Winnebago Industries Inc. was named to the “Mid-Market Elite” list by Chief Executive Magazine.
According to a press release, Winnebago is featured in the “Mid-Market Elite” list that appeared in the January/February 2014 issue of Chief Executive Magazine. The listing was conducted in partnership with the National Center for the Middle Market at the Fisher School of Business at Ohio State University and GE Capital.
The publication identified 100 top performers among 197,000 middle market companies, both private and public, that “stand out amid the middle-market universe, outpace their industry peers, exceed expectations, and create value in unusual if not unique ways.” They indicated that Winnebago “weathered the recession and is poised to grow with the economy.”
Chief Executive Magazine indicated their purpose was to “draw attention to a vibrant and often neglected segment of the U.S. economy.” According to their research, the revenue growth of the mid-market is twice that of the S&P 500 and represents 3% of all U.S. companies, 1/3 of all jobs, almost 33% of private sector GDP, more than $10 trillion in annual revenue and 1.2-plus million new jobs in 2012-2013.
Forest City, Iowa-based Winnebago Industries Inc. announced the appointment of Randy Tegland to the position of assembly manager for its Lake Mills Assembly Facility (LMAF).
According to a press release, Tegland is responsible for managing and directing production within LMAF, including the assembly of the new Winnebago Touring Coach Travato, as well as the assembly of 110-volt components.
Tegland is a 36-year veteran of Winnebago and has over 13 years management and supervisory experience, having most recently served as supervisor of Winnebago’s shipout facility.
A graduate of Forest City High School, Tegland received a machinist certificate from North Iowa Area Community College, Mason City. Tegland also served in the United States Marine Corp.
Forest City, Iowa-based Winnebago Industries Inc. announced that Zach Raulie has relocated to the Northwest in his position of district sales manager.
According to a press release, Raulie is responsible for sales of the company’s Winnebago, Itasca and Winnebago Touring Coach motorhomes, as well as dealer development and training for dealers in the states of Washington, Oregon, Northern Idaho, Montana, Alaska and the Canadian provinces of British Columbia and Alberta.
Raulie is a 10-year veteran of Winnebago and most recently served as a district sales manager in the Southeast region. Prior to joining Winnebago in 2004, he served as territory sales manager for an outdoor products and accessory manufacturer and an assistant manager for a sporting goods, hunting gear and accessories store.
A graduate of Forest City High School, Raulie earned his bachelor’s from Waldorf College in Forest City.
Forest City, Iowa-based Winnebago Industries Inc. announced the promotion of Mark McLaughlin to the position of district sales manager.
According to a press releaase, McLaughlin is responsible for sales of the company’s Winnebago, Itasca and Winnebago Touring Coach motorhomes, as well as dealer development and training in Mississippi, Alabama, Georgia, South Carolina, Southern North Carolina and Northern Florida.
McLaughlin is an 18-year veteran of Winnebago and has served in a variety of product and customer-related positions, most recently serving as senior product trainer since 2006. Prior to joining Winnebago in 1995, he served as assistant service manager and master service consultant/service manager for several auto dealerships.
McLaughlin is a native of Belmond, Iowa, and graduated from the General Motors University in Automotive Management. He serves on the North Iowa Community College Automotive Advisory Council, the National Motorcycle Safety Foundation as an instructor/mentor and is BRC, ERC, RRBRC and 3WBRC certified. McLaughlin is also an Iowa DOT Motorcycle Safety Instructor and serves as a high school soccer referee and certified coach for the Iowa High School Athletic Association.
Winnebago Industries Inc. earned a “Top 2014 RV Debut” from RVBusiness Magazine for the company’s Winnebago Trend Class C motorhome.
“Just as the North American RV industry itself continues its impressive recovery, the compact, 9,350-pound GVWR Trend and Viva! companion lines of Class C motorhomes offer living proof that the RV industry is also regaining its edge in terms of authentically new and creative product development, said RVBusiness Publisher Sherman Goldenberg. “The Trend, Viva! and Winnebago’s new Travato Class B van camper, each built on Chrysler’s Ram ProMaster chassis, should serve the industry well in attracting the next generation of motorhome buyers.”
