ELKHART, Ind., June 8,
2021 /PRNewswire/ -- THOR Industries, Inc. (NYSE: THO) today
announced record results for the third fiscal quarter ended
April 30, 2021.
"We posted record results in our third fiscal quarter, achieving
both the highest quarterly net sales and net income figures in the
history of THOR Industries. These results show that growth
continued unabated after the initial temporary shutdown of our
dealers and THOR Industries' production lines in late March
through the end of April of last year due to the pandemic. We
have increased our production levels, often with modest capital
expenditures, and intend to continue to increase production levels
to address the ongoing, robust consumer and dealer demand for THOR
Industries RV products, while also managing through continuing
supply chain challenges," said Bob
Martin, President and CEO of THOR Industries.
"Demand for our products continues to grow at both the retail
and wholesale levels. While our pace of production and shipments
has accelerated, demand is so high that independent dealer
inventories of THOR Industries products continue to decline while
dealer sales are increasing. This increasing consumer demand has
driven our order backlog to more than $14
billion at the end of the quarter and includes units that
will be needed to restock depleted dealer inventories. Since a
significant number of units in our backlog have already been retail
sold, we currently believe the restocking cycle will extend well
into calendar 2022," said Martin.
Third-Quarter Financial Results
Increases in year-over-year financial results for the Company's
third quarter of fiscal 2021 are primarily attributable to strong
demand in the current-year period and the negative impact of the
COVID-19 pandemic in the prior year, which began in the middle of
the prior-year third quarter and resulted in 6 to 8 weeks of
production shutdowns at most of our facilities.
Net sales were $3.46 billion in
the third quarter of fiscal 2021, compared to $1.68 billion in the third quarter of fiscal
2020. This year's third quarter net sales include $1.73 billion for the North American Towable RV
segment, $775.4 million for the North
American Motorized RV segment and $894.2
million for the European RV segment.
Consolidated gross profit margin increased 240 basis points to
14.6% for the third quarter of fiscal 2021, compared to 12.2% in
the corresponding period a year ago. The increase in the
consolidated gross profit percentage was primarily due to the
impact of the increase in net sales in the current-year period
compared to the prior-year period and realization of strategic
initiatives designed to improve our margins.
Net income attributable to THOR Industries and diluted
earnings per share for the third quarter of fiscal 2021 were
$183.3 million and $3.29, respectively, compared to net income
attributable to THOR Industries and diluted earnings per share
of $24.1 million and $0.43, respectively, in the prior-year period,
and exceeds the former record for diluted earnings per share of
$2.53 in the third quarter of fiscal
2018.
Segment Results
North American Towable RVs
- North American Towable RV net sales were $1.73 billion for the third quarter of fiscal
2021, compared to $773.4 million in
the prior-year period. Of the increase in total towable RV net
sales, $19.5 million was due to the
acquisition of the Tiffin Group on December
18, 2020.
- North American Towable RV gross profit margin was 15.3% for the
third quarter of fiscal 2021, compared to 14.1% in the prior-year
period.
- North American Towable RV income before income taxes for the
third quarter of fiscal 2021 was $167.7
million, compared to $49.3
million in the third quarter of last year.
- North American Towable RV backlog was $7.43 billion at April 30,
2021, as compared to $857.9
million as of April 30,
2020.
North American Motorized RVs
- North American Motorized RV net sales were $775.4 million for the third quarter of fiscal
2021, compared to $264.0 million in
the prior-year period. Of the increase in total motorized RV net
sales, $151.7 million was due to the
acquisition of the Tiffin Group on December
18, 2020.
- North American Motorized RV gross profit margin was 12.4% for
the third quarter of fiscal 2021, compared to 10.1% in the
prior-year period.
- North American Motorized RV income before income taxes for the
third quarter of fiscal 2021 was $54.8
million, compared to $10.9
million in the third quarter of last year.
- North American Motorized RV backlog was $3.55 billion at April 30,
2021, compared to $548.0
million as of April 30,
2020.
European RVs
- European RV net sales were $894.2
million for the third quarter of fiscal 2021, compared to
$615.3 million in the prior-year
period. The sales increase of $278.9
million includes $76.7 million
due to the increase in foreign exchange rates since the prior-year
period.
- European RV gross profit margin was 13.4% for the third quarter
of fiscal 2021, compared to 10.2% in the prior-year period.
