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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 14, 2010
 
 
 
 
 
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  &n bsp;      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 14, 2010, as Exhibit 99.1 which is included herein. The press release was issued to report earnings for the fourth quarter and fiscal 2010 ended August 28, 2010.
 
Item 9.01 Financial Statements and Exhibits.
(d)
Exhibits
 
Exhibit
Number
Description
 
 
 
99.1
 
 
 
Press release of Winnebago Industries, Inc. dated October 14, 2010.
 
 
 

 
 

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:
October 14, 2010
By:
/s/ Robert J. Olson
 
 
 
Name:
Robert J. Olson
 
 
&nbs p;
Title:
Chairman of the Board, Chief Executive Officer and President
 
 
 
 
 

 
 

EXHIBIT INDEX
 
 
Exhibit
Number
Description
 
 
 
 
99.1
 
 
 
Press release of Winnebago Industries, Inc. dated October 14, 2010.
 
 

 
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Contact: Sheila Davis - PR/IR Mgr. - 641-585-6803 - sdavis@winnebagoind.com
 
WINNEBAGO INDUSTRIES REPORTS RESULTS FOR
FOURTH QUARTER AND FISCAL 2010
-- Operating Income of $5.0 million for the Fourth Quarter --
 
 
FOREST CITY, IOWA, October 14, 2010- Winnebago Industries, Inc. (NYSE:WGO), one of the leading United States (U.S.) motor home manufacturers, today reported continued improvement in financial results during the Company's fourth quarter and fiscal year 20 10.
 
Revenues for the fourth quarter ended August 28, 2010 were $123.1 million, an increase of 107.1 percent, versus $59.5 million for the fourth quarter of Fiscal 2009. The Company reported an operating profit of $5.0 million for the quarter, versus an operating loss of $9.2 million for the fourth quarter of Fiscal 2009. Net income for the fourth quarter was $4.9 million versus a net loss of $50.2 million for the fourth quarter of Fiscal 2009. On a diluted per share basis, the Company had net income of $0.17 for the fourth quarter of Fiscal 2010 versus a net loss of $1.73 for the fourth quarter of Fiscal 2009. The net loss for the fourth quarter of Fiscal 2009 included a non-cash charge of $41.1 million, or $1.41 per diluted share, related to the establishment of a full valuation allowance against the Company's deferred tax assets.
 
The fourth quarter was positively impacted by increased motor home deliveries, particularly in the Class A categ ory, resulting in more fixed cost absorption and improved labor efficiencies. There also was a positive benefit to cost of goods sold from the liquidation of last-in, first-out (LIFO) inventory values due to further reduction in inventory levels. This had the effect of increasing gross profit by $750,000.
 
Revenues for Fiscal 2010 were $449.5 million, an increase of 112.5 percent, versus revenues of $211 .5 million for Fiscal 2009. The Company reported an operating income of $0.5 million for Fiscal 2010, versus an operating loss of $59.5 million for Fiscal 2009. Net income for Fiscal 2010 was $10.2 million, or $0.35 per diluted share, versus a loss of $78.8 million, or $2.71 per diluted share for Fiscal 2009. The $9.5 million of tax benefit recorded in Fiscal 2010 primarily relates to $5.8 million of 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.
 
“Results for the fourth quarter and Fiscal 2010 were greatly improved in revenues and gross profit, and we were pleased to have profitability at the operating level for both the fourth quarter and the full year,” said Winnebago Industries' Chairman, CEO and President Bob Ol son. "Increased motor home delivery volume continues to be a driving force behind our improved results, however, we remain cautious until we see continued retail growth."
 
Dealer inventory increased 20.7 percent with 2,044 Class A, B and C motor homes on our dealers' lots as of August 28, 2010, compared to 1,694 on August 29, 2009. Olson continued, "Dealer inventory has remained at a consistent level since our second quarter of Fiscal 2010 and we continue to believe that level of inventory is appropriate in today's market environment. Dealers and their lending institutions continue to keep a close eye on the size and age of their inventories to ensure that the supply is current and is consistent with retail demand."
 
