Thor Announces Results for Quarter, Six Months; Improving RV Market Conditions, Bus Efficiencies Drive Gains
JACKSON CENTER, Ohio, March 8 -- Thor Industries, Inc. today reported increased sales, net income and E.P.S. for the second quarter and six months ended January 31, 2010. Net income for the second quarter was $11,924,000 versus a loss of $14,860,000 last year. E.P.S. were 22 cents versus a loss of 27 cents last year. Sales for the second quarter were $430.0 million, up 90% from $226.7 million last year. Net income for the six months was $35,353,000, compared to a loss of $9,740,000 last year. E.P.S. for the six months were 65 cents versus a loss of 18 cents last year. Sales for the six months were $932.6 million, up 40% from $665.5 million last year.
RV income before tax in the quarter was $18,057,000 compared to a loss of $19,840,000 last year. Bus income before tax in the quarter was $6,233,000, up 67% from $3,723,000 last year. RV sales in the quarter were $335.8 million, up 150% from $134.6 million last year. Bus sales in the quarter were $94.2 million, up 2% from $92.1 million last year. Net corporate costs in the quarter were $5.0 million vs. $6.8 million last year.
RV income before tax for the six months ended January 31, 2010 was $49,699,000 compared to a loss of $14,068,000 last year, a $64 million turnaround. Bus income before tax for the six months was $14,613,000, up 62% from $9,020,000 last year. RV sales for the six months ended January 31, 2010 were $725.7 million, up 56% from $465.0 million last year. Bus sales for the six months ended January 31, 2010 were $206.9 million, up 3% from $200.5 million last year. Net corporate costs for the six months ended January 31, 2010 were $7.8 million versus $9.7 million last year.
"Thor's results continue to progress, propelled by improving RV market conditions and strong bus efficiencies. We continue to be profitable in all segments of our businesses, including motor homes, reflecting the permanent cost reductions we have made," said Peter B. Orthwein, Thor chairman.
Thor is the world's largest manufacturer of recreation vehicles and a major builder of commercial buses.
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. 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, additional issues that may arise in connection with the findings of the completed investigation by the Audit Committee of the Board of Directors of Thor Industries, Inc. (the "Company") and the SEC's requests for additional information, fuel prices, fuel availability, lower consumer confidence, interest rate increases, tight lending practices, increased material costs, the success of new product introductions, the pace of acquisitions, cost structure improvements, the impact of auction market failures on our liquidity, competition and general economic conditions and the other risks and uncertainties discussed more fully in Item 1A of the Company's Annual Report on Form 10-K for the year ended July 31, 2009. The Company disclaims 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 the Company's 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.
STATEMENT OF INCOME FOR THE 3 AND 6 MONTHS ENDED
JANUARY 31, 2010 and 2009
$000 except per share - unaudited
3 MONTHS ENDED JANUARY 31,
2010 % 2009 %
---- ---- ---- ----
Net sales $430,025 $226,683
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Gross profit $49,996 11.6% $8,157 3.6%
Selling, general
and administrative $31,087 7.2% $30,107 13.3%
Amortization of
intangibles $77 0.0% $656 0.3%
Operating income $18,832 4.4% $(22,606) -10.0%
Interest income (net) $1,101 0.3% $1,372 0.6%
Gain on sale of
property $ - 0% $373 0.2%
Net impairment of
auction rate
securities $ - 0% $1,853 0.8%
Other income $(680) -0.2% $(237) -0.1%
----- -----
Income before taxes $19,253 4.5% $(22,951) -10.1%
-------------------
Taxes $7,329 1.7% $(8,091) -3.6%
------ -------
Net income $11,924 2.8% $(14,860) -6.6%
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E.P.S. - basic 22 cents (27) cents
E.P.S. - diluted 22 cents (27) cents
-------------------
Avg. common shares
outstanding-basic 53,665,620 55,435,315
Avg. common shares
outstanding-
diluted 53,762,528 55,435,315
6 MONTHS ENDED JANUARY 31,
2010 % 2009 %
---- ---- ---- ----
Net sales $932,577 $665,500
---------
Gross profit $119,767 12.8% $48,220 7.2%
Selling, general
and administrative $65,854 7.1% $64,373 9.7%
Amortization of
intangibles $168 0.0% $856 0.1%
Operating income $53,745 5.8% $(17,009) -2.6%
Interest income (net) $2,672 0.3% $3,259 0.5%
Gain on sale of
property $ - 0.0% $373 0.1%
Net impairment of
auction rate
securities $ - 0.0% $1,853 0.3%
Other income $89 0.0% $529 0.1%
--- ----
Income before taxes $56,506 6.1% $(14,701) -2.2%
-------------------
Taxes $21,153 2.3% $(4,961) -0.7%
------- -------
Net income $35,353 3.8% $(9,740) -1.5%
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E.P.S. - basic 65 cents (18) cents
E.P.S. - diluted 65 cents (18) cents
-------------------
Avg. common shares
outstanding-basic 54,551,272 55,421,946
Avg. common shares
outstanding-
diluted 54,639,650 55,421,946
SUMMARY BALANCE SHEETS - JANUARY 31, ($000) (unaudited)
2010 2009 2010 2009
---- ---- ---- ----
Cash and Current
equivalents $67,563 $191,099 liabilities $208,864 $176,302
Investments, Other
short term 76,300 - liabilities 63,866 47,018
Accounts Stockholders'
receivable 147,345 54,642 equity 590,182 683,523
Inventories 162,165 153,779
Deferred income
tax and other 43,415 50,572
------ ------
Total current
assets 496,788 450,092
Fixed assets 141,806 147,162
Long term
investments 12,983 118,961
Goodwill 148,411 158,128
Other assets 62,924 32,500
------ ------ -------- --------
Total $862,912 $906,843 Total $862,912 $906,843
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