Winnebago’s first quarter profits exceed analysts’ targets
Winnebago Industries reported profits up 73.5% in the first fiscal quarter ended Nov. 27 thanks to a 46% gain in sales. The results easily exceeded Wall Street’s targets.
Results for the first quarter of fiscal 2022
Revenue for the first quarter of fiscal 2022 ended November 27, 2021 reached a record $ 1.2 billion, an increase of 45.7% from the $ 793.1 million for the period. 2021. Net sales excluding the recently acquired Barletta business were $ 1.1 billion, representing an organic growth rate of 37.5% compared to the period of the previous year, driven by a Continued strong consumer demand and price increases related to current and expected increases in the costs of materials and components. Gross margin was $ 229.4 million, an increase of 67.4% from $ 137.0 million for the period of fiscal 2021. Gross profit margin increased by 250 points base during the quarter to hit a record 19.8%, driven by operating leverage, price increases, productivity initiatives and a favorable segment mix, partially offset by higher material costs and components. Operating income, which includes $ 3.4 million of acquisition-related costs and $ 4.6 million of incremental amortization of intangible assets related to the Barletta acquisition, was 146, $ 4 million for the quarter, an increase of 72.2% from $ 85.0 million for the first quarter of last year. year. Fiscal 2022 first quarter net income, which includes $ 6.4 million of the conditional consideration fair value adjustment related to the Barletta acquisition, was $ 99.6 million , an increase of 73.5% from $ 57.4 million in the previous year quarter. Reported diluted earnings per share was $ 2.90, compared to reported diluted earnings per share of $ 1.70 for the same period last year. Adjusted diluted earnings per share was $ 3.51, an increase of 97.2% over adjusted diluted earnings per share of $ 1.78 for the same period last year. Consolidated Adjusted EBITDA was $ 167.2 million for the quarter, compared to $ 89.3 million last year, an increase of 87.3%.
Adjusted EPS of $ 3.51 easily beat Wall Street’s consensus estimate of $ 2.26. Sales of $ 1.2 billion topped Wall Street’s estimate of $ 1.03 billion.
President and CEO Michael Happe said, âWinnebago Industries’ strong first quarter performance builds on our sustained momentum and continues to demonstrate the remarkable growth and profitability that our expanded portfolio of style brands from. Leading outdoor living can offer. Our golden threads of quality, service and innovation have continued to differentiate our brands, resulting in continued market share gains across our portfolio. In October 2021, our RV retail market share was 13.3%, reflecting a 1.3 point increase in market share compared to the same period last year, on a three-month basis rolling by Statistical Surveys, Inc. Our exceptional team and commitment to operational excellence have enabled us to deliver for consumers while simultaneously contributing to a record Consolidated Gross Margin of 19.8%, even in the face of the ongoing stresses of business. supply chain and rising input costs. We will continue to meet these challenges head-on and work closely with our partner dealers to replenish their stocks in a disciplined manner. This quarter also marks the first time that we have published results for our new Marine segment. The results highlight the strength of Barletta’s unique pontoon offering and its strong affinity with the brand, which has integrated perfectly into our portfolio and met the high growth and profitability expectations we anticipated. Overall, we see significant lead for profitable growth across our portfolio as Winnebago Industries is well positioned to continue to capitalize on the secular shift in demand from consumers embracing the outdoor lifestyle and providing significant value to our end consumers, dealers, employees, and shareholders.
Revenue from the Towable segment was $ 651.0 million for the first quarter, up 43.1% year over year, mainly driven by unit growth due to continued strong demand for end consumers and price increases across the segment. Segment adjusted EBITDA was $ 112.1 million, up 77.5% from the prior year period. Adjusted EBITDA margin of 17.2% increased 330 basis points year over year and 230 basis points sequentially, mainly due to price increases above expected cost inflation materials and components and the operating lever. Backlog hit a record $ 1.9 billion, up 116.6% year-over-year and 10.0% sequentially, driven by continued strong consumer demand combined with low levels of dealer inventory and pricing actions.
Motorhome segment revenue for the first quarter was $ 421.5 million, up 30.7% from a year ago, driven by increased sales of Class B units and Class A and price increases across the segment. Segment adjusted EBITDA was $ 50.2 million, up 65.3% from the prior year. Adjusted EBITDA margin of 11.9% increased 250 basis points year over year and 70 basis points sequentially, driven by operational leverage, pricing and productivity initiatives , partially offset by inflation in the costs of materials and components. The backlog hit a record $ 2.4 billion, up 41.2% from a year ago and 4.7% sequentially, as dealers continue to experience low levels of sales. dealer stocks and strong consumer demand.
The first quarter of fiscal 2022 marks the first period in which this segment is presented and corresponds to the combination of Chris-Craft, acquired in June 2018 and Barletta, acquired on August 31, 2021. Revenues from the Marine segment are amounted to $ 79.3 million for the first quarter, an increase of $ 67.4 million over the same period last year. Segment Adjusted EBITDA was $ 10.6 million, an increase of $ 9.7 million over the prior year and Adjusted EBITDA margin was 13.3%, an increase of 610 basis points. The Marine segment backlog was $ 257.2 million, an increase of $ 195.4 million from the previous year. The growth in revenue and EBITDA, in addition to the increase in the EBITDA margin and the backlog, results mainly from the recently acquired Barletta business.
Balance sheet and cash flow
As at November 27, 2021, the Company’s total debt outstanding was $ 532.7 million ($ 600.0 million debt, net of the convertible note discount of $ 56.7 million. and net of debt issuance costs of $ 10.5 million) and working capital of $ 502.5 million. Cash flow from operations was $ 56.5 million in the first quarter of fiscal 2022 and compares favorably with cash outflows of $ 2.7 million last year.
Quarterly cash dividend and share buyback
On December 15, 2021, the board of directors of the company approved a quarterly cash dividend of $ 0.18 per share payable on January 26, 2022 to common shareholders of record at the close of business on January 12, 2022. This is in accordance with the previous dividend of $ 0.18 per share and represents an increase of 50%, or $ 0.06 per share, from the dividend of $ 0.12 per share approved in December 2020. During the first quarter, Winnebago Industries completed share buybacks totaling $ 19.6 million.
Happe continued, âIn addition to our strong financial results, we strengthened our initiatives that positively impact our communities during the quarter by mobilizing resources through our Winnebago Industries Foundation to support disaster relief. nature, employee hardship and dependency grant programs and announcing a new goal of achieving zero net greenhouse gas emissions by 2050 as part of adherence to Business Ambition 1, 5 Â° C. We recognize that our corporate responsibilities extend outside of our organization and our recently released 2021 Corporate Responsibility Report contains more information on the many ways we are working to help people around the world to enjoy outdoor experiences. Looking ahead, we expect demand for our highly desirable brands to remain high as a result of executing our proven strategy of focusing on quality, innovation and service. “
Photo courtesy of Winnebago