EX-99.1 3 winnebago035369_ex99-1.txt EXHIBIT 99.1 Contact: Sheila Davis, PR/IR Manager 641/585-6803 sdavis@winnebagoind.com WINNEBAGO INDUSTRIES REPORTS RECORD FIRST QUARTER REVENUES AND EARNINGS PER SHARE FOREST CITY, IOWA, December 17, 2003 - Winnebago Industries, Inc., (NYSE:WGO), the leading United States (U.S.) motor home manufacturer, today reported record results for the Company's first quarter ended November 29, 2003. Revenues for the first quarter of fiscal 2004 were a record $254.9 million, a 9.3 percent increase compared to revenues of $233.3 million for the first quarter of fiscal 2003. Net income for the first quarter was $18.1 million, an 11.0 percent increase compared to net income of $16.3 million for the first quarter last year. On a diluted per share basis, the Company earned a record $1.01 a share for the first quarter of fiscal 2004, a 18.8 percent increase compared to net income per diluted share of 85 cents a share for the first quarter last year. Included in net income in the first quarter of fiscal 2003 was $400,000, or two cents a share, from the Company's discontinued operations. As previously announced on October 20, 2003, Winnebago Industries repurchased 1,450,000 shares of stock for $44.1235 per share from Hanson Capital Partners, LLC, controlled by the Company's founder John K. Hanson and his wife, Luise. This reduced the Company's cash balance and stockholders' equity by $63,979,000. "We are extremely pleased with the growth in the Company's first quarter revenues and earnings," said Winnebago Industries' Chairman, CEO and President Bruce D. Hertzke. "The increases in revenues and net income are the result of the excellent acceptance of Winnebago Industries' new 2004 motor homes, particularly the Company's new and redesigned diesel models, the Winnebago Journey and Vectra and the Itasca Meridian and Horizon. Fiscal 2004 is off to a strong start as evidenced by the Company's 42 percent increase in sales order backlog of 2,768 motor homes as of November 29, 2003, compared to 1,950 motor homes on November 30, 2002." Low interest rates and high consumer confidence levels are positive economic factors for the RV industry. Hertzke continued, "If interest rates remain at relatively low historic levels and consumer confidence levels continue to rise in coming months, we believe we will see continued improvements in motor home sales throughout the year." "At the National RV trade show in Louisville, Kentucky, in early December, we were pleased with the positive response to the Company's new product introductions, particularly our new Class A diesel models, as well as the new triple-slide Winnebago Adventurer and Itasca Suncruiser Class A gas motor homes," said Hertzke. "Our dealers appear to be extremely optimistic about the retail sales environment for the remainder of calendar 2003 and for calendar 2004." Also during the recent Louisville Show, Winnebago Industries accepted the prestigious Quality Circle Award for the eighth consecutive year from the Recreation Vehicle Dealer Association. Winnebago Industries is the only company to receive the award for all eight years since its inception. Hertzke noted, "We are very honored and gratified to receive this award. Our employees have worked extremely hard to insure that Winnebago Industries' products and services meet our dealers' high quality expectations." About Winnebago Industries -------------------------- Winnebago Industries, Inc. is the leading United States manufacturer of motor homes, self-contained recreation vehicles used primarily in leisure travel and outdoor recreation activities. The Company builds quality motor homes under the Winnebago, Itasca, Rialta and Ultimate brand names with state-of-the-art computer-aided design and manufacturing systems on automotive-styled assembly lines. The Company's common stock is listed on the New York, Chicago and Pacific 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, to add your name to an automatic email list for Company news releases or for information on a dollar-based stock investment service for the Company's stock, visit, http://www.winnebagoind.com/html/company/investorRelations.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 reactions to actual or threatened terrorist attacks, the availability and price of fuel, a significant increase in interest rates, a slowdown in the economy, availability of chassis, sales order cancellations, slower than anticipated sales of new or existing products, new products introduced by competitors 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. Winnebago Industries, Inc. Unaudited Consolidated Statements of Income (In thousands, except per share amounts) Thirteen Weeks Thirteen Weeks Ended Ended Nov. 29, 2003 Nov. 30, 2002 -------------- -------------- Net revenues $ 254,933 $ 233,347 Cost of goods sold 215,468 198,275 ---------------------------------- Gross profit 39,465 35,072 ---------------------------------- Operating expenses Selling 4,561 