Thor Reports Record Quarter and Nine Months Sales, Net Income, and E.P.S.; Quarter E.P.S. of 90 Cents Substantially Exceeds Analysts Recently Increased Consensus Estimates
JACKSON CENTER, Ohio, May 23, 2006 -- Thor Industries, Inc. , the largest manufacturer of recreation vehicles and a major builder of commercial buses, announced today record sales, net income, and E.P.S. for the third quarter and nine months ended April 30, 2006.
Net income for the quarter was $51,139,000, the highest in the company's history and up 55% from $32,950,000 last year. E.P.S. for the quarter were 90 cents, up 55% from 58 cents last year. Sales for the quarter were $857,615,000, up 18% from $728,693,000 last year.
Net income for the nine months was a record $126,378,000, up 43% from $88,660,000 last year. E.P.S. for the nine months were $2.23, up 43% from $1.56 last year. Sales for the nine months were $2,260,985,000, up 19% from $1,898,460,000 last year.
RV sales in the quarter were a record $776,636,000, up 17% from $662,790,000 last year. RV sales in the 9 months were $2,030,668,000, up 18% from $1,724,113,000 last year. RV income before tax was $79,644,000 in the quarter, up 55% from $51,540,000 last year and $201,607,000 in the 9 months, up 43% from $140,718,000 last year. Towables income before tax was up 63% and motorized income before tax was up 5% in the quarter.
Bus sales in the quarter were a record $80,979,000, up 23% from $65,903,000 last year. Bus sales in the 9 months were $230,317,000 up 32% from $174,347,000 last year. Bus income before tax in the quarter was $2,034,000, down 23% from $2,641,000 last year and $6,013,000 in the 9 months, up 18% from $5,109,000 last year. Corporate costs in the quarter were $1,536,000 versus $2,027,000 last year and $7,372,000 in the nine months versus $4,749,000 last year.
"These E.P.S. results are well in excess of Wall Street's recently increased consensus estimates of 78 cents per share for the quarter. Importantly, our gross and net margins are significantly improved over prior years, resulting from increased revenues, lower manufacturing, warranty, selling, general and administration expenses as a percentage of sales. We continue to outperform the RV industry in both segments, motor homes and towables. Our ongoing capital expenditures, process improvements, and plant expansions are yielding better products and quality, driving increased margins and setting Thor apart from RV competitors. We expect these positive trends to continue," said Wade F. B. Thompson, Thor Chairman.
"Industry unit retail sales of travel trailers and fifth wheels are even through March according to Statistical Surveys, Inc. Thor's unit retail sales are up 3% to 15,917 units, larger than its next 3 competitors combined. Thor now has 32.1% of the segment, up from 31.1% last year. Industry unit retail sales of motor homes are down 19% through March while Thor is down only 1%. Thor is now the number 3 manufacturer of motor homes, up from number 5 last year, with 13.1% of the motor home segment, up from 10.8% last year. Statistical Surveys retail sales excludes Canada. The strong Canadian dollar is resulting in increased exports from the U.S. to Canada, which are not reflected in Statistical Survey's numbers. We began the fourth quarter with a record backlog of $698 million, up 53% from last year, cash and short term investments of $266 million, more than double last year, and $115 million more working capital than last year, all of which bodes well for continuing growth," Thompson added.
Thor's quarterly dividend of 7 cents per share will be paid on July 5, 2006 to stockholders of record on June 15, 2006.
This release includes "forward looking statements" that involve uncertainties and risks. There can be no assurance that actual results will not differ from the Company's expectations. Factors which could cause materially different results include, among others, the success of new product introductions, the pace of acquisitions and cost structure improvements, competitive and general economic conditions, and the other risks set forth in the Company's filings with the Securities and Exchange Commission.
THOR INDUSTRIES, INC.
STATEMENT OF INCOME FOR THE 3 AND 9 MONTHS ENDED APRIL 30, 2006 and 2005
$000 except per share - unaudited
3 MONTHS ENDED APRIL 30
2006 % 2005 %
Net sales $857,615 $728,693
Gross profit $128,011 14.9% $94,035 12.9%
Selling, general and
administrative $50,080 5.8% $42,901 5.9%
Amortization of intangibles $237 - $259 -
Interest income (net) $2,205 .3% $536 .1%
Other income $243 - $743 .1%
Income before taxes $80,142 9.3% $52,154 7.2%
Taxes $29,003 3.4% $19,204 2.6%
Net income $51,139 6.0% $32,950 4.5%
E.P.S. - basic $0.90 $0.58
E.P.S. - diluted $0.90 $0.58
Average common shares
outstanding - basic 56,656,684 56,732,473
Average common shares
outstanding - diluted 57,087,096 57,129,262
9 MONTHS ENDED APRIL 30
2006 % 2005 %
Net sales $2,260,985 $1,898,460
Gross profit $329,616 14.6% $252,642 13.3%
Selling, general and
administrative $135,178 6.0% $114,473 6.0%
Amortization of intangibles $712 - $730 -
Interest income (net) $5,353 .2% $1,771 .1%
Other income $1,169 .1% $1,868 .1%
Income before taxes $200,248 8.9% $141,078 7.4%
Taxes $73,870 3.3% $52,418 2.8%
Net income $126,378 5.6% $88,660 4.7%
E.P.S. - basic $2.23 $1.56
E.P.S. - diluted $2.22 $1.56
Average common shares
outstanding - basic 56,605,615 56,801,528
Average common shares
outstanding - diluted 56,994,628 57,195,012
SUMMARY BALANCE SHEETS - APRIL 30 ($000) (unaudited)
2006 2005
Cash and equivalents $141,494 $85,687
Investments, short term 125,013 41,840
Accounts receivable 223,904 189,622
Inventories 200,159 182,459
Deferred income tax and other 27,711 17,712
Total current assets 718,281 517,320
Fixed assets 149,262 133,814
Investments - joint ventures 2,664 2,482
Goodwill 165,663 161,437
Other assets 26,907 23,986
Total $1,062,777 $839,039
Current liabilities $333,154 $246,907
Other liabilities 13,778 10,960
Stockholder's equity 715,845 581,172
Total $1,062,777 $839,039