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RVIA Economic Impact Study

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 .

Winnebago Revenues Increase 14.5 Percent in First Quarter

Wed Dec 21, 2016

145762292526352.jpgFOREST CITY, IOWA - Winnebago Industries, Inc. has reported an increase of 14.5 percent in its first quarter results of Fiscal 2017.

Revenues for the Fiscal 2017 first quarter ended Nov. 26, were $245.3 million, an increase of 14.5 percent, compared to $214.2 million for the Fiscal 2016 period. Operating income was $18.4 million for the current quarter, an improvement of 44.2 percent compared to $12.8 million in the first quarter of last year. Fiscal 2017 first quarter net income was $11.7 million, or $0.42 per diluted share, an increase of 37.2 percent compared to $8.6 million, or $0.32 per diluted share, in the same period last year.

Consolidated revenues improved year-over-year due primarily to strong growth in the company’s Towable business - which benefited from three weeks of sales from Grand Design, contributing $25.8 million during the quarter, as well as continued organic growth in the Winnebago-branded Towable business which grew 44 percent - slightly offset by a modest decline in Motorized revenues. First-quarter gross margin was steady, year over year.

“We are off to a strong start in 2017 as we continue to implement our plan to transform Winnebago, competing more effectively in the market and delivering increased profitability," President and CEO Michael Happe says. "We successfully completed the acquisition of Grand Design, significantly expanding our penetration within the fast-growing Towable market and creating a broader and more balanced portfolio well-positioned to capitalize on the opportunities across the RV market. Our Towable segment delivered continued strong organic growth for the quarter and we are now even better positioned to compete in this attractive market with the addition of Grand Design’s leading product portfolio. In our Motorized business, retail registrations were up and our backlog increased versus the end of the prior quarter; we are focused on driving greater and more consistent product quality and customer service. Looking ahead, we are excited to continue the momentum we have achieved in building Winnebago into a true full-line RV leader. I would like to thank all of our Winnebago employees for their hard work during the quarter and welcome the Grand Design team to our company.”

Significant items impacting income before income taxes in the first quarter of Fiscal 2017:

Postretirement health care benefit income: the company’s decision to terminate its postretirement health care plan effective Jan. 1, 2017 positively impacted the quarter by $12.8 million or $.31 per diluted share, net of tax, compared to prior year postretirement health care benefit income of $1.3 million or $.03 per diluted share, net of tax.

Grand Design acquisition related expenses:

Transaction costs related to the Grand Design acquisition were $5.5 million, or $.13 per diluted share, net of tax .

Amortization expense related to the definite-lived intangible assets acquired was $2.1 million, or $.05 per diluted share, net of tax.

Interest expense associated with the newly established outstanding debt to help fund the acquisition of $1.1 million, or $.03 per diluted share, net of tax.

Excluding these items as well as depreciation expense, consolidated adjusted EBITDA was $14.7 million compared to $12.8 million last year, an increase of 14.8 percent.

As a result of the company’s acquisition of Grand Design and continued growth of the Winnebago-branded Towable business, the company is now reporting results for the Motorized and Towable segments.

Motorized
Revenues for the Motorized segment were $195.1 million for the quarter, down 1.1 percent from the previous year, reflecting the impact of the company’s exit from its aluminum extrusion business which contributed $5 million in revenue in the first quarter of Fiscal 2016. Segment Adjusted EBITDA was $10 million, down 14.6 percent from the prior year, primarily driven by incrementally higher expenses related to workers compensation and costs associated with ramp-up of the company’s Junction City, Oregon production facility.

Towable
Revenues for the Towable segment were $50.2 million for the quarter, up 197.2 percent from the previous year, driven by the addition of $25.8 million in revenue from the Grand Design acquisition and strong organic growth from Winnebago-branded Towable products. Segment Adjusted EBITDA was $4.7 million, up 340 percent from the prior year.

Balance Sheet
As of Nov. 26, the company had a debt balance of $342.3 million ($353 million of debt, net of debt issuance costs of $10.7 million) and working capital of $144.9 million. The debt to equity ratio was 86.1 percent and the current ratio was 2.1 as of the end of the quarter.