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8K Q3 2013 Earnings 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 27, 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 June 27, 2013, as Exhibit 99.1 which is incorporated by reference herein. The press release was issued to report earnings for the third quarter of Fiscal 2013 ended June 1, 2013.


Item 9.01 Financial Statements and Exhibits.

(d)    Exhibits

Exhibit
Number    Description
99.1        Press release of Winnebago Industries, Inc. dated June 27, 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:
June 27, 2013
By:
/s/ Randy J. Potts
 
 
 
Name:
Randy J. Potts
 
 
 
Title:
Chairman of the Board, Chief Executive Officer and President
 



Q3 2013 Earnings Release


 News Release
 

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

WINNEBAGO INDUSTRIES REPORTS RESULTS FOR
THIRD QUARTER OF FISCAL 2013
-- Third Quarter Revenue Increase of 40% --
-- Third Quarter Operating Profit Increase of 191% --

FOREST CITY, IOWA, June 27, 2013 - Winnebago Industries, Inc. (NYSE:WGO), a leading United States (U.S.) recreation vehicle manufacturer, today reported financial results for the Company's third quarter of Fiscal 2013.

Revenues for the third quarter ended June 1, 2013 were $218.2 million, an increase of 40.1%, versus $155.7 million for the third quarter of Fiscal 2012. The Company reported operating income of $10.2 million for the quarter, an increase of 190.6% versus $3.5 million for the third quarter of Fiscal 2012. Net income for the third quarter of Fiscal 2013 was $7.7 million, an increase of 94.4%, versus $3.9 million for the third quarter of Fiscal 2012. Diluted earnings per share for the third quarter of Fiscal 2013 was $0.27, an increase of 107.7%, versus $0.13 for the third quarter of Fiscal 2012.

Earnings in the third quarter were positively impacted by increased motorhome volumes, driven by higher dealer and retail consumer demand. The increased volumes, along with lower incentives, provided fixed cost leverage, higher operating margins, net income and earnings per share as compared to the same quarter last year. Net cash generated from operations was $19.2 million in the third quarter.

Revenues for the first 40 weeks of Fiscal 2013 were $588.9 million, an increase of 40.5%, versus revenues of $419.1 million for the first 39 weeks of Fiscal 2012. The Company reported operating income of $29.1 million for the first nine months of Fiscal 2013, versus $3.0 million for the first nine months of Fiscal 2012. Net income for the first nine months of Fiscal 2013 was $21.3 million, an increase of 425.0%, versus $4.1 million, for the first nine months of Fiscal 2012. Diluted earnings per share for the first nine months of Fiscal 2013 was $0.76 per diluted share, an increase of 442.9%, versus $0.14 per diluted share for the first nine months of Fiscal 2012.

“We worked extremely hard to deliver significant improvement in the third quarter as compared to the prior year,” said Winnebago Industries' Chairman, CEO and President Randy Potts. "We again increased our shipment volume in nearly every sector of our business due to the continued rise in customer demand."

Potts continued, "We are very pleased with the marketplace response to our new 2014 motorhome and towable products, including the new Winnebago Forza and Itasca Solei. These products provide our dealers and retail customers with a new price point targeted at the largest growth component of the Class A diesel category. We are focused on bringing these exciting new products and others to market. Since the initial introduction to our dealer partners in late April at our Dealer Days event, we have moved forward with our planned staggered retail product rollouts which will continue throughout the coming months. We have had exceptional growth throughout Fiscal 2013, experiencing the best shipment quarter in over five years, while still increasing our sales order backlog."

Conference Call
Winnebago Industries, Inc. will conduct a conference call in conjunction with this release at 9 a.m. Central Time today, Thursday, June 27, 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, fifth wheel products and transit buses under the Winnebago, Itasca, Winnebago Touring Coach, SunnyBrook and Metro 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.
Consolidated Statements of Operations
(In thousands, except percent and per share data)
(Unaudited)

 
Quarter Ended
 
June 1, 2013
 
May 26, 2012
Net revenues
$
218,199

 
100.0
%
 
$
155,709

 
100.0
 %
Cost of goods sold
197,002

 
90.3
%
 
143,638

 
92.2
 %
Gross profit
21,197

 
9.7
%
 
12,071

 
7.8
 %
Operating expenses:
 
 
 
 
 
 
 
Selling
4,857

 
2.2
%
 
4,331

 
2.8
 %
General and administrative
6,092

 
2.8
%
 
4,213

 
2.7
 %
Total operating expenses
10,949

 
5.0
%
 
8,544

 
5.5
 %
Operating income
10,248

 
4.7
%
 
3,527

 
2.3
 %
Non-operating income
144

 
0.1
%
 
402

 
0.3
 %
Income before income taxes
10,392

 
4.8
%
 
3,929

 
2.5
 %
Provision (benefit) for taxes
2,731

 
1.3
%
 
(12
)
 
—
 %
Net income
$
7,661

 
3.5
%
 
$
3,941

 
2.5
 %
Income per common share:
 
 
 
