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 16, 2014
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 October 16, 2014, as Exhibit 99.1 which is incorporated by reference herein. The press release was issued to report earnings for the fourth quarter and Fiscal 2014 ended August 30, 2014.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
Exhibit
Number Description
99.1 Press release of Winnebago Industries, Inc. dated October 16, 2014.
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 16, 2014 | 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@wgo.net
WINNEBAGO INDUSTRIES ANNOUNCES FOURTH QUARTER AND FISCAL 2014 RESULTS
-- Full-Year Revenues Increased 18% and Earnings Per Share Increased 45% --
-- Board of Directors Approved Quarterly Cash Dividend of $0.09 Per Share --
FOREST CITY, IOWA, October 16, 2014 - Winnebago Industries, Inc. (NYSE:WGO), a leading United States recreation vehicle manufacturer, today reported financial results for the Company's fourth quarter and Fiscal 2014.
Fourth Quarter Fiscal 2014 Results
Revenues for the Fiscal 2014 fourth quarter ended August 30, 2014 were $245.9 million, an increase of 14.8%, versus $214.2 million for the Fiscal 2013 fourth quarter. Comparing the Fiscal 2014 fourth quarter to the same period of Fiscal 2013, operating income rose 19.2% to $18.3 million, net income grew 21.8% to $12.9 million and diluted earnings per share increased 26.3% to $0.48 from $0.38.
Fourth quarter earnings improved year over year primarily as a result of higher motorhome unit sales, a significant improvement in towables profitability and operating expense leverage. Motorhome revenue grew 15.0% driven by motorhome unit growth of 25.1%, partially offset by lower motorhome average selling prices (ASP) of 8.4% as a result of product mix. Towables operating income improved by $1.4 million and was positively impacted by towables revenue growth of 8.6%, comprised of a 9.9% improvement in ASP and a 0.8% increase in units.
Operating expenses as a percentage of revenues were favorably leveraged during the quarter and contributed 50 basis points to the improvement in operating income margin.
Compared to the same periods of last year, the Company’s motorhome retail registrations increased 17% in the Fiscal 2014 fourth quarter and 28% on a rolling 12-month basis, based on internally reported retail information.
Full-Year Fiscal 2014 Results
Revenues for the 52-weeks of Fiscal 2014 were $945.2 million, an increase of 17.7%, from $803.2 million for the 53-weeks of Fiscal 2013. Comparing Fiscal 2014 to Fiscal 2013, operating income rose 43.9% to $63.9 million, net income grew 41.0% to $45.1 million, and diluted earnings per share increased 45.1% to $1.64 from $1.13.
Reinstatement of Quarterly Cash Dividend
As announced on October 15, the Company’s board of directors approved a quarterly cash dividend of $0.09 per share. The first quarterly dividend of $0.09 per share will be paid on November 26, 2014, to common stockholders of record at the close of business on November 12, 2014.
Management Comments
Chairman, CEO and President Randy Potts commented, “Demand for our products resulted in industry-leading unit volume growth and market share gains for Winnebago motorized products through the first seven months of calendar 2014 according to Statistical Surveys. The motorized growth and profitability within our towables business contributed to an outstanding fiscal year for the company resulting in year over year earnings per share growth of 45%. With a strong product lineup and increasing confidence in our towables group, we believe we are well positioned to leverage future growth opportunities.”
Chief Financial Officer Sarah Nielsen added, “We generated $13.0 million in operating cash flow during the fourth quarter of Fiscal 2014 primarily as a result of improved profitability. We did experience an increase in receivables of $13.4 million in the fourth quarter due to a greater level of units in transit, however, this was offset by non-cash expenses and other changes in working capital. With no debt and nearly $58 million in cash, our balance sheet is very strong, supporting future growth opportunities as well as potential stock repurchases and our recently announced quarterly cash dividend.”
