Core Insights - Chris-Craft has launched the Sportster 25, a new boat model that combines modern design with classic styling, priced at $149,950 [1][5]. Product Features - The Sportster 25 features ample seating, a sleek frameless windshield, and a variety of gelcoat hull side color options for personalization [2]. - The interior includes a vinyl-wrapped console, glossy teak accents, and a custom user interface for easy access to all systems [2]. - It is equipped with a premium audio package featuring custom JL Audio speaker grills exclusive to Chris-Craft [2]. - The boat offers dual reversible helm seats, an expansive aft sun pad with under-seat storage, and a full beam swim platform with a pull-out swim step [2][7]. - Fuel capacity is 60 gallons and freshwater capacity is 13 gallons, with power options ranging from 300 to 380 horsepower [5]. Company Background - Chris-Craft, established in 1874, is headquartered in Sarasota, Florida, and is known for its craftsmanship and quality in the boat manufacturing industry [6]. - The company is a subsidiary of Winnebago Industries, which has been in operation for 66 years, focusing on innovative outdoor lifestyle products [6].

SARASOTA, Fla., July 02, 2024 (GLOBE NEWSWIRE) -- Chris-Craft, America's Boatbuilder Since 1874, today announced its newest innovation, the Sportster 25. The brand's latest design combines a modern flair with classic Chris-Craft styling and is competitively priced, starting at $149,950. The boat has a fuel capacity of 60 gallons and a freshwater capacity of 13 gallons. Power offerings range from 300 to 380 horsepower. Top options include a bimini or a power-folding top controlled at the helm. With ample sea ...

Industry Overview - The recreational vehicle (RV) industry experienced significant growth during 2020 and 2021 but faced a downturn in 2022 due to economic uncertainties, with RV sales nearly halving from their peak in 2021 [2] - Motorhomes and towable trailers had their worst performance in over a decade in 2023, influenced by macroeconomic factors such as elevated interest rates and persistent inflation [2] Company Performance: Winnebago - Winnebago Industries (WGO) missed fiscal third-quarter 2024 earnings and revenue estimates due to lower unit sales amid soft consumer sentiment, with a bleak near-term outlook for its motorhome RV and marine segments [3][4] - The company reported a significant reduction in order backlog, indicating weak industry demand and leading to further destocking, while its market share has declined amid intensified competition [4] - Operating expenses, particularly in selling, general and administrative (SG&A), have risen relative to revenues, further squeezing operating profits [4] Financial Health - Despite weak results, Winnebago maintains a strong balance sheet with high liquidity and manageable leverage, continuing to return value to shareholders through dividends and share buybacks [5] - The company faces challenges with excess inventory levels leading to elevated discounts, which have negatively impacted gross margins, falling to 15%, a decrease of 180 basis points year over year [13] Valuation and Market Sentiment - Winnebago's shares have declined approximately 19% over the past year and are currently trading at a 52-week low of $51.89, with a year-to-date decline of 29% [9][10] - The stock trades at a price/earnings ratio of 8.18, above its 5-year low of 4.16, raising concerns about the justification of this premium given the company's declining sales, profits, and market share [15] - The Zacks Consensus Estimate for WGO's fiscal 2024 sales and earnings implies a year-over-year decline of 13% and 43%, respectively, indicating a loss of analyst confidence [19]

year. VAL Winnebago Industries Inc (WGO) Price % Change SPDR® S&P 500® ETF Trust (SPY) Price % Change -24.88% 14.47% 15.00% Jan '24 Feb '24 Mar "24 Apr "24 May '24 Jun '24 Seeking AlphaQ Jun 24, 2024, 1:48 PM EDT Powered by YC HARTS Data by YCharts Quarterly results Revenues If we break down the results into three segments, namely towable RV, motorhome RV and manine, we can see that the marine segment has had the worst performance compared to the prior year. While revenues in the towable RV segment have rem ...

