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Winnebago Industries Announces Strong Fourth Quarter and Full Year Fiscal 2021 Results
ソース: Nasdaq GlobeNewswire / 20 10 2021 06:00:01 America/Chicago
-- Record Quarterly Revenues of $1.0 billion Up 40.4% Year-Over-Year, Driven by Strong End Consumer Demand --
-- Continued RV Market Share Gains (+2.1 pp Trailing Three Months thru August) --
-- Fourth Quarter Gross Margin of 18.1%, Expansion of 150 Basis Points Year-Over-Year --
-- Record Reported Quarterly Diluted EPS of $2.45; Record Adjusted EPS of $2.57 Up 77.2% Over Prior Year --EDEN PRAIRIE, Minn., Oct. 20, 2021 (GLOBE NEWSWIRE) -- Winnebago Industries, Inc. (NYSE: WGO), a leading outdoor lifestyle product manufacturer, today reported financial results for the Company's fourth quarter and full year Fiscal 2021.
Fourth Quarter Fiscal 2021 Results
Revenues for the Fiscal 2021 fourth quarter ended August 28, 2021, were $1.0 billion, an increase of 40.4% compared to $737.8 million for the Fiscal 2020 period. Revenue growth compared to the Fiscal 2020 period was driven by strong end consumer demand, pricing initiatives across all segments driven by higher material and component costs, and segment and product mix. Gross profit was $187.2 million compared to $122.5 million for the Fiscal 2020 period, driven by increased unit growth and pricing, including lower discounts and allowances. Gross profit margin increased 150 basis points to 18.1% in the quarter driven by fixed cost leverage, increased pricing, including lower discounts and allowances, and profitability initiatives. Operating income was $120.0 million for the quarter, an increase of 75.4% compared to $68.4 million for the fourth quarter last year. Fiscal 2021 fourth quarter net income was $84.1 million, an increase of 98.0% compared to $42.5 million in the fourth quarter of last year. Earnings per diluted share was $2.45, an increase of 96.0% compared to $1.25 in the same period last year. Adjusted earnings per diluted share was $2.57 for the fourth quarter, an increase of 77.2% compared to adjusted earnings per diluted share of $1.45 in the same period last year. Consolidated Adjusted EBITDA was $129.0 million for the quarter, compared to $76.5 million last year, representing an increase of 68.6%.President and Chief Executive Officer Michael Happe commented, “Winnebago Industries delivered a strong fourth quarter to finish a record Fiscal 2021. The new heights we were able to achieve in revenues and profitability demonstrate the unique strength and appeal of our growing platform of leading brands. Our resilient and focused team continues to successfully manage through a growing backlog and supply chain challenges while driving tremendous preferences for our premium outdoor lifestyle products. In an environment of high demand, low dealer inventories, tight supply chain, and dynamic cost pressures our market share gains accelerated in the fourth quarter as more consumers sought Winnebago Industries’ high-quality, innovative products and exceptional service. We announced the acquisition of Barletta Boat Company in the fourth quarter, and completed the transaction in early Fiscal 2022, extending our marine platform into one of the fastest-growing boating segments in pontoons and advancing our premier outdoor lifestyle company vision. As always, I want to thank our 6,500+ Winnebago Industries employees who have worked extremely hard during very dynamic and challenging times. It is their efforts that allow us to deliver on our customer, dealer and shareholder expectations.”