Conference Call
Winnebago Industries, Inc. will conduct a conference call to discuss fourth-quarter and Fiscal 2014 results at 9 a.m. Central Time today. 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.wgo.net/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, fifth wheel products, and transit buses. Winnebago Industries has received the Quality Circle Award from the Recreation Vehicle Dealers Association every year since 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.wgo.net/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, availability of labor, 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 Income
(In thousands, except percent and per share data)
Quarter Ended | |||||||||||||
August 30, 2014 | August 31, 2013 | ||||||||||||
Net revenues | $ | 245,935 | 100.0 | % | $ | 214,246 | 100.0 | % | |||||
Cost of goods sold | 217,226 | 88.3 | % | 188,750 | 88.1 | % | |||||||
Gross profit | 28,709 | 11.7 | % | 25,496 | 11.9 | % | |||||||
Operating expenses: | |||||||||||||
Selling | 4,584 | 1.9 | % | 4,669 | 2.2 | % | |||||||
General and administrative | 5,847 | 2.4 | % | 5,495 | 2.6 | % | |||||||
Total operating expenses | 10,431 | 4.2 | % | 10,164 | 4.7 | % | |||||||
Operating income | 18,278 | 7.4 | % | 15,332 | 7.2 | % | |||||||
Non-operating income (expense) | 16 | — | % | (43 | ) | — | % | ||||||
Income before income taxes | 18,294 | 7.4 | % | 15,289 | 7.1 | % | |||||||
Provision for taxes | 5,365 | 2.2 | % | 4,673 | 2.2 | % | |||||||
Net income | $ | 12,929 | 5.3 | % | $ | 10,616 | 5.0 | % | |||||
Income per common share: | |||||||||||||
Basic | $ | 0.48 | $ | 0.38 | |||||||||
Diluted | $ | 0.48 | $ | 0.38 | |||||||||
Weighted average common shares outstanding: | |||||||||||||
Basic | 27,064 | 27,912 | |||||||||||
Diluted | 27,181 | 28,019 | |||||||||||
Year(1) Ended | |||||||||||||
August 30, 2014 | August 31, 2013 | ||||||||||||
Net revenues | $ | 945,163 | 100.0 | % | $ | 803,165 | 100.0 | % | |||||
Cost of goods sold | 841,166 | 89.0 | % | 718,534 | 89.5 | % | |||||||
Gross profit | 103,997 | 11.0 | % | 84,631 | 10.5 | % | |||||||
Operating expenses: | |||||||||||||
Selling | 18,293 | 1.9 | % | 18,318 | 2.3 | % | |||||||
General and administrative | 22,424 | 2.4 | % | 21,887 | 2.7 | % | |||||||
(Gain) loss on sale of real estate | (629 | ) | (0.1 | )% | 28 | — | % | ||||||
Total operating expenses | 40,088 | 4.2 | % | 40,233 | 5.0 | % | |||||||
Operating income | 63,909 | 6.8 | % | 44,398 | 5.5 | % | |||||||
Non-operating income | 768 | 0.1 | % | 696 | 0.1 | % | |||||||
Income before income taxes | 64,677 | 6.8 | % | 45,094 | 5.6 | % | |||||||
Provision for taxes | 19,624 | 2.1 | % | 13,141 | 1.6 | % | |||||||
Net income | $ | 45,053 | 4.8 | % | $ | 31,953 | 4.0 | % | |||||
Income per common share: | |||||||||||||
Basic | $ | 1.64 | $ | 1.14 | |||||||||
Diluted | $ | 1.64 | $ | 1.13 | |||||||||
Weighted average common shares outstanding: | |||||||||||||
Basic | 27,430 | 28,075 | |||||||||||
Diluted | 27,545 | 28,170 | |||||||||||
Percentages may not add due to rounding differences.
(1) The fiscal year ended August 30, 2014 and August 31, 2013 contained 52 weeks and 53 weeks, respectively.
Winnebago Industries, Inc.
Unaudited Consolidated Balance Sheets
(In thousands)
August 30, 2014 | August 31, 2013 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 57,804 | $ | 64,277 | |||
Receivables, net | 69,699 | 29,145 | |||||
Inventories | 112,848 | 112,541 | |||||
Investment in operating leases | 15,978 | — | |||||
Prepaid expenses and other assets | 5,718 | 8,277 | |||||
Income taxes receivable | 5 | 1,868 | |||||
Deferred income taxes | 9,641 | 7,742 | |||||
Total current assets | 271,693 | 223,850 | |||||
Total property and equipment, net | 25,135 | 20,266 | |||||
Long-term investments | — | 2,108 | |||||
Investment in life insurance | 25,126 | 25,051 | |||||
Deferred income taxes | 24,029 | 25,649 | |||||
Goodwill | 1,228 | 1,228 | |||||
Other assets | 11,091 | 10,993 | |||||
Total assets | $ | 358,302 | $ | 309,145 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 33,111 | $ | 28,142 | |||
Operating lease repurchase obligations | 16,050 | — | |||||
Income taxes payable | 2,927 | — | |||||
Accrued expenses | 47,631 | 42,212 | |||||
Total current liabilities | 99,719 | 70,354 | |||||
Long-term liabilities: | |||||||
Unrecognized tax benefits | 3,024 | 3,988 | |||||
Postretirement health care and deferred compensation benefits, net of current portion | 62,811 | 64,074 | |||||
Total long-term liabilities | 65,835 | 68,062 | |||||
Stockholders' equity | 192,748 | 170,729 | |||||
Total liabilities and stockholders' equity | $ | 358,302 | $ | 309,145 | |||
Winnebago Industries, Inc.
