Winnebago Industries Reports 18.8% Revenue Decrease

Winnebago Industries, Inc. (NYSE: WGO) has reported its financial results for the fiscal 2024 second quarter ended February 24, 2024. The company's revenues for the quarter were $703.6 million, representing a decrease of 18.8% compared to the same period in fiscal 2023. Gross profit was $105.3 million, reflecting a decrease of 28.3% from the prior year.

The net loss for the quarter was $12.7 million, or $0.43 per share, which includes a charge of $32.7 million attributable to the refinancing of the company's 2025 convertible senior notes. Adjusted diluted earnings per share stood at $0.93, marking a decrease of 50.5% compared to the same period last year. The adjusted EBITDA was $49.8 million, representing a decrease of 43.7% compared to the prior year.

The company's segments also experienced declines in net revenues and adjusted EBITDA margins: The towable RV segment saw a 16.9% decrease in net revenues and a 31.8% decrease in adjusted EBITDA. The motorhome RV segment experienced a 16.2% decrease in net revenues and a 38.9% decrease in adjusted EBITDA. * The marine segment reported a 38.2% decrease in net revenues and a 69.7% decrease in adjusted EBITDA.

As of February 24, 2024, Winnebago Industries had total outstanding debt of $694.8 million and working capital of $649.0 million. The company's cash flow provided by operations was $25.2 million for the fiscal 2024 second quarter. Winnebago Industries completed a $350 million offering of convertible senior notes for refinancing 2025 maturities during the quarter, highlighting the company's strong operating performance and credit profile.

Looking ahead, Winnebago Industries announced future mid-cycle organic growth targets, including net revenues of $4.5 billion to $5.0 billion, gross margin of 18.0% to 18.5%, adjusted EBITDA margin of 11.0% to 11.5%, and free cash flow of $325 million to $375 million. The company also aims for a North American RV market share of more than 13% and a U.S. aluminum pontoon market share of 13%.

Winnebago Industries, Inc. is a leading North American manufacturer of outdoor lifestyle products, including motorhomes, travel trailers, powerboats, pontoons, and commercial community outreach vehicles. The company's common stock is listed on the New York Stock Exchange under the symbol WGO. Following these announcements, the company's shares moved 5.7%, and are now trading at a price of $69.22. Check out the company's full 8-K submission here.

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