Winnebago Industries, Inc. (NYSE: WGO), a leading outdoor lifestyle
product manufacturer, today reported financial results for the
Company's fourth quarter and full year Fiscal 2023.
Fourth Quarter Fiscal 2023 ResultsRevenues for the Fiscal 2023
fourth quarter ended August 26, 2023, were $771.0 million, a
decrease of 34.6% compared to $1.2 billion for the Fiscal 2022
period, driven by lower unit sales related to current market
conditions and dealer efforts to reduce inventories, and higher
discounts and allowances compared to prior year, partially offset
by carryover price increases. Gross profit was $127.5 million, a
decrease of 39.4% compared to $210.4 million for the Fiscal 2022
period. Gross profit margin decreased 130 basis points in the
quarter to 16.5%, as a result of volume deleverage and higher
discounts and allowances compared to prior year. Operating income
was $57.5 million for the quarter, a decrease of 53.4% compared to
$123.6 million for the fourth quarter of last year. Fiscal 2023
fourth quarter net income was $43.8 million, a decrease of 47.0%
compared to $82.6 million in the prior year quarter. Reported
earnings per diluted share was $1.28, compared to reported earnings
per diluted share of $2.61 in the same period last year. Adjusted
earnings per diluted share was $1.59, a decrease of 47.4% compared
to Adjusted earnings per diluted share of $3.02 in the same period
last year. Consolidated Adjusted EBITDA was $72.9 million for the
quarter, compared to $139.2 million last year, a decrease of
47.6%.
President and Chief Executive Officer Michael Happe commented,
“While the consumer market continues to be challenged and our
fourth quarter results reflect a stubborn retail environment, we
continued to see the benefits of our diversified portfolio on our
results for the fiscal year. Our team has remained intently focused
on rationalizing inventory levels, optimizing our supply chain, and
appropriately managing capacity, output, and cost in a strategic
manner. Those efforts, combined with disciplined capital
allocation, have enabled us to drive sustained profitability in our
consolidated results supported by our diverse portfolio of premium
brands, allowing us to continue investing in our growth initiatives
and return meaningful value to our shareholders. A significant
highlight of Fiscal 2023 was completing the acquisition of
Lithionics Battery which has bolstered our onboard battery
solutions offering, energized our electrical supply ecosystem, and
positioned Winnebago Industries as a leader in electrification. Our
continued focus on strategically investing in our business, new
products and innovation reflects the confidence we have in our
ability to drive growth and expand market share by providing our
customers with more diverse and exciting options. As always, I want
to thank our 6,250+ Winnebago Industries employees for their
continued hard work and dedication in a challenging and dynamic
environment.”
Full Year Fiscal 2023 ResultsFiscal 2023 revenues of $3.5
billion decreased 29.6% from $5.0 billion in Fiscal 2022 primarily
due to lower unit sales related to retail market conditions and
higher discounts and allowances compared to prior year, partially
offset by carryover price increases. Gross profit margin of 16.8%
decreased 190 basis points year-over-year driven primarily by
volume deleverage and higher discounts and allowances compared to
prior year. Operating income was $300.7 million for Fiscal 2023
compared to $583.5 million in Fiscal 2022. Net income was $215.9
million compared to $390.6 million in the prior year. Earnings per
diluted share was $6.23 compared to earnings per diluted share of
$11.84 in Fiscal 2022. Adjusted earnings per diluted share was
$7.67 compared to Adjusted earnings per diluted share of $13.81 in
the same period last year. Consolidated Adjusted EBITDA was $354.7
million compared to $648.9 million in Fiscal 2022.
Towable RV Fourth Quarter and Full Year Fiscal 2023
ResultsRevenues for the Towable RV segment were $341.4 million for
the fourth quarter Fiscal 2023, down 30.9% from the prior year,
primarily driven by a decline in unit volume associated with retail
market conditions and a cautious dealer network, as well as higher
levels of discounts and allowances compared to prior year. Segment
Adjusted EBITDA was $42.7 million, down 19.7% from the prior year
period. Adjusted EBITDA margin of 12.5% increased 170 basis points
from the prior year reflecting cost reduction efforts and favorable
warranty experience partially offset by volume deleverage and
higher levels of discounting and allowances. Backlog decreased to
$208.1 million, down 63.9% from the prior year due to continued
softness in retail conditions and a cautious dealer network.
For the full year Fiscal 2023, revenues for the Towable RV
segment were $1.4 billion, down 45.5% from Fiscal 2022 driven by a
decline in unit volume associated with retail market conditions, a
reduction in dealer inventories, and higher levels of discounts and
allowances compared to prior year, partially offset by carryover
price increases. Segment Adjusted EBITDA for the full year was
$172.1 million, down 55.1% year-over-year. Adjusted EBITDA margin
of 12.2% decreased 260 basis points for the full year from Fiscal
2022, primarily due to volume deleverage and higher discounts and
allowances, partially offset by successful cost reduction
initiatives and favorable warranty experience.
Motorhome RV Fourth Quarter and Full Year Fiscal 2023
ResultsRevenues for the Motorhome RV segment were $317.7 million
for the fourth quarter, down 42.8% from the prior year, driven by a
decline in unit volume associated with retail market conditions and
higher levels of discounts and allowances compared to prior year,
partially offset by price increases related to higher chassis
costs. Segment Adjusted EBITDA was $22.4 million, a decrease of
71.1% from the prior year. Adjusted EBITDA margin of 7.0% decreased
690 basis points from the prior year and 20 basis points
sequentially, primarily driven by volume deleverage, higher
discounts and allowances, and operational efficiency challenges.
