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Winnebago Industries Reports Results For First Quarter Fiscal 2012

December 15, 2011

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WINNEBAGO INDUSTRIES REPORTS RESULTS FOR
FIRST QUARTER FISCAL 2012

FOREST CITY, IOWA, December 15, 2011 - Winnebago Industries, Inc. (NYSE:WGO), one of the leading United States (U.S.) recreation vehicle manufacturers, today reported financial results for the Company's first quarter of fiscal year 2012.

Revenues for the first quarter of Fiscal 2012 ended November 26, 2011 were $131.8 million, an increase of 6.6 percent, versus $123.7 million for the first quarter of Fiscal 2011. Included within consolidated revenues was $10.1 million associated with towable products. The Company reported an operating profit of $627,000 for the quarter, versus $4.9 million for the first quarter of Fiscal 2011. Net income for the first quarter was $1.0 million versus $3.8 million for the first quarter of Fiscal 2011. On a diluted per share basis, the Company had net income of $0.04 for the first quarter of Fiscal 2012 versus $0.13 for the first quarter of Fiscal 2011.

The first quarter was negatively impacted by lower motor home deliveries, as well as lower plant utilization due to shortened work weeks, and positively impacted by an increased average selling price due to a shift of mix within the higher-priced Class A products.

“While we are disappointed that wholesale shipments within the RV industry are fairly flat with shipments in calendar 2010, we have seen overall market share improvement, driven by our growth in the Class A diesel market segment," said Winnebago Industries' CEO and President Randy Potts. According to Statistical Surveys, Inc., the retail reporting service for the RV industry, Winnebago Industries' combined market share for U.S. Class A and C motor homes was 18.8% calendar year to date through October, compared to 18.4% for the same period in 2010.

"We were pleased with traffic and dealer interest in our products at the National RV Trade Show in Louisville, KY, which was held November 29 through December 1, 2011," continued Potts. "The Winnebago Industries display featured our Winnebago, Itasca and Era motor homes, as well as our Winnebago and SunnyBrook brand towables. We had a number of new 2012 floorplans on display, including the spacious new Class A diesel Winnebago Journey and Itasca Meridian 42E tag-axle models that made their debut at the show. Our Towables display was also very busy with many dealers viewing the new and/or redesigned Winnebago and SunnyBrook products for the first time."

Conference Call
Winnebago Industries, Inc. will conduct a conference call in conjunction with this release at 9 a.m. Central Time today, Thursday, December 15, 2011. Members of the news media, investors and the general public are invited to access a live broadcast of the conference call via the Investor Relations page of the Company's website at http://www.winnebagoind.com/investor.html. The event will be archived and available for replay for the next 90 days.

About Winnebago Industries
Winnebago Industries, Inc., The Most Recognized Name In Motor Homes®, is a leading U.S. manufacturer of recreation vehicles used primarily in leisure travel and outdoor recreation activities. The Company builds quality motor homes, travel trailers and fifth wheel products under the Winnebago, Itasca, Era and SunnyBrook brand names. Winnebago Industries has received the Quality Circle Award from the Recreation Vehicle Dealers Association every year since the award's inception in 1996. The Company's common stock is listed on the New York and Chicago 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 or to add your name to an automatic email list for Company news releases, visit, http://www.winnebagoind.com/investor.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 increases in interest rates, availability of credit, low consumer confidence, significant increase in repurchase obligations, inadequate liquidity or capital resources, availability and price of fuel, a further or continued slowdown in the economy, availability of chassis and other key component parts, sales order cancellations, slower than anticipated sales of new or existing products, new product introductions by competitors, the effect of global tensions, integration of operations relating to mergers and acquisitions activities 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. The Company disclaims any obligation or undertaking to disseminate any updates or revisions to any forward looking statements contained in this release or to reflect any changes in the Company's expectations after the date of this release or any change in events, conditions or circumstances on which any statement is based, except as required by law.
# # #


Winnebago Industries, Inc.
Unaudited Consolidated Statements of Operations
(In thousands, except percent and per share data) 


Quarter Ended



November 26, 2011


November 27, 2010

Net revenues


$

131,837



100.0

%


$

123,711



100.0

%

Cost of goods sold


123,341



93.6

%


112,512



90.9

%

Gross profit


8,496



6.4

%


11,199



9.1

%










Operating expenses:









Selling


4,162



3.2

%


3,267



2.6

%

General and administrative


3,707



3.0

%


3,651



3.0

%

Gain on sale of asset held for sale


—



—

%


(644

)


(0.5

)%

Total operating expenses


7,869



6.0

%


6,274



5.1

%










Operating income


627



0.5

%


4,925



4.0

%

Non-operating income


257



0.2

%


152



0.1

%

Income before income taxes


884



0.7

%


5,077



4.1

%










(Benefit) provision for taxes


(151

)


(0.1

)%


1,291



1.0

%

Net income


$

1,035



0.8

%


$

3,786



3.1

%










Income per common share:









Basic


$

0.04





$

0.13




Diluted


$

0.04





$

0.13




Weighted average common shares outstanding:









Basic


29,138





29,112




Diluted


29,212





29,115






Winnebago Industries, Inc.
Unaudited Consolidated Balance Sheets
(In thousands)



