- Record sales of $2.23 billion, up 30.6 percent
- Record net income of $128.4 million, up 63.1 percent
Thor Industries announced a record first-quarter net income of $128.4 million on record first-quarter revenues of $2.23 billion. Gross profit for the first quarter ended Oct. 31, increasing 40.7 percent to $333.2 million.
Because of the strength of revenues and production during the quarter, gross profit margins increased to 14.9 percent in the first quarter compared to 13.9 percent in the prior-year period. Diluted earnings per share for the first quarter of fiscal 2018 increased 63.1 percent from the previous year.
“Thor has begun fiscal 2018 with another quarter of exceptional growth at both the top and bottom line. Industry demand remains exceedingly strong,” said Bob Martin, Thor president and CEO. “During the quarter, we leveraged the strength in industry demand to drive increased profitability across both segments of our business through a combination of increased output from recently added production capacity, enhanced scheduling and optimization of production runs at our existing facilities, as well as various initiatives implemented across the company over the last year to improve operating efficiencies.”
Towable RVs:
- Towable RV sales were $1.62 billion for the first quarter, up 33.7 percent from $1.21 billion in the prior-year period, driven primarily by continued strong demand for our more affordably-priced travel trailers.
- Towable RV income before tax was $158.9 million, up 68.7 percent from $94.2 million in the first quarter last year.
- Towable RV backlog increased from $1 billion to $2.46 billion, compared to $1.4 billion at the end of the first quarter of fiscal 2017.
Motorized RVs:
- Motorized RV sales were $566.6 million for the first quarter, up 22.8 percent from $461.5 million in the prior-year first quarter. The increase in motorized RV sales was a result of the ongoing growth in Thor’s more moderately-priced gas Class A and Class C motorhomes, particularly in the Class C line, both of which continue to be in high demand by our dealers and end consumers.
- Motorized RV income before tax was $37.6 million, up 30 percent from $28.9 million last year.
- Motorized RV backlog increased from $417.4 million to $1.12 billion from $706.4 million a year earlier.
“Our balance sheet remains very strong,” said Colleen Zuhl, Thor senior VP and CFO. “As of Oct. 31, we held $151.5 million of cash. During the quarter, we invested $34.3 million on various capital projects that support our existing businesses and will further increase capacity across our product lines, while working capital increased $41.1 million to support our seasonal needs.”
“Current industry fundamentals are supported by demographic trends that are expanding the RV buying base and high consumer confidence buoyed by positive employment, wage trends and general economic conditions,” said Martin. “At the same time, we are still experiencing a tight labor market in Northern Indiana and beginning to see some inflationary price increases in certain raw material and commodity-based components. We will also be facing tougher year-over-year comparatives during the second half of the fiscal year as the operating efficiencies and process improvements achieved at Jayco began to materialize in the third quarter of fiscal 2017.”
