Thor Announces Financial Results for Second Quarter and Six Months, Strong Backlog

ELKHART, Ind., March 20, 2014 /PRNewswire/ — Thor Industries, Inc. (NYSE:THO)
today announced financial results for the second quarter and six months ended
January 31, 2014. Highlights of the Company’s financial results follow:

— Sales from continuing operations for the second quarter of fiscal 2014
were $635.3 million, down slightly from $636.6 million in the second
quarter last year, due in large part to severe winter weather which
adversely affected operations during the quarter.
— Gross profit margins improved to 11.1% in the second quarter compared to
10.6% in the prior year period.
— Net income from continuing operations for the second quarter was $17.2
million, down 9% from $19.0 million in the prior-year second quarter.
Including the discontinued operations of Thor’s Bus business, net income
for the second quarter was $16.2 million, down 19% from $19.9 million in
the second quarter of fiscal 2013.
— Diluted earnings per share (EPS) from continuing operations for the
second quarter was $0.32, down 11% from $0.36 in the second quarter last
year. Including the discontinued operations of Thor’s Bus business,
diluted EPS for the second quarter was $0.30, down 19% from $0.37 in the
second quarter of fiscal 2013.
— Sales from continuing operations for the six months ended January 31,
2014 were $1.44 billion, up 3% from $1.40 billion in the prior year.
— Net income from continuing operations for the six months ended January
31, 2014 was $53.6 million, up 12% compared to $47.8 million in the
first six months of fiscal 2013. Including discontinued operations, net
income for the six months was $57.3 million, up 13% from $50.9 million
in the first six months of the prior year.
— Diluted EPS from continuing operations for the six months ended January
31, 2014 was $1.01, up 12% from $0.90 in the first six months of the
prior year. Including discontinued operations, diluted EPS for the six
months was $1.07, up 11% from $0.96 in the first six months of fiscal
2013.
“Despite the impact of the severe winter weather on our results in the quarter,
we remain optimistic about our markets, our long-term strategic goals and our
expectations for a year of continued growth in fiscal 2014,” said Bob Martin,
Thor President and CEO. “As we work through our backlog in both towables and
motorized we expect to make up for the second quarter weather delays throughout
the remainder of our fiscal year. We are making considerable progress in
establishing an appropriate footprint to meet the growing demand for our
products, including the recently announced addition of another prime production
facility to support our motorized growth. Given the success of early retail
shows and the strength of our dealer base, our expanded production
infrastructure will be helpful as we work to meet peak seasonal demand over the
next two quarters,” he added.

Second Quarter Segment Highlights:

— Towable RV sales were $472.5 million for the second quarter, down 10%
from $522.8 million in the prior year period. Towable RV income before
tax was $18.9 million, down 21% from $24.1 million in the second quarter
last year, primarily as a result of the decrease in sales.
— Motorized RV sales were $162.8 million for the second quarter, up 43%
from $113.8 million in the prior year second quarter. Motorized RV
income before tax was $11.2 million, up 63% from $6.9 million last year,
which was driven primarily by increased sales volumes.
— Consolidated backlog on January 31, 2014 was $845.2 million, up 37% from
$616.6 million at the end of the second quarter last year. Towable RV
backlog increased 34% to $501.9 million, compared to $375.4 million at
the end of the second quarter of fiscal 2013. Motorized RV backlog
increased 42% to $343.3 million from $241.2 million a year earlier.
“Although second quarter sales were somewhat lower than a year ago, Thor’s gross
margins expanded during the quarter even in the face of the disruption
associated with the harsh winter weather, reflecting our ongoing efforts to
improve profitability,” said Peter B. Orthwein, Thor Executive Chairman. “We
remain committed to driving our top-line growth while balancing the need to
control costs and improve operating efficiency as keys to our success. With
strong demographics supporting growth in our markets, innovative new products to
meet consumer demand, enhanced infrastructure to drive production and a robust
dealer base, we are optimistic about our prospects for the remainder of the
fiscal year.”

About Thor Industries, Inc.

Thor is the sole owner of operating subsidiaries that, combined, represent one
of the world’s largest manufacturers of recreational vehicles.

