Winnebago Industries reported financial results for the company’s fourth quarter and full year Fiscal 2016, less than two weeks after announcing it has signed a purchase agreement to acquire Grand Design.
Revenue for the fourth quarter was $263.3 million, an increase of 4.9 percent, compared to $251 million for the 2015 period. Operating income was $18.9 million for the current quarter, an improvement of 11.7 percent from the $16.9 million reported in the fourth quarter of last year.
Fiscal 2016 fourth quarter net income was $13.1 million, an increase of 12.2 percent compared to $11.7 million in the same period last year.
Fourth-quarter Fiscal 2016 consolidated revenues improved year over year due primarily to higher shipments of 3 percent in motorized units and 57.5 percent in towables.
Current quarter revenues were impacted negatively by $5.4 million as the company exited the sale of aluminum extrusions to customers during the year.
Fourth-quarter gross margin improved year over year, primarily due to lower raw material costs resulting from the company’s strategic sourcing initiative, as well as favorable product mix and lower warranty expense.
“Fourth-quarter revenues increased year over year, driven by continued strong growth in our towables business as well as modest improvement in motorized shipments,” President and Chief Executive Officer Michael Happe said.
Full Year Fiscal 2016 Results
Year-over-year revenue of $975.2 million decreased slightly from $976.5 million during 2015.
Higher shipments of 2.3 percent in motorized units and 57.3 percent in towables was offset by the company’s exit of aluminum extrusion sales to outside customers and lower average selling prices.
Operating income was $65.7 million for Fiscal 2016, compared to $59.4 million in 2015. Net income was $45.5 million, versus $41.2 million. Gross margin improved year over year, primarily due to lower raw material costs resulting from the Company’s strategic sourcing initiative, as well as favorable product mix, partially offset by higher warranty expense.
On a year over year basis the towable business experienced substantial increases in retail registrations that were up over 35 percent. The motorized retail growth rate was essentially flat during Fiscal 2016 compared to Fiscal 2015.