[ACCESSWIRE]
Upcoming AWS Coverage on Harley-Davidson
LONDON, UK / ACCESSWIRE / January 3, 2017 / Active Wall St. announces its post-earnings coverage on Winnebago Industries, Inc. (NYSE: WGO). The Company released its first quarter fiscal 2017 financial results on December 21, 2016. The recreational vehicle manufacturer's beat sales and earnings expectations. Register with us now for your free membership at: http://www.activewallst.com/register/.
One of Winnebago Industries' competitors within the Recreational Vehicles space, Harley-Davidson, Inc. (NYSE: HOG), is estimated to report earnings on January 26, 2017. AWS will be initiating a research report on Harley-Davidson in the coming days.
Today, AWS is promoting its earnings coverage on WGO; touching on HOG. Get our free coverage by signing up to:
http://www.activewallst.com/registration-3/?symbol=WGO
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Earnings Reviewed
For the three months ended November 26, 2016, Winnebago reported revenues of $245.3 million, an increase of 14.5%, compared to $214.2 million for Q1 FY16. The Company's consolidated revenues improved y-o-y primarily due to strong growth in the Company's Towable business - which benefited from three weeks of sales from Grand Design, contributing $25.8 million during the reported quarter, as well as continued organic growth in the Winnebago-branded Towable business, slightly offset by a modest decline in Motorized revenues. The Company's revenue figures smashed market expectations of $229 million.
For Q1 FY17, Winnebago's operating income was $18.4 million, an improvement of 44.2% compared to $12.8 million in Q1 FY16. The Company's Q1 FY17 net income totaled $11.7 million, or $0.42 per diluted share, an increase of 37.2% compared to $8.6 million, or $0.32 per diluted share, in the same period last year. The earnings results outperformed Wall Street's expectations of $0.36 per share.
President and Chief Executive Officer Michael Happe commented:
"We are off to a strong start in 2017 as we continue to implement our plan to transform Winnebago, competing more effectively in the market and delivering increased profitability. We successfully completed the acquisition of Grand Design, significantly expanding our penetration within the fast-growing Towable market and creating a broader and more balanced portfolio well-positioned to capitalize on the opportunities across the RV market. Looking ahead, we are excited to continue the momentum we have achieved in building Winnebago into a true full-line RV leader."
Segment Results
During Q1 FY17, Winnebago's motorized segment generated revenue of $195.1 million, down 1.1% from the previous year, reflecting the impact of the Company's exit from its aluminum extrusion business which contributed $5 million in revenue in Q1 FY16. The segment's adjusted EBITDA was $10.0 million, down 14.6% from Q1 FY16, primarily driven by incrementally higher expenses related to workers compensation and costs associated with ramp-up of the Company's Junction City, Oregon production facility.
Towable
For Q1 FY17, revenues from Winnebago's Towable segment were $50.2 million, up 197.2% from the previous year, driven by the addition of $25.8 million in revenue from the Grand Design acquisition and strong organic growth from Winnebago-branded Towable products. The segment's adjusted EBITDA was $4.7 million, up 340% from the prior year.
Balance Sheet
As of November 26, 2016, Winnebago had a debt balance of $342.3 million which consisted of $353 million of debt and net of debt issuance costs of $10.7 million and working capital of $144.9 million. The Company's debt to equity ratio was 86.1% and the current ratio was 2.1 as of the end of Q1 FY17.
In a separate press release on December 14, 2016, Winnebago's Board of Directors approved a quarterly cash dividend of $0.10 per share payable on January 25, 2017, to common stockholders of record at the close of business on January 11, 2017.
Stock Performance
Last Friday, the stock closed the trading session at $31.65, marginally falling 0.16% from its previous closing price of $31.70. A total volume of 367.26 thousand shares have exchanged hands. Winnebago Industries' stock price rallied 34.78% in the past three months, 38.72% in the last six months, and 62.01% in the previous twelve months. Furthermore, since the start of the year, shares of the company have surged 62.01%. The stock is trading at a PE ratio of 17.71 and has a dividend yield of 1.26%.
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