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 14, 2012
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 14, 2012, as Exhibit 99.1 which is incorporated by reference herein. The press release was issued to report earnings for the third quarter of Fiscal 2012 ended May 26, 2012.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
Exhibit
Number Description
99.1 Press release of Winnebago Industries, Inc. dated June 14, 2012.
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 14, 2012 | By: | /s/ Randy J. Potts | |
Name: | Randy J. Potts | |||
Title: | Chairman of the Board, Chief Executive Officer and President | |||
EXHIBIT INDEX
Exhibit
Number Description
99.1 Press release of Winnebago Industries, Inc. dated June 14, 2012.
Contact: Sheila Davis - PR/IR Mgr. - 641-585-6803 - sdavis@winnebagoind.com
WINNEBAGO INDUSTRIES REPORTS RESULTS FOR
THIRD QUARTER FISCAL 2012
-- Income from Operations Significantly Increased in Third Quarter FY12 Versus Prior Year Quarter --
FOREST CITY, IOWA, June 14, 2012 - Winnebago Industries, Inc. (NYSE:WGO), a leading United States (U.S.) recreation vehicle (RV) manufacturers, today reported financial results for the Company's third quarter of Fiscal 2012 and first nine months of Fiscal 2012.
Revenues for the third quarter of Fiscal 2012 ended May 26, 2012 were $155.7 million, an increase of 14.9 percent, versus $135.6 million for the third quarter of Fiscal 2011. Included within consolidated revenues was $16.4 million associated with towable products, compared to $7.2 million for the third quarter of Fiscal 2011. The Company reported an operating profit of $3.5 million for the quarter versus $538,000 for the third quarter of Fiscal 2011. Net income for the third quarter was $3.9 million versus $1.2 million for the third quarter of Fiscal 2011. On a diluted per share basis, the Company had net income of $0.13 for the third quarter of Fiscal 2012 versus $0.04 for the third quarter of Fiscal 2011.
Revenues were higher in the quarter as compared to the prior year primarily due to an increase in wholesale deliveries of towable products and the increase in average selling price for all RV products due to the mix of higher priced products delivered. The third quarter of Fiscal 2012 gross margin was positively impacted by better fixed cost absorption due to higher production levels as compared to the prior period.
Revenues for the first nine months of Fiscal 2012 were $419.1 million, an increase of 14.6 percent, compared to $365.9 million for the first nine months of Fiscal 2011. The Company reported an operating profit of $3.0 million for the first nine months of Fiscal 2012, compared to $9.5 million for the same period of Fiscal 2011. Net income for the first nine months of Fiscal 2012 was $4.1 million, or $0.14 per diluted share, versus $8.3 million, or $0.28 per diluted share, for the first nine months of the last fiscal year.
Revenues were higher for the first nine months as compared to the prior period for the same reasons as during the third quarter, with increased towable deliveries and increased average selling prices for all RV products due to the mix of higher priced products delivered. Operating profit for the first nine months was lower as compared to the prior period most notably due to increased pricing and inflationary pressures in Fiscal 2012 and the fact that Fiscal 2011 results included a $3.5 million pre-tax benefit from the results of an annual physical inventory of work-in-process, due to lower actual inventory scrap and production loss.
“Our business was sequentially much stronger during the third fiscal quarter and as a result, our margins have improved," said Winnebago Industries' Chairman, CEO and President Randy Potts. "Notably, towables achieved their first full quarter of operating profitability in the third quarter. Our sales order backlog for motorized products was strong going into our Dealer Days event held in May in Las Vegas. This event resulted in even more orders, particularly for our towable products, due to the positive reception to our new product offerings. Our RV inventory on dealers' lots is fresh but at a conservative level, which combined with our higher order position leads us to be optimistic about the remainder of the fiscal year."
