You are given a text that consists of multiple sentences. Your task is to perform abstractive summarization on this text. Use your understanding of the content to express the main ideas and crucial details in a shorter, coherent, and natural sounding text. 
Text: I am joined on the call today by Michael Happe, president and chief executive officer; and Bryan Hughes, senior vice president and chief financial officer.
These factors are identified in our SEC filings, which I encourage you to read.
As always, we deeply appreciate your interest in Winnebago Industries and taking the time to discuss our fiscal 2021 third-quarter results.
I will begin with an overview of our performance before turning it over to Bryan Hughes, who will discuss our financial results in more detail.
In those challenging and uncertain early weeks of the pandemic in spring of 2020, Winnebago Industries suspended our manufacturing operations while we work with our team and suppliers to develop the safety protocols necessary to keep our people safe.
It is also remarkable that as we sit here today, our scientists, healthcare professionals, public health officials and the broader pharmaceutical industry collaborated to bring effective and safe vaccines to market in record-breaking time, helping us to slow down the spread of the virus to levels with which we can live carefully through today.
Our gratitude is immense to all those involved.
We believe the pandemic not only accelerated some existing purchase intent within the recreational vehicle and marine markets these last 15 months, but we are equally convinced there has been, is and will be a meaningful expansion of interest and engagement in the outdoors that will benefit our business and industries for many years, even through when avoidable cyclical periods that have been and will be a part of the outdoor economy for decades.
Today, more families than ever are seeking ways to enjoy the outdoor lifestyle.
With 10.1 million households having camped for the very first time in 2020 and another estimated 4.3 million households undergoing their own rookie camping experience as well in 2021, our team is helping to meet increased demand for our products and brands while delivering record financial performance.
More new families, more first-time buyers and more diverse customers, getting their taste of what exploring this great country via the open roads and expansive waterways is all about.
Now some will look for signs of fallout of first-time buyers and challenging comparative periods in the short term to record retail demand a year ago.
But others like us, see a net positive new wave of engaged enthusiasts, especially millennials and younger generations, who are actively now shifting their available time and income to invest in a lifestyle that is rewarding and accommodating to countless use cases personally and professionally when using our products.
Today's fresh memories for youth, first-time explorers and even veteran outdoor participants will be the foundation for our industry to grow from in the decades ahead.
We are long and bullish on America's outdoor recreation economy and the place in that ecosystem Winnebago Industries will hold in the future.
I'm incredibly proud of the progress we have made in the past year, and it is all due to our team, which we serve as leaders here at the company.
Our results for the third quarter of fiscal-year 2021 continue to build on the momentum we have generated throughout the fiscal year.
In the third quarter, Winnebago Industries grew net sales to a record $960.7 million, representing a 139% growth year over year and an organic ex-Newmar growth of 53% over our pandemic fiscal third quarter in 2019.
Our two-year performance demonstrates not only the exceptional growth in consumer demand for pursuing the outdoor lifestyle, but also that Winnebago Industries has continued to diligently execute to meet that demand while growing market share at the same time.
As of April 2021, our RV fiscal year-to-date market share is now 12.5%, up 40 basis points from the same period last year.
Winnebago Industries top-line performance in the third quarter also represented 14% sequential growth over our fiscal 2021 second quarter.
And while we do not talk about sequential growth, typically for seasonal reasons, given the unique nature of our comparable periods because of the pandemic's impact on a year ago's Q3 results, it is helpful in demonstrating our sustained revenue growth throughout the year and speaks to the stickiness of consumer demand.
Though catalyzed undoubtedly by the onset of the pandemic, demand for our products has remained strong as the vaccine rollout and gradual reopening across North America has picked up.
Our team has stepped up production output as a result.
The golden threads of quality, service and innovation extend to everything we do, and were a significant driver of our strong profitability in the third quarter.
The craftsmanship and quality of our premium products at every price point and across each of our Winnebago, Grand Design, Newmar, and Chris-Craft brands enables us to continue to grow our market share, even at historically low levels of discounting.
Similarly, the superior service and support we provide our consumers through deep partnerships with our dealers, affords us the ability to execute carefully consider pricing actions to reflect the surging demand for our products, but also offset the real input cost inflation that is present across our industries.
Our enterprisewide build-to-order production approach also continues to serve us well as we remain disciplined, considering ongoing supply chain challenges.