Full Year Fiscal 2021 Results
Fiscal 2021 record revenues of $3.6 billion increased 54.1% from $2.4 billion in Fiscal 2020 driven by strong consumer demand for Winnebago Industries' products and increased pricing, including lower discounts and allowances. Fiscal 2021 record gross profit margin of 17.9% improved 460 basis points year-over-year driven primarily by robust operating leverage, increased pricing, including lower discounts and allowances, and favorable segment mix. Operating income was $407.4 million for Fiscal 2021, compared to $113.8 million in Fiscal 2020. Net income for Fiscal 2021 was $281.9 million, an increase of 358.8% compared to $61.4 million in Fiscal 2020. Fiscal 2021 earnings per diluted share was $8.28, an increase of 350.0% compared to earnings per diluted share of $1.84 in Fiscal 2020. Adjusted earnings per diluted share was $8.55 for Fiscal 2021, compared to adjusted earnings per diluted share of $2.58 in the same period last year. Fiscal 2021 consolidated Adjusted EBITDA was $436.1 million, an increase of 159.4% from $168.1 million in Fiscal 2020.Towable Fourth Quarter and Full Year Fiscal 2021 Results
Revenues for the Towable segment were $560.0 million for the fourth quarter, up 35.3% over the prior year, primarily driven by unit growth due to strong end consumer demand and increased pricing across the segment. Adjusted EBITDA margin of 14.9% increased 10 basis points over the prior year period and 50 basis points sequentially. Backlog increased to a record $1,704.4 million, up 127.9% over the prior year and 12.0% sequentially, due to continued strong consumer demand combined with extremely low levels of dealer inventory.For the full year Fiscal 2021, revenues for the Towable segment were $2.0 billion, up 63.7% over Fiscal 2020 driven by heightened consumer demand for Grand Design and Winnebago branded products and increased pricing. Segment Adjusted EBITDA for the full year was $289.0 million, up 94.9% from Fiscal 2020. Adjusted EBITDA margin of 14.4% increased 230 basis points for the full year over Fiscal 2020.
Motorhome Fourth Quarter and Full Year Fiscal 2021 Results
In the fourth quarter, revenues for the Motorhome segment were $448.9 million, up 48.7% from the prior year, driven by an increase in Class B and Class A unit sales, and pricing across the segment. Segment Adjusted EBITDA was $50.4 million, up 159.1% from the prior year due to higher revenues and profitability initiatives. Adjusted EBITDA margin of 11.2% increased 480 basis points over the prior year and 150 basis points sequentially, driven by leverage and profitability initiatives. Backlog increased to a record $2.3 billion, an increase of 119.1% over the prior year and 5.7% sequentially, as dealers continue to experience significant reductions in inventories due to high levels of consumer demand.For the full year Fiscal 2021, revenues for the Motorhome segment were $1.5 billion, up 45.6% from Fiscal 2020 driven by increased unit sales and pricing. Segment Adjusted EBITDA for the full year was $169.2 million, up 413.5% from Fiscal 2020. Adjusted EBITDA margin of 11.0% was up 790 basis points for the full year over Fiscal 2020.
Balance Sheet and Cash Flow
As of August 28, 2021, the Company had total outstanding debt of $528.6 million ($600.0 million of debt, net of convertible note discount of $60.4 million, and net of debt issuance costs of $11.1 million) and working capital of $651.6 million. Cash flow from operations was $237.3 million for the full year Fiscal 2021, a decrease of $33.2 million from the $270.4 million generated in Fiscal 2020 driven by higher net income which was more than offset by an increase to working capital that was driven by growth in the business and supply chain challenges.Cash Dividend and Share Repurchase
On August 18, 2021, the Company’s Board of Directors approved a quarterly cash dividend of $0.18 per share payable on September 29, 2021, to common stockholders of record at the close of business on September 15, 2021. This represents a 50%, or $0.06 per share, increase from the prior dividend of $0.12 per share. During the fourth quarter, Winnebago Industries executed share buybacks totaling $35.4 million. For the full year Fiscal 2021, dividend payments of $16.2 million and share buybacks of $45.4 million combined for total cash returned to shareholders of $61.6 million. As previously announced on October 13, 2021, the Company's Board of Directors authorized a new share repurchase program. This authorization, which does not have an expiration date, grants the Company the authority to repurchase $200.0 million of the Company's common stock and replaces the prior program.Mr. Happe continued, “As we reflect on 2021, we are proud of the financial, organizational and cultural strides we have made together with our talented team. In addition to delivering improved profitability and market share growth, Winnebago Industries continued our deep commitment to corporate responsibility initiatives that impact our communities and shareholders. During the year, Winnebago Industries increased its sustainability efforts by renewing our partnership with the National Park Foundation and joining the UN Global Compact, welcomed a new Head of Diversity, Equity and Inclusion, and added two independent directors to our Board. Looking ahead, our confidence in our ability to profitably grow revenues and gain market share is reflected in the 50% increase to our quarterly cash dividend announced in late August, our share buybacks in our Fiscal 2021 fourth quarter, and the newly authorized share repurchase program of up to $200 million. We look forward to continuing our momentum into Fiscal 2022 through a continued focus on quality, service and innovation as well as an expanded portfolio of high-quality outdoor lifestyle products that empower our customers to have extraordinary outdoor experiences as they travel, live, work and play.”
