Winnebago Industries, Inc. (NYSE: WGO), a leading outdoor lifestyle
product manufacturer, today reported financial results for the
Company's fiscal 2024 third quarter ended May 25, 2024.
Third Quarter Fiscal 2024 Financial Summary
- Revenues of $786.0 million
- Gross profit of $118.2 million, representing 15.0% gross
margin
- Diluted earnings per share of $0.96; adjusted diluted earnings
per share of $1.13
- Adjusted EBITDA of $58.0 million, representing 7.4% adjusted
EBITDA margin
- Cash and cash equivalents of $318.1 million at quarter-end, up
2.6% from year-end fiscal 2023
CEO Commentary“While outdoor industry market
conditions remain challenged given inconsistent retail patterns and
sustained dealer discipline relative to field inventory levels, we
are generally pleased with the resiliency of our portfolio, as our
teams balance the pursuit of long-term share, profitability and
customer satisfaction across our premium brands,” said Michael
Happe, President and Chief Executive Officer. “Driven by our
Towable RV and Marine segments, we delivered sequential
consolidated margin growth in the third quarter. Notwithstanding
difficult retail headwinds in the Motorhome segment, our Towable RV
business generated higher revenue versus the same period a year ago
and our Barletta pontoon retail share grew to double digits for the
trailing three- and six-month periods through April. We are also
pleased to have returned more than $29 million to investors this
quarter through share repurchases and dividends, while maintaining
investments in future growth initiatives and managing a healthy
balance sheet.”
“The combination of affordability and innovation remains a focal
point of product development at Winnebago Industries – valued
differentiation on respected brands our consumers can trust,” Happe
said. “Recent introductions of economical travel trailers from our
Grand Design and Winnebago brands, plus continued market
penetration with the opening price Aria line within our Barletta
business are evidence of this focus. We are also particularly
excited about the upcoming market release in our fourth quarter of
the Grand Design Lineage motorhome product as well as the Winnebago
Connect intelligent control system being introduced on the
Winnebago Navion line. Both strategies open new growth
opportunities for our organization.”
Third Quarter Fiscal 2024 ResultsRevenues were
$786.0 million, a decrease of 12.7% compared to $900.8 million in
the third quarter of last year, driven by product mix and lower
volume related to market conditions.
Gross profit was $118.2 million, a decrease of 22.0% compared to
$151.4 million in the third quarter of last year. Gross profit
margin decreased 180 basis points in the quarter to 15.0% as a
result of deleverage, operational efficiency challenges, and higher
warranty expense due to a favorable prior year trend, partially
offset by cost containment efforts.
Selling, general and administrative expenses were $69.1 million,
an increase of 3.7% compared to $66.5 million in the third quarter
of last year, driven by strategic investments in engineering,
digital asset development and increased data and information
technology capabilities.
Operating income was $43.5 million, a decrease of 46.0% compared
to $80.5 million in the third quarter of last year.
Net income was $29.0 million, compared to net income of $59.1
million in the third quarter of last year. Reported earnings per
diluted share was $0.96, compared to reported earnings per diluted
share of $1.71 in the same period last year. Adjusted earnings per
diluted share was $1.13, a decrease of 46.9% compared to adjusted
earnings per diluted share of $2.13 in the third quarter of last
year.
Consolidated Adjusted EBITDA was $58.0 million, a decrease of
39.8%, compared to $96.4 million last year.
“We have made strong progress during the fiscal year to reduce
aging RV field inventory in a fiscally responsible manner; our
teams continue to work closely with our dealer partners to monitor
the complexion of their inventory and match production and
shipments with retail demand,” Happe said. “This discipline extends
to our Marine segment as well, where we have particularly
emphasized dealer inventory health and aggressively positioned
ourselves well for the upcoming model year 2025 rollout. Overall,
while the challenges of today require constant diligence to
navigate, our Company and brands are stronger than ever before and
with ongoing investments in product, people, systems, and
capabilities like digital connectivity we are well situated to grow
profitably as the cycle turns more positive in the future.”