Backlog decreased to $688.6 million, down 59.2% from the prior
year, driven by continued softness in retail conditions and a
cautious dealer network.
For the full year Fiscal 2023, revenues for the Motorhome RV
segment were $1.6 billion, down 18.4% from Fiscal 2022 driven by
unit volume declines associated with retail market conditions and
higher levels of discounts and allowances compared to prior year,
partially offset by price increases related to higher chassis
costs. Segment Adjusted EBITDA for the full year was $142.0
million, down 40.3% from Fiscal 2022. Adjusted EBITDA margin of
9.1% was down 340 basis points for the full year over Fiscal 2022,
due to volume deleverage, higher discounts and allowances, and
operational efficiency challenges.
Marine Fourth Quarter and Full Year Fiscal 2023 ResultsRevenues
for the Marine segment were $96.4 million for the fourth quarter,
down 21.0% from the prior year, driven by lower unit sales related
to current market conditions and higher discounts and allowances,
partially offset by price increases. Segment Adjusted EBITDA was
$10.3 million, a decrease of $7.3 million from the prior year.
Adjusted EBITDA margin of 10.6% decreased 370 basis points from the
prior year due to volume deleverage and higher levels of
discounting and allowances. Backlog for the Marine segment
decreased to $194.7 million, down 38.1% from the prior year
primarily driven by cautious dealer sentiment related to rising
inventory levels.
For the full year Fiscal 2023, revenues for the Marine segment
were $469.7 million, up 10.5% from Fiscal 2022 primarily driven by
price increases, partially offset by higher discounts and
allowances. Segment Adjusted EBITDA for the full year was $60.5
million, down 0.6% from Fiscal 2022. Full year Adjusted EBITDA
margin was 12.9% for Fiscal 2023, down 140 basis points for the
full year from Fiscal 2022 due to higher discounts and allowances
compared to the prior year.
Balance Sheet and Cash FlowAs of August 26, 2023, the
Company had total outstanding debt of $592.4 million ($600.0
million of debt, net of debt issuance costs of $7.6 million) and
working capital of $600.7 million. Cash flow from operations was
$294.5 million in Fiscal 2023, a decrease of $106.1 million
compared to $400.6 million last year, driven by lower profitability
adjusted for non-cash items, partially offset by net favorable
changes in operating assets and liabilities. The Company generated
strong free cash flow of $211.3 million in Fiscal 2023, including
$122.9 million in the fourth quarter of Fiscal 2023.
Quarterly Cash Dividend and Share RepurchasesOn August 16,
2023, the Company’s Board of Directors approved a quarterly cash
dividend of $0.31 per share payable on September 27, 2023, to
common stockholders of record at the close of business on
September 13, 2023. This represents a 15%, or $0.04 per share,
increase from the previous quarter. Additionally, in the fourth
quarter Winnebago Industries executed share repurchases of $30
million.
Mr. Happe continued, “Looking ahead, our focus remains steadfast
on preserving profitability and reinforcing our RV and Marine
market share positions. Concurrently, we are committed to further
investing in the long-term vitality of our outdoor recreation
enterprise, while driving quality and innovation across our broad
brand portfolio. Continued collaboration with our dealer partners,
in support of maintaining the optimal product mix will remain a top
priority as well. We are particularly excited about our latest
product releases, especially those introductions in our Towable RV
segment - the Winnebago brand Access and M-class, along with the
Grand Design Reflection 100 and Influence models. These offerings
exemplify the type of innovative new features that our discerning
customers have grown accustomed to from our premium brands, while
also addressing important concerns around affordability. As we
enter Fiscal 2024, we expect the continued pressure of current
retail market dynamics, coupled with dealer selectiveness to take
on additional inventory amidst retail challenges, through the first
half of the Fiscal year. However, we anticipate that as inventory
levels further normalize and consumer demand stabilizes, dealers
will exhibit a growing willingness to rebuild inventories and bring
in additional models as we enter the back half of Fiscal 2024.”
Conference CallWinnebago Industries, Inc. will discuss fourth
quarter and full year Fiscal 2023 earnings results during a
conference call scheduled for 9:00 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://investor.wgo.net.
The event will be archived and available for replay for the next 90
days.
About Winnebago IndustriesWinnebago Industries, Inc. is a
leading North American manufacturer of outdoor lifestyle products
under the Winnebago, Grand Design, Chris-Craft, Newmar and Barletta
brands, which are used primarily in leisure travel and outdoor
recreation activities. The Company builds high-quality motorhomes,
travel trailers, fifth-wheel products, outboard and sterndrive
powerboats, pontoons, and commercial community outreach vehicles.
Committed to advancing sustainable innovation and leveraging
vertical integration in key component areas, Winnebago Industries
has multiple facilities in Iowa, Indiana, Minnesota and Florida.
The Company’s common stock is listed on the New York Stock Exchange
and traded under the symbol WGO. For access to Winnebago
Industries' investor relations material or to add your name to an
automatic email list for Company news releases, visit
http://investor.wgo.net.
