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Feb 29, 2020
Winnebago Q2 2020 Earnings Report
Strong sales growth continued to outperform the RV industry, with quarterly revenues increased by 45%, including robust organic growth of 13%. Reported quarterly diluted EPS of $0.51, adjusted EPS of $0.67, up 9.8% over prior year.
Key Takeaways
Winnebago Industries reported a strong second quarter in fiscal year 2020, with a 44.9% increase in revenues to $626.8 million. The company's growth was driven by robust Class B sales and another exceptional quarter from Grand Design RV. The acquisition of Newmar contributed significantly to the revenue increase.
Revenues increased 44.9% to $626.8 million compared to the prior year.
Revenues excluding Newmar increased 12.9% to $488.4 million.
Consolidated adjusted earnings per share increased 9.8% to $0.67.
North American RV retail market share is 13.2% on a trailing three-month basis through January, 2020, up 2.6 share points over the same period last year.
Winnebago
Winnebago
Winnebago Revenue by Segment
Revenue by Segment
Towable RV Revenue
CapyFin.comMotorhome RV Revenue
CapyFin.com Forward Guidance
Winnebago Industries is closely monitoring the coronavirus outbreak and its potential impact on the company's operations and end markets. The company has temporarily suspended production across all of its businesses through April 12, 2020, to prioritize the health and safety of its employees and partners. Despite the uncertain times, Winnebago remains confident in the long-term prospects of the outdoor recreation industry and is focused on activating its premium brands to accelerate market share growth when conditions improve.
Positive Outlook
- Company performed solidly in the second quarter.
- RV industry conditions have improved as demonstrated by normalized dealer inventories, a stable price environment and strong retail show attendance and sales results during the first quarter of calendar 2020.
- Portfolio is stronger and more balanced than ever, with four of the most iconic brands in the outdoor lifestyle arena – Winnebago, Grand Design, Newmar, and Chris-Craft.
- Entered the second half of our fiscal year with significant cash on hand of $122.9 million.
- Access to a credit line of $192.5 million, and the ability to leverage a highly variable cost structure.
Challenges Ahead
- Increasing risk presented by the coronavirus outbreak.
- Temporarily suspend production across each of our businesses through April 12, 2020.
- Significant change in mid-March for the demand of our products by both consumers and dealer partners.
- Very real disruption in both our internal operations and end markets.
- Industry continues to look for its footing in these uncertain times as a result of the coronavirus pandemic.
Revenue & Expenses
Visualization of income flow from segment revenue to net income