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) October 11, 2007
Winnebago Industries, Inc.
(Exact Name of Registrant as Specified in its Charter)
| Iowa | 001-06403 | 42-0802678 |
| (State or Other Jurisdiction | (Commission File Number) | (IRS Employer |
| of Incorporation) | Identification No.) | |
| P.O. Box 152, Forest City, Iowa | 50436 | |
| (Address of Principal Executive Offices) | (Zip Code) |
Registrant’s telephone number, including area code 641-585-3535
___________________________________________________________________
(Former Name or Former Address, if Changed Since Last Report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 Results of Operations and Financial Condition.
Winnebago Industries, Inc. is filing herewith a press release issued on October 11, 2007, as Exhibit 99.1 which is included herein. The press release was issued to report earnings for the fourth quarter and fiscal year 2007 ended August 25, 2007.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
| Exhibit Number |
Description | |||
|---|---|---|---|---|
| 99.1 | Press release of Winnebago Industries, Inc. dated October 11, 2007. | |||
SIGNATURES
Pursuant to the requirements 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: October 11, 2007 | WINNEBAGO INDUSTRIES, INC. | ||
| By: /s/ Bruce D. Hertzke | |||
| Name: Bruce D. Hertzke | |||
| Title: Chief Executive Officer |
EXHIBIT INDEX
| Exhibit Number |
Description | |||
|---|---|---|---|---|
| 99.1 | Press release of Winnebago Industries, Inc. dated October 11, 2007. | |||
Exhibit 99.1
Contact: Sheila Davis – PR/IR Mgr. - 641-585-6803 – sdavis@winnebagoind.com
WINNEBAGO INDUSTRIES REPORTS 59% NET INCOME
INCREASE
FOR THE FOURTH QUARTER OF FISCAL YEAR 2007
- Cash Dividend Announced -
FOREST CITY, IOWA, October 11, 2007 – Winnebago Industries, Inc. (NYSE:WGO), a leading United States motor home manufacturer, today reported financial results for the Company’s fourth quarter and fiscal year ended August 25, 2007.
Revenues for the fourth quarter ended August 25, 2007 were $237.7 million, an increase of 15.7 percent, compared to revenues of $205.4 million for the fourth quarter last year. Net income for the fourth quarter was $14.8 million, compared to net income of $9.3 million for the fourth quarter of fiscal 2006, an increase of 59.3 percent. On a diluted per share basis, the Company earned 49 cents a share for the fourth quarter of fiscal 2007, compared to 30 cents per diluted share for the fourth quarter last year.
The revenue increase for the quarter was primarily due to an increase in Class A motor home unit deliveries, which were nearly 48 percent higher when compared to the same quarter last year. The mix of deliveries in the fourth quarter of 2006 was more heavily weighted to Class C product due to the introduction of the value-priced Winnebago Access and Itasca Impulse. Conversely, the new products introduced during fiscal 2007 have been primarily focused in the Class A product category and generally carry a higher average selling price.
Gross profit margin in the fourth quarter was positively impacted by the stronger mix of Class A motor homes, and to a lesser extent, an increase in volume. In addition to the positive impact on net income from the increase in gross profit margin, net income also improved in the quarter due to reduced operating expenses. Selling expenses in the fourth quarter decreased over the prior year due to timing of the Company’s annual dealer event that was held in the third quarter of fiscal 2007 as opposed to being held in the fourth quarter in prior fiscal years.
Revenues for fiscal year 2007 were $870.2 million, an increase of 0.7 percent compared to $864.4 million for the previous year. Net income for fiscal 2007 was $41.6 million, compared to $44.7 million for 2006. On a diluted per share basis, the Company earned $1.32 a share, compared to $1.37 a share for 2006.
“We were pleased with the results of our fourth quarter and fiscal 2007 in spite of a difficult market,” said Winnebago Industries’ Chairman and CEO Bruce Hertzke. “We experienced a shift to a higher mix of Class A products sold within the fourth quarter which resulted in both higher revenues and margins. As part of our continued long-term strategy of returning profits to our shareholders, we also made significant repurchases of our common stock during the quarter.”