4,687 General and administrative 5,738 5,104 ---------------------------------- Total operating expenses 10,299 9,791 ---------------------------------- Operating income 29,166 25,281 Financial income 303 275 ---------------------------------- Pre-tax income 29,469 25,556 Provision for taxes 11,402 9,678 ---------------------------------- Income from continuing operations 18,067 15,878 Income from discontinued operations (net of taxes) -- 400 ---------------------------------- Net income $ 18,067 $ 16,278 ================================== Income per share - basic From continuing operations $ 1.02 $ 0.85 From discontinued operations -- 0.02 ---------------------------------- Net income $ 1.02 $ 0.87 ================================== Number of shares used in per share calculations - basic 17,649 18,719 ================================== Income per share - diluted From continuing operations $ 1.01 $ 0.83 From discontinued operations -- 0.02 ---------------------------------- Net income $ 1.01 $ 0.85 Number of shares used in per share calculations - diluted 17,923 19,107 ================================== Certain prior year information has been reclassified to conform to the current year presentation. Winnebago Industries, Inc. Unaudited Consolidated Condensed Balance Sheets (In thousands) Nov. 29, 2003 Aug. 30, 2003 ------------- ------------- ASSETS Current assets Cash and cash equivalents $ 56,889 $ 99,381 Receivables 20,318 30,885 Inventories 127,881 114,282 Other 13,372 12,741 ------------------------------ Total current assets 218,460 257,289 Property and equipment, net 62,919 63,318 Deferred income taxes 22,545 22,491 Investment in life insurance 22,627 22,794 Other assets 12,272 11,570 ------------------------------ Total assets $338,823 $377,462 ============================== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable $ 44,275 $ 52,239 Income taxes payable 8,872 -- Accrued expenses 41,748 40,159 ------------------------------ Total current liabilities 94,895 92,398 Post retirement health care and deferred compensation benefits 76,684 74,438 Stockholders' equity 167,244 210,626 ------------------------------ Total liabilities and stockholders' equity $338,823 $377,462 ============================== Winnebago Industries, Inc. Unaudited Condensed Consolidated Statement of Cash Flows (Dollars in thousands) Thirteen Thirteen Weeks Weeks Ended Ended 11/29/2003 11/30/2002 ---------- ---------- Cash flows from operating activities Net income $ 18,067 $ 16,278 Income from discontinued operations -- (400) -------- -------- Income from continuing operations 18,067 15,878 Adjustments to reconcile net income to net cash provided by operating activities Depreciation and amortization 2,370 1,961 Tax benefit of stock options 1,297 550 Other (30) (63) Change in assets and liabilities Decrease in receivable and other assets 8,730 5,970 (Increase) decrease in inventories (13,599) 8,795 Increase in deferred income taxes (274) (1,312) Decrease in accounts payable and accrued expenses (6,375) (8,860) Increase in income taxes payable 10,297 10,595 Increase in postretirement benefits 1,733 1,568 -------- -------- Net cash provided by continuing operations 22,216 35,082 Net cash used in discontinued operations -- (2) -------- -------- Net cash provided by operating activities 22,216 35,080 -------- -------- Cash flows used in investing activities Purchases of property and equipment (2,047) (7,359) Other 85 (997) -------- -------- Net cash used in continuing operations (1,962) (8,356) Net cash used in discontinued operations -- (4,771) -------- -------- Net cash used in investing activities (1,962) (13,127) -------- -------- Cash flows (used in) provided by financing activities and capital transactions Payments for purchase of common stock (63,979) -- Payment of cash dividends (1,823) (7) Proceeds from issuance of common and treasury stock 3,056 1,913 -------- -------- Net cash (used in) provided by financing activities and capital transactions (62,746) 1,906 -------- -------- Net (decrease) increase in cash and cash equivalents (42,492) 23,859 Cash and cash equivalents - beginning of period 99,381 42,225 -------- -------- Cash and cash equivalents - end of period $ 56,889 $ 66,084 ======== ======== Winnebago Industries, Inc. Motor Home Deliveries (Volume in Units) Unaudited 1st Quarter 1st Quarter Ended Ended 11/29/2003 11/30/2002 ----------- ----------- Unit deliveries Class A gas 1,342 1,520 Class A diesel 529 407 Class C 1,091 998 --------------------------------- Total deliveries 2,962 2,925 Winnebago Industries, Inc. Unaudited Backlog and Dealer Inventory Nov. 29, 2003 Nov. 30, 2002 ------------- ------------- Sales order backlog Class A gas 1,023 996 Class A diesel 818 319 Class C 927 635 ------------------------------------ Total backlog* 2,768 1,950 Dealer inventory 4,429 4,602 * The Company includes in its backlog all accepted purchase orders from dealers shippable 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. # # #