CHARLOTTE, Mich., July 23 -- Spartan Motors, Inc. (Nasdaq:SPAR) reported results for its 2010 second quarter, which included the impact of the previously announced business realignment plan. Spartan posted a net loss for the quarter of $2.6 million, which included the unfavorable impact of these actions. Before one-time restructuring charges, adjusted net earnings from continuing operations was a positive $0.9 million, or $0.03 per diluted share.

Second-quarter highlights (which reflect Road Rescue as a discontinued operation):

• Net sales of $115.7 million
• Gross margin of 14.3 percent of sales (15.1 percent before restructuring charges)
• Operating expenses of 14.2 percent of sales (13.4 percent before restructuring charges)
• Restructuring charges of $1.8 million, or $0.03 per diluted share, net of tax
• Cash balance of $10.1 million (up $5.7 million from Q1 2010)
• Debt of $20.3 million (down $3.1 million from Q1 2010)
• Consolidated backlog of $205.7 million

Exit from Road Rescue Business

Spartan is fielding many inquiries from both strategic and financial buyers interested in acquiring Road Rescue Road Rescue has maintained the quality and reliability of shipments due to the dedication and commitment of the Marion, S.C. workforce All Road Rescue results are now classified as discontinued operations and presented below income from continuing operations, net of tax Spartan redefined reportable segments into Delivery and Service Vehicles, consisting of Utilimaster, and Specialty Vehicles, which consists of the Company's fire truck chassis, motorhome chassis, other vehicles, fire truck bodies and aftermarket parts and assemblies Net loss from Road Rescue for the second quarter was $2.4 million, which includes $1.8 million of impairment and restructuring charges, net of tax

Realigning Cost Structure

• Second quarter results from continuing operations included $1.8 million in restructuring charges related to realigning the business to current level and mix of revenues
• Adjusted gross profit reached $17.5 million, while adjusted gross margin increased to 15.1 percent – an improvement from first-quarter adjusted gross profit of $16.9 million, or 14.3 percent
• Excluding restructuring charges, operating expenses in the quarter were reduced by $0.7 million compared to the same period in 2009. In addition, the second quarter of 2010 included $3.5 million of operating expenses related to Utilimaster that were not present in 2009 results
• Operating cash flow was $22.1 million in the first six months of the year, driven by reduced working capital requirements that primarily consisted of a $16.0 million reduction in inventory levels

Investment in Profitable Growth Opportunities

• R&D investment of $1.2 million in the current quarter related to costs for two major product introductions – the recently announced Next Generation Commercial Van (NGCV) being developed in conjunction with Isuzu and the development of new cab and chassis products related to the 2010 emissions standards
• A prototype of the NGCV, a product of Spartan's alliance with Isuzu, rolled off the line at Utilimaster this past week; production still on track to begin in mid-2011
• Assembly relationship with Isuzu on the N-series chassis is proceeding according to plan, with production expected to begin in mid-2011
• Crimson Fire's new product, the "Transformer," is complete and is being well received in the marketplace having achieved its first sale in Texas

Joe Nowicki, Chief Financial Officer, said: "Despite the loss for the quarter, we are very pleased with the pace of progress in implementing cost management and balance sheet initiatives across the organization. We began last fall realigning our cost structure to current and near-term demand and focusing on areas of our business that generate profitable market share. The actions we are taking are difficult, but improvements in our operating results, excluding the one-time charges, demonstrate that we are gaining ground toward achieving our interim financial goal of mid single-digit operating income. In addition, we are making substantial progress on continuing to strengthen our balance sheet – improvements in receivables and inventories, both dollars and turns, enabled us to further pay down debt and grow our cash balances, providing enhanced financial stability and future opportunity."

