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WINNEBAGO INDUSTRIES ANNOUNCES FIRST QUARTER FISCAL 2018 RESULTS
-- Quarterly Revenues Increased 83% on Continued Strong Towable Segment Growth --
-- Quarterly Diluted EPS of $0.57, Up 36% Over Prior Year --
-- Gross Margins Increased 220 Basis Points Over Prior Year --
FOREST CITY, IOWA, December 20, 2017 - Winnebago Industries, Inc. (NYSE:WGO), a leading recreation vehicle manufacturer, today reported financial results for the Company's first quarter Fiscal 2018.
First Quarter Fiscal 2018 Results
Revenues for the Fiscal 2018 first quarter ended November 25, 2017, were $450.0 million, an increase of 83.5% compared to $245.3 million for the Fiscal 2017 period, which included three weeks of Grand Design RV performance. Gross profit was $62.8 million, an increase of 117.6% compared to $28.9 million for the Fiscal 2017 period. Gross profit margin increased 220 basis points in the quarter, driven by the continuation of accelerated growth in the more profitable Towable segment. Operating income was $31.2 million for the quarter, an improvement of 69.4% compared to $18.4 million in the first quarter of last year. Fiscal 2018 first quarter net income was $18.0 million, an increase of 53.0% compared to $11.7 million in the same period last year. Earnings per diluted share were $0.57, an increase of 36% compared to earnings per diluted share of $0.42 in the same period last year. Consolidated adjusted EBITDA was $35.4 million for the quarter, compared to $14.7 million last year, an increase of 141.2%.
President and Chief Executive Officer Michael Happe commented, “As we begin Fiscal 2018, we’re pleased with our consolidated results, including continued robust sales growth and margin improvement, as well as further progress toward becoming a larger, more profitable full-line RV provider centered around our two leading brands, Winnebago and Grand Design RV. Our results reflect a transformed portfolio and focused dual-brand strategy that positions us to drive increasing market share and profitability, balancing our Motorized business with a fast-growing Towable segment. Our Grand Design RV business recently celebrated its one-year anniversary as part of Winnebago Industries and continues to perform well, as does our Winnebago-branded Towable division. On the Motorized side, profitability continues to be impacted by new product line start-up costs, ongoing expenses related to the ramp up of our West Coast production facility and an increase in direct material costs. All of our businesses had a successful fall season, with strong new product showings at the two largest industry events of the year, driving an increased order backlog. As always, I want to thank all of our Winnebago Industries employees for their hard work during the quarter and for their ongoing dedication to providing high-quality products and service to our customers.”
Significant items related to the Grand Design RV acquisition that are impacting income before income taxes in the first quarter of Fiscal 2018:
For the first quarter, amortization expenses of $2.1 million were recorded related to the definite-lived intangible assets acquired, or $0.04 per diluted share, net of tax. We expect ongoing amortization expense will be approximately $2.0 million per quarter through Fiscal 2021.
The following information was filed by Winnebago Industries Inc (WGO) on Wednesday, December 20, 2017 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.