THOR Industries, Inc. (NYSE: THO) today announced record financial
results for its third fiscal quarter ended April 30, 2022.
“I am pleased to report this quarter that THOR
once again managed through an uncertain business environment to
achieve record net sales and profitability across many of our
brands. Our teams have done an exceptional job navigating continued
supply chain and labor constraints while still fulfilling ongoing
dealer and consumer demand for our products. Net sales for our
fiscal third quarter increased 34.6%, net income attributable to
THOR grew 89.9% and our gross margin improved by 270 basis points
compared to the fiscal third quarter of 2021. Our growth and
profitability is a result of our ongoing commitment to prudent
operational and financial management,” said Bob Martin, President
and CEO of THOR Industries.
“At the end of our fiscal third quarter, due to
the outstanding production efforts of our team members, our
independent dealer inventories of towable RV products were at more
historically normal levels. Due to continued high demand for our
motorized RVs and persistent global chassis supply constraints, our
independent dealer inventories of motorized products were still
below optimal levels. We do not expect motorized RV inventory
levels to return to more historically normal levels until early in
calendar 2023.
“We continue to make progress in managing and
fulfilling our order backlog. In the third quarter, we decreased
our backlog by more than 3% to $13.88 billion compared to the third
fiscal quarter of 2021. This calendar year, we have reduced the
backlog, which was $17.73 billion as of January 31, 2022, by 21.7%
at the end of our third fiscal quarter on April 30, 2022. We are
very pleased with our progress, and we believe that the current
backlog, while still elevated, is indicative of healthy long-term
demand for our RV products. As we have reported, we actively verify
the backlog on an ongoing basis and will continue to do so to make
sure that it is aligned with both our dealers’ inventory needs and
retail demand. To be clear, the current level of our backlog
remains elevated, and we continue to be focused on opportunities to
lower it to more traditional levels.
“We remain disciplined in aligning production to
meet current demand without overproducing and overloading our
independent dealer channel. In order to align production with
retail demand, we pulled back on towable production in the latter
half of our fiscal third quarter. On a historical basis, we have
prudently and proactively managed our production rates
category-by-category based on market conditions, and we are doing
so again today,” said Martin.
Third-Quarter Financial
Results
Consolidated net sales were $4.66 billion in the
third quarter of fiscal 2022, compared to $3.46 billion in the
third quarter of fiscal 2021. The increase in consolidated net
sales was largely impacted by the increase in the average sales
price of our units in addition to the increase in units sold. The
addition of Airxcel, acquired in September 2021, accounted for
$154.0 million of the increase in net sales for the third quarter
of fiscal 2022, net of intercompany sales.
Consolidated gross profit margin increased 270
basis points to 17.3% for the third quarter of fiscal 2022, from
14.6% in the corresponding period a year ago driven by
margin-focused operational improvements and the low discount
environment.
Net income attributable to THOR Industries and
diluted earnings per share for the third quarter of fiscal 2022
were $348.1 million and $6.32, respectively, compared to $183.3
million and $3.29, respectively, for the prior-year period.
Segment Results
North American Towable RVs
($ in thousands) |
Three Months Ended April 30, |
|
% Change |
|
Nine Months Ended April 30, |
|
% Change |
|
2022 |
|
2021 |
|
|
2022 |
|
2021 |
|
Net Sales |
$ |
2,640,137 |
|
$ |
1,726,102 |
|
53.0 |
|
$ |
6,866,059 |
|
$ |
4,491,327 |
|
52.9 |
Gross Profit |
$ |
453,907 |
|
$ |
264,476 |
|
71.6 |
|
$ |
1,239,162 |
|
$ |
711,980 |
|
74.0 |
Gross Profit Margin % |
|
17.2 |
|
|
15.3 |
|
|
|
|
18.0 |
|
|
15.9 |
|
|
Income Before Income Taxes |
$ |
326,697 |
|
$ |
167,693 |
|
94.8 |
|
$ |
868,874 |
|
$ |
456,752 |
|
90.2 |
|
As of April 30, |
|
% Change |
($ in thousands) |
2022 |
|
2021 |
|
Order Backlog |
$ |
6,899,675 |
|
$ |
7,429,729 |
|
(7.1 |
) |