Financial Overview

• Consolidated net sales for the quarter were $115.7 million, down 2.6 percent from the same quarter last year due to lower sales of aftermarket parts and assemblies (APA), partially offset by incremental revenues from Utilimaster
• Gross margin in the second quarter of 2010 fell to 14.3 percent of sales (15.1 percent before restructuring charges), from 20.7 percent in the second quarter of 2009, primarily due to the shift in revenue mix to lower-margin products
• Net loss from continuing operations for the quarter was $172,000, or $0.00 per diluted share, compared with net earnings from continuing operations of $5.5 million, or $0.17 per diluted share, in the prior year's second quarter. Excluding restructuring charges, adjusted net earnings from continuing operations for the second quarter of 2010 was $0.9 million, or $0.03 per diluted share
• Consolidated backlog, excluding discontinued operations, at June 30, 2010 increased to $205.7 million from $150.1 million at June 30, 2009, driven by the addition of Utilimaster's backlog of $43.3 million in the current period, which was not included in the consolidated backlog in the year-ago period
• Sequentially, consolidated backlog was relatively flat with increases at Utilimaster and APA (up 23 percent and 311 percent respectively), which were substantially offset by declines in Fire Truck Chassis and Fire Truck Bodies (down 22 percent and 19 percent respectively), illustrating the benefit of Spartan's efforts to diversify its revenue mix and end markets

Sztykiel concluded: "Looking forward, I continue to be optimistic about the future of Spartan Motors. We are making the difficult decisions and implementing the required actions to ensure our continued success in our existing markets. In addition, we continue to invest in the long-term opportunities that will fuel our growth in new and emerging markets. The first major catalyst, a prototype of our next generation commercial van and a product of our alliance with Isuzu, rolled off the line at Utilimaster this past week, and it looks great. The NGCV will definitely be a game-changer in the delivery and service marketplace. As we mentioned last quarter, we expect 2010 to be a year of implementation, and over the remainder of the year, our company-wide focus will be on maintaining solid profitability and top-line growth even in the midst of difficult market conditions. Our plan is simple and focused: compelling products, growth in profitable market share, cost and balance sheet management. The second quarter represents progress on all four fronts, and we expect that to continue as we move throughout the year."

Thor Industries, Inc. (NYSE:THO) announced preliminary results for the third quarter and nine months ended April 30, 2010. As disclosed below, Thor’s auditors have not yet completed their review under SAS100 of the third quarter results.

Sales for the quarter were $680,192,000, up 64% from $415,472,000 last year. Net income for the quarter was $34,111,000, up dramatically from $2,102,000 last year. E.P.S. for the quarter were 66¢ versus 4¢ last year.

Sales for the nine months were $1,612,769,000, up 49% from $1,080,972,000 last year. Net income for the nine months was $69,464,000 versus a net loss of $7,638,000 last year. E.P.S. for the nine months were $1.30 versus a loss of 14¢ last year.

RV sales in the quarter were $559,166,000, up 79% from $312,041,000 last year. Towable RV sales in the quarter were $468,002,000, up 77% from $264,317,000 last year. Motorized RV sales in the quarter were $91,164,000, up 91% from $47,724,000 last year. RV sales in the nine months were $1,284,891,000, up 65% from $777,016,000 last year. Towable RV sales in the nine months were $1,090,842,000, up 64% from $664,517,000 last year. Motorized RV sales in the nine months were $194,049,000, up 73% from $112,499,000 last year. Bus segment sales in the quarter, including buses and ambulances, were $121,026,000, up 17% from $103,431,000 last year. Bus segment sales in the nine months were a record $327,878,000, up 8% from $303,956,000 last year.

RV income before tax in the third quarter was $48,754,000, more than seven times $6,860,000 last year. Towable RV income before tax in the quarter was $45,114,000, up 146% from $18,374,000 last year. Motorized RV income before tax in the quarter was $3,640,000, versus a loss of $11,514,000 last year. RV income before tax in the nine months was $98,453,000 versus a loss of $7,208,000 last year. Towable RV income before tax in the nine months was $93,397,000, more than quadruple $21,197,000 last year. Motorized RV income before tax in the nine months was $5,056,000, versus a loss of $28,405,000 last year. Bus segment income before tax in the quarter was $9,142,000, up more than sevenfold from $1,243,000 last year and was $23,755,000 in the nine months, up 131% from $10,263,000 last year. Corporate net costs were $5,691,000 in the quarter versus $3,531,000 last year and $13,497,000 in the nine months versus $13,184,000 last year.