Core Insights - Winnebago Industries reported adjusted earnings of $1.13 per share for Q3 fiscal 2024, missing the Zacks Consensus Estimate of $1.30 and reflecting a 46.9% year-over-year decline [1] - The company's revenues for the quarter were $786 million, also missing the Zacks Consensus Estimate of $800 million and down 12.7% year over year [1] Segmental Performance - **Towable RV**: Revenues increased by 0.6% year over year to $386.3 million, driven by a rise in unit volume, but missed the estimate of $388.9 million. Total deliveries were 9,263 units, up 6.3% year over year, exceeding the estimate of 8,667 units. Adjusted EBITDA declined 22% to $41.9 million, although it surpassed the estimate of $31.8 million. The segment's backlog was $153.1 million (4,734 units), down 35.1% [2] - **Motorhome RV**: Revenues fell 20.1% year over year to $299 million due to decreased unit volume and high discounts, missing the estimate of $357.9 million. Total deliveries were 1,680 units, down 21.2% year over year, and also missed the estimate of 1,927 units. Adjusted EBITDA was $13.4 million, down 50.2%, missing the estimate of $21.3 million. The backlog was $354.9 million (1,596 units), down 55.7% [3] - **Marine**: Revenues decreased 31.8% year over year to $87.9 million, primarily due to lower volume, and missed the estimate of $89 million. Total deliveries were 1,127 units, down 28.9% year over year, but exceeded the estimate of 1,082 units. Adjusted EBITDA was $8.5 million, down 50.9% year over year, but beat the estimate of $7.5 million. The backlog for the Marine segment was $62 million (642 units), down 57.6% [4] Financials - As of May 25, 2024, Winnebago had cash and cash equivalents of $318.1 million. Long-term debt increased to $636.4 million from $592.4 million as of August 26, 2023. The company approved a dividend of 31 cents per share, payable on June 26, 2024, to shareholders of record as of June 12, 2024 [5]

For the quarter ended May 2024, Winnebago Industries (WGO) reported revenue of $786 million, down 12.7% over the same period last year. EPS came in at $1.13, compared to $2.13 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $800.03 million, representing a surprise of -1.75%. The company delivered an EPS surprise of -13.08%, with the consensus EPS estimate being $1.30. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wa ...