Winnebago Industries' sales order backlog was 818 Class A, B and C motor homes as of August 28, 2010, a decrease of 13.0 percent compared to the end of the fourth quarter of Fiscal 2009. "During the fourth quarter, we launched 2011 model year products and our dealers have expressed excitement about the new 2011 products, particularly the newly redesigned Winnebago Tour and Itasca Ellipse," said O lson. "As testament to the strength of our new 2011 product offerings, retail sales of Winnebago Industries' products at the September 2010 Pennsylvania RV and Camping Show in Hershey, PA, were 36 percent higher than the previous year, and particularly strong in Class A diesel sales. We are pleased with the results of this show particularly since it is the largest retail show in the country and a key show early in the new model year."
 
Conference Call
Winnebago Industries, Inc. will conduct a conference call in conjunction with this release at 9 a.m. Central Time today, Thursday, October 14, 2010. Members of the news media, investors and the general publ ic 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, Itasca and ERA brand names with state-of-the-art computer-aided design and manufacturing systems on automotive-styled assembly lines. 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.winnebagoin d.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 new product introductions by competitors, low consumer confidence, a further or continued slowdown in the economy, interest rates and availability of credit, inadequate liquidity or capital resources, significant increase in repurchase obligations, availability and price of fuel, availability of chassis and other key component parts, sales order cancellations, slower th an anticipated sales of new or existing products, the effect of global tensions, 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 Statements of Operations
(In thousands, except percent and per share data)
 
 
 
Quarter Ended
August 28, 2010
 
August 29, 2009
Net revenues
$
123,125
 
 
100.0
 %
 
$
59,465
 
 
100.0
 %
Cost of goods sold
111,921
 
 
90.9
 %
 
61,240
 
 
103.0
 %
Gross profit (deficit)
11,204
 
 
9.1
 %
 
(1,775
)
 
(3.0
)%
Operating expenses:
 
 
 
 
 
 
 
Selling
3,286
 
 
2.7
 %
 
3,052
 
 
5.1
 %
General and administrative
2,967
 
 
2.4
 %
 
3,550
 
 
6.0
 %
Asset impairment
—
 
 
—
 %
 
855
 
 
1.4
 %
Total operating expenses
6,253
 
 
5.1
 %
 
7,457
 
 
12.5
 %
Operating income (loss)
4,951
 
 
4.0
 %
 
(9,232
)
 
(15.5
)%
Financial (expense) income
(67
)
 
0.0
 %
 
86
 
 
0.1
 %
Income (loss) before income taxes
4,884
 
 
4.0
 %
 
(9,146
)
 
(15.4
)%
(Benefit) provision for taxes
(9
)
 
(0.0
)%
 
41,090
 
 
69.1
 %
Net income (loss)
$
4,893
 
 
4.0
 %
 
$
(50,236
)
 
(84.5
)%
Income (loss) per common share:
 
 
 
 
 
 
 
Basic
$
0.17
 
 
 
 
$
(1.73
)
 
 
Diluted
$
0.17
 
 
 
 
$
(1.73
)
 
 
Weighted average common shares outstanding:
 
 
 
 
 
 
 
Basic
29,112
& nbsp;
 
 
 
29,052
 
 
 
Diluted
29,115
 
 
 
 
29,067
 
 
 
 
 
< td colspan="2" style="vertical-align:bottom;padding-left:2.6666666666666665px;padding-top:2.6666666666666665px;padding-bottom:2.6666666666666665px;border-bottom:1px solid #000000;">
1,452
 
Year Ended
 
August 28, 2010
 
August 29, 2009
Net revenues
$
449,484
 
 
100.0
 %
 
$
211,519
 
 
100.0
 %
Cost of goods sold
423,217
 
 
94.2
 %
 
242,265
 
 
114.5
 %
Gross profit (deficit)
26,267
 
 
5.8
 %
 
(30,746
)
 
(14.5
)%
Operating expenses:
 
 
 
 
 
 
 
Selling
12,724
 
 
2.8
 %
 
12,616
 
 
6.0
 %
General and administrative
13,023
 
 
2.9
 %
 
15,298
& nbsp;
 