Our consolidated working capital and overall profitability remain improved.
At Winnebago Industries, we often talk about the importance of our dealer network relationships and the strength of those partnerships as a critical differentiator.
Our dealers are committed to our premium brands, and they have not sacrificed their dedication to customer satisfaction at any time through this pandemic.
The dealers have done an exceptional job of managing through lower inventory levels than desired and rising sales and service demand.
They continue to express their confidence in both the future retail demand environment and in Winnebago Industries as an OEM through increased levels of backlog orders.
We are also committed consequently to working closely with our supplier partners to meet that order appetite as quickly as possible.
But as always, safely, and delivering high levels of product quality always.
Our record sales in dollars and units in fiscal 2021 third quarter show that we are sequentially determined to invest in finding ways to increase output.
We continue to experience demand-driven supply chain challenges that restrain our operations from reaching full production capacity and have been facing various ways of inflation pressure as well in the last six months.
The impact of these supply based inconsistencies is evident in some of the segment results.
But our team is working closely with our supply chain partners to manage through these conditions with flexibility, nimbleness and process discipline as much as possible.
We are grateful for our supplier relationships and all they are doing to feed our assembly lines daily.
We provided this as a means of disclosing additional context for the strong results we are reporting for our third quarter ended May 29, 2021.
As a reminder, the prior year third quarter was significantly impacted by the roughly six-week shutdown period that we imposed on our operations in response to the COVID pandemic and are imperative to keep our employees and other stakeholders safe.
As a result, comparisons against this prior year are less meaningful in providing context for this year's performance.
With this in mind, our third-quarter consolidated revenues, gross margins, EBITDA margins, and earnings per share were all significantly ahead of the prior-year results.
Our strong sales generated substantial operating leverage and improved yield, and also reflected the strong demand driven by interest in our products.
In short, we had record results in sales and EPS, and our great term -- our great team, excuse me, deserves a lot of credit for executing a terrific third quarter.
Due to the significant disruption in Q3 of last year, I will discuss our performance compared to 2019, where helpful, two years ago, and also sequentially, meaning compared to our second-quarter results released last quarter to provide additional context.
Sales increased by 81.6% as compared to two years ago for third-quarter 2019, representing strong organic growth of our brands and also benefiting from the acquisition of Newmar.
Sales increased by 14% in Q3 as compared to Q2, representing the continued efforts by our supply chain and our team to generate increased output to meet the very strong demand that our dealers and end customers are exhibiting for our products.
This is also demonstrated by the record backlog related to dealer orders, up an additional 18.2% versus Q2.
While we continue to address the ongoing constraints presented by the supply chain, we are pleased to see the sequential progression in our output and shipments to our dealer partners.
Gross margins of 17.7% increased 130 points versus the 16.4% of third quarter two years ago, driven by cost savings initiatives, product mix and productivity improvements.
Gross margins declined modestly in Q3 compared to Q2; 17.7% in Q3, as compared to 18.6% in Q3 -- Q2, excuse me, driven by labor productivity impact from some of the supply chain inconsistencies, timing of investments in the business and higher material costs.
Margins of 17.7% in Q3 were well above our historical run rate and reflect primarily, the improvement in the motorhome segment.
Net income increased to $71.3 million in Q3, which is up 97% or almost double what was delivered two years ago.
Net income increased 3%, compared to the $69.1 million in Q2.
Reported diluted earnings per share of $2.05 in Q3 compares to a reported diluted earnings per share of $0.37 in the prior-year period and sequentially compares to a reported diluted earnings per share of $2.04 in Q2.
Adjusted diluted earnings per share of $2.16 in Q3 compares to $2.12 in Q2.
Diluted earnings per share was $1.14 Q3, two years ago.
In summary, Q3 was up significantly across all metrics when compared to our Q3 two years ago and showed a sequential improvement in sales, profit and in EPS, driven by continued sales growth in a very dynamic demand landscape and supply chain environment.
Now I'll turn to our segment performance starting with towables.
Revenues for the towable segment were $555.7 million for the third quarter and increased 26.5% sequentially versus the second quarter, driven by elevated output and supported by strong consumer demand for our Grand Design and Winnebago-branded products.
Winnebago Industries' unit share of the North American towable market on a trailing three-month basis through April 2021, was 11.4%, reflecting an increase of 90 basis points over the same period last year.