- European RV net income before income taxes for the third
quarter of fiscal 2021 was $44.0
million, compared to a net loss before income tax of
$0.2 million in the third quarter of
last year.
- European RV backlog was $3.34
billion as of April 30, 2021,
compared to $803.5 million as of
April 30, 2020.
"Our third-quarter results reflect the continued strong demand
for our RVs and the fact that we increased production volumes in
each of our business segments to address the increased demand from
our dealers. Our ability to ramp up production to address the
increased demand from our dealers is reflected in our record
results. For the third quarter of fiscal 2021, unit shipments
increased by 113% for our North American Towable segment, 148% for
our North American Motorized segment and nearly 34% for our
European RV segment. While we reported excellent results, the
supply chain continues to be a constraint for the RV industry and
THOR Industries alike, limiting our ability to further increase
production to meet increased levels of dealer demand.
THOR Industries is implementing various supply chain
strategies to minimize these constraints while also working closely
with our suppliers," said Colleen
Zuhl, THOR Industries' Senior Vice President and Chief
Financial Officer.
"Working capital has increased year-to-date due to higher levels
of accounts receivable as a result of strong sales, more unfinished
units due to supply chain constraints, the introduction of new
models which necessitate higher levels of on-hand raw materials
including chassis, and the higher production rates which also
necessitate higher levels of on-hand inventory. Year-to-date we
have generated strong operating cash flows of $175.1 million even with the increase in
working capital. We also successfully repriced our Senior Secured
Term Loan B facility, which we estimate will generate cash interest
savings of approximately $13 million
on an annualized basis. We continue to effectively manage our
balance sheet and liquidity with cash of $294.6 million and availability under our
asset-based revolving credit facility of approximately $610 million as of April
30, 2021," concluded Zuhl.
Outlook
"We continue to see robust demand for our RVs and see no signs
of demand slowing even as the economy recovers from the pandemic.
The most recent RVIA forecast projects total North American
wholesale RV shipments of approximately 576,100 units in calendar
year 2021, representing an increase of 33.8% over 2020. We are
focused on strategically increasing capacity and maximizing
production efficiencies to fulfill the growing demand from our
dealers. Ultimately, however, the number of THOR Industries units
shipped in both fiscal and calendar 2021 depends on our ability to
manage through the ongoing global supply chain issues. We have
numerous team members throughout the organization focused on
resolving near-term supply chain shortages while also pursuing
long-term solutions to avoid potential future issues," said
Martin.
"This is the first quarter in which Tiffin Group was fully
included in our quarterly results, and I'd like to say that we are
very pleased with the acquisition and with the Tiffin Team. The
integration is going as planned, and we see a bright future for our
combined companies.
"Looking ahead, we expect long-term health in the RV industry.
We see the increased interest in the outdoors and RV lifestyle as a
fundamental shift in consumer preferences, a shift that began
before the pandemic and picked up steam over the last year. It is a
trend we believe will continue to grow throughout our global
marketspace. As one example of the underlying data supporting our
optimism, we are seeing growth in two areas that have historically
been frequent paths-to-purchase for the first-time RV buyer;
outdoor camping and RV rentals. In its recently released 2021
annual camping report, Kampgrounds of America ("KOA") estimated
that there were more than 10 million new households camping in
calendar 2020 and estimated that an additional 4.3 million people
will try camping in 2021 for the first time. KOA also projects that
there will be 52.6 million camping households in 2021. In addition
to new campers, the industry saw a sizeable increase in the number
of RV rentals in 2020. The findings of THOR Industries 2020 RV
Rental Study support the belief that those who rent an RV have a
high propensity to eventually purchase an RV. These indicators,
when combined with our robust order backlog and the historical 3 to
5-year trade-in cycle of current RV owners, reaffirm our belief
that strong demand for THOR Industries products is sustainable over
the coming months and years," concluded Martin.
Supplemental Earnings Release Materials
THOR Industries has provided a comprehensive question and
answer document, as well as a PowerPoint presentation, relating to
its quarterly results and other topics. To view these materials, go
to http://ir.thorindustries.com.
About THOR Industries, Inc.
THOR Industries is the sole owner of operating subsidiaries
that, combined, represent the world's largest manufacturer of
recreational vehicles. For more information on the Company and its
products, please go to www.thorindustries.com.
