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8K 3rd Qtr FY11 News Release


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)  June 16, 2011
 

 
 
 
Winnebago Industries, Inc.
(Exact Name of Registrant as Specified in its Charter)

Iowa
001-06403
42-0802678
(State or Other Jurisdiction
of Incorporation)
(Commission File Number)
(IRS Employer
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 June 16, 2011, as Exhibit 99.1 which is included herein. The press release was issued to report earnings for the third quarter and first nine months of Fiscal 2011 ended May 28, 2011.

Item 9.01 Financial Statements and Exhibits.

(d)    Exhibits

Exhibit
Number    Description
99.1        Press release of Winnebago Industries, Inc. dated June 16, 2011.





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.
 
 
 
WINNEBAGO INDUSTRIES, INC.
 
 
 
(Registrant)
 
 
 
 
 
 
Date:
June 16, 2011
By:
/s/ Robert J. Olson
 
 
 
Name:
Robert J. Olson
 
 
 
Title:
Chairman of the Board and Chief Executive Officer
 




EXHIBIT INDEX
 
 
Exhibit
Number
Description
 
 
 
 
99.1

 
 
Press release of Winnebago Industries, Inc. dated June 16, 2011.
 
 



3rd Qtr FY11 News Release


Contact: Sheila Davis - PR/IR Mgr. - 641-585-6803 - sdavis@winnebagoind.com

WINNEBAGO INDUSTRIES REPORTS RESULTS FOR
THIRD QUARTER FISCAL 2011



FOREST CITY, IOWA, June 16, 2011 - Winnebago Industries, Inc. (NYSE:WGO), one of the leading United States (U.S.) recreation vehicle manufacturers, today reported results for the Company's third quarter and first nine months of Fiscal 2011.

Consolidated revenues for the third quarter of Fiscal 2011 ended May 28, 2011 were $135.6 million, an increase of 0.6% percent, versus $134.8 million for the third quarter of Fiscal 2010. Included within consolidated revenues were $7.2 million associated with towable products. The Company reported an operating profit of $0.5 million for the quarter, versus an operating profit of $3.4 million for the third quarter of Fiscal 2010. Net income for the third quarter of Fiscal 2011 was $1.2 million versus net income of $6.0 million for the third quarter of Fiscal 2010. On a diluted per share basis, the Company had net income of $0.04 for the third quarter of Fiscal 2011 versus net income of $0.21 for the third quarter of Fiscal 2010. The net income for the third quarter of Fiscal 2010 reflected the positive effect of $.08 per diluted share in tax benefits associated with resolution of tax audits and various tax planning initiatives.
 
The third quarter of Fiscal 2011 as compared to the third quarter of Fiscal 2010 was negatively impacted by last-in, first-out (LIFO) inventory expense as opposed to LIFO income in the prior year, commodity inflation, an impairment charge on an asset held for sale, as well as increased discounts, repurchase exposure and legal costs. These negative items were partially offset by a tax benefit recorded in the third quarter of Fiscal 2011, primarily due to a favorable adjustment as a result of a lower annual effective tax rate.

Consolidated revenues for the first nine months of Fiscal 2011 were $365.9 million, an increase of 12.1 percent, compared to $326.4 million for the first nine months of Fiscal 2010. Included within consolidated revenues were $9.0 million associated with towable products. The Company reported an operating profit of $9.5 million for the first nine months of Fiscal 2011, compared to an operating loss of $4.4 million for the first nine months of Fiscal 2010. The net income for the first nine months of Fiscal 2011 was $8.3 million, or $0.28 per diluted share, versus a net income of $5.4 million, or $0.18 per diluted share, for the first nine months of Fiscal 2010. A tax benefit of $.33 per diluted share was recorded in the first nine months of Fiscal 2010, which primarily related to tax benefits associated with the carryback of Fiscal 2009 net operating losses permitted by tax law changes and tax benefits associated with various tax planning initiatives and tax settlements.
 