Revenues for the third quarter of fiscal 2010 ended May 29, 2010 were $134.8 million, an increase of 165.1 percent, versus $50.8 million for the third quarter of fiscal 2009. The Company reported an operating profit of $3.4 million for the quarter, versus an operating loss of $14.8 million for the third quarter of fiscal 2009. Net income for the third quarter was $6.0 million versus a net loss of $8.6 million for the third quarter of fiscal 2009. On a diluted per share basis, the Company had net income of $.21 for the third quarter of fiscal 2010 versus a net loss of $.29 for the third quarter of fiscal 2009. The third quarter of fiscal 2010 was benefited from increased motor home unit deliveries, particularly in the Class A category. The net income for the third quarter reflected the positive effect of $2.4 million in tax benefits associated with resolution of tax audits and various tax planning initiatives.

Revenues for the first nine months of fiscal 2010 were $326.4 million, an increase of 114.6 percent, versus revenues of $152.1 million for the first nine months of fiscal 2009. The Company reported an operating loss of $4.4 million for the first nine months of fiscal 2010, versus an operating loss of $50.3 million for the first nine months of fiscal 2009. Net income for the first nine months of fiscal of 2010 was $5.4 million, or $0.18 per diluted share, versus a loss of $28.5 million, or $.98 per diluted share for the first nine months of fiscal 2009. No tax benefits have yet been recorded on the first nine months of fiscal 2010 pre-tax losses. To the extent that future pre-tax income is generated, these unrecorded tax benefits will offset tax expense until fully utilized. The $9.5 million of tax benefit recorded in the first nine months of fiscal 2010 primarily relates to tax benefits associated with the carryback of fiscal year 2009 net operating losses permitted by tax law changes and tax benefits associated with various tax planning initiatives and tax settlements.

“We are extremely pleased to report our results for the third quarter of fiscal 2010 which show profitability at the operating level for the first time since our second quarter of 2008,” said Winnebago Industries' Chairman, CEO and President Bob Olson. "We are also encouraged by continued sequential improvement in revenues and gross profit. The main driver for this improvement was increased motor home shipments which increased 120.3 percent over the third quarter of fiscal 2009 and 23.2 percent sequentially over the second quarter ended February 27, 2010. The increased volume resulted in greater efficiencies and higher utilization of our manufacturing facilities."

Dealer inventory was relatively flat with 2,000 Class A, B and C motor homes as of May 29, 2010, compared to the 2,022 at the end of the second quarter of fiscal 2010; and down 13.9 percent from dealer inventory of 2,324 on May 30, 2009. Olson continued, "Dealer inventory has leveled off, which we believe is appropriate in today's market environment. Dealers and their lending institutions are keeping a close eye on inventories to ensure that supply is consistent with retail demand. We have also seen dramatic improvement within the last year in the age of the product in dealer inventory, with much less older inventory on their lots."

Winnebago Industries' sales order backlog was 935 motor homes at May 29, 2010, an increase of 144.8 percent compared to the end of the third quarter of fiscal 2009. "While our sales order backlog increased considerably since the third quarter of fiscal 2009, it has declined 19.3 percent sequentially from the end of the second quarter of fiscal 2010," said Olson. "We are launching our new 2011 products to our dealers this month. As dealers are able to see these exciting new products, we anticipate the sales order backlog will rise accordingly."

According to Statistical Surveys, Inc., the retail reporting service for the RV industry, Winnebago Industries continues to lead the industry in retail sales of Class A and Class C motor homes combined with 19.5 percent for the first four months of calendar 2010, compared to 18.4 percent for the same period of calendar 2009.

Olson continued, "Dr. Richard Curtin, the economist for the Recreation Vehicle Industry Association, recently increased his forecast for the motor home market, estimating 22,600 Class A, B and C motor homes will be shipped to dealers in calendar 2010, a 71 percent increase over 2009. We remain cautious, however, until we see prolonged improvement in retail sales. We continue to believe that retail sales will be the key driver to sustain our recovery and for continued growth going forward."

Navistar International Corporation (NYSE: NAV) reported solid second-quarter results as reflected by improvements in the performance of its core business as the company continues to navigate the difficult economic climate.