7.2
 %
Asset impairment
—
 
 
—
 %
 
8 55
 
 
0.4
 %
Total operating expenses
25,747
 
 
5.7
 %
 
28,769
 
 
13.6
 %
Operating income (loss)
520
 
 
0.1
 %
 
(59,515
)
 
(28.1
)%
Financial income
222
 
 
0.0
 %
 
 
 
0.7
 %
Income (loss) before income taxes
742< /font>
 
 
0.2
 %
 
(58,063
)
 
(27.5
)%
(Benefit) provision for taxes
(9,505
)
 
(2.1
)%
 
20,703
 
 
9.8
 %
Net income (loss)
$
10,247
 
 
2.3
 %
 
$
(78,766
)
 
(37.2
)%
Income (loss) per common share:
 
 
 
 
 
 
 
Basic
$
0.35
 
 
 
 
$
(2.71
)
 
 
Diluted
$
0.35
 
 
 
 
$
(2.71
)
 
 
W eighted average common shares outstanding:
 
 
 
 
 
 
 
Basic
29,091
 
 
 
 
29,040
 
 
 
Diluted
29,101
 
 
 
 
29,051
 
 
 

 
 

Winnebago Industries, Inc.
Unaudited Balance Sheets
(In thousands)
 
36,566
 
August 28,
2010
 
August 29,
2009
ASSETS
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
74,691
 
 
$
 
Short-term investments
—
 
 
13,500
 
Receivables, net
18,798
 
 
11,717
 
Inventories
43,526
 
 
46,850
 
Prepaid expenses and other assets
4,570
 
 
3,4 25
 
Income taxes receivable
132
 
 
17,356
 
Total current assets
141,717
 
 
129,414
 
Property, plant, and equipment, net
25,677
 
 
28,040
 
Assets held for sale
4,254
 
 
6,515
 
Long-term investments
17,785
 
 
19,794
 
Investment in life insurance
23,250
 
 < /div>
22,451
 
Other assets
14,674
 
 
14,252
 
Total assets
$
227,357
 
 
$
220,466
 
 
 
 
 
LIABILITIES AND STOCKHOLDERS' EQUITY
 
 
 
Current liabilities:
 
 
 
Accounts payable
$
19,725
 
 
$
10,370
 
Short-term ARS borrowings
—
 
 
9,100
 
Income taxes payable
99
 
 
299
 
Accrued expenses
30,548
 
 
30,185
 
Total current liabilities
50,3 72
 
 
49,954
 
Long-term liabilities:
 
 
 
Unrecognized tax benefits
5,877
 
 
9,012
 
Postretirement health care and deferred compensation benefits, net of current portion
73,581
 
 
69,169
 
Total long-term liabilities
79,458
 
 
78,181
 
Stockholders' equity
97,527
 
 
92,331
 
Total liabilities and stockholders' equity
$
227,357
 
& nbsp;
$
220,466
 

 
 

Winnebago Industries, Inc.
Unaudited Statements of Cash Flows
(In thousands)
 
 
 
Year Ended
 
August 28,
2010
August 29,
2009
Operating activities:
 
 
Net income (loss)
$
10,247
 
$
(78,766
)
Adjustm ents to reconcile net income (loss) to net cash provided by operating activities:
 
 
Depreciation
6,340
 
7,834
 
Asset impairment
—
 
855
 
Stock-based compensation
546
 
1,010
 
Deferred income taxes including valuation allowance
—
 
37,440
 
Postretirement benefit income and deferred compensation expenses
1,275
 
1,252
 
(Reduction) provision for doubtful accounts
(37
)
73
 
Increase in cash surrender value of life insurance policies
(1,090
)
(858
)
Loss on disposal of property
25
 
75
 
Other
111
 
132
 
Change in assets and liabilities:
 
 
Inventories
3,324
 
63,746
 
Receivables and prepaid assets
(8,550
)
(2,074
)
     Income taxes and unrecognized tax benefits
14,692
 
(8,708
)
Accounts payable and accrued expenses
9,756
 
(10,567
)
Postretirement and deferred compensation benefits
(3,600
)
(3,172
)
Net cash provided by operating activities
33,039
 
8,272
 
 
 
 
Investing activities:
 
