UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): March 18, 2003
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Winnebago Industries, Inc.
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(Exact Name of Registrant as Specified in Charter)
Iowa 001-06403 42-0802678
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(State of Incorporation) (Commission (IRS Employer
File Number) Identification No.)
P.O. Box 152
Forest City, Iowa 50436
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(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: 641-585-3535
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(Former name or former address, if changed since last report)
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.
Ex. 99 Press release of Winnebago Industries, Inc. dated
March 18, 2003
SIGNATURE
Pursuant to the requirements of Section 12 of the Securities Exchange Act
of 1934, the Registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
Dated: March 18, 2003
By: /s/ Bruce D. Hertzke
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Name: Bruce D. Hertzke
Title: Chief Executive Officer
EXHIBIT INDEX
Exhibit
Number Description
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99 Press release of Winnebago Industries, Inc. dated March 18, 2003.
EXHIBIT 99
Contact: Sheila Davis
Public Relations/Investor Relations Manager
641/585-6803
FOR IMMEDIATE RELEASE
WINNEBAGO INDUSTRIES REPORTS
SECOND QUARTER/RECORD SIX MONTHS RESULTS
FOREST CITY, IOWA, March 18, 2003 -- Winnebago Industries, Inc. (NYSE: WGO), the
world's leading motor home manufacturer, today reported net income of $12.3
million for the second quarter ended March 1, 2003, a 30.9 percent increase
compared to net income of $9.4 million for the second quarter of fiscal 2002. On
a per share basis, the Company earned 64 cents per diluted share for the second
quarter of fiscal 2003, a 42.2 percent increase compared to 45 cents per diluted
share for the second quarter in fiscal 2002.
Revenues for the second quarter of fiscal 2003 were $186.7 million, an
increase of two percent when compared to revenues of $183.1 million for the
second quarter in fiscal 2002.
The results of the quarter benefited from an improved mix of products, the
favorable outcome of an annual physical inventory and lower stock-based
incentive compensation expense, and was partially offset by the start-up costs
of the new production facility in Charles City, Iowa.
Net income for the first 26 weeks of fiscal 2003 was a record $28.6 million,
a 41.6 percent increase when compared to the income of $20.2 million for the
first 27 weeks of fiscal 2002. On a per share basis, the Company earned a record
$1.50 per diluted share for the first 26 weeks of fiscal 2003, a 57.9 percent
increase compared to 95 cents per diluted share for the first 27 weeks of fiscal
2002.
For the 26 weeks of fiscal 2003, the Company reported record revenues of
$420.8 million, a 16.6 percent increase compared to $360.9 million for the first
27 weeks of fiscal 2002.
For the second quarter ended March 1, 2003, Winnebago Industries reported
factory shipments of 1,523 Class A and 736 Class C motor homes, compared to
shipments of 1,470 Class A and 978 Class C motor homes for the second quarter
last year. Class A motor home shipments in the second quarter of fiscal 2003
included 366 diesel units, compared to 404 diesel unit shipments in the second
quarter last year. Winnebago Industries' sales order backlog for Class A & C
motor homes was 1,890 on March 1, 2003, compared to 3,206 on March 2, 2002.
"We are extremely pleased with our strong earnings performance for the
second quarter and first six months of fiscal 2003," said Winnebago Industries'
Chairman, CEO and President Bruce D. Hertzke.
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Winnebago Industries' 2nd Quarter Results - Page 2
"However, due to the U.S. facing the lowest consumer confidence levels in
recent history and the geopolitical turmoil caused by the threat of war with
Iraq, it appears that the RV market has temporarily slowed. As a result of the
market slowdown and higher inventories, we have temporarily scheduled four-day
work weeks for our factories. Nonetheless, we believe long-term prospects remain
extremely positive. According to the University of Michigan "Consumer
Demographic Profile" study published in 2002 and conducted for the RV industry,
long-term prospects will be favorably impacted due to the increased popularity
of RVs, the growth in our prime target audience of people over age 50, and
broadening age range of people who are buying our motor homes," said Hertzke.