Conference Call
Winnebago Industries, Inc. will conduct a conference call in conjunction with this release at 9 a.m. Central Time today, Thursday, June 14, 2012. 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 and its subsidiary build 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 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 26, 2012 | May 28, 2011 | |||||||||||||
Net revenues | $ | 155,709 | 100.0 | % | $ | 135,568 | 100.0 | % | ||||||
Cost of goods sold | 143,638 | 92.2 | % | 126,865 | 93.6 | % | ||||||||
Gross profit | 12,071 | 7.8 | % | 8,703 | 6.4 | % | ||||||||
Operating expenses: | ||||||||||||||
Selling | 4,331 | 2.8 | % | 3,608 | 2.7 | % | ||||||||
General and administrative | 4,213 | 2.7 | % | 3,952 | 2.9 | % | ||||||||
Impaired assets | — | — | % | 605 | 0.4 | % | ||||||||
Total operating expenses | 8,544 | 5.5 | % | 8,165 | 6.0 | % | ||||||||
Operating income | 3,527 | 2.3 | % | 538 | 0.4 | % | ||||||||
Non-operating income | 402 | 0.3 | % | 76 | 0.1 | % | ||||||||
Income before income taxes | 3,929 | 2.5 | % | 614 | 0.5 | % | ||||||||
Benefit for taxes | (12 | ) | — | % | (581 | ) | (0.4 | )% | ||||||
Net income | $ | 3,941 | 2.5 | % | $ | 1,195 | 0.9 | % | ||||||
Income per common share: | ||||||||||||||
Basic | $ | 0.13 | $ | 0.04 | ||||||||||
Diluted | $ | 0.13 | $ | 0.04 | ||||||||||
Weighted average common shares outstanding: | ||||||||||||||
Basic | 29,225 | 29,124 | ||||||||||||
Diluted | 29,263 | 29,152 | ||||||||||||
Nine Months Ended | ||||||||||||||
May 26, 2012 | May 28, 2011 | |||||||||||||
Net revenues | $ | 419,146 | 100.0 | % | $ | 365,872 | 100.0 | % | ||||||
Cost of goods sold | 391,733 | 93.5 | % | 334,646 | 91.5 | % | ||||||||
Gross profit | 27,413 | 6.5 | % | 31,226 | 8.5 | % | ||||||||
Operating expenses: | ||||||||||||||
Selling | 12,485 | 3.0 | % | 10,129 | 2.8 | % | ||||||||
General and administrative | 11,938 | 2.8 | % | 11,623 | 3.2 | % | ||||||||
Impaired assets | — | — | % | (39 | ) | — | % | |||||||
Total operating expenses | 24,423 | 5.8 | % | 21,713 | 5.9 | % | ||||||||
Operating income | 2,990 | 0.7 | % | 9,513 | 2.6 | % | ||||||||
Non-operating income | 549 | 0.1 | % | 550 | 0.2 | % | ||||||||
Income before income taxes | 3,539 | 0.8 | % | 10,063 | 2.8 | % | ||||||||
(Benefit) provision for taxes | (525 | ) | (0.1 | )% | 1,767 | 0.5 | % | |||||||
Net income | $ | 4,064 | 1.0 | % | $ | 8,296 | 2.3 | % | ||||||
Income per common share: | ||||||||||||||
Basic | $ | 0.14 | $ | 0.28 | ||||||||||
Diluted | $ | 0.14 | $ | 0.28 | ||||||||||
Weighted average common shares outstanding: | ||||||||||||||
Basic | 29,171 | 29,118 | ||||||||||||
Diluted | 29,243 | 29,135 | ||||||||||||
Winnebago Industries, Inc.
