FORM 10-Q |
(Mark One) | ||
x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the quarterly period ended May 30, 2015 | ||
or | ||
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the transition period from _________________ to _________________ | ||
Commission File Number: 001-06403 |
WINNEBAGO INDUSTRIES, INC. | ||||
(Exact name of registrant as specified in its charter) |
Iowa | 42-0802678 | ||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||
P. O. Box 152, Forest City, Iowa | 50436 | ||||
(Address of principal executive offices) | (Zip Code) | ||||
(641) 585-3535 | |||||
(Registrant's telephone number, including area code) |
Large accelerated filer o | Accelerated filer x | Non-accelerated filer o | Smaller Reporting Company o |
Item 1. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 1. | ||
Item 1A | ||
Item 2. | ||
Item 6. | ||
AOCI | Accumulated Other Comprehensive Income (Loss) |
Amended Credit Agreement | Credit Agreement dated as of May 28, 2014 by and between Winnebago Industries, Inc. and Winnebago of Indiana, LLC, as Borrowers, and General Electric Capital Corporation, as Agent |
Apollo | Apollo Motorhome Holidays, LLC |
ASC | Accounting Standards Codification |
ASP | Average Sales Price |
ASU | Accounting Standards Update |
Credit Agreement | Credit Agreement dated as of October 31, 2012 by and between Winnebago Industries, Inc. and Winnebago of Indiana, LLC, as Borrowers, and General Electric Capital Corporation, as Agent (as amended May 28, 2014) |
ERP | Enterprise Resource Planning |
FASB | Financial Accounting Standards Board |
FIFO | First In, First Out |
GAAP | Generally Accepted Accounting Principles |
GECC | General Electric Capital Corporation |
IRS | Internal Revenue Service |
IT | Information Technology |
LIBOR | London Interbank Offered Rate |
LIFO | Last In, First Out |
NMF | Non-Meaningful Figure |
NYSE | New York Stock Exchange |
OCI | Other Comprehensive Income |
RV | Recreation Vehicle |
RVIA | Recreation Vehicle Industry Association |
SEC | U.S. Securities and Exchange Commission |
SERP | Supplemental Executive Retirement Plan |
Stat Surveys | Statistical Surveys, Inc. |
Towables | Winnebago of Indiana, LLC, a wholly-owned subsidiary of Winnebago Industries, Inc. |
US | United States of America |
XBRL | eXtensible Business Reporting Language |
YTD | Year To Date |
Three Months Ended | Nine Months Ended | |||||||||||||||
(In thousands, except per share data) | May 30, 2015 | May 31, 2014 | May 30, 2015 | May 31, 2014 | ||||||||||||
Net revenues | $ | 266,510 | $ | 247,747 | $ | 725,456 | $ | 699,228 | ||||||||
Cost of goods sold | 238,327 | 221,266 | 648,629 | 623,940 | ||||||||||||
Gross profit | 28,183 | 26,481 | 76,827 | 75,288 | ||||||||||||
Operating expenses: | ||||||||||||||||
Selling | 5,150 | 4,887 | 14,703 | 13,709 | ||||||||||||
General and administrative | 6,453 | 6,005 | 19,154 | 16,577 | ||||||||||||
Impairment (gain) on fixed assets | 462 | — | 462 | (629 | ) | |||||||||||
Total operating expenses | 12,065 | 10,892 | 34,319 | 29,657 | ||||||||||||
Operating income | 16,118 | 15,589 | 42,508 | 45,631 | ||||||||||||
Non-operating income | — | 735 | 35 | 752 | ||||||||||||
Income before income taxes | 16,118 | 16,324 | 42,543 | 46,383 | ||||||||||||
Provision for taxes | 4,616 | 4,939 | 13,050 | 14,259 | ||||||||||||
Net income | $ | 11,502 | $ | 11,385 | $ | 29,493 | $ | 32,124 | ||||||||
Income per common share: | ||||||||||||||||
Basic | $ | 0.43 | $ | 0.42 | $ | 1.09 | $ | 1.17 | ||||||||
Diluted | $ | 0.43 | $ | 0.42 | $ | 1.09 | $ | 1.16 | ||||||||
Weighted average common shares outstanding: | ||||||||||||||||
Basic | 26,932 | 27,209 | 26,942 | 27,552 | ||||||||||||
Diluted | 27,030 | 27,319 | 27,042 | 27,666 | ||||||||||||
Net income | $ | 11,502 | $ | 11,385 | $ | 29,493 | $ | 32,124 | ||||||||
Other comprehensive income (loss): | ||||||||||||||||
Amortization of prior service credit (net of tax of $556, $557, $1,554 and $1,567) | (903 | ) | (925 | ) | (2,525 | ) | (2,601 | ) | ||||||||
Amortization of net actuarial loss (net of tax of $154, $103, $412 and $304) | 249 | 173 | 668 | 505 | ||||||||||||
Plan amendment (net of tax of $0, $0, $581 and $1,346) | — | — | 944 | 2,234 | ||||||||||||
Unrealized appreciation of investments (net of tax of $0, $0, $0 and $91) | — | — | — | 151 | ||||||||||||
Total other comprehensive (loss) income | (654 | ) | (752 | ) | (913 | ) | 289 | |||||||||
Comprehensive income | $ | 10,848 | $ | 10,633 | $ | 28,580 | $ | 32,413 |
(In thousands, except per share data) | May 30, 2015 | August 30, 2014 | |||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 49,215 | $ | 57,804 | |||
Receivables, less allowance for doubtful accounts ($120 and $127) | 65,198 | 69,699 | |||||
Inventories | 122,575 | 112,848 | |||||
Net investment in operating leases | — | 15,978 | |||||
Prepaid expenses and other assets | 8,450 | 5,718 | |||||
Income taxes receivable and prepaid | 190 | 5 | |||||
Deferred income taxes | 5,907 | 9,641 | |||||
Total current assets | 251,535 | 271,693 | |||||
Property, plant and equipment, net | 34,646 | 25,135 | |||||
Investment in life insurance | 25,843 | 25,126 | |||||
Deferred income taxes | 24,164 | 24,029 | |||||
Goodwill | 1,228 | 1,228 | |||||
Other assets | 9,329 | 11,091 | |||||
Total assets | $ | 346,745 | $ | 358,302 | |||
