Posts Tagged ‘recreation vehicle’

FOREST CITY, Iowa–Winnebago Industries, Inc. (NYSE:WGO), one of the leading United States (U.S.) motor home manufacturers, today reported continued improvement in financial results during the Company’s first quarter of Fiscal year 2011.

Revenues for the first quarter of Fiscal 2011 ended November 27, 2010 were $123.7 million, an increase of 52.7 percent, versus $81.0 million for the first quarter of Fiscal 2010. The Company reported an operating profit of $4.9 million for the quarter, versus an operating loss of $6.0 million for the first quarter of Fiscal 2010. Net income for the first quarter was $3.8 million versus a net loss of $1.3 million for the first quarter of Fiscal 2010. On a diluted per share basis, the Company had net income of $0.13 for the first quarter of Fiscal 2011 versus a net loss of $0.05 for the first quarter of Fiscal 2010. The net loss for the first quarter of Fiscal 2010 reflected the positive impact of $4.9 million in tax benefits associated with additional Fiscal 2009 net operating loss carryback due to tax law changes in Fiscal 2010; however, no tax benefits were recorded on first quarter Fiscal 2010 pre-tax losses which were not immediately subject to refund. During the first quarter of Fiscal 2011, an idled assembly facility in Charles City, Iowa (CCMF) classified as held for sale, was sold to CGS Tires US, Inc. The sale was finalized on November 1, 2010 and generated $3.7 million in net proceeds and a gain of $644,000.

The first quarter was positively impacted by increased motor home deliveries, increased average selling price due to a shift to more higher-priced Class A products, more fixed cost absorption and improved labor efficiencies as a result of higher production levels, as well as the sale of CCMF.

“Increased motor home deliveries continued to drive the improvement in our first quarter Fiscal 2011 results,” said Winnebago Industries’ Chairman, CEO and President Bob Olson. “We are pleased to see increases in our delivery volumes, as well as strength in our Class A products in the marketplace, with gains in both Class A gas and diesel market share. As we enter the slower winter months, however, we remain cautious until we see continued retail growth.”

“We experienced a very positive response from dealers on our new 2011 products shown at the recent National RV Trade Show in Louisville, KY which took place November 30 through December 2, 2010,” continued Olson. “Our dealers were particularly excited about the new Class A diesel Winnebago Tour and Itasca Ellipse products for 2011, which were totally redesigned with a new exterior design and four floorplans unique to the Recreation Vehicle (RV) industry. We also displayed several new floorplans in our Class A gas and Class C product lines, in addition to the premier viewing of our new 2012 ERA Class B motor home, with better user-functionality, enhanced features, more storage capacity and more value.”

Winnebago Industries’ dealer inventory increased 31.8 percent with 2,066 Class A, B and C motor homes on dealers’ lots at the end of the first quarter of Fiscal 2011, compared to the end of the first quarter of Fiscal 2010. Conversely, Winnebago Industries’ sales order backlog was 698 Class A, B and C motor homes at the end of the first quarter of Fiscal 2011, a decrease of 54.1 percent compared to the end of the first quarter of Fiscal 2010.

“Our higher sales order backlog last year at this time was indicative of the fact dealer inventory had bottomed out and our dealers were finally ready to re-stock their shelves with new product,” said Olson. “We responded to that increased demand by ramping up our production a year ago and dealer inventory has remained at a consistent level and in line with retail demand since February 2010.”

The latest Campfire Canvass, a biannual survey of RV owners by the Recreation Vehicle Industry Association (RVIA), 45.4 percent of RV owners expect to travel more this summer than they did last year; 41.9 percent say they’ll travel the same amount.  More than 8.2 million U.S. households own an RV.

RV travel is as popular today as it was in 1910 when the first mass-produced RVs were built. “For a century, Americans have enjoyed exploring what’s over the next hill and around the bend,” says Richard Coon, president of the Recreation Vehicle Industry Association. “That pioneering spirit is still alive and well today.”

