Winnebago Industries Inc. today (Oct. 16) reported double-digit gains in fourth-quarter revenue and earnings, boosted by continued strength in its motorhome division coupled with improved profitability from the company’s towable unit.
Revenue for the fiscal 2014 fourth quarter, ended Aug. 30, increased 14.8% to $245.9 million versus $214.2 million for the fiscal 2013 fourth quarter. During the period, net income grew 21.8% to $12.9 million and diluted earnings per share increased 26.3% to 48 cents from 38 cents while operating income rose 19.2% to $18.3 million.
Revenues for the 52-weeks of fiscal 2014 were $945.2 million, an increase of 17.7% from $803.2 million for the 53-weeks of fiscal 2013. For the year, operating income rose 43.9% to $63.9 million, net income grew 41% to $45.1 million, and diluted earnings per share increased 45.1% to $1.64 from $1.13.
The Forest City, Iowa-based builder noted that fourth-quarter earnings improved year-over-year primarily as a result of higher motorhome unit sales, a significant improvement in towables profitability and operating expense leverage.
Motorhome revenue grew 15% in the quarter driven by motorhome unit growth of 25.1%, partially offset by lower motorhome average selling prices (ASP) of 8.4% as a result of product mix. Compared to the same periods as last year, the company’s motorhome retail registrations increased 17% in the fourth quarter and 28% on a rolling 12-month basis, based on internally reported retail information.
Towables operating income improved by $1.4 million in the fourth quarter and was positively impacted by towables revenue growth of 8.6%, comprised of a 9.9% improvement in ASP and an 0.8% increase in units.
Chairman, CEO and President Randy Potts commented, “Demand for our products resulted in industry-leading unit volume growth and market share gains for Winnebago motorized products through the first seven months of calendar 2014, according to Statistical Surveys Inc. The motorized growth and profitability within our towables business contributed to an outstanding fiscal year for the company resulting in year-over-year earnings per share growth of 45%. With a strong product lineup and increasing confidence in our towables group, we believe we are well positioned to leverage future growth opportunities.”
CFO Sarah Nielsen added, “We generated $13 million in operating cash flow during the fourth quarter primarily as a result of improved profitability. We did experience an increase in receivables of $13.4 million in the fourth quarter due to a greater level of units in transit, however, this was offset by non-cash expenses and other changes in working capital. With no debt and nearly $58 million in cash, our balance sheet is very strong, supporting future growth opportunities as well as potential stock repurchases and our recently announced quarterly cash dividend.”
Winnebago will conduct a conference call to discuss results at 10 a.m. EDT today.
To view a complete earnings report click Q4 2014 Earnings Release.