Conference Call
Winnebago Industries, Inc. will discuss fourth quarter and full year Fiscal 2021 earnings results during a conference call scheduled for 9:00 a.m. Central Time today. Members of the news media, investors and the general public are invited to access a live broadcast of the conference call via the Investor Relations page of the Company's website at http://investor.wgo.net. The event will be archived and available for replay for the next 90 days.About Winnebago Industries
Winnebago Industries, Inc. is a leading North American manufacturer of outdoor lifestyle products under the Winnebago, Grand
Design, Chris-Craft, Newmar and Barletta brands, which are used primarily in leisure travel and outdoor recreation activities. The
Company builds quality motorhomes, travel trailers, fifth-wheel products, pontoons, inboard/outboard and sterndrive powerboats and commercial community outreach vehicles. Winnebago Industries has multiple facilities in Iowa, Indiana, Minnesota and Florida. The Company's common stock is listed on the New York Stock Exchange and traded under the symbol WGO. For access to Winnebago Industries' investor relations material or to add your name to an automatic email list for Company news releases, visit http://investor.wgo.net.Forward-Looking Statements
This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that forward-looking statements are inherently uncertain. A number of factors could cause actual results to differ materially from these statements, including, but not limited to uncertainty surrounding the COVID-19 pandemic; general economic uncertainty in key markets and a worsening of domestic economic conditions or low levels of economic growth; availability of financing for RV and marine dealers; ability to innovate and commercialize new products; ability to manage our inventory to meet demand; competition and new product introductions by competitors; risk related to cyclicality and seasonality of our business; significant increase in repurchase obligations; business or production disruptions; inadequate inventory and distribution channel management; ability to retain relationships with our suppliers; increased material and component costs, including availability and price of fuel and raw materials; ability to integrate mergers and acquisitions; ability to attract and retain qualified personnel and changes in market compensation rates; exposure to warranty claims; ability to protect our information technology systems from data security, cyberattacks, and network disruption risks and the ability to successfully upgrade and evolve our information technology systems; ability to retain brand reputation and related exposure to product liability claims; governmental regulation, including for climate change; impairment of goodwill; and risks related to our Convertible and Senior Secured Notes including our ability to satisfy our obligations under these notes. Additional information concerning certain risks and uncertainties that could cause actual results to differ materially from that projected or suggested is contained in the Company's filings with the Securities and Exchange Commission ("SEC") over the last 12 months, copies of which are available from the SEC or from the Company upon request. The Company disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained in this release or to reflect any changes in the Company's expectations after the date of this release or any change in events, conditions or circumstances on which any statement is based, except as required by law.Contacts
Steve Stuber, Investor Relations
srstuber@wgo.net
(952) 828-8461
Media: Chad Reece, Corporate Relations
creece@wgo.net
(641) 585-6647Winnebago Industries, Inc.