Forward-Looking StatementsThis 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 general economic
uncertainty in key markets and a worsening of domestic and global
economic conditions or low levels of economic growth; availability
of financing for RV and marine dealers; competition and new product
introductions by competitors; ability to innovate and commercialize
new products; ability to manage our inventory to meet demand; risk
related to cyclicality and seasonality of our business; risk
related to independent dealers; risk related to dealer
consolidation or the loss of a significant dealer; significant
increase in repurchase obligations; ability to retain relationships
with our suppliers and obtain components; business or production
disruptions; inadequate management of dealer inventory levels;
increased material and component costs, including availability and
price of fuel and other raw materials; ability to integrate mergers
and acquisitions; ability to attract and retain qualified personnel
and changes in market compensation rates; exposure to warranty
claims; ability to protect our information technology systems from
data security, cyberattacks, and network disruption risks and the
ability to successfully upgrade and evolve our information
technology systems; ability to retain brand reputation and related
exposure to product liability claims; governmental regulation,
including for climate change; increased attention to environmental,
social, and governance ("ESG") matters, and our ability to meet our
commitments; impairment of goodwill and trade names; and risks
related to our Convertible and Senior Secured Notes including our
ability to satisfy our obligations under these notes. 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.
ContactsInvestors: Ray Posadas ir@winnebagoind.com
Media: Dan Sullivanmedia@winnebagoind.com
Winnebago Industries, Inc.Condensed Consolidated Statements
of Income(Unaudited and subject to reclassification) |
|
Three Months Ended |
(in
millions, except percent and per share data) |
August 26, 2023 |
|
August 27, 2022 |
Net revenues |
$ |
771.0 |
|
|
100.0 |
% |
|
$ |
1,179.1 |
|
|
100.0 |
% |
Cost of goods sold |
|
643.5 |
|
|
83.5 |
% |
|
|
968.7 |
|
|
82.2 |
% |
Gross profit |
|
127.5 |
|
|
16.5 |
% |
|
|
210.4 |
|
|
17.8 |
% |
Selling, general, and
administrative expenses |
|
64.3 |
|
|
8.3 |
% |
|
|
81.6 |
|
|
6.9 |
% |
Amortization |
|
5.7 |
|
|
0.7 |
% |
|
|
5.2 |
|
|
0.4 |
% |
Total operating expenses |
|
70.0 |
|
|
9.1 |
% |
|
|
86.8 |
|
|
7.4 |
% |
Operating income |
|
57.5 |
|
|
7.5 |
% |
|
|
123.6 |
|
|
10.5 |
% |
Interest expense, net |
|
4.1 |
|
|
0.5 |
% |
|
|
10.2 |
|
|
0.9 |
% |
Non-operating (income)
loss |
|
(1.3 |
) |
|
(0.2 |
)% |
|
|
2.9 |
|
|
0.2 |
% |
Income before income
taxes |
|
54.7 |
|
|
7.1 |
% |
|
|
110.5 |
|
|
9.4 |
% |
Provision for income
taxes |
|
10.9 |
|
|
1.4 |
% |
|
|
27.9 |
|
|
2.4 |
% |
Net income |
$ |
43.8 |
|
|
5.7 |
% |
|
$ |
82.6 |
|
|
7.0 |
% |
|
|
|
|
|
|
|
|
|
Earnings per common
share: |
|
|
|
|
|
|
|
|
Basic |
$ |
1.46 |
|
|
|
|
$ |
2.66 |
|
|
|
Diluted |
$ |
1.28 |
|
|
|
|
$ |
2.61 |
|
|
|
Weighted average common shares
outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
30.0 |
|
|
|
|
|
31.1 |
|
|
|
Diluted |
|
35.1 |
|
|
|
|
|
31.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended |
|
(in
millions, except percent and per share data) |
August 26, 2023 |
|
|
August 27, 2022 |
Net revenues |
$ |
3,490.7 |
|
|
100.0 |
% |
|
$ |
4,957.7 |
|
|
100.0 |
% |
Cost of goods sold |
|
2,904.6 |
|
|
83.2 |
% |
|
|
4,028.4 |
|
|
81.3 |
% |
Gross profit |
|
586.1 |
|
|
16.8 |
% |
|
|
929.3 |
|
|
18.7 |
% |
Selling, general, and
administrative expenses |
|
267.7 |
|
|
7.7 |
% |
|
|
316.4 |
|
|
6.4 |
% |
Amortization |
|
17.7 |
|
|
0.5 |
% |
|
|
29.4 |
|
|
0.6 |
% |
Total operating expenses |
|
285.4 |
|
|
8.2 |
% |
|
|
345.8 |
|
|
7.0 |
% |
Operating income |
|
300.7 |
|
|
8.6 |
% |
|
|
583.5 |
|
|
11.8 |
% |
Interest expense, net |
|
20.5 |
|
|
0.6 |
% |
|
|
41.3 |
|
|
0.8 |
% |
Non-operating loss |
|
1.0 |
|
|
— |
% |
|
|
27.5 |
|
|
0.6 |
% |
Income before income
taxes |
|
279.2 |
|
|
8.0 |
% |
|
|
514.7 |
|
|
10.4 |
% |
Provision for income
taxes |
|
63.3 |
|
|
1.8 |
% |
|
|
124.1 |
|
|
2.5 |
% |
Net income |
$ |
215.9 |
|
|
6.2 |
% |
|
$ |
390.6 |
|
|
7.9 |
% |
|
|
|
|
|
|
|
|
|
Earnings per common
share: |
|
|
|
|
|
|
|
|
Basic |
$ |
7.12 |
|
|
|
|
$ |
12.03 |
|
|
|
Diluted |
$ |
6.23 |
|
|
|
|
$ |
11.84 |
|
|
|
Weighted average common shares
outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
30.3 |
|
|
|
|
|
32.5 |
|
|
|
Diluted |
|
35.4 |
|
|
|
|
|
33.0 |
|
|
|
Amounts in tables are calculated based on unrounded numbers and
therefore may not recalculate using the rounded numbers provided.
