Chris-Craft parent Winnebago reports revenues down 5.9 percent in Q3

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Chris-Craft released new models in the first half of 2019, including the Launch 28 GT.

Chris-Craft released new models in the first half of 2019, including the Launch 28 GT.

Winnebago Industries’ revenues were down 5.9 percent in the third quarter, to $518.9 million, a decrease of 5.9 percent compared to $562.3 million for the third quarter of 2018.

Strong margin performance in the towable segment helped grow gross profit 120 basis points to $86.6 million, an increase of 1.3 percent, compared to $85.5 million the year prior.

“We are pleased to deliver another quarter of solid consolidated results highlighted by continued margin expansion and market share gains,” said Winnebago president and CEO Michael Happe in a statement.

Operating income was $49 million for the quarter, an increase of 1.4 percent, compared to $48.3 million in the third quarter of last year, which was unfavorably impacted by the restructuring costs associated with moving diesel manufacturing from Junction City, Ore., to northern Iowa, totaling $1.1 million, or $0.03 diluted earnings per share.

Fiscal 2019 third quarter net income was $36.2 million, an increase of 11.2 percent, compared to $32.5 million in the same period last year. Earnings per diluted share were $1.14, an increase of 11.8 percent, compared to earnings per diluted share of $1.02 last year.

“As we transition into the final quarter of fiscal 2019, we are well positioned to continue our positive momentum with top line sales and share gains,” Happe said. “Chris-Craft has launched several new models in the front half of 2019, which will continue their momentum forward in the marine industry.”

“The materials cost environment remains volatile, as newly implemented and pending tariffs start to impact cost inputs in the back half of calendar 2019,” Happe added.

Consolidated adjusted EBITDA was $55.9 million for the quarter, compared to $53.4 million last year, an increase of 4.7 percent.

Motorhome segment revenues were down 34.6 percent to $160.2 million, driven by decreases in both Class C and Class A unit sales as dealers continue to reduce inventories.

Revenues for the towable segment were $346.8 million for the third quarter, up 10.8 percent from the prior year, driven by the strength of the Grand Design RV brand. Segment adjusted EBITDA was $57.2 million, up 26 percent over the prior year.

Adjusted EBITDA margin of 16.5 percent increased 200 basis points, reflecting an increase in unit sales, pricing actions taken over the past 12 months and managing input cost pressures. Backlog decreased 24.2 percent, in dollars, compared to the prior year, reflecting the positive impact of utilizing additional capacity added during calendar 2018 and dealers continuing to normalize inventory levels.