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EX-99.2 - EXHIBIT 99.2 - WINNEBAGO INDUSTRIES INC | tm2021920d3_ex99-2.htm |
8-K - FORM 8-K - WINNEBAGO INDUSTRIES INC | tm2021920-3_8k.htm |
Exhibit 99.1
Summary historical consolidated financial data of Winnebago
The following table sets forth summary historical condensed consolidated financial data for Winnebago as of and for each of the periods indicated. The summary historical condensed consolidated statement of income and cash flow data for Fiscal 2017, Fiscal 2018 and Fiscal 2019 and the summary historical condensed consolidated balance sheet data as of August 26, 2017, August 25, 2018 and August 31, 2019 presented below have been derived from our audited consolidated financial statements included elsewhere in this offering memorandum. The unaudited summary historical condensed consolidated financial data as of May 25, 2019 and May 30, 2020 and for the nine months ended May 25, 2019 and May 30, 2020 presented below have been derived from our unaudited condensed consolidated financial statements included elsewhere in this offering memorandum.
The unaudited summary historical consolidated financial data for the twelve months ended May 30, 2020 were calculated by subtracting the summary historical consolidated financial information for the nine months ended May 25, 2019 from the summary historical consolidated financial information for Fiscal 2019, and then adding the unaudited summary historical consolidated financial data for the nine months ended May 30, 2020.
This information is only a summary. The historical results presented below are not necessarily indicative of the results to be expected for any future period. You should read the following summary information in conjunction with “Management’s discussion and analysis of financial condition and results of operations” included elsewhere in this offering memorandum, our Quarterly Reports on Form 10-Q for the quarters ended November 30, 2019, February 29, 2020 and May 30, 2020 and our audited consolidated financial statements and the related notes included or incorporated by reference in this offering memorandum. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full year or for any future period.
($ in thousands) | Fiscal 2017 | Fiscal 2018 | Fiscal 2019 | Nine months ended May 25, 2019 | Nine months ended May 30, 2020 | Twelve months ended May 30, 2020 | ||||||||||||||||||
(audited) | (audited) | (audited) | (unaudited) | (unaudited) | (unaudited) | |||||||||||||||||||
Consolidated Statements of Operations Data | ||||||||||||||||||||||||
Net revenues | $ | 1,547,119 | $ | 2,016,829 | $ | 1,985,674 | $ | 1,455,278 | 1,617,726 | 2,148,122 | ||||||||||||||
Cost of goods sold | 1,324,542 | 1,716,993 | 1,678,477 | 1,231,269 | 1,427,307 | 1,874,515 | ||||||||||||||||||
Gross profit | 222,577 | 299,836 | 307,197 | 224,009 | 190,419 | 273,607 | ||||||||||||||||||
Selling, general and administrative expenses | 97,607 | 130,116 | 142,295 | 106,303 | 126,540 | 162,532 | ||||||||||||||||||
Postretirement health care benefit income | (24,796 | ) | — | — | — | — | — | |||||||||||||||||
Amortization of intangible assets | 24,660 | 9,328 | 9,635 | 7,204 | 18,514 | 20,945 | ||||||||||||||||||
Total operating expenses | 97,471 | 139,444 | 151,930 | 113,507 | 145,054 | 183,477 | ||||||||||||||||||
Operating income | 125,106 | 160,392 | 155,267 | 110,502 | 45,365 | 90,130 | ||||||||||||||||||
Interest expense | 16,837 | 18,246 | 17,939 | 13,293 | 23,140 | 27,786 | ||||||||||||||||||
Non-operating income | (330 | ) | (494 | ) | (1,581 | ) | (1,330 | ) | (460 | ) | (711 | ) | ||||||||||||