"The retail market for motor homes softened during our third Fiscal quarter, adding to our disappointment with the level of industry retail sales thus far in Calendar 2011 compared with the prior year," said Winnebago Industries' Chairman and CEO Bob Olson. "While discouraging, it is understandable in the context of new job creation slowing in America, along with reports of falling home prices, declining auto sales, weaker consumer spending, the concern over rising fuel prices and the impact these issues are currently having on the stock market. We remain concerned the current recovery appears to be slowing."

According to Winnebago Industries' President Randy Potts, "We have started to produce our 2012 motor home lineup and we are introducing these new and exciting products to our dealers throughout our fourth quarter. In addition, the Winnebago Industries Towables subsidiary continues to make progress with new and redesigned SunnyBrook brand products to be introduced throughout the summer. We also expect to debut Winnebago brand towable products in the coming months."

Conference Call
Winnebago Industries, Inc. will conduct a conference call in conjunction with this release at 9 a.m. Central Time today, Thursday, June 16, 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, which are 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 news 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 interest rates and 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
 
May 28, 2011
 
May 29, 2010
Net revenues
$
135,568

 
100.0
 %
 
$
134,813

 
100.0
 %
Cost of goods sold
126,865

 
93.6
 %
 
125,058

 
92.8
 %
Gross profit
8,703

 
6.4
 %
 
9,755

 
7.2
 %
Operating expenses:
 
 
 
 
 
 
 
Selling
3,608

 
2.7
 %
 
3,107

 
2.3
 %
General and administrative
3,952

 
2.9
 %
 
3,244

 
2.4
 %
Assets held for sale impairment
605

 
0.4
 %
 
—

 
—
 %
Total operating expenses
8,165

 
6.0
 %
 
6,351

 
4.7
 %
Operating income
538

 
0.4
 %
 
3,404

 
2.5
 %
Non-operating income
76

 
0.1
 %
 
158

 
0.1
 %
Income before taxes
614

 
0.5
 %
 
3,562

 
2.6
 %
Benefit for taxes
(581
)
 
(0.4
)%
 
(2,430
)
 
(1.8
)%
Net income
$
1,195

 
0.9
 %
 
$
5,992

 
4.4
 %
Income per common share:
 
 
 
 
 
 
 
Basic
$
0.04

 
 
 
$
0.21

 
 
Diluted
$
0.04

 
 
 
$
0.21

 
 
Weighted average common shares outstanding:
 
 
 
 
 
 
 
Basic
29,124

 
 
 
29,098

 
 
Diluted
29,152

 
 
 
29,107

 
 


 
Nine Months Ended
 
May 28, 2011
 
May 29, 2010
Net revenues
$
365,872

 
100.0
%
 
$
326,359

 
100.0
 %
Cost of goods sold
334,646

 
91.5
%
 
311,296

 
95.4
 %
Gross profit
31,226

 
8.5
%
 
15,063

 
4.6
 %
Operating expenses:
 
 
 
 
 
 
 
Selling
10,129

 
2.8
%
 
9,438

 
2.9
 %
General and administrative
11,623

 
3.2
%
 
10,056

 
3.1
 %
Assets held for sale impairment and gain
(39
)
 
—
%
 
—

 
—
 %
Total operating expenses
21,713

 
5.9
%
 
19,494

 
6.0
 %
Operating income (loss)
9,513

 
2.6
%
 
(4,431
)
 
(1.4
)%
Non-operating income
550

 
0.2
%
 
289

 
0.1
 %
Income (loss) before income taxes
10,063

 
2.8
%
 
(4,142
)
 
(1.3
)%
Provision (benefit) for taxes
1,767

 
0.5
%
 
(9,496
)
 
(2.9
)%
Net income
$
8,296

 
2.3
%
 
$
5,354

 
1.6
 %
Income per common share:
 
 
 
