WINNEBAGO INDUSTRIES SHARES ADDITIONAL BUSINESS UPDATES RELATED TO COVID-19
“As the COVID-19 situation continues to evolve, we are prioritizing the health and safety of our employees and other stakeholders, while taking additional steps to maintain the Company’s financial flexibility,” said
Cost Containment and Financial Management Update
As previously announced, on
Michael Happewill reduce his salary by 25% for the remainder of Fiscal 2020 as well as forgo his entire Fiscal 2020 financial based annual incentive.
- The Winnebago Industries Board of Directors will reduce their cash compensation by 25% for the remainder of Fiscal 2020.
- The Executive Leadership Team’s cash compensation will be materially reduced for the remainder of fiscal 2020.
The Company will continue to carefully review executive and director compensation, as well as other salaried personnel costs, to identify other potential cost saving opportunities.
Additional cost containment and financial management measures the Company is taking include:
- Delaying certain capital expenses and reducing or eliminating non-critical business expenses.
- Implementing temporary hiring freezes in all locations for non-critical salaried positions.
- Postponing merit increases for salaried employees until the end of the fiscal year.
- Continually engaging with our strategic banking partners regarding appropriate options relative to future financial liquidity.
- Engaging proactively with dealers and suppliers to better understand market conditions and consumer sentiment.
- Communicating with inventory finance entities on their support of the dealer community.
Maintaining Financial Flexibility
Additionally, the Company has no significant debt maturities until November of 2023, and as of our most recent quarter end the company was well within our term loan covenant which requires a leverage ratio (net secured debt to TTM EBITDA) under 3.25.
As the health crisis has evolved,
“I want to recognize the hard work, flexibility and steadfast commitment our employees have shown to make these vital community support activities a reality. I have never been prouder to lead our team as we all come together to help one another in these challenging times,” concluded Happe.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about the anticipated duration of the suspension of the Company’s operations. 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 developments regarding the coronavirus situation and its impact on the Company’s employees, communities and other stakeholders. 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
Source: Winnebago Industries, Inc.