Winnebago Industries reports a record first quarter of its fiscal year.
The Forest City-based outdoor lifestyle product manufacturer reports revenue topped $493 million, an increase of almost 10% compared to last year. Winnebago CEO Michael Happe says the company is focused on continuing the momentum established in the previous fiscal year.
Happe says, “We now look to 2019 and this fiscal year for more of the same, sales results that surpass those of the industries we compete in, a focus on driving higher levels of profitability and asset utilization, and an appetite to grow in new ways that position Winnebago Industries and its brands for sustained future success.” Happe says the company is pleased with the strong start to the fiscal year, pushed by the popularity of the company’s line of towable recreational vehicles.
“We are pleased that Winnebago Industries’ overall revenues continue to grow organically and at a healthy pace, at a time when the RV industry is working to normalize its overall field inventory levels in relation to a more moderate retail pace,” Happe says. The company has made good progress, he says, in increasing its profitability.
“Consolidated gross profit margin increased 40 basis points in the quarter, driven by favorable business mix due to continued growth in the towable segment and improved margins in the motorized segment,” Happe says. “Given the solid top-line growth, coupled with margin expansion and improved operational discipline, cash flow remained strong.”
The cash flow grew 84% over the last year, he says, while the company was able to reduce debt by 38% during the quarter. Happe says the company is now seeing the benefit of a full quarter of sales under the company’s new Chris-Craft division after the company purchased the recreational boat builder earlier this year.
“Chris-Craft sales in the first quarter were strongly positive in shipments and retail versus the same period a year ago,” he says, “and they’re performing on pace with the financial plan we modeled for the first full fiscal year within Winnebago Industries.” Net income for the first quarter was $22.2 million, an increase of 23% compared to the same period last year.
(By Bob Fisher, KRIB, Mason City)