Winnebago Industries reports Q3 results
Source:
RV Daily Report
June 16, 2011 09:31
FOREST CITY, Iowa -- Winnebago Industries, Inc.
(NYSE:WGO), one of the leading United States (U.S.) recreation vehicle manufacturers, today reported results for the Company's third quarter and first nine months of Fiscal 2011.
Consolidated revenues for the third quarter of Fiscal 2011 ended May 28, 2011, were $135.6 million, an increase of 0.6 percent, versus $134.8 million for the third quarter of Fiscal 2010. Included within consolidated revenues were $7.2 million associated with towable products. The Company reported an operating profit of $0.5 million for the quarter, versus an operating profit of $3.4 million for the third quarter of Fiscal 2010. Net income for the third quarter of Fiscal 2011 was $1.2 million versus net income of $6.0 million for the third quarter of Fiscal 2010. On a diluted per share basis, the Company had net income of $0.04 for the third quarter of Fiscal 2011 versus net income of $0.21 for the third quarter of Fiscal 2010. The net income for the third quarter of Fiscal 2010 reflected the positive effect of $.08 per diluted share in tax benefits associated with resolution of tax audits and various tax planning initiatives.
The third quarter of Fiscal 2011 as compared to the third quarter of Fiscal 2010 was negatively impacted by last-in, first-out (LIFO) inventory expense as opposed to LIFO income in the prior year, commodity inflation, an impairment charge on an asset held for sale, as well as increased discounts, repurchase exposure and legal costs. These negative items were partially offset by a tax benefit recorded in the third quarter of Fiscal 2011, primarily due to a favorable adjustment as a result of a lower annual effective tax rate.
Consolidated revenues for the first nine months of Fiscal 2011 were $365.9 million, an increase of 12.1 percent, compared to $326.4 million for the first nine months of Fiscal 2010. Included within consolidated revenues were $9.0 million associated with towable products. The Company reported an operating profit of $9.5 million for the first nine months of Fiscal 2011, compared to an operating loss of $4.4 million for the first nine months of Fiscal 2010. The net income for the first nine months of Fiscal 2011 was $8.3 million, or $0.28 per diluted share, versus a net income of $5.4 million, or $0.18 per diluted share, for the first nine months of Fiscal 2010. A tax benefit of $.33 per diluted share was recorded in the first nine months of Fiscal 2010, which primarily related to 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.
"The retail market for motorhomes softened during our third Fiscal quarter, adding to our disappointment with the level of industry retail sales thus far in Calendar 2011 compared with the prior year," said Winnebago Industries' Chairman and CEO Bob Olson. "While discouraging, it is understandable in the context of new job creation slowing in America, along with reports of falling home prices, declining auto sales, weaker consumer spending, the concern over rising fuel prices and the impact these issues are currently having on the stock market. We remain concerned the current recovery appears to be slowing."
According to Winnebago Industries' President Randy Potts, "We have started to produce our 2012 motorhome lineup and we are introducing these new and exciting products to our dealers throughout our fourth quarter. In addition, the Winnebago Industries Towables subsidiary continues to make progress with new and redesigned SunnyBrook brand products to be introduced throughout the summer. We also expect to debut Winnebago brand towable products in the coming months."
Conference Call
Winnebago Industries, Inc. will conduct a conference call in conjunction with this release at 9 a.m. Central Time today, Thursday, June 16, 2011. 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 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 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.
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