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 28, 2013
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 March 28, 2013, as Exhibit 99.1 which is incorporated by reference herein. The press release was issued to report earnings for the second quarter of Fiscal 2013 ended March 2, 2013.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
Exhibit
Number Description
99.1 Press release of Winnebago Industries, Inc. dated March 28, 2013.
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: | March 28, 2013 | By: | /s/ Randy J. Potts | |
Name: | Randy J. Potts | |||
Title: | Chairman of the Board, Chief Executive Officer and President | |||
 News Release | ||
Contact: Sheila Davis - PR/IR Mgr. - 641-585-6803 - sdavis@winnebagoind.com
WINNEBAGO INDUSTRIES REPORTS RESULTS FOR
SECOND QUARTER OF FISCAL 2013
-- Net Income Increase over $7 million Compared To Second Quarter Fiscal 2012 --
FOREST CITY, IOWA, March 28, 2013 - Winnebago Industries, Inc. (NYSE:WGO), a leading United States (U.S.) recreation vehicle manufacturer, today reported financial results for the Company's second quarter of Fiscal 2013.
Revenues for the second quarter ended March 2, 2013 were $177.2 million, an increase of 34.6%, versus $131.6 million for the second quarter of Fiscal 2012. The Company reported operating income of $8.9 million for the quarter, versus operating loss of $1.2 million for the second quarter of Fiscal 2012. Net income for the second quarter of Fiscal 2013 was $6.3 million, or $0.22 per diluted share, versus a loss of $912,000, or $0.03 per diluted share for the second quarter of Fiscal 2012.
Earnings in the second quarter were positively impacted by increased motorized demand driving higher sales volume. The added sales volume, combined with firmer net pricing, increased manufacturing productivity and fixed cost leverage, resulted in higher operating margins, net income and earnings per share.
Revenues for the first 27-weeks of Fiscal 2013 were $370.7 million, an increase of 40.7%, versus revenues of $263.4 million for the first 26-weeks of Fiscal 2012. The Company reported operating income of $18.8 million for the first half of Fiscal 2013, versus operating loss of $537,000 for the first half of Fiscal 2012. Net income for the first half of Fiscal 2013 was $13.7 million, or $0.48 per diluted share, versus $123,000, or $0.00 per diluted share for the first half of Fiscal 2012.
“We had very positive comparisons this year versus the first half of Fiscal 2012,” said Winnebago Industries' Chairman, CEO and President Randy Potts. "Our motorhome sales growth continues to out-pace the industry. As evidenced by the heightened level of our sales order backlog, we continue to see great response to our products from our dealer partners as well as from retail consumers."
Potts continued, "We believe the motorized RV market will continue to grow toward pre-recession levels. Improved economic indicators such as rising housing starts, lower unemployment and attractive interest rates should create a positive environment going forward."
Conference Call
Winnebago Industries, Inc. will conduct a conference call in conjunction with this release at 9 a.m. Central Time today, Thursday, March 28, 2013. 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 Motorhomes®", is a leading U.S. manufacturer of recreation vehicles, which are used primarily in leisure travel and outdoor recreation activities. The Company builds quality motorhomes, 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, increased material and component costs, 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 | |||||||||||||
March 2, 2013 | February 25, 2012 | ||||||||||||
Net revenues | $ | 177,166 | 100.0 | % | $ | 131,600 | 100.0 | % | |||||
Cost of goods sold | 159,975 | 90.3 | % | 124,754 | 94.8 | % | |||||||