Third Quarter Fiscal 2024 Segments Summary
Towable RV
|
Three Months Ended |
($, in
millions) |
May 25, 2024 |
|
May 27, 2023 |
|
Change(1) |
Net revenues |
$ |
386.3 |
|
|
$ |
384.1 |
|
|
0.6 |
% |
Adjusted EBITDA |
$ |
41.9 |
|
|
$ |
53.8 |
|
|
(22.0 |
)% |
Adjusted EBITDA Margin |
|
10.9 |
% |
|
|
14.0 |
% |
|
(310) bps |
($, in
millions) |
May 25, 2024 |
|
May 27, 2023 |
|
Change(1) |
|
Backlog |
$ |
153.1 |
|
|
$ |
236.0 |
|
|
(35.1 |
)% |
(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 up compared to the
prior year, primarily driven by an increase in unit volume,
partially offset by a reduction in average selling price per unit
related to product mix.
- Segment Adjusted EBITDA margin decreased compared to the prior
year, primarily due to operational efficiency challenges, partially
offset by lower discounts and allowances. In addition, results for
the third quarter of fiscal 2023 benefited from a favorable
warranty expense trend, which did not recur in the third quarter of
fiscal 2024.
- Backlog decreased due to current market conditions and a
cautious dealer network.
Motorhome RV
|
Three Months Ended |
|
($, in
millions) |
May 25, 2024 |
|
May 27, 2023 |
|
Change(1) |
|
Net revenues |
$ |
299.0 |
|
|
$ |
374.4 |
|
|
(20.1 |
)% |
Adjusted EBITDA |
$ |
13.4 |
|
|
$ |
26.8 |
|
|
(50.2 |
)% |
Adjusted EBITDA Margin |
|
4.5 |
% |
|
|
7.2 |
% |
|
(270) bps |
|
($, in
millions) |
May 25, 2024 |
|
May 27, 2023 |
|
Change(1) |
|
Backlog |
$ |
354.9 |
|
|
$ |
800.4 |
|
|
(55.7 |
)% |
(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
and higher levels of discounts and allowances, 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 and operational efficiency
challenges, partially offset by cost containment efforts.
- Backlog decreased due to current market conditions and a
cautious dealer network.
Marine
|
Three Months Ended |
|
($, in
millions) |
May 25, 2024 |
|
May 27, 2023 |
|
Change(1) |
|
Net revenues |
$ |
87.9 |
|
|
$ |
129.0 |
|
|
(31.8 |
)% |
Adjusted EBITDA |
$ |
8.5 |
|
|
$ |
17.3 |
|
|
(50.9 |
)% |
Adjusted EBITDA Margin |
|
9.7 |
% |
|
|
13.4 |
% |
|
(370) bps |
|
($, in
millions) |
May 25, 2024 |
|
May 27, 2023 |
|
Change(1) |
|
Backlog |
$ |
62.0 |
|
|
$ |
146.3 |
|
|
(57.6 |
)% |
(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 and product mix.
- Segment Adjusted EBITDA decreased compared to the prior year,
due to deleverage, partially offset by cost containment
efforts.
- Backlog decreased primarily driven by a cautious dealer
network.
Balance Sheet and Cash FlowAs of May 25,
2024, cash and cash equivalents totaled $318.1 million. The Company
had total outstanding debt of $695.4 million ($709.3 million of
debt, net of debt issuance costs of $13.9 million) and working
capital of $581.9 million. Cash flow provided by operations was
$99.4 million in the fiscal 2024 third quarter.
Quarterly Cash Dividend and Share RepurchaseOn
May 15, 2024, the Company’s Board of Directors approved a
quarterly cash dividend of $0.31 per share payable on June 26,
2024, to common stockholders of record at the close of business on
June 12, 2024. Winnebago Industries executed share repurchases
of $20 million during the third quarter.
Q3 FY 2024 Conference CallWinnebago Industries,
Inc. will discuss third quarter fiscal 2024 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 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 three- and
six-month U.S. aluminum pontoon market share through April 2024.