"Because of these long-term growth prospects, we've invested in our future
to ensure we are ready to meet the increased demand for our products when the
economy and geopolitical conditions normalize," Hertzke continued. "Although
there were start-up expenses for this highly automated new plant, we believe it
will help Winnebago Industries to continue to lead the industry in cost
effectiveness, product quality, customer satisfaction and corporate
profitability in the years ahead." Winnebago Industries began limited production
in the Company's new motor home production facility in Charles City, with the
first unit completed last week. Winnebago Industries is currently producing
Class C motor homes in this new facility, allowing incremental Class A
production in the Company's Forest City facility.
Dealer inventory levels of the Company's products were 4,944 on March 1,
2003, compared to 4,102 units at that time last year.
During the second quarter of fiscal 2003, Winnebago Industries completed
the stock repurchase program announced on June 19, 2002. Since June 2002,
450,200 shares of the Company's stock have been repurchased for an aggregate
purchase price of $14.8 million. Currently outstanding shares are 18,472,000.
This is Winnebago Industries' seventh stock repurchase program. Since the
initial repurchase program in December 1997, Winnebago Industries has
repurchased approximately 33 percent of our stock, 8,426,064 shares, at an
aggregate purchase price of $164.3 million. Hertzke said, "We continue to
believe that the repurchase of our stock is the best use of our excess capital
for our shareholders."
Winnebago Industries will host a live webcast to review second quarter
results today, March 18, 2003, at 10 a.m. EST and is available on the Company's
website at www.winnebagoind.com or at
www.shareholder.com/winnebago/medialist.cfm. It will be archived and available
for 90 days.
ABOUT WINNEBAGO INDUSTRIES
Winnebago Industries, Inc. is the leading 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,
www.winnebagoind.com/investor_relations.htm.
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Winnebago Industries' 2nd Quarter Results - Page 3
This press release contains 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, slower than
anticipated sales of new or existing products, new products introduced by
competitors, collections of dealer financing receivables 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)
26 WEEKS 27 WEEKS
QUARTER ENDED ENDED ENDED
3/1/2003 3/2/2002 3/1/2003 3/2/2002
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Net revenues $186,728 $183,055 $420,817 $360,857
Cost of goods sold 159,590 160,117 357,865 313,687
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Gross profit 27,138 22,938 62,952 47,170
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Operating expenses
Selling 4,068 4,493 8,755 9,310
General and administrative 2,950 5,031 8,087 9,135
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Total operating expenses 7,018 9,524 16,842 18,445
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Operating income 20,120 13,414 46,110 28,725
Financial income 312 912 493 1,804
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Pre-tax income 20,432 14,326 46,603 30,529
Provision for taxes 8,123 4,878 18,016 10,371
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Net income $ 12,309 $ 9,448 $ 28,587 $ 20,158
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Income per share - basic $ .66 $ .46 $ 1.52 $ .97
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Number of shares used in per share
calculations - basic 18,775 20,760 18,750 20,715
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Net income per share - diluted $ .64 $ .45 $ 1.50 $ .95
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Number of shares used in per share
calculations - diluted 19,112 21,215 19,113 21,157
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Certain prior year information has been reclassified to conform to the current
year presentation.
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Winnebago Industries' 2nd Quarter Results - Page 4
WINNEBAGO INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
MAR. 1, 2003 AUG. 31, 2002
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(Unaudited)
ASSETS
Current assets
Cash and cash equivalents $ 39,507 $ 42,225
Receivables 60,828 66,496
Inventories 127,405 113,654
Other 12,327 11,221
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Total current assets 240,067 233,596
Property and equipment, net 62,354 48,927
Deferred income taxes 22,956 22,438
Investment in life insurance 23,344 23,602
Other assets 9,484 8,514
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Total assets $358,205 $337,077
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 42,437 $ 44,230
Income taxes payable 4,347 2,610
Accrued expenses 41,950 41,761
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Total current liabilities 88,734 88,601
Post retirement health care and
deferred compensation benefits 70,489 68,661
Stockholders' equity 198,982 179,815
Total liabilities and stockholders' equity $358,205 $337,077
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