FOREST CITY, Iowa — Winnebago Industries Inc., one of the leading U.S. motorhome manufacturers, today reported continued improvement in financial results during the Company’s first quarter of Fiscal year 2011.
Revenues for the first quarter of Fiscal 2011 ended November 27, 2010, were $123.7 million, an increase of 52.7 percent, versus $81.0 million for the first quarter of Fiscal 2010. The Company reported an operating profit of $4.9 million for the quarter, versus an operating loss of $6.0 million for the first quarter of Fiscal 2010. Net income for the first quarter was $3.8 million versus a net loss of $1.3 million for the first quarter of Fiscal 2010. On a diluted per share basis, the Company had net income of $0.13 for the first quarter of Fiscal 2011 versus a net loss of $0.05 for the first quarter of Fiscal 2010. The net loss for the first quarter of Fiscal 2010 reflected the positive impact of $4.9 million in tax benefits associated with additional Fiscal 2009 net operating loss carryback due to tax law changes in Fiscal 2010; however, no tax benefits were recorded on first quarter Fiscal 2010 pre-tax losses which were not immediately subject to refund. During the first quarter of Fiscal 2011, an idled assembly facility in Charles City, Iowa (CCMF) classified as held for sale, was sold to CGS Tires US, Inc. The sale was finalized on November 1, 2010 and generated $3.7 million in net proceeds and a gain of $644,000.
The first quarter was positively impacted by increased motorhome deliveries, increased average selling price due to a shift to more higher-priced Class A products, more fixed cost absorption and improved labor efficiencies as a result of higher production levels, as well as the sale of CCMF.
“Increased motorhome deliveries continued to drive the improvement in our first quarter Fiscal 2011 results,” said Winnebago Industries’ Chairman, CEO and President Bob Olson. “We are pleased to see increases in our delivery volumes, as well as strength in our Class A products in the marketplace, with gains in both Class A gas and diesel market share. As we enter the slower winter months, however, we remain cautious until we see continued retail growth.”
“We experienced a very positive response from dealers on our new 2011 products shown at the recent National RV Trade Show in Louisville, Ky., which took place November 30 through December 2, 2010,” continued Olson. “Our dealers were particularly excited about the new Class A diesel Winnebago Tour and Itasca Ellipse products for 2011, which were totally redesigned with a new exterior design and four floorplans unique to the recreation vehicle (RV) industry. We also displayed several new floorplans in our Class A gas and Class C product lines, in addition to the premier viewing of our new 2012 ERA Class B motorhome, with better user-functionality, enhanced features, more storage capacity and more value.”
Winnebago Industries’ dealer inventory increased 31.8 percent with 2,066 Class A, B and C motorhomes on dealers’ lots at the end of the first quarter of Fiscal 2011, compared to the end of the first quarter of Fiscal 2010. Conversely, Winnebago Industries’ sales order backlog was 698 Class A, B and C motorhomes at the end of the first quarter of Fiscal 2011, a decrease of 54.1 percent compared to the end of the first quarter of Fiscal 2010.
“Our higher sales order backlog last year at this time was indicative of the fact dealer inventory had bottomed out and our dealers were finally ready to re-stock their shelves with new product,” said Olson. “We responded to that increased demand by ramping up our production a year ago and dealer inventory has remained at a consistent level and in line with retail demand since February 2010.”
Winnebago Industries, Inc., The Most Recognized Name In Motor Homes®, is a leading U.S. manufacturer of motorhomes which are self-contained recreation vehicles used primarily in leisure travel and outdoor recreation activities. The Company builds quality motorhomes under the Winnebago, Itasca and ERA brand names with state-of-the-art computer-aided design and manufacturing systems on automotive-styled assembly lines. Winnebago Industries has received the Quality Circle Award from the Recreation Vehicle Dealers Association every year since the award’s inception in 1996.
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SOURCE: Winnebago Industries, Inc. press release