FOREST CITY – Winnebago Industries, Inc. (NYSE:WGO), a leading outdoor lifestyle product manufacturer, today reported financial results for the Company’s fourth quarter and full year Fiscal 2018.
Revenues for the Fiscal 2018 fourth quarter ended August 25, 2018, were $536.2 million, an increase of 17.9% compared to $454.9 million for the Fiscal 2017 period. Gross profit was $83.8 million, an increase of 13.9% compared to $73.6 million for the Fiscal 2017 period. Gross profit margin decreased 60 basis points in the quarter, as higher input costs were largely offset by cost savings initiatives and pricing actions, but the results compared against a favorable inventory adjustment in the prior year as well. Operating income was $45.7 million for the quarter, an improvement of 5.1% compared to $43.5 million in the fourth quarter of last year. Fiscal 2018 fourth quarter net income was $29.8 million, an increase of 19.5% compared to $24.9 million in the same period last year. Earnings per diluted share were $0.94, an increase of 19.0% compared to earnings per diluted share of $0.79 in the same period last year. Consolidated Adjusted EBITDA was $53.6 million for the quarter, compared to $47.8 million last year, an increase of 12.1%. Fourth quarter results include costs related to the Chris-Craft acquisition of $2.8 million or $0.06 per diluted share, including amortization expenses of $1.5 million related to the definite-lived intangible assets acquired and transaction costs of $1.3 million.
“Fiscal 2018 was a tremendous step forward for Winnebago Industries in all aspects – strategically, financially, and culturally,” stated President and Chief Executive Officer Michael Happe. “Strategically we made strong strides in the journey to transform ourselves into a premier, outdoor lifestyle company, especially with our fourth-quarter entry into the attractive marine market with the acquisition of Chris-Craft. We have also elevated our level of competitiveness within the North American RV market as a stronger full-line OEM, raising consolidated market share primarily on the strength of our sustained Towables segment growth. Both our Winnebago and Grand Design-branded towables business have material momentum, with new products and superlative quality driving increased business with dealers and end customers. Our Motorhome business continues to make sequential progress in improving its product line vitality and profitability.”
Happe further commented, “Financially, we are thrilled to exceed the $2.0 billion revenue mark for the first time in our Company’s storied 60-year history, and we are delivering record bottom-line results in the face of inflationary headwinds on material and labor costs. Our balance sheet is solid and appropriately positioned to allow us to pursue further smart, profitable growth in the years ahead. Culturally, our employees are extremely focused on enabling extraordinary experiences in the outdoors for our customers, around a business model platform focused on quality, service, and innovation. Our leadership is committed to driving an even higher level of employee engagement and we are directing more resources to giving back to the communities our team lives and works in. Our success in Fiscal 2018 is a result of the incredible hard work of our 4,700-plus employees and their dedication to ensuring our customers receive the very best products and service possible.”
Full Year Fiscal 2018 Results
Fiscal 2018 revenues of $2.0 billion increased 30.4% from $1.5 billion in Fiscal 2017. Gross profit improved 50 basis points, primarily due to strong growth in the Towable segment and improved operating efficiencies in that segment. Operating income was $160.4 million for Fiscal 2018, an improvement of 28.2% compared to $125.1 million in Fiscal 2017. Net income for Fiscal 2018 was $102.4 million, an increase of 43.5% compared to $71.3 million in Fiscal 2017. Earnings per diluted share were $3.22, an increase of 38.8% compared to earnings per diluted share of $2.32 in Fiscal 2017. Fiscal 2018 consolidated Adjusted EBITDA was $181.7 million, an increase of 30.9% from $138.9 million in Fiscal 2017.
Motorhome
In the fourth quarter, revenues for the Motorhome segment were $228.5 million, up 2.5% from the previous year. Segment Adjusted EBITDA was $13.2 million, down 18.8% from the prior year. Adjusted EBITDA margin decreased 150 basis points, driven by investments in the business and increasing cost pressures that have not yet been overcome with recent pricing actions. Unit backlog increased 30.9% over the prior year, reflecting continued strength in our recently introduced products.
For the full year Fiscal 2018, revenues for the Motorhome segment were $860.7 million, up 0.9% from Fiscal 2017. Segment Adjusted EBITDA for the full year was $35.5 million, down 37.2% from Fiscal 2017. Adjusted EBITDA margin decreased 250 basis points for the full year.
Towable
Revenues for the Towable segment were $288.7 million for the fourth quarter, up 26.2% over the prior year, driven by continued strong organic growth across the Grand Design RV and Winnebago-branded businesses. Segment Adjusted EBITDA was $41.9 million, up 23.9% over the prior year. Adjusted EBITDA margin of 14.5% decreased 30 basis points from the prior year due to cost input pressures that were mitigated by effective price increases and cost reduction efforts, and also comparing against a favorable inventory adjustment in the prior year. Dollar backlog remained strong at over $244.9 million, growing 6.6% over last year, driven by a favorable product mix. Unit backlog was a robust 7,651 units but declined 4.4% against the prior year period, reflecting extremely high backlogs in late Fiscal 2017 and two plant expansions that have added additional production capacity during the course of calendar 2018.
For the full year Fiscal 2018, revenues for the Towable segment were $1,127.7 million, up 64.6% from Fiscal 2017. Segment Adjusted EBITDA for the full year was $157.0 million, up 75.0% from Fiscal 2017. Adjusted EBITDA margin increased 80 basis points for the full year.
No! i never worked at that low income paying place – But as a business owner I know many people who have – And THEY the employees are aware that the scums there HAVE HIRED foreign workers that are arriving on VISAS to fill their LOW PAID production jobs – how much mooola did the owners give the scum elected officials to make this happen so the company could save money – Have a good day DEMONCRAP.
All the foreign VISA workers they brought in too keep wages LOW helped the profit margin – not benefiting the assembly line workers.
Someone’s bitter, did you get fired for smoking crystal meth on the line?