FOREST CITY | Winnebago Industries will no longer be “cautiously optimistic” about the motor home industry and the Forest City-based company’s outlook on revenues and profit, Randy Potts, chief executive officer, president and chairman of the board said Thursday.
“We’re ready to drop ‘cautiously’ ...” Potts said.
The company has rebounded from the recession of the past few years, Potts said, as he described the motor home industry and Winnebago’s outlook on revenues and profit.
Winnebago increased its operating income by more than 350 percent in the fiscal year 2013 from the fiscal year 2012. The company reported operating income of $44.4 million for fiscal year 2013, compared with $9.5 million for fiscal year 2012.
In the fourth quarter alone, the company more than doubled its operating income from the same quarter in fiscal year 2012. Winnebago reported an operating income of $15.3 million for the quarter, versus $6.5 million for the fourth quarter of fiscal year 2012.
The fourth quarter ended on Aug. 31.
“We knocked it out of the park in the fourth quarter,” Potts said.
“The fourth quarter is an exclamation point to a very successful and profitable fiscal year 2013,” Winnebago’s Chief Financial Officer Sarah Nielsen said.
Winnebago is selling more motor homes including new 2014 models that are being manufactured now, Potts and Nielsen said.
“We had 30 percent more deliveries in this fourth quarter than in the fourth quarter of 2012, Potts said. “Our annual delivery is the highest we’ve experienced in five years.”
While there has been growth, Nielsen and Potts said the company continues to deal with a shortage in supply of some Class A model chassis. Potts said the shortage should be reduced this winter.
The model area is a growth area, Nielsen said. “For us to capitalize on that, the supply constraint needs to be resolved.”
Nielsen said the company continues to make investments in efficiencies including ways to eliminate some labor needs in production. It also plans to upgrade its information technology system.
The successful fiscal year also included giving bonuses to employees that were larger than last year’s bonuses, Potts said in an interview after Thursday morning’s conference call on the quarterly and fiscal results.
The company has also started a relationship with Brandgenuity to use the Winnebago Industries brand on outdoor gear and other items related to the recreational vehicle lifestyle.
Winnebago is also making Metro Link, a vehicle for mass transit service.
“We’re taking orders at this point,” Potts said of Metro Link.
“Everybody has been working their tails off,” Potts said. “We are a company of overachievers.”
Revenues for the fourth quarter of fiscal year 2013 were $214.2 million, an increase of 31.8 percent, versus $162.5 million for the fourth quarter of fiscal year 2012. The net income for the fourth quarter of fiscal year 2013 was $10.6 million versus $40.9 million in the fourth quarter of fiscal year 2012.