Forward-Looking Statements
This release includes certain statements that are
"forward-looking" statements within the meaning of the U.S. Private
Securities Litigation Reform Act of 1995, Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. These forward-looking
statements are made based on management's current expectations and
beliefs regarding future and anticipated developments and their
effects upon THOR, and inherently involve uncertainties and risks.
These forward-looking statements are not a guarantee of future
performance. We cannot assure you that actual results will not
differ materially from our expectations. Factors which could cause
materially different results include, among others: the extent and
impact from the continuation of the COVID-19 pandemic, along with
the responses to contain the spread of the virus by various
governmental entities or other actors, which may have negative
effects on retail customer demand, our independent dealers, our
supply chain, our labor force, our production or other aspects of
our business and which may have a negative impact on our
consolidated results of operations, financial position, cash flows
and liquidity; the ability to ramp production up or down quickly in
response to rapid changes in demand while also managing costs and
market share; the effect of raw material and commodity price
fluctuations, and/or raw material, commodity or chassis supply
constraints; the impact of tariffs on material or other input
costs; the level and magnitude of warranty claims incurred;
legislative, regulatory and tax law and/or policy developments
including their potential impact on our dealers and their retail
customers or on our suppliers; the costs of compliance with
governmental regulation; legal and compliance issues including
those that may arise in conjunction with recently completed
transactions; lower consumer confidence and the level of
discretionary consumer spending; interest rate fluctuations and
their potential impact on the general economy and, specifically, on
our dealers and consumers; the impact of exchange rate
fluctuations; restrictive lending practices which could negatively
impact our independent dealers and/or retail consumers; management
changes; the success of new and existing products and services; the
ability to efficiently utilize existing production facilities;
changes in consumer preferences; the risks associated with
acquisitions, including: the pace and successful closing of an
acquisition, the integration and financial impact thereof, the
level of achievement of anticipated operating synergies from
acquisitions, the potential for unknown or understated liabilities
related to acquisitions, the potential loss of existing customers
of acquisitions and our ability to retain key management personnel
of acquired companies; a shortage of necessary personnel for
production and increasing labor costs to attract production
personnel in times of high demand; the loss or reduction of sales
to key dealers; disruption of the delivery of units to dealers;
increasing costs for freight and transportation; asset impairment
charges; cost structure changes; competition; the impact of
potential losses under repurchase or financed receivable
agreements; the potential impact of the strength of the U.S. dollar
on international demand for products priced in U.S. dollars;
general economic, market and political conditions in the various
countries in which our products are produced and/or sold; the
impact of changing emissions and other related climate change
regulations in the various jurisdictions in which our products are
produced, used and/or sold; changes to our investment and capital
allocation strategies or other facets of our strategic plan; and
changes in market liquidity conditions, credit ratings and other
factors that may impact our access to future funding and the cost
of debt.
These and other risks and uncertainties are discussed more fully
in our Quarterly Report on Form 10-Q for the quarter ended
April 30, 2021 and in Item 1A of our
Annual Report on Form 10-K for the year ended July 31, 2020.
We disclaim any obligation or undertaking to disseminate any
updates or revisions to any forward-looking statements contained in
this release or to reflect any change in our expectations after the
date hereof or any change in events, conditions or circumstances on
which any statement is based, except as required by law.
THOR INDUSTRIES,
INC.