This data is continuously updated and often impacted by delays in
reporting by various states. |
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 25, 2024 |
|
May 27, 2023 |
Net revenues |
$ |
786.0 |
|
100.0 |
% |
|
$ |
900.8 |
|
100.0 |
% |
Cost of goods sold |
|
667.8 |
|
85.0 |
% |
|
|
749.4 |
|
83.2 |
% |
Gross profit |
|
118.2 |
|
15.0 |
% |
|
|
151.4 |
|
16.8 |
% |
Selling, general, and
administrative expenses |
|
69.1 |
|
8.8 |
% |
|
|
66.5 |
|
7.4 |
% |
Amortization |
|
5.6 |
|
0.7 |
% |
|
|
4.4 |
|
0.5 |
% |
Total operating expenses |
|
74.7 |
|
9.5 |
% |
|
|
70.9 |
|
7.9 |
% |
Operating income |
|
43.5 |
|
5.5 |
% |
|
|
80.5 |
|
8.9 |
% |
Interest expense, net |
|
5.8 |
|
0.7 |
% |
|
|
5.2 |
|
0.6 |
% |
Non-operating loss |
|
2.2 |
|
0.3 |
% |
|
|
0.2 |
|
— |
% |
Income before income
taxes |
|
35.5 |
|
4.5 |
% |
|
|
75.1 |
|
8.3 |
% |
Provision for income
taxes |
|
6.5 |
|
0.8 |
% |
|
|
16.0 |
|
1.8 |
% |
Net income |
$ |
29.0 |
|
3.7 |
% |
|
$ |
59.1 |
|
6.6 |
% |
|
|
|
|
|
|
|
|
Earnings per common
share: |
|
|
|
|
|
|
|
Basic |
$ |
0.99 |
|
|
|
$ |
1.95 |
|
|
Diluted |
$ |
0.96 |
|
|
|
$ |
1.71 |
|
|
Weighted average common shares
outstanding: |
|
|
|
|
|
|
|
Basic |
|
29.2 |
|
|
|
|
30.4 |
|
|
Diluted |
|
30.4 |
|
|
|
|
35.4 |
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended |
(in
millions, except percent and per share data) |
May 25, 2024 |
|
May 27, 2023 |
Net revenues |
$ |
2,252.6 |
|
100.0 |
% |
|
$ |
2,719.7 |
|
100.0 |
% |
Cost of goods sold |
|
1,913.3 |
|
84.9 |
% |
|
|
2,261.1 |
|
83.1 |
% |
Gross profit |
|
339.3 |
|
15.1 |
% |
|
|
458.6 |
|
16.9 |
% |
Selling, general, and
administrative expenses |
|
204.4 |
|
9.1 |
% |
|
|
203.4 |
|
7.5 |
% |
Amortization |
|
16.9 |
|
0.7 |
% |
|
|
12.0 |
|
0.4 |
% |
Total operating expenses |
|
221.3 |
|
9.8 |
% |
|
|
215.4 |
|
7.9 |
% |
Operating income |
|
118.0 |
|
5.2 |
% |
|
|
243.2 |
|
8.9 |
% |
Interest expense, net |
|
15.2 |
|
0.7 |
% |
|
|
16.4 |
|
0.6 |
% |
Loss on note repurchase |
|
32.7 |
|
1.5 |
% |
|
|
— |
|
— |
% |
Non-operating loss |
|
5.8 |
|
0.3 |
% |
|
|
2.3 |
|
0.1 |
% |
Income before income
taxes |
|
64.3 |
|
2.9 |
% |
|
|
224.5 |
|
8.3 |
% |
Provision for income
taxes |
|
22.2 |
|
1.0 |
% |
|
|
52.4 |
|
1.9 |
% |
Net income |
$ |
42.1 |
|
1.9 |
% |
|
$ |
172.1 |
|
6.3 |
% |
|
|
|
|
|
|
|
|
Earnings per common
share: |
|
|
|
|
|
|
|
Basic |
$ |
1.43 |
|
|
|
$ |
5.66 |
|
|
Diluted |
$ |
1.40 |
|
|
|
$ |
4.95 |
|
|
Weighted average common shares
outstanding: |
|
|
|
|
|
|
|
Basic |
|
29.3 |
|
|
|
|
30.4 |
|
|
Diluted |