 
 
 
 
Basic
$
0.28

 
 
 
$
0.18

 
 
Diluted
$
0.28

 
 
 
$
0.18

 
 
Weighted average common shares outstanding:
 
 
 
 
 
 
 
Weighted average common shares outstanding:
29,118

 
 
 
29,084

 
 
Diluted
29,135

 
 
 
29,097

 
 






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

 
May 28,
2011
 
August 28,
2010
ASSETS
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
65,230

 
$
74,691

Short-term investments
250

 
—

Receivables, net
17,408

 
18,798

Inventories
76,346

 
43,526

Prepaid expenses and other assets
4,298

 
4,570

Income taxes receivable
380

 
132

Total current assets
163,912

 
141,717

Total property and equipment, net
23,365

 
25,677

Assets held for sale
600

 
4,254

Long-term investments
10,911

 
17,785

Investment in life insurance
23,249

 
23,250

Goodwill
1,228

 
—

Amortizable intangible assets
739

 
—

Other assets
17,009

 
14,674

Total assets
$
241,013

 
$
227,357

 
 
 
 
LIABILITIES AND STOCKHOLDERS' EQUITY
 
 
 
Current liabilities:
 
 
 
Accounts payable
$
22,563

 
$
19,725

Income taxes payable
66

 
99

Accrued expenses
31,844

 
30,548

Total current liabilities
54,473

 
50,372

Long-term liabilities:
 
 
 
Unrecognized tax benefits
5,511

 
5,877

Postretirement health care and deferred compensation benefits, net of current portion
75,937

 
73,581

Total long-term liabilities
81,448

 
79,458

Stockholders' equity:
105,092

 
97,527

Total liabilities and stockholders equity
$
241,013

 
$
227,357







Winnebago Industries, Inc.
Unaudited Consolidated Statements of Cash Flows
(In thousands)
 
Nine Months Ended
 
May 28,
2011
 
May 29,
2010
Operating activities:
 
 
 
Net income
$
8,296

 
$
5,354

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Depreciation and amortization
4,193

 
4,850

LIFO expense (income)
1,193

 
(34
)
Asset impairment
605

 
—

Stock-based compensation
1,001

 
414

Deferred income taxes including valuation allowance
874

 
—

Postretirement benefit income and deferred compensation expense
1,034

 
927

Provision (reduction) for doubtful accounts
5

 
(65
)
Increase in cash surrender value of life insurance policies
(617
)
 
(962
)
(Gain) loss on the sale or disposal of property
(867
)
 
14

Gain on life insurance
(372
)
 
—

Other
90

 
58

Change in assets and liabilities:
 
 
 
Inventories
(30,091
)
 
7,750

Receivables and prepaid assets
2,609

 
843

Income taxes and unrecognized tax benefits
(747
)
 
13,736

Accounts payable and accrued expenses
1,523

 
6,605

Postretirement and deferred compensation benefits
(2,792
)
 
(2,679
)
Net cash (used in) provided by operating activities
(14,063
)
 
36,811

 
 
 
 
Investing activities:
 
 
 
Proceeds from the sale of investments at par
6,450

 
12,900

Proceeds from life insurance
659

 
—

Purchases of property and equipment
(1,590
)
 
(1,467
)
Proceeds from the sale of property
4,009

 
58

Cash paid for acquisition, net of cash acquired
(4,694
)
 
—

Other
(410
)
 
127

Net cash provided by investing activities
4,424

 
11,618

 
 
 
 
Investing activities:
 
 
 
Payments for purchases of common stock
(89
)
 
(249
)
Payments on ARS portfolio
—

 
(8,490
)
Proceeds from exercise of stock options
83

 
280

Other
184

 
(240
)
Net cash provided by (used in) financing activities
178

 
(8,699
)
 
 
 
 
Net (decrease) increase in cash and cash equivalents
(9,461
)
 