Unaudited Consolidated Balance Sheets
(In thousands)
May 26, 2012 | August 27, 2011 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 80,831 | $ | 69,307 | ||||
Short-term investments | 250 | — | ||||||
Receivables, net | 18,476 | 19,981 | ||||||
Inventories | 69,604 | 69,165 | ||||||
Prepaid expenses and other assets | 4,289 | 4,227 | ||||||
Income taxes receivable | 875 | 1,525 | ||||||
Deferred income taxes | 1,402 | 649 | ||||||
Total current assets | 175,727 | 164,854 | ||||||
Property, plant, and equipment, net | 20,382 | 22,589 | ||||||
Assets held for sale | 600 | 600 | ||||||
Long-term investments | 9,091 | 10,627 | ||||||
Investment in life insurance | 22,981 | 23,669 | ||||||
Goodwill | 1,228 | 1,228 | ||||||
Amortizable intangible assets | 661 | 720 | ||||||
Other assets | 13,254 | 15,640 | ||||||
Total assets | $ | 243,924 | $ | 239,927 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 24,635 | $ | 21,610 | ||||
Income taxes payable | — | 104 | ||||||
Accrued expenses | 32,413 | 29,604 | ||||||
Total current liabilities | 57,048 | 51,318 | ||||||
Long-term liabilities: | ||||||||
Unrecognized tax benefits | 4,853 | 5,387 | ||||||
Postretirement health care and deferred compensation benefits, net of current portion | 67,158 | 74,492 | ||||||
Total long-term liabilities | 72,011 | 79,879 | ||||||
Stockholders' equity | 114,865 | 108,730 | ||||||
Total liabilities and stockholders' equity | $ | 243,924 | $ | 239,927 | ||||
Winnebago Industries, Inc.
Unaudited Consolidated Statements of Cash Flows
(In thousands)
Nine Months Ended | ||||||||
May 26, 2012 | May 28, 2011 | |||||||
Operating activities: | ||||||||
Net income | $ | 4,064 | $ | 8,296 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 3,786 | 4,193 | ||||||
LIFO expense | 844 | 1,193 | ||||||
Asset impairment | — | 605 | ||||||
Stock-based compensation | 863 | 1,001 | ||||||
Deferred income taxes including valuation allowance | (753 | ) | 874 | |||||
Postretirement benefit income and deferred compensation expenses | 510 | 1,034 | ||||||
Provision for doubtful accounts | 28 | 5 | ||||||
Increase in cash surrender value of life insurance policies | (523 | ) | (617 | ) | ||||
Loss (gain) on sale or disposal of property | 20 | (867 | ) | |||||
Gain on life insurance | (281 | ) | (372 | ) | ||||
Other | 579 | 90 | ||||||
Change in assets and liabilities: | ||||||||
Inventories | (1,283 | ) | (30,091 | ) | ||||
Receivables and prepaid assets | 1,893 | 2,609 | ||||||
Income taxes and unrecognized tax benefits | 105 | (747 | ) | |||||
Accounts payable and accrued expenses | 4,950 | 1,523 | ||||||
Postretirement and deferred compensation benefits | (3,053 | ) | (2,792 | ) | ||||
Net cash provided by (used in) operating activities | 11,749 | (14,063 | ) | |||||
Investing activities: | ||||||||
Proceeds from the sale of investments, at par | 750 | 6,450 | ||||||
Proceeds from life insurance | 1,404 | 659 | ||||||
Purchases of property and equipment | (1,527 | ) | (1,590 | ) | ||||
Proceeds from the sale of property | 16 | 4,009 | ||||||
Cash paid for acquisition, net of cash acquired | — | (4,694 | ) | |||||
Other | (558 | ) | (410 | ) | ||||
Net cash provided by investing activities | 85 | 4,424 | ||||||
Financing activities: | ||||||||
Payments for purchase of common stock | (343 | ) | (89 | ) | ||||
Proceeds from exercises of stock options | — | 83 | ||||||
Other | 33 | 184 | ||||||
Net cash (used in) provided by financing activities | (310 | ) | 178 | |||||
Net increase (decrease) in cash and cash equivalents | 11,524 | (9,461 | ) | |||||
Cash and cash equivalents at beginning of period | 69,307 | 74,691 | ||||||
Cash and cash equivalents at end of period | $ | 80,831 | $ | 65,230 | ||||
Supplemental cash flow disclosure: | ||||||||
Income taxes paid | $ | 115 | $ | 1,638 | ||||
Winnebago Industries, Inc.