 
Proceeds from the sale of investments, at par
15,850
 
8,900
 
Purchases of property and equipment
(1,874
)
(3,473
)
Proceeds from the sale of property
96
 
296
 
Other
262
 
(737
)
Net cash provided by investing activities
14,334
 
4,986
 
 
 
 
Financing activities:
 
 
Payments for purchas e of common stock
(250
)
(163
)
Payments of cash dividends
—
 
(3,489
)
(Payments) borrowings on ARS portfolio
(9, 100
)
9,100
 
Proceeds from exercise of stock options
280
 
9
 
    Other
(178
)
—
 
Net cash (used in) provided by financing activities
(9,248
)
5,457
 
 
 
 
Net increase in cash and cash equivalents
38,125
 
18,715
 
Cash and cash equivalents at beginning of period
36,566
< font style="font-family:inherit;font-size:10pt;"> 
17,851
 
Cash and cash equivalents at end of period
$
74,691
 
$
36,566
 
 
 
 
Supplemental cash flow disclosure:
 
 
Income taxes (refunded) paid
$
(24,356
)
$
191
 

 
 

Winnebago Industries, Inc.
Unaudited Motor Home Deliveries
 
 
Quarter Ended
 
Change
(In units)
August 28,
2010
Product
< div style="font-family:Arial;text-align:center;font-size:10pt;">Mix %
 
August 29,
2009
Product
Mix %
 
Units
%
Change
Class A gas
453
 
38.9
%
 
124
 
20.5
%
 
329
 
265.3
 %
Class A diesel
262
 
22.5
%
 
117
 
19.3
%
 
145
 
123.9
 %
Total Class A
715
 
61.4
%
 
241
 
39.8
%
 
474
 
196.7
 %
Class B
34
 
2.9
%
 
50
 
8.3
%
 
(16
)
(32.0
)%
Class C
415
 
35.7
%
 
314< /div>
 
51.9
%
 
101
 
32.2
 %
Total deliveries
1,164
 
100.0
%
 
605
 
100.0
%
 
559
 
92.4
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended
 
Change
(In units)
August 28,
2010
Product
Mix %
 
August 29,
2009
Product
Mix %
 
Units
%
Change
Class A gas
1,483
 
33.5
%
 
480
 
21.8
%
 
1,003
 
209.0
 %
Class A diesel
969
 
21.9
%
 
342
 
15.6
%
 
627
 
183.3
 %
Total Class A
2,452
 
55.3
%
 
822
 
37.4
%
 
1,630
 
198.3
 %
Class B
236
 
5.3
%
 
149
 
6.8
%
 
< div style="text-align:right;font-size:10pt;">87
 
58.4
 %
Class C
1,745
 
39.4
%
 
1,225
 
55.8
%
 
520
 
42.4
 %
Total deliveries
4,433
 
100.0
%
 
2,196
 
100.0
%
 
2,237
 
101.9
 %
 
Winnebago Industries, Inc.
Unaudited Backlog and Dealer Inventory
 
 
As Of
 
Change
Sales order backlog (units):
August 28,
2010
Product
Mix
 
August 29,
2009
Product
Mix
 
Units
%
Class A gas
272
 
33.2
%
 
345
 
36.7
%
 
(73
)
(21.2
)%
Class A diesel
218
 
26.7
%
 
198
 
21.1
%
 
20
 
10.1
 %
Total Class A
490
 
59.9
%
 
543
 
57.8
%
 
(53
)
(9.8
)%
Class B
—
 
—
%
 
10
 
1.1
%
& nbsp;
(10
)
(100.0
)%
Class C
328
 
40.1
%
 
387
 
41.2
%
 
(59
)
(15.2
)%
Total backlog(1)
818
 
100.0
%
 
940
 
100.0
%
 
(122
)
(13.0
)%
 
 
 
 
 
 
 
 
 
Total approximate revenue dollars (in t housands)
$
82,773
 
 
 
$
86,626
 
 
 
$
(3,853
)
(4.4
)%
 
 
 
 
 
 
 
 
 
Dealer inventory (units)
2,044
 
 
 
1,694
 
 
 
350
 
20.7
 %
(1)     Our backlog includes all accepted 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.