Liabilities and Stockholders' Equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 29,547 | $ | 33,111 | |||
Income taxes payable | — | 2,927 | |||||
Accrued expenses: | |||||||
Accrued compensation | 17,405 | 20,763 | |||||
Operating lease repurchase obligations | — | 16,050 | |||||
Product warranties | 9,805 | 9,501 | |||||
Self-insurance | 5,902 | 4,941 | |||||
Accrued loss on repurchases | 1,749 | 2,212 | |||||
Promotional | 3,877 | 3,205 | |||||
Other | 5,868 | 7,009 | |||||
Total current liabilities | 74,153 | 99,719 | |||||
Non-current liabilities: | |||||||
Unrecognized tax benefits | 2,619 | 3,024 | |||||
Postretirement health care and deferred compensation benefits | 59,211 | 62,811 | |||||
Total non-current liabilities | 61,830 | 65,835 | |||||
Contingent liabilities and commitments | |||||||
Stockholders' equity: | |||||||
Capital stock common, par value $0.50; authorized 60,000 shares, issued 51,776 shares | 25,888 | 25,888 | |||||
Additional paid-in capital | 31,765 | 31,672 | |||||
Retained earnings | 576,665 | 554,496 | |||||
Accumulated other comprehensive loss | (2,721 | ) | (1,808 | ) | |||
Treasury stock, at cost (24,842 and 24,727 shares) | (420,835 | ) | (417,500 | ) | |||
Total stockholders' equity | 210,762 | 192,748 | |||||
Total liabilities and stockholders' equity | $ | 346,745 | $ | 358,302 |
Nine Months Ended | |||||||
(In thousands) | May 30, 2015 | May 31, 2014 | |||||
Operating activities: | |||||||
Net income | $ | 29,493 | $ | 32,124 | |||
Adjustments to reconcile net income to net cash used in operating activities: | |||||||
Depreciation and amortization | 3,284 | 2,962 | |||||
LIFO expense | 1,041 | 934 | |||||
Asset impairment | 462 | — | |||||
Stock-based compensation | 1,739 | 1,694 | |||||
Deferred income taxes | 2,793 | 464 | |||||
Postretirement benefit income and deferred compensation expense | (587 | ) | (752 | ) | |||
Provision for doubtful accounts | — | 1 | |||||
Gain on disposal of property | (20 | ) | (712 | ) | |||
Gain on life insurance | — | (726 | ) | ||||
Increase in cash surrender value of life insurance policies | (657 | ) | (651 | ) | |||
Change in assets and liabilities: | |||||||
Inventories | (10,768 | ) | (6,128 | ) | |||
Receivables, prepaid and other assets | 3,581 | (26,349 | ) | ||||
Investment in operating leases, net of repurchase obligations | (72 | ) | (429 | ) | |||
Income taxes and unrecognized tax benefits | (2,375 | ) | 1,986 | ||||
Accounts payable and accrued expenses | (6,308 | ) | 8,851 | ||||
Postretirement and deferred compensation benefits | (3,049 | ) | (3,080 | ) | |||
Net cash provided by operating activities | 18,557 | 10,189 | |||||
Investing activities: | |||||||
Proceeds from the sale of investments, at par | — | 2,350 | |||||
Proceeds from life insurance | — | 1,737 | |||||
Purchases of property and equipment | (14,174 | ) | (7,005 | ) | |||
Proceeds from the sale of property | 43 | 2,403 | |||||
Other | 435 | (1,123 | ) | ||||
Net cash used in investing activities | (13,696 | ) | (1,638 | ) | |||
Financing activities: | |||||||
Payments for purchases of common stock | (6,166 | ) | (24,324 | ) | |||
Payments of cash dividends | (7,324 | ) | — | ||||
Proceeds from exercise of stock options | — | 2,080 | |||||
Borrowings on loans | 22,000 | — | |||||
Repayments of loans | (22,000 | ) | — | ||||
Other | 40 | (94 | ) | ||||
Net cash used in financing activities | (13,450 | ) | (22,338 | ) | |||
Net decrease in cash and cash equivalents | (8,589 | ) | (13,787 | ) | |||
Cash and cash equivalents at beginning of period | 57,804 | 64,277 | |||||
Cash and cash equivalents at end of period | $ | 49,215 | $ | 50,490 | |||
Supplement cash flow disclosure: | |||||||
Income taxes paid, net of refunds | $ | 12,631 | $ | 11,814 | |||
Interest paid | $ | 10 | $ | — |
Fair Value Measurements Using Inputs Considered As | ||||||||||||||||
(In thousands) | Fair Value at May 30, 2015 | Level 1 Quoted Prices in Active Markets for Identical Assets | Level 2 Significant Other Observable Inputs | Level 3 Significant Unobservable Inputs | ||||||||||||
Assets that fund deferred compensation: | ||||||||||||||||
Domestic equity funds | $ | 5,061 | $ | 5,061 | $ | — | $ | — | ||||||||
International equity funds | 488 | 488 | — | — | ||||||||||||
Fixed income funds | 245 | 245 | — | — | ||||||||||||
Total assets at fair value | $ | 5,794 | $ | 5,794 | $ | — | $ | — |
Fair Value Measurements Using Inputs Considered As | ||||||||||||||||
(In thousands) | Fair Value at August 30, 2014 | Level 1 Quoted Prices in Active Markets for Identical Assets | Level 2 Significant Other Observable Inputs | Level 3 Significant Unobservable Inputs | ||||||||||||
Assets that fund deferred compensation: | ||||||||||||||||
Domestic equity funds | $ | 5,465 | $ | 5,465 | $ | — | $ | — | ||||||||
International equity funds | 716 | 716 | — | — | ||||||||||||
Fixed income funds | 242 | 242 | — | — | ||||||||||||
Total assets at fair value | $ | 6,423 | $ | 6,423 | $ | — | $ | — |
Three Months Ended | Nine Months Ended | |||||||||||||||
(In thousands) | May 30, 2015 | May 31, 2014 | May 30, 2015 | May 31, 2014 | ||||||||||||
Balance at beginning of period | $ | — | $ | — | $ | — | $ | 2,108 | ||||||||
Net change included in other comprehensive income | — | — | — | 242 | ||||||||||||
Sales | — | — | — | (2,350 | ) | |||||||||||
