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WINNEBAGO INDUSTRIES REPORTS RESULTS
FOR FIRST QUARTER OF FISCAL YEAR 2007
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FOREST CITY, IOWA, December 14, 2006 – Winnebago Industries, Inc. (NYSE:WGO), a leading United States motor home manufacturer, today reported financial results for the Company's first quarter of fiscal 2007 ended November 25, 2006.
Net income for the first quarter was $7.9 million, compared to net income of $14.6 million for the first quarter of fiscal 2006. On a diluted per share basis, the Company earned 25 cents a share for the first quarter of fiscal 2007, compared to 44 cents a share for the first quarter last year.
Revenues for the first quarter ended November 25, 2006 were $201.8 million, a decrease of 13 percent, compared to revenues of $232.3 million for the first quarter of fiscal 2006.
"While we remained solidly profitable, the motor home market continues to be challenging," said Winnebago Industries' Chairman and CEO Bruce Hertzke. "The first quarter of fiscal 2007 was negatively impacted by lower motor home deliveries, particularly of higher priced models in all of our product classes."
Other factors negatively impacting the quarter were increases in retail promotional programs, raw material commodities, health care costs, as well as general and administrative costs that resulted primarily from an increase in stock-based compensation in the first quarter of fiscal 2007. While stock-based compensation expense was higher in the first quarter as a result of accelerated vesting due to an increase of retirement eligible employees, it is anticipated to be lower for the full fiscal year 2007 than fiscal 2006. These increased expenses were partially offset by increased financial income and a reduction in the effective tax rate.
"We expect continued weakness in our seasonally slower second quarter due to a challenging market environment and reluctance on the part of our dealer partners to increase inventory during the winter months," said Hertzke.
"Dealer reaction to Winnebago Industries' new products introduced at the Recreation Vehicle Industry Association show in Louisville, Kentucky in late November was very positive," said Winnebago Industries' President Ed Barker. "The new value-priced Class A gas Winnebago Vista and Itasca Sunstar are in production now and will be arriving at our dealer locations in coming weeks. The exciting new 2008 Class A rear-engine, gas and diesel pusher Winnebago Destination and Itasca Latitude will begin arriving at our dealer locations in early spring."
As of November 25, 2006, $22.2 million remains available under the April 12, 2006 Board of Directors common stock repurchase authorization.
About Winnebago Industries
Winnebago Industries, Inc. is a leading U.S. manufacturer of motor homes, self-contained recreation vehicles used primarily in leisure travel and outdoor recreation activities. The Company builds quality motor homes under the Winnebago and Itasca brand names with state-of-the-art computer-aided design and manufacturing systems on automotive-styled assembly lines. The Company's common stock is listed on the New York, Chicago and NYSE Arca Stock Exchanges and traded under the symbol WGO. Options for the Company's common stock are traded on the Chicago Board Options Exchange.
Winnebago website |