Unaudited Deliveries
Quarter Ended | |||||||||||||||
(In units) | May 26, 2012 | May 28, 2011 | Increase (Decrease) | % Change | |||||||||||
Class A gas | 429 | 33.5 | % | 425 | 33.1 | % | 4 | 0.9 | % | ||||||
Class A diesel | 234 | 18.3 | % | 204 | 15.9 | % | 30 | 14.7 | % | ||||||
Total Class A | 663 | 51.8 | % | 629 | 49.0 | % | 34 | 5.4 | % | ||||||
Class B | 87 | 6.8 | % | 1 | 0.1 | % | 86 | NMF | |||||||
Class C | 530 | 41.4 | % | 653 | 50.9 | % | (123 | ) | (18.8 | )% | |||||
Total motor homes | 1,280 | 100.0 | % | 1,283 | 100.0 | % | (3 | ) | (0.2 | )% | |||||
Fifth wheel | 289 | 44.7 | % | 94 | 28.8 | % | 195 | 207.4 | % | ||||||
Travel trailer | 357 | 55.3 | % | 232 | 71.2 | % | 125 | 53.9 | % | ||||||
Total towables | 646 | 100.0 | % | 326 | 100.0 | % | 320 | 98.2 | % | ||||||
Nine Months Ended | |||||||||||||||
(In units) | May 26, 2012 | May 28, 2011 | Increase(Decrease) | % Change | |||||||||||
Class A gas | 1,163 | 35.0 | % | 1,145 | 34.6 | % | 18 | 1.6 | % | ||||||
Class A diesel | 701 | 21.1 | % | 692 | 20.9 | % | 9 | 1.3 | % | ||||||
Total Class A | 1,864 | 56.1 | % | 1,837 | 55.5 | % | 27 | 1.5 | % | ||||||
Class B | 215 | 6.5 | % | 2 | 0.1 | % | 213 | NMF | |||||||
Class C | 1,242 | 37.4 | % | 1,468 | 44.4 | % | (226 | ) | (15.4 | )% | |||||
Total motor homes | 3,321 | 100.0 | % | 3,307 | 100.0 | % | 14 | 0.4 | % | ||||||
Fifth wheel | 715 | 43.5 | % | 115 | 28.0 | % | 600 | 521.7 | % | ||||||
Travel trailer | 928 | 56.5 | % | 296 | 72.0 | % | 632 | 213.5 | % | ||||||
Total towables | 1,643 | 100.0 | % | 411 | 100.0 | % | 1,232 | 299.8 | % | ||||||
Unaudited Backlog
As Of | ||||||||||||||||||
(In units) | May 26, 2012 | May 28, 2011 | Increase(Decrease) | % Change | ||||||||||||||
Class A gas | 479 | 38.7 | % | 187 | 29.1 | % | 292 | 156.1 | % | |||||||||
Class A diesel | 257 | 20.8 | % | 113 | 17.6 | % | 144 | 127.4 | % | |||||||||
Total Class A | 736 | 59.5 | % | 300 | 46.7 | % | 436 | 145.3 | % | |||||||||
Class B | 120 | 9.7 | % | 130 | 20.2 | % | (10 | ) | (7.7 | )% | ||||||||
Class C | 381 | 30.8 | % | 212 | 33.0 | % | 169 | 79.7 | % | |||||||||
Total motor home backlog(1) | 1,237 | 100.0 | % | 642 | 100.0 | % | 595 | 92.7 | % | |||||||||
Fifth wheel | 204 | 40.4 | % | 46 | 28.0 | % | 158 | 343.5 | % | |||||||||
Travel trailer | 301 | 59.6 | % | 118 | 72.0 | % | 183 | 155.1 | % | |||||||||
Total towable backlog(1) | 505 | 100.0 | % | 164 | 100.0 | % | 341 | 207.9 | % | |||||||||
Approximate backlog revenue in thousands: | ||||||||||||||||||
Motor homes | $ | 131,418 | $ | 61,924 | $ | 69,494 | 112.2 | % | ||||||||||
Towables | $ | 12,487 | $ | 3,532 | $ | 8,955 | 253.5 | % | ||||||||||
(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. | ||||||||||||||||||
Unaudited Dealer Inventory
As Of | |||||||||||
(In units) | May 26, 2012 | May 28, 2011 | (Decrease) Increase | % Change | |||||||
Motor homes | 1,940 | 2,068 | (128 | ) | (6.2 | )% | |||||
Towables | 1,370 | 1,028 | 342 | 33.3 | % | ||||||