ELKHART, Ind., Sept. 28, 2021 /PRNewswire/
-- THOR Industries, Inc. (NYSE: THO) today announced record
results for the fourth fiscal quarter and fiscal year ended
July 31, 2021.
"We are pleased to report that in a year of unprecedented
challenges, THOR posted record net sales and net income for the
fourth fiscal quarter and the full fiscal year, making it the most
profitable year in THOR's history. For the fiscal year, we sold
over 300,000 units, eclipsed $12
billion in net sales and generated net income attributable
to THOR of $11.85 per diluted share,
which far exceeds the former record for diluted earnings per share
of $8.14 set in fiscal year 2018.
These outstanding results are a testament to our team's ability to
successfully accelerate production over the course of the fiscal
year to meet surging market demand while continuing to maintain
quality, navigating continuing supply chain challenges, managing
labor constraints and ensuring the safety of our workforce," said
Bob Martin, President and CEO of
THOR Industries.
"Demand for our RV products remains very robust, continuing to
exceed production output. This sustained level of strong demand has
led to a continuation of historically low dealer inventory levels
and resulted in a new record-high backlog value of $16.86 billion as of July
31, 2021," said Martin.
Fourth-Quarter Financial Results
Net sales were $3.59 billion in
the fourth quarter of fiscal 2021, compared to $2.32 billion in the fourth quarter of fiscal
2020. This year's fourth quarter net sales include $1.73 billion for the North American Towable RV
segment, $823.1 million for the North
American Motorized RV segment and $969.9
million for the European RV segment. Consolidated gross
profit margin increased 170 basis points to 16.6% for the fourth
quarter of fiscal 2021, compared to 14.9% in the corresponding
period a year ago. The increase in the consolidated gross profit
percentage was primarily due to the increase in sales and a
reduction in sales discounts compared to the prior-year period.
Net income attributable to THOR Industries and diluted
earnings per share for the fourth quarter of fiscal 2021 were
$230.3 million and $4.12, respectively, compared to $119.2 million and $2.14, respectively, in the prior-year
period.
Fiscal Year 2021 Financial Results
Net sales for fiscal year 2021 were $12.32 billion compared to $8.17 billion for fiscal year 2020. The increase
in consolidated net sales is due to both the increase in consumer
demand and the negative impact of the onset of the COVID-19
pandemic in the prior year, which resulted in six to eight weeks of
production shutdowns at most of our facilities. The addition of the
Tiffin Group, acquired on December 18,
2020, accounted for $421.4
million of the $4.15 billion
increase in net sales, or 5.2% of the 50.8% increase.
Net income attributable to THOR in fiscal year 2021 was
$659.9 million, or $11.85 per diluted share, compared to net income
attributable to THOR of $223.0
million, or $4.02 per diluted
share, in fiscal year 2020.
The Company's annual effective income tax rate for fiscal 2021
was 21.8% compared with 18.9% for fiscal 2020. The primary reason
for the increase relates to the jurisdictional mix of foreign and
domestic pretax income between the comparable periods. Based on
existing tax regulations, the Company estimates its overall
effective income tax rate for fiscal 2022 will be between 22% and
24% before consideration of any discrete tax items. The actual
effective income tax rate will be dependent upon tax regulations
and the Company's mix of foreign and domestic pretax earnings.
Net cash provided by operating activities for fiscal 2021 was
$526.5 million compared to
$540.9 million in fiscal 2020. Net
cash provided by operating activities for fiscal 2021 was impacted
by higher working capital levels, primarily increased inventory
levels for production needs to meet the increased consumer
demand.
Segment Results
North American Towable RVs
|
Three Months Ended
July 31,
|
|
%
Change
|
|
Fiscal Years Ended
July 31,
|
|
%
Change
|
($ in
thousands)
|
2021
|
|
2020
|
|
|
2021
|
|
2020
|
|
Net Sales
|
$
|
1,730,601
|
|
|
$
|
1,182,296
|
|
|
46.4
|
|
|
$
|
6,221,928
|
|
|
$
|
4,140,482
|
|
|
50.3
|
|
Gross
Profit
|
$
|
308,928
|
|
|
$
|
196,420
|
|
|
57.3
|
|
|
$
|
1,020,908
|
|
|
$
|
619,892
|
|
|
64.7
|
|
Gross Profit Margin
%
|
17.9
|
|
|
16.6
|
|
|
|
|
16.4
|
|
|
15.0
|
|
|
|
Income Before Income
Taxes
|
$
|
202,212
|
|
|
$
|
129,198
|
|
|
56.5
|
|
|
$
|
658,964
|
|
|
$
|
336,207
|
|
|
96.0
|
|
North American Towable RV backlog was $9.28 billion at July 31,
2021, as compared to $2.76
billion as of July 31,
2020.
