WINNEBAGO INDUSTRIES INC - FORM 8-K - EX-99.1 - EXHIBIT - March 28, 2013

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EX-99.1 - 2ND QUARTER RESULTS NEWS RELEASE - WINNEBAGO INDUSTRIES INCa8kq22013earningsrelease.pdf
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 News Release
 

Contact: Sheila Davis - PR/IR Mgr. - 641-585-6803 - sdavis@winnebagoind.com

WINNEBAGO INDUSTRIES REPORTS RESULTS FOR
SECOND QUARTER OF FISCAL 2013
-- Net Income Increase over $7 million Compared To Second Quarter Fiscal 2012 --

FOREST CITY, IOWA, March 28, 2013 - Winnebago Industries, Inc. (NYSE:WGO), a leading United States (U.S.) recreation vehicle manufacturer, today reported financial results for the Company's second quarter of Fiscal 2013.

Revenues for the second quarter ended March 2, 2013 were $177.2 million, an increase of 34.6%, versus $131.6 million for the second quarter of Fiscal 2012. The Company reported operating income of $8.9 million for the quarter, versus operating loss of $1.2 million for the second quarter of Fiscal 2012. Net income for the second quarter of Fiscal 2013 was $6.3 million, or $0.22 per diluted share, versus a loss of $912,000, or $0.03 per diluted share for the second quarter of Fiscal 2012.

Earnings in the second quarter were positively impacted by increased motorized demand driving higher sales volume. The added sales volume, combined with firmer net pricing, increased manufacturing productivity and fixed cost leverage, resulted in higher operating margins, net income and earnings per share.

Revenues for the first 27-weeks of Fiscal 2013 were $370.7 million, an increase of 40.7%, versus revenues of $263.4 million for the first 26-weeks of Fiscal 2012. The Company reported operating income of $18.8 million for the first half of Fiscal 2013, versus operating loss of $537,000 for the first half of Fiscal 2012. Net income for the first half of Fiscal 2013 was $13.7 million, or $0.48 per diluted share, versus $123,000, or $0.00 per diluted share for the first half of Fiscal 2012.

“We had very positive comparisons this year versus the first half of Fiscal 2012,” said Winnebago Industries' Chairman, CEO and President Randy Potts. "Our motorhome sales growth continues to out-pace the industry. As evidenced by the heightened level of our sales order backlog, we continue to see great response to our products from our dealer partners as well as from retail consumers."

Potts continued, "We believe the motorized RV market will continue to grow toward pre-recession levels. Improved economic indicators such as rising housing starts, lower unemployment and attractive interest rates should create a positive environment going forward."

Conference Call
Winnebago Industries, Inc. will conduct a conference call in conjunction with this release at 9 a.m. Central Time today, Thursday, March 28, 2013. 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://www.winnebagoind.com/investor.html. The event will be archived and available for replay for the next 90 days.

About Winnebago Industries
Winnebago Industries, Inc., "The Most Recognized Name in Motorhomes®", is a leading U.S. manufacturer of recreation vehicles, which are used primarily in leisure travel and outdoor recreation activities. The Company builds quality motorhomes, travel trailers and fifth wheel products under the Winnebago, Itasca, Era and SunnyBrook brand names. Winnebago Industries has received the Quality Circle Award from the Recreation Vehicle Dealers Association every year since the award's inception in 1996. The Company's common stock is listed on the New York and Chicago Stock Exchanges and traded under the symbol WGO. Options for the Company's common stock are traded on the Chicago Board Options Exchange. For access to Winnebago Industries' investor relations material or to add your name to an automatic email list for Company news releases, visit, http://www.winnebagoind.com/investor.html.