Gross profit | 17,191 | 9.7 | % | 6,846 | 5.2 | % | |||||||
Operating expenses: | |||||||||||||
Selling | 3,831 | 2.2 | % | 3,992 | 3.0 | % | |||||||
General and administrative | 4,488 | 2.5 | % | 4,018 | 3.1 | % | |||||||
Total operating expenses | 8,319 | 4.7 | % | 8,010 | 6.1 | % | |||||||
Operating income (loss) | 8,872 | 5.0 | % | (1,164 | ) | (0.9 | )% | ||||||
Non-operating expense | (19 | ) | — | % | (110 | ) | (0.1 | )% | |||||
Income (loss) before income taxes | 8,853 | 5.0 | % | (1,274 | ) | (1.0 | )% | ||||||
Provision (benefit) for taxes | 2,568 | 1.4 | % | (362 | ) | (0.3 | )% | ||||||
Net income (loss) | $ | 6,285 | 3.5 | % | $ | (912 | ) | (0.7 | )% | ||||
Income (loss) per common share: | |||||||||||||
Basic | $ | 0.22 | $ | (0.03 | ) | ||||||||
Diluted | $ | 0.22 | $ | (0.03 | ) | ||||||||
Weighted average common shares outstanding: | |||||||||||||
Basic | 28,084 | 29,151 | |||||||||||
Diluted | 28,191 | 29,248 | |||||||||||
Six Months(1) Ended | |||||||||||||
March 2, 2013 | February 25, 2012 | ||||||||||||
Net revenues | $ | 370,720 | 100.0 | % | $ | 263,437 | 100.0 | % | |||||
Cost of goods sold | 332,782 | 89.8 | % | 248,095 | 94.2 | % | |||||||
Gross profit | 37,938 | 10.2 | % | 15,342 | 5.8 | % | |||||||
Operating expenses: | |||||||||||||
Selling | 8,792 | 2.4 | % | 8,154 | 3.1 | % | |||||||
General and administrative | 10,300 | 2.8 | % | 7,725 | 2.9 | % | |||||||
Loss on sale of asset held for sale | 28 | 0.0 | % | — | 0.0 | % | |||||||
Total operating expenses | 19,120 | 5.2 | % | 15,879 | 6.0 | % | |||||||
Operating income (loss) | 18,818 | 5.1 | % | (537 | ) | (0.2 | )% | ||||||
Non-operating income | 595 | 0.2 | % | 147 | 0.1 | % | |||||||
Income (loss) before income taxes | 19,413 | 5.2 | % | (390 | ) | (0.1 | )% | ||||||
Provision (benefit) for taxes | 5,737 | 1.5 | % | (513 | ) | (0.2 | )% | ||||||
Net income | $ | 13,676 | 3.7 | % | $ | 123 | 0.0 | % | |||||
Income per common share: | |||||||||||||
Basic | $ | 0.49 | $ | 0.00 | |||||||||
Diluted | $ | 0.48 | $ | 0.00 | |||||||||
Weighted average common shares outstanding: | |||||||||||||
Basic | 28,196 | 29,145 | |||||||||||
Diluted | 28,280 | 29,231 | |||||||||||
Percentages may not add due to rounding differences.
(1) The six months ended March 2, 2013 and February 25, 2012 contained 27 weeks and 26 weeks, respectively.
Winnebago Industries, Inc.
Unaudited Consolidated Balance Sheets
(In thousands)
March 2, 2013 | August 25, 2012 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 26,235 | $ | 62,683 | |||
Receivables, net | 26,906 | 22,726 | |||||
Inventories | 123,944 | 87,094 | |||||
Prepaid expenses and other assets | 6,689 | 4,509 | |||||
Income taxes receivable | 1,278 | 1,603 | |||||
Deferred income taxes | 9,419 | 8,453 | |||||
Total current assets | 194,471 | 187,068 | |||||
Total property and equipment, net | 20,260 | 19,978 | |||||
Assets held for sale | — | 550 | |||||
Long-term investments | 8,735 | 9,074 | |||||
Investment in life insurance | 24,515 | 23,127 | |||||
Deferred income taxes | 29,518 | 30,520 | |||||
Goodwill | 1,228 | 1,228 | |||||
Amortizable intangible assets | 599 | 641 | |||||
Other assets | 12,831 | 13,886 | |||||
Total assets | $ | 292,157 | $ | 286,072 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 26,083 | $ | 24,920 | |||
Income taxes payable | 1,152 | 348 | |||||
Accrued expenses | 36,767 | 35,750 | |||||
Total current liabilities | 64,002 | 61,018 | |||||
Long-term liabilities: | |||||||
Unrecognized tax benefits | 5,096 | 5,228 | |||||
Postretirement health care and deferred compensation benefits | 70,027 | 75,135 | |||||
Total long-term liabilities | 75,123 | 80,363 | |||||
Stockholders' equity | 153,032 | 144,691 | |||||
Total liabilities and stockholders' equity | $ | 292,157 | $ | 286,072 | |||
Winnebago Industries, Inc.
