(in millions) |
February 24, 2024 |
|
February 25, 2023 |
|
Operating activities |
|
|
|
|
|
|
|
|
Net income |
$ |
13.1 |
|
|
$ |
113.0 |
|
|
Adjustments to reconcile net income to net cash provided by
operating activities |
|
|
|
|
|
|
|
|
Depreciation |
|
16.6 |
|
|
|
13.3 |
|
|
Amortization |
|
11.3 |
|
|
|
7.6 |
|
|
Amortization of debt issuance costs |
|
1.6 |
|
|
|
1.5 |
|
|
Last in, first-out expense |
|
0.1 |
|
|
|
1.7 |
|
|
Stock-based compensation |
|
8.1 |
|
|
|
6.5 |
|
|
Deferred income taxes |
|
1.9 |
|
|
|
(1.5 |
) |
|
Loss on note repurchase |
|
32.7 |
|
|
|
— |
|
|
Contingent consideration fair value adjustment |
|
1.1 |
|
|
|
2.0 |
|
|
Other, net |
|
3.0 |
|
|
|
— |
|
|
Change in operating assets and liabilities, net of assets and
liabilities acquired |
|
|
|
|
|
|
|
|
Receivables, net |
|
(55.9 |
) |
|
|
(27.2 |
) |
|
Inventories, net |
|
4.3 |
|
|
|
(16.3 |
) |
|
Prepaid expenses and other assets |
|
1.3 |
|
|
|
0.4 |
|
|
Accounts payable |
|
(8.6 |
) |
|
|
(50.1 |
) |
|
Income taxes and unrecognized tax benefits |
|
3.5 |
|
|
|
(5.4 |
) |
|
Accrued expenses and other liabilities |
|
(30.3 |
) |
|
|
(28.7 |
) |
|
Net cash provided by operating activities |
|
3.8 |
|
|
|
16.8 |
|
|
|
|
|
|
|
|
|
|
|
Investing activities |
|
|
|
|
|
|
|
|
Purchases of property, plant, and equipment |
|
(22.8 |
) |
|
|
(49.4 |
) |
|
Other, net |
|
(2.7 |
) |
|
|
0.8 |
|
|
Net cash used in investing activities |
|
(25.5 |
) |
|
|
(48.6 |
) |
|
|
|
|
|
|
|
|
|
|
Financing activities |
|
|
|
|
|
|
|
|
Borrowings on long-term debt |
|
1,805.7 |
|
|
|
1,808.5 |
|
|
Repayments on long-term debt |
|
(1,749.5 |
) |
|
|
(1,808.5 |
) |
|
Payments for convertible note bond hedge |
|
(68.7 |
) |
|
|
— |
|
|
Proceeds from issuance of convertible note warrant |
|
31.3 |
|
|
|
— |
|
|
Proceeds from partial unwind of convertible note bond hedge |
|
55.8 |
|
|
|
— |
|
|
Payments for partial unwind of convertible note warrant |
|
(25.3 |
) |
|
|
— |
|
|
Payments of cash dividends |
|
(18.7 |
) |
|
|
(16.8 |
) |
|
Payments for repurchases of common stock |
|
(44.2 |
) |
|
|
(4.9 |
) |
|
Payments of debt issuance costs |
|
(9.7 |
) |
|
|
— |
|
|
Other, net |
|
0.8 |
|
|
|
0.6 |
|
|
Net cash used in financing activities |
|
(22.5 |
) |
|
|
(21.1 |
) |
|
|
|
|
|
|
|
|
|
|
Net decrease in cash and cash equivalents |
|
(44.2 |
) |
|
|
(52.9 |
) |
|
Cash and cash equivalents at beginning of period |
|
309.9 |
|
|
|
282.2 |
|
|
Cash and cash equivalents at end of period |
$ |