In addition, percentages may not add in total due to rounding.
Winnebago Industries, Inc.Condensed
Consolidated Balance Sheets(Unaudited and subject
to reclassification) |
(in
millions) |
August 26, 2023 |
|
August 27, 2022 |
Assets |
|
|
|
Current assets |
|
|
|
Cash and cash equivalents |
$ |
309.9 |
|
$ |
282.2 |
Receivables, net |
|
178.5 |
|
|
254.1 |
Inventories, net |
|
470.6 |
|
|
525.8 |
Prepaid expenses and other current assets |
|
37.7 |
|
|
31.7 |
Total current assets |
|
996.7 |
|
|
1,093.8 |
Property, plant, and equipment, net |
|
327.3 |
|
|
276.2 |
Goodwill |
|
514.5 |
|
|
484.2 |
Other intangible assets, net |
|
502.0 |
|
|
472.4 |
Investment in life insurance |
|
29.3 |
|
|
28.6 |
Operating lease assets |
|
42.6 |
|
|
41.1 |
Other long-term assets |
|
20.0 |
|
|
20.4 |
Total assets |
$ |
2,432.4 |
|
$ |
2,416.7 |
|
|
|
|
Liabilities and
Shareholders' Equity |
|
|
|
Current liabilities |
|
|
|
Accounts payable |
$ |
146.9 |
|
$ |
217.5 |
Income taxes payable |
|
— |
|
|
0.7 |
Accrued expenses |
|
249.1 |
|
|
303.9 |
Total current liabilities |
|
396.0 |
|
|
522.1 |
Long-term debt, net |
|
592.4 |
|
|
545.9 |
Deferred income tax liabilities, net |
|
11.7 |
|
|
6.1 |
Unrecognized tax benefits |
|
6.1 |
|
|
5.7 |
Long-term operating lease liabilities |
|
42.0 |
|
|
40.4 |
Deferred compensation benefits, net of current portion |
|
7.9 |
|
|
8.1 |
Other long-term liabilities |
|
8.2 |
|
|
25.4 |
Total liabilities |
|
1,064.3 |
|
|
1,153.7 |
Shareholders' equity |
|
1,368.1 |
|
|
1,263.0 |
Total liabilities and shareholders' equity |
$ |
2,432.4 |
|
$ |
2,416.7 |
|
|
|
|
|
|
Winnebago Industries, Inc.Condensed
Consolidated Statements of Cash Flows(Unaudited
and subject to reclassification) |
|
Year Ended |
(in
millions) |
August 26, 2023 |
|
August 27, 2022 |
Operating activities |
|
|
|
Net income |
$ |
215.9 |
|
|
$ |
390.6 |
|
Adjustments to reconcile net income to net cash provided by
operating activities |
|
|
|
Depreciation |
|
29.2 |
|
|
|
24.2 |
|
Amortization |
|
17.7 |
|
|
|
29.4 |
|
Non-cash interest expense, net |
|
— |
|
|
|
15.1 |
|
Amortization of debt issuance costs |
|
3.1 |
|
|
|
2.5 |
|
Last in, first-out expense |
|
0.5 |
|
|
|
8.4 |
|
Stock-based compensation |
|
10.9 |
|
|
|
17.1 |
|
Deferred income taxes |
|
16.3 |
|
|
|
(6.7 |
) |
Deferred compensation expense |
|
0.7 |
|
|
|
0.5 |
|
Contingent consideration fair value adjustment |
|
0.6 |
|
|
|
29.4 |
|
Payments of earnout liability above acquisition-date fair
value |
|
(13.3 |
) |
|
|
— |
|
Other, net |
|
0.8 |
|
|
|
1.9 |
|
Change in operating assets and liabilities, net of assets and
liabilities acquired |
|
|
|
Receivables, net |
|
76.7 |
|
|
|
1.9 |
|
Inventories, net |
|
63.8 |
|
|
|
(171.3 |
) |
Prepaid expenses and other assets |
|
9.7 |
|
|
|
1.2 |
|
Accounts payable |
|
(67.5 |
) |
|
|
27.2 |
|
Income taxes and unrecognized tax benefits |
|
(8.9 |
) |
|
|
(7.4 |
) |
Accrued expenses and other liabilities |
|
(61.7 |
) |
|
|
36.6 |
|
Net cash provided by
operating activities |
|
294.5 |
|
|
|
400.6 |
|
|
|
|
|
Investing
activities |
|
|
|
Purchases of property, plant, and equipment |
|
(83.2 |
) |
|
|
(88.0 |
) |
Acquisition of business, net of cash acquired |
|
(87.5 |
) |
|
|
(228.2 |
) |
Proceeds from the sale of property, plant, and equipment |
|
0.4 |
|
|
|
0.2 |
|
Other, net |
|
0.3 |
|
|
|
0.3 |
|
Net cash used in
investing activities |
|
(170.0 |
) |
|
|
(315.7 |
) |
|
|
|
|
Financing
activities |
|
|
|
Borrowings on long-term debt |
|
3,718.0 |
|
|
|
4,735.6 |
|
Repayments on long-term debt |
|
(3,718.0 |
) |
|
|
(4,735.6 |
) |
Payments of cash dividends |
|
(33.2 |
) |
|
|
(23.8 |
) |
Payments for repurchases of common stock |
|
(55.1 |
) |
|
|
(214.3 |
) |
Payments of earnout liability up to acquisition-date fair
value |
|
(8.7 |
) |
|
|
— |
