Winnebago reported financial results for the company’s third quarter of fiscal 2017, revenues of which were $476.4 million – an increase of 75.1 percent compared to $272.1 million for last year.
Gross profit was $70.8 million, an increase of 134.0 percent compared to $30.3 million for the Fiscal 2016 period as gross profit margins expanded 380 basis points driven by a favorable product mix, including the addition of Grand Design products within the overall sales mix.
Operating income was $34.9 million for the current quarter, an improvement of 69.3 percent compared to $20.6 million in the third quarter of last year. Fiscal 2017 third quarter net income was $19.4 million, or $0.61 per diluted share, an increase of 34.3 percent compared to $14.4 million, or $0.53 per diluted share, in the same period last year. Growth in EPS was impacted by the recognition of $10.2 million of amortization expense during the quarter associated with the Grand Design acquisition. Consolidated adjusted EBITDA was $47.3 million compared to $17.7 million last year, which is an increase of 167.2 percent.
President and Chief Executive Officer Michael Happe said, “Our third quarter results continued to reflect the journey we are on here at Winnebago Industries to build a larger, more profitable, full-line RV portfolio,” commented Michael Happe, Winnebago president and CEO. “The performance of our new Grand Design division and the associated integration activities continue to meet and even exceed our expectations, and are certainly accelerating our diversification within the still-growing North American RV industry.”
Motorized Revenues for the motorized segment were $241.7 million, down 2.0 percent from the previous year.
Towable Revenues for the Towable segment were $234.7 million for the quarter, up $209.3 million over the prior year, driven by the addition of $196.9 million in revenue from the Grand Design acquisition. Winnebago also saw continued strong organic growth in Winnebago-branded towable products in which revenues are up 49 percent compared to last year.
“Solid macroeconomic fundamentals, combined with a surge of younger demographics embracing the outdoor lifestyle, as well as expanding use cases for RVs, suggest continued runway for increasing RV shipments and retail,” said Happe. “The strong growth in the towable segment validates our full-line strategy and demonstrates our momentum, and we are pleased to note healthy and increasing backlog in both the motorized and towable segments this quarter.”