|New Threads Only:|
|New Threads & Replies:|
Forum List » Business News and Headlines|
SEC Filings, Earing Reports, Press Releases
Winnebago Industries Inc. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: December 23, 2011 09:21AM
Winnebago Industries Inc. (WGO) filed Quarterly Report for the period ended 2011-11-26.
Highlight of Business Operations:We provide our motor home customers a comprehensive 12-month/15,000-mile warranty on the Class A, Class B and Class C motor homes, and a 3-year/36,000-mile structural warranty on Class A and Class C sidewalls and floors. We provide a comprehensive 12-month warranty on all towable products. We have also incurred costs for certain warranty-type expenses which occurred after the normal warranty period. We have voluntarily agreed to pay such costs to help protect the reputation of our products and the goodwill of our customers. Estimated costs related to product warranty are accrued at the time of sale and are based on past warranty claims and unit sales history and adjusted as required to reflect actual costs incurred, as information becomes available. A significant increase in dealership labor rates, the cost of parts or the frequency of claims could have a material adverse impact on our operating results for the period or periods on which such claims or additional costs materialize. We also incur costs as a result of additional service actions not covered by our warranties, including product recalls and customer satisfaction actions. Estimated costs are accrued at the time the service action is implemented and are based on past claim rate experiences and the estimated cost of the repairs.
Cost of products sold was $123.3 million, or 93.6% of net revenues for the first quarter of Fiscal 2012 compared to $112.5 million, or 90.9% of net revenues for the comparable period a year ago due to the following:
Fixed overhead (manufacturing support labor, depreciation and facility costs) and research and development-related costs increased to 8.4% of net revenues compared to 7.9% last year. This difference was primarily due to lower plant utilization due to shortened work weeks and additional fixed expenses associated with Towables.
Selling expenses increased $895,000, or 27.4% during the first quarter of Fiscal 2012 and, as a percent of net revenues were 3.2% and 2.6% for the first quarters of Fiscal 2012 and Fiscal 2011, respectively. The expense increase was due primarily to operating expenses associated with Towables and increases in employee-related expenses.
General and administrative expenses increased $56,000 during the first quarter of Fiscal 2012 and, as a percentage of net revenues were 2.8% and 3.0% for the first quarters of Fiscal 2012 and Fiscal 2011, respectively. The expense increase was due primarily to operating expenses associated with Towables and increases in employee-related expenses partially offset by the absence of accrued incentives in the first quarter of Fiscal 2012.
Stocks Discussed: WGO,