Winnebago Industries, Inc. (WGO) has reported a 63.33 percent jump in profit for the quarter ended Feb. 25, 2017. The company has earned $15.28 million, or $0.48 a share in the quarter, compared with $9.35 million, or $0.35 a share for the same period last year.

Revenue during the quarter surged 64.18 percent to $370.51 million from $225.67 million in the previous year period. Gross margin for the quarter expanded 211 basis points over the previous year period to 13.31 percent. Total expenses were 92.34 percent of quarterly revenues, down from 94.02 percent for the same period last year. This has led to an improvement of 168 basis points in operating margin to 7.66 percent.

Operating income for the quarter was $28.38 million, compared with $13.50 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $29.07 million compared with $13.30 million in the prior year period. At the same time, adjusted EBITDA margin improved 195 basis points in the quarter to 7.85 percent from 5.89 percent in the last year period.

President and chief executive officer Michael Happe commented, "Our second quarter results reflect our progress in transforming Winnebago into a larger company with greater scale, a more balanced portfolio, increased profitability and better positioned to compete effectively across the entire RV market. In our first full quarter with Grand Design as part of our organization, we continued to deliver significant wholesale and retail growth in our Towable segment, enabling us to reach our highest level of consolidated gross margin in nearly a decade. In addition to delivering improved profitability, we also made significant progress in further strengthening our balance sheet by reducing our debt by $13 million in the quarter. As we move into the second half of 2017, we intend to build on this momentum by further expanding Towable market penetration and working diligently to improve future results for our Motorized business by strengthening product value and leveraging our reputation for industry leading customer service."

The company has spent $400.95 million cash to meet investing activities during the first six months as against cash outgo of $16.06 million in the last year period. It has incurred net capital expenditure of $6.87 million on net basis during the first six months, down 57.96 percent or $9.47 million from year ago period.

Cash flow from financing activities was $321.15 million for the first six months as against cash outgo of $8.50 million in the last year period.

Cash and cash equivalents stood at $10.93 million as on Feb. 25, 2017, down 70.35 percent or $25.94 million from $36.87 million on Feb. 27, 2016.

Working capital declines

Winnebago Industries, Inc. has witnessed a decline in the working capital over the last year. It stood at $142.14 million as at Feb. 25, 2017, down 16.51 percent or $28.11 million from $170.25 million on Feb. 27, 2016. Current ratio was at 1.94 as on Feb. 25, 2017, down from 3.03 on Feb. 27, 2016.

Cash conversion cycle (CCC) has decreased to 29 days for the quarter from 70 days for the last year period. Days sales outstanding went down to 22 days for the quarter compared with 26 days for the same period last year.

Days inventory outstanding has decreased to 21 days for the quarter compared with 61 days for the previous year period. At the same time, days payable outstanding went down to 14 days for the quarter from 17 for the same period last year.