“Our expectations are to be profitable across the business cycle,” said Daniel C. Ustian, Navistar chairman, president and CEO. “The plans we have put in place for our core businesses are on track through the second quarter. We are confident that the foundation is in place to continue to support our profitability and grow our business.”

Even though the industry is at a nearly 50-year low, net income attributable to Navistar International Corporation for the second quarter ended April 30, 2010, was $30 million, equal to $0.42 of diluted earnings per share. As previously reported, earnings for its fiscal year ending Oct. 31, 2010, are expected to be in the range of $2.75 to $3.25 per diluted share. Revenues for the second quarter totaled $2.7 billion.

“We remain confident for the remainder of the year about our ability to deliver fiscal 2010 results in the previously reported range,” said Ustian. “The orders we have received for our 2010-compliant products ensure that the business is well positioned for the rest of the year.”

The company said it is prepared for a successful launch of its MaxxForce^® Advanced EGR (exhaust gas recirculation) engines as it continues on its path to meet the latest emissions requirements. During the quarter, key regulatory certifications were obtained for 2010 MaxxForce^® 13 and MaxxForce^® DT Advanced EGR big bore diesel and mid-range diesel engines.

Other significant milestones achieved in the quarter included improvements in Navistar’s cost structure, which were achieved through reductions in material costs and rationalization of its North American plants to create cost efficiencies in its Class 8 heavy truck and school bus production lines. The company also completed a retail funding alliance with GE Capital Corporation and GE Capital Commercial, Inc. in which GE will become the preferred source of retail customer financing for equipment offered by the company and its dealers in the United States to help it grow sales of trucks and school buses.

During the quarter, the company also began shipping a limited number of International^® MaxxPro^® Dash Mine Resistant Ambush Protected (MRAP) vehicles that include the DXM™ independent suspension solution, which were part of an order Navistar received in January from the U.S. military.

Summary Financial Results
	2010 Q2			2009 Q2			2010 Six Months			2009 Six Months
	As Reported With Impacts			As Reported With Impacts			As Reported With Impacts			As Reported With Impacts
Sales and revenues, net ($billions)	$2.7			$2.8			$5.6			$5.8
Manufacturing segment profit ($millions)*	149			87			317			494
Below the line items	(129)			(66)			(272)			(246)
Income (loss) excluding income tax	20			21			45			248
Income tax benefit (expense)	10			(9)			2			(2)
Net Income (loss) attributable to Navistar International Corporation	$30			$12			$47			$246
Diluted earnings (loss) per share ($s) attributable to Navistar International Corporation	$0.42			$0.16			$0.65			$3.44
Weighted average shares outstanding: diluted (millions)	72.8			71.3			72.4			71.5
* Includes: Net income attributable to non-controlling interest in net income of subsidiaries

Segment Results

Truck — For the second quarter ended April 30, 2010, the truck segment realized a profit of $76 million, compared with a year-ago second quarter profit of $56 million, which included substantial U.S. military sales as part of its MRAP vehicle program. The increase was driven primarily by improved commercial performance and continued material and manufacturing cost improvements offset partially by lower military sales. Commercial chargeouts in its traditional North American Class 6-8 truck and school bus business increased by 29 percent for the second quarter and 15 percent for the six-month period. Also contributing to the increase was the value added tax recovery of $30 million in Brazil.

Engine — The engine segment had a $15 million profit in the 2010 second quarter, which reflects increased demand in Brazil and the value added tax recovery of $12 million in Brazil, partially offset by decreased volumes in North America due to the expiration of the company’s contract with Ford to supply diesel engines in the United States and Canada. This is compared with a year-ago second quarter loss of $84 million, which was impacted by the Ford settlement and other related charges as the company began to transition out of its business with Ford. Other factors contributing to second-quarter profit included a 54 percent increase in South American engine shipments over the year-ago second quarter, the impact of consolidation of the company’s Blue Diamond Parts operations and increased intercompany activity aided by sales of its 11-liter and 13-liter MaxxForce engines.