Balance at end of period | $ | — | $ | — | $ | — | $ | — |
(In thousands) | May 30, 2015 | August 30, 2014 | ||||||
Finished goods | $ | 28,379 | $ | 28,029 | ||||
Work-in-process | 59,641 | 49,919 | ||||||
Raw materials | 66,896 | 66,200 | ||||||
Total | 154,916 | 144,148 | ||||||
LIFO reserve | (32,341 | ) | (31,300 | ) | ||||
Total inventories | $ | 122,575 | $ | 112,848 |
(In thousands) | May 30, 2015 | August 30, 2014 | ||||||
Land | $ | 1,874 | $ | 738 | ||||
Buildings and building improvements | 53,360 | 47,273 | ||||||
Machinery and equipment | 93,586 | 90,101 | ||||||
Software | 6,130 | 4,356 | ||||||
Transportation | 3,682 | 9,098 | ||||||
Total property, plant and equipment, gross | 158,632 | 151,566 | ||||||
Less accumulated depreciation | (123,986 | ) | (126,431 | ) | ||||
Total property, plant and equipment, net | $ | 34,646 | $ | 25,135 |
Three Months Ended | Nine Months Ended | |||||||||||||||
(In thousands) | May 30, 2015 | May 31, 2014 | May 30, 2015 | May 31, 2014 | ||||||||||||
Balance at beginning of period | $ | 9,856 | $ | 8,781 | $ | 9,501 | $ | 8,443 | ||||||||
Provision | 3,233 | 2,736 | 8,079 | 7,874 | ||||||||||||
Claims paid | (3,284 | ) | (2,599 | ) | (7,775 | ) | (7,399 | ) | ||||||||
Balance at end of period | $ | 9,805 | $ | 8,918 | $ | 9,805 | $ | 8,918 |
(In thousands) | May 30, 2015 | August 30, 2014 | ||||||
Postretirement health care benefit cost | $ | 36,052 | $ | 36,930 | ||||
Non-qualified deferred compensation | 19,920 | 21,014 | ||||||
Executive share option plan liability | 5,139 | 5,628 | ||||||
SERP benefit liability | 2,806 | 2,974 | ||||||
Executive deferred compensation | 305 | 213 | ||||||
Officer stock-based compensation | 411 | 627 | ||||||
Total postretirement health care and deferred compensation benefits | 64,633 | 67,386 | ||||||
Less current portion (1) | (5,422 | ) | (4,575 | ) | ||||
Long-term postretirement health care and deferred compensation benefits | $ | 59,211 | $ | 62,811 |
Date | Event | Dollar Cap Reduction | Liability Reduction (In thousands) | Amortization Period(1) | ||||
Fiscal 2005 | Established employer dollar caps | |||||||
January 2012 | Reduced employer dollar caps | 10% | $ | 4,598 | 7.8 | years | ||
January 2013 | Reduced employer dollar caps | 10% | $ | 4,289 | 7.5 | years | ||
January 2014 | Reduced employer dollar caps | 10% | $ | 3,580 | 7.3 | years | ||
January 2015 | Reduced employer dollar caps | 10% | $ | 1,524 | 7.1 | years |
Three Months Ended | Nine Months Ended | |||||||||||||||
(In thousands) | May 30, 2015 | May 31, 2014 | May 30, 2015 | May 31, 2014 | ||||||||||||
Interest cost | $ | 348 | $ | 380 | $ | 1,034 | $ | 1,160 | ||||||||
Service cost | 107 | 96 | 320 | 296 | ||||||||||||
Amortization of prior service benefit | (1,459 | ) | (1,482 | ) | (4,079 | ) | (4,168 | ) | ||||||||
Amortization of net actuarial loss | 399 | 274 | 1,066 | 803 | ||||||||||||
Net periodic postretirement benefit income | $ | (605 | ) | $ | (732 | ) | $ | (1,659 | ) | $ | (1,909 | ) | ||||
Payments for postretirement health care | $ | 231 | $ | 247 | $ | 707 | $ | 779 |
Three Months Ended | Nine Months Ended | |||||||||||||||
(Dollars in thousands) | May 30, 2015 | May 31, 2014 | May 30, 2015 | May 31, 2014 | ||||||||||||
Inventory repurchased: | ||||||||||||||||
Units | — | — | 54 | 14 | ||||||||||||
Dollars | $ | — | $ | — | $ | 7,325 | $ | 325 | ||||||||
Inventory resold: | ||||||||||||||||
Units | — | — | 55 | 14 | ||||||||||||
Cash collected | $ | — | $ | — | $ | 6,309 | $ | 257 | ||||||||
Loss realized | $ | — | $ | — | $ | 1,033 | $ | 68 | ||||||||
Units in ending inventory | — | — | — | — |
Three Months Ended | Nine Months Ended | |||||||||||||||
(In thousands, except per share data) | May 30, 2015 | May 31, 2014 | May 30, 2015 | May 31, 2014 | ||||||||||||
Income per share - basic | ||||||||||||||||
Net income | $ | 11,502 | $ | 11,385 | $ | 29,493 | $ | 32,124 | ||||||||
Weighted average shares outstanding | 26,932 | 27,209 | 26,942 | 27,552 | ||||||||||||
Net income per share - basic | $ | 0.43 | $ | 0.42 | $ | 1.09 | $ | 1.17 | ||||||||
Income per share - assuming dilution | ||||||||||||||||
Net income | $ | 11,502 | $ | 11,385 | $ | 29,493 | $ | 32,124 | ||||||||
Weighted average shares outstanding | 26,932 | 27,209 | 26,942 | 27,552 | ||||||||||||
Dilutive impact of awards and options outstanding | 98 | 110 | 100 | 114 | ||||||||||||
Weighted average shares and potential dilutive shares outstanding | 27,030 | 27,319 | 27,042 | 27,666 | ||||||||||||
Net income per share - assuming dilution | $ | 0.43 | $ | 0.42 | $ | 1.09 | $ | 1.16 |
Three Months Ended | ||||||||||||||||||||
May 30, 2015 | May 31, 2014 | |||||||||||||||||||
(In thousands) | Defined Benefit Pension Items | Unrealized Gains and Losses on Available- for-Sale Securities | Total | Defined Benefit Pension Items | Unrealized Gains and Losses on Available- for-Sale Securities | Total | ||||||||||||||
Balance at beginning of period | $ | (2,067 | ) | $ | — | $ | (2,067 | ) | $ | 1,890 | $ | — | $ | 1,890 | ||||||
OCI before reclassifications | — | — | — | — | — | — | ||||||||||||||
Amounts reclassified from AOCI | (654 | ) | — | (654 | ) | (752 | ) | — | (752 | ) | ||||||||||
Net current-period OCI | (654 | ) | — | (654 | ) | (752 | ) | — | (752 | ) | ||||||||||
Balance at end of period | $ | (2,721 | ) | $ | — | $ | (2,721 | ) | $ | 1,138 | $ | — | $ | 1,138 | ||||||