|
Payments of debt issuance costs |
|
— |
|
|
|
(1.2 |
) |
Other, net |
|
0.2 |
|
|
|
2.0 |
|
Net cash used in
financing activities |
|
(96.8 |
) |
|
|
(237.3 |
) |
|
|
|
|
Net increase/(decrease) in
cash and cash equivalents |
|
27.7 |
|
|
|
(152.4 |
) |
Cash and cash equivalents at
beginning of period |
|
282.2 |
|
|
|
434.6 |
|
Cash and cash equivalents at
end of period |
$ |
309.9 |
|
|
$ |
282.2 |
|
|
|
|
|
Supplemental
Disclosures |
|
|
|
Income taxes paid, net |
$ |
57.8 |
|
|
$ |
139.7 |
|
Interest paid |
|
24.2 |
|
|
|
23.8 |
|
|
|
|
|
Non-cash investing and
financing activities |
|
|
|
Issuance of common stock for acquisition of business |
$ |
— |
|
|
$ |
22.0 |
|
Issuance of common stock for settlement of earnout liability |
|
— |
|
|
|
13.2 |
|
Capital expenditures in accounts payable |
|
3.0 |
|
|
|
6.8 |
|
Dividends declared not yet paid |
|
10.2 |
|
|
|
8.8 |
|
Increase in lease assets in exchange for lease liabilities: |
|
|
|
Operating leases |
|
5.6 |
|
|
|
17.2 |
|
Financing leases |
|
2.4 |
|
|
|
2.5 |
|
|
|
|
|
|
|
|
|
Winnebago Industries, Inc.Supplemental
Information by Reportable Segment - Towable RV(in
millions, except unit data)(Unaudited and subject
to reclassification) |
|
Three Months Ended |
|
August 26, 2023 |
|
% of Revenues(1) |
|
August 27, 2022 |
|
% of Revenues(1) |
|
$ Change(1) |
|
% Change(1) |
Net revenues |
$ |
341.4 |
|
|
|
$ |
494.2 |
|
|
|
|
$ |
(152.7 |
) |
|
(30.9 |
)% |
Adjusted EBITDA |
|
42.7 |
|
|
12.5 |
% |
|
|
53.2 |
|
|
10.8 |
% |
|
|
(10.5 |
) |
|
(19.7 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Unit deliveries |
August 26, 2023 |
|
Product Mix(2) |
|
August 27, 2022 |
|
Product Mix(2) |
|
Unit Change |
|
% Change |
Travel trailer |
|
5,303 |
|
|
68.8 |
% |
|
|
6,801 |
|
|
65.0 |
% |
|
|
(1,498 |
) |
|
(22.0 |
)% |
Fifth wheel |
|
2,408 |
|
|
31.2 |
% |
|
|
3,663 |
|
|
35.0 |
% |
|
|
(1,255 |
) |
|
(34.3 |
)% |
Total Towable RV |
|
7,711 |
|
|
100.0 |
% |
|
|
10,464 |
|
|
100.0 |
% |
|
|
(2,753 |
) |
|
(26.3 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended |
|
|
August 26, 2023 |
|
% of Revenues(1) |
|
August 27, 2022 |
|
% of Revenues(1) |
|
$ Change(1) |
|
% Change(1) |
Net revenues |
$ |
1,415.3 |
|
|
|
$ |
2,597.4 |
|
|
|
|
$ |
(1,182.1 |
) |
|
(45.5 |
)% |
Adjusted EBITDA |
|
172.1 |
|
|
12.2 |
% |
|
|
383.6 |
|
|
14.8 |
% |
|
|
(211.5 |
) |
|
(55.1 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended |
|
Unit deliveries |
August 26, 2023 |
|
Product Mix(2) |
|
August 27, 2022 |
|
Product Mix(2) |
|
Unit Change |
|
% Change |
Travel trailer |
|
21,352 |
|
|
68.8 |
% |
|
|
40,739 |
|
|
68.1 |
% |
|
|
(19,387 |
) |
|
(47.6 |
)% |
Fifth wheel |
|
9,701 |
|
|
31.2 |
% |
|
|
19,125 |
|
|
31.9 |
% |
|
|
(9,424 |
) |
|
(49.3 |
)% |
Total Towable RV |
|
31,053 |
|
|
100.0 |
% |
|
|
59,864 |
|
|
100.0 |
% |
|
|
(28,811 |
) |
|
(48.1 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
August 26, 2023 |
|
August 27, 2022 |
|
$ Change(1) |
|
% Change(1) |
|
|
|
|
|
Backlog(3) |
|
|
|
|
|
|
|
|
|
|
|
|
Units |
|
5,111 |
|
|
14,588 |
|
|
|
(9,477 |
) |
|
(65.0 |
)% |
|
|
|
|
|
Dollars |
$ |
208.1 |
|
$ |
576.5 |
|
|
$ |
(368.4 |
) |
|
(63.9 |
)% |
|
|
|
|
|
Dealer
Inventory |
|
|
|
|
|
|
|
|
|
|
|
|
Units |
|
16,744 |
|
|
22,797 |
|
|
|
(6,053 |
) |
|
(26.6 |
)% |
|
|
|
|
|
(1) Amounts are calculated based on unrounded numbers
and therefore may not recalculate using the rounded numbers
provided.(2) Percentages may not add due to rounding
differences.(3) Our backlog includes all accepted orders
from dealers which generally have been requested to be shipped
within the next six months. Orders in backlog generally can be
cancelled or postponed at the option of the dealer at any time
without penalty; therefore, backlog may not necessarily be an
accurate measure of future sales.