Parts — The parts segment continues to deliver profits due to increased volumes in business in North America, which partially offset the impact of declines in U.S. military sales. The parts segment reported a second-quarter profit of $58 million, compared with a year-ago profit of $115 million, which was positively impacted by strong MRAP volumes.

Financial Services — The financial services segment delivered a profit of $16 million and $28 million, in the second quarter and six months ended April 30, 2010, respectively, compared with a profit of $18 million and $17 million in the year-ago second quarter and six month periods. The second-quarter results were positively impacted by the benefits of decreased interest expense and lower derivative expense offset by a decrease in revenues, as a result of declines in average receivable balances as the economic climate remains challenging to the company’s customers and dealers.

Thor Industries (NYSE:THO) announced today preliminary sales and backlog for the quarter and nine months ended April 30, 2010, and the divestiture of its Canadian RV and Park Model operations.

Sales in the quarter were $679 million, up 64% from $415 million last year. RV sales were $558 million, up 79% from $312 million last year. Specialty Vehicle sales, which include buses and ambulances were $121 million, up 17% from $103 million last year.

Sales in the 9 months were $1.61 billion, up 49% from $1.08 billion last year. RV sales were $1.28 billion, up 65% from $777 million last year. Specialty Vehicle sales were $328 million, up 8% from $304 million last year.

Cash, cash equivalents and investments on April 30, 2010 were $155 million versus $296 million last year. Backlog on April 30, 2010 was $667 million, up 51% from $442 million last year. RV backlog was $448 million, more than double $214 million last year. Specialty Vehicle backlog was $219 million versus $228 million last year.

Thor also announced that it had sold its Citair Inc. subsidiary, d.b.a. General Coach Canada, to management, effective April 30, 2010.

"The RV industry continues a strong wholesale re-stocking trend, as evidenced by Thor's large order backlog," said Peter B. Orthwein, Thor Chairman, CEO & President. "Importantly, Thor's recent internal retail sales results also demonstrate substantial improvement over last year, including the March and April periods. This bodes well for a better balance between retail demand and wholesale replenishment as we move forward," he added.

The Coast Distribution System, Inc. (NYSE Amex: CRV) today reported financial results for the first quarter ended March 31, 2010, highlighted by revenue growth and improved bottom line results.

First Quarter 2010 vs. 2009

Coast, one of North America's largest aftermarket suppliers of replacement parts, accessories and supplies for the recreational vehicle (RV), boating and outdoor recreation industries, reported net income of $22,000, or $0.00 per diluted share, for the first quarter of 2010 as compared to a net loss of $0.9 million, or $0.20 per diluted share for the first quarter of 2009. That nearly $1 million year-over-year improvement was primarily attributable to increases in net sales and gross margin, and a reduction in selling, general and administrative (SG&A) expenses in this year's first quarter.

Net sales increased by 3.9 percent to $24.1 million in the first quarter of 2010 as compared to $23.2 million in the same quarter of 2009. Gross margin increased to 20.4 percent in the 2010 first quarter, up from 18.6 percent in the same quarter of 2009. The improvements in both sales and gross margin were attributable to the Company's Canadian operations, and were due primarily to an improving Canadian economy and a strengthening of the Canadian dollar vis-a-vis the U.S. dollar. Sales and gross margin in the United States declined slightly in the first quarter due to the ongoing impact of the economic recession and credit crisis.

In the 2010 first quarter, the Company reduced SG&A expenses by $0.7 million, a decrease of 12.3 percent as compared to the 2009 first quarter. That reduction was due primarily to a 10% across-the-board reduction in salaries and wages, which became effective in February 2009, and continued implementation of other cost-cutting measures that were initiated in the latter part of 2008 in response to the economic recession and credit crisis.

On the balance sheet, accounts receivable increased by $1.2 million, to $17.9 million, from $16.7 million at March 31, 2009, as a result of the increase in sales in Canada. Inventories at March 31, 2010 were $25.2 million, a decrease of $5.6 million compared with $30.8 million a year earlier, which was attributable to the Company's cost savings measures and the reduction in consumer demand primarily in the United States. As a result of the reduction in inventories at March 31, 2010, the Company was able to reduce long-term debt by 37 percent to $12.8 million at March 31, 2010 from $20.2 million at March 31, 2009.

