Winnebago Industries Reports Third Quarter Fiscal 2024 Results
Winnebago Industries (NYSE: WGO) reported its third-quarter fiscal 2024 results, highlighting a mixed financial performance amid challenging market conditions. Revenues for the quarter were $786.0 million, down 12.7% year-over-year. Gross profit decreased by 22.0% to $118.2 million, with a gross margin of 15.0%. Diluted earnings per share (EPS) stood at $0.96, while adjusted EPS was $1.13. Adjusted EBITDA was $58.0 million, a 39.8% decline. The Towable RV and Marine segments showed sequential improvement, with Barletta achieving double-digit market share in the U.S. aluminum pontoon market. Despite a difficult market, the company returned $87.8 million to shareholders through share repurchases and dividends. Cash and cash equivalents increased to $318.1 million. However, revenues saw declines across most segments, significantly impacting net income.
- Towable RV business generated higher year-over-year revenue.
- Barletta pontoon retail share grew to double digits.
- Returned $87.8 million to shareholders through share repurchases and dividends.
- Cash and cash equivalents increased to $318.1 million, up 2.6% from year-end fiscal 2023.
- Overall revenues decreased by 12.7% year-over-year.
- Gross profit declined by 22.0%, with a gross margin down to 15.0%.
- Operating income dropped by 46.0% to $43.5 million.
- Net income fell to $29.0 million from $59.1 million in the same period last year.
- Adjusted EBITDA decreased by 39.8% to $58.0 million.
- Revenue for the Motorhome RV segment decreased by 20.1%.
- Marine segment revenue declined by 31.8%.
The financial results for Winnebago Industries' third quarter of fiscal 2024 demonstrate a challenging market environment. The company reported
When compared to the prior year, the adjusted earnings per diluted share declined by
Cash and cash equivalents at the end of the quarter were
Overall, the financials suggest that while Winnebago Industries is navigating a tough market scenario, its ability to maintain liquidity and return value to shareholders are noteworthy. However, the significant decrease in revenues and profitability indicators could cause investor concerns in the short term.
Winnebago Industries' market performance indicates a mixed bag. The Towable RV segment witnessed a slight revenue increase of
In contrast, the Motorhome RV segment suffered a substantial revenue decline of
The Marine segment faced even more difficulties, with revenues decreasing by
The mixed performance across segments suggests that while some of Winnebago’s products are finding traction, others, particularly in the Motorhome and Marine segments, are struggling. This could imply either a shift in consumer preference or competitive pressures in those market segments. Investors should keep a close eye on how the company strategizes to address these segment-specific challenges in upcoming quarters.
The introduction of new products and technological advancements, such as the Grand Design Lineage motorhome product and the Winnebago Connect intelligent control system, are notable developments. These innovations aim to enhance the customer experience by offering more sophisticated and user-friendly features.
The Winnebago Connect intelligent control system integrates advanced technology into the Navion line, which could potentially improve operational efficiencies and provide a seamless user experience. This move aligns with the industry trend towards smart and connected vehicles, which is likely to attract tech-savvy consumers.
The focus on value differentiation through affordable yet innovative products could help Winnebago withstand market downturns by appealing to a broader customer base. However, the actual market reception of these new introductions will be important in determining their success and impact on Winnebago's long-term growth.
Investors should monitor the market performance of these new products closely, as successful adoption could provide a significant competitive edge and cushion the company's financial performance in future quarters.
-- Resilient Profitability, Supported by Solid Sequential Improvement in Towable RV and Marine Segments --
-- Barletta Accelerates its Share Momentum in the U.S. Aluminum Pontoon Market Achieving Double Digit Market Share in the Most Recent Three- and Six-Month Periods(1) --
-- Company Returns
EDEN PRAIRIE, Minn., June 20, 2024 (GLOBE NEWSWIRE) -- Winnebago Industries, Inc. (NYSE: WGO), a leading outdoor lifestyle product manufacturer, today reported financial results for the Company's fiscal 2024 third quarter ended May 25, 2024.
