On Thursday, Dec. 14, motor home maker Winnebago Industries (NYSE:WGO) released fiscal first-quarter 2007 earnings for the period ended Nov. 25. Here are the quick and dirty details for the quarter.

  • Sales fell 13.1% because of "challenging" industry conditions, as higher interest rates and fuel prices continue to crimp consumer purchases of RVs.
  • Diluted earnings came in below expectations and fell 43.2%. Higher-priced model sales slowed and rising health care costs, as well as stock compensation expense, adversely affected the bottom line.
  • Management expects the seasonally slow second quarter to remain weak, since dealers avoid building inventory during winter.

(Figures in thousands, except per-share data)

Income Statement Highlights

Q1 2007

Q1 2006

Change

Sales

$201,765

$232,255

(13.1%)

Net Profit

$7,936

$14,570

(45.5%)

EPS

$0.25

$0.44

(43.2%)

Diluted Shares

31,587

33,221

(4.9%)



Get back to basics with a look at the income statement.

Margin Checkup

Q1 2007

Q1 2006

Change*

Gross Margin

10.60%

13.42%

(2.82)

Operating Margin

5.03%

9.23%

(4.20)

Net Margin

3.93%

6.27%

(2.34)

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q1 2007

Q1 2006

Change

Cash + ST Invest.

$142,904

$135,766

5.3%

Accounts Rec.

$23,517

$24,400

(3.6%)

Inventory

$97,168

$114,026

(14.8%)



Liabilities

Q1 2007

Q1 2006

Change

Accounts Payable

$26,675

$25,949

2.8%

Long-Term Debt

$0

$0

N/A



Learn the ways of the balance sheet.

Cash Flow Highlights

Q1 2007

Q1 2006

Change

Cash From Ops.

($11,577)

$32,389

($43,966)

Capital Expenditures

$1,176

$1,398

($222)

Free Cash Flow

($12,753)

$30,991

($43,744)


Find out why Fools always follow the money.

Comparable companies:

  • Fleetwood Enterprises (NYSE:FLE)
  • Coachmen (NYSE:COA)
  • Monaco Coach (NYSE:MNC)
  • Thor Industries (NYSE:THO)

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Fool contributor Ryan Fuhrmann has no financial interest in any company mentioned. Feel free to email him with feedback or to discuss any companies mentioned further. The Fool has an ironclad disclosure policy.