265.7 |
|
|
$ |
229.3 |
|
|
|
|
|
|
|
|
|
|
|
Supplemental Disclosures |
|
|
|
|
|
|
|
|
Income taxes paid, net |
$ |
10.8 |
|
|
$ |
42.0 |
|
|
Interest paid |
|
13.2 |
|
|
|
12.1 |
|
|
|
|
|
|
|
|
|
|
|
Non-cash investing and
financing activities |
|
|
|
|
|
|
|
|
Capital expenditures in accounts payable |
$ |
2.7 |
|
|
$ |
4.5 |
|
|
Accrued debt issuance costs |
$ |
0.5 |
|
|
$ |
— |
|
|
Increase in lease assets in exchange for lease liabilities: |
|
|
|
|
|
|
|
|
Operating leases |
|
— |
|
|
|
3.5 |
|
|
Finance leases |
|
0.7 |
|
|
|
— |
|
|
|
|
Winnebago Industries, Inc.Supplemental
Information by Reportable Segment - Towable RV(in
millions, except unit data)(Unaudited and subject
to reclassification) |
|
|
|
|
|
Three Months Ended |
|
|
February 24, 2024 |
|
% of Revenues(1) |
|
February 25, 2023 |
|
% of Revenues(1) |
|
$ Change(1) |
|
% Change(1) |
|
Net revenues |
$ |
284.7 |
|
|
|
|
|
|
$ |
342.5 |
|
|
|
|
|
|
$ |
(57.8 |
) |
|
|
(16.9 |
)% |
|
Adjusted EBITDA |
|
26.8 |
|
|
|
9.4 |
% |
|
|
39.3 |
|
|
|
11.5 |
% |
|
|
(12.5 |
) |
|
|
(31.8 |
)% |
|
|
|
|
|
Three Months Ended |
|
Unit deliveries |
February 24, 2024 |
|
Product Mix(2) |
|
February 25, 2023 |
|
Product Mix(2) |
|
Unit Change |
|
% Change |
|
Travel trailer |
|
4,486 |
|
|
|
66.5 |
% |
|
|
5,023 |
|
|
|
67.5 |
% |
|
|
(537 |
) |
|
|
(10.7 |
)% |
|
Fifth wheel |
|
2,261 |
|
|
|
33.5 |
% |
|
|
2,413 |
|
|
|
32.5 |
% |
|
|
(152 |
) |
|
|
(6.3 |
)% |
|
Total Towable RV |
|
6,747 |
|
|
|
100.0 |
% |
|
|
7,436 |
|
|
|
100.0 |
% |
|
|
(689 |
) |
|
|
(9.3 |
)% |
|
|
|
|
|
Six Months Ended |
|
|
February 24, 2024 |
|
% of Revenues(1) |
|
February 25, 2023 |
|
% of Revenues(1) |
|
$ Change(1) |
|
% Change(1) |
|
Net revenues |
$ |
615.5 |
|
|
|
|
|
|
$ |
689.8 |
|
|
|
|
|
|
$ |
(74.3 |
) |
|
|
(10.8 |
)% |
|
Adjusted EBITDA |
|
59.9 |
|
|
|
9.7 |
% |
|
|
75.6 |
|
|
|
11.0 |
% |
|
|
(15.7 |
) |
|
|
(20.8 |
)% |
|
|
|
|
|
Six Months Ended |
|
Unit deliveries |
February 24, 2024 |
|
Product Mix(2) |
|
February 25, 2023 |
|
Product Mix(2) |
|
Unit Change |
|
% Change |
|
Travel trailer |
|
9,867 |
|
|
|
67.6 |
% |
|
|
9,673 |
|
|
|
66.1 |
% |
|
|
194 |
|
|
|
2.0 |
% |
|
Fifth wheel |
|
4,726 |
|
|
|
32.4 |
% |
|
|
4,954 |
|
|
|
33.9 |
% |
|
|
(228 |
) |
|
|
(4.6 |
)% |
|
Total Towable RV |
|
14,593 |
|
|
|
100.0 |
% |
|
|
14,627 |
|
|
|
100.0 |
% |
|
|
(34 |
) |
|
|
(0.2 |
)% |
|
|
|
|
|
February 24, 2024 |
|
|
|
February 25, 2023 |
|
|
|
Change(1) |
|
|
% Change(1) |
|