Unaudited Consolidated Statements of Cash Flows
(In thousands)
Year(1) Ended | ||||||
August 30, 2014 | August 31, 2013 | |||||
Operating activities: | ||||||
Net income | $ | 45,053 | $ | 31,953 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
Depreciation and amortization | 3,997 | 4,764 | ||||
LIFO expense (income) | 1,456 | (1,180 | ) | |||
Postretirement benefit income and deferred compensation expenses | (979 | ) | 245 | |||
Stock-based compensation | 3,386 | 3,009 | ||||
Provision for doubtful accounts | (19 | ) | 25 | |||
Deferred income taxes including valuation allowance | (48 | ) | 1,790 | |||
Gain on life insurance | (726 | ) | (536 | ) | ||
Loss on sale of investment | — | 45 | ||||
Increase in cash surrender value of life insurance policies | (805 | ) | (1,030 | ) | ||
Gain on disposal of property | (691 | ) | (95 | ) | ||
Change in assets and liabilities: | ||||||
Inventories | (1,763 | ) | (24,267 | ) | ||
Receivables, prepaid and other assets | (38,233 | ) | (8,908 | ) | ||
Investment in operating leases, net of repurchase obligations | 72 | — | ||||
Income taxes and unrecognized tax benefits | 5,625 | (194 | ) | |||
Accounts payable and accrued expenses | 10,919 | 8,939 | ||||
Postretirement and deferred compensation benefits | (4,008 | ) | (4,322 | ) | ||
Net cash provided by operating activities | 23,236 | 10,238 | ||||
Investing activities: | ||||||
Proceeds from the sale of investments | 2,350 | 7,300 | ||||
Proceeds from life insurance | 1,737 | 1,004 | ||||
Purchases of property and equipment | (10,476 | ) | (4,422 | ) | ||
Proceeds from the sale of property | 2,423 | 734 | ||||
Payments of COLI borrowings | — | (1,371 | ) | |||
Other | (1,402 | ) | 822 | |||
Net cash (used in) provided by investing activities | (5,368 | ) | 4,067 | |||
Financing activities: | ||||||
Payments for purchase of common stock | (26,340 | ) | (12,718 | ) | ||
Proceeds from exercise of stock options | 2,080 | 75 | ||||
Other | (81 | ) | (68 | ) | ||
Net cash used in financing activities | (24,341 | ) | (12,711 | ) | ||
Net (decrease) increase in cash and cash equivalents | (6,473 | ) | 1,594 | |||
Cash and cash equivalents at beginning of period | 64,277 | 62,683 | ||||
Cash and cash equivalents at end of period | $ | 57,804 | $ | 64,277 | ||
Supplemental cash flow disclosure: | ||||||
Income taxes paid | $ | 14,061 | $ | 11,500 | ||
(1) The fiscal year ended August 30, 2014 and August 31, 2013 contained 52 weeks and 53 weeks, respectively.
Winnebago Industries, Inc.