Nine Months Ended | ||||||||||||||||||||
May 30, 2015 | May 31, 2014 | |||||||||||||||||||
(In thousands) | Defined Benefit Pension Items | Unrealized Gains and Losses on Available- for-Sale Securities | Total | Defined Benefit Pension Items | Unrealized Gains and Losses on Available- for-Sale Securities | Total | ||||||||||||||
Balance at beginning of period | $ | (1,808 | ) | $ | — | $ | (1,808 | ) | $ | 1,000 | $ | (151 | ) | $ | 849 | |||||
OCI before reclassifications | 944 | — | 944 | 2,234 | 151 | 2,385 | ||||||||||||||
Amounts reclassified from AOCI | (1,857 | ) | — | (1,857 | ) | (2,096 | ) | — | (2,096 | ) | ||||||||||
Net current-period OCI | (913 | ) | — | (913 | ) | 138 | 151 | 289 | ||||||||||||
Balance at end of period | $ | (2,721 | ) | $ | — | $ | (2,721 | ) | $ | 1,138 | $ | — | $ | 1,138 |
Three Months Ended | Nine Months Ended | |||||||||||||||||
(In thousands) | Location on Consolidated Statements of Income and Comprehensive Income | May 30, 2015 | May 31, 2014 | May 30, 2015 | May 31, 2014 | |||||||||||||
Amortization of prior service credit | Operating expenses | $ | (903 | ) | $ | (925 | ) | $ | (2,525 | ) | $ | (2,601 | ) | |||||
Amortization of net actuarial loss | Operating expenses | 249 | 173 | 668 | 505 | |||||||||||||
Total reclassifications | $ | (654 | ) | $ | (752 | ) | $ | (1,857 | ) | $ | (2,096 | ) |
Rolling 12 Months Through April | Calendar Year | |||||||||||
US and Canada | 2015 | 2014 | 2014 | 2013 | 2012 | |||||||
Motorized A, B, C | 20.8 | % | 19.1 | % | 20.7 | % | 18.6 | % | 19.8 | % | ||
Travel trailer and fifth wheels | 0.9 | % | 0.9 | % | 0.8 | % | 1.0 | % | 0.9 | % |
Class A, B & C Motorhomes | Travel Trailers & Fifth Wheels | |||||||||||||||||
As of Quarter End | As of Quarter End | |||||||||||||||||
Wholesale | Retail | Dealer | Order | Wholesale | Retail | Dealer | Order | |||||||||||
(In units) | Deliveries | Registrations | Inventory | Backlog | Deliveries | Registrations | Inventory | Backlog | ||||||||||
Q4 2013 | 1,890 | 1,870 | 2,654 | 3,380 | 717 | 748 | 1,611 | 221 | ||||||||||
Q1 2014 | 2,005 | 1,524 | 3,135 | 3,534 | 484 | 504 | 1,591 | 151 | ||||||||||
Q2 2014 | 2,055 | 1,283 | 3,907 | 2,900 | 575 | 394 | 1,772 | 206 | ||||||||||
Q3 2014 (1) | 2,674 | 2,783 | 3,798 | 2,357 | 727 | 724 | 1,775 | 303 | ||||||||||
Rolling 12 months | 8,624 | 7,460 | 2,503 | 2,370 | ||||||||||||||
June 2013-May 2014 | ||||||||||||||||||
Q4 2014 | 2,364 | 2,183 | 3,979 | 1,899 | 723 | 777 | 1,721 | 163 | ||||||||||
Q1 2015 | 2,031 | 1,818 | 4,192 | 2,122 | 546 | 585 | 1,682 | 154 | ||||||||||
Q2 2015 | 2,104 | 1,518 | 4,778 | 2,275 | 605 | 410 | 1,877 | 130 | ||||||||||
Q3 2015 | 2,596 | 2,873 | 4,501 | 2,279 | 742 | 796 | 1,823 | 179 | ||||||||||
Rolling 12 months | 9,095 | 8,392 | 2,616 | 2,568 | ||||||||||||||
June 2014-May 2015 | ||||||||||||||||||
Unit change | 471 | 932 | 703 | (78 | ) | 113 | 198 | 48 | (124 | ) | ||||||||
Percentage change | 5.5 | % | 12.5 | % | 18.5 | % | (3.3 | )% | 4.5 | % | 8.4 | % | 2.7 | % | (40.9 | )% |
US and Canada Industry Class A, B & C Motorhomes | |||||||||||||||||||
Wholesale Shipments(1) | Retail Registrations(2) | ||||||||||||||||||
Calendar Year | Calendar Year | ||||||||||||||||||
(In units) | 2014 | 2013 | Unit Change | % Change | 2014 | 2013 | Unit Change | % Change | |||||||||||
Q1 | 11,125 | 8,500 | 2,625 | 30.9 | % | 8,076 | 7,147 | 929 | 13.0 | % | |||||||||
Q2 | 12,203 | 10,972 | 1,231 | 11.2 | % | 12,511 | 10,909 | 1,602 | 14.7 | % | |||||||||
Q3 | 10,704 | 9,469 | 1,235 | 13.0 | % | 10,740 | 9,125 | 1,615 | 17.7 | % | |||||||||
Q4 | 9,919 | 9,391 | 528 | 5.6 | % | 7,605 | 6,281 | 1,324 | 21.1 | % | |||||||||
Total | 43,951 | 38,332 | 5,619 | 14.7 | % | 38,932 | 33,462 | 5,470 | 16.3 | % | |||||||||
2015 | 2014 | Unit Change | % Change | 2015 | 2014 | Unit Change | % Change | ||||||||||||
Q1 | 11,963 | 11,125 | 838 | 7.5 | % | 9,102 | 8,076 | 1,026 | 12.7 | % | |||||||||
April | 4,459 | 4,092 | 367 | 9.0 | % | 4,632 | 4,300 | 332 | 7.7 | % | |||||||||
May | 4,718 | (3) | 4,486 | 232 | 5.2 | % | (4) | 4,149 | |||||||||||
June | 4,205 | (3) | 3,625 | 580 | 16.0 | % | (4) | 4,062 | |||||||||||
Q2 | 13,382 | (3) | 12,203 | 1,179 | 9.7 | % | (4) | 12,511 | |||||||||||
Q3 | 11,200 | (3) | 10,704 | 496 | 4.6 | % | (4) | 10,740 | |||||||||||
Q4 | 10,400 | (3) | 9,919 | 481 | 4.8 | % | (4) | 7,605 | |||||||||||
Total | 46,945 | (3) | 43,951 | 2,994 | 6.8 | % | 38,932 | ||||||||||||
YTD (5) | 16,422 | 15,217 | 1,205 | 7.9 | % | 13,734 | 12,376 | 1,358 | 11.0 | % |
(1) | Class A, B and C wholesale shipments as reported by RVIA. |
(2) | Class A, B and C retail registrations as reported by Stat Surveys for the US and Canada combined. |
(3) | Monthly and quarterly Class A, B and C wholesale shipments are based upon the forecast prepared by Dr. Richard Curtin of the University of Michigan Consumer Survey Research Center for RVIA and reported in the Roadsigns RV Summer 2015 Industry Forecast Issue. The revised RVIA annual 2015 wholesale shipment forecast is 47,000 and the annual forecast for 2016 is 49,100. |
(4) | Stat Surveys has not issued a projection for 2015 retail demand for this period. |
(5) | YTD wholesale shipments and retail registrations include January through April. |
US and Canada Travel Trailer & Fifth Wheel Industry | |||||||||||||||||||