Third Quarter Fiscal 2024 Financial Summary
- Revenues of
$786.0 million - Gross profit of
$118.2 million , representing15.0% gross margin - Diluted earnings per share of
$0.96 ; adjusted diluted earnings per share of$1.13 - Adjusted EBITDA of
$58.0 million , representing7.4% adjusted EBITDA margin - Cash and cash equivalents of
$318.1 million at quarter-end, up2.6% from year-end fiscal 2023
CEO Commentary
“While outdoor industry market conditions remain challenged given inconsistent retail patterns and sustained dealer discipline relative to field inventory levels, we are generally pleased with the resiliency of our portfolio, as our teams balance the pursuit of long-term share, profitability and customer satisfaction across our premium brands,” said Michael Happe, President and Chief Executive Officer. “Driven by our Towable RV and Marine segments, we delivered sequential consolidated margin growth in the third quarter. Notwithstanding difficult retail headwinds in the Motorhome segment, our Towable RV business generated higher revenue versus the same period a year ago and our Barletta pontoon retail share grew to double digits for the trailing three- and six-month periods through April. We are also pleased to have returned more than
“The combination of affordability and innovation remains a focal point of product development at Winnebago Industries – valued differentiation on respected brands our consumers can trust,” Happe said. “Recent introductions of economical travel trailers from our Grand Design and Winnebago brands, plus continued market penetration with the opening price Aria line within our Barletta business are evidence of this focus. We are also particularly excited about the upcoming market release in our fourth quarter of the Grand Design Lineage motorhome product as well as the Winnebago Connect intelligent control system being introduced on the Winnebago Navion line. Both strategies open new growth opportunities for our organization.”
Third Quarter Fiscal 2024 Results
Revenues were
Gross profit was
Selling, general and administrative expenses were
Operating income was
Net income was
Consolidated Adjusted EBITDA was
“We have made strong progress during the fiscal year to reduce aging RV field inventory in a fiscally responsible manner; our teams continue to work closely with our dealer partners to monitor the complexion of their inventory and match production and shipments with retail demand,” Happe said. “This discipline extends to our Marine segment as well, where we have particularly emphasized dealer inventory health and aggressively positioned ourselves well for the upcoming model year 2025 rollout. Overall, while the challenges of today require constant diligence to navigate, our Company and brands are stronger than ever before and with ongoing investments in product, people, systems, and capabilities like digital connectivity we are well situated to grow profitably as the cycle turns more positive in the future.”
Third Quarter Fiscal 2024 Segments Summary
Towable RV
| Three Months Ended | ||||||||||
| ($, in millions) | May 25, 2024 | May 27, 2023 | Change(1) | |||||||
| Net revenues | $ | 386.3 | $ | 384.1 | 0.6 | % | ||||
| Adjusted EBITDA | $ | 41.9 | $ | 53.8 | (22.0 | )% | ||||
| Adjusted EBITDA Margin | 10.9 | % | 14.0 | % | (310) bps | |||||
| ($, in millions) | May 25, 2024 | May 27, 2023 | Change(1) | |||||||
| Backlog | $ | 153.1 | $ | 236.0 | (35.1 | )% | ||||
| (1) | Amounts are calculated based on unrounded numbers and therefore may not recalculate using the rounded numbers provided. |
- Revenues for the Towable RV segment were up compared to the prior year, primarily driven by an increase in unit volume, partially offset by a reduction in average selling price per unit related to product mix.
- Segment Adjusted EBITDA margin decreased compared to the prior year, primarily due to operational efficiency challenges, partially offset by lower discounts and allowances. In addition, results for the third quarter of fiscal 2023 benefited from a favorable warranty expense trend, which did not recur in the third quarter of fiscal 2024.
- Backlog decreased due to current market conditions and a cautious dealer network.
Motorhome RV
| Three Months Ended | ||||||||||
| ($, in millions) | May 25, 2024 | May 27, 2023 | Change(1) | |||||||
| Net revenues | $ | 299.0 | $ | 374.4 | (20.1 | )% | ||||
| Adjusted EBITDA | $ | 13.4 | $ | 26.8 | (50.2 | )% | ||||
| Adjusted EBITDA Margin | 4.5 | % | 7.2 | % | (270) bps | |||||
| ($, in millions) | May 25, 2024 | May 27, 2023 | Change(1) | |||||||
| Backlog | $ | 354.9 | $ | 800.4 | (55.7 | )% | ||||
| (1) | Amounts are calculated based on unrounded numbers and therefore may not recalculate using the rounded numbers provided. |
- Revenues for the Motorhome RV segment were down from the prior year, due to a decline in unit volume related to market conditions and higher levels of discounts and allowances, partially offset by price increases related to higher motorized chassis costs.