Unaudited Deliveries
Quarter Ended | Change | |||||||||||||
(In units) | August 30, 2014 | Product Mix % (1) | August 31, 2013 | Product Mix % (1) | Units | % Change | ||||||||
Class A gas | 971 | 41.1 | % | 667 | 35.3 | % | 304 | 45.6 | % | |||||
Class A diesel | 277 | 11.7 | % | 326 | 17.2 | % | (49 | ) | (15.0 | )% | ||||
Total Class A | 1,248 | 52.8 | % | 993 | 52.5 | % | 255 | 25.7 | % | |||||
Class B | 227 | 9.6 | % | 109 | 5.8 | % | 118 | 108.3 | % | |||||
Class C | 889 | 37.6 | % | 788 | 41.7 | % | 101 | 12.8 | % | |||||
Total motor homes | 2,364 | 100.0 | % | 1,890 | 100.0 | % | 474 | 25.1 | % | |||||
Travel trailer | 584 | 80.8 | % | 605 | 84.4 | % | (21 | ) | (3.5 | )% | ||||
Fifth wheel | 139 | 19.2 | % | 112 | 15.6 | % | 27 | 24.1 | % | |||||
Total towables | 723 | 100.0 | % | 717 | 100.0 | % | 6 | 0.8 | % | |||||
Year(3) Ended | Change | |||||||||||||
(In units) | August 30, 2014 | Product Mix % (1) | August 31, 2013 | Product Mix % (1) | Units | % Change | ||||||||
Class A gas | 3,056 | 34.9 | % | 2,446 | 35.9 | % | 610 | 24.9 | % | |||||
Class A diesel | 1,410 | 16.1 | % | 1,315 | 19.3 | % | 95 | 7.2 | % | |||||
Total Class A | 4,466 | 51.0 | % | 3,761 | 55.1 | % | 705 | 18.7 | % | |||||
Class B | 751 | 8.6 | % | 372 | 5.5 | % | 379 | 101.9 | % | |||||
Class C | 3,538 | 40.4 | % | 2,688 | 39.4 | % | 850 | 31.6 | % | |||||
Total motor homes (2) | 8,755 | 100.0 | % | 6,821 | 100.0 | % | 1,934 | 28.4 | % | |||||
Travel trailer | 2,052 | 81.8 | % | 2,038 | 80.4 | % | 14 | 0.7 | % | |||||
Fifth wheel | 457 | 18.2 | % | 497 | 19.6 | % | (40 | ) | (8.0 | )% | ||||
Total towables | 2,509 | 100.0 | % | 2,535 | 100.0 | % | (26 | ) | (1.0 | )% | ||||
(1) Percentages may not add due to rounding differences.
(2) An additional 343 motorhomes were delivered in Fiscal 2014 but not included in wholesale deliveries as presented in the tables above as the units are subject to repurchase option.
(3) The fiscal year ended August 30, 2014 and August 31, 2013 contained 52 and 53 weeks, respectively.
Unaudited Backlog
As Of | Change | ||||||||||||||||
August 30, 2014 | August 31, 2013 | % | |||||||||||||||
Units | % (1) | Units | % (1) | Units | Change | ||||||||||||
Class A gas | 338 | 17.8 | % | 1,405 | 41.6 | % | (1,067 | ) | (75.9 | )% | |||||||
Class A diesel | 302 | 15.9 | % | 607 | 18.0 | % | (305 | ) | (50.2 | )% | |||||||
Total Class A | 640 | 33.7 | % | 2,012 | 59.5 | % | (1,372 | ) | (68.2 | )% | |||||||
Class B | 323 | 17.0 | % | 300 | 8.9 | % | 23 | 7.7 | % | ||||||||
Class C | 936 | 49.3 | % | 1,068 | 31.6 | % | (132 | ) | (12.4 | )% | |||||||
Total motor home backlog(2) | 1,899 | 100.0 | % | 3,380 | 100.0 | % | (1,481 | ) | (43.8 | )% | |||||||
Travel trailer | 134 | 82.2 | % | 180 | 81.4 | % | (46 | ) | (25.6 | )% | |||||||
Fifth wheel | 29 | 17.8 | % | 41 | 18.6 | % | (12 | ) | (29.3 | )% | |||||||
Total towable backlog (2) | 163 | 100.0 | % | 221 | 100.0 | % | (58 | ) | (26.2 | )% | |||||||
Total approximate backlog revenue dollars (in 000's): | |||||||||||||||||
Motor home | $ | 172,575 | $ | 346,665 | $ | (174,090 | ) | (50.2 | )% | ||||||||
Towable | 3,750 | 4,744 | (994 | ) | (21.0 | )% | |||||||||||
(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 | ||||||||||
August 30, 2014 | August 31, 2013 | Change | ||||||||
Motor homes | 3,979 | 2,654 | 1,325 | 49.9 | % | |||||
Towables | 1,721 | 1,611 | 110 | 6.8 | % | |||||