“We agree wholeheartedly with RVBusiness’ recognition of the Trend,” said Winnebago Vice President of Sales and Product Management Scott Degnan. “The Trend and the Viva!, are true game changers. They are fuel-efficient, unique and innovative motorhomes that we believe will take the industry by storm. We are excited to receive recognition by RVBusiness and look forward to the great success we believe the Trend and Viva! will have in the marketplace.”
Reflecting a marked rebound in the motorhome marketplace and heightened demand for a series of new product rollouts, Winnebago Industries Inc. reported that the company had shipped 2,005 motorized units during its fiscal first quarter.
“Our dealer network confidence continues to grow, which validates our belief that our motorized product introductions are being well received,” stated Randy Potts, chairman, president and CEO of the Forest City, Iowa-based builder, during a conference call today (Dec. 19).
Revenue improved 15% to $222.7 million during the first quarter while net income soared 51% to $11.1 million. Potts noted that “we believe we are well positioned to deliver these type of results in the future.”
Interestingly, as reported by Vice President/CFO Sarah Nielsen, the average motorhome selling price decreased during the quarter as Winnebago diversifies its offerings with an expanded focus on Class B and Class C product. A breakdown showed that Class B shipments rose 12 units to 102 while Class C’s increased 370 units to 796 – a total that includes a larger than normal rental unit total. Class A gas and diesel also showed gains, up 90 and 52 units respectively.
Accordingly the company is stepping up production, including utilization of the recently acquired former Cummins Inc. plant in nearby Lake Mills that is housing Class B production.
“We are busy to the point where we are working over the holidays,” Potts said, noting that Winnebago had scheduled four additional days in December. “This is very unusual for us, but we are focused on delivering product to our dealers in timely fashion.”
Included in the additional work hours is Winnebago’s “large rental order” that was also reflected in a motorhome backlog that ballooned to 3,534 unit compared to 2,118 in the prior first quarter. It represented the fifth straight quarter that Winnebago’s backlog had increased.
“We had previously indicated that we were going after the rental business, and we are very happy with the results,” said Potts, adding that he couldn’t go into specifics as far as the size of the order or the client. “We have to be careful in the rental business because there is a lot of pressure on margins, which is the main reason we haven’t been a big player in the past. But we have arranged a deal that allows both parties to conduct business. Deliveries will be going out in the spring, so we will be busy to that point.”
Nielsen reported that Winnebago was also experiencing strong Class A gas demand, although chassis shipment still remained problematic. “We anticipate more chassis late in the second quarter,” she said.
The only “red area” for Winnebago continues to be its towable interests, which lost $400,000 operationally for the quarter. The company entered the towable arena with the acquisition of SunnyBrook RV Inc. in late 2010.
“The current state of our towable business is not where we expected to be,” Potts said. “We continue to work toward improving results. It’s a big market with a lot of opportunity.”
He noted that Winnebago’s strategy was more in line with successful, smaller builders, opting not to battle in the trenches for overall market share but rather find niches that don’t directly compete in those high-volume segments.
“Our goal is to make our towable interests a profit-generating part of our business,” Potts said. “When we achieve that, we will have a discussion of how we can grow.”
He added, “We have seen that there are acquisition opportunities out there. But, again, we have not chosen to go that direction until we get all the pieces right.”
Continued demand for motorhomes coupled with “firmer pricing” to protect margins helped fuel a robust first quarter for Winnebago Industries Inc., as the company reported a 50.8% gain in net income on 15% growth in revenue.
Sales for the 13-week fiscal first quarter, ended Nov. 30, were $222.7 million, compared with $193.6 million for the 14-week first quarter of fiscal 2013. The company reported operating income of $16 million for the quarter, an increase of 60.9% from $9.9 million a year ago, while net income was $11.1 million, or 40 cents per diluted share, compared with $7.4 million, or 26 cents per diluted share.
The Forest City, Iowa-based builder said earnings in the quarter were positively impacted by increased motorhome volumes as a result of higher dealer and retail consumer demand. Also in the quarter, shipping terms were revised to reflect delivery FOB Forest City to conform to standard industry practice which positively impacted shipments. The increased production and delivery volumes, along with firmer pricing, strong demand for new products and lower operating expense, provided more leverage that resulted in higher operating margins, net income and earnings per share as compared to the same quarter last year.
