27/12/2016

27 December 2016
27 December 2016, Comments Comments Off on First quarter 2017: strong growth in both Grand Design and Winnebago brands
First quarter 2017: strong growth in both Grand Design and Winnebago brands

Winnebago, a leading U.S. manufacturer of recreation vehicles under the Winnebago and Grand Design brands, builds quality motorhomes, travel trailers and fifth wheel products and has multiple facilities in Iowa, Indiana, Oregon and Minnesota. On December 21, Winnebago Industries, Inc. reported financial results for the first quarter of Fiscal 2017: revenues for the Fiscal 2017 first quarter ended November 26, 2016, were $245.3 million, an increase of 14.5%, 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% 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% 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% – slightly offset by a modest decline in Motorized revenues. First-quarter gross margin was steady, year over year.

President and Chief Executive Officer Michael Happe commented, “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. 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.”