During the Company’s fourth quarter ended August 25, 2007, Winnebago Industries repurchased1,532,000 shares of common stock for an aggregate cost of approximately $44.1million. In total, 2,160,000 shares, or 6.9 percent of outstanding shares as of August 26, 2006, were repurchased during fiscal 2007 for an aggregate cost of approximately $64.7 million. As of August 25, 2007, the Company had $17.5 million remaining on the current share repurchase authorization.
“I’m very proud of what our employees have been able to accomplish in the fourth quarter and fiscal 2007,” said Winnebago Industries’ President Bob Olson. “We anticipate softness in motor home sales, however, as we move into our seasonally slower quarters, particularly in light of very low consumer confidence levels nationwide.”
“Retail motor home sales levels continue to lag behind last year,” said Olson. “According to the most recent report from Statistical Surveys, Inc., a retail reporting service for the RV industry, retail sales of Class A and Class C motor homes combined for the month of August 2007 were down 11 percent and for the calendar year to date through August have declined 4.9 percent
compared to the same periods last year. While we believe the Federal Reserve’s recent decision to reduce interest rates is a positive step toward improving market conditions for motor homes, it may take some time for this to translate into sustained growth of the retail motor home market. In the meantime, we believe dealers will continue to keep their motor home inventories low or further reduce them as they go into the slower fall and winter seasons.”
In a meeting held yesterday, Winnebago Industries’ Board of Directors declared a quarterly cash dividend of 12 cents a share, payable on January 7, 2008 to shareholders of record as of December 7, 2007.
Winnebago Industries will conduct a conference call in conjunction with this release at 9 a.m. Central Time today, Thursday, October 11, 2007. 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. is a leading U.S. manufacturer of motor homes which are self-contained recreation vehicles used primarily in leisure travel and outdoor recreation activities. The Company builds quality motor homes under the Winnebago and Itasca 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 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, 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/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 the effect of global tensions, declines in consumer confidence, the availability and price of fuel, a significant increase in interest rates, a slowdown in the economy, availability of chassis or other key component parts, 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.
– more –
Winnebago Industries, Inc.
Unaudited Consolidated Statements of Income
(In thousands, except percent and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
|||||||||||
|
|
|
Aug. 25, 2007 |
|
|
Aug. 26, 2006 |
|
||||||||
