ELKHART, Ind., Dec. 8,
2021 /PRNewswire/ -- THOR Industries, Inc. (NYSE: THO) today
announced record results for its first fiscal quarter ended
October 31, 2021.
"Building on our record-setting fiscal 2021, THOR delivered yet
another quarter of strong financial results to begin our 2022
fiscal year. It seems the market focuses on the supply chain and
labor challenges that our industry is facing right now more than it
does our performance in the face of those challenges, but our
performance has been consistent despite those challenges. Through
outstanding operational execution, our teams continue to
successfully navigate through these challenges at record levels. In
the quarter, we delivered over 88,100 units, outpacing the RV
industry's growth rate of shipments. Our first quarter performance,
which marks a third consecutive quarter of record net sales and
diluted earnings per share, is a testament to the experience,
flexibility and agility of our operating teams and their drive to
meet the needs of our customers in a difficult and dynamic business
environment," said Bob Martin,
President and CEO of THOR Industries.
"Independent dealer sentiment remains positive and consumer
demand for our RV products remains strong. In the first quarter,
our global order backlog increased to more than $18 billion, reaffirming our view that the dealer
restocking process will still take a number of quarters to complete
and could possibly extend into calendar 2023," said Martin.
"The strategic course we have set gives us many reasons to
remain confident and optimistic about our future performance as
well. Our acquisition of Airxcel in the first quarter is a
manifestation of our bullish outlook for our industry and for THOR
in particular. This acquisition is a key piece to our strategic
positioning of the Company as we seek to strengthen our supply
chain. The Airxcel integration has gone exceedingly well, and we
continue to see a great opportunity for growth through innovation,
additional product offerings and the aftermarket business," added
Martin.
First-Quarter Financial Results
Consolidated net sales were $3.96
billion in the first quarter of fiscal 2022, compared to
$2.54 billion in the first quarter of
fiscal 2021. This year's first quarter net sales include
$2.24 billion for the North American
Towable RV segment compared to $1.39
billion in the first quarter of fiscal 2021, $925.0 million for the North American Motorized
RV segment compared to $493.9 million
in the first quarter of fiscal 2021, and $633.0 million for the European RV segment
compared to $602.5 million in the
first quarter of fiscal 2021. The increase in consolidated net
sales is primarily due to the continuing demand for RVs and our
recent acquisitions. The addition of the Tiffin Group, acquired in
December of 2020, accounted for $228.3
million of the increase in net sales for the first quarter
of fiscal 2022, while the addition of Airxcel, acquired in
September of 2021, accounted for $88.8
million of the increase in net sales for the first quarter
of fiscal 2022, net of intercompany sales.
Consolidated gross profit margin increased 170 basis points to
16.6% for the first quarter of fiscal 2022, compared to 14.9% in
the corresponding period a year ago. The increase in the
consolidated gross profit percentage was primarily driven by the
increase in net sales, a reduction in sales discounts since the
prior-year period and selective net selling price increases to
cover known and anticipated material cost increases.
Net income attributable to THOR Industries and diluted
earnings per share for the first quarter of fiscal 2022 were
$242.2 million and $4.34, respectively, compared to $113.8 million and $2.05, respectively, in the prior-year
period.
Segment Results
North American
Towable RVs
|
|
($ in
thousands)
|
Three Months Ended
October 31,
|
|
%
Change
|
|
2021
|
|
2020
|
|
Net Sales
|
$
|
2,240,834
|
|
|
$
|
1,392,044
|
|
|
61.0
|
|
Gross
Profit
|
$
|
408,539
|
|
|
$
|
219,848
|
|
|
85.8
|
|
Gross Profit Margin
%
|
18.2
|
|
|
15.8
|
|
|
|
Income Before Income
Taxes
|
$
|
266,282
|
|
|
$
|
141,179
|
|
|
88.6
|
|
|
|
|
As of October
31,
|
|
%
Change
|
($ in
thousands)
|
2021
|
|
2020
|
|
Order
Backlog
|
$
|
10,444,698
|
|
|
$
|
4,397,713
|
|
|
137.5
|
|
|
|
|
|
|
|
|
|
|
|
|
North American
Motorized RVs
|
|
($ in
thousands)
|
Three Months Ended
October 31,
|
|
%
Change
|
|
2021
|
|
2020
|
|
Net Sales
|
$
|
925,028
|
|
|
$
|
493,855
|
|
|
87.3
|
|
Gross
Profit
|
$
|
139,721
|
|
|
$
|
68,102
|
|
|
105.2
|
|
Gross Profit Margin
%
|
15.1
|
|
|
13.8
|
|
|
|
Income Before Income
Taxes
|
$
|
88,898
|
|
|
$
|
41,567
|
|
|
113.9
|
|
|
|
|
As of October
31,
|
|
%
Change
|
($ in
thousands)
|
2021
|
|
2020
|
|
Order
Backlog
|
$
|
4,277,378
|
|
|
$
|
2,215,069
|
|
|
93.1
|
|
|
|
|
|
|
|
|
|
|
|
|
The addition of the Tiffin Group, acquired on December 18, 2020, accounted for $201.2 million of the $431.2 million increase in North American
Motorized RV net sales.