"The actions we implemented in response to the difficult economic and industry conditions over the last six quarters provided the foundation for the solid financial results we posted to start 2010," said Coast's Chief Executive Officer Jim Musbach. "The improvement in our results was driven by the strength of margins at our Canadian operations combined with continued control over the Company's SG&A expenses. We achieved our better overall financial results despite the absence of strength in our U.S. operations, which posted slight declines in sales and gross margins in this year's first quarter. Although wholesale shipments of recreational vehicles improved industry-wide in the first quarter, we believe that improvement was driven by inventory rebuilding at the dealer level rather than significantly improved retail sales. As a result, it may take more time for these factors to translate into improved sales and usage of RVs and boats, which would in turn generate better results for Coast."

Thor Industries (NYSE:THO) announced sales and backlog for the quarter and nine months ended April 30, 2010, and the divestiture of its Canadian RV and Park Model operations.

Sales in the quarter were $679 million, up 64% from $415 million last year. RV sales were $558 million, up 79% from $312 million last year. Specialty Vehicle sales, which include buses and ambulances were $121 million, up 17% from $103 million last year.

Sales in the 9 months were $1.61 billion, up 49% from $1.08 billion last year. RV sales were $1.28 billion, up 65% from $777 million last year. Specialty Vehicle sales were $328 million, up 8% from $304 million last year.

Cash, cash equivalents and investments on April 30, 2010 were $155 million versus $296 million last year. Backlog on April 30, 2010 was $667 million, up 51% from $442 million last year. RV backlog was $448 million, more than double $214 million last year. Specialty Vehicle backlog was $219 million versus $228 million last year.

Thor also announced that it had sold its Citair Inc. subsidiary, d.b.a. General Coach Canada, to management, effective April 30, 2010.

"The RV industry continues a strong wholesale re-stocking trend, as evidenced by Thor's large order backlog," said Peter B. Orthwein, Thor Chairman, CEO & President. "Importantly, Thor's recent internal retail sales results also demonstrate substantial improvement over last year, including the March and April periods. This bodes well for a better balance between retail demand and wholesale replenishment as we move forward," he added.

Liberty Coach, a family-owned and operated luxury motor coach manufacturer, has reported increased sales in both new and used motor coaches ordered for 2010.

Having sold a new triple slide coach just this past Saturday for a total of seven new coaches sold so far this year, the company projects a total of 16 will sell by the end of 2010, up from 12 last year. With coaches selling upwards of $1.8 million, this is a significant increase that co-owner Frank Konigseder attributes to a strengthening economy.

“Sales for used coaches are up as well,” Konigseder reports. “And our employment has increased by 30+ people from the 2009 levels.”

A custom motor coach by Liberty Coach rivals any luxury home with its completely integrated onboard navigation systems and other electronics. Liberty Coach also provides unparalleled customer support to its clientele bringing their 53-foot service vehicle and support staff to the major shows and rallies that take place across the country year round.

Known for incorporating state-of-the-art luxury appointments, and the latest technology for optimal safety, performance, and environmental responsibility, Liberty Coach has been a leader in the coaching industry for more than 40 years. The company’s showroom and service center is in Stuart, Florida, and their manufacturing facility with service center is in North Chicago, Illinois.

Gulf Stream Coach Towables Division announces sales results for April 2010. The Towables Division posted a year over year sales increase of 107% through April.

Brands included in these sales figures are: Prairie Schooner, Yellowstone, Canyon Trail, Mako, Kingsport, Trailmaster, Conquest, Innsbruck, Amerilite, Streamlite, Gulf Breeze, Emerald Bay, Visa, EnduraMax and Track & Trail.

The company has already increased production 25% in May, and anticipates another 20% increase for June production to assist dealers in replenishing their inventory levels. "We have seen a greater surge in February through April this year than in the past. The trend is phenomenal, particularly over the past few weeks. " says Steve Jacobs, National Sales Manager. Gulf Stream Towables Division has added many new dealers so far in 2010. Gulf Stream Coach attributes it's success to providing their customers with innovative products that are high quality and offer tremendous features for the money.