- Segment Adjusted EBITDA margin decreased compared to the prior year, primarily due to deleverage and operational efficiency challenges, partially offset by cost containment efforts.
- Backlog decreased due to current market conditions and a cautious dealer network.
Marine
| Three Months Ended | ||||||||||
| ($, in millions) | May 25, 2024 | May 27, 2023 | Change(1) | |||||||
| Net revenues | $ | 87.9 | $ | 129.0 | (31.8 | )% | ||||
| Adjusted EBITDA | $ | 8.5 | $ | 17.3 | (50.9 | )% | ||||
| Adjusted EBITDA Margin | 9.7 | % | 13.4 | % | (370) bps | |||||
| ($, in millions) | May 25, 2024 | May 27, 2023 | Change(1) | |||||||
| Backlog | $ | 62.0 | $ | 146.3 | (57.6 | )% | ||||
| (1) | Amounts are calculated based on unrounded numbers and therefore may not recalculate using the rounded numbers provided. |
- Revenues for the Marine segment were down from the prior year, primarily driven by a decline in unit volume related to market conditions and product mix.
- Segment Adjusted EBITDA decreased compared to the prior year, due to deleverage, partially offset by cost containment efforts.
- Backlog decreased primarily driven by a cautious dealer network.
Balance Sheet and Cash Flow
As of May 25, 2024, cash and cash equivalents totaled
Quarterly Cash Dividend and Share Repurchase
On May 15, 2024, the Company’s Board of Directors approved a quarterly cash dividend of
Q3 FY 2024 Conference Call
Winnebago Industries, Inc. will discuss third quarter fiscal 2024 earnings results during a conference call scheduled for 9:00 a.m. Central Time today. Members of the news media, investors and the general public are invited to access a live broadcast of the conference call and view the accompanying presentation slides via the Investor Relations page of the Company's website at http://investor.wgo.net. The event will be archived and available for replay for the next 90 days.
About Winnebago Industries
Winnebago Industries, Inc. is a leading North American manufacturer of outdoor lifestyle products under the Winnebago, Grand Design, Chris-Craft, Newmar and Barletta brands, which are used primarily in leisure travel and outdoor recreation activities. The Company builds high-quality motorhomes, travel trailers, fifth-wheel products, outboard and sterndrive powerboats, pontoons, and commercial community outreach vehicles. Committed to advancing sustainable innovation and leveraging vertical integration in key component areas, Winnebago Industries has multiple facilities in Iowa, Indiana, Minnesota and Florida. The Company’s common stock is listed on the New York Stock Exchange and traded under the symbol WGO. For access to Winnebago Industries' investor relations material or to add your name to an automatic email list for Company news releases, visit http://investor.wgo.net.
Forward-Looking Statements
This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that forward-looking statements are inherently uncertain. A number of factors could cause actual results to differ materially from these statements, including, but not limited to general economic uncertainty in key markets and a worsening of domestic and global economic conditions or low levels of economic growth; availability of financing for RV and marine dealers; competition and new product introductions by competitors; ability to innovate and commercialize new products; ability to manage our inventory to meet demand; risk related to cyclicality and seasonality of our business; risk related to independent dealers; risk related to dealer consolidation or the loss of a significant dealer; significant increase in repurchase obligations; ability to retain relationships with our suppliers and obtain components; business or production disruptions; inadequate management of dealer inventory levels; increased material and component costs, including availability and price of fuel and other raw materials; ability to integrate mergers and acquisitions; ability to attract and retain qualified personnel and changes in market compensation rates; exposure to warranty claims; ability to protect our information technology systems from data security, cyberattacks, and network disruption risks and the ability to successfully upgrade and evolve our information technology systems; ability to retain brand reputation and related exposure to product liability claims; governmental regulation, including for climate change; increased attention to environmental, social, and governance ("ESG") matters, and our ability to meet our commitments; impairment of goodwill and trade names; and risks related to our 2025 Convertible Notes, 2030 Convertible Notes and Senior Secured Notes, including our ability to satisfy our obligations under these notes. Additional information concerning certain risks and uncertainties that could cause actual results to differ materially from that projected or suggested is contained in the Company's filings with the Securities and Exchange Commission ("SEC") over the last 12 months, copies of which are available from the SEC or from the Company upon request. The Company disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained in this release or to reflect any changes in the Company's expectations after the date of this release or any change in events, conditions or circumstances on which any statement is based, except as required by law.