“Our strong first quarter results are a reflection of our dedicated team running the business well,” said Winnebago Chairman, CEO and President Randy Potts. “Everyone’s hard work and creativity contributes to the success of our business. We are keeping our fixed costs low, while continuing to grow our business with new and innovative products.”
He added, “New product entries in both motorized and towable categories displayed at the recent National RV Show in Louisville, Ky., were very well received, with the Winnebago Trend named as a “2014 Top RV Debut” by RV Business Magazine. We plan to continue to bring new and innovative products to market and believe we have tremendous growth opportunities ahead. In addition to our new products, the backlog reflects a large rental order to be delivered primarily in our third fiscal quarter, which is incremental to our normal rental business.”
“We will continue to make investments in working capital,” said Winnebago Vice President, CFO Sarah Nielsen. “Production increased 27% in the first quarter of fiscal 2014 compared to same period last year and 11% sequentially from the fourth quarter last year based on improved demand. A key component to our investment in working capital is the need for additional inventory to support the higher production rates.”
RV Trader and Winnebago Industries Inc. jointly announced the launch of a real-time inventory tool to assist customers searching for RVs on Winnebagoind.com sites: GoWinnebago.com, GoItasca.com, WinnebagoTouring.com, WinnebagoTowables.com and SunnyBrookRV.com.
According to a press release, when a consumer browses RVs on Winnebago websites, the new search tool will display a dealer’s inventory, product photos and MSRP, as determined by the local dealer. This new feature displays the inventory directly from RV Trader.com, enabling the consumer to quickly and easily locate the exact Winnebago, Itasca, Winnebago Touring Coach or SunnyBrook model they are searching for. This results in faster turn-around times and more leads for Winnebago dealers, the company said.
“This is a terrific program for our dealers and ultimately our customers,” said Winnebago Marketing and Sales Promotion Manager Kelli Harms. “Customers can find their closest dealer quickly and simultaneously view their inventory of that particular model without leaving the website. This partnership with RV Trader is a true ‘win-win,’ and we are excited to promote it to our motorized and towable dealers.”
“This is a feature that will bring the buyer and seller together seamlessly,” said Tim Custer, general manager of RV Trader. “Consumers will now be able to view local dealer inventory with the click of a button.”
Forest City, Iowa-based Winnebago Industries Inc. announced several recent promotions, according to a press release. Promotions include:
• Bob Bloomingdale has been promoted to project engineer with responsibilities of supervising the design of Class A gas motorhomes. A 24-year veteran of Winnebago, Bloomingdale has previously worked in various engineering positions, including CAD/CAM systems analyst, test lab supervisor and product designer. Bloomingdale is a native of Northwood, Iowa, and graduated from Minnesota State University (formerly Mankato State University), Mankato, Minn. with a bachelor’s engineering technology,
• Tom Larson has been promoted to cost accounting manager, with responsibilities for overseeing the cost accounting and inventory accounting departments. Larson is a 30-year veteran of Winnebago, where he has served in various accounts payable and cost accounting positions. Larson is a native of Forest City.
• Anthony Mikes has been promoted to senior buyer for Winnebago. Mikes is a 15-year veteran of Winnebago and has served in a variety of positions, including security, manufacturing, quality control and manufacturing engineering. Mikes is a native of West Bend, Iowa, and graduated from Waldorf College, Forest City, with a bachelor’s in finance, marketing and management. Mikes a veteran of the U.S. Army Reserve where he served in the military police. He serves as a deacon for the Church of Christ, Fertile, Iowa, member and former president of the Waldorf Warriors Booster Club, was recognized by the Mason City Globe Gazette’s “20 under 40,” served as a park commissioner for Forest City Parks and Recreation and was recently elected to serve on the City Council for Forest City.
Winnebago Industries Inc. will issue financials for its fiscal 2014 first quarter, ended Nov. 30, on Dec. 19.
The report will be available no earlier than 6 a.m. CST in the “Investor Relations” section of the company’s website at www.winnebagoind.com/investor.html .
Winnebago will also host a conference call on Dec. 19 at 9 a.m. CST to discuss the financial results for its first quarter. The call may be heard live via the company’s website and also will be archived and available for replay for the next 90 days.
Minimum requirements to listen to the webcast are either Windows Media Player or RealPlayer and at least a 28.8 Kbps connection to the Internet.