Condensed Consolidated Statements of Income
(Unaudited and subject to reclassification)Three Months Ended (in thousands, except percent and per share data) August 28, 2021 August 29, 2020 Net revenues $ 1,036,093 100.0 % $ 737,807 100.0 % Cost of goods sold 848,928 81.9 % 615,298 83.4 % Gross profit 187,165 18.1 % 122,509 16.6 % Selling, general, and administrative expenses 63,580 6.1 % 50,521 6.8 % Amortization 3,590 0.3 % 3,590 0.5 % Total operating expenses 67,170 6.5 % 54,111 7.3 % Operating income 119,995 11.6 % 68,398 9.3 % Interest expense, net 10,143 1.0 % 14,321 1.9 % Non-operating income (84 ) — % (514 ) (0.1 ) % Income before income taxes 109,936 10.6 % 54,591 7.4 % Provision for income taxes 25,851 2.5 % 12,132 1.6 % Net income $ 84,085 8.1 % $ 42,459 5.8 % Earnings per common share: Basic $ 2.52 $ 1.26 Diluted $ 2.45 $ 1.25 Weighted average common shares outstanding: Basic 33,418 33,641 Diluted 34,364 33,929 Year Ended (in thousands, except percent and per share data) August 28, 2021 August 29, 2020 Net revenues $ 3,629,847 100.0 % $ 2,355,533 100.0 % Cost of goods sold 2,979,484 82.1 % 2,042,605 86.7 % Gross profit 650,363 17.9 % 312,928 13.3 % Selling, general, and administrative expenses 228,581 6.3 % 177,061 7.5 % Amortization 14,361 0.4 % 22,104 0.9 % Total operating expenses 242,942 6.7 % 199,165 8.5 % Operating income 407,421 11.2 % 113,763 4.8 % Interest expense, net 40,365 1.1 % 37,461 1.6 % Non-operating income (394 ) — % (974 ) — % Income before income taxes 367,450 10.1 % 77,276 3.3 % Provision for income taxes 85,579 2.4 % 15,834 0.7 % Net income $ 281,871 7.8 % $ 61,442 2.6 % Earnings per common share: Basic $ 8.41 $ 1.85 Diluted $ 8.28 $ 1.84 Weighted average common shares outstanding: Basic 33,528 33,236 Diluted 34,056 33,454 Percentages may not add due to rounding differences.
Winnebago Industries, Inc.
Condensed Consolidated Balance Sheets
(Unaudited and subject to reclassification)(in thousands) August 28, 2021 August 29, 2020 Assets Current assets Cash and cash equivalents $ 434,563 $ 292,575 Receivables, net 253,808 220,798 Inventories 341,473 182,941 Prepaid expenses and other current assets 29,069 17,296 Total current assets 1,058,913 713,610 Property, plant, and equipment, net 191,427 174,945 Goodwill 348,058 348,058 Other intangible assets, net 390,407 404,768 Investment in life insurance 28,821 27,838 Operating lease assets 28,379 29,463 Other assets 16,562 15,018 Total assets $ 2,062,567 $ 1,713,700 Liabilities and Shareholders' Equity Current liabilities Accounts payable $ 180,030 $ 132,490 Income taxes payable 8,043 8,840 Accrued expenses 219,203 159,060 Total current liabilities 407,276 300,390 Long-term debt, net 528,559 512,630 Deferred income taxes 13,429 15,608 Unrecognized tax benefits 6,483 6,511 Operating lease liabilities 26,745 27,048 Deferred compensation benefits, net of current portion 9,550 11,130 Other long-term liabilities 13,582 12,917 Total liabilities 1,005,624 886,234 Shareholders' equity 1,056,943 827,466 Total liabilities and shareholders' equity $ 2,062,567 $ 1,713,700 Winnebago Industries, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited and subject to reclassification)Year Ended (in thousands) August 28, 2021 August 29, 2020 Operating activities Net income $ 281,871 $ 61,442 Adjustments to reconcile net income to net cash provided by operating activities Depreciation 18,201 15,997 Amortization 14,361 22,104 Non-cash interest expense, net 13,928 10,727 Amortization of debt issuance costs 