|
30.6 |
|
|
|
|
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) |
May 25, 2024 |
|
August 26, 2023 |
Assets |
|
|
|
Current assets |
|
|
|
Cash and cash equivalents |
$ |
318.1 |
|
$ |
309.9 |
|
Receivables, net |
|
199.3 |
|
|
178.5 |
|
Inventories, net |
|
441.5 |
|
|
470.6 |
|
Prepaid expenses and other current assets |
|
24.8 |
|
|
37.7 |
|
Total current assets |
|
983.7 |
|
|
996.7 |
|
Property, plant, and equipment, net |
|
335.5 |
|
|
327.3 |
|
Goodwill |
|
514.5 |
|
|
514.5 |
|
Other intangible assets, net |
|
485.1 |
|
|
502.0 |
|
Investment in life insurance |
|
30.2 |
|
|
29.3 |
|
Operating lease assets |
|
48.1 |
|
|
42.6 |
|
Deferred income tax assets, net |
|
8.9 |
|
|
— |
|
Other long-term assets |
|
19.0 |
|
|
20.0 |
|
Total assets |
$ |
2,425.0 |
|
$ |
2,432.4 |
|
|
|
|
|
Liabilities and
Shareholders' Equity |
|
|
|
Current liabilities |
|
|
|
Accounts payable |
$ |
134.0 |
|
$ |
146.9 |
|
Income taxes payable |
|
3.1 |
|
|
— |
|
Current maturities of long-term debt, net |
|
59.0 |
|
|
— |
|
Accrued expenses |
|
205.7 |
|
|
249.1 |
|
Total current liabilities |
|
401.8 |
|
|
396.0 |
|
Long-term debt, net |
|
636.4 |
|
|
592.4 |
|
Deferred income tax liabilities, net |
|
— |
|
|
11.7 |
|
Unrecognized tax benefits |
|
6.0 |
|
|
6.1 |
|
Long-term operating lease liabilities |
|
47.3 |
|
|
42.0 |
|
Deferred compensation benefits, net of current portion |
|
6.9 |
|
|
7.9 |
|
Other long-term liabilities |
|
8.2 |
|
|
8.2 |
|
Total liabilities |
|
1,106.6 |
|
|
1,064.3 |
|
Shareholders' equity |
|
1,318.4 |
|
|
1,368.1 |
|
Total liabilities and shareholders' equity |
$ |
2,425.0 |
|
$ |
2,432.4 |
|
Winnebago Industries, Inc.Condensed
Consolidated Statements of Cash Flows(Unaudited
and subject to reclassification) |
|
Nine Months Ended |
(in
millions) |
May 25, 2024 |
|
May 27, 2023 |
Operating activities |
|
|
|
Net income |
$ |
42.1 |
|
|
$ |
172.1 |
|
Adjustments to reconcile net income to net cash provided by
operating activities |
|
|
|
Depreciation |
|
25.5 |
|
|
|
20.9 |
|
Amortization |
|
16.9 |
|
|
|
12.0 |
|
Amortization of debt issuance costs |
|
2.4 |
|
|
|
2.3 |
|
Last in, first-out expense |
|
(0.1 |
) |
|
|
2.0 |
|
Stock-based compensation |
|
11.5 |
|
|
|
8.2 |
|
Deferred income taxes |
|
(3.8 |
) |
|
|
(3.6 |
) |
Loss on note repurchase |
|
32.7 |
|
|
|
— |
|
Contingent consideration fair value adjustment |
|
1.1 |
|
|
|
2.0 |
|
Payments of earnout liability above acquisition-date fair
value |
|
(14.7 |
) |
|
|
(13.3 |
) |
Other, net |
|
3.1 |
|
|
|
0.3 |
|
Change in operating assets and