Unaudited Consolidated Statements of Cash Flows
(In thousands)
Six Months(1) Ended | |||||||
March 2, 2013 | February 25, 2012 | ||||||
Operating activities: | |||||||
Net income | $ | 13,676 | $ | 123 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 2,178 | 2,590 | |||||
LIFO expense | 551 | 529 | |||||
Stock-based compensation | 996 | 749 | |||||
Deferred income taxes including valuation allowance | (1,550 | ) | (320 | ) | |||
Postretirement benefit income and deferred compensation expenses | 284 | 448 | |||||
Provision for doubtful accounts | 6 | 20 | |||||
(Gain) loss on disposal of property | (26 | ) | 21 | ||||
Gain on life insurance | (509 | ) | (195 | ) | |||
Increase in cash surrender value of life insurance policies | (547 | ) | (221 | ) | |||
Other | — | 311 | |||||
Change in assets and liabilities: | |||||||
Inventories | (37,401 | ) | 8,453 | ||||
Receivables, prepaid and other assets | (6,334 | ) | 1,222 | ||||
Income taxes and unrecognized tax benefits | 1,618 | (248 | ) | ||||
Accounts payable and accrued expenses | 3,052 | (207 | ) | ||||
Postretirement and deferred compensation benefits | (2,136 | ) | (1,877 | ) | |||
Net cash (used in) provided by operating activities | (26,142 | ) | 11,398 | ||||
Investing activities: | |||||||
Proceeds from the sale of investments, at par | 250 | 750 | |||||
Proceeds from life insurance | 974 | 643 | |||||
Purchases of property and equipment | (2,443 | ) | (1,168 | ) | |||
Proceeds from the sale of property | 614 | 7 | |||||
Payments of COLI borrowings | (1,371 | ) | — | ||||
Other | 151 | 65 | |||||
Net cash (used in) provided by investing activities | (1,825 | ) | 297 | ||||
Financing activities: | |||||||
Payments for purchase of common stock | (8,367 | ) | (235 | ) | |||
Other | (114 | ) | 33 | ||||
Net cash used in financing activities | (8,481 | ) | (202 | ) | |||
Net (decrease) increase in cash and cash equivalents | (36,448 | ) | 11,493 | ||||
Cash and cash equivalents at beginning of period | 62,683 | 69,307 | |||||
Cash and cash equivalents at end of period | $ | 26,235 | $ | 80,800 | |||
Supplemental cash flow disclosure: | |||||||
Income taxes paid, net of refunds | $ | 5,670 | $ | 55 | |||
(1) The six months ended March 2, 2013 and February 25, 2012 contained 27 weeks and 26 weeks, respectively.
Winnebago Industries, Inc.