Backlog(3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Units |
|
5,273 |
|
|
|
|
|
|
|
5,841 |
|
|
|
|
|
|
|
(568 |
) |
|
|
(9.7 |
)% |
|
Dollars |
$ |
222.3 |
|
|
|
|
|
|
$ |
278.2 |
|
|
|
|
|
|
$ |
(55.9 |
) |
|
|
(20.1 |
)% |
|
Dealer Inventory |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Units |
|
18,106 |
|
|
|
|
|
|
|
22,354 |
|
|
|
|
|
|
|
(4,248 |
) |
|
|
(19.0 |
)% |
|
|
|
(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 |
|
|
February 24, 2024 |
|
% of Revenues(1) |
|
February 25, 2023 |
|
% of Revenues(1) |
|
$ Change(1) |
|
% Change(1) |
|
Net revenues |
$ |
338.4 |
|
|
|
|
|
|
$ |
403.8 |
|
|
|
|
|
|
$ |
(65.5 |
) |
|
|
(16.2 |
)% |
|
Adjusted EBITDA |
|
26.0 |
|
|
|
7.7 |
% |
|
|
42.5 |
|
|
|
10.5 |
% |
|
|
(16.6 |
) |
|
|
(38.9 |
)% |
|
|
|
|
|
Three Months Ended |
|
Unit deliveries |
February 24, 2024 |
|
Product Mix(2) |
|
February 25, 2023 |
|
Product Mix(2) |
|
Unit Change |
|
% Change |
|
Class A |
|
371 |
|
|
|
20.5 |
% |
|
|
517 |
|
|
|
23.9 |
% |
|
|
(146 |
) |
|
|
(28.2 |
)% |
|
Class B |
|
648 |
|
|
|
35.8 |
% |
|
|
893 |
|
|
|
41.2 |
% |
|
|
(245 |
) |
|
|
(27.4 |
)% |
|
Class C |
|
792 |
|
|
|
43.7 |
% |
|
|
755 |
|
|
|
34.9 |
% |
|
|
37 |
|
|
|
4.9 |
% |
|
Total Motorhome RV |
|
1,811 |
|
|
|
100.0 |
% |
|
|
2,165 |
|
|
|
100.0 |
% |
|
|
(354 |
) |
|
|
(16.4 |
)% |
|
|
|
|
|
Six Months Ended |
|
|
February 24, 2024 |
|
% of Revenues(1) |
|
February 25, 2023 |
|
% of Revenues(1) |
|
$ Change(1) |
|
% Change(1) |
|
Net revenues |
$ |
672.8 |
|
|
|
|
|
|
$ |
868.0 |
|
|
|
|
|
|
$ |
(195.3 |
) |
|
|
(22.5 |
)% |
|
Adjusted EBITDA |
|
47.3 |
|
|
|
7.0 |
% |
|
|
92.8 |
|
|
|
10.7 |
% |
|
|
(45.5 |
) |
|
|
(49.0 |
)% |
|
|
|
|
|
Six Months Ended |
|
Unit deliveries |
February 24, 2024 |
|
Product Mix(2) |
|
February 25, 2023 |
|
Product Mix(2) |
|
Unit Change |
|
% Change |
|
Class A |
|
852 |
|
|
|
24.1 |
% |
|
|
1,210 |
|
|
|
25.9 |
% |
|
|
(358 |
) |
|
|
(29.6 |
)% |
|
Class B |
|
1,339 |
|
|
|
37.9 |
% |
|
|
2,215 |
|
|
|
47.4 |
% |
|
|
(876 |
) |
|
|
(39.5 |
)% |
|
Class C |
|
1,341 |
|
|
|
38.0 |
% |
|
|
1,248 |
|
|
|
26.7 |
% |
|
|
93 |
|
|
|
7.5 |
% |
|
Total Motorhome RV |
|
3,532 |
|
|
|
100.0 |
% |
|
|
4,673 |
|
|
|
100.0 |
% |
|
|
(1,141 |
) |
|
|
(24.4 |
)% |
|
|
|
|
|
February 24, 2024 |
|
|
|
February 25, 2023 |
|
|
|
Change(1) |
|
% Change(1) |
|
Backlog(3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Units |
|
2,582 |
|
|
|
|
|
|
|
5,341 |
|
|
|
|
|
|
|
(2,759 |
) |
|
|
(51.7 |
)% |
|
Dollars |
$ |
452.2 |