PART I [Item 1. Consolidated Financial Statements](index=4&type=section&id=Item%201.%20Consolidated%20Financial%20Statements) Winnebago Industries' unaudited consolidated financial statements show decreased revenues and net income, stable balance sheet, and debt restructuring [Consolidated Statements of Income](index=4&type=section&id=Consolidated%20Statements%20of%20Income) Net revenues and net income significantly decreased in Q3 and the nine-month period of fiscal 2024, partly due to a $32.7 million loss on note repurchase Consolidated Statements of Income Highlights (in millions, except per share data) | Metric | Three Months Ended May 25, 2024 | Three Months Ended May 27, 2023 | Nine Months Ended May 25, 2024 | Nine Months Ended May 27, 2023 | | :--- | :--- | :--- | :--- | :--- | | **Net revenues** | $786.0 | $900.8 | $2,252.6 | $2,719.7 | | **Gross profit** | $118.2 | $151.4 | $339.3 | $458.6 | | **Operating income** | $43.5 | $80.5 | $118.0 | $243.2 | | **Net income** | $29.0 | $59.1 | $42.1 | $172.1 | | **Diluted EPS** | $0.96 | $1.71 | $1.40 | $4.95 | - A loss on note repurchase of **$32.7 million** was recorded in the nine months ended May 25, 2024, which was not present in the prior year, significantly impacting income before taxes[7](index=7&type=chunk) [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) Total assets slightly decreased, while total liabilities increased due to long-term debt changes, leading to a decrease in total shareholders' equity Consolidated Balance Sheet Summary (in millions) | Metric | May 25, 2024 (Unaudited) | August 26, 2023 | | :--- | :--- | :--- | | **Total current assets** | $983.7 | $996.7 | | **Total assets** | $2,425.0 | $2,432.4 | | **Total current liabilities** | $401.8 | $396.0 | | **Total liabilities** | $1,106.6 | $1,064.3 | | **Total shareholders' equity** | $1,318.4 | $1,368.1 | [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities decreased due to lower profitability, while net cash used in investing activities significantly decreased, and financing activities remained stable Cash Flow Summary (in millions) | Activity | Nine Months Ended May 25, 2024 | Nine Months Ended May 27, 2023 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $103.2 | $156.4 | | **Net cash used in investing activities** | $(36.4) | $(154.4) | | **Net cash used in financing activities** | $(58.6) | $(58.3) | | **Net increase (decrease) in cash** | $8.2 | $(56.3) | - Financing activities in the first nine months of fiscal 2024 included the repurchase of **$240.7 million** of 2025 Convertible Notes, funded by the issuance of new 2030 Convertible Notes, resulting in a net cash inflow from these specific transactions[10](index=10&type=chunk)[79](index=79&type=chunk) [Notes to Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail accounting policies, segment performance, and debt refinancing activities, including new convertible notes issuance and repurchase, resulting in a significant loss Segment Net Revenues (in millions) | Segment | Nine Months Ended May 25, 2024 | Nine Months Ended May 27, 2023 | | :--- | :--- | :--- | | Towable RV | $1,001.8 | $1,073.9 | | Motorhome RV | $971.8 | $1,242.4 | | Marine | $245.0 | $373.3 | Segment Adjusted EBITDA (in millions) | Segment | Nine Months Ended May 25, 2024 | Nine Months Ended May 27, 2023 | | :--- | :--- | :--- | | Towable RV | $101.8 | $129.4 | | Motorhome RV | $60.7 | $119.6 | | Marine | $20.1 | $50.2 | - On January 23, 2024, the company issued **$350.0 million** of 3.25% unsecured convertible senior notes due 2030. Proceeds were used to repurchase **$240.7 million** of the existing 1.5% convertible notes due 2025[61](index=61&type=chunk)[79](index=79&type=chunk) - The effective tax rate for the nine months ended May 25, 2024, was **34.5%**, a significant increase from **23.4%** in the prior year, primarily due to the non-deductible loss on the note repurchase[96](index=96&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes declining revenues and profitability to challenging macroeconomic conditions and softened consumer demand, while detailing segment performance and inventory management - The business is challenged by macroeconomic conditions like inflation and elevated interest rates, leading to lower consumer spending and reduced short-term demand for RV and marine products[104](index=104&type=chunk) - Dealers are exercising caution in managing inventory levels, but the company anticipates that as consumer demand stabilizes, ordering patterns will also stabilize[104](index=104&type=chunk) [Results of Operations - Three Months Ended May 25, 2024](index=26&type=section&id=Results%20of%20Operations%20-%20Three%20Months%20Ended%20May%2025%2C%202024) Q3 2024 saw consolidated net revenues and gross profit margin decline, with varied segment performance including a slight Towable RV revenue increase and significant Motorhome/Marine declines Q3 2024 vs Q3 2023 Consolidated Performance (in millions) | Metric | Q3 2024 | Q3 2023 | % Change | | :--- | :--- | :--- | :--- | | Net revenues | $786.0 | $900.8 | (12.7)% | | Gross profit | $118.2 | $151.4 | (22.0)% | | Operating income | $43.5 | $80.5 | (46.0)% | | Net income | $29.0 | $59.1 | (51.0)% | Q3 2024 Segment Revenue & Adjusted EBITDA (in millions) | Segment | Net Revenues | % Change (YoY) | Adjusted EBITDA | % Change (YoY) | | :--- | :--- | :--- | :--- | :--- | | Towable RV | $386.3 | +0.6% | $41.9 | (22.0)% | | Motorhome RV | $299.0 | (20.1)% | $13.4 | (50.2)% | | Marine | $87.9 | (31.8)% | $8.5 | (50.9)% | [Results of Operations - Nine Months Ended May 25, 2024](index=29&type=section&id=Results%20of%20Operations%20-%20Nine%20Months%20Ended%20May%2025%2C%202024) Nine-month fiscal 2024 consolidated net revenues and net income significantly decreased, impacted by a note repurchase loss, with sharp revenue declines and reduced backlogs across segments YTD FY2024 vs YTD FY2023 Consolidated Performance (in millions) | Metric | YTD FY2024 | YTD FY2023 | % Change | | :--- | :--- | :--- | :--- | | Net revenues | $2,252.6 | $2,719.7 | (17.2)% | | Gross profit | $339.3 | $458.6 | (26.0)% | | Operating income | $118.0 | $243.2 | (51.4)% | | Net income | $42.1 | $172.1 | (75.5)% | YTD FY2024 Segment Revenue & Backlog (in millions) | Segment | Net Revenues | % Change (YoY) | Backlog (Dollars) | % Change (YoY) | | :--- | :--- | :--- | :--- | :--- | | Towable RV | $1,001.8 | (6.7)% | $153.1 | (35.1)% | | Motorhome RV | $971.8 | (21.8)% | $354.9 | (55.7)% | | Marine | $245.0 | (34.4)% | $62.0 | (57.6)% | [Analysis of Financial Condition, Liquidity, and Resources](index=33&type=section&id=Analysis%20of%20Financial%20Condition%2C%20Liquidity%2C%20and%20Resources) The company maintains strong liquidity with substantial cash and an undrawn credit facility, while also executing share repurchases and approving quarterly dividends - As of May 25, 2024, the company had **$318.1 million** in cash and cash equivalents and a fully available **$350.0 million** ABL Credit Facility[144](index=144&type=chunk) - In the nine months ended May 25, 2024, the company repurchased approximately **989,000 shares** for **$60.0 million**. As of the end of the period, **$240.0 million** remained available under the share repurchase authorization[148](index=148&type=chunk) - On May 15, 2024, the Board of Directors approved a quarterly cash dividend of **$0.31 per share**[149](index=149&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=35&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate exposure, currently minimal due to an undrawn ABL Credit Facility, with deferred compensation plan risk borne by participants - The company's ABL Credit Facility is its only floating-rate debt instrument and was undrawn as of May 25, 2024, minimizing interest rate risk[156](index=156&type=chunk) [Item 4. Controls and Procedures](index=35&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of May 25, 2024, with no material changes to internal control over financial reporting - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of the evaluation date, May 25, 2024[157](index=157&type=chunk) - No changes in internal control over financial reporting occurred during the third quarter of Fiscal 2024 that have materially affected, or are reasonably likely to materially affect, internal controls[158](index=158&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=37&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in routine legal proceedings not expected to materially adversely affect its financial position, results of operations, or liquidity - The company is involved in various legal proceedings considered ordinary and routine, which are not expected to have a material adverse effect on its financial condition[91](index=91&type=chunk)[160](index=160&type=chunk) [Item 1A. Risk Factors](index=37&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors were reported since the last Annual Report on Form 10-K - No material changes to risk factors were reported since the last Annual Report on Form 10-K[161](index=161&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=37&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q3 2024, the company repurchased **319,523 shares** for **$62.85 per share**, as part of its **$350.0 million** share repurchase program with **$240.0 million** remaining Q3 2024 Stock Repurchases | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | 2/25/24 - 3/30/24 | 357 | $72.01 | | 3/31/24 - 4/27/24 | — | — | | 4/28/24 - 5/25/24 | 319,166 | $62.84 | | **Total** | **319,523** | **$62.85** | - As of May 25, 2024, **$240.0 million** remained available for repurchase under the board-authorized program[162](index=162&type=chunk) [Item 5. Other Information](index=37&type=section&id=Item%205.%20Other%20Information) No director or officer adopted, modified, or terminated a Rule 10b5-1 trading arrangement during the quarter ended May 25, 2024 - No director or officer adopted, modified, or terminated a Rule 10b5-1 trading arrangement during the quarter[163](index=163&type=chunk)