Segment adjusted EBITDA was $80.1 million, up 28.5% sequentially or compared to the second quarter.
Adjusted EBITDA margin was a strong 14.4%, increasing from 14.2% in Q2, as continued leverage and pricing, combined with lower discounts and allowances, helped to offset rising costs driven by inflation.
Backlog increased to a record $1.5 billion, an increase of 17% versus the second quarter, reflecting continued strong consumer demand, combined with extremely low levels of dealer inventory.
Next, let's turn to our motorhome segment.
In the third quarter, revenues for the motorhome segment were $385.3 million, up 1% sequentially compared to the second quarter.
As Mike mentioned, our motorhome products are in high demand, but results were limited by our inability to keep pace with the very strong demand due to certain supply chain challenges across many of our motorhome models.
Segment adjusted EBITDA was $37.5 million, compared to a loss of $10.8 million in the same period last year.
EBITDA in Q2 was $51 million.
EBITDA margins of 9.7% remained very strong relative to the 4% to 5% recorded historically, and is down from a record Q2 due to a different product mix, lower productivity due to the supply chain inconsistencies and also investments in the business, including the very successful dealer meeting held by the Newmar business.
The Newmar EBITDA margin of 9.7% was well ahead of EBITDA in Q3 of 2019 at 0.2%, reflecting the significant improvements from our cost savings, productivity and product mix.
Backlog in the motorhome segment increased to a record $2.2 billion, an increase of 323.3% over the prior year and an increase of 21.2% versus Q2 as dealers continue to experience significant reductions in inventories due to extremely high levels of consumer demand.
While we are experiencing inflationary pressures and remain conscious of competitive dynamics that may impact our net pricing equation, as well as continued supply chain inefficiencies caused by certain chassis or component constraints, we continue to expect to achieve a level of sustained profitability that is notably above the 4% to 5% EBITDA margin we've delivered in this segment historically.
While we are pleased to see this meaningful improvement we have more work ahead of us in the areas of productivity and labor efficiency, asset utilization and the positioning and health of our product line.
Now turning to the balance sheet.
Driven by consistent levels of gross debt, growing levels of cash and consistent growth in adjusted EBITDA, our leverage ratio or net debt to adjusted EBITDA, is now 0.5 times.
We have strong financial flexibility to invest in the business, pursue value-added M&A opportunities and support shareholder returns.
Our liquidity, including our currently untapped ABL, is just short of $600 million.
Cash flow from operations was $148 million in the first nine months of fiscal 2021, a decrease of $14.5 million from the same period last year.
On a year-to-date basis, we're benefiting from our improved profitability and working capital improvements driven by our made-to-order model that were more than offset by changes in working capital required to support increased production and rapid sales growth, as well as additional working capital from supply chain challenges.
On a quarterly basis, cash flow from operations was $81 million in Q3, which is an increase of $11.4 million versus the $69.6 million in Q2.
Our effective tax rate in our fiscal third quarter decreased to 22.8%, compared to 25.3% in the same period last year.
For the full year, we currently expect our tax rate to approximate 23% to 24%, excluding all discrete items from year-to-date results and those that may occur in the remainder of the year.
Our capital allocation priorities are focused on investing in organic growth opportunities for our businesses, executing strategic expansion to our portfolio through M&A, maintaining our leverage ratio within our targeted zone, maintaining a strong liquidity position and returning cash to shareholders.
During the third quarter, we paid a dividend of $0.12 per share on May 19, 2021, and, and our Board of Directors just approved a quarterly cash dividend of $0.12 per share payable on June 30, 2021, to common stockholders of record at the close of business on June 16, 2021.
That concludes my review of our quarterly financials.
Mike, back to you.
We continue to meet the social challenges of the day with grit, determination, compassion and an intense focus on the safety and well-being of all members of our team.
I am incredibly happy to report that COVID-related impacts to our labor force are at their lowest level since the pandemic started.
As we begin to take steps into a brighter, less socially distanced future, we are proud to carry out our mission of providing families and friends with access to beautiful outdoor spaces.
In doing so, we will continue to support our employees by serving them in communities where they live, work and play and optimizing our ESG performance across our organization.
To that end, we announced two exciting new community initiatives in the recent third quarter.
First is our participation in the United Nations Global Compact, a corporate sustainability initiative, designed to advance universal principles on human rights, labor, environment and anticorruption.