2,465 7,379 Last in, first-out expense 3,131 (5,188 ) Stock-based compensation 15,347 6,475 Deferred income taxes (2,190 ) (879 ) Other, net (3,578 ) 2,405 Change in operating assets and liabilities, net of assets and liabilities acquired Receivables, net (33,034 ) (25,773 ) Inventories, net (161,663 ) 105,994 Prepaid expenses and other assets (6,560 ) (358 ) Accounts payable 51,478 37,041 Income taxes and unrecognized tax benefits (3,721 ) 11,422 Accrued expenses and other liabilities 47,243 21,646 Net cash provided by operating activities 237,279 270,434 Investing activities Purchases of property, plant, and equipment (44,891 ) (32,377 ) Acquisition of business, net of cash acquired — (260,965 ) Proceeds from the sale of property, plant, and equipment 12,452 — Other, net (570 ) 266 Net cash used in investing activities (33,009 ) (293,076 ) Financing activities Borrowings on long-term debt 3,627,627 2,786,824 Repayments on long-term debt (3,627,627 ) (2,446,824 ) Purchase of convertible bond hedge — (70,800 ) Proceeds from issuance of warrants — 42,210 Payments of cash dividends (16,168 ) (14,588 ) Payments for repurchases of common stock (47,589 ) (1,844 ) Payments of debt issuance costs (224 ) (18,030 ) Other, net 1,699 838 Net cash (used in) provided by financing activities (62,282 ) 277,786 Net increase in cash and cash equivalents 141,988 255,144 Cash and cash equivalents at beginning of period 292,575 37,431 Cash and cash equivalents at end of period $ 434,563 $ 292,575 Supplemental Disclosures Income taxes paid, net $ 88,698 $ 3,667 Interest paid 24,119 17,253 Non-cash investing and financing activities Issuance of common stock for acquisition of business $ — $ 92,572 Capital expenditures in accounts payable 3,760 178 Dividends declared not yet paid 6,497 180 Winnebago Industries, Inc.
Supplemental Information by Reportable Segment - Towable
(in thousands, except unit data)
(Unaudited and subject to reclassification)Three Months Ended August 28, 2021 % of Revenues August 29, 2020 % of Revenues $ Change % Change Net revenues $ 560,025 $ 413,956 $ 146,069 35.3 % Adjusted EBITDA 83,368 14.9 % 61,294 14.8 % 22,074 36.0 % Three Months Ended Unit deliveries August 28, 2021 Product Mix(1) August 29, 2020 Product Mix(1) Unit Change % Change Travel trailer 10,818 69.0 % 7,865 61.9 % 2,953 37.5 % Fifth wheel 4,857 31.0 % 4,832 38.1 % 25 0.5 % Total towables 15,675 100.0 % 12,697 100.0 % 2,978 23.5 % Year Ended August 28, 2021 % of Revenues August 29, 2020 % of Revenues $ Change % Change Net revenues $ 2,009,959 $ 1,227,567 $ 782,392 63.7 % Adjusted EBITDA 289,007 14.4 % 148,276 12.1 % 140,731 94.9 % Year Ended Unit deliveries August 28, 2021 Product Mix(1) August 29, 2020 Product Mix(1) Unit Change % Change Travel trailer 39,943 66.5 % 23,184 61.2 % 16,759 72.3 % Fifth wheel 20,163 33.5 % 14,706 38.8 % 5,457 37.1 % Total towables 60,106 100.0 % 37,890 100.0 % 22,216 58.6 % August 28, 2021 August 29, 2020 Change % Change Backlog(2) Units 46,590 24,903 21,687 87.1 % Dollars $ 1,704,393 $ 747,925 $ 956,468 127.9 % Dealer Inventory Units 10,126 10,528 (402 ) (3.8 ) % (1) Percentages may not add due to rounding differences.
(2) Our backlog includes all accepted orders from dealers which generally have been requested to be shipped within the next six months. Orders in backlog can be cancelled or postponed at the option of the dealer at any time without penalty; therefore, backlog may not necessarily be an accurate measure of future sales.Winnebago Industries, Inc.