European
RVs
|
|
($ in
thousands)
|
Three Months Ended
October 31,
|
|
%
Change
|
|
2021
|
|
2020
|
|
Net Sales
|
$
|
632,997
|
|
|
$
|
602,488
|
|
|
5.1
|
|
Gross
Profit
|
$
|
67,444
|
|
|
$
|
72,381
|
|
|
(6.8)
|
|
Gross Profit Margin
%
|
10.7
|
|
|
12.0
|
|
|
|
(Loss) Before Income
Taxes
|
$
|
(17,976)
|
|
|
$
|
(5,506)
|
|
|
(226.5)
|
|
|
|
|
As of October
31,
|
|
%
Change
|
($ in
thousands)
|
2021
|
|
2020
|
|
Order
Backlog
|
$
|
3,348,355
|
|
|
$
|
2,308,472
|
|
|
45.0
|
|
|
|
|
|
|
|
|
|
|
|
|
Management Commentary
"In our first fiscal quarter of 2022, we delivered another
record consolidated financial performance, reflecting the strong
and ongoing demand for our RV products as we continue to
demonstrate our ability to excel in challenging operating
environments. THOR is strategically structured to enable it to
excel during times of favorable market conditions and to outperform
when the industry faces challenges like the supply and labor
constraints the industry faces today. We are very pleased with our
first quarter gross profit margin performance of 16.6% which is an
improvement of 170 basis points from the first quarter of fiscal
2021. This increase in consolidated gross profit margin reflects
our operating excellence initiatives, an increased mix of higher
margin North American sales versus European sales this quarter and
our decision to take price adjustments ahead of anticipated
increases in our material costs. We do expect our consolidated
gross margins to see some downward pressure as global revenue mix
normalizes and cost increases continue to occur in future quarters
of fiscal 2022," said Colleen Zuhl,
THOR Industries' Senior Vice President and Chief Financial
Officer.
"During the first quarter of fiscal 2022, we issued $500 million of senior unsecured notes and
expanded our ABL borrowing capacity to $1
billion. These transactions not only enhanced our liquidity
and extended our debt maturities, but also secured access to
long-term financing at attractive rates and provided funding for
our acquisition of Airxcel. At the end of the first fiscal quarter,
we had liquidity of over $1 billion,
including approximately $336 million
in cash on hand and approximately $810
million available under our ABL, providing significant
financial flexibility moving forward as we continue to execute our
long-term strategic plan through prudent and thoughtful capital
deployment," concluded Zuhl.
Outlook
"Our first quarter financial and operational performance was a
phenomenal start to our fiscal 2022 year. As we look ahead, we
expect continued supply chain constraints, logistical challenges
and cost pressures. However, as we have consistently demonstrated,
we also expect to continue to excel at our top and bottom lines. We
remain steadfastly focused on the execution of our strategic plan
while we continue our realization of operational excellence as we
strive to meet the strong consumer demand for our products. Through
continued strategic operational execution, the integration of our
recent acquisitions, our positive outlook for the RV industry and
with record backlog levels providing visibility beyond this fiscal
year, we are confident that fiscal year 2022 will be another year
of meaningful growth for THOR," said Martin.
"Additionally, RVIA has recently increased its wholesale
shipment forecast for calendar year 2021 to more than 602,000
units, and to over 613,000 for calendar year 2022, a projected
increase of approximately 2% for next year. We agree with this
outlook and expect THOR to continue to outperform the market and to
grow at a higher rate than RVIA projects for the industry as
whole," added Martin.
