FOREST CITY, IOWA, October 13, 2016 – Winnebago Industries today reported its financial results for its fourth quarter and full year fiscal 2016, less than two weeks after announcing it has signed a purchase agreement to acquire towables manufacturer Grand Design.
Fourth quarter fiscal 2016 results
Revenues for the fiscal 2016 fourth quarter ended August 27, 2016, were $263.3 million, an increase of 4.9% compared to $251 million for the fiscal 2015 period. Operating income was $18.9 million for the current quarter, an improvement of 11.7% 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% 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 due primarily to higher shipments of 3% in motorized units and 57.5% 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 due to lower raw material costs resulting from the company’s strategic sourcing initiative, as well as favorable product mix and lower warranty expense.
President and Chief Executive Officer Michael Happe commented, “Fourth-quarter revenues increased year over year, driven by continued strong growth in our towables business as well as modest improvement in motorized shipments. 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.”
Full year fiscal 2016 results
Year over year, fiscal 2016 revenues of $975.2 million decreased 0.1% from $976.5 million for fiscal 2015. Higher shipments of 2.3% in motorized units and 57.3% 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% 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 due to 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 over 35%. The motorized retail growth rate was essentially flat during Fiscal 2016 compared to Fiscal 2015.
Quarterly Cash Dividend
On October 12, 2016, the company’s board of directors approved a quarterly cash dividend of $0.10 per share payable on November 23, 2016, to common stockholders of record at the close of business on November 9, 2016.
SOURCE: Winnebago news release