Winnebago Industries has reported financial results for the first quarter of fiscal 2019 showing revenues were $493.6 million, an increase of 9.7 percent compared to $450 million for the fiscal 2018 period.
Gross profit was $71.0 million, an increase of 13 percent compared to $62.8 million for the fiscal 2018 period. Gross profit margin increased 40 basis points in the quarter, driven by favorable business mix due to the strong growth in the towable segment and improved margins in the motorhome segment.
Operating income was $32.6 million for the quarter, an increase of 4.6 percent compared to $31.2 million in the first quarter of last year. Fiscal 2019 first quarter net income was $22.2 million, an increase of 23.4 percent compared to $18 million in the same period last year.
“We are very pleased with the strong start to our fiscal year 2019, resulting from our upward momentum within the North American RV business and the positive integration of our new marine division,” said Michael Happe, president and CEO. “Sales growth remained robust as we continued to take overall retail market share on the RV side, and we were successful in expanding margins during the quarter, primarily driven by the continued profitability recovery within our motorhome segment. Our dual-branded approach with Winnebago and Grand Design on the RV business continues to result in a strengthened line of high-quality, versatile products that reach a broader customer base through a network of dealer partners that value our aftermarket support and commitment to their profitability.”
In the first quarter, revenues for the motorhome segment were $181.3 million, down 3.6 percent from the previous year. Segment Adjusted EBITDA was $12 million, up 144.4 percent from the prior year. Backlog decreased 23.6 percent, in dollars, versus the prior year, reflecting rental unit and new product order timing, in addition to a more challenging late fall shipment environment.
Revenues for the towable segment were $292.8 million for the first quarter, up 12.8 percent over the prior year, driven by continued strong organic unit growth across the Grand Design RV branded line and pricing. Segment Adjusted EBITDA was $30.8 million, down 7.7 percent versus the prior year.
Winnebago recorded a tax rate of 23.3 percent in the third quarter compared to a rate of 32.3 percent in the prior year. The reduction in the rate is related to the lower federal tax rate enacted in accordance with the Tax Cuts and Jobs Act.
“We are intent on building a larger, more diversified, and more profitable organization; one with a productive, healthy balance sheet and a strategic roadmap that is carefully considered and executed,” said Happe. “We remain focused on providing differentiated products and services to our customers, which we optimistically think will result in further market share accretion in our core RV business. We continue to believe that our overall Winnebago and Grand Design branded field inventory levels are appropriate, both in size and age, especially in relation to our momentum and the addition of new products entering the market. We are also pleased with the integration of our new Chris-Craft business into the overall portfolio, as a credible first step in uniquely positioning Winnebago Industries as a premium outdoor lifestyle products manufacturer.”