|
SUMMARY CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
|
($000's except
share and per share data) (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
April 30,
|
|
Nine Months Ended
April 30,
|
|
|
2021
|
% Net
Sales (1)
|
|
2020
|
% Net
Sales (1)
|
|
2021
|
% Net
Sales (1)
|
|
2020
|
% Net
Sales (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
3,459,264
|
|
|
|
$
|
1,681,735
|
|
|
|
$
|
8,724,412
|
|
|
|
$
|
5,843,653
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
$
|
505,280
|
|
14.6%
|
|
$
|
205,633
|
|
12.2%
|
|
$
|
1,299,009
|
|
14.9%
|
|
$
|
770,850
|
|
13.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
231,834
|
|
6.7%
|
|
128,147
|
|
7.6%
|
|
619,786
|
|
7.1%
|
|
478,968
|
|
8.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
intangible assets
|
|
30,480
|
|
0.9%
|
|
24,079
|
|
1.4%
|
|
87,110
|
|
1.0%
|
|
72,645
|
|
1.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment
charges
|
|
—
|
|
—%
|
|
—
|
|
—%
|
|
—
|
|
—%
|
|
10,057
|
|
0.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
26,666
|
|
0.8%
|
|
26,021
|
|
1.5%
|
|
74,586
|
|
0.9%
|
|
79,331
|
|
1.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense), net
|
|
16,379
|
|
0.5%
|
|
(6,157)
|
|
(0.4)%
|
|
25,430
|
|
0.3%
|
|
(5,123)
|
|
(0.1)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
232,679
|
|
6.7%
|
|
21,229
|
|
1.3%
|
|
542,957
|
|
6.2%
|
|
124,726
|
|
2.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax provision
(benefit)
|
|
49,960
|
|
1.4%
|
|
(1,555)
|
|
(0.1)%
|
|
113,409
|
|
1.3%
|
|
23,071
|
|
0.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
182,719
|
|
5.3%
|
|
22,784
|
|
1.4%
|
|
429,548
|
|
4.9%
|
|
101,655
|
|
1.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: net (loss)
attributable to non-controlling interests
|
|
(592)
|
|
—%
|
|
(1,284)
|
|
(0.1)%
|
|
(44)
|
|
—%
|
|
(2,151)
|
|
—%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to THOR Industries, Inc.
|
|
$
|
183,311
|
|
5.3%
|
|
$
|
24,068
|
|
1.4%
|
|
$
|
429,592
|
|
4.9%
|
|
$
|
103,806
|
|
1.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
3.31
|
|
|
|
$
|
0.44
|
|
|
|
$
|
7.77
|
|
|
|
$
|
1.88
|
|
|
Diluted
|
|
$
|
3.29
|
|
|
|
$
|
0.43
|
|
|
|
$
|
7.72
|
|
|
|
$
|
1.88
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-avg. common
shares outstanding – basic
|
|
55,366,241
|
|
|
|
55,198,756
|
|
|
|
55,323,080
|
|
|
|
55,163,943
|
|
|
Weighted-avg. common
shares outstanding – diluted
|
|
55,723,378
|
|
|
|
55,392,982
|
|
|
|
55,615,107
|
|
|
|
55,337,665
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Percentages may not
add due to rounding differences
|
SUMMARY CONDENSED
CONSOLIDATED BALANCE SHEETS ($000) (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
April 30,
2021
|
|
July 31,
2020
|
|
|
|
April 30,
2021
|
|
July 31,
2020
|
Cash and
equivalents
|
|
$
|
297,462
|
|
|
$
|
541,363
|
|
|
Current
liabilities
|
|
$
|
1,951,921
|
|
|
$
|
1,515,281
|
|
Accounts receivable,
net
|
|
1,014,148
|
|
|
814,227
|
|
|
Long-term
debt
|
|
1,718,127
|
|
|
1,652,831
|
|
Inventories,
net
|
|
1,484,054
|
|
|
716,305
|
|
|
Other long-term
liabilities
|
|
285,997
|
|
|
257,779
|
|
Prepaid income taxes,
expenses and
other
|
|
50,124
|
|
|
30,382
|
|
|
Stockholders'
equity
|
|
2,757,922
|
|
|
2,345,569
|
|
Total current
assets
|
|
2,845,788
|
|
|
2,102,277
|
|
|
|
|
|
|
|
Property, plant &
equipment, net
|
|
1,158,380
|
|
|
1,107,649
|
|
|
|
|
|
|
|
Goodwill
|
|
1,577,828
|
|
|
1,476,541
|
|
|
|
|
|
|
|
Amortizable
intangible assets, net
|
|
976,261
|
|
|
914,724
|
|
|
|
|
|
|
|
Deferred income taxes
and other, net
|
|
155,710
|
|
|
170,269
|
|
|
|
|
|
|
|
Total
|
|
$
|
6,713,967
|
|
|
$
|
5,771,460
|
|
|
|
|
$
|
6,713,967
|
|
|
$
|
5,771,460
|
|
Contact
Mark Trinske, Vice President of
Investor Relations
mtrinske@thorindustries.com
(574) 970-7912
View original
content:http://www.prnewswire.com/news-releases/thor-industries-revenues-up-105-7-gross-profit-margin-improved-by-240-basis-points-and-earnings-per-share-up-665-1-for-the-third-quarter-of-fiscal-2021--301307185.html
SOURCE THOR Industries, Inc.