This release includes certain statements that are “forward looking” statements
within the meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”). These forward looking statements involve uncertainties and risks. There
can be no assurance that actual results will not differ from our expectations.
Factors which could cause materially different results include, among others,
price fluctuations, material or chassis supply restrictions, legislative and
regulatory developments, the costs of compliance with increased governmental
regulation, legal issues, the potential impact of increased tax burdens on our
dealers and retail consumers, lower consumer confidence and the level of
discretionary consumer spending, interest rate fluctuations, restrictive lending
practices, recent management changes, the success of new product introductions,
the pace of obtaining and producing at new production facilities, the pace of
acquisitions, the integration of new acquisitions, the impact of the divestiture
of the Company’s bus businesses, asset impairment charges, cost structure
improvements, competition, general economic, market and political conditions and
the other risks and uncertainties discussed more fully in Item 1A of our Annual
Report on Form 10-K for the year ended July 31, 2013 and Part II, Item 1A of our
quarterly report on Form 10-Q for the period ended January 31, 2014. 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 of this release 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 3 AND 6 MONTHS ENDED JANUARY 31, 2014 and 2013

($000’s except share and per share data) (unaudited)

3 MONTHS ENDED JANUARY 31,
(unaudited) 6 MONTHS ENDED JANUARY 31,
————————— ————————–

2014 % Net Sales (1) 2013 % Net 2014 % Net Sales (1) 2013 % Net

Sales (1) Sales (1)
——– ——–

Net sales $635,330 $636,605 $1,435,293 $1,398,029
——– ——– ———- ———-

Gross profit $70,327 11.1% $67,518 10.6% $175,510 12.2% $159,821 11.4%

Selling, general and administrative expenses 43,766 6.9% 41,634 6.5% 92,107 6.4% 88,336 6.3%

Impairment charges – 0.0% – 0.0% 710 0.0% – 0.0%

Amortization of intangible assets 3,226 0.5% 2,623 0.4% 6,064 0.4% 5,257 0.4%

Interest income, net 389 0.1% 731 0.1% 894 0.1% 1,504 0.1%

Other income, net 178 0.0% 466 0.1% 820 0.1% 894 0.1%
— — — —

Income from continuing operations before income taxes 23,902 3.8% 24,458 3.8% 78,343 5.5% 68,626 4.9%

Income taxes 6,684 1.1% 5,439 0.9% 24,731 1.7% 20,858 1.5%
—– —– —— ——

Net income from continuing operations 17,218 2.7% 19,019 3.0% 53,612 3.7% 47,768 3.4%

Income (loss) from discontinued operations, net of income taxes (1,026) -0.2% 877 0.1% 3,688 0.3% 3,116 0.2%
—— — —– —–

Net income $16,192 2.5% $19,896 3.1% $57,300 4.0% $50,884 3.6%
======= ======= ======= =======

Earnings per common share from continuing operations

Basic $0.32 $0.36 $1.01 $0.90

Diluted $0.32 $0.36 $1.01 $0.90

Earnings per common share

Basic $0.30 $0.38 $1.08 $0.96

Diluted $0.30 $0.37 $1.07 $0.96

Weighted avg. common shares outstanding-basic 53,289,626 53,002,106 53,247,315 52,965,286

Weighted avg. common shares outstanding-diluted 53,353,027 53,116,389 53,326,251 53,075,985

SUMMARY BALANCE SHEETS – JANUARY 31, ($000) (unaudited)

2014 2013 2014 2013
—- —- —- —-

Cash and equivalents $204,860 $108,140 Current
liabilities $300,028 $324,321

Accounts receivable 226,979 250,315 Long-term
liabilities 71,153 80,761

Inventories 221,936 235,116 Stockholders’
equity 877,416 803,912

Deferred income tax and other 66,849 63,961
—— ——

Total current assets 720,624 657,532

Property, plant & equipment, net 150,124 167,991

Goodwill 253,876 250,472

Amortizable intangible assets 107,069 111,665

Other assets 16,904 21,334

Total $1,248,597 $1,208,994 $1,248,597 $1,208,994
========== ========== ========== ==========

(1) Percentages may not add due to rounding differences

SOURCE Thor Industries, Inc.

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