North American Motorized RVs
($ in thousands) |
Three Months Ended April 30, |
|
% Change |
|
Nine Months Ended April 30, |
|
% Change |
|
2022 |
|
2021 |
|
|
2021 |
|
2020 |
|
Net Sales |
$ |
1,053,045 |
|
$ |
775,393 |
|
35.8 |
|
$ |
2,954,879 |
|
$ |
1,846,243 |
|
60.0 |
Gross Profit |
$ |
173,904 |
|
$ |
96,288 |
|
80.6 |
|
$ |
469,906 |
|
$ |
239,508 |
|
96.2 |
Gross Profit Margin % |
|
16.5 |
|
|
12.4 |
|
|
|
|
15.9 |
|
|
13.0 |
|
|
Income Before Income Taxes |
$ |
116,293 |
|
$ |
54,780 |
|
112.3 |
|
$ |
309,228 |
|
$ |
139,768 |
|
121.2 |
|
As of April 30, |
|
% Change |
($ in thousands) |
2022 |
|
2021 |
|
Order Backlog |
$ |
4,100,040 |
|
$ |
3,550,286 |
|
15.5 |
European RVs
($ in thousands) |
Three Months Ended April 30, |
|
% Change |
|
Nine Months Ended April 30, |
|
% Change |
|
2022 |
|
2021 |
|
|
2022 |
|
2021 |
|
Net Sales |
$ |
724,002 |
|
$ |
894,240 |
|
(19.0 |
) |
|
$ |
2,080,729 |
|
$ |
2,230,191 |
|
(6.7 |
) |
Gross Profit |
$ |
99,845 |
|
$ |
120,159 |
|
(16.9 |
) |
|
$ |
257,418 |
|
$ |
287,177 |
|
(10.4 |
) |
Gross Profit Margin % |
|
13.8 |
|
|
13.4 |
|
|
|
|
12.4 |
|
|
12.9 |
|
|
Income Before Income Taxes |
$ |
20,559 |
|
$ |
43,993 |
|
(53.3 |
) |
|
$ |
12,248 |
|
$ |
48,703 |
|
(74.9 |
) |
|
As of April 30, |
|
% Change |
($ in thousands) |
2022 |
|
2021 |
|
Order Backlog |
$ |
2,878,052 |
|
$ |
3,344,033 |
|
(13.9 |
) |
Management Commentary
“We achieved yet another quarter of record net
sales and earnings despite ongoing chassis supply constraints which
limited our production volumes and prevented us from meeting the
market demand for motorized products in both North America and
Europe which prevented us from posting an even stronger quarter.
Our focus on long-term margin improvement along with lower
discounts resulted in our outstanding consolidated gross profit
margin of 17.3% for the fiscal third quarter, and we are confident
that our core margin improvement strategies will sustainably
improve our margin profile for the long run. While margin levels
have been positively impacted by a low discount environment in the
last couple of quarters, as the industry returns to a more
normalized discounting environment, our 2025 goal of 16%
consolidated gross margin is still attainable,” said Colleen Zuhl,
Senior Vice President and Chief Financial Officer.
“Our record fiscal 2022 third quarter operating
results helped generate strong net cash from operations. Net cash
provided by operating activities for the nine months ended April
30, 2022 was $637.5 million as compared to net cash used in
operating activities of $175.1 million for the nine months ended
April 30, 2021. We remain committed to a balanced approach to
capital deployment as we leverage our strong cash flow to enhance
the long-term value of our company. During the third quarter of
fiscal 2022, in addition to organic reinvestment into our
operations, we continued to reduce our overall debt with principal
payments of $124.6 million on our Term Loan. Subsequent to the end
of the third fiscal quarter, we made additional principal payments
of $140.5 million on our Term Loan, and our remaining principal
balance on the Term Loan as of June 3, 2022 is approximately $1.22
billion.
During the three months ended April 30, 2022, we
also repurchased 499,106 shares of our common stock at a
weighted-average price of $80.12 for an aggregate purchase price of
approximately $40.0 million. Since announcing our $250.0 million
share buyback authorization in December 2021, we have now
repurchased nearly 1.1 million shares of our common stock at a
weighted-average price of $90.20 for a total aggregate purchase
price of $98.3 million. As of April 30, 2022, the remaining amount
of the Company’s common stock that may be repurchased under this
buyback authorization is $151.7 million,” added Zuhl.
“In balance with margin improvement, we are
focused on stabilizing and growing market share. As an example, we
have aggressively developed and introduced a comprehensive line of
Class B motorhomes across our brands for delivery to our
independent dealer network. We did not have any meaningful share in
this segment when we started a few years ago, but according to
first quarter data for calendar 2022 from Statistical Surveys,
Inc., we have taken significant market share and are now the #1 RV
manufacturer within the North American Class B motorhome category.