|
|
|
|
|
|
$ |
872.7 |
|
|
|
|
|
|
$ |
(420.5 |
) |
|
|
(48.2 |
)% |
|
Dealer Inventory |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Units |
|
4,844 |
|
|
|
|
|
|
|
4,800 |
|
|
|
|
|
|
|
44 |
|
|
|
0.9 |
% |
|
|
|
(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 - Marine(in
millions, except unit data)(Unaudited and subject
to reclassification) |
|
|
|
|
Three Months Ended |
|
|
February 24, 2024 |
|
% of Revenues(1) |
|
February 25, 2023 |
|
% of Revenues(1) |
|
$ Change(1) |
|
% Change(1) |
|
Net revenues |
$ |
69.8 |
|
|
|
|
|
|
$ |
112.9 |
|
|
|
|
|
|
$ |
(43.2 |
) |
|
|
(38.2 |
)% |
|
Adjusted EBITDA |
|
4.4 |
|
|
|
6.3 |
% |
|
|
14.4 |
|
|
|
12.8 |
% |
|
|
(10.1 |
) |
|
|
(69.7 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Unit deliveries |
February 24, 2024 |
|
|
|
February 25, 2023 |
|
|
|
Unit Change |
|
% Change |
|
Boats |
|
862 |
|
|
|
|
|
|
|
1,266 |
|
|
|
|
|
|
|
(404 |
) |
|
|
(31.9 |
)% |
|
|
|
|
|
Six Months Ended |
|
|
February 24, 2024 |
|
% of Revenues(1) |
|
February 25, 2023 |
|
% of Revenues(1) |
|
$ Change(1) |
|
% Change(1) |
|
Net revenues |
$ |
157.1 |
|
|
|
|
|
|
$ |
244.3 |
|
|
|
|
|
|
$ |
(87.2 |
) |
|
|
(35.7 |
)% |
|
Adjusted EBITDA |
|
11.6 |
|
|
|
7.4 |
% |
|
|
32.9 |
|
|
|
13.5 |
% |
|
|
(21.3 |
) |
|
|
(64.8 |
)% |
|
|
|
|
|
Six Months Ended |
|
Unit deliveries |
February 24, 2024 |
|
|
|
February 25, 2023 |
|
|
|
Unit Change |
|
% Change |
|
Boats |
|
1,980 |
|
|
|
|
|
|
|
2,966 |
|
|
|
|
|
|
|
(986 |
) |
|
|
(33.2 |
)% |
|
|
|
|
|
February 24, 2024 |
|
|
|
February 25, 2023 |
|
|
|
Change(1) |
|
% Change(1) |
|
Backlog(2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Units |
|
1,194 |
|
|
|
|
|
|
|
2,511 |
|
|
|
|
|
|
|
(1,317 |
) |
|
|
(52.4 |
)% |
|
Dollars |
$ |
102.9 |
|
|
|
|
|
|
$ |
238.5 |
|
|
|
|
|
|
$ |
(135.6 |
) |
|
|
(56.9 |
)% |
|
Dealer Inventory(3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Units |
|
4,095 |
|
|
|
|
|
|
|
4,016 |
|
|
|
|
|
|
|
79 |
|
|
|
2.0 |
% |
|
|
|
(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 |
|
Six Months Ended |
|
|
February 24, 2024 |
|
February 25, 2023 |
|
February 24, 2024 |
|
February 25, 2023 |
|
Diluted (loss) earnings per share |
$ |
(0.43 |
) |
|
$ |
1.52 |
|
|
$ |
0.44 |
|
|
$ |
3.25 |
|
|
Acquisition-related costs(1) |
|
0.01 |
|
|
|
0.03 |
|
|
|
0.05 |
|
|
|
0.05 |
|
|
Amortization(1) |
|
0.19 |
|
|
|
0.11 |
|
|
|
0.38 |
|
|
|
0.21 |
|
|
Change in fair value of note receivable(1) |
|
0.10 |
|
|
|
— |
|
|
|
0.10 |
|
|