We joined over 12,000-plus global signatories, including several others in the outdoor recreation industry in supporting United Nation Global Compact's 10 principles and integrating these principles into our company's strategy.
Additionally, the Winnebago Industries Foundation has partnered with Habitat for Humanity, a global housing nonprofit to support their community-based neighborhood revitalization efforts.
The partnership includes a significant financial donation in support of Habitat's RV Care-A-Vanner program.
These organizations' missions are clearly aligned with Winnebago Industries values and enable more communities to enjoy the outdoor safely and equitably.
Winnebago Industries remains committed to advancing our core values in our operations and our communities, executing on our strategy, capitalizing on opportunities created by favorable market dynamics and innovating to sustain the unique appeal of our products with consumers.
You will continue to hear more about our corporate responsibility momentum within our enterprise in the future and the incremental resources we will allocate.
It is not only who we are, but it is how we do what we do.
As Winnebago Industries enters the final quarter of fiscal 2021, it is safe to say that we are in exciting and yet unique time still.
Field inventories in the RV and marine markets remain at almost historically low levels when using inventory turns as the metric.
Retail demand and interest remains very strong for our products as we enter the summer months, even as the outdoor industry potentially faces unprecedented retail comp periods versus a year ago.
While there are a few reports of some consumer retail order cancellations attributed to product delivery lead times or price increases in recent months, the high majority of retail orders are indeed intact, and we believe dealers will honor a high percentage of their backlog orders for the foreseeable future.
Retail financing remains available and affordable, with lenders staying disciplined in most cases on approval criteria.
And, lastly, and certainly importantly, all stakeholders are managing to the best of their ability, the implication of rising material input costs, tight labor markets and component availability challenges.
Regardless of the above topics, we are pleased with our results and are convinced that our teams at Winnebago Industries are managing these dynamics as well, if not better than most of our peers.
We will maintain our focus on executing our proven strategy to build a differentiated, premier outdoor lifestyle company and drive long-term value for end customers, dealers, employees and shareholders.
Our market share progression validates that we are improving our overall competitiveness every quarter.
Our financial results are demonstrating consistent, credible, sustained traction on improving profitability, creating very strong cash flow and managing our assets effectively, while preserving financial stability and liquidity for both strategic growth opportunities in the future, but also any uncertain times ahead.
We are continuing to invest in our business to ensure we are best positioned to meet the persistent elevated demand we anticipate in quarters and years to come, driven by the secular and ongoing growth in outdoor lifestyle products and consumer priorities for leisure and family activities, and our own ability to grow faster than the market.
We have mentioned our need to add capacity across the Winnebago Industries' enterprise in previous earnings calls.
These plans were foreseen in our previous year's long-range plan exercises and were validated again during our most recent long-range plan.
In the immediate future over the next 12 to 18 months, we will add capacity in many ways, building new facilities, as well as reengineering existing business processes operational flow or building redesigns.
Capacity is being added inorganically via new spaces and more square feet at Grand Design, Chris-Craft, and Newmar, and organically through continuous improvement initiatives on the Winnebago brand and on every campus in the company.
These investments should be a clear sign of our confidence in the future, both in terms of the vitality of the end markets, but also our market share prospects led by the development of many yet-to-be-announced, innovative new products in our pipeline.
Now before we open the call to questions, I want to touch quickly on expectations for the RV industry as we enter the last quarter of our 2021 fiscal year.
We believe industry wholesale shipments will grow approximately 50% annually in our 2021 fiscal year, and we are aligned with the RVIA forecast of approximately 34% more shipments for the industry for the full 2021 calendar year.
And, finally, I will take a moment to reiterate my immense appreciation to the world-class Winnebago Industries team, without whom, we would not be sharing such outstanding results today.
Our team truly believes in our core value system and takes pride in creating the world's finest outdoor lifestyle products.
Bryan, Steve and I are honored to be a part of such a dedicated and talented group as we continue to serve our employees and the communities in which they live, work and play, along with the customers who count on our brands as their conduits to extraordinary experiences in the outdoors.
I'll now turn the line back over to the operator for the Q&A session.

user
compname posts q3 earnings per share $2.05.
q3 earnings per share $2.05.
q3 revenue $960.7 million versus refinitiv ibes estimate of $839.4 million.
q3 adjusted earnings per share $2.16.

assistant