The Recreation Vehicle Industry Association commissioned an Economic Impact Study on the RV industry, released on June 7, 2016. The study found that the RV industry contributes about $49.7 billion in economic output or 0.28 percent of the Gross Domestic Product. Through its production and distribution linkages, the industry impacts firms in 426 of the 440 sectors of the United States economy.
Nationwide, the industry is responsible for 216,170 jobs, both directly and inderectly, creating an economic impact of $37.5 billion. The full study results, along with each individual state and congressional district's economic impact is available on the website by clicking here .
Thu Oct 13, 2016
FOREST CITY, IOWA - Winnebago Industries, Inc. has reported financial results for the company's fourth quarter and full year Fiscal 2016, less than two weeks after announcing it has signed a purchase agreement to acquire Grand Design, a leading Towables RV manufacturer.
Fourth Quarter Fiscal 2016 Results
Revenues for the Fiscal 2016 fourth quarter ended Aug. 27, were $263.3 million, an increase of 4.9 percent, compared to $251 million for the Fiscal 2015 period. Operating income was $18.9 million for the current quarter, an improvement of 11.7 percent compared to $16.9 million in the fourth quarter of last year. Fiscal 2016 fourth quarter net income was $13.1 million, or $0.49 per diluted share, an increase of 12.2 percent compared to $11.7 million, or $0.43 per diluted share, in the same period last year.
Fourth-quarter Fiscal 2016 consolidated revenues improved year over year primarily becaues of higher shipments of 3 percent in motorized units and 57.5 percent in towables. Current quarter revenues were impacted negatively by $5.4 million as the company exited the sale of aluminum extrusions to customers during the year.
Fourth-quarter gross margin improved year over year, primarily because of lower raw material costs resulting from the company’s strategic sourcing initiative, as well as favorable product mix and lower warranty expense, according to a press release.
“Fourth-quarter revenues increased year over year, driven by continued strong growth in our towables business as well as modest improvement in motorized shipments," President and CEI Michael Happe says. "Importantly, income and gross margin also grew, due in part to our comprehensive strategic sourcing initiatives, a solid increase in labor efficiencies and lower warranty expense. Our towables business continues to be one of the primary performance drivers, as shipments and retail registrations both outperform the market, thanks to several new products and increased dealer outlets. The motorized team drove a higher level of manufacturing output while also working hard to deliver more consistent levels of product quality. I want to thank all the employees at Winnebago for their dedication in Fiscal 2016 and commitment to exceeding our customers' expectations in the future."
Full Year Fiscal 2016 Results
Year over year, Fiscal 2016 revenues of $975.2 million decreased 0.1 percent from $976.5 million for Fiscal 2015. Higher shipments of 2.3 percent in motorized units and 57.3 percent in towables was offset by the company's exit of aluminum extrusion sales to outside customers and lower average selling prices. Operating income was $65.7 million for Fiscal 2016, an improvement of 10.6 percent compared to $59.4 million in Fiscal 2015. Net income for Fiscal 2016 was $45.5 million, or $1.68 per diluted share, versus $41.2 million, or $1.52 per diluted share, last fiscal year. Gross margin improved year over year, primarily because of lower raw material costs resulting from the company’s strategic sourcing initiative, as well as favorable product mix, partially offset by higher warranty expense.
On a year over year basis the towable business experienced substantial increases in retail registrations which were up more than 35 percent. The motorized retail growth rate was essentially flat during Fiscal 2016 compared to Fiscal 2015.
"We look to Fiscal 2017 as an important year in the evolution of Winnebago," Happe says. "We are just beginning on our journey to drive operational excellence in our manufacturing and supply value chain and instill a stronger performance culture still very much focused on our customers. The Elkhart Open House Event for dealers last month started our Fiscal year on a positive note as we materially improved our motorhome order backlog and validated momentum in the towables business. The excitement was compounded last week as we announced that we have reached a definitive agreement to acquire Grand Design, one of the fastest growing and most profitable manufacturers in our industry. We have much work to do, but the future looks positive.”
Quarterly Cash Dividend
On Oct. 12, the company’s board of directors approved a quarterly cash dividend of $0.10 per share payable on Nov. 23, to common stockholders of record at the close of business on Nov, 9.