Financial Performance - Revenue decreased by 13% compared to F23 Q3, primarily due to operational efficiency challenges[14, 21] - Gross margin decreased by 180 bps compared to F23 Q3, influenced by higher warranty expenses[32] - Adjusted EBITDA decreased by 50% and Adjusted EBITDA margin decreased by 270 bps compared to F23 Q3, due to lower unit sales and higher discounts[38] - Adjusted earnings per share decreased by 46.9% compared to F23 Q3[106] - The company returned more than $29 million to shareholders through share repurchases and dividends in Q3[6] Segment Results - Towable RV segment revenue decreased, and Adjusted EBITDA decreased by 22% with a 310 bps margin decrease compared to F23 Q3[48, 49] - Motorhome RV segment revenues increased by 1% compared to F23 Q3, but Adjusted EBITDA decreased by 32% with a 370 bps margin decrease[50, 56, 107] - Marine segment revenues decreased by 32% compared to F23 Q3, and Adjusted EBITDA decreased by 51% with a 370 bps margin decrease[56] Market Trends and Outlook - North America RV industry retail sales show varied changes vs the previous year, with some months experiencing declines of up to -46%[7] - Backlog decreased 35% vs F23 Q3 due to a cautious dealer network[37] - The company anticipates industry-wide CY 2024 wholesale RV shipments of 330,000 - 335,000 units[25] Market Share - Barletta continues to gain market share in the U S Aluminum Pontoon category, growing to double digits in the latest 3- and 6-month periods[23] - Motorhome RV segment market share reached 11.2% TTM and 8.6% T6M[29]

Winnebago Industries, Inc. (NYSE:WGO) Q3 2024 Earnings Conference Call June 20, 2024 10:00 AM ET Company Participants Ray Posadas - VP of IR & Market Intelligence Michael Happe - President & CEO Bryan Hughes - SVP & CFO Conference Call Participants Tristan Thomas-Martin - BMO Capital markets James Hardiman - Citi Bret Jordan - Jefferies Michael Swartz - Truist Securities Noah Zatzkin - KeyBanc Capital Markets Craig Kennison - Baird Scott Stember - Roth-MKM Joe Altobello - Raymond James David Whiston - Morni ...

Core Viewpoint - Winnebago Industries reported quarterly earnings of $1.13 per share, missing the Zacks Consensus Estimate of $1.30 per share, and down from $2.13 per share a year ago [1] Financial Performance - The company posted revenues of $786 million for the quarter, missing the Zacks Consensus Estimate by 1.75%, and down from $900.8 million year-over-year [8] - The earnings surprise for the quarter was -13.08%, while a quarter ago, the company had a positive surprise of 8.14% [7] - Over the last four quarters, Winnebago has surpassed consensus EPS estimates two times [2] Future Earnings Expectations - The current consensus EPS estimate for the upcoming quarter is $1.67 on revenues of $836.1 million, and for the current fiscal year, it is $5.02 on revenues of $3.1 billion [5] - The trend for estimate revisions ahead of the earnings release was unfavorable, leading to a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [11] Market Performance - Winnebago shares have declined approximately 22.2% since the beginning of the year, contrasting with the S&P 500's gain of 15% [9] - The company's performance is influenced by the overall industry outlook, with the Building Products - Mobile Homes and RV Builders sector currently in the bottom 10% of Zacks industries [12]