Winnebago Industries has reported financial results for the company’s first quarter fiscal 2020, showing revenues were $588.5 million, an increase of 19.2 percent compared to $493.6 million for the fiscal 2019 period.
Revenues excluding the recently acquired Newmar business were $552.8 million, representing an organic growth rate of 12 percent over the previous year period driven by strong growth in the towable segment and modest growth in the motorhome business.
Fiscal 2020 first quarter net income was $14.1 million, a decrease of 36.5 percent compared to $22.2 million in the same period last year.
“We delivered strong consolidated results for the first quarter of fiscal 2020 as we continued to make progress in transforming Winnebago Industries into a premier outdoor lifestyle company,” said Michael Happe, president and CEO. “Overall revenue growth remains strong, driven by vibrant Class B sales in our motorhome segment and another stellar quarter from Grand Design in the towable segment. These businesses are driving significant market share gains in the RV industry. Our RV retail market share is now 10.8 percent on a trailing three-month basis through October, up 1.7 share points over the prior year period and exceeding our 2020 goal of 10 percent we established in November 2017. Our results included approximately three weeks of contribution from the recently acquired Newmar business, the foremost luxury motorhome manufacturer in North America. We are extremely focused on the integration of the Newmar business and ensuring a smooth transition for Newmar’s employees, dealers, and end-customers.”
Revenues for the towable segment were $341.3 million for the first quarter, up 16.5 percent over the previous year, driven by strong unit growth in the Grand Design RV product line. Backlog decreased 22 percent, in units, compared to the previous year period reflecting an increased utilization of incremental capacity and a change in dealer ordering patterns to smaller and more frequent purchases.
In the first quarter, revenues for the motorhome segment were $225.9 million, up 24.6 percent from the previous year primarily driven by strength in the Class B line-up and the addition of Newmar revenues during the quarter. Excluding Newmar, segment revenues grew 4.9 percent over the previous year period. Backlog increased 34.2 percent, in units, compared to the previous year, due to the acquisition of Newmar and new product introductions in the Winnebago motorhome line-up, partially offset by a change in dealer ordering patterns to smaller and more frequent purchases.
“We enter fiscal 2020 with a stronger business that now includes four of the most iconic brands in the outdoor lifestyle arena – Winnebago, Grand Design, Newmar, and Chris-Craft,” said Happe. “The benefits of having an expanded and more diversified product portfolio have translated to more consistent earnings results and are driving incremental growth and market share expansion in our business.”