Wholesale Shipments(1) | Retail Registrations(2) | ||||||||||||||||||
Calendar Year | Calendar Year | ||||||||||||||||||
(In units) | 2014 | 2013 | Unit Change | % Change | 2014 | 2013 | Unit Change | % Change | |||||||||||
Q1 | 75,458 | 66,745 | 8,713 | 13.1 | % | 45,996 | 42,987 | 3,009 | 7.0 | % | |||||||||
Q2 | 85,648 | 79,935 | 5,713 | 7.1 | % | 99,965 | 94,717 | 5,248 | 5.5 | % | |||||||||
Q3 | 65,543 | 61,251 | 4,292 | 7.0 | % | 87,713 | 79,805 | 7,908 | 9.9 | % | |||||||||
Q4 | 72,289 | 60,104 | 12,185 | 20.3 | % | 42,694 | 37,054 | 5,640 | 15.2 | % | |||||||||
Total | 298,938 | 268,035 | 30,903 | 11.5 | % | 276,368 | 254,563 | 21,805 | 8.6 | % | |||||||||
2015 | 2014 | Unit Change | % Change | 2015 | 2014 | Unit Change | % Change | ||||||||||||
Q1 | 81,759 | 75,458 | 6,301 | 8.4 | % | 53,678 | 45,996 | 7,682 | 16.7 | % | |||||||||
April | 32,569 | 28,269 | 4,300 | 15.2 | % | 33,352 | 29,611 | 3,741 | 12.6 | % | |||||||||
May | 30,931 | (3) | 29,467 | 1,464 | 5.0 | % | (4) | 35,770 | |||||||||||
June | 31,873 | (3) | 27,912 | 3,961 | 14.2 | % | (4) | 34,584 | |||||||||||
Q2 | 95,373 | (3) | 85,648 | 9,725 | 11.4 | % | (4) | 99,965 | |||||||||||
Q3 | 73,600 | (3) | 65,543 | 8,057 | 12.3 | % | (4) | 87,713 | |||||||||||
Q4 | 69,800 | (3) | 72,289 | (2,489 | ) | (3.4 | )% | (4) | 42,694 | ||||||||||
Total | 320,532 | (3) | 298,938 | 21,594 | 7.2 | % | 276,368 | ||||||||||||
YTD (5) | 114,328 | 103,727 | 10,601 | 10.2 | % | 87,030 | 75,607 | 11,423 | 15.1 | % |
(1) | Towable wholesale shipments as reported by RVIA. |
(2) | Towable retail registrations as reported by Stat Surveys for the US and Canada combined. |
(3) | Monthly and quarterly towable wholesale shipments are based upon the forecast prepared by Dr. Richard Curtin of the University of Michigan Consumer Survey Research Center for RVIA and reported in the Roadsigns RV Summer 2015 Industry Forecast Issue. The revised RVIA annual 2015 wholesale shipment forecast is 319,500 and the annual forecast for 2016 is 331,700. |
(4) | Stat Surveys has not issued a projection for retail demand for this period. |
(5) | YTD wholesale shipments and retail registrations include January through April. |
As Of | |||||||||||||||||
(In units) | May 30, 2015 | May 31, 2014 | (Decrease) Increase | % Change | |||||||||||||
Class A gas | 584 | 25.6 | % | 752 | 31.9 | % | (168 | ) | (22.3 | )% | |||||||
Class A diesel | 157 | 6.9 | % | 280 | 11.9 | % | (123 | ) | (43.9 | )% | |||||||
Total Class A | 741 | 32.5 | % | 1,032 | 43.8 | % | (291 | ) | (28.2 | )% | |||||||
Class B | 243 | 10.7 | % | 264 | 11.2 | % | (21 | ) | (8.0 | )% | |||||||
Class C | 1,295 | 56.8 | % | 1,061 | 45.0 | % | 234 | 22.1 | % | ||||||||
Total motorhome backlog(1) | 2,279 | 100.0 | % | 2,357 | 100.0 | % | (78 | ) | (3.3 | )% | |||||||
Travel trailer | 155 | 86.6 | % | 224 | 73.9 | % | (69 | ) | (30.8 | )% | |||||||
Fifth wheel | 24 | 13.4 | % | 79 | 26.1 | % | (55 | ) | (69.6 | )% | |||||||
Total towable backlog(1) | 179 | 100.0 | % | 303 | 100.0 | % | (124 | ) | (40.9 | )% | |||||||
Approximate backlog revenue in thousands(2) | |||||||||||||||||
Motorhomes | $ | 196,915 | $ | 219,676 | $ | (22,761 | ) | (10.4 | )% | ||||||||
Towables | $ | 4,512 | $ | 6,072 | $ | (1,560 | ) | (25.7 | )% |
(1) | Percentages may not add due to rounding differences. |
(2) | Our backlog includes all accepted purchase orders from dealers to be shipped within the next six months. Orders in backlog can be cancelled or postponed at the option of the purchaser and, therefore, backlog may not necessarily be an accurate measure of future sales. |
May 30, 2015 | May 31, 2014 | Increase | % Change | ||||||
Motorhomes | 4,501 | 3,798 | 703 | 18.5 | % | ||||
Towables | 1,823 | 1,775 | 48 | 2.7 | % |
• | The first strategic initiative relates to the execution of an ERP system implementation which will replace our in-house developed financial and operation legacy systems and provide better support for our changing business needs and plans for future growth. We believe that this project will deliver long-term cost savings through supply chain management optimization and operational improvements once completed, in addition to a reduction in system maintenance, internal development and support costs. Our current estimate for completion of this project is $12 - $16 million over a three-year time frame which includes software, external implementation assistance and increased internal staffing directly related to this initiative. We anticipate that approximately 40% of the cost will be immediately expensed over the life of the project and 60% will be capitalized. As components of the ERP are placed in service, we will depreciate over a 10 year life. The following table illustrates the project costs in Fiscal 2015: |
Fiscal 2015 | |||||||||||||
Second Qtr | Third Qtr | YTD | |||||||||||
Capitalized | $ | 537 | $ | 884 | $ | 1,421 | |||||||
Expensed | 652 | 611 | (1) | 1,263 | |||||||||
Total | $ | 1,189 | $ | 1,495 | $ | 2,684 |
