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EX-99.2 - EXHIBIT 99.2 - WINNEBAGO INDUSTRIES INCtm2021920d3_ex99-2.htm
8-K - FORM 8-K - WINNEBAGO INDUSTRIES INCtm2021920-3_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)                             8.01x
Ratio of Pro Forma Total Debt, net to Acquisition Adjusted EBITDA(1)(2)                             2.46x
Ratio of Pro Forma Secured Debt, net Acquisition Adjusted EBITDA(1)(2)                             0.62x
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.