liabilities, net of assets and liabilities acquired |
|
|
|
Receivables, net |
|
(20.8 |
) |
|
|
49.8 |
|
Inventories, net |
|
28.7 |
|
|
|
15.8 |
|
Prepaid expenses and other assets |
|
6.8 |
|
|
|
12.6 |
|
Accounts payable |
|
(12.1 |
) |
|
|
(81.3 |
) |
Income taxes and unrecognized tax benefits |
|
14.3 |
|
|
|
3.2 |
|
Accrued expenses and other liabilities |
|
(30.4 |
) |
|
|
(46.6 |
) |
Net cash provided by
operating activities |
|
103.2 |
|
|
|
156.4 |
|
|
|
|
|
Investing
activities |
|
|
|
Purchases of property, plant, and equipment |
|
(33.8 |
) |
|
|
(68.0 |
) |
Acquisition of business, net of cash acquired |
|
— |
|
|
|
(87.5 |
) |
Proceeds from the sale of property, plant, and equipment |
|
0.3 |
|
|
|
0.3 |
|
Other, net |
|
(2.9 |
) |
|
|
0.8 |
|
Net cash used in
investing activities |
|
(36.4 |
) |
|
|
(154.4 |
) |
|
|
|
|
Financing
activities |
|
|
|
Borrowings on long-term debt |
|
2,652.2 |
|
|
|
2,840.2 |
|
Repayments on long-term debt |
|
(2,596.0 |
) |
|
|
(2,840.2 |
) |
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 |
|
(27.8 |
) |
|
|
(25.1 |
) |
Payments for repurchases of common stock |
|
(64.3 |
) |
|
|
(24.9 |
) |
Payments of debt issuance costs |
|
(10.4 |
) |
|
|
— |
|
Payments of earnout liability up to acquisition-date fair
value |
|
(5.8 |
) |
|
|
(8.7 |
) |
Other, net |
|
0.4 |
|
|
|
0.4 |
|
Net cash used in
financing activities |
|
(58.6 |
) |
|
|
(58.3 |
) |
|
|
|
|
Net increase (decrease) in
cash and cash equivalents |
|
8.2 |
|
|
|
(56.3 |
) |
Cash and cash equivalents at
beginning of period |
|
309.9 |
|
|
|
282.2 |
|
Cash and cash equivalents at
end of period |
$ |
318.1 |
|
|
$ |
225.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
Disclosures |
|
|
|
Income taxes paid, net |
$ |
12.6 |
|
|
$ |
54.9 |
|
Interest paid |
|
13.9 |
|
|
|
14.6 |
|
|
|
|
|
Non-cash investing and
financing activities |
|
|
|
Capital expenditures in accounts payable |
$ |
2.2 |
|
|
$ |
2.8 |
|
Dividends declared not yet paid |
|
10.0 |
|
|
|
8.9 |
|
Increase in lease assets in exchange for lease liabilities: |
|
|
|
Operating leases |
|
9.8 |
|
|
|
3.9 |
|
Finance leases |
|
1.2 |
|
|
|
0.9 |
|
Winnebago Industries, Inc.Supplemental
Information by Reportable Segment - Towable RV(in
millions, except unit data)(Unaudited and subject
to reclassification) |
|
Three Months Ended |
|
May 25, 2024 |
|
% of Revenues(1) |
|
May 27, 2023 |
|
% of Revenues(1) |
|
$ Change(1) |
|
% Change(1) |
Net revenues |
$ |
386.3 |
|
|
|
|
$ |
384.1 |
|
|
|
|
$ |
2.2 |
|
|
|
0.6 |
% |
Adjusted EBITDA |
|
41.9 |