Survey respondent Bob Jaffe, 65, of Palm Beach, Fla., exemplifies that pioneering spirit. He and his wife, Sheila, bought their RV in August 2009 and spent five months traveling throughout the U.S.

“Our number-one goal was to visit our daughter in wine country in Northern California,” says Jaffe, who retired from his printing business in 2008. “During our trip, we visited 13 national parks, five national monuments and many historic sites, and we didn’t even get wet.”

The Jaffes, who used to get soaked putting up and taking down their tent in the rain before they bought their first RV, are planning another five-month summer trip that will take them from Florida to the Bay of Fundy in New Brunswick, Canada.

Among the survey respondents, 75 percent cited the flexibility of RVing as a major benefit of owning an RV.

Dennis Kiegel, 59, of Tampa, Fla., enjoys the freedom and control that RVing offers. “Whenever my wife and I feel like it, we can just get up and go,” says Kiegel, a former Anheuser Busch employee. “What we like best is the freedom to come and go as we please. With our RV, we can travel at our own leisure. We don’t have any set plans for the summer. For us, it’s more interesting to wake up in the morning and make a spur-of-the-moment decision.”

According to the survey, a primary reason so many RVers will be traveling this spring/summer is that they appreciate the value they get compared to flying, driving and staying in hotels. Almost 82 percent percent of owners say they save anywhere from 15 to 75 percent by traveling in their RVs. This is consistent with a study by international travel and tourism experts PKF Consulting, which found that family RV trips are, on average, 27-61 percent less expensive than other types of vacations.

“RV travel continues to appeal to people looking to save money and cut costs,” says Coon. “RVers get a bigger bang for their buck than they get from other types of vacations.”

State and national parks are among the most popular destinations for RV trips this spring/summer. Seventy-seven percent of the survey respondents said they’ll visit state parks, while 71 percent will visit national parks.

Rob Long, a 33-year-old architectural designer from Newark, Ohio, frequently visits state parks with his wife and three-year-old daughter in their RV. “Staying at state parks is my way of giving something back and helping to sustain them,” says Long.

Long, whose parents and two brothers also own RVs, appreciates the family togetherness that RVing creates. “RVing is a great way to work and play together as a family,” he says.

According to the survey, RVers plan to be on the move during major holidays, with 60 percent planning to travel over Memorial Day weekend and 64 percent over the July 4^th holiday.

RV owners appreciate the recreational and health benefits associated with RV travel:

• 78 percent say RV travel provides them the opportunity to spend more time enjoying outdoor activities
• 73 percent of RV owners say they are more physically active on RV trips compared to other types of vacations
• 72 percent say RVs allow them to escape everyday stress and pressure
• 80 percent say their children are more physically active on RV vacations than other types.

The U.S. Forest Service’s decision not to eliminate substantial camping discounts to seniors this week will no doubt please recreation vehicle owners such as Dean Lang, of Sandy.

Others, including Orem concessionaire American Land and Leisure that operates 400 campgrounds in 11 states, are not quite as pleased.

Forest Service chief Tom Tidwell announced Wednesday his decision not to implement changes to fees charged to holders of Golden Age and golden Access Passports and Senior and Access Passes at agency campgrounds operated by private concessionaires.

“Each year more than 175 million people enjoy recreational opportunities on national forests and grasslands and that includes more than 15 million visits to our campgrounds,” said Tidwell. “Particularly in these difficult economic times, it is very important to maintain affordable access to our national forests and grasslands, giving people easy ways to recreate and find respite in the great outdoors.”

The decision leaves in place a 50 percent discount for pass holders. The proposed change would have reduced that to 10 percent less than full price. During a 60-day public comment period on the proposal, the Forest Service received more than 4,000 comments.

Lang, who was camping at Zion National Park before the decision was made, said he had been following the debate on recreation-vehicle online forums. He said losing the discount would have been a “bad deal” after working all his life.

“It’s expensive enough with the cost of fuels, an RV and equipment,” he said. “This is one of the ways of still getting out to enjoy the country.”

Full Story…
————–