Winnebago Industries, Inc. (NYSE: WGO) stock surged 21.32% on March 25th March, 2020 (Source: Google finance) post second quarter of FY 20 results. Year-to-date, the operating cash flow has increased by 129.4% to $119.2 million. At the end of the second quarter, the company had outstanding debt of $464.8 million. The cash on hand at the end of the second quarter was of $122.9 million.
In the Towable segment, revenues for the quarter were up 13.1% over the prior year period, primarily driven by overall strength of the Grand Design brand and popularity of several recently redesigned flagship products, including the Reflection, Imagine and Transcend models. The Adjusted EBITDA margins of the segment decreased by 110 basis points, largely reflecting start-up costs for increased capacity at both the Grand Design and Winnebago Towables campuses and a shift in product mix toward travel trailers. Towable backlog for the quarter increased 22.3% in units versus the prior year, reflecting more retail demand for travel trailers. Further, the company has refreshed the lineup of high quality motorized RVs with innovative enhancements and designs that are resonating well with consumers. And the addition of Newmar’s ultra-premium brand to the portfolio is now allowing the company to more effectively compete in the high-end Motorhome market. The acquisition of Newmar has galvanized the Motorhome segment by adding a highly respected premium brand. The integration process is well under way and progressing as planned. Second quarter Motorhome segment revenues posted the growth of 97.7% over the prior year period, due to a full quarter of contribution from Newmar and strong Winnebago branded Class B sales. Motorhome backlog rose 51.8% in units from the prior year due to the addition of Newmar and the continued strength in Winnebago branded Class B retail demand.
WGO in the second quarter of FY 20 has reported the adjusted earnings per share of 67 cents, missing the analysts’ estimates for the adjusted earnings per share of 70 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 44.9 percent to $626.81 million in the second quarter of FY 20, beating the analysts’ estimates for revenue of by 2.71%. This includes the revenues for Newmar, which was acquired in the first quarter of Fiscal 2020, were $138.4 million.
Additionally, the company has declared quarterly cash dividend of $0.11 per share payable on April 29, 2020 to common stockholders of record at the close of business on April 15, 2020.