This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that forward-looking statements are inherently uncertain. A number of factors could cause actual results to differ materially from these statements, including, but not limited to increases in interest rates, availability of credit, low consumer confidence, significant increase in repurchase obligations, inadequate liquidity or capital resources, availability and price of fuel, a slowdown in the economy, increased material and component costs, availability of chassis and other key component parts, sales order cancellations, slower than anticipated sales of new or existing products, new product introductions by competitors, the effect of global tensions, integration of operations relating to mergers and acquisitions activities and other factors. Additional information concerning certain risks and uncertainties that could cause actual results to differ materially from that projected or suggested is contained in the Company's filings with the Securities and Exchange Commission (SEC) over the last 12 months, copies of which are available from the SEC or from the Company upon request. The Company disclaims any obligation or undertaking to disseminate any updates or revisions to any forward looking statements contained in this release or to reflect any changes in the Company's expectations after the date of this release or any change in events, conditions or circumstances on which any statement is based, except as required by law.
# # #





Winnebago Industries, Inc.
Unaudited Consolidated Statements of Operations
(In thousands, except percent and per share data)

 
Quarter Ended
 
March 2, 2013
 
February 25, 2012
Net revenues
$
177,166

 
100.0
 %
 
$
131,600

 
100.0
 %
Cost of goods sold
159,975

 
90.3
 %
 
124,754

 
94.8
 %
Gross profit
17,191

 
9.7
 %
 
6,846

 
5.2
 %
Operating expenses:
 
 
 
 
 
 
 
Selling
3,831

 
2.2
 %
 
3,992

 
3.0
 %
General and administrative
4,488

 
2.5
 %
 
4,018

 
3.1
 %
Total operating expenses
8,319

 
4.7
 %
 
8,010

 
6.1
 %
Operating income (loss)
8,872

 
5.0
 %
 
(1,164
)
 
(0.9
)%
Non-operating expense
(19
)
 
—
 %
 
(110
)
 
(0.1
)%
Income (loss) before income taxes
8,853

 
5.0
 %
 
(1,274
)
 
(1.0
)%
Provision (benefit) for taxes
2,568

 
1.4
 %
 
(362
)
 
(0.3
)%
Net income (loss)
$
6,285

 
3.5
 %
 
$
(912
)
 
(0.7
)%
Income (loss) per common share:
 
 
 
 
 
 
 
Basic
$
0.22

 
 
 
$
(0.03
)
 
 
Diluted
$
0.22

 
 
 
$
(0.03
)
 
 
Weighted average common shares outstanding:
 
 
 
 
 
 
 
Basic
28,084

 
 
 
29,151

 
 
Diluted
28,191

 
 
 
29,248

 
 



 
Six Months(1) Ended
 
March 2, 2013
 
February 25, 2012
Net revenues
$
370,720

 
100.0
%
 
$
263,437

 
100.0
 %
Cost of goods sold
332,782

 
89.8
%
 
248,095

 
94.2
 %
Gross profit
37,938

 
10.2
%
 
15,342

 
5.8
 %
Operating expenses:
 
 
 
 
 
 
 
Selling
8,792

 
2.4
%
 
8,154

 
3.1
 %
General and administrative
10,300

 
2.8
%
 
7,725

 
2.9
 %
Loss on sale of asset held for sale
28

 
0.0
%
 
—

 
0.0
 %
Total operating expenses
19,120

 
5.2
%
 
15,879

 
6.0
 %
Operating income (loss)
18,818

 
5.1
%
 
(537
)
 
(0.2
)%
Non-operating income
595

 
0.2
%
 
147

 
0.1
 %
Income (loss) before income taxes
19,413

 
5.2
%
 
(390
)
 
(0.1
)%
Provision (benefit) for taxes
5,737

 
1.5
%
 
(513
)
 
(0.2
)%
Net income
$
13,676

 
3.7
%
 
$
123

 
0.0
 %
Income per common share:
 
 
 
 
 
 
 
Basic
$
0.49

 
 
 
$
0.00

 
 
Diluted
$
0.48

 
 
 
$
0.00

 
 
Weighted average common shares outstanding:
 
 
 
 
 
 
 
Basic
28,196

 
 
 
29,145

 
 
Diluted
28,280

 
 
 
29,231

 
 


Percentages may not add due to rounding differences.

(1) The six months ended March 2, 2013 and February 25, 2012 contained 27 weeks and 26 weeks, respectively.




