ELKHART, Ind., Dec. 21, 2021 /PRNewswire/ -- THOR Industries,
Inc. (NYSE: THO) today announced that its Board of Directors has
authorized the repurchase of up to $250
million of its Common Stock. The Company may purchase shares
on a discretionary basis from time to time through open market
purchases, privately negotiated transactions or other means. The
timing and amount of any transactions will be at the Company's
discretion subject to the market price of the stock, general market
and economic conditions, cash availability, applicable legal
requirements, and other growth investment opportunities. The
repurchase authorization will expire December 21, 2024.
"Our strong earnings growth positions us to drive value back to
our shareholders. Given our current stock price, this buyback
program offers the best vehicle to accomplish that objective. We
believe there is a material misalignment between our value and our
stock price. Given our favorable outlook on the industry and in our
business, there is no better investment opportunity for THOR than
its own shares at the current market price. Our business has
historically generated strong cash flow, and as we continue to
implement our balanced, long-term capital allocation plan, share
buybacks are an additional, important tool for us to enhance
shareholder value. While we intend to exercise our authority
opportunistically in the near-term, we intend to incorporate share
repurchases into our permanent capital allocation strategy which
includes our continued focus on the paying down our
acquisition-related debt." said Bob
Martin, President and CEO of THOR Industries.
THOR Senior Vice President and CFO Colleen Zuhl commented, "Pursuant to our capital
allocation plan, in fiscal year 2021 we invested $129 million into capital expenditures designed
to grow our business and drive future efficiencies and margin
expansion. We also returned $91
million in capital to our shareholders through dividend
payments in the fiscal year. As we contemplate future share
repurchases, we will evaluate the potential investment as we would
an investment in organic growth or acquisition: choosing the option
that has the potential to generate the best return on invested
capital. Given the current stock price, we believe THOR shares
represent the best risk-adjusted returns for our cash."
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.
Contact
Mark Trinske, Vice President of
Investor Relations
mtrinske@thorindustries.com
(574) 970-7912
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SOURCE THOR Industries, Inc.