|
|
10.9 |
% |
|
|
53.8 |
|
|
14.0 |
% |
|
|
(11.8 |
) |
|
|
(22.0 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
Unit deliveries |
May 25, 2024 |
|
Product Mix(2) |
|
May 27, 2023 |
|
Product Mix(2) |
|
Unit Change |
|
% Change |
Travel trailer |
|
6,120 |
|
|
66.1 |
% |
|
|
6,376 |
|
|
73.2 |
% |
|
|
(256 |
) |
|
|
(4.0 |
)% |
Fifth wheel |
|
3,143 |
|
|
33.9 |
% |
|
|
2,339 |
|
|
26.8 |
% |
|
|
804 |
|
|
|
34.4 |
% |
Total Towable RV |
|
9,263 |
|
|
100.0 |
% |
|
|
8,715 |
|
|
100.0 |
% |
|
|
548 |
|
|
|
6.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended |
|
May 25, 2024 |
|
% of Revenues(1) |
|
May 27, 2023 |
|
% of Revenues(1) |
|
$ Change(1) |
|
% Change(1) |
Net revenues |
$ |
1,001.8 |
|
|
|
|
$ |
1,073.9 |
|
|
|
|
$ |
(72.1 |
) |
|
|
(6.7 |
)% |
Adjusted EBITDA |
|
101.8 |
|
|
10.2 |
% |
|
|
129.4 |
|
|
12.0 |
% |
|
|
(27.5 |
) |
|
|
(21.3 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended |
Unit deliveries |
May 25, 2024 |
|
Product Mix(2) |
|
May 27, 2023 |
|
Product Mix(2) |
|
Unit Change |
|
% Change |
Travel trailer |
|
15,987 |
|
|
67.0 |
% |
|
|
16,049 |
|
|
68.8 |
% |
|
|
(62 |
) |
|
|
(0.4 |
)% |
Fifth wheel |
|
7,869 |
|
|
33.0 |
% |
|
|
7,293 |
|
|
31.2 |
% |
|
|
576 |
|
|
|
7.9 |
% |
Total Towable RV |
|
23,856 |
|
|
100.0 |
% |
|
|
23,342 |
|
|
100.0 |
% |
|
|
514 |
|
|
|
2.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
May 25, 2024 |
|
|
|
May 27, 2023 |
|
|
|
Change(1) |
|
% Change(1) |
Backlog(3) |
|
|
|
|
|
|
|
|
|
|
|
Units |
|
4,734 |
|
|
|
|
|
5,297 |
|
|
|
|
|
(563 |
) |
|
|
(10.6 |
)% |
Dollars |
$ |
153.1 |
|
|
|
|
$ |
236.0 |
|
|
|
|
$ |
(82.9 |
) |
|
|
(35.1 |
)% |
Dealer
Inventory |
|
|
|
|
|
|
|
|
|
|
|
Units |
|
18,110 |
|
|
|
|
|
20,218 |
|
|
|
|
|
(2,108 |
) |
|
|
(10.4 |
)% |
(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 25, 2024 |
|
% of Revenues(1) |
|
May 27, 2023 |
|
% of Revenues(1) |
|
$ Change(1) |
|
% Change(1) |
Net revenues |
$ |
299.0 |
|
|
|
|
$ |
374.4 |
|
|
|
|
$ |
(75.3 |
) |
|
(20.1 |
)% |
Adjusted EBITDA |
|
13.4 |
|
|
4.5 |
% |
|
|
26.8 |
|
|
7.2 |
% |
|
|
(13.5 |
) |
|
(50.2 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
Unit deliveries |
May 25, 2024 |
|
Product Mix(2) |
|
May 27, 2023 |
|
Product Mix(2) |
|
Unit Change |
|
% Change |
Class A |
|
417 |
|
|
24.8 |
% |
|
|
524 |
|
|
24.6 |
% |
|
|
(107 |
) |
|
(20.4 |
)% |
Class B |
|
476 |
|
|
28.3 |
% |
|
|
1,018 |
|
|
47.8 |
% |
|
|
(542 |
) |
|
(53.2 |
)% |
Class C |
|
787 |
|
|
46.8 |
% |
|
|
589 |
|
|
27.6 |
% |
|
|
198 |
|
|
33.6 |
% |
Total Motorhome RV |
