21/10/2022

21 October 2022
21 October 2022, Comments Comments Off on Winnebago Industries Reports Strong Fourth Quarter
Winnebago Industries Reports Strong Fourth Quarter

Winnebago Industries reported financial results for the Company’s fourth quarter and full year Fiscal 2022. Revenues for the Fiscal 2022 fourth quarter ended August 27, 2022, were $1.2 billion, an increase of 13.8% compared to $1.0 billion for the Fiscal 2021 period. Revenues excluding the recently acquired Barletta business were $1.1 billion, representing an organic growth rate of 4.3% over the prior year period, primarily driven by pricing actions, partially offset by Towable unit declines. Gross profit was $210.4 million, an increase of 12.4% compared to $187.2 million for the Fiscal 2021 period. Gross profit margin decreased 30 basis points in the quarter to 17.8%, as a result of higher material and component costs and deleverage, partially offset by pricing actions.

President and Chief Executive Officer Michael Happe commented, “Winnebago Industries capped off a record year in Fiscal 2022 with solid fourth quarter results. Our leading premium outdoor brands, distinguished by the golden threads of quality, innovation, and service, continue to resonate with our increasingly diverse outdoor recreation consumer base. We made important market advances in both the RV and marine industries, operating well in a volatile macroeconomic environment. I want to thank our entire Winnebago Industries team for their excellence in driving record gross margins and operating income, having successfully navigated supply chain disruptions and cost input inflation. Their efforts enabled our ability to return record cash to our shareholders during the year as well. While we expect uncertain market conditions to persist into our Fiscal 2023, we are confident that our transformed and evolving business platform positions us for continued success into the future.”

Operating income was $123.6 million for the quarter, an increase of 3.0% compared to $120.0 million for the fourth quarter of last year. Fiscal 2022 fourth quarter net income was $82.6 million, a decrease of 1.8% compared to $84.1 million in the prior year quarter. Reported earnings per diluted share was $2.61, compared to reported earnings per diluted share of $2.45 in the same period last year. Adjusted earnings per diluted share was $3.02, an increase of 14.0% compared to adjusted earnings per diluted share of $2.65 in the same period last year. Consolidated Adjusted EBITDA was $139.2 million for the quarter, an increase of 7.9% compared to $129.0 million last year.

Full Year Fiscal 2022 Results

Fiscal 2022 represented record results with revenues of $5.0 billion increasing 36.6% from $3.6 billion in Fiscal 2021 driven by the recently acquired Barletta business, pricing actions and strong consumer demand for Winnebago Industries’ products. Record gross profit margin of 18.7% improved 80 basis points year-over-year driven primarily by improved operating leverage and price increases, partially offset by higher material and component costs and production inefficiencies caused by supply constraints. Operating income was $583.5 million for Fiscal 2022, compared to $407.4 million in Fiscal 2021. Net income was $390.6 million, an increase of 38.6% compared to $281.9 million the prior year. Earnings per diluted share was $11.84, an increase of 43.0% compared to earnings per diluted share of $8.28 in Fiscal 2021. Adjusted earnings per diluted share of $13.81 increased 55.5% compared to adjusted earnings per diluted share of $8.88 in the same period last year. Consolidated Adjusted EBITDA was $648.9 million, an increase of 48.8% from $436.1 million in Fiscal 2021.

Towable Fourth Quarter and Full Year Fiscal 2022 Results
For the full year Fiscal 2022, revenues for the Towable segment were $2.6 billion, up 29.2% over Fiscal 2021 primarily driven by price increases related to higher material and component costs. Segment Adjusted EBITDA for the full year was $383.6 million, up 32.7% year-over-year. Adjusted EBITDA margin of 14.8% increased 40 basis points for the full year over Fiscal 2021.

Motorhome Fourth Quarter and Full Year Fiscal 2022 Results
For the full year Fiscal 2022, revenues for the Motorhome segment were $1.9 billion, up 24.2% from Fiscal 2021 driven by pricing actions related to higher material and component costs, and increased unit sales. Segment Adjusted EBITDA for the full year was $238.0 million, up 40.7% from Fiscal 2021. Adjusted EBITDA margin of 12.5% was up 150 basis points for the full year over Fiscal 2021.

Marine Fourth Quarter and Full Year Fiscal 2022 Results
For the full year Fiscal 2022, revenues for the Marine segment were $425.3 million, up $365.1 million from Fiscal 2021 driven by the addition of the Barletta business. Segment Adjusted EBITDA for the full year was $60.8 million, up $55.7 million from Fiscal 2021. Full year adjusted EBITDA margin was 14.3% for Fiscal 2022, up 570 basis points for the full year over Fiscal 2021.

Mr. Happe continued, “Looking ahead, our focused strategic priorities, strong premium brands, more diversified set of revenue streams, operational discipline, and especially our people will enable us to win in the marketplace, remain agile, and deliver robust profitability as we continue to chart our course through the next year. Winnebago Industries is entering Fiscal 2023 from a position of competitive and financial strength, and will be extremely flexible in balancing strategic investments in profitable growth opportunities and managing our balance sheet with responsibility. We look forward to showcasing our strategic progress and intentions, along with a future outlook on our business and industries at our upcoming investor day on November 15, 2022.”