Winnebago Industries, Inc.
Unaudited Consolidated Balance Sheets
(In thousands)
 
March 2,
2013
 
August 25,
2012
ASSETS
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
26,235

 
$
62,683

Receivables, net
26,906

 
22,726

Inventories
123,944

 
87,094

Prepaid expenses and other assets
6,689

 
4,509

Income taxes receivable
1,278

 
1,603

Deferred income taxes
9,419

 
8,453

Total current assets
194,471

 
187,068

Total property and equipment, net
20,260

 
19,978

Assets held for sale
—

 
550

Long-term investments
8,735

 
9,074

Investment in life insurance
24,515

 
23,127

Deferred income taxes
29,518

 
30,520

Goodwill
1,228

 
1,228

Amortizable intangible assets
599

 
641

Other assets
12,831

 
13,886

Total assets
$
292,157

 
$
286,072

 
 
 
 
LIABILITIES AND STOCKHOLDERS' EQUITY
 
 
 
Current liabilities:
 
 
 
Accounts payable
$
26,083

 
$
24,920

Income taxes payable
1,152

 
348

Accrued expenses
36,767


35,750

Total current liabilities
64,002

 
61,018

Long-term liabilities:
 
 
 
Unrecognized tax benefits
5,096

 
5,228

Postretirement health care and deferred compensation benefits
70,027

 
75,135

Total long-term liabilities
75,123

 
80,363

Stockholders' equity
153,032

 
144,691

Total liabilities and stockholders' equity
$
292,157

 
$
286,072







Winnebago Industries, Inc.
Unaudited Consolidated Statements of Cash Flows
(In thousands)
 
Six Months(1) Ended
 
March 2,
2013
 
February 25,
2012
Operating activities:
 
 
 
Net income
$
13,676

 
$
123

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Depreciation and amortization
2,178

 
2,590

LIFO expense
551

 
529

Stock-based compensation
996

 
749

Deferred income taxes including valuation allowance
(1,550
)
 
(320
)
Postretirement benefit income and deferred compensation expenses
284

 
448

    Provision for doubtful accounts
6

 
20

    (Gain) loss on disposal of property
(26
)
 
21

Gain on life insurance
(509
)
 
(195
)
    Increase in cash surrender value of life insurance policies
(547
)
 
(221
)
Other
—

 
311

Change in assets and liabilities:
 
 
 
Inventories
(37,401
)
 
8,453

Receivables, prepaid and other assets
(6,334
)
 
1,222

     Income taxes and unrecognized tax benefits
1,618

 
(248
)
Accounts payable and accrued expenses
3,052

 
(207
)
Postretirement and deferred compensation benefits
(2,136
)
 
(1,877
)
Net cash (used in) provided by operating activities
(26,142
)
 
11,398

 
 
 
 
Investing activities:
 
 
 
Proceeds from the sale of investments, at par
250

 
750

Proceeds from life insurance
974

 
643

Purchases of property and equipment
(2,443
)
 
(1,168
)
Proceeds from the sale of property
614

 
7

Payments of COLI borrowings
(1,371
)
 
—

Other
151

 
65

Net cash (used in) provided by investing activities
(1,825
)
 
297

 
 
 
 
Financing activities:
 
 
 
Payments for purchase of common stock
(8,367
)
 
(235
)
    Other
(114
)
 
33

Net cash used in financing activities
(8,481
)
 
(202
)
 
 
 
 
Net (decrease) increase in cash and cash equivalents
(36,448
)
 
11,493

Cash and cash equivalents at beginning of period
62,683

 
69,307

Cash and cash equivalents at end of period
$
26,235

 
$
80,800

 
 
 
 
Supplemental cash flow disclosure:
 
 
 
Income taxes paid, net of refunds
$
5,670

 
$
55


(1) The six months ended March 2, 2013 and February 25, 2012 contained 27 weeks and 26 weeks, respectively.





