Marine investments helps Winnebago Industries to record business results

Jan 4, 2022

Winnebago Industries, Inc. (NYSE: WGO), a leading outdoor lifestyle product manufacturer, has reported financial results for the Company’s Fiscal 2022 first quarter. The company reported record first quarter revenues of $1.2 billion, an increase of 46%, including robust organic growth of 38%. Record first quarter gross margin of 19.8% was an increase of 250 basis points year-over-year. Record Quarterly Diluted EPS was up 97% over the prior year and the company continued to show Market Share Gains of 13.3% for the trailing 3-months through to October.

Their new Marine Reporting Segment reflects their expanded portfolio of premier brands with Chris-Craft Boats and the recent acquisition of Barletta pontoons.

President and Chief Executive Officer Michael Happe commented, “Winnebago Industries’ strong first quarter performance builds on our sustained momentum and continues to demonstrate the remarkable growth and profitability our expanded portfolio of premier outdoor lifestyle brands can deliver. Our golden threads of quality, service and innovation continued to differentiate our brands, driving continued market share gains across our portfolio. As of October, 2021, our RV retail market share is 13.3%, reflecting an increase of 1.3 share points over the same period last year, on a trailing three-month basis per Statistical Surveys, Inc. Our outstanding team and commitment to operational excellence enabled us to deliver for consumers while simultaneously contributing to a record high consolidated gross margin of 19.8%, even in the face of ongoing supply chain constraints and increased input costs. We will continue to meet these challenges head on and work closely with our dealer partners to replenish their inventories, in a disciplined manner. This quarter also marks the first time we are reporting results for our new Marine segment. The results highlight the strength of Barletta’s unique pontoon offering and strong brand affinity, which integrated smoothly into our portfolio and has delivered on the high-growth and profitability expectations we anticipated. Overall, we see a meaningful runway for further profitable growth across our portfolio, as Winnebago Industries is well-positioned to continue to capitalize on the secular demand shift of consumers embracing the outdoor lifestyle, and provide significant value to our end consumers, dealers, employees and shareholders.”

Marine
The first quarter of Fiscal 2022 marks the first period in which the Marine segment is being reported and is the combination of Chris-Craft, acquired in June, 2018 and Barletta, acquired on August 31, 2021. Revenues for the Marine segment were $79.3 million for the first quarter, an increase of $67.4 million compared to 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. Backlog for the Marine segment was $257.2 million, an increase of $195.4 million over the prior year. Revenue and EBITDA growth, in addition to the increase in EBITDA margin and backlog, are primarily a result of the recently acquired Barletta business.

Mr. Happe continued, “In addition to our strong financial results, we bolstered our initiatives that positively impact our communities during the quarter by mobilizing resources through our Winnebago Industries Foundation to support natural disaster relief, employee hardship and dependent scholarship programs and announcing a new goal of achieving net-zero greenhouse gas emissions by 2050 as part of joining the Business Ambition for 1.5°C. We recognize that our corporate responsibilities extend outside our organization and our recently published 2021 Corporate Responsibility Report contains more information on the many ways we are doing work to help people around the globe enjoy outdoor experiences. Looking ahead, we anticipate demand for our highly desirable brands to remain elevated, a result of executing our proven strategy of focusing on quality, innovation and service.”