Winnebago Industries to Resume Operations as Scheduled in May
Manufacturing Operations Update
As previously announced,
Newmar– week of May 4th
- Grand Design RV – week of
- Winnebago Motorhomes – week of
- Winnebago Towables – week of
Each business will be restarting operations in a graduated manner aligned with a confirmed base of existing orders. Future production rates and plans will vary by brand and are subject to change, as the Company will continue to evaluate the demand conditions present in its end markets and guidance from the
“We remain focused on ensuring the health and safety of our employees as we continue to gradually restart manufacturing operations around the Company in a disciplined approach, supported by committed demand from our valued channel partners,” said
“While the last many weeks have been challenging for all of our stakeholders in terms of business disruption, we are cautiously optimistic about several indicators within the outdoor industry, including an uptick in campground reservations and marina traffic in select areas, continued low gas prices and interest rates, easing of stay-at-home restrictions in some states leading to increased commerce conditions, and improved access to some state and national parks. Retail trends in mid to late April appear to be progressing in a healthier direction than earlier in the month.”
Since the beginning of the COVID-19 crisis,
Winnebago Industries is operating from a strong liquidity and financial position, with $123 million of cash on hand as of the end of February (the most recent fiscal quarter end) which has continued to materially increase during March and April. The Company also has access to a $193 million ABL credit facility, and considering its solid cash position, at this time has elected to forego drawing on this facility. The company will continue to evaluate its liquidity across several economic and RV industry scenarios and will work with its strategic banking partners to consider the appropriate alternatives to pursue in the capital markets for each of these scenarios.
Under its current credit facility,
“While we closely monitor community conditions related to the pandemic and track consumer appetite for our products and outdoor activity, our organization will continue to make necessary and critical decisions around expense management, capital deployment, and strategic product development that will ensure our long-term financial stability and position our incredible team to compete successfully in the future. We remain convinced that the powerful appeal of the outdoors will endure through these uncertain times and end consumers will increasingly be attracted to the RVing and boating lifestyle,” continued 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.