"We are pleased with the excellent progress we have made toward
achieving our 2025 financial goals that we introduced in
October 2019, and we look forward to
seeing everyone at the 2022 Florida RV Supershow in January,"
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 our Quarterly Report on Form 10-Q for the quarter ended
October 31, 2021 and 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 ENDED OCTOBER 31, 2021 AND 2020
|
($000's except
share and per share data)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
October 31, (Unaudited)
|
|
|
2021
|
% Net Sales
(1)
|
|
2020
|
% Net Sales
(1)
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
3,958,224
|
|
|
|
$
|
2,537,360
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
$
|
655,424
|
|
16.6%
|
|
$
|
378,852
|
|
14.9%
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
295,883
|
|
7.5%
|
|
181,763
|
|
7.2%
|
|
|
|
|
|
|
|
Amortization of
intangible assets
|
|
33,214
|
|
0.8%
|
|
27,427
|
|
1.1%
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
20,720
|
|
0.5%
|
|
23,958
|
|
0.9%
|
|
|
|
|
|
|
|
Other income,
net
|
|
7,235
|
|
0.2%
|
|
615
|
|
—%
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
312,842
|
|
7.9%
|
|
146,319
|
|
5.8%
|
|
|
|
|
|
|
|
Income
taxes
|
|
68,039
|
|
1.7%
|
|
30,680
|
|
1.2%
|
|
|
|
|
|
|
|
Net income
|
|
244,803
|
|
6.2%
|
|
115,639
|
|
4.6%
|
|
|
|
|
|
|
|
Less: net income
attributable to non-controlling interests
|
|
2,561
|
|
0.1%
|
|
1,882
|
|
0.1%
|
|
|
|
|
|
|
|
Net income
attributable to THOR Industries, Inc.
|
|
$
|
242,242
|
|
6.1%
|
|
$
|
113,757
|
|
4.5%
|
|
|
|
|
|
|
|
Earnings per common
share
|
|
|
|
|
|
|
Basic
|
|
$
|
4.37
|
|
|
|
$
|
2.06
|
|
|
Diluted
|
|
$
|
4.34
|
|
|
|
$
|
2.05
|
|
|
|
|
|
|
|
|
|
Weighted-avg. common
shares outstanding – basic
|
|
55,422,854
|
|
|
|
55,238,164
|
|
|
Weighted-avg. common
shares outstanding – diluted
|
|
55,790,712
|
|
|
|
55,554,682
|
|
|
|
|
|
|
|
|
|
(1) Percentages may not add due to
rounding differences
|
SUMMARY CONDENSED
CONSOLIDATED BALANCE SHEETS ($000's) (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
October 31,
2021
|
|
July 31,
2021
|
|
|
|
October 31,
2021
|
|
July 31,
2021
|
Cash and
equivalents
|
|
$
|
339,297
|
|
|
$
|
448,706
|
|
|
Current
liabilities
|
|
$
|
2,036,742
|
|
|
$
|
1,794,785
|
|
Accounts receivable,
net
|
|
1,166,373
|
|
|
949,932
|
|
|
Long-term
debt
|
|
2,232,266
|
|
|
1,594,821
|
|
Inventories,
net
|
|
1,671,847
|
|
|
1,369,384
|
|
|
Other long-term
liabilities
|
|
367,521
|
|
|
316,376
|
|
Prepaid income taxes,
expenses and other
|
|
36,194
|
|
|
35,501
|
|
|
Stockholders'
equity
|
|
3,132,242
|
|
|
2,948,106
|
|
Total current
assets
|
|
3,213,711
|
|
|
2,803,523
|
|
|
|
|
|
|
|
Property, plant &
equipment, net
|
|
1,218,023
|
|
|
1,185,131
|
|
|
|
|
|
|
|
Goodwill
|
|
1,915,388
|
|
|
1,563,255
|
|
|
|
|
|
|
|
Amortizable
intangible assets, net
|
|
1,298,289
|
|
|
937,171
|
|
|
|
|
|
|
|
Deferred income taxes
and other, net
|
|
123,360
|
|
|
165,008
|
|
|
|
|
|
|
|
Total
|
|
$
|
7,768,771
|
|
|
$
|
6,654,088
|
|
|
|
|
$
|
7,768,771
|
|
|
$
|
6,654,088
|
|
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-net-sales-of-3-96-billion-and-earnings-per-share-of-4-34-for-the-first-quarter-of-fiscal-2022-and-reaffirms-positive-outlook-301439550.html
SOURCE THOR Industries, Inc.