39,730

Cash and cash equivalents at beginning of period
74,691

 
36,566

Cash and cash equivalents at end of period
$
65,230

 
$
76,296

 
 
 
 
Supplemental cash flow disclosure:
 
 
 
Income taxes paid (refunded)
$
1,638

 
$
(23,390
)






Winnebago Industries, Inc.
Unaudited Deliveries
 
 
 
 
 
 
 
 
 
 
Quarter Ended
 
Change
(In units)
May 28,
2011
Product
Mix %
 
May 29,
2010
Product
Mix %
 
Units
%
Change
Class A gas
425

33.1
%
 
417

30.5
%
 
8

1.9
 %
Class A diesel
204

15.9
%
 
273

20.0
%
 
(69
)
(25.3
)%
Total Class A
629

49.0
%
 
690

50.5
%
 
(61
)
(8.8
)%
Class B
1

0.1
%
 
76

5.6
%
 
(75
)
(98.7
)%
Class C
653

50.9
%
 
600

43.9
%
 
53

8.8
 %
Total motor homes
1,283

100.0
%
 
1,366

100.0
%
 
(83
)
(6.1
)%
 
 
 
 
 
 
 
 
 
Fifth wheel
94

28.8
%
 
 
 
 
 
 
Travel trailer
232

71.2
%
 
 
 
 
 
 
    Total towables
326

100.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended
 
Change
(In units)
May 28,
2011
Product
Mix %
 
May 29,
2010
Product
Mix %
 
Units
%
Change
Class A gas
1,145

34.6
%
 
1,030

31.5
%
 
115

11.2
 %
Class A diesel
692

20.9
%
 
707

21.6
%
 
(15
)
(2.1
)%
Total Class A
1,837

55.5
%
 
1,737

53.1
%
 
100

5.8
 %
Class B
2

0.1
%
 
202

6.2
%
 
(200
)
(99.0
)%
Class C
1,468

44.4
%
 
1,330

40.7
%
 
138

10.4
 %
Total motor homes
3,307

100.0
%
 
3,269

100.0
%
 
38

1.2
 %
 
 
 
 
 
 
 
 
 
Fifth wheel
115

28.0
%
 
 
 
 
 
 
Travel trailer
296

72.0
%
 
 
 
 
 
 
    Total towables
411

100.0
%
 
 
 
 
 
 





Winnebago Industries, Inc.
Unaudited Backlog
 
 
 
 
 
 
 
 
 
 
As Of
 
 
 
May 28, 2011
 
May 29, 2010
 
(Decrease)
 
Units
% (1)
 
Units
% (1)
 
Increase
Class A gas
187

29.1
%
 
323

34.5
%
 
(136
)
(42.1
)%
Class A diesel
113

17.6
%
 
234

25.0
%
 
(121
)
(51.7
)%
Total Class A
300

46.7
%
 
557

59.6
%
 
(257
)
(46.1
)%
Class B
130

20.2
%
 
34

3.6
%
 
96

282.4
 %
Class C
212

33.0
%
 
344

36.8
%
 
(132
)
(38.4
)%
    Total motor home backlog (2)
642

100.0
%
 
935

100.0
%
 
(293
)
(31.3
)%
 
 
 
 
 
 
 
 
 
Fifth wheel
46

28.0
%
 
 
 
 
 
 
Travel trailer
118

72.0
%
 
 
 
 
 
 
    Total towable backlog (2)
164

100.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total approximate backlog revenue (in 000's):
 
 
 
 
 
 
 
 
Motor home
$
61,924

 
 
$
93,214

 
 
$
(31,290
)
(33.6
)%
Towable

$
3,532

 
 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Percentages may not add due to rounding differences.
(2) 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
 
 
 
5/28/2011
 
5/29/2010
 
(Decrease)
 
Units
 
Units
 
Increase
Motor home
2,068

 
2,000

 
68

3.4
%
Towable
1,028

 
—