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Actionable news in WGO: WINNEBAGO INDUSTRIES Inc,

Winnebago Industries Announces Fourth Quarter And Fiscal 2015 Results

The following excerpt is from the company's SEC filing.

Full Year Fiscal 2015 Operating Cash Flow Increased by 95% Versus Last Year --

-- Board of Directors Approved 11% Increase in Quarterly Cash Dividend to $0.10 Per Share --

FOREST CITY, IOWA,

October 15, 2015

- Winnebago Industries, Inc. (NYSE:WGO), a leading United States recreation vehicle manufacturer, today reported financial results for the Company's

fourth

quarter and full year

Fourth Quarter

Results

Revenues for the

quarter ended

August 29, 2015

, were $

251.0 million

, an increase of

%, ver sus $

245.9 million

Fiscal 2014

period. Operating income was $

16.9 million

for the current quarter compared to $

18.3 million

in the

quarter of last year.

quarter net income was $

11.7 million

, or $

per diluted share, versus $

12.9 million

per diluted share, in the same period last year.

Fourth quarter gross margin improved sequentially from the third quarter due in part to improved manufacturing efficiencies within the motorized group. However, year-over-year

quarter gross margin declined due to unfavorable trends in warranty expense, the establishment of a warranty recall reserve and costs related to motorized manufacturing inefficiencies. These costs were partly offset by the reinstatement of tariff rebates on certain imported materials, lower commodity related expense, greater absorption of fixed costs and the realization of cost-saving benefits related to the Company’s strategic sourcing initiative.

Operating expenses increased in the

quarter compared to last year due mainly to incremental general and administrative expenses associated with two previously disclosed strategic initiatives related to ERP implementation and strategic sourcing, as well as costs related to a retirement agreement with the Company’s former CEO.

revenue growth year over year was driven by improved towables revenues of 36.7%, as a result of a 26.3% average selling price (ASP) increase and unit growth of

. Compared to last year,

motorized unit shipment volumes were essentially flat.

Year over year, motorhome retail registrations increased 28% in the

fourth quarter and

on a rolling 12-month basis, while towable retail registrations increased 21% in the

on a rolling 12-month basis, based on internally reported retail information.

revenues were $

976.5 million

from $

945.2 million

. The sales growth was primarily comprised of motorhome unit growth of

and towables ASP and unit growth of

% and

, respectively. Net income for

41.2 million

45.1 million

per diluted share, last year. During Fiscal 2015, investments related to the new ERP system and strategic sourcing initiatives aggregated $7.0 million, of which $3.8 million was expensed.

On October 14, 2015, the Company’s board of directors approved an 11% increase to the quarterly cash dividend to $0.10 per share, payable on November 25, 2015 to common stockholders of record at the close of business on November 11, 2015.

Management Comments

Sarah Nielsen, Chief Financial Officer, commented, “

results were driven by strong performance in our class B and C motorized products as well as significantly improved results from the towables group, where both revenue and operating income grew. During the year we made considerable progress on both of our strategic initiatives and saw early benefits from our strategic sourcing project, which we anticipate will enhance gross margin by up to 50 basis points in

Fiscal 2016

. Additionally, we continued our efforts to improve labor capacity within motorized through the purchase of a facility in Waverly, Iowa. In

, we will be exiting our bus and aluminum extrusion operations, which we believe will improve profitability and should...


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