Winnebago Industries, Inc.
Unaudited Deliveries
 
Quarter Ended
 
Change
(In units)
March 2,
2013
Product
Mix % (1)
 
February 25,
2012
Product
Mix % (1)
 
Units
%
Class A gas
503

35.4
%
 
353

35.3
%
 
150

42.5
 %
Class A diesel
321

22.6
%
 
235

23.5
%
 
86

36.6
 %
Total Class A
824

58.1
%
 
588

58.7
%
 
236

40.1
 %
Class B
95

6.7
%
 
49

4.9
%
 
46

93.9
 %
Class C
500

35.2
%
 
364

36.4
%
 
136

37.4
 %
Total motorhomes
1,419

100.0
%
 
1,001

100.0
%
 
418

41.8
 %
 
 
 
 
 
 
 
 
 
Travel trailer
438

79.9
%
 
304

54.1
%
 
134

44.1
 %
Fifth wheel
110

20.1
%
 
258

45.9
%
 
(148
)
(57.4
)%
    Total towables
548

100.0
%
 
562

100.0
%
 
(14
)
(2.5
)%
 
 
 
 
 
 
 
 
 
 
Six Months(2) Ended
 
Change
(In units)
March 2,
2013
Product
Mix % (1)

 
February 25,
2012
Product
Mix % (1)

 
Units

%
Class A gas
1,123

38.0
%
 
734

36.0
%
 
389

53.0
 %
Class A diesel
666

22.6
%
 
467

22.9
%
 
199

42.6
 %
Total Class A
1,789

60.6
%
 
1,201

58.8
%
 
588

49.0
 %
Class B
185

6.3
%
 
128

6.3
%
 
57

44.5
 %
Class C
979

33.2
%
 
712

34.9
%
 
267

37.5
 %
Total motor homes
2,953

100.0
%
 
2,041

100.0
%
 
912

44.7
 %
 
 
 
 
 
 
 
 
 
Travel trailer
846

76.6
%
 
571

57.3
%
 
275

48.2
 %
Fifth wheel
259

23.4
%
 
426

42.7
%
 
(167
)
(39.2
)%
Total towables
1,105

100.0
%
 
997

100.0
%
 
108

10.8
 %
 
(1) Percentages may not add due to rounding differences.
(2) The six months ended March 2, 2013 and February 25, 2012 contained 27 weeks and 26 weeks, respectively.  
Unaudited Backlog
 
As Of
 
Change
 
March 2, 2013
 
February 25, 2012
 
 
 
 
Units
% (1)

 
Units
% (1)
 
Units
%
Class A gas
1,216

44.2
%
 
306

30.5
%
 
910

297.4
 %
Class A diesel
375

13.6
%
 
196

19.5
%
 
179

91.3
 %
Total Class A
1,591

57.8
%
 
502

50.0
%
 
1,089

216.9
 %
Class B
121

4.4
%
 
83

8.3
%
 
38

45.8
 %
Class C
1,040

37.8
%
 
419

41.7
%
 
621

148.2
 %
Total motorhome backlog(2)
2,752

100.0
%
 
1,004

100.0
%
 
1,748

174.1
 %
 
 
 
 
 
 
 
 
 
Travel trailer
325

85.3
%
 
230

55.2
%
 
95

41.3
 %
Fifth wheel
56

14.7
%
 
187

44.8
%
 
(131
)
(70.1
)%
    Total towable backlog (2)
381

100.0
%
 
417

100.0
%
 
(36
)
(8.6
)%
 
 
 
 
 
 
 
 
 
Total approximate backlog revenue dollars (in 000's):
 
 
 
 
 
 
Motorhome
$
277,270

 
 
$
103,978

 
 
$
173,292

166.7
 %
Towable
8,105

 
 
10,671

 
 
(2,566
)
(24.0
)%
  
(1) 
Percentages may not add due to rounding differences.
(2) 
Our backlog includes all accepted orders from dealers to be shipped within the next six months. Orders in backlog can be canceled or postponed at the option of the purchaser at any time without penalty and, therefore, backlog may not necessarily be an accurate measure of future sales.
Unaudited Dealer Inventory
 
Units As Of
 
Change
 
March 2,
2013
 
February 25,
2012
 
Units
%
Motorhomes
2,392

 
2,074

 
318

15.3
%
Towables
1,775

 
1,376

 
399

29.0
%


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