Winnebago Industries Inc.’s fiscal third-quarter earnings soared 94.4%, boosted by improved margins and heightened demand for motorhomes.
“We worked extremely hard to deliver significant improvement in the third quarter as compared to the prior year,” said Winnebago Industries Chairman, CEO and President Randy Potts. “We again increased our shipment volume in nearly every sector of our business due to the continued rise in customer demand.”
Revenues for the third quarter, ended June 1, increased 40.1% to $218.2 million versus $155.7 million for the third quarter of fiscal 2012. The Forest City, Iowa-based company. Net income for the period rose 94.4% to $7.7 million, or 27 cents per diluted share, from $3.9 million, or 13 cents per diluted share, a year ago. Winnebago reported operating income of $10.2 million for the quarter, an increase of 190.6%, versus $3.5 million for the third quarter of fiscal 2012.
Earnings in the third quarter were positively impacted by increased motorhome volumes, driven by higher dealer and retail consumer demand. The increased volumes, along with lower incentives, provided fixed cost leverage, higher operating margins, net income and earnings per share as compared to the same quarter last year. Net cash generated from operations was $19.2 million in the third quarter.
Revenues for the first 40 weeks of fiscal 2013 grew 40.5% to $588.9 million compared to $419.1 million for the first 39 weeks of fiscal 2012. Net income for the first nine months soared 425% to $21.3 million, or 76 cents per diluted share, versus $4.1 million, or 14 cents per diluted share, the year prior. Winnebago reported operating income of $29.1 million for the first nine months versus $3 million for the same period in fiscal 2012.
Potts noted, “We are very pleased with the marketplace response to our new 2014 motorhome and towable products, including the new Winnebago Forza and Itasca Solei. These products provide our dealers and retail customers with a new price point targeted at the largest growth component of the Class A diesel category. We are focused on bringing these exciting new products and others to market.
“Since the initial introduction to our dealer partners in late April at our Dealer Days event, we have moved forward with our planned staggered retail product rollouts which will continue throughout the coming months. We have had exceptional growth throughout fiscal 2013, experiencing the best shipment quarter in over five years, while still increasing our sales order backlog.”