Contacts
Investors: Ray Posadas
ir@winnebagoind.com
Media: Dan Sullivan
media@winnebagoind.com
Winnebago Industries, Inc.
Footnotes to News Release
Footnotes:
| (1) | Data reported by Statistical Surveys, Inc., representing trailing three- and six-month U.S. aluminum pontoon market share through April 2024. This data is continuously updated and often impacted by delays in reporting by various states. |
| Winnebago Industries, Inc. Condensed Consolidated Statements of Income (Unaudited and subject to reclassification) | |||||||||||
| Three Months Ended | |||||||||||
| (in millions, except percent and per share data) | May 25, 2024 | May 27, 2023 | |||||||||
| Net revenues | $ | 786.0 | 100.0 | % | $ | 900.8 | 100.0 | % | |||
| Cost of goods sold | 667.8 | 85.0 | % | 749.4 | 83.2 | % | |||||
| Gross profit | 118.2 | 15.0 | % | 151.4 | 16.8 | % | |||||
| Selling, general, and administrative expenses | 69.1 | 8.8 | % | 66.5 | 7.4 | % | |||||
| Amortization | 5.6 | 0.7 | % | 4.4 | 0.5 | % | |||||
| Total operating expenses | 74.7 | 9.5 | % | 70.9 | 7.9 | % | |||||
| Operating income | 43.5 | 5.5 | % | 80.5 | 8.9 | % | |||||
| Interest expense, net | 5.8 | 0.7 | % | 5.2 | 0.6 | % | |||||
| Non-operating loss | 2.2 | 0.3 | % | 0.2 | — | % | |||||
| Income before income taxes | 35.5 | 4.5 | % | 75.1 | 8.3 | % | |||||
| Provision for income taxes | 6.5 | 0.8 | % | 16.0 | 1.8 | % | |||||
| Net income | $ | 29.0 | 3.7 | % | $ | 59.1 | 6.6 | % | |||
| Earnings per common share: | |||||||||||
| Basic | $ | 0.99 | $ | 1.95 | |||||||
| Diluted | $ | 0.96 | $ | 1.71 | |||||||
| Weighted average common shares outstanding: | |||||||||||
| Basic | 29.2 | 30.4 | |||||||||
| Diluted | 30.4 | 35.4 | |||||||||
| Nine Months Ended | |||||||||||
| (in millions, except percent and per share data) | May 25, 2024 | May 27, 2023 | |||||||||
| Net revenues | $ | 2,252.6 | 100.0 | % | $ | 2,719.7 | 100.0 | % | |||
| Cost of goods sold |
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FAQ
What were Winnebago's revenues for Q3 FY2024?
Winnebago Industries reported revenues of $786.0 million for Q3 FY2024.
How did Winnebago's adjusted EPS perform in Q3 FY2024?
Winnebago's adjusted EPS was $1.13 for Q3 FY2024, down 46.9% from the previous year.
What is the current cash position of Winnebago as of Q3 FY2024?
As of Q3 FY2024, Winnebago's cash and cash equivalents totaled $318.1 million.
What was Winnebago's gross profit margin in Q3 FY2024?
Winnebago's gross profit margin for Q3 FY2024 was 15.0%.
Did Winnebago return any capital to shareholders in Q3 FY2024?
Yes, Winnebago returned $87.8 million to shareholders through share repurchases and dividends in Q3 FY2024.
What was the adjusted EBITDA for Winnebago in Q3 FY2024?
Winnebago's adjusted EBITDA for Q3 FY2024 was $58.0 million.
How did the Towable RV segment perform for Winnebago in Q3 FY2024?
The Towable RV segment generated higher year-over-year revenue but saw a 22.0% decrease in adjusted EBITDA.
What was the net income for Winnebago in Q3 FY2024?
Winnebago's net income for Q3 FY2024 was $29.0 million.
How did Winnebago's Marine segment perform in Q3 FY2024?
The Marine segment saw a revenue decline of 31.8% in Q3 FY2024.
What were the earnings per share (EPS) for Winnebago in Q3 FY2024?
Winnebago reported a diluted EPS of $0.96 for Q3 FY2024.
Winnebago Industries, Inc.
NYSE:WGOWGO RankingsWGO Latest NewsWGO Stock Data
1.50B
28.96M
3.01%
115.33%
17.29%
Motor Home Manufacturing
Manufacturing
United States of America
EDEN PRAIRIE
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