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
% |
|
|
|
|
|
|
% |
|
|
Net revenues |
|
$ |
237,681 |
|
|
100.0 |
|
|
$ |
205,411 |
|
|
100.0 |
|
|
Cost of goods sold |
|
|
205,089 |
|
|
86.3 |
|
|
|
180,070 |
|
|
87.7 |
|
|
|
|
|
|
|
|
|
||||||||
|
Gross profit |
|
|
32,592 |
|
|
13.7 |
|
|
|
25,341 |
|
|
12.3 |
|
|
|
|
|
|
|
|
|
||||||||
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling |
|
|
5,312 |
|
|
2.2 |
|
|
|
5,905 |
|
|
2.8 |
|
|
General and administrative |
|
|
6,553 |
|
|
2.8 |
|
|
|
6,691 |
|
|
3.3 |
|
|
|
|
|
|
|
|
|
||||||||
|
Total operating expenses |
|
|
11,865 |
|
|
5.0 |
|
|
|
12,596 |
|
|
6.1 |
|
|
|
|
|
|
|
|
|
||||||||
|
Operating income |
|
|
20,727 |
|
|
8.7 |
|
|
|
12,745 |
|
|
6.2 |
|
|
Financial income |
|
|
1,559 |
|
|
0.7 |
|
|
|
1,443 |
|
|
0.7 |
|
|
|
|
|
|
|
|
|
||||||||
|
Income before income taxes |
|
|
22,286 |
|
|
9.4 |
|
|
|
14,188 |
|
|
6.9 |
|
|
Provision for taxes |
|
|
7,443 |
|
|
3.1 |
|
|
|
4,871 |
|
|
2.4 |
|
|
|
|
|
|
|
|
|
||||||||
|
Net income |
|
$ |
14,843 |
|
|
6.3 |
|
|
$ |
9,317 |
|
|
4.5 |
|
|
|
|
|
|
|
|
|
||||||||
|
Income per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.49 |
|
|
|
|
|
$ |
0.30 |
|
|
|
|
|
Diluted |
|
$ |
0.49 |
|
|
|
|
|
$ |
0.30 |
|
|
|
|
|
Weighted average common shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
30,417 |
|
|
|
|
|
|
31,126 |
|
|
|
|
|
Diluted |
|
|
30,576 |
|
|
|
|
|
|
31,407 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year Ended |
|
|||||||||||
|
|
|
Aug. 25, 2007 |
|
|
Aug. 26, 2006 |
|
||||||||
|
|
|
|
|
|
||||||||||
|
|
|
|
|
% |
|
|
|
|
% |
|
||||
|
Net revenues |
|
$ |
870,152 |
|
|
100.0 |
|
|
$ |
864,403 |
|
|
100.0 |
|
|
Cost of goods sold |
|
|
770,955 |
|
|
88.6 |
|
|
|
759,502 |
|
|
87.9 |
|
|
|
|
|
|
|
|
|
||||||||
|
Gross profit |
|
|
99,197 |
|
|
11.4 |
|
|
|
104,901 |
|
|
12.1 |
|
|
|
|
|
|
|
|
|
||||||||
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling |
|
|
19,865 |
|
|
2.3 |
|
|
|
19,619 |
|
|
2.2 |
|
|
General and administrative |
|
|
24,446 |
|
|
2.8 |
|
|
|
22,184 |
|
|
2.6 |
|
|
|
|
|
|
|
|
|
||||||||
|
Total operating expenses |
|
|
44,311 |
|
|
5.1 |
|
|
|
41,803 |
|
|
4.8 |
|
|
|
|
|
|
|
|
|
||||||||
|
Operating income |
|
|
54,886 |
|
|
6.3 |
|
|
|
63,098 |
|
|
7.3 |
|
|
Financial income |
|
|
6,523 |
|
|
0.8 |
|
|
|
5,097 |
|
|
0.6 |
|
|
|
|
|
|
|
|
|
||||||||
|
Income before income taxes |
|
|
61,409 |
|
|
7.1 |
|
|
|
68,195 |
|
|
7.9 |
|
|
Provision for taxes |
|
|
19,845 |
|
|
2.3 |
|
|
|
23,451 |
|
|
2.7 |
|
|
|
|
|
|
|
|
|
||||||||
|
Net income |
|
$ |
41,564 |
|
|
4.8 |
|
|
$ |
44,744 |
|
|
5.2 |
|
|
|
|
|
|
|
|
|
||||||||
|
Income per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
1.33 |
|
|
|
|
|
$ |
1.39 |
|
|
|
|
|
Diluted |
|
$ |
1.32 |
|
|
|
|
|
$ |
1.37 |
|
|
|
|
|
Weighted average common shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
31,162 |
|
|
|
|
|
|
32,265 |
|
|
|
|
|
Diluted |
|
|
31,415 |
|
|
|
|
|
|
32,550 |
|
|
|
|
Winnebago
Industries, Inc.