 
 
 
 
Basic
$
0.27

 
 
 
$
0.13

 
 
Diluted
$
0.27

 
 
 
$
0.13

 
 
Weighted average common shares outstanding:
 
 
 
 
 
 
 
Basic
27,987

 
 
 
29,225

 
 
Diluted
28,087

 
 
 
29,263

 
 



 
Nine Months(1) Ended
 
June 1, 2013
 
May 26, 2012
Net revenues
$
588,919

 
100.0
%
 
$
419,146

 
100.0
 %
Cost of goods sold
529,784

 
90.0
%
 
391,733

 
93.5
 %
Gross profit
59,135

 
10.0
%
 
27,413

 
6.5
 %
Operating expenses:
 
 
 
 
 
 
 
Selling
13,649

 
2.3
%
 
12,485

 
3.0
 %
General and administrative
16,392

 
2.8
%
 
11,938

 
2.8
 %
Loss on sale of asset held for sale
28

 
0.0
%
 
—

 
0.0
 %
Total operating expenses
30,069

 
5.1
%
 
24,423

 
5.8
 %
Operating income
29,066

 
4.9
%
 
2,990

 
0.7
 %
Non-operating income
739

 
0.1
%
 
549

 
0.1
 %
Income before income taxes
29,805

 
5.1
%
 
3,539

 
0.8
 %
Provision (benefit) for taxes
8,468

 
1.4
%
 
(525
)
 
(0.1
)%
Net income
$
21,337

 
3.6
%
 
$
4,064

 
1.0
 %
Income per common share:
 
 
 
 
 
 
 
Basic
$
0.76

 
 
 
$
0.14

 
 
Diluted
$
0.76

 
 
 
$
0.14

 
 
Weighted average common shares outstanding:
 
 
 
 
 
 
 
Basic
28,128

 
 
 
29,171

 
 
Diluted
28,218

 
 
 
29,243

 
 


Percentages may not add due to rounding differences.

(1) The nine months ended June 1, 2013 and May 26, 2012 contained 40 weeks and 39 weeks, respectively.




Winnebago Industries, Inc.
Consolidated Balance Sheets
(In thousands)
(Unaudited)
 
June 1,
2013
 
August 25,
2012
ASSETS
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
42,422

 
$
62,683

Short-term investments
4,605

 
—

Receivables, net
31,421

 
22,726

Inventories
112,951

 
87,094

Prepaid expenses and other assets
6,718

 
4,509

Income taxes receivable and prepaid
2,416

 
1,603

Deferred income taxes
10,515

 
8,453

Total current assets
211,048

 
187,068

Total property and equipment, net
20,158

 
19,978

Assets held for sale
—

 
550

Long-term investments
4,385

 
9,074

Investment in life insurance
24,826

 
23,127

Deferred income taxes
28,112

 
30,520

Goodwill
1,228

 
1,228

Amortizable intangible assets
577

 
641

Other assets
12,537

 
13,886

Total assets
$
302,871

 
$
286,072

 
 
 
 
LIABILITIES AND STOCKHOLDERS' EQUITY
 
 
 
Current liabilities:
 
 
 
Accounts payable
$
28,398

 
$
24,920

Income taxes payable
—

 
348

Accrued expenses
41,088


35,750

Total current liabilities
69,486

 
61,018

Long-term liabilities:
 
 
 
Unrecognized tax benefits
4,931

 
5,228

Postretirement health care and deferred compensation benefits
70,354

 
75,135

Total long-term liabilities
75,285

 
80,363

Stockholders' equity
158,100

 
144,691

Total liabilities and stockholders' equity
$
302,871

 
$
286,072







Winnebago Industries, Inc.
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
 
Nine Months(1) Ended
 
June 1,
2013
 
May 26,
2012
Operating activities:
 
 
 
Net income
$
21,337

 
$
4,064

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Depreciation and amortization
3,190

 
3,786

LIFO expense
438

 
844

Stock-based compensation
1,258

 
863

Deferred income taxes including valuation allowance
(1,243
)
 
(753
)
Postretirement benefit income and deferred compensation expenses
259

 
510

    Provision for doubtful accounts
62

 
28

    (Gain) loss on disposal of property
(34
)
 
20

Gain on life insurance
(536
)
 
(281
)
    Increase in cash surrender value of life insurance policies
(853
)
 
(523
)
Other
—

 
579

Change in assets and liabilities:
 
 
 
Inventories
(26,295
)
 
(1,283
)
Receivables, prepaid and other assets
(10,819
)
 
1,893

     Income taxes and unrecognized tax benefits
(234
)
 
105

Accounts payable and accrued expenses
9,895

 
4,950

Postretirement and deferred compensation benefits
(3,359
)
 
(3,053
)
Net cash (used in) provided by operating activities
(6,934
)
 
11,749

 
 
 
 
Investing activities:
 
 
 
Proceeds from the sale of investments, at par
250

 
750

Proceeds from life insurance
1,004

 
1,404

Purchases of property and equipment
(3,322
)
 