North American Motorized RVs
|
Three Months Ended
July 31,
|
|
%
Change
|
|
Fiscal Years Ended
July 31,
|
|
%
Change
|
($ in
thousands)
|
2021
|
|
2020
|
|
|
2021
|
|
2020
|
|
Net Sales
|
$
|
823,148
|
|
|
$
|
366,492
|
|
|
124.6
|
|
|
$
|
2,669,391
|
|
|
$
|
1,390,098
|
|
|
92.0
|
|
Gross
Profit
|
$
|
106,247
|
|
|
$
|
44,348
|
|
|
139.6
|
|
|
$
|
345,755
|
|
|
$
|
149,995
|
|
|
130.5
|
|
Gross Profit Margin
%
|
12.9
|
|
|
12.1
|
|
|
|
|
13.0
|
|
|
10.8
|
|
|
|
Income Before Income
Taxes
|
$
|
62,289
|
|
|
$
|
24,337
|
|
|
155.9
|
|
|
$
|
202,057
|
|
|
$
|
71,943
|
|
|
180.9
|
|
The addition of the Tiffin Group, acquired on December 18, 2020, accounted for $373.0 million of the $1.28 billion increase in net sales, or 26.8% of
the 92.0% increase for fiscal 2021.
North American Motorized RV backlog was $4.01 billion at July 31,
2021, compared to $1.45
billion as of July 31,
2020.
European RVs
|
Three Months Ended
July 31,
|
|
%
Change
|
|
Fiscal Years Ended
July 31,
|
|
%
Change
|
($ in
thousands)
|
2021
|
|
2020
|
|
|
2021
|
|
2020
|
|
Net Sales
|
$
|
969,888
|
|
|
$
|
739,926
|
|
|
31.1
|
|
|
$
|
3,200,079
|
|
|
$
|
2,485,391
|
|
|
28.8
|
|
Gross
Profit
|
$
|
153,678
|
|
|
$
|
97,756
|
|
|
57.2
|
|
|
$
|
440,855
|
|
|
$
|
304,388
|
|
|
44.8
|
|
Gross Profit Margin
%
|
15.8
|
|
|
13.2
|
|
|
|
|
13.8
|
|
|
12.2
|
|
|
|
Income Before Income
Taxes
|
$
|
67,873
|
|
|
$
|
28,426
|
|
|
138.8
|
|
|
$
|
116,576
|
|
|
$
|
9,850
|
|
|
1,083.5
|
|
European RV backlog was $3.56
billion as of July 31, 2021,
compared to $1.53 billion as of
July 31, 2020.
Management Commentary
"Our fiscal 2021 financial performance reflects the strong
demand for RV products and demonstrates our ability to manage
through a challenging operating environment. Our team did an
exceptional job of proactively managing ongoing supply chain
constraints, logistical bottlenecks and labor shortages throughout
the year to meet this strong market demand and drive strong
year-over-year margin improvement and record annual income before
income taxes across each of our business segments," said
Colleen Zuhl, THOR Industries'
Senior Vice President and Chief Financial Officer.
"Despite higher working capital levels, which are primarily due
to increases in inventory and accounts receivable, our strong
operating results generated cash flow from operations of
$526.5 million in fiscal 2021.
As planned, in the fiscal fourth quarter, we fully repaid the ABL
borrowings incurred during the second quarter of fiscal 2021 in
connection with the Tiffin Group acquisition. As of July 31, 2021, we had cash and cash equivalents
totaling $445.9 million and
approximately $720 million available
for borrowing under the then-existing $750
million ABL.