November 26,
2011


August 27,
2011

ASSETS





Current assets:





Cash and cash equivalents


$

71,299



$

69,307


Short-term investments


250



—


Receivables, net


14,670



19,981


Inventories


65,190



69,165


Prepaid expenses and other assets


5,003



4,227


Income taxes receivable


913



1,525


Deferred income taxes


1,613



649


Total current assets


158,938



164,854


Property, plant, and equipment, net


21,930



22,589


Assets held for sale


600



600


Long-term investments


9,753



10,627


Investment in life insurance


23,434



23,669


Goodwill


1,228



1,228


Amortizable intangible assets


700



720


Other assets


15,054



15,640


Total assets


$

231,637



$

239,927







LIABILITIES AND STOCKHOLDERS' EQUITY





Current liabilities:





Accounts payable


$

15,580



$

21,610


Income taxes payable


115



104


Accrued expenses


27,267



29,604


Total current liabilities


42,962



51,318


Long-term liabilities:





Unrecognized tax benefits


5,213



5,387


Postretirement health care and deferred compensation benefits, net of current portion


74,074



74,492


Total long-term liabilities


79,287



79,879


Stockholders' equity


109,388



108,730


Total liabilities and stockholders' equity


$

231,637



$

239,927




Winnebago Industries, Inc.
Unaudited Consolidated Statements of Cash Flows
(In thousands)




Three Months Ended



November 26,
2011


November 27,
2010

Operating activities:





Net income


$

1,035



$

3,786


Adjustments to reconcile net income to net cash provided by operating activities:





Depreciation and amortization


1,311



1,430


LIFO expense


328



364


Stock-based compensation


177



80


Deferred income taxes including valuation allowance


(677

)


291


Postretirement benefit income and deferred compensation expenses


294



345


Provision for doubtful accounts


10



17


Increase in cash surrender value of life insurance policies


(256

)


(324

)

Loss (gain) on sale or disposal of property


6



(693

)

Gain on life insurance


(195

)


—


Other


16



29


Change in assets and liabilities:





Inventories


3,647



(2,011

)

Receivables and prepaid assets


4,525



2,246


     Income taxes and unrecognized tax benefits


495



974


Accounts payable and accrued expenses


(8,597

)


(3,435

)

Postretirement and deferred compensation benefits


(959

)


(926

)

Net cash provided by operating activities


1,160



2,173







Investing activities:





Proceeds from the sale of investments, at par


500



1,200


Proceeds from life insurance


643



—


Purchases of property and equipment


(456

)


(667

)

Proceeds from the sale of property


—



3,769


Other


112



24


Net cash provided by investing activities


799



4,326







Financing activities:





Payments for purchase of common stock


—



(89

)

    Other


33



64


Net cash provided by (used in) financing activities


33



(25

)






Net increase in cash and cash equivalents


1,992



6,474


Cash and cash equivalents at beginning of period


69,307



74,691


Cash and cash equivalents at end of period


$

71,299



$

81,165







Supplemental cash flow disclosure:





Income taxes paid


$

31



$

25




Winnebago Industries, Inc.
Unaudited Deliveries



Quarter Ended

(In units)


November 26,
2011

Product Mix
%


November 27,
2010

Product Mix
%


(Decrease) Increase

%
Change

Class A gas


381


36.6

%


389


34.9

%


(8

)

(2.1

)%

Class A diesel


232


22.3

%


270


24.2

%


(38

)

(14.1

)%

Total Class A


613


58.9

%


659


59.1

%


(46

)

(7.0

)%

Class B


79


7.6

%


1


0.1

%


78


NMF

Class C


348


33.5

%


455


40.8

%


(107

)

(23.5

)%

Total motor homes


1,040


100.0

%


1,115


100.0

%


(75

)

(6.7

)%











Fifth wheel


168


38.6

%







Travel trailer


267


61.4

%







Total towables


435


100.0

%










Winnebago Industries, Inc.
Unaudited Backlog


As Of

(In units)


November 26, 2011


November 27, 2010


(Decrease) Increase

%
Change

Class A gas


213


34.5

%


254


36.4

%


(41

)

(16.1

)%

Class A diesel


172


27.8

%


201


28.8

%


(29

)

(14.4

)%

Total Class A


385


62.3

%


455


65.2

%


(70

)

(15.4

)%

Class B


47


7.6

%


—


—

%


47


100.0%

Class C


186


30.1

%


243


34.8

%


(57

)

(23.5

)%

Total motor home backlog (1)


618


100.0

%


698


100.0

%


(80

)

(11.5

)%











Fifth wheel


180

39.1

%







Travel trailer


280

60.9

%







Total towable backlog (1)


460


100.0

%

















Approximate backlog revenue

in thousands










Motor homes


$

70,546




$

75,454




$

(4,908

)

(6.5

)%

Towables


$

10,381



















(1) We include in our backlog all accepted purchase orders from dealers to be shipped 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.






















Winnebago Industries, Inc.
Unaudited Dealer Inventory


As Of

(In units)


November 26,
2011


November 27,
2010


(Decrease)

%
Change

Motor homes


1,945



2,066



(121

)

(5.9

)%

Towables


1,146



—














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