Income before income taxes | 108,599 | 142,640 | 138,909 | 98,539 | 22,685 | 63,055 | ||||||||||||||||||
Provision for income taxes | 37,269 | 40,283 | 27,111 | 18,609 | 3,702 | 12,204 | ||||||||||||||||||
Net income | $ | 71,330 | $ | 102,357 | $ | 111,798 | $ | 79,930 | 18,983 | 50,851 | ||||||||||||||
Cash Flow Data | ||||||||||||||||||||||||
Net cash provided by operating activities | $ | 97,127 | $ | 83,346 | $ | 133,750 | $ | 82,849 | $ | 162,437 | $ | 213,338 | ||||||||||||
Net cash used in investing activities | (405,385 | ) | (111,761 | ) | (38,936 | ) | (30,497 | ) | (289,406 | ) | (297,845 | ) | ||||||||||||
Net cash (used in) provided by financing activities | 258,620 | (5,188 | ) | (59,725 | ) | (50,518 | ) | 242,018 | 232,811 | |||||||||||||||
Non-GAAP Financial Data | ||||||||||||||||||||||||
EBITDA(1) | $ | 157,411 | $ | 180,863 | $ | 180,165 | $ | 128,824 | $ | 76,193 | $ | 127,534 | ||||||||||||
Adjusted EBITDA(1) | $ | 141,854 | $ | 189,180 | $ | 186,710 | $ | 134,550 | $ | 94,883 | $ | 147,043 | ||||||||||||
Acquisition Adjusted EBITDA(1) | $ | 163,077 | ||||||||||||||||||||||
Pro Forma Cash Interest Expense(2) | $ | 20,347 | ||||||||||||||||||||||
Pro Forma Total Debt, net(2) | $ | 401,020 | ||||||||||||||||||||||
Pro Forma Secured Debt, net(2) | $ | 101,020 | ||||||||||||||||||||||
Ratio of Acquisition Adjusted EBITDA to Pro Forma Cash Interest Expense(1)(2) | 8.01 | x | ||||||||||||||||||||||
Ratio of Pro Forma Total Debt, net to Acquisition Adjusted EBITDA(1)(2) | 2.46 | x | ||||||||||||||||||||||
Ratio of Pro Forma Secured Debt, net Acquisition Adjusted EBITDA(1)(2) | 0.62 | x | ||||||||||||||||||||||
Capital Expenditures | $ | 13,993 | $ | 28,668 | $ | 40,858 | $ | 31,681 | $ | 28,582 | $ | 37,759 | ||||||||||||
Free Cash Flow(1) | $ | 83,134 | $ | 54,678 | $ | 92,892 | $ | 51,168 | $ | 133,855 | $ | 175,579 | ||||||||||||
Free Cash Flow Conversion(1) | 85.6 | % | 65.6 | % | 69.5 | % | 61.8 | % | 82.4 | % | 82.3 | % |
As of | ||||||||||||||||
August 26, 2017 | August 25, 2018 | August 31, 2019 | May 30, 2020 | |||||||||||||
Balance Sheet Data | ||||||||||||||||
Cash and cash equivalents | $ | 35,945 | $ | 2,342 | $ | 37,431 | $ | 152,480 | ||||||||
Total assets | 902,512 | 1,051,805 | 1,104,231 | 1,533,040 | ||||||||||||
Long-term debt, less current maturities | 271,726 | 291,441 | 245,402 | 451,306 | ||||||||||||
Total stockholders’ equity | 441,674 | 534,445 | 632,212 | 784,810 |
(1) | EBITDA, Adjusted EBITDA, Acquisition Adjusted EBITDA, Free Cash Flow and Free Cash Flow Conversion are non-GAAP financial measures. These non-GAAP financial measures, which are not calculated or presented in accordance with GAAP, have been provided as supplemental information and in addition to the financial measures presented in accordance with GAAP. Such non-GAAP financial measures should not be considered superior to, as a substitute for, or as an alternative to, and should be considered in conjunction with, the GAAP financial measures presented herein. The non-GAAP financial measures presented may differ from similar measures used by other companies. See “Non-GAAP financial measures” for a discussion of the reasons why management believes EBITDA, Adjusted EBITDA, Acquisition Adjusted EBITDA, Free Cash Flow and Free Cash Flow Conversion are useful in evaluating our business and also for a discussion of the analytical limitations of these measures. |
The following table reconciles net income to EBITDA, Adjusted EBITDA and Acquisition Adjusted EBITDA for the periods presented.