• | The second initiative is a strategic sourcing project with the objective of obtaining long-term material cost savings through standardizing our purchasing processes, optimizing our supplier relationships and improving our current sourcing methodologies. We have engaged external support with deep domain expertise to help us conduct this project and, as a result, we expect to incur up to $2.8 million in general and administrative expenses for this assistance, of which $375,000 and $1.3 million was incurred in the third quarter and first nine months of Fiscal 2015, respectively. We expect to incur approximately $400,000 of incremental general and administrative expense for the remainder of Fiscal 2015 and $1.1 million in Fiscal 2016; the project is planned to be completed in June 2016 based on current internal staffing support. When fully implemented, we anticipate this investment will provide gross margin increase of 30 to 50 basis points. |
Three Months Ended | ||||||||||||||||||
(In thousands, except percent and per share data) | May 30, 2015 | % of Revenues(1) | May 31, 2014 | % of Revenues(1) | Increase (Decrease) | % Change | ||||||||||||
Net revenues | $ | 266,510 | 100.0 | % | $ | 247,747 | 100.0 | % | $ | 18,763 | 7.6 | % | ||||||
Cost of goods sold | 238,327 | 89.4 | % | 221,266 | 89.3 | % | 17,061 | 7.7 | % | |||||||||
Gross profit | 28,183 | 10.6 | % | 26,481 | 10.7 | % | 1,702 | 6.4 | % | |||||||||
Selling | 5,150 | 1.9 | % | 4,887 | 2.0 | % | 263 | 5.4 | % | |||||||||
General and administrative | 6,453 | 2.4 | % | 6,005 | 2.4 | % | 448 | 7.5 | % | |||||||||
Impairment of fixed asset | 462 | 0.2 | % | — | — | % | 462 | NMF | ||||||||||
Operating expenses | 12,065 | 4.5 | % | 10,892 | 4.4 | % | 1,173 | 10.8 | % | |||||||||
Operating income | 16,118 | 6.0 | % | 15,589 | 6.3 | % | 529 | 3.4 | % | |||||||||
Non-operating income | — | — | % | 735 | 0.3 | % | (735 | ) | (100.0 | )% | ||||||||
Income before income taxes | 16,118 | 6.0 | % | 16,324 | 6.6 | % | (206 | ) | (1.3 | )% | ||||||||
Provision for taxes | 4,616 | 1.7 | % | 4,939 | 2.0 | % | (323 | ) | (6.5 | )% | ||||||||
Net income | $ | 11,502 | 4.3 | % | $ | 11,385 | 4.6 | % | $ | 117 | 1.0 | % | ||||||
Diluted income per share | $ | 0.43 | $ | 0.42 | $ | 0.01 | 2.4 | % | ||||||||||
Diluted average shares outstanding | 27,030 | 27,319 | (289 | ) | (1.1 | )% |
Three Months Ended | ||||||||||||||||||
(In units) | May 30, 2015 | Product Mix % (1) | May 31, 2014 | Product Mix % (1) | (Decrease) Increase | % Change | ||||||||||||
Motorhomes: | ||||||||||||||||||
Class A gas | 601 | 23.2 | % | 786 | 33.7 | % | (185 | ) | (23.5 | )% | ||||||||
Class A diesel | 285 | 11.0 | % | 280 | 12.0 | % | 5 | 1.8 | % | |||||||||
Total Class A | 886 | 34.1 | % | 1,066 | 45.7 | % | (180 | ) | (16.9 | )% | ||||||||
Class B | 270 | 10.4 | % | 224 | 9.6 | % | 46 | 20.5 | % | |||||||||
Class C | 1,440 | 55.5 | % | 1,041 | 44.7 | % | 399 | 38.3 | % | |||||||||
Total motorhome deliveries | 2,596 | 100.0 | % | 2,331 | 100.0 | % | 265 | 11.4 | % | |||||||||
ASP (in thousands) | $ | 91.0 | $ | 93.9 | $ | (2.9 | ) | (3.1 | )% | |||||||||
Towables: | ||||||||||||||||||
Travel trailer | 598 | 80.6 | % | 598 | 82.3 | % | — | — | % | |||||||||
Fifth wheel | 144 | 19.4 | % | 129 | 17.7 | % | 15 | 11.6 | % | |||||||||
Total towable deliveries | 742 | 100.0 | % | 727 | 100.0 | % | 15 | 2.1 | % | |||||||||
ASP (in thousands) | $ | 26.9 | $ | 23.9 | $ | 3.0 | 12.4 | % |
Three Months Ended | ||||||||||||||||||
(In thousands) | May 30, 2015 | May 31, 2014 | Increase (Decrease) | % Change | ||||||||||||||
Motorhomes (1) | $ | 237,548 | 89.1 | % | $ | 221,191 | 89.3 | % | $ | 16,357 | 7.4 | % | ||||||
Towables (2) | 19,902 | 7.5 | % | 17,174 | 6.9 | % | 2,728 | 15.9 | % | |||||||||
Other manufactured products | 9,060 | 3.4 | % | 9,382 | 3.8 | % | (322 | ) | (3.4 | )% | ||||||||
Total net revenues | $ | 266,510 | 100.0 | % | $ | 247,747 | 100.0 | % | $ | 18,763 | 7.6 | % |
(1) | Includes motorhome units, parts and services, and net motorhome lease revenue. |
(2) | Includes towable units and parts. |
• | Approximately $11 million of the incremental revenues was due to the change in our sales agreement with Apollo, a US RV rental company. During the third quarter of Fiscal 2015 we delivered 360 rental units to Apollo. During the third quarter of Fiscal 2014 we delivered 520 rental units to Apollo, of which only 177 were reported as motorhome sales; the remaining 343 were recorded as operating leases. |
• | Motorhome ASP dropped slightly due to a shift from Class A products to Class B and C unit sales in the third quarter of Fiscal 2015. This is also related to the increase in lower-priced rental motorhomes in the current quarter. |
• | Total variable costs (materials, direct labor, variable overhead, delivery expense and warranty), as a percent of net revenues, slightly increased to 84.1% compared to 84.0%. |
• | Fixed overhead (manufacturing support labor, depreciation and facility costs) and research and development-related costs were flat at 5.3% of net revenues in both periods. |
• | All factors considered, gross profit decreased to 10.6% from 10.7% of net revenues. Towables showed improved gross margins, but this was offset by higher manufacturing inefficiencies in motorhomes, which represent a much larger proportion of our revenues. |
Nine Months Ended | ||||||||||||||||||
(In thousands, except percent and per share data) | May 30, 2015 | % of Revenues(1) | May 31, 2014 | % of Revenues(1) | Increase (Decrease) | % Change | ||||||||||||
Net revenues | $ | 725,456 | 100.0 | % | $ | 699,228 | 100.0 | % | $ | 26,228 | 3.8 | % | ||||||
Cost of goods sold | 648,629 | 89.4 | % | 623,940 | 89.2 | % | 24,689 | 4.0 | % | |||||||||