Unaudited Deliveries | ||||||||||||||
Quarter Ended | Change | |||||||||||||
(In units) | March 2, 2013 | Product Mix % (1) | February 25, 2012 | Product Mix % (1) | Units | % | ||||||||
Class A gas | 503 | 35.4 | % | 353 | 35.3 | % | 150 | 42.5 | % | |||||
Class A diesel | 321 | 22.6 | % | 235 | 23.5 | % | 86 | 36.6 | % | |||||
Total Class A | 824 | 58.1 | % | 588 | 58.7 | % | 236 | 40.1 | % | |||||
Class B | 95 | 6.7 | % | 49 | 4.9 | % | 46 | 93.9 | % | |||||
Class C | 500 | 35.2 | % | 364 | 36.4 | % | 136 | 37.4 | % | |||||
Total motorhomes | 1,419 | 100.0 | % | 1,001 | 100.0 | % | 418 | 41.8 | % | |||||
Travel trailer | 438 | 79.9 | % | 304 | 54.1 | % | 134 | 44.1 | % | |||||
Fifth wheel | 110 | 20.1 | % | 258 | 45.9 | % | (148 | ) | (57.4 | )% | ||||
Total towables | 548 | 100.0 | % | 562 | 100.0 | % | (14 | ) | (2.5 | )% | ||||
Six Months(2) Ended | Change | |||||||||||||
(In units) | March 2, 2013 | Product Mix % (1) | February 25, 2012 | Product Mix % (1) | Units | % | ||||||||
Class A gas | 1,123 | 38.0 | % | 734 | 36.0 | % | 389 | 53.0 | % | |||||
Class A diesel | 666 | 22.6 | % | 467 | 22.9 | % | 199 | 42.6 | % | |||||
Total Class A | 1,789 | 60.6 | % | 1,201 | 58.8 | % | 588 | 49.0 | % | |||||
Class B | 185 | 6.3 | % | 128 | 6.3 | % | 57 | 44.5 | % | |||||
Class C | 979 | 33.2 | % | 712 | 34.9 | % | 267 | 37.5 | % | |||||
Total motor homes | 2,953 | 100.0 | % | 2,041 | 100.0 | % | 912 | 44.7 | % | |||||
Travel trailer | 846 | 76.6 | % | 571 | 57.3 | % | 275 | 48.2 | % | |||||
Fifth wheel | 259 | 23.4 | % | 426 | 42.7 | % | (167 | ) | (39.2 | )% | ||||
Total towables | 1,105 | 100.0 | % | 997 | 100.0 | % | 108 | 10.8 | % | |||||
(1) Percentages may not add due to rounding differences.
(2) The six months ended March 2, 2013 and February 25, 2012 contained 27 weeks and 26 weeks, respectively.
Unaudited Backlog | |||||||||||||||||
As Of | Change | ||||||||||||||||
March 2, 2013 | February 25, 2012 | ||||||||||||||||
Units | % (1) | Units | % (1) | Units | % | ||||||||||||
Class A gas | 1,216 | 44.2 | % | 306 | 30.5 | % | 910 | 297.4 | % | ||||||||
Class A diesel | 375 | 13.6 | % | 196 | 19.5 | % | 179 | 91.3 | % | ||||||||
Total Class A | 1,591 | 57.8 | % | 502 | 50.0 | % | 1,089 | 216.9 | % | ||||||||
Class B | 121 | 4.4 | % | 83 | 8.3 | % | 38 | 45.8 | % | ||||||||
Class C | 1,040 | 37.8 | % | 419 | 41.7 | % | 621 | 148.2 | % | ||||||||
Total motorhome backlog(2) | 2,752 | 100.0 | % | 1,004 | 100.0 | % | 1,748 | 174.1 | % | ||||||||
Travel trailer | 325 | 85.3 | % | 230 | 55.2 | % | 95 | 41.3 | % | ||||||||
Fifth wheel | 56 | 14.7 | % | 187 | 44.8 | % | (131 | ) | (70.1 | )% | |||||||
Total towable backlog (2) | 381 | 100.0 | % | 417 | 100.0 | % | (36 | ) | (8.6 | )% | |||||||
Total approximate backlog revenue dollars (in 000's): | |||||||||||||||||
Motorhome | $ | 277,270 | $ | 103,978 | $ | 173,292 | 166.7 | % | |||||||||
Towable | 8,105 | 10,671 | (2,566 | ) | (24.0 | )% | |||||||||||
(1) | Percentages may not add due to rounding differences. |
(2) | 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. |
Unaudited Dealer Inventory | ||||||||||
Units As Of | Change | |||||||||
March 2, 2013 | February 25, 2012 | Units | % | |||||||
Motorhomes | 2,392 | 2,074 | 318 | 15.3 | % | |||||
Towables | 1,775 | 1,376 | 399 | 29.0 | % | |||||