|
1,680 |
|
|
100.0 |
% |
|
|
2,131 |
|
|
100.0 |
% |
|
|
(451 |
) |
|
(21.2 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended |
|
May 25, 2024 |
|
% of Revenues(1) |
|
May 27, 2023 |
|
% of Revenues(1) |
|
$ Change(1) |
|
% Change(1) |
Net revenues |
$ |
971.8 |
|
|
|
|
$ |
1,242.4 |
|
|
|
|
$ |
(270.6 |
) |
|
(21.8 |
)% |
Adjusted EBITDA |
|
60.7 |
|
|
6.2 |
% |
|
|
119.6 |
|
|
9.6 |
% |
|
|
(59.0 |
) |
|
(49.3 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended |
Unit deliveries |
May 25, 2024 |
|
Product Mix(2) |
|
May 27, 2023 |
|
Product Mix(2) |
|
Unit Change |
|
% Change |
Class A |
|
1,269 |
|
|
24.3 |
% |
|
|
1,734 |
|
|
25.5 |
% |
|
|
(465 |
) |
|
(26.8 |
)% |
Class B |
|
1,815 |
|
|
34.8 |
% |
|
|
3,233 |
|
|
47.5 |
% |
|
|
(1,418 |
) |
|
(43.9 |
)% |
Class C |
|
2,128 |
|
|
40.8 |
% |
|
|
1,837 |
|
|
27.0 |
% |
|
|
291 |
|
|
15.8 |
% |
Total Motorhome RV |
|
5,212 |
|
|
100.0 |
% |
|
|
6,804 |
|
|
100.0 |
% |
|
|
(1,592 |
) |
|
(23.4 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
May 25, 2024 |
|
|
|
May 27, 2023 |
|
|
|
Change(1) |
|
% Change(1) |
Backlog(3) |
|
|
|
|
|
|
|
|
|
|
|
Units |
|
1,596 |
|
|
|
|
|
4,595 |
|
|
|
|
|
(2,999 |
) |
|
(65.3 |
)% |
Dollars |
$ |
354.9 |
|
|
|
|
$ |
800.4 |
|
|
|
|
$ |
(445.5 |
) |
|
(55.7 |
)% |
Dealer
Inventory |
|
|
|
|
|
|
|
|
|
|
|
Units |
|
4,386 |
|
|
|
|
|
4,544 |
|
|
|
|
|
(158 |
) |
|
(3.5 |
)% |
(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 25, 2024 |
|
% of Revenues(1) |
|
May 27, 2023 |
|
% of Revenues(1) |
|
$ Change(1) |
|
% Change(1) |
|
Net revenues |
$ |
87.9 |
|
|
|
|
$ |
129.0 |
|
|
|
|
$ |
(41.1 |
) |
|
(31.8 |
)% |
Adjusted EBITDA |
|
8.5 |
|
|
9.7 |
% |
|
|
17.3 |
|
|
13.4 |
% |
|
|
(8.8 |
) |
|
(50.9 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Unit deliveries |
May 25, 2024 |
|
|
|
May 27, 2023 |
|
|
|
Unit Change |
|
% Change |
|
Boats |
|
1,127 |
|
|
|
|
|
1,586 |
|
|
|
|
|
(459 |
) |
|
(28.9 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended |
|
|
May 25, 2024 |
|
% of Revenues(1) |
|
May 27, 2023 |
|
% of Revenues(1) |
|
$ Change(1) |
|
% Change(1) |
|
Net revenues |
$ |
245.0 |
|
|
|
|
$ |
373.3 |
|
|
|
|
$ |
(128.3 |
) |
|
(34.4 |
)% |
Adjusted EBITDA |
|
20.1 |
|
|
8.2 |
% |
|
|
50.2 |
|
|
13.5 |
% |
|
|
(30.2 |
) |
|
(60.0 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended |
|
Unit deliveries |
May 25, 2024 |
|
|
|
May 27, 2023 |
|
|
|
Unit Change |
|
% Change |
|
Boats |
|
3,107 |
|
|
|
|
|
4,552 |
|
|
|
|
|
(1,445 |
) |
|
(31.7 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
