Winnebago Industries reported financial results for the third quarter of fiscal 2015 ended May 30, 2015. Revenues were $266.5 million, an increase of 7.6%, versus $247.7 million for the fiscal 2014 period.
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Operating income was $16.1 million for the current quarter compared to $15.6 million in the third quarter of last year. fiscal 2015 third quarter net income was $11.5 million, or $0.43 per diluted share, versus $11.4 million, or $0.42 per diluted share, in the same period last year.
Gross margin improved on a sequential quarter basis as motorized manufacturing inefficiencies moderated. However, on a year-over-year basis gross margin was slightly lower, a result of costs related to inefficiencies, partly offset by improved towable results.
Operating expenses increased in the third quarter of fiscal 2015 compared to the third quarter of fiscal 2014 and included $0.8 million of incremental general and administrative expenses associated with two previously disclosed strategic initiatives related to Enterprise Resource Planning (ERP) implementation and strategic sourcing, as well as $0.5 million for the impairment of fixed assets in relation to the Company’s corporate plane, which is being held for sale.
Additionally, the fiscal 2014 third quarter included a gain on life insurance of $0.7 million.
Compared to the same period of last year, motorhome revenues increased 7.4% in the fiscal 2015 third quarter, primarily a result of motorhome unit shipment growth of 11.4%, partly offset by lower average selling price (ASP) of 3.1%.
In the fiscal 2015 period, motorized unit volume growth was partly attributable to a greater level of units recognized as revenue from the Apollo rental program compared to the fiscal 2014 third quarter, as the 2015 rental program did not impose a repurchase obligation on Winnebago.
In the fiscal 2014 third quarter, a majority of the Apollo rental units were recognized as operating leases due to the repurchase obligation. Year over year, in the fiscal 2015 third quarter, towable revenue grew 15.9%, comprised of a 12.4% increase in ASP and 2.1% growth in unit shipments. ■