Gross profit | 76,827 | 10.6 | % | 75,288 | 10.8 | % | 1,539 | 2.0 | % | |||||||||
Selling | 14,703 | 2.0 | % | 13,709 | 2.0 | % | 994 | 7.3 | % | |||||||||
General and administrative | 19,154 | 2.6 | % | 16,577 | 2.4 | % | 2,577 | 15.5 | % | |||||||||
Impairment (gain) on fixed assets | 462 | 0.1 | % | (629 | ) | (0.1 | )% | 1,091 | (173.4 | )% | ||||||||
Operating expenses | 34,319 | 4.7 | % | 29,657 | 4.2 | % | 4,662 | 15.7 | % | |||||||||
Operating income | 42,508 | 5.9 | % | 45,631 | 6.5 | % | (3,123 | ) | (6.8 | )% | ||||||||
Non-operating income | 35 | — | % | 752 | 0.1 | % | (717 | ) | (95.3 | )% | ||||||||
Income before income taxes | 42,543 | 5.9 | % | 46,383 | 6.6 | % | (3,840 | ) | (8.3 | )% | ||||||||
Provision for taxes | 13,050 | 1.8 | % | 14,259 | 2.0 | % | (1,209 | ) | (8.5 | )% | ||||||||
Net income | $ | 29,493 | 4.1 | % | $ | 32,124 | 4.6 | % | $ | (2,631 | ) | (8.2 | )% | |||||
Diluted income per share | $ | 1.09 | $ | 1.16 | $ | (0.07 | ) | (6.0 | )% | |||||||||
Diluted average shares outstanding | 27,042 | 27,666 | (624 | ) | (2.3 | )% |
Nine Months Ended | ||||||||||||||||||
(In units) | May 30, 2015 | Product Mix % (1) | May 31, 2014 | Product Mix % (1) | (Decrease) Increase | % Change | ||||||||||||
Motorhomes: | ||||||||||||||||||
Class A gas | 1,740 | 25.9 | % | 2,085 | 32.6 | % | (345 | ) | (16.5 | )% | ||||||||
Class A diesel | 883 | 13.1 | % | 1,133 | 17.7 | % | (250 | ) | (22.1 | )% | ||||||||
Total Class A | 2,623 | 39.0 | % | 3,218 | 50.4 | % | (595 | ) | (18.5 | )% | ||||||||
Class B | 735 | 10.9 | % | 524 | 8.2 | % | 211 | 40.3 | % | |||||||||
Class C | 3,373 | 50.1 | % | 2,649 | 41.4 | % | 724 | 27.3 | % | |||||||||
Total motorhome deliveries (2) | 6,731 | 100.0 | % | 6,391 | 100.0 | % | 340 | 5.3 | % | |||||||||
ASP (in thousands) | $ | 96.1 | $ | 98.1 | $ | (2.0 | ) | (2.1 | )% | |||||||||
Towables: | ||||||||||||||||||
Travel trailer | 1,567 | 82.8 | % | 1,468 | 82.2 | % | 99 | 6.7 | % | |||||||||
Fifth wheel | 326 | 17.2 | % | 318 | 17.8 | % | 8 | 2.5 | % | |||||||||
Total towable deliveries | 1,893 | 100.0 | % | 1,786 | 100.0 | % | 107 | 6.0 | % | |||||||||
ASP (in thousands) | $ | 26.0 | $ | 23.3 | $ | 2.7 | 11.6 | % |
Nine Months Ended | ||||||||||||||||||
(In thousands) | May 30, 2015 | May 31, 2014 | Increase (Decrease) | % Change | ||||||||||||||
Motorhomes (1) | $ | 652,919 | 90.0 | % | $ | 632,982 | 90.5 | % | $ | 19,937 | 3.1 | % | ||||||
Towables (2) | 48,859 | 6.7 | % | 41,431 | 5.9 | % | 7,428 | 17.9 | % | |||||||||
Other manufactured products | 23,678 | 3.3 | % | 24,815 | 3.6 | % | (1,137 | ) | (4.6 | )% | ||||||||
Total net revenues | $ | 725,456 | 100.0 | % | $ | 699,228 | 100.0 | % | $ | 26,228 | 3.8 | % |
(1) | Includes motorhome units, parts and services. |
(2) | Includes towable units and parts. |
• | Approximately $11 million of the incremental revenues was due to the change in our sales agreement with Apollo, a US RV rental company. During the third quarter of Fiscal 2015 we delivered 360 rental units to Apollo. During the third quarter of Fiscal 2014 we delivered 520 rental units to Apollo, of which only 177 were reported as motorhome sales; the remaining 343 were recorded as operating leases due to a repurchase obligation in Fiscal 2014. |
• | Motorhome ASP decreased 2.1% as compared to the first nine months of Fiscal 2014. The decrease in ASP was primarily due to a lower percentage of class A gas and diesel unit sales in the first nine months of Fiscal 2015. |
• | Total variable costs (materials, direct labor, variable overhead, delivery expense and warranty), as a percent of net revenues, increased to 84.1% in Fiscal 2015 compared to 83.9% in Fiscal 2014. The increase is primarily due to higher manufacturing inefficiencies in Fiscal 2015. |
• | Fixed overhead (manufacturing support labor, depreciation and facility costs) and research and development-related costs were flat at 5.3% of net revenues in both periods. |
• | All factors considered, gross profit decreased to 10.6% from 10.8% of net revenues. |
• | Generation of net income of $29.5 million |
• | Purchases of property and equipment of $14.2 million |
• | Increase in inventory of $10.8 million |
• | Dividend payments of $7.3 million |
• | Stock repurchases of $6.2 million |
Period | Total Number of Shares Purchased | Average Price Paid per Share | Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs | ||||||||||
03/01/15 - 04/04/15 | — | $ | — | — | $ | 7,442,000 | ||||||||
04/05/15 - 05/02/15 | 787 | $ | 21.00 | 787 | $ | 7,425,000 | ||||||||
05/03/15 - 05/30/15 | 408 | $ | 21.21 | 408 | $ | 7,417,000 | ||||||||
Total | 1,195 | $ | 21.07 | 1,195 | $ | 7,417,000 |
31.1 | Certification by the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 dated June 26, 2015. |
31.2 | Certification by the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 dated June 26, 2015. |
32.1 | Certification by the Chief Executive Officer pursuant to Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 dated June 26, 2015. |
32.2 | Certification by the Chief Financial Officer pursuant to Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 dated June 26, 2015. |
101.INS* | XBRL Instance Document |
101.SCH* | XBRL Taxonomy Extension Schema Document |
101.CAL* | XBRL Taxonomy Extension Calculation Linkbase Document |
101.DEF* | XBRL Taxonomy Extension Definitions Linkbase Document |
