Strong 4Q Boosts Winnebago’s Year-End Report
Forest City, Iowa-based Winnebago Industries Inc. reported double digit gains in revenues for its fourth quarter and fiscal year, ended Aug. 25, boosted by performance from the company’s towables unit and improved motorhome margins.
Revenues for the fourth quarter were $162.5 million, an increase of 24.5% from $130.5 million for the fourth quarter of fiscal 2011. Included within consolidated revenues was $15.8 million associated with towable products compared to $7.8 million the previous year.
The company reported an operating income of $6.5 million for the quarter, versus $1.8 million a year ago. Net income was $40.9 million, or $1.41 per diluted share, versus $3.5 million, or 12 cents per diluted share, for the fourth quarter of fiscal 2011. A tax benefit was recorded in the fourth quarter of fiscal 2012 due to a $36.9 million reduction in the valuation allowance on deferred tax assets that was established in fiscal 2009. Excluding the non-cash tax benefit of the reduction in valuation allowance, net income for the fourth quarter was $4 million or 14 cents per diluted share.
Winnebago said the fourth quarter was positively impacted by increased motorhome deliveries and improved gross margins due to improved fixed cost absorption.
Revenues for fiscal 2012 were $581.7 million, an increase of 17.2%, versus revenues of $496.4 million for fiscal 2011. Included within consolidated revenues was $56.8 million associated with towable products, compared to $16.7 million for fiscal 2011.
The company reported operating income of $9.5 million for the full year versus $11.3 million the year prior. Net income for was $45 million, or $1.54 per diluted share, versus $11.8 million, or 41 cents per diluted share for Fiscal 2011, also benefited by the tax benefit. Excluding the impact of the non-cash tax benefit of the reduction in valuation allowance, net income was $7.3 million or 25 cents per diluted share.
Revenues were higher with increased motorhome and towable deliveries and increased average selling prices for all RV products due to the mix of higher priced products delivered. Operating income for fiscal 2012 was lower as compared to the prior period most notably due to increased inflationary pressures and higher discounts incurred during the first half of the year and the fact that fiscal 2011 results included a $3.5 million pre-tax benefit from the results of an annual physical inventory of work-in-process, due to lower actual inventory scrap and production loss.
“We were pleased with the results for the fourth quarter,” said Winnebago Industries Chairman, CEO and President Randy Potts, “particularly as they related to our motorhome business. Our new value priced Winnebago Vista and Itasca Sunstar 26HE models introduced to our dealers at the Dealer Days event in May have been very popular in the marketplace and contributed to the increased demand in our fourth quarter, along with the continued success of our Class A and C diesel products.
“The dramatic increase in our sales order backlog reflects the positive dealer response to our new 2013 model year products. As a result of the improved demand, we ramped up production throughout the fourth quarter. We will continue to increase production during fiscal 2013 to meet the growing demand for our products.”
During the fourth quarter of fiscal 2012, the company repurchased 592,000 shares of the company’s common stock for $6.3 million at an average price of $10.57. “We believe the timing was right to repurchase shares and in the best interest of our shareholders, allowing us to enhance shareholder value this past quarter,” said Winnebago Industries’ Vice President, Chief Financial Officer Sarah Nielsen.
On a forward-looking basis, fiscal 2013 is a 53-week year and includes a 14-week first quarter.