Revenue during the quarter grew 14.51 percent to $245.31 million from $214.22 million in the previous year period. Gross margin for the quarter contracted 2 basis points over the previous year period to 11.77 percent. Total expenses were 92.50 percent of quarterly revenues, down from 94.04 percent for the same period last year. This has led to an improvement of 154 basis points in operating margin to 7.50 percent.

Operating income for the quarter was $18.40 million, compared with $12.76 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $14.68 million compared with $12.78 million in the prior year period. At the same time, adjusted EBITDA margin improved 2 basis points in the quarter to 5.98 percent from 5.97 percent in the last year period.

President and Chief Executive Officer Michael Happe commented, “We are off to a strong start in 2017 as we continue to implement our plan to transform Winnebago, competing more effectively in the market and delivering increased profitability. We successfully completed the acquisition of Grand Design, significantly expanding our penetration within the fast-growing Towable market and creating a broader and more balanced portfolio well-positioned to capitalize on the opportunities across the RV market. Our Towable segment delivered continued strong organic growth for the quarter and we are now even better positioned to compete in this attractive market with the addition of Grand Design’s leading product portfolio. In our Motorized business, retail registrations were up and our backlog increased versus the end of the prior quarter; we are focused on driving greater and more consistent product quality and customer service. Looking ahead, we are excited to continue the momentum we have achieved in building Winnebago into a true full-line RV leader. I would like to thank all of our Winnebago employees for their hard work during the quarter and welcome the Grand Design team to our Company.”

The company has spent $397.50 million cash to meet investing activities during the quarter as against cash outgo of $3.03 million in the last year period.

Cash flow from financing activities was $337.65 million for the quarter as against cash outgo of $3.43 million in the last year period.

Cash and cash equivalents stood at $25.58 million as on Nov. 26, 2016, down 54.09 percent or $30.14 million from $55.72 million on Nov. 28, 2015.

Working capital declines
Winnebago Industries, Inc has witnessed a decline in the working capital over the last year. It stood at $144.89 million as at Nov. 26, 2016, down 18.71 percent or $33.35 million from $178.24 million on Nov. 28, 2015. Current ratio was at 2.13 as on Nov. 26, 2016, down from 3.22 on Nov. 28, 2015.

Cash conversion cycle (CCC) was almost stable at 37 days for the quarter, when compared with the last year period. Days sales outstanding went up to 15 days for the quarter compared with 13 days for the same period last year.

Days inventory outstanding was almost stable at 33 days for the quarter, when compared with the last year period. At the same time, days payable outstanding went up to 11 days for the quarter from 8 for the same period last year.