Supplemental Information by Reportable Segment - Motorhome
(in thousands, except unit data)
(Unaudited and subject to reclassification)Three Months Ended August 28, 2021 % of Revenues August 29, 2020 % of Revenues $ Change % Change Net revenues $ 448,863 $ 301,771 $ 147,092 48.7 % Adjusted EBITDA 50,426 11.2 % 19,461 6.4 % 30,965 159.1 % Three Months Ended Unit deliveries August 28, 2021 Product Mix(1) August 29, 2020 Product Mix(1) Unit Change % Change Class A 910 30.7 % 690 30.2 % 220 31.9 % Class B 1,530 51.6 % 1,064 46.6 % 466 43.8 % Class C 527 17.8 % 527 23.1 % — — % Total motorhomes 2,967 100.0 % 2,281 100.0 % 686 30.1 % Year Ended(2) August 28, 2021 % of Revenues August 29, 2020 % of Revenues $ Change % Change Net revenues $ 1,539,084 $ 1,056,794 $ 482,290 45.6 % Adjusted EBITDA 169,205 11.0 % 32,949 3.1 % 136,256 413.5 % Year Ended Unit deliveries August 28, 2021 Product Mix(1) August 29, 2020 Product Mix(1) Unit Change % Change Class A 2,957 27.1 % 2,493 30.8 % 464 18.6 % Class B 5,431 49.8 % 3,351 41.3 % 2,080 62.1 % Class C 2,521 23.1 % 2,261 27.9 % 260 11.5 % Total motorhomes 10,909 100.0 % 8,105 100.0 % 2,804 34.6 % August 28, 2021 August 29, 2020 Change % Change Backlog(3) Units 18,254 8,463 9,791 115.7 % Dollars $ 2,303,504 $ 1,051,415 $ 1,252,089 119.1 % Dealer Inventory Units 1,696 2,761 (1,065 ) (38.6 ) % (1) Percentages may not add due to rounding differences.
(2) August 29, 2020 year end data includes Newmar results from the time of acquisition (11/08/19).
(3) Our backlog includes all accepted orders from dealers which generally have been requested to be shipped within the next six months. Orders in backlog can be cancelled or postponed at the option of the dealer at any time without penalty; therefore, backlog may not necessarily be an accurate measure of future sales.Winnebago Industries, Inc.
Non-GAAP Reconciliation
(Unaudited and subject to reclassification)Non-GAAP financial measures, which are not calculated or presented in accordance with accounting principles generally accepted in the United States (“GAAP”), have been provided as information supplemental and in addition to the financial measures presented in the accompanying news release that are calculated and 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 in the news release. The non-GAAP financial measures presented may differ from similar measures used by other companies.
The following table reconciles diluted earnings per share to Adjusted diluted earnings per share:
Three Months Ended Year Ended August 28, 2021 August 29, 2020 August 28, 2021 August 29, 2020 Diluted income per share $ 2.45 $ 1.25 $ 8.28 $ 1.84 Pretax acquisition-related costs (1), (2) 0.02 — 0.02 0.29 Pretax acquisition-related fair-value inventory step-up — — — 0.14 Pretax non-cash interest expense (3) 0.10 0.10 0.41 0.32 Restructuring expense — 0.01 — 0.05 Debt issuance write-off — 0.14 — 0.14 Gain on sale of property, plant and equipment — — (0.14 ) — Impact of convertible share dilution (4) 0.03 — 0.04 — Tax impact of adjustments(5) (0.03 ) (0.05 ) (0.06 ) (0.20 ) Adjusted diluted income per share (6) $ 2.57 $ 1.45 $ 8.55 $ 2.58 (1) Represents transaction-closing costs.
(2) Represents a pretax adjustment.
(3) Non-cash interest expense associated with the convertible notes issued as part of our acquisition of Newmar.
(4) Represents the dilution of convertible notes which is economically offset by a call/spread overlay that was put in place upon issuance.
(5) Income tax charge calculated using the statutory tax rate for the U.S. of 21.0% for both periods presented.