|
— |
|
|
Contingent consideration fair value adjustment(1) |
|
0.01 |
|
|
|
0.04 |
|
|
|
0.04 |
|
|
|
0.06 |
|
|
Tax impact of adjustments(2) |
|
(0.07 |
) |
|
|
(0.04 |
) |
|
|
(0.13 |
) |
|
|
(0.08 |
) |
|
Impact of call spread overlay(3) |
|
— |
|
|
|
0.22 |
|
|
|
— |
|
|
|
0.46 |
|
|
Loss on note repurchase |
|
1.12 |
|
|
|
— |
|
|
|
1.10 |
|
|
|
— |
|
|
Adjusted diluted earnings per share(4) |
$ |
0.93 |
|
|
$ |
1.88 |
|
|
$ |
1.98 |
|
|
$ |
3.95 |
|
|
|
|
(1) Represents a pre-tax adjustment. |
|
(2) Income tax charge calculated using the statutory tax
rate for the U.S. of 23.0% and 24.1% for Fiscal 2024 and Fiscal
2023, respectively. |
|
(3) Represents the impact of a call spread overlay that
was put in place upon issuance of the convertible notes and which
economically offsets dilution risk. |
|
(4) Per share numbers may not foot due to rounding. |
|
|
|
The following table reconciles net income to consolidated EBITDA
and Adjusted EBITDA:
|
Three Months Ended |
|
Six Months Ended |
|
(in millions) |
February 24, 2024 |
|
February 25, 2023 |
|
February 24, 2024 |
|
February 25, 2023 |
|
Net (loss) income |
$ |
(12.7 |
) |
|
$ |
52.8 |
|
|
$ |
13.1 |
|
|
$ |
113.0 |
|
|
Interest expense, net |
|
5.3 |
|
|
|
5.3 |
|
|
|
9.4 |
|
|
|
11.2 |
|
|
Provision for income taxes |
|
7.1 |
|
|
|
16.9 |
|
|
|
15.7 |
|
|
|
36.4 |
|
|
Depreciation |
|
8.5 |
|
|
|
6.7 |
|
|
|
16.6 |
|
|
|
13.3 |
|
|
Amortization |
|
5.7 |
|
|
|
3.8 |
|
|
|
11.3 |
|
|
|
7.6 |
|
|
EBITDA |
|
13.9 |
|
|
|
85.5 |
|
|
|
66.1 |
|
|
|
181.5 |
|
|
Acquisition-related costs |
|
0.2 |
|
|
|
1.1 |
|
|
|
1.5 |
|
|
|
1.7 |
|
|
Change in fair value of note receivable |
|
3.0 |
|
|
|
— |
|
|
|
3.0 |
|
|
|
— |
|
|
Contingent consideration fair value adjustment |
|
0.3 |
|
|
|
1.6 |
|
|
|
1.1 |
|
|
|
2.0 |
|
|
Loss on note repurchase |
|
32.7 |
|
|
|
— |
|
|
|
32.7 |
|
|
|
— |
|
|
Non-operating (income) loss |
|
(0.3 |
) |
|
|
0.2 |
|
|
|
(0.5 |
) |
|
|
0.2 |
|
|
Adjusted EBITDA |
$ |
49.8 |
|
|
$ |
88.4 |
|
|
$ |
103.9 |
|
|
$ |
185.4 |
|
|
|
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 (loss) earnings per share adjusted for
after-tax items that impact the comparability of our results from
period to period. EBITDA is defined as net (loss) income before
interest expense, provision for income taxes, and depreciation and
amortization expense. Adjusted EBITDA is defined as net (loss)
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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