Thor 3Q Sales Top $1 Billion; Income up 13%
Thor Industries Inc. today (June 5) announced that sales for its fiscal third quarter topped $1 billion, lifted by strong performance in its motorhome segment coupled with an 8% increase in towable sales.
Revenue in the three-month period, ended April 30, grew 13% to $1.05 billion compared with $929.8 million a year ago. Net income from continuing operations for the third quarter was $55.1 million, or $1.03 per share, up 13% from $48.7 million, or 92 cents per share, in the prior-year third quarter. Including the discontinued operations of Thor’s bus business, net income for the third quarter rose 26% to $55.1 million from $43.8 million, or 82 cents per share, the previous year.
The Elkhart, Ind.-based company reported that gross profit margins improved to 13.6% in the third quarter compared to 13.4% in the prior year period.
For the nine months, sales rose 7% to $2.48 billion from $2.33 billion in the prior year. Net income from continuing operations for the nine months was $108.7 million, or $2.04 per share, up 13% compared to $96.5 million, or $1.82 per share, in the first nine months of fiscal 2013. Including discontinued operations, net income for the nine months was $112.4 million, or $2.04 per share, up 19% from $94.6 million, or $1.78 per share, in the first nine months of the prior year.
“As we emerged from the tough conditions of the past winter, we were able to post improvements in sales and bottom-line results for the third quarter,” said Bob Martin, Thor president and CEO. “We are in the process of addressing production capacity challenges as we are in the early stages of ramping up our newest motorized production facility in Elkhart, resulting in some short-term costs and inefficiencies which we expect will result in long-term gains in our operations.
“The industry is also facing tight labor markets in northern Indiana, as well as a shortage of capacity at transport companies, both of which will continue to affect our business in the fourth quarter. Despite these challenges, the continuing strength of our dealers and consumers, as well as the actions we’ve taken to secure the long-term health of our business, give us reason for optimism.”
• Towable RV sales were $800.7 million for the third quarter, up 8% from $742.4 million in the prior year period.
• Motorized RV sales were $246.1 million for the third quarter, up 31% from $187.3 million in the prior year third quarter.
• Consolidated backlog on April 30 was $820.2 million, an increase of 26% from $649.6 million at the end of the third quarter last year. Towable RV backlog increased 25% to $548.5 million, compared to $439.6 million at the end of the third quarter of fiscal 2013 while motorized RV backlog increased 29% to $271.7 million from $210 million a year earlier.
“With the improvement in our sales to record levels in the third quarter, we were able to continue improving our operating efficiencies resulting in further increases in margins beyond the strong gains we achieved in the third quarter last year,” said Peter B. Orthwein, Thor executive chairman. “As we continue into the seasonally stronger months of our fiscal year, we remain focused on gaining operating efficiencies while seeking additional avenues for growth.
“We’ve made a number of acquisitions throughout fiscal 2014 of both companies and production facilities that should pay future dividends. As we begin to see the impact of our acquisition of K-Z in the fourth quarter, Thor will continue to identify opportunities to build on its strong history and position as the acquirer of choice in our industry.”
To view the full report click here.