($ in thousands) | Fiscal 2017 | Fiscal 2018 | Fiscal 2019 | Nine months ended May 25, 2019 | Nine months ended May 30, 2020 | Twelve months ended May 30, 2020 | ||||||||||||||||||
Net income | $ | 71,330 | $ | 102,357 | $ | 111,798 | $ | 79,930 | $ | 18.983 | $ | 50,851 | ||||||||||||
Interest expense | 16,837 | 18,246 | 17,939 | 13,293 | 23,140 | 27,786 | ||||||||||||||||||
Provision for income taxes | 37,269 | 40,283 | 27,111 | 18,609 | 3,702 | 12,204 | ||||||||||||||||||
Depreciation | 7,315 | 9,849 | 13,682 | 9,788 | 11,854 | 15,748 | ||||||||||||||||||
Amortization | 24,660 | 9,328 | 9,635 | 7,204 | 18,514 | 20,945 | ||||||||||||||||||
EBITDA | 157,411 | 180,063 | 180,165 | 128,824 | 76,193 | 127,534 | ||||||||||||||||||
Postretirement health care benefit income | (24,796 | ) | — | — | — | — | — | |||||||||||||||||
Acquisition-related costs | 6,592 | 2,177 | — | — | 9,761 | 9,761 | ||||||||||||||||||
Transaction Related Inventory Step-up | — | — | — | — | 4,810 | 4,810 | ||||||||||||||||||
Restructuring | — | — | 1,068 | 1,321 | 1,247 | 994 | ||||||||||||||||||
Non-operating income | (330 | ) | (494 | ) | (1,581 | ) | (1,330 | ) | (460 | ) | (711 | ) | ||||||||||||
Stock-based compensation | 2,977 | 7,434 | 7,058 | 5,735 | 3,332 | 4,655 | ||||||||||||||||||
Adjusted EBITDA | $ | 141,854 | $ | 189,180 | $ | 186,710 | $ | 134,550 | $ | 94,883 | $ | 147,043 | ||||||||||||
Newmar Adjusted EBITDA(1) | $ | 16,034 | ||||||||||||||||||||||
Acquisition Adjusted EBITDA | $ | 163,077 |
(1) | Adjustment gives effect to the Newmar Acquisition, which was consummated on November 8, 2019, as if such acquisition had occurred on May 25, 2019, by including management’s estimate of the Adjusted EBITDA of Newmar for the period from May 25, 2019 through November 7, 2019. This estimate is based on management’s most recently available historical financial information at the time of acquisition and makes adjustments to eliminate expenses related to the prior owners and certain other non-recurring costs and expenses, if any. This estimate does not include any contributions from synergies or cost savings management expects to achieve in the future. |
The following table reconciles net cash provided by operating activities to Free Cash Flow for the periods presented.
($ in thousands) | Fiscal 2017 | Fiscal 2018 | Fiscal 2019 | Nine months ended May 25, 2019 | Nine months ended May 30, 2020 | Twelve months ended May 30, 2020 | ||||||||||||||||||
Net cash provided by operating activities | $ | 97,127 | $ | 83,346 | $ | 133,750 | $ | 82,849 | $ | 162,437 | $ | 213,338 | ||||||||||||
Capital expenditures | 13,993 | 28,668 | 40,858 | 31,681 | 28,582 | 37,759 | ||||||||||||||||||
Free Cash Flow | $ | 83,134 | $ | 54,678 | $ | 92,892 | $ | 51,168 | 133,855 | 175,579 |
(2) | Pro Forma Cash Interest Expense gives pro forma effect to this offering and the application of the proceeds therefrom as described under “Use of proceeds” as well as the issuance of our convertible notes due 2025, in each case, as if they had occurred on June 1, 2019. Pro Forma Total Debt, net and Pro Forma Secured Debt, net, reflect the amount of total debt and debt secured by liens, in each case net of unrestricted cash, and give pro forma effect to this offering and the application of the proceeds therefrom as described under “Use of proceeds” as if they had occurred on May 30, 2020. |