Winnebago Industries, Inc.Supplemental
Information by Reportable Segment - Motorhome
RV(in millions, except unit
data)(Unaudited and subject to
reclassification) |
|
Three Months Ended |
|
August 26, 2023 |
|
% of Revenues(1) |
|
August 27, 2022 |
|
% of Revenues(1) |
|
$ Change(1) |
|
% Change(1) |
Net revenues |
$ |
317.7 |
|
|
|
$ |
555.8 |
|
|
|
|
$ |
(238.1 |
) |
|
(42.8 |
)% |
Adjusted EBITDA |
|
22.4 |
|
|
7.0 |
% |
|
|
77.4 |
|
|
13.9 |
% |
|
|
(55.0 |
) |
|
(71.1 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Unit deliveries |
August 26, 2023 |
|
Product Mix(2) |
|
August 27, 2022 |
|
Product Mix(2) |
|
Unit Change |
|
% Change |
Class A |
|
408 |
|
|
25.7 |
% |
|
|
636 |
|
|
19.3 |
% |
|
|
(228 |
) |
|
(35.8 |
)% |
Class B |
|
612 |
|
|
38.5 |
% |
|
|
1,859 |
|
|
56.5 |
% |
|
|
(1,247 |
) |
|
(67.1 |
)% |
Class C |
|
570 |
|
|
35.8 |
% |
|
|
796 |
|
|
24.2 |
% |
|
|
(226 |
) |
|
(28.4 |
)% |
Total Motorhome RV |
|
1,590 |
|
|
100.0 |
% |
|
|
3,291 |
|
|
100.0 |
% |
|
|
(1,701 |
) |
|
(51.7 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended |
|
|
August 26, 2023 |
|
% of Revenues(1) |
|
August 27, 2022 |
|
% of Revenues(1) |
|
$ Change(1) |
|
% Change(1) |
Net revenues |
$ |
1,560.1 |
|
|
|
$ |
1,911.2 |
|
|
|
|
$ |
(351.1 |
) |
|
(18.4 |
)% |
Adjusted EBITDA |
|
142.0 |
|
|
9.1 |
% |
|
|
238.0 |
|
|
12.5 |
% |
|
|
(96.0 |
) |
|
(40.3 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended |
|
Unit deliveries |
August 26, 2023 |
|
Product Mix(2) |
|
August 27, 2022 |
|
Product Mix(2) |
|
Unit Change |
|
% Change |
Class A |
|
2,142 |
|
|
25.5 |
% |
|
|
2,640 |
|
|
21.9 |
% |
|
|
(498 |
) |
|
(18.9 |
)% |
Class B |
|
3,845 |
|
|
45.8 |
% |
|
|
6,748 |
|
|
56.0 |
% |
|
|
(2,903 |
) |
|
(43.0 |
)% |
Class C |
|
2,407 |
|
|
28.7 |
% |
|
|
2,670 |
|
|
22.1 |
% |
|
|
(263 |
) |
|
(9.9 |
)% |
Total Motorhome RV |
|
8,394 |
|
|
100.0 |
% |
|
|
12,058 |
|
|
100.0 |
% |
|
|
(3,664 |
) |
|
(30.4 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
August 26, 2023 |
|
August 27, 2022 |
|
Change(1) |
|
% Change(1) |
|
|
|
|
|
Backlog(3) |
|
|
|
|
|
|
|
|
|
|
|
|
Units |
|
3,828 |
|
|
12,024 |
|
|
|
(8,196 |
) |
|
(68.2 |
)% |
|
|
|
|
|
Dollars |
$ |
688.6 |
|
$ |
1,687.6 |
|
|
$ |
(999.0 |
) |
|
(59.2 |
)% |
|
|
|
|
|
Dealer
Inventory |
|
|
|
|
|
|
|
|
|
|
|
|
Units |
|
4,068 |
|
|
3,824 |
|
|
|
244 |
|
|
6.4 |
% |
|
|
|
|
|
(1) Amounts are calculated based on unrounded numbers
and therefore may not recalculate using the rounded numbers
provided.(2) Percentages may not add due to rounding
differences.(3) Our backlog includes all accepted orders
from dealers which generally have been requested to be shipped
within the next six months. Orders in backlog generally can be
cancelled or postponed at the option of the dealer at any time
without penalty; therefore, backlog may not necessarily be an
accurate measure of future sales.