"Subsequent to fiscal 2021 and effective September 1, 2021, THOR acquired AirX
Intermediate, Inc. ("Airxcel"), a leading supplier of OEM and
aftermarket RV parts and accessories, for $750 million, funded through a combination of
available cash and $625 million from
THOR's expanded ABL facility. Concurrent with the Airxcel
acquisition, we increased our ABL agreement to $1 billion which provides us with excellent
liquidity and significant financial flexibility moving forward.
"Looking ahead, our cash utilization priorities remain
consistent with our stated capital allocation priorities, namely,
investing in our businesses, reducing our debt obligations, paying
and, over time, growing our dividends,funding strategic
opportunities, repurchasing shares on a strategic and opportunistic
basis and paying special dividends as determined by our Board of
Directors," concluded Zuhl.
Outlook for Fiscal Year 2022
"THOR is carrying great momentum into fiscal year 2022,
supported by a number of positive factors. Interest from new RV
buyers and order activity continues to be robust across each of our
business segments. We have record backlogs supported by North
American dealer inventory levels that are 9% lower than the
already historically low levels from a year ago and 44% lower than
they were two years ago. Dealers remain confident in the long-term
outlook for the RV industry and continue to invest in growing their
businesses as the industry sees continued buying interest from both
the first-time and repeat RV buyers," said Martin.
"Also, within the last several months, we have had two
businesses, the Tiffin Group and Airxcel, join the THOR team, and
we expect them to contribute meaningfully to our operating results
in fiscal 2022 and going forward. Airxcel, which is an additional
investment in the supplier space, complements our existing Postle
Aluminum subsidiary and is intended to preserve and grow the RV
supply chain for the betterment of THOR and the RV industry
alike.
"Entering our 2022 fiscal year, we continue to operate in an
uncertain time. The rise, fall and rise again of reported COVID-19
cases around the world, supply chain shortages which change almost
weekly and a very tight labor market across the country, especially
in northern Indiana where most of
our production facilities are located, all demand that we continue
to focus on managing through these challenges to produce and
deliver the innovative and high-quality RVs for which we are known.
Our team has performed exceedingly well through these challenges,
and we remain confident in their ability to continue to do so.
"While we expect these factors will continue to present
challenges in fiscal 2022, our positive long-term outlook for the
RV industry and THOR Industries remains unchanged. We believe the
recent RVIA most-likely estimate of approximately 577,200 unit
wholesale shipments in calendar 2021 and its forecast of a 4.0%
increase in calendar 2022 wholesale shipments over calendar 2021
shipments are reasonable," 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, or its variants,
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; 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 dependence on a small group of suppliers
for certain components used in production; the level and magnitude
of warranty and recall claims incurred; the ability of our
suppliers to financially support any defects in their products;
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; public perception of and the costs related
to environmental, social and governance matters; 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 maintain strong brands and develop
innovative products that meet consumer demands; 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; competition; the impact
of potential losses under repurchase 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 Item 1A of our Annual Report on Form 10-K for the year ended
July 31, 2021.
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.
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
|
FOR THE THREE
MONTHS AND FISCAL YEARS ENDED JULY 31, 2021 AND 2020
|
($000's except
share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
July 31, (Unaudited)
|
|
Fiscal Years Ended
July 31,
|
|
|
2021
|
% Net
Sales (1)
|
|
2020
|
% Net
Sales (1)
|
|
2021
|
% Net
Sales (1)
|
|
2020
|
% Net
Sales (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
3,592,968
|
|
|
|
$
|
2,324,280
|
|
|
|
$
|
12,317,380
|
|
|
|
$
|
8,167,933
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
$
|
595,964
|
|
16.6%
|
|
$
|
347,357
|
|
14.9%
|
|
$
|
1,894,973
|
|
15.4%
|
|
$
|
1,118,207
|
|
13.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
250,130
|
|
7.0%
|
|
155,151
|
|
6.7%
|
|
869,916
|
|
7.1%
|
|
634,119
|
|
7.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
intangible assets
|
|
30,073
|
|
0.8%
|
|
24,589
|
|
1.1%
|
|
117,183
|
|
1.0%
|
|
97,234
|
|
1.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment
charges
|
|
—
|
|
—%
|
|
—
|
|
—%
|
|
—
|
|
—%
|
|
10,057
|
|
0.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
18,959
|
|
0.5%
|
|
24,875
|
|
1.1%
|
|
93,545
|
|
0.8%
|
|
104,206
|
|
1.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income,
net
|
|
4,822
|
|
0.1%
|
|
5,428
|
|
0.2%
|
|
30,252
|
|
0.2%
|
|
305
|
|
—%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
301,624
|
|
8.4%
|
|
148,170
|
|
6.4%
|
|
844,581
|
|
6.9%
|
|
272,896
|
|
3.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
taxes
|
|
70,302
|
|
2.0%
|
|
28,441
|
|
1.2%
|
|
183,711
|
|
1.5%
|
|
51,512
|
|
0.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
231,322
|
|
6.4%
|
|
119,729
|
|
5.2%
|
|
660,870
|
|
5.4%
|
|
221,384
|
|
2.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: net income
(loss) attributable to non-controlling interests
|
|
1,042
|
|
—%
|
|
561
|
|
—%
|
|
998
|
|
—%
|
|
(1,590)
|
|
—%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to THOR Industries, Inc.
