THOR Industries reported net sales in the fourth quarter of $3.6 billion, an increase of 54.6 percent as compared to the fourth quarter of the prior fiscal year.
The strong quarter was a continuation of what was a record-shattering year in the company’s history.
“We are pleased to report that in a year of unprecedented challenges, THOR posted record net sales and net income for the fourth fiscal quarter and the full fiscal year, making it the most profitable year in THOR’s history,” said Bob Martin, THOR president and CEO. “For the fiscal year, we sold over 300,000 units, eclipsed $12 billion in net sales and generated net income attributable to THOR of $11.85 per diluted share, which far exceeds the former record for diluted earnings per share of $8.14 set in fiscal year 2018. These outstanding results are a testament to our team’s ability to successfully accelerate production over the course of the fiscal year to meet surging market demand while continuing to maintain quality, navigating continuing supply chain challenges, managing labor constraints and ensuring the safety of our workforce.”
“Demand for our RV products remains very robust, continuing to exceed production output. This sustained level of strong demand has led to a continuation of historically low dealer inventory levels and resulted in a new record-high backlog value of $16.9 billion as of July 31, 2021,” he added.
Net sales of $3.6 billion in the quarter included $1.7 billion for the North American Towable RV segment, $823.1 million for the North American Motorized RV segment and $969.9 million for the European RV segment.
Net income for the quarter was $230.3 million, up from $119.2 million a year ago.
The addition of the Tiffin Group, acquired on Dec. 18, 2020, accounted for $373.0 million of the $1.28 billion increase in net sales in the motorized segment, or 26.8 percent of the 92 percent increase from a year ago.
“Our fiscal 2021 financial performance reflects the strong demand for RV products and demonstrates our ability to manage through a challenging operating environment,” said Colleen Zuhl, THOR’s senior vice president and chief financial officer. “Our team did an exceptional job of proactively managing ongoing supply chain constraints, logistical bottlenecks and labor shortages throughout the year to meet this strong market demand and drive strong year-over-year margin improvement and record annual income before income taxes across each of our business segments.”
Looking ahead, Martin said, “THOR is carrying great momentum into fiscal year 2022, supported by a number of positive factors. Interest from new RV buyers and order activity continues to be robust across each of our business segments. We have record backlogs supported by North American dealer inventory levels that are 9 percent lower than the already historically low levels from a year ago and 44 percent lower than they were two years ago. Dealers remain confident in the long-term outlook for the RV industry and continue to invest in growing their businesses as the industry sees continued buying interest from both the first-time and repeat RV buyers.
“Within the last several months, we have had two businesses, the Tiffin Group and Airxcel, join the THOR team, and we expect them to contribute meaningfully to our operating results in fiscal 2022 and going forward. Airxcel, which is an additional investment in the supplier space, complements our existing Postle Aluminum subsidiary and is intended to preserve and grow the RV supply chain for the betterment of THOR and the RV industry alike.
“Entering our 2022 fiscal year, we continue to operate in an uncertain time. The rise, fall and rise again of reported COVID-19 cases around the world, supply chain shortages which change almost weekly and a very tight labor market across the country, especially in northern Indiana where most of our production facilities are located, all demand that we continue to focus on managing through these challenges to produce and deliver the innovative and high-quality RVs for which we are known. Our team has performed exceedingly well through these challenges, and we remain confident in their ability to continue to do so,” Martin said.