When combined with our European sales of campervans, which are
European Class B equivalents, we are also the global leader in this
segment – the hottest segment currently within the RV industry. It
is a testament to our ability to use our scale and innovation to
quickly grow in a new market segment. In addition, with this
exciting news, as of the end of the quarter, we are now the market
share leader in every North American RV product category in which
we compete,” added Todd Woelfer, Senior Vice President and Chief
Operating Officer.
Outlook
“The RV industry’s calendar 2022 retail selling
season has been impacted by the current macroeconomic conditions
faced by consumers, and while North American industry retail
towable demand is anticipated to be lower than the historically
high levels of recent quarters, it remains robust as enthusiasm for
the RV lifestyle continues to grow. Motorized industry retail
demand continues to outpace the industry’s ability to produce given
the limitations on chassis supply. Industry retail registrations in
the first calendar quarter of 2022, while below the record levels
of 2021, exceeded both 2020 and 2019 registrations in both North
America and Germany. We believe retail demand for the remainder of
our Fiscal Year 2022 and the beginning of Fiscal 2023 will be
strong, barring additional macroeconomic impacts, and we expect
calendar year 2022 North American RV industry retail sales of
between 460,000 and 480,000 units, which would represent one of the
best years of North American RV retail sales on record,” continued
Woelfer.
“Based on the recent moderation of North
American retail demand, the RV Industry Association (‘RVIA’)
recently reduced its North American wholesale forecast for calendar
year 2022 shipments to be between 537,800 and 561,900 units with a
most likely total of 549,900 units. We agree with the revised lower
end of the wholesale RVIA’s forecast, and we believe it is in
alignment with our forecasted RV industry retail sales as a number
of the wholesale units shipped so far this year were used to
restock dealer towable inventories to more normalized levels.
Looking ahead to the second half of the calendar year, we expect RV
Industry wholesale shipments and retail RV sales to be closer to
one-to-one parity, as we work to manage wholesale production to
align with retail demand.
“As the world’s leading RV manufacturer, we
recognize the importance of maintaining production discipline as we
strive to fulfill dealer orders that are in balance with retail
sales forecasts. Our production discipline is greatly valued among
our dealer partners as we work to protect the long-term interests
of our customers and the industry,” concluded Woelfer.
“As always, we remain focused on driving growth,
profitability and long-term value for all of our stakeholders. We
are currently implementing many strategic and innovative
initiatives to expand our industry leadership position in fiscal
year 2023 and beyond. We look forward to sharing our long-term
vision, priorities and financial targets with you at our Investor
Day in late June,” added 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
companies which, 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 impact of
inflation on the cost of our products as well as on general
consumer demand; the effect of raw material and commodity price
fluctuations, and/or raw material, commodity or chassis supply
constraints; the impact of war, military conflict, terrorism and/or
cyber-attacks, including state-sponsored attacks; the impact of
sudden or significant adverse changes in the cost and/or
availability of energy or fuel, including those caused by
geopolitical events, on our costs of operation, on raw material
prices, on our independent dealers or on retail customers; the
impact of sudden or significant adverse changes in the cost and/or
availability of energy or fuel, including those caused by
geopolitical events, on our costs of operation, on raw material
prices, on our independent dealers or on retail customers; the
dependence on a small group of suppliers for certain components
used in production, including chassis; interest rate fluctuations
and their potential impact on the general economy and,
specifically, on our profitability and on our independent dealers
and consumers; 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 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 independent dealers, retail
customers or on our suppliers; the costs of compliance with
governmental regulation; the impact of an adverse outcome or