Winnebago Industries, Inc.Supplemental
Information by Reportable Segment - Marine(in
millions, except unit data)(Unaudited and subject
to reclassification) |
|
Three Months Ended |
|
August 26, 2023 |
|
% of Revenues(1) |
|
August 27, 2022 |
|
% of Revenues(1) |
|
$ Change(1) |
|
% Change(1) |
Net revenues |
$ |
96.4 |
|
|
|
$ |
122.1 |
|
|
|
|
$ |
(25.6 |
) |
|
(21.0 |
)% |
Adjusted EBITDA |
|
10.3 |
|
|
10.6 |
% |
|
|
17.5 |
|
|
14.3 |
% |
|
|
(7.3 |
) |
|
(41.4 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
Unit deliveries |
August 26, 2023 |
|
August 27, 2022 |
|
Unit Change |
|
% Change |
|
|
|
|
Boats |
|
1,162 |
|
|
1,580 |
|
|
|
(418 |
) |
|
(26.5 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended |
|
August 26, 2023 |
|
% of Revenues(1) |
|
August 27, 2022 |
|
% of Revenues(1) |
|
$ Change(1) |
|
% Change(1) |
Net revenues |
$ |
469.7 |
|
|
|
$ |
425.3 |
|
|
|
|
$ |
44.4 |
|
|
10.5 |
% |
Adjusted EBITDA |
|
60.5 |
|
|
12.9 |
% |
|
|
60.8 |
|
|
14.3 |
% |
|
|
(0.3 |
) |
|
(0.6 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended |
|
|
|
|
Unit deliveries |
August 26, 2023 |
|
August 27, 2022 |
|
Unit Change |
|
% Change |
|
|
|
|
Boats |
|
5,714 |
|
|
5,692 |
|
|
|
22 |
|
|
0.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
August 26, 2023 |
|
August 27, 2022 |
|
Change(1) |
|
% Change(1) |
|
|
|
|
Backlog(2) |
|
|
|
|
|
|
|
|
|
|
|
Units |
|
2,545 |
|
|
3,595 |
|
|
|
(1,050 |
) |
|
(29.2 |
)% |
|
|
|
|
Dollars |
$ |
194.7 |
|
$ |
314.7 |
|
|
$ |
(120.0 |
) |
|
(38.1 |
)% |
|
|
|
|
Dealer
Inventory(3) |
|
|
|
|
|
|
|
|
|
|
|
Units |
|
3,376 |
|
|
2,077 |
|
|
|
1,299 |
|
|
62.5 |
% |
|
|
|
|
(1) Amounts are calculated based on unrounded numbers
and therefore may not recalculate using the rounded numbers
provided.(2) Our backlog includes all accepted orders
from dealers which generally have been requested to be shipped
within the next six months. Orders in backlog generally can be
cancelled or postponed at the option of the dealer at any time
without penalty; therefore, backlog may not necessarily be an
accurate measure of future sales.(3) Due to the nature
of the Marine industry, this amount includes a higher proportion of
retail sold units than our other segments.
Winnebago Industries,
Inc.Non-GAAP
Reconciliation(Unaudited and subject to
reclassification)
Non-GAAP financial measures, which are not calculated or
presented in accordance with accounting principles generally
accepted in the United States (“GAAP”), have been provided as
information supplemental and in addition to the financial measures
presented in the accompanying news release that are calculated and
presented in accordance with GAAP. Such non-GAAP financial measures
should not be considered superior to, as a substitute for, or as an
alternative to, and should be considered in conjunction with, the
GAAP financial measures presented in the news release. The non-GAAP
financial measures presented may differ from similar measures used
by other companies.
The following table reconciles diluted earnings per share to
Adjusted diluted earnings per share:
|
Three Months Ended |
|
Year Ended |
|
August 26, 2023 |
|
August 27, 2022 |
|
August 26, 2023 |
|
August 27, 2022 |
Diluted earnings per share(1) |
$ |
1.28 |
|
|
$ |
2.61 |
|
|
$ |
6.23 |
|
|
$ |
11.84 |
|
Acquisition-related
costs(2) |
|
0.06 |
|
|
|
0.02 |
|
|
|
0.21 |
|
|
|
0.16 |
|
Litigation reserves(2) |
|
(0.01 |
) |
|
|
0.08 |
|
|
|
(0.01 |
) |
|
|
0.20 |
|
Amortization(2) |
|
0.16 |
|
|
|
0.17 |
|
|
|
0.50 |
|
|
|
0.89 |
|
Non-cash interest
expense(2,3) |
|
— |
|
|
|
0.12 |
|
|
|
— |
|
|
|
0.46 |
|
Contingent consideration fair
value adjustment(2) |
|
(0.04 |
) |
|
|
0.15 |
|
|
|
0.02 |
|
|
|
0.89 |
|
Tax impact of
adjustments(4) |
|
(0.04 |
) |
|
|
(0.13 |
) |
|
|
(0.17 |
) |
|
|
(0.63 |
) |
Impact of convertible notes -
other(5) |
|
0.18 |
|
|
|
— |
|
|
|
0.90 |
|
|
|
— |
|
Adjusted diluted income per share(6) |
$ |
1.59 |
|
|
$ |
3.02 |
|
|
$ |
7.67 |
|
|
$ |
13.81 |
|
(1) In Fiscal 2022 and Fiscal 2023, respectively, we
utilized the treasury stock method and the if-converted method for
calculating the dilutive impact of our convertible notes in the
calculation of diluted earnings per share.(2) Represents
a pre-tax adjustment.(3) Non-cash interest expense
associated with the convertible notes issued related to our
acquisition of Newmar. In Fiscal 2023, due to the adoption of
Accounting Standards Update (ASU) 2020-06, non-cash interest
expense will no longer be recognized.(4) Income tax
charge calculated using the statutory tax rate for the U.S. of
24.1% and 24.2% for Fiscal 2023 and Fiscal 2022,
respectively.(5) In Fiscal 2022, this represents the
dilution of convertible notes which is economically offset by a
call spread overlay that was put in place upon issuance. In Fiscal
2023, as a result of the adoption of ASU 2020-06, the convertible
notes are assumed to be converted into common stock at the
beginning of the reporting period, and interest expense is
excluded, both of which impact the calculation of reported diluted
earnings per share. (6) Per share numbers may not foot
due to rounding.
