Winnebago Industries Inc. Q3 2009 Earnings Call Transcript

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2009-10-15 14:24:08.0

Tags: Backlog, Winnebago Industries Inc., Call Transcript, Earnings, Corporate Governance, Business Operations, Corporate Law, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from Kathryn Thompson - Thompson Research.

Kathryn Thompson - Thompson Research

First I wanted to focus on your backlog. You mentioned in your prepared comments that you’ve seen an improving trends in backlog since the August fiscal year end. Could you give a little bit more color in terms of the types of units, and the pace of the improvement in overall backlog, and how that compares to kind of your previous periods of going from the summer into the fall?

Bob Olson

Well, I think we are pretty pleased with what we are seeing for orders coming in right now. I think the mix is fairly strong, it’s kind of spread evenly across the board. Comparing to previous periods, I think historically this industry looks at going into the fall and winters is our weaker periods of time.

I can say that we are seeing an increase in orders that maybe a little bit higher than what we would normally see. We’ve seen recoveries before where we have had to do some extra things in the typically slower parts of the year that we are hoping that we are going to see maybe something similar this time, but it’s going to be better than what the typical fall and winter season will be.

Sarah Nielsen

Kathryn, this is Sarah. I think part of what we are seeing too is maybe that inflection point where the dealer inventory levels on the field are just at that low point, where it’s not sustainable and that’s a function of our order increase in our view, and also just a function too of having exciting new products that increase some momentum out there. So these are very good things after such a long protracted downturn.

Kathryn Thompson - Thompson Research

I would assume that in terms of -- is this just more dealer restocking or is this driven by consumer demand. I would assume there would be some consumer demand based on requirements in the Hershey Show?

Bob Olson

I think part of it is consumer demand, but I really think that we are at a point now with this dealer inventories going down so low over the course of the last 18 to 24 months. I think maybe we are finally seeing the bottom of where the dealers are looking at holding their inventory levels.

 

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