conclusion related to current or future litigation or regulatory
investigations; the impact of an adverse outcome or conclusion
related to current or future litigation or regulatory
investigations; 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; 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 independent dealers; disruption of the delivery of
units to independent 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 April 30, 2022 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 AND NINE MONTHS ENDED APRIL 30, 2022 AND
2021 |
($000’s except share and per share data)
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended April 30, |
|
Nine Months Ended April 30, |
|
|
|
2022 |
|
% Net Sales (1) |
|
|
2021 |
|
% Net Sales (1) |
|
|
2022 |
|
% Net Sales (1) |
|
|
2021 |
|
% Net Sales (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
|
$ |
4,657,517 |
|
|
|
$ |
3,459,264 |
|
|
|
$ |
12,490,759 |
|
|
|
$ |
8,724,412 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
$ |
807,445 |
|
17.3 |
% |
|
$ |
505,280 |
|
14.6 |
% |
|
$ |
2,138,143 |
|
17.1 |
% |
|
$ |
1,299,009 |
|
14.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses |
|
|
281,676 |
|
6.0 |
% |
|
|
231,834 |
|
6.7 |
% |
|
|
845,009 |
|
6.8 |
% |
|
|
619,786 |
|
7.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangible assets |
|
|
40,725 |
|
0.9 |
% |
|
|
30,480 |
|
0.9 |
% |
|
|
117,288 |
|
0.9 |
% |
|
|
87,110 |
|
1.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
|
22,289 |
|
0.5 |
% |
|
|
26,666 |
|
0.8 |
% |
|
|
67,516 |
|
0.5 |
% |
|
|
74,586 |
|
0.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income, net |
|
|
(348 |
) |
— |
% |
|
|
16,379 |
|
0.5 |
% |
|
|
13,172 |
|
0.1 |
% |
|
|
25,430 |
|
0.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
|
462,407 |
|
9.9 |
% |
|
|
232,679 |
|
6.7 |
% |
|
|
1,121,502 |
|
9.0 |
% |
|
|
542,957 |
|
6.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes |
|
|
116,389 |
|
2.5 |
% |
|
|
49,960 |
|
1.4 |
% |
|
|
265,046 |
|
2.1 |
% |
|
|
113,409 |
|
1.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
346,018 |
|
7.4 |
% |
|
|
182,719 |
|
5.3 |
% |
|
|
856,456 |
|
6.9 |
% |
|
|
429,548 |
|
4.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: net income (loss) attributable to non-controlling
interests |
|
|
(2,033 |
) |
— |
% |
|
|
(592 |
) |
— |
% |
|
|
(405 |
) |
— |
% |
|
|
(44 |
) |
— |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to THOR Industries, Inc. |
|
$ |
348,051 |
|
7.5 |
% |
|
$ |
183,311 |
|
5.3 |
% |
|
$ |
856,861 |
|
6.9 |
% |
|
$ |
429,592 |
|
4.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
6.34 |
|
|
|
$ |
3.31 |
|
|
|
$ |
15.50 |
|
|
|
$ |
7.77 |
|
|
Diluted |
|
$ |
6.32 |
|
|
|
$ |
3.29 |
|
|
|
$ |
15.44 |
|
|
|
$ |
7.72 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-avg. common shares outstanding – basic |
|
|
54,906,356 |
|
|
|
|
55,366,241 |
|
|
|
|
55,278,320 |
|
|
|
|
55,323,080 |
|
|
Weighted-avg. common shares outstanding – diluted |
|
|
55,068,783 |
|
|
|
|
55,723,378 |
|
|
|
|
55,507,023 |
|
|
|
|
55,615,107 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Percentages may not add due to rounding differences |
SUMMARY CONDENSED CONSOLIDATED BALANCE SHEETS ($000’s)
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
April 30,2022 |
|
July 31,2021 |
|
|
|
April 30,2022 |
|
July 31,2021 |
Cash and equivalents |
|
$ |
331,979 |
|
$ |
448,706 |
|
Current liabilities |
|
$ |
1,971,657 |
|
$ |
1,794,785 |
Accounts receivable, net |
|
|
1,246,798 |
|
|
949,932 |
|
Long-term debt |
|
|
1,983,596 |
|
|
1,594,821 |
Inventories, net |
|
|
1,734,079 |
|
|
1,369,384 |
|
Other long-term liabilities |
|
|
339,064 |
|
|
316,376 |
Prepaid income taxes, expenses and other |
|
|
45,658 |
|
|
35,501 |
|
Stockholders’ equity |
|
|
3,441,183 |
|
|
2,948,106 |
Total current assets |
|
|
3,358,514 |
|
|
2,803,523 |
|
|
|
|
|
|
Property, plant & equipment, net |
|
|
1,233,907 |
|
|
1,185,131 |
|
|
|
|
|
|
Goodwill |
|
|
1,834,873 |
|
|
1,563,255 |
|
|
|
|
|
|
Amortizable intangible assets, net |
|
|
1,171,149 |
|
|
937,171 |
|
|
|
|
|
|
Deferred income taxes and other, net |
|
|
137,057 |
|
|
165,008 |
|
|
|
|
|
|
Total |
|
$ |
7,735,500 |
|
$ |
6,654,088 |
|
|
|
$ |
7,735,500 |
|
$ |
6,654,088 |
Contacts:
Mark TrinskeVice President of Investor
Relationsmtrinske@thorindustries.com(574) 970-7912
Michael Cieslak, CFAInvestor Relations
Managermcieslak@thorindustries.com(574) 294-7724
Thor Industries (NYSE:THO)
과거 데이터 주식 차트
부터 6월(6) 2024 으로 7월(7) 2024
Thor Industries (NYSE:THO)
과거 데이터 주식 차트
부터 7월(7) 2023 으로 7월(7) 2024