The following table reconciles net income to consolidated EBITDA
and Adjusted EBITDA:
|
Three Months Ended |
|
Year Ended |
(in
millions) |
August 26, 2023 |
|
August 27, 2022 |
|
August 26, 2023 |
|
August 27, 2022 |
Net income |
$ |
43.8 |
|
|
$ |
82.6 |
|
|
$ |
215.9 |
|
|
$ |
390.6 |
|
Interest expense, net |
|
4.1 |
|
|
|
10.2 |
|
|
|
20.5 |
|
|
|
41.3 |
|
Provision for income
taxes |
|
10.9 |
|
|
|
27.9 |
|
|
|
63.3 |
|
|
|
124.1 |
|
Depreciation |
|
8.3 |
|
|
|
7.2 |
|
|
|
29.2 |
|
|
|
24.2 |
|
Amortization |
|
5.7 |
|
|
|
5.2 |
|
|
|
17.7 |
|
|
|
29.4 |
|
EBITDA |
|
72.8 |
|
|
|
133.1 |
|
|
|
346.6 |
|
|
|
609.6 |
|
Acquisition-related costs |
|
1.9 |
|
|
|
0.6 |
|
|
|
7.5 |
|
|
|
5.2 |
|
Litigation reserves |
|
(0.4 |
) |
|
|
2.6 |
|
|
|
(0.4 |
) |
|
|
6.6 |
|
Contingent consideration fair
value adjustment |
|
(1.4 |
) |
|
|
4.7 |
|
|
|
0.6 |
|
|
|
29.4 |
|
Non-operating loss
(income) |
|
— |
|
|
|
(1.8 |
) |
|
|
0.4 |
|
|
|
(1.9 |
) |
Adjusted EBITDA |
$ |
72.9 |
|
|
$ |
139.2 |
|
|
$ |
354.7 |
|
|
$ |
648.9 |
|
The following table reconciles net cash provided by operating
activities to consolidated free cash flow:
|
Three Months Ended |
|
Year Ended |
(in
millions) |
August 26, 2023 |
|
August 26, 2023 |
Net cash provided by operating activities |
$ |
138.1 |
|
|
$ |
294.5 |
|
Purchases of property, plant,
and equipment |
|
(15.2 |
) |
|
|
(83.2 |
) |
Free cash flow |
$ |
122.9 |
|
|
$ |
211.3 |
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Non-GAAP performance measures of Adjusted diluted earnings per
share, EBITDA, Adjusted EBITDA, and free cash flow have been
provided as comparable measures to illustrate the effect of
non-recurring transactions occurring during the reported periods
and to improve comparability of our results from period to period.
Adjusted diluted earnings per share is defined as diluted earnings
per share adjusted for after-tax items that impact the
comparability of our results from period to period. EBITDA is
defined as net income before interest expense, provision for income
taxes, and depreciation and amortization expense. Adjusted EBITDA
is defined as net income before interest expense, provision for
income taxes, depreciation and amortization expense and other
pretax adjustments made in order to present comparable results from
period to period. Free cash flow is defined as net cash provided by
operating activities less purchases of property, plant, and
equipment. Management believes Adjusted diluted earnings per share
and Adjusted EBITDA provide meaningful supplemental information
about our operating performance because these measures exclude
amounts that we do not consider part of our core operating results
when assessing our performance. Management believes free cash flow
is a useful measure of liquidity and an indication of our ability
to generate cash from normal business activities.
Management uses these non-GAAP financial measures (a) to
evaluate historical and prospective financial performance and
trends as well as assess performance relative to competitors and
peers; (b) to measure operational profitability on a
consistent basis; (c) in presentations to the members of our Board
of Directors to enable our Board of Directors to have the same
measurement basis of operating performance as is used by management
in its assessments of performance and in forecasting and budgeting
for the Company; (d) to evaluate potential acquisitions; and (e) to
ensure compliance with restricted activities under the terms of our
ABL credit facility and outstanding notes. Management believes
these non-GAAP financial measures are frequently used by securities
analysts, investors and other interested parties to evaluate
companies in our industry.
Winnebago Industries (NYSE:WGO)
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Winnebago Industries (NYSE:WGO)
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From Oct 2023 to Oct 2024