May 25, 2024 |
|
|
|
May 27, 2023 |
|
|
|
Change(1) |
|
% Change(1) |
|
Backlog(2) |
|
|
|
|
|
|
|
|
|
|
|
|
Units |
|
642 |
|
|
|
|
|
1,348 |
|
|
|
|
|
(706 |
) |
|
(52.4 |
)% |
Dollars |
$ |
62.0 |
|
|
|
|
$ |
146.3 |
|
|
|
|
$ |
(84.3 |
) |
|
(57.6 |
)% |
Dealer
Inventory(3) |
|
|
|
|
|
|
|
|
|
|
|
|
Units |
|
3,400 |
|
|
|
|
|
4,109 |
|
|
|
|
|
(709 |
) |
|
(17.3 |
)% |
(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 25, 2024 |
|
May 27, 2023 |
|
May 25, 2024 |
|
May 27, 2023 |
Diluted earnings per share |
$ |
0.96 |
|
|
$ |
1.71 |
|
|
$ |
1.40 |
|
|
$ |
4.95 |
|
Acquisition-related
costs(1) |
|
— |
|
|
|
0.11 |
|
|
|
0.05 |
|
|
|
0.16 |
|
Amortization(1) |
|
0.19 |
|
|
|
0.13 |
|
|
|
0.55 |
|
|
|
0.34 |
|
Change in fair value of note
receivable(1) |
|
— |
|
|
|
— |
|
|
|
0.10 |
|
|
|
— |
|
Contingent consideration fair
value adjustment(1) |
|
— |
|
|
|
— |
|
|
|
0.03 |
|
|
|
0.06 |
|
Tax impact of
adjustments(2) |
|
(0.04 |
) |
|
|
(0.06 |
) |
|
|
(0.17 |
) |
|
|
(0.13 |
) |
Impact of call spread
overlay(3) |
|
0.03 |
|
|
|
0.25 |
|
|
|
0.07 |
|
|
|
0.71 |
|
Loss on note repurchase |
|
— |
|
|
|
— |
|
|
|
1.07 |
|
|
|
— |
|
Adjusted diluted earnings per share(4) |
$ |
1.13 |
|
|
$ |
2.13 |
|
|
$ |
3.11 |
|
|
$ |
6.08 |
|
(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 |
|
Nine Months Ended |
(in
millions) |
May 25, 2024 |
|
May 27, 2023 |
|
May 25, 2024 |
|
May 27, 2023 |
Net income |
$ |
29.0 |
|
|
$ |
59.1 |
|
|
$ |
42.1 |
|
|
$ |
172.1 |
|
Interest expense, net |
|
5.8 |
|
|
|
5.2 |
|
|
|
15.2 |
|
|
|
16.4 |
|
Provision for income
taxes |
|
6.5 |
|
|
|
16.0 |
|
|
|
22.2 |
|
|
|
52.4 |
|
Depreciation |
|
8.9 |
|
|
|
7.6 |
|
|
|
25.5 |
|
|
|
20.9 |
|
Amortization |
|
5.6 |
|
|
|
4.4 |
|
|
|
16.9 |
|
|
|
12.0 |
|
EBITDA |
|
55.8 |
|
|
|
92.3 |
|
|
|
121.9 |
|
|
|
273.8 |
|
Acquisition-related costs |
|
— |
|
|
|
3.9 |
|
|
|
1.5 |
|
|
|
5.6 |
|
Change in fair value of note
receivable |
|
— |
|
|
|
— |
|
|
|
3.0 |
|
|
|
— |
|
Contingent consideration fair
value adjustment |
|
— |
|
|
|
— |
|
|
|
1.1 |
|
|
|
2.0 |
|
Loss on note repurchase |
|
— |
|
|
|
— |
|
|
|
32.7 |
|
|
|
— |
|
Non-operating loss |
|
2.2 |
|
|
|
0.2 |
|
|
|
1.7 |
|
|
|
0.4 |
|
Adjusted EBITDA |
$ |
58.0 |
|
|
$ |
96.4 |
|
|
$ |
161.9 |
|
|
$ |
281.8 |
|
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.
Winnebago Industries (NYSE:WGO)
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From Jun 2024 to Jul 2024
Winnebago Industries (NYSE:WGO)
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From Jul 2023 to Jul 2024