Winnebago fiscal 4Q profit rises on tax boost

FOREST CITY, Iowa -- Winnebago Industries Inc. said Thursday its fiscal fourth-quarter net income soared, boosted by a hefty tax benefit and higher demand for its recreational vehicles.

For the quarter ended Aug. 25, the Forrest City, Iowa-based company earned $40.9 million, or $1.41 per share, up from $3.5 million, or 12 cents per share, in the same quarter last year.

The recent quarter's results included a non-cash tax benefit of $34.3 million, while the year-ago period's included a benefit of $1.7 million. Excluding the tax benefit, Winnebago said its adjusted profit was14 cents per share for the recent quarter.

The company credited the jump in net income to an increase in motor home and towable RV deliveries and higher average selling prices for its products. Winnebago said motor home sales increased 21 percent during the quarter to 1,321. Towable sales leaped 94 percent to 695.

Revenue jumped 25 percent to $162.5 million, from $130.5 million a year ago.

President and CEO Randy Potts said a sharp increase in sales orders resulted in ramped-up production during the quarter. He said the company expects to continue to increase production during the new fiscal year to meet growing demand.

The company said it has orders for 1,473 motor homes on backlog, more than double the number last year. It has 411 backlogged towable orders, up 40 percent from last year. Meanwhile, motor home inventory at dealers has dipped about 2 percent since last year. Towable inventory rose 41 percent.

For the full fiscal year, Winnebago earned $45 million, or $1.54 per share, up from $11.8 million, or 41 cents per share, for the prior year. Revenue rose 17 percent to $581.7 million from $496.4 million.

Winnebago shares closed Wednesday at $12.20, up 65 percent since the start of the year.