101.LAB* | XBRL Taxonomy Extension Label Linkbase Document |
101.PRE* | XBRL Taxonomy Extension Presentation Linkbase Document |
WINNEBAGO INDUSTRIES, INC. | ||||
Date: | June 26, 2015 | By | /s/ Randy J. Potts | |
Randy J. Potts | ||||
Chief Executive Officer, President, Chairman of the Board | ||||
(Principal Executive Officer) | ||||
Date: | June 26, 2015 | By | /s/ Sarah N. Nielsen | |
Sarah N. Nielsen | ||||
Vice President, Chief Financial Officer | ||||
(Principal Financial and Accounting Officer) |
1. | I have reviewed this Quarterly Report on Form 10-Q of Winnebago Industries, Inc. (the "Registrant"); |
2. | Based on my knowledge, this Report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this Report; |
3. | Based on my knowledge, the financial statements and other financial information included in this Report fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this Report; |
4. | The Registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have: |
a. | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this Report is being prepared; |
b. | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | evaluated the effectiveness of the Registrant's disclosure controls and procedures and presented in this Report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this Report based on such evaluation; and |
d. | disclosed in this Report any change in the Registrant's internal control over financial reporting that occurred during the Registrant's most recent fiscal quarter (the Registrant's third fiscal quarter in this case) that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting; and |
5. | The Registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant's auditors and the audit committee of Registrant's Board of Directors (or persons performing the equivalent functions): |
a. | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant's ability to record, process, summarize and report financial information; and |
b. | any fraud, whether or not material, that involved management or other employees who have a significant role in the Registrant's internal control over financial reporting. |
Date: | June 26, 2015 | By: | /s/ Randy J. Potts | |
Randy J. Potts | ||||
Chief Executive Officer, President, | ||||
Chairman of the Board |
1. | I have reviewed this Quarterly Report on Form 10-Q of Winnebago Industries, Inc. (the "Registrant"); |
2. | Based on my knowledge, this Report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this Report; |
3. | Based on my knowledge, the financial statements and other financial information included in this Report fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this Report; |
4. | The Registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have: |
a. | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this Report is being prepared; |
b. | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | evaluated the effectiveness of the Registrant's disclosure controls and procedures and presented in this Report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this Report based on such evaluation; and |
d. | disclosed in this Report any change in the Registrant's internal control over financial reporting that occurred during the Registrant's most recent fiscal quarter (the Registrant's third fiscal quarter in this case) that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting; and |
5. | The Registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant's auditors and the audit committee of Registrant's Board of Directors (or persons performing the equivalent functions): |
a. | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant's ability to record, process, summarize and report financial information; and |
b. | any fraud, whether or not material, that involved management or other employees who have a significant role in the Registrant's internal control over financial reporting. |
Date: | June 26, 2015 | By: | /s/ Sarah N. Nielsen | |
Sarah N. Nielsen | ||||
Vice President, Chief Financial Officer |
a. | This Quarterly Report on Form 10-Q (“periodic report”) of Winnebago Industries, Inc. (the “issuer”), for the fiscal quarter ended May 30, 2015 as filed with the Securities and Exchange Commission on the date of this certificate, which this statement accompanies, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and |
b. | the information contained in this periodic report fairly represents, in all material respects, the financial condition and results of operations of the issuer. |
Date: | June 26, 2015 | By: | /s/ Randy J. Potts | |
Randy J. Potts | ||||
Chief Executive Officer, President, | ||||
Chairman of the Board |
a. | This Quarterly Report on Form 10-Q (“periodic report”) of Winnebago Industries, Inc. (the “issuer”), for the fiscal quarter ended May 30, 2015 as filed with the Securities and Exchange Commission on the date of this certificate, which this statement accompanies, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and |
b. | the information contained in this periodic report fairly represents, in all material respects, the financial condition and results of operations of the issuer. |
Date: | June 26, 2015 | By: | /s/ Sarah N. Nielsen | |
Sarah N. Nielsen | ||||
Vice President, Chief Financial Officer |
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