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Thor Income Up 49 Percent in Q2

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Thor Industries

Thor Industries announced net income from continuing operations of $45.2 million on revenues of $975.1 million for the second quarter ended Jan. 31.

Net income from continuing operations increased 49 percent on sales growth of 14 percent when compared with the second quarter of last year. Diluted earnings per share from continuing operations in the second quarter increased 51 percent.

Diluted earnings per share, including the loss from discontinued operations in the quarter, rose 57 percent.

“We drove improvements in cost management and operational efficiencies which, along with favorable product mix and lower material costs, allowed us to achieve significant growth in margins and overall profits,” Thor President and CEO Bob Martin.  “Recent acquisitions and capital investments continued to be accretive and contributed to Thor’s record second-quarter and first-half results.”

Sales from continuing operations for the second quarter of fiscal 2016 were $975.1 million, up 14 percent from $852.4 million in the second quarter last year, as sales of towable and motorized RVs posted combined growth of 10 percent, including incremental revenue from acquisitions, which was supplemented by $33.9 million in net revenues from Postle Aluminum Co., Thor’s most recent acquisition. Sales in the quarter were also helped by positive weather conditions and a shift in deliveries of certain motorized rental units earlier in the year.

“The retail market remains positive as evidenced by strong attendance and sales at the early spring retail shows and Thor’s dealers continue to be optimistic about future sales.  Our dealers’ success and favorable outlook suggests the continuation of industry growth in most segments, and we are ramping up production at the new western facility that is on track to begin producing and shipping units by the end of the fiscal third quarter.”

Gross profit margins increased to 15.3 percent in the second quarter compared to 12 percent in the prior-year period, due primarily to favorable changes in product mix, improvements in material and warranty costs and improved operating efficiencies compared to the prior year.

Net income from continuing operations for the second quarter was $45.2 million, up 49 percent from $30.3 million in the prior-year second quarter. Net income for the second quarter of fiscal 2016 included a non-cash, pre-tax goodwill impairment charge of $9.1 million, representing an after-tax EPS impact of $0.11 per share, relating to the full impairment of goodwill associated with one towable reporting unit.

Consolidated RV backlog on January 31, 2016 was a record $1.11 billion, up 17 percent from $942.1 million on January 31, 2015.

Total dealer inventory increased 2 percent to 78,000 units on January 31, 2016 from 76,400 units on January 31, 2015.

Thor’s total cash balances as of January 31, 2016 were $185.4 million.

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