For more information, contact Gulf Stream Coach, 503 South Oakland Avenue, Nappanee, IN 46550, (800) 289-8787, www.gulfstreamrvtrailers.com

Winnebago Industries, Inc. (NYSE:WGO), the leading United States motor home manufacturer, today reported improved financial results for the Company’s second quarter of fiscal year 2010.

Revenues for the second quarter of fiscal 2010 ended February 27, 2010 were $110.5 million, an increase of 247 percent, versus $31.8 million for the second quarter of fiscal 2009. The second quarter of fiscal 2010 was positively impacted by a significant increase in motor home unit deliveries, particularly in the Class A category, which resulted in an increase in production volumes and greater efficiencies and higher utilization of the manufacturing facilities. The Company reported an operating loss of $1.9 million for the quarter, versus an operating loss of $18.6 million for the second quarter of fiscal 2009. Net income for the second quarter was $706,000 versus a net loss of $10.4 million for the second quarter of fiscal 2009. On a diluted per share basis, the Company had net income of $.02 for the second quarter of fiscal 2010 versus a net loss of $.36 for the second quarter of fiscal 2009. The net income for the second quarter reflected the positive impact of $2.2 million in tax benefits associated with various tax planning initiatives and tax settlements; however, no tax benefits have been recorded on second quarter fiscal 2010 pre-tax losses which are not immediately subject to refund.

Revenues for the first six months of fiscal 2010 were $191.5 million, an increase of 89 percent, versus revenues of $101.2 million for the first six months of fiscal 2009. The Company reported an operating loss of $7.8 million for the first six months of fiscal 2010, versus an operating loss of $35.5 million for the first six months of fiscal 2009. Net loss for the first six months of fiscal of 2010 was $638,000, or $.02 per diluted share, versus an operating loss of $20.0 million, or $.69 per diluted share for the first six months of the last fiscal year. The net loss for the first six months of fiscal 2010 reflected the positive impact of $4.9 million in tax benefits associated with additional fiscal year 2009 net operating loss carryback due to recent tax law changes and the additional $2.2 million of second quarter tax benefits associated with various tax planning initiatives and tax settlements; however, no tax benefits have been recorded on the first six months of fiscal 2010 pre-tax losses which are not immediately subject to refund.

“We are pleased to see a continued trend of sequential growth in revenues and gross profit,” said Winnebago Industries’ Chairman, CEO and President Bob Olson. "After hitting our lowest shipment levels in decades during the second quarter last year, we have seen improvement in revenues and gross profit each quarter since that time. We also saw a sequential increase in dealer inventory this past quarter for the first time in two years as we increased our production levels to satisfy our sales order backlog. While we are encouraged with these improvements, the economic outlook remains uncertain and we believe retail sales will be the key driver to sustain our recovery and for continued growth going forward." Winnebago Industries’ sales order backlog was 1,159 motor homes at February 27, 2010, an increase of 246.0% compared to the end of the second quarter of fiscal 2009.

According to Statistical Surveys, Inc., the retail reporting service for the RV industry, Winnebago Industries continues to lead the industry in retail sales of Class A and Class C motor homes combined with 19.2 percent for calendar 2009, compared to 18.3 percent for calendar 2008.

Cash and equivalents increased by $5.0 million in the first six months of fiscal 2010. A major component of this was the receipt of a federal tax refund of $21.9 million. As a result, cash and cash equivalents at the end of the quarter were $41.6 million.

Separately, the Company filed today a shelf registration statement on Form S-3 (the Registration Statement) with the Securities and Exchange Commission (the SEC) to provide additional financial flexibility. If and when the Registration Statement is declared effective by the SEC, the Company will have the ability to sell up to $35 million of its common stock in one or more offerings. Currently, there are no plans to use the Registration Statement; however the Company believes that it will provide another source of liquidity in addition to the alternatives already in place. The terms of any offering under the Registration Statement will be established at the time of any offering.

The Registration Statement relating to these securities has been filed with the SEC, but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the Registration Statement becomes effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.