(6) Per share numbers may not foot due to rounding.The following table reconciles net income to consolidated EBITDA and Adjusted EBITDA.
Three Months Ended Year Ended August 28, 2021 August 29, 2020 August 28, 2021 August 29, 2020 Net income $ 84,085 $ 42,459 $ 281,871 $ 61,442 Interest expense 10,143 14,321 40,365 37,461 Provision for income taxes 25,851 12,132 85,579 15,834 Depreciation 4,725 4,143 18,201 15,997 Amortization of intangible assets 3,590 3,590 14,361 22,104 EBITDA 128,394 76,645 440,377 152,838 Acquisition-related fair-value inventory step-up — — — 4,810 Acquisition-related costs 725 — 725 9,761 Restructuring expense — 393 112 1,640 Gain on sale of property, plant and equipment — — (4,753 ) — Non-operating income (84 ) (514 ) (394 ) (974 ) Adjusted EBITDA $ 129,035 $ 76,524 $ 436,067 $ 168,075 Non-GAAP performance measures of Adjusted diluted earnings per share, EBITDA and Adjusted EBITDA have been provided as comparable measures to illustrate the effect of non-recurring transactions occurring during the reported periods and to improve comparability of our results from period to period. Adjusted diluted earnings per share is defined as diluted earnings per share adjusted for after-tax items that impact the comparability of our results from period to period. EBITDA is defined as net income before interest expense, provision for income taxes, and depreciation and amortization expense. Adjusted EBITDA is defined as net income before interest expense, provision (benefit) for income taxes, depreciation and amortization expense and other pretax adjustments made in order to present comparable results from period to period. Management believes Adjusted diluted earnings per share and Adjusted EBITDA provide meaningful supplemental information about our operating performance because these measures exclude amounts that we do not consider part of our core operating results when assessing our performance. Examples of items excluded from Adjusted diluted earnings per share include acquisition-related costs, acquisition-related fair-value inventory step-up, non-cash interest expense, restructuring expenses, debt issuance write-off, gain on sale of property, plant and equipment, impact of convertible share dilution and the tax impact of the adjustments. Examples of items excluded from Adjusted EBITDA include acquisition-related fair-value inventory step-up, acquisition-related costs, restructuring expenses, gain or loss on the sale of property, plant and equipment and non-operating income.
Management uses these non-GAAP financial measures (a) to evaluate historical and prospective financial performance and trends as well as assess performance relative to competitors and peers; (b) to measure operational profitability on a consistent basis; (c) in presentations to the members of our Board of Directors to enable our Board of Directors to have the same measurement basis of operating performance as is used by management in its assessments of performance and in forecasting and budgeting for the Company; (d) to evaluate potential acquisitions; and (e) to ensure compliance with restricted activities under the terms of our asset-based revolving ("ABL") credit facility and outstanding notes. Management believes these non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties to evaluate companies in our industry.
Starting in the first quarter of Fiscal 2022, our presentation of adjusted diluted earnings per share will also add back the per-share impact of after-tax intangible amortization expense. We believe it is appropriate to adjust for intangible amortization expense as it is not considered part of our core operating results when assessing our performance.
Accordingly, we have provided our adjusted diluted earnings per share by quarter for Fiscal 2021 in accordance with this future presentation below, along with a reconciliation to our current presentation of adjusted diluted earnings per share:
Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 FY21 Adjusted diluted earnings per share (current presentation) $ 1.69 $ 2.12 $ 2.16 $ 2.57 $ 8.55 Amortization expense 0.11 0.11 0.10 0.10 0.42 Amortization expense - tax impact (1) (0.02 ) (0.02 ) (0.02 ) (0.02 ) (0.09 ) Adjusted diluted earnings per share (future presentation) (2) $ 1.78 $ 2.21 $ 2.24 $ 2.65 $ 8.88 (1) Income tax charge calculated using the statutory tax rate for the U.S. of 21.0% for all periods presented.
(2) Per share numbers may not foot due to rounding.
