Thor Reports Quarterly Results; Retail RV Sales Strong
JACKSON CENTER, Ohio, Nov. 27, 2006 -- Thor Industries, Inc. , the largest manufacturer of recreation vehicles and mid-size commercial buses today reported sales, net income, and E.P.S. for the first quarter ended October 31, 2006.
Net income was $32,598,000, down 25% from last year's $43,365,000. E.P.S. were 59¢ versus 77¢ last year. Sales for the quarter ended October 31, 2006 were $727.7 million, down 4% from $761.3 million last year.
RV income before tax in the quarter was $49,670,000, down 29% from $69,790,000 last year. Bus income before tax was $3,020,000, up 51% from $1,994,000 last year. RV sales in the quarter were $635.9 million, down 7% from $682.3 million last year. Last year's sales included an estimated $75 million of extraordinary revenues from towable RVs built for hurricane relief. Excluding these hurricane related revenues, RV sales were up 5%. Bus sales were $91.8 million up 16% from $79.0 million last year. Corporate costs were $4.0 million down from $4.6 million last year.
"Our retail travel trailer, fifth wheel, and park model sales in the quarter were 23,152 units, up 9% from 21,226 units last year, according to our internal tracking system. Approximately 1,160 hurricane related retail sales are excluded from last year's figures. Our retail motor home sales in the quarter were 1,944 units, up 11% from 1,755 last year. We have achieved significant retail market share increases in all of our RV product categories, according to Statistical Surveys. Our market share in travel trailers and fifth wheels to September 30, 2006 was 32.1% up from 30.9% last year and we are the only publicly held company to show an increase in both market share and unit retail sales. Our motor home market share is 14.2% up from 12.7% last year. Mid-size bus industry shipments for the 9 months ended September 30, 2006, are up 9.3% this year to 10,166 units versus 9,302 units last year. Thor's share of the mid-size bus industry is 38%," said Wade F. B. Thompson, Thor Chairman.
Thor backlog on October 31, 2006, was $406 million, down 14% from last year. RV backlog was $188 million, down from $333 million last year and Bus backlog was $218 million, up 55% from last year.
"Our cash and short term investments increased to $207 million from $194 million last year even after paying a special dividend of $55.7 million on October 10, 2006. Our financial condition and cash flow continue to be exceptionally strong. In the quarter we reduced our selling, general and administrative expenses by nearly $1 million and doubled our net interest income," added Thompson.
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 MONTHS ENDED OCTOBER 31, 2006 and 2005
$000 except per share - unaudited
3 MONTHS ENDED OCTOBER 31
2006 % 2005 %
Net sales $727,716 $761,323
Gross profit $92,370 12.7% $111,642 14.7%
Selling, general and
administrative $43,208 5.9% $44,099 5.8%
Amortization of intangibles $237 -- $237 --
Interest income (net) $2,723 .4% $1,333 .2%
Other income $550 .1% $799 .1%
Income before taxes $52,198 7.2% $69,438 9.1%
Taxes $19,600 2.7% $26,073 3.4%
Net income $32,598 4.5% $43,365 5.7%
E.P.S. - basic $0.59 $0.77
E.P.S. - diluted $0.58 $0.76
Average common shares
outstanding-basic 55,613,302 56,568,392
Average common shares
outstanding-diluted 55,904,797 56,916,818
SUMMARY BALANCE SHEETS - OCTOBER 31 ($000) (unaudited)
2006 2005
Cash and equivalents $95,963 $117,592
Investments, short
term 110,815 76,029
Accounts receivable 166,011 185,334
Inventories 215,155 187,048
Deferred income tax
and other 29,570 16,151
Total current assets 617,514 582,154
Fixed assets 158,178 144,759
Investments - joint
ventures 2,917 3,121
Goodwill 165,663 165,663
Other assets 26,814 25,909
Total $971,086 $921,606
Current liabilities $271,661 $267,984
Other liabilities 13,862 12,157
Stockholders' equity 685,563 641,465
Total $971,086 $921,606
FCMN Contact: mmoriarty@thorindustries.com