Unaudited Consolidated Condensed Balance Sheets
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Aug. 25, 2007 |
|
Aug. 26, 2006 |
|
||
|
|
|
|
|
||||
|
ASSETS |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
6,889 |
|
$ |
24,934 |
|
|
Short-term investments |
|
|
102,650 |
|
|
129,950 |
|
|
Receivables, net |
|
|
30,285 |
|
|
20,859 |
|
|
Inventories |
|
|
101,208 |
|
|
77,081 |
|
|
Prepaid and other |
|
|
16,668 |
|
|
14,336 |
|
|
|
|
|
|
||||
|
Total current assets |
|
|
257,700 |
|
|
267,160 |
|
|
|
|
|
|
|
|
|
|
|
Property and equipment, net |
|
|
51,389 |
|
|
56,907 |
|
|
Deferred income taxes |
|
|
19,856 |
|
|
25,002 |
|
|
Investment in life insurance |
|
|
20,015 |
|
|
20,814 |
|
|
Other assets |
|
|
17,550 |
|
|
14,832 |
|
|
|
|
|
|
||||
|
Total assets |
|
$ |
366,510 |
|
$ |
384,715 |
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
35,286 |
|
$ |
27,923 |
|
|
Income taxes payable |
|
|
4,252 |
|
|
7,876 |
|
|
Accrued expenses |
|
|
49,299 |
|
|
44,323 |
|
|
|
|
|
|
||||
|
Total current liabilities |
|
|
88,837 |
|
|
80,122 |
|
|
|
|
|
|
|
|
|
|
|
Postretirement health care and deferred compensation benefits, net of current portion |
|
|
69,319 |
|
|
86,271 |
|
|
Stockholders’ equity |
|
|
208,354 |
|
|
218,322 |
|
|
|
|
|
|
||||
|
Total liabilities and stockholders’ equity |
|
$ |
366,510 |
|
$ |
384,715 |
|
|
|
|
|
|
||||
Winnebago
Industries, Inc.
Unaudited Condensed Statements of Cash Flows
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended |
|
||||
|
|
|
Aug. 25, 2007 |
|
Aug. 26, 2006 |
|
||
|
|
|
|
|
||||
|
Operating activities: |
|
|
|
|
|
|
|
|
Net income |
|
$ |
41,564 |
|
$ |
44,744 |
|
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
Depreciation |
|
|
10,495 |
|
|
10,635 |
|
|
Stock-based compensation |
|
|
4,871 |
|
|
4,894 |
|
|
Postretirement benefit income and deferred compensation expense |
|
|
1,539 |
|
|
1,319 |
|
|
Deferred income taxes |
|
|
(3,232 |
) |
|
538 |
|
|
Increase in cash surrender value of life insurance policies |
|
|
(871 |
) |
|
(976 |
) |
|
Excess tax benefit from stock-based compensation |
|
|
(1,587 |
) |
|
(501 |
) |
|
Other |
|
|
230 |
|
|
390 |
|
|
Change in assets and liabilities: |
|
|
|
|
|
|
|
|
Inventories |
|
|
(24,127 |
) |
|
43,574 |
|
|
Receivables and prepaid assets |
|
|
(8,325 |
) |
|
18,954 |
|
|
Income taxes payable |
|
|
(3,243 |
) |
|
3,955 |
|
|
Accounts payable and accrued expenses |
|
|
11,686 |
|
|
(13,300 |
) |
|
Postretirement and deferred compensation benefits |
|
|
(1,249 |
) |
|
(971 |
) |
|
|
|
|
|
||||
|
Net cash provided by operating activities |
|
|
27,751 |
|
|
113,255 |
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
Investing activities: |
|
|
|
|
|
|
|
|
Purchases of short-term investments |
|
|
(308,149 |
) |
|
(214,825 |
) |
|
Proceeds from the sale or maturity of short-term investments |
|
|
335,449 |
|
|
177,975 |
|
|
Purchases of property and equipment |
|
|
(5,245 |
) |
|
(4,830 |
) |
|
Other |
|
|
(285 |
) |
|
968 |
|
|
|
|
|
|
||||
|
Net cash provided by (used in) investing activities |
|
|
21,770 |
|
|
(40,712 |
) |
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
Financing activities: |
|
|
|
|
|
|
|
|
Payments for purchase of common stock |
|
|
(64,650 |
) |
|
(57,802 |
) |
|
Payments of cash dividends |
|
|
(12,517 |
) |
|
(11,670 |
) |
|
Proceeds from issuance of treasury stock |
|
|
8,014 |
|
|
1,878 |
|
|
Excess tax benefit from stock-based compensation |
|
|
1,587 |
|
|
501 |
|
|
|
|
|
|
||||
|
Net cash used in financing activities |
|
|
(67,566 |
) |
|
(67,093 |
) |
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
Net (decrease) increase in cash and cash equivalents |
|
|
(18,045 |
) |
|
5,450 |
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at beginning of period |
|
|
24,934 |
|
|
19,484 |
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of period |
|
$ |
6,889 |
|
$ |
24,934 |
|
|
|
|
|
|
||||
Winnebago Industries, Inc.