|
|
$
|
230,280
|
|
6.4%
|
|
$
|
119,168
|
|
5.1%
|
|
$
|
659,872
|
|
5.4%
|
|
$
|
222,974
|
|
2.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
4.16
|
|
|
|
$
|
2.16
|
|
|
|
$
|
11.93
|
|
|
|
$
|
4.04
|
|
|
Diluted
|
|
$
|
4.12
|
|
|
|
$
|
2.14
|
|
|
|
$
|
11.85
|
|
|
|
$
|
4.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-avg. common
shares outstanding – basic
|
|
55,366,241
|
|
|
|
55,198,756
|
|
|
|
55,333,959
|
|
|
|
55,172,694
|
|
|
Weighted-avg. common
shares outstanding – diluted
|
|
55,903,339
|
|
|
|
55,576,318
|
|
|
|
55,687,253
|
|
|
|
55,397,376
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Percentages may not add due to
rounding differences
|
SUMMARY CONDENSED
CONSOLIDATED BALANCE SHEETS ($000's)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
July 31,
2021
|
|
July 31,
2020
|
|
|
|
July 31,
2021
|
|
July 31,
2020
|
Cash and
equivalents
|
|
$
|
448,706
|
|
|
$
|
541,363
|
|
|
Current
liabilities
|
|
$
|
1,794,785
|
|
|
$
|
1,515,281
|
|
Accounts receivable,
net
|
|
949,932
|
|
|
814,227
|
|
|
Long-term
debt
|
|
1,594,821
|
|
|
1,652,831
|
|
Inventories,
net
|
|
1,369,384
|
|
|
716,305
|
|
|
Other long-term
liabilities
|
|
316,376
|
|
|
257,779
|
|
Prepaid income taxes,
expenses and other
|
|
35,501
|
|
|
30,382
|
|
|
Stockholders'
equity
|
|
2,948,106
|
|
|
2,345,569
|
|
Total current
assets
|
|
2,803,523
|
|
|
2,102,277
|
|
|
|
|
|
|
|
Property, plant &
equipment, net
|
|
1,185,131
|
|
|
1,107,649
|
|
|
|
|
|
|
|
Goodwill
|
|
1,563,255
|
|
|
1,476,541
|
|
|
|
|
|
|
|
Amortizable
intangible assets, net
|
|
937,171
|
|
|
914,724
|
|
|
|
|
|
|
|
Deferred income taxes
and other, net
|
|
165,008
|
|
|
170,269
|
|
|
|
|
|
|
|
Total
|
|
$
|
6,654,088
|
|
|
$
|
5,771,460
|
|
|
|
|
$
|
6,654,088
|
|
|
$
|
5,771,460
|
|
Contact
Mark Trinske, Vice President of
Investor Relations
mtrinske@thorindustries.com
(574) 970-7912
View original
content:https://www.prnewswire.com/news-releases/thor-industries-reports-record-fiscal-2021-results-as-net-sales-top-12-3-billion-with-earnings-per-share-of-11-85--301386090.html
SOURCE THOR Industries, Inc.