(1,527
)
Proceeds from the sale of property
637

 
16

Payments of COLI borrowings
(1,371
)
 
—

Other
692

 
(558
)
Net cash (used in) provided by investing activities
(2,110
)
 
85

 
 
 
 
Financing activities:
 
 
 
Payments for purchase of common stock
(11,123
)
 
(343
)
    Other
(94
)
 
33

Net cash used in financing activities
(11,217
)
 
(310
)
 
 
 
 
Net (decrease) increase in cash and cash equivalents
(20,261
)
 
11,524

Cash and cash equivalents at beginning of period
62,683

 
69,307

Cash and cash equivalents at end of period
$
42,422

 
$
80,831

 
 
 
 
Supplemental cash flow disclosure:
 
 
 
Income taxes paid, net of refunds
$
9,946

 
$
115


(1) The nine months ended June 1, 2013 and May 26, 2012 contained 40 weeks and 39 weeks, respectively.





Winnebago Industries, Inc.
Deliveries
 
Quarter Ended
 
Change
(In units)
June 1,
2013
Product
Mix % (1)
 
May 26,
2012
Product
Mix % (1)
 
Units
%
Class A gas
656

33.2
%
 
429

33.5
%
 
227

52.9
 %
Class A diesel
323

16.3
%
 
234

18.3
%
 
89

38.0
 %
Total Class A
979

49.5
%
 
663

51.8
%
 
316

47.7
 %
Class B
78

3.9
%
 
87

6.8
%
 
(9
)
(10.3
)%
Class C
921

46.6
%
 
530

41.4
%
 
391

73.8
 %
Total motorhomes
1,978

100.0
%
 
1,280

100.0
%
 
698

54.5
 %
 
 
 
 
 
 
 
 
 
Travel trailer
587

82.3
%
 
357

55.3
%
 
230

64.4
 %
Fifth wheel
126

17.7
%
 
289

44.7
%
 
(163
)
(56.4
)%
    Total towables
713

100.0
%
 
646

100.0
%
 
67

10.4
 %
 
 
 
 
 
 
 
 
 
 
Nine Months(2) Ended
 
Change
(In units)
June 1,
2013
Product
Mix % (1)

 
May 26,
2012
Product
Mix % (1)

 
Units

%
Class A gas
1,779

36.1
%
 
1,163

35.0
%
 
616

53.0
 %
Class A diesel
989

20.1
%
 
701

21.1
%
 
288

41.1
 %
Total Class A
2,768

56.1
%
 
1,864

56.1
%
 
904

48.5
 %
Class B
263

5.3
%
 
215

6.5
%
 
48

22.3
 %
Class C
1,900

38.5
%
 
1,242

37.4
%
 
658

53.0
 %
Total motor homes
4,931

100.0
%
 
3,321

100.0
%
 
1,610

48.5
 %
 
 
 
 
 
 
 
 
 
Travel trailer
1,433

78.8
%
 
928

56.5
%
 
505

54.4
 %
Fifth wheel
385

21.2
%
 
715

43.5
%
 
(330
)
(46.2
)%
Total towables
1,818

100.0
%
 
1,643

100.0
%
 
175

10.7
 %
 
(1) Percentages may not add due to rounding differences.
(2) The nine months ended June 1, 2013 and May 26, 2012 contained 40 weeks and 39 weeks, respectively.  
Backlog
 
As Of
 
Change
 
June 1, 2013
 
May 26, 2012
 
 
 
 
Units
% (1)

 
Units
% (1)
 
Units
%
Class A gas
1,397

49.1
%
 
479

38.7
%
 
918

191.6
 %
Class A diesel
499

17.5
%
 
257

20.8
%
 
242

94.2
 %
Total Class A
1,896

66.6
%
 
736

59.5
%
 
1,160

157.6
 %
Class B
149

5.2
%
 
120

9.7
%
 
29

24.2
 %
Class C
801

28.1
%
 
381

30.8
%
 
420

110.2
 %
Total motorhome backlog(2)
2,846

100.0
%
 
1,237

100.0
%
 
1,609

130.1
 %
 
 
 
 
 
 
 
 
 
Travel trailer
359

81.0
%
 
301

59.6
%
 
58

19.3
 %
Fifth wheel
84

19.0
%
 
204

40.4
%
 
(120
)
(58.8
)%
    Total towable backlog (2)
443

100.0
%
 
505

100.0
%
 
(62
)
(12.3
)%
 
 
 
 
 
 
 
 
 
Total approximate backlog revenue dollars (in 000's):
 
 
 
 
 
 
Motorhome
$
292,307

 
 
$
131,418

 
 
$
160,889

122.4
 %
Towable
9,562

 
 
12,487

 
 
(2,925
)
(23.4
)%
  
(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.
Dealer Inventory
 
Units As Of
 
Change
 
June 1,
2013
 
May 26,
2012
 
Units
%
Motorhomes
2,634

 
1,940

 
694

35.8
%
Towables
1,642

 
1,370

 
272

19.9
%