Unaudited Motor Home Deliveries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
Change |
|
||||||||
|
|
|
Aug. 25, 2007 |
|
Aug. 26, 2006 |
|
Units |
|
% |
|
||||
|
|
|
|
|
|
|
||||||||
|
Motor home unit deliveries |
|
|
|
|
|
|
|
|
|
||||
|
Class A Gas |
|
|
977 |
|
|
620 |
|
|
357 |
|
|
57.6 |
|
|
Class A Diesel |
|
|
324 |
|
|
260 |
|
|
64 |
|
|
24.6 |
|
|
|
|
|
|
|
|
||||||||
|
Total Class A |
|
|
1,301 |
|
|
880 |
|
|
421 |
|
|
47.8 |
|
|
Class C |
|
|
1,287 |
|
|
1,635 |
|
|
(348 |
) |
|
(21.3 |
) |
|
|
|
|
|
|
|
||||||||
|
Total deliveries |
|
|
2,588 |
|
|
2,515 |
|
|
73 |
|
|
2.9 |
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year Ended |
|
Change |
|
||||||||
|
|
|
Aug. 25, 2007 |
|
Aug. 26, 2006 |
|
Units |
|
% |
|
||||
|
|
|
|
|
|
|
||||||||
|
Motor home unit deliveries |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A Gas |
|
|
3,539 |
|
|
2,961 |
|
|
578 |
|
|
19.5 |
|
|
Class A Diesel |
|
|
1,492 |
|
|
1,494 |
|
|
(2 |
) |
|
(0.1 |
) |
|
|
|
|
|
|
|
||||||||
|
Total Class A |
|
|
5,031 |
|
|
4,455 |
|
|
576 |
|
|
12.9 |
|
|
Class C |
|
|
4,438 |
|
|
5,388 |
|
|
(950 |
) |
|
(17.6 |
) |
|
|
|
|
|
|
|
||||||||
|
Total deliveries |
|
|
9,469 |
|
|
9,843 |
|
|
(374 |
) |
|
(3.8 |
) |
|
|
|
|
|
|
|
||||||||
Winnebago Industries, Inc.
Unaudited Backlog and Dealer Inventory
(Units)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of |
|
Change |
|
||||||||
|
|
|
Aug. 25, 2007 |
|
Aug. 26, 2006 |
|
Units |
|
% |
|
||||
|
|
|
|
|
|
|
||||||||
|
Sales order backlog |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A Gas |
|
|
619 |
|
|
530 |
|
|
89 |
|
|
16.8 |
|
|
Class A Diesel |
|
|
419 |
|
|
270 |
|
|
149 |
|
|
55.2 |
|
|
|
|
|
|
|
|
||||||||
|
Total Class A |
|
|
1,038 |
|
|
800 |
|
|
238 |
|
|
29.8 |
|
|
Class C |
|
|
837 |
|
|
896 |
|
|
(59 |
) |
|
(6.6 |
) |
|
|
|
|
|
|
|
||||||||
|
Total backlog* |
|
|
1,875 |
|
|
1,696 |
|
|
179 |
|
|
10.6 |
|
|
|
|
|
|
|
|
||||||||
|
|
|||||||||||||
|
Total approximate revenue dollars (in thousands) |
|
$ |
179,700 |
|
$ |
142,100 |
|
$ |
37,600 |
|
|
26.5 |
|
|
|
|||||||||||||
|
Dealer inventory |
|
|
4,471 |
|
|
4,733 |
|
|
(262 |
) |
|
(5.5 |
) |
* The Company includes in its backlog all accepted orders from dealers to be shipped within the next six months. Orders in backlog can be cancelled 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.
# # #