Thor Industries Inc.’s results for the third quarter, released earlier today, included the announcement that Thor’s auditors have not yet completed their review under SAS100 of the quarter’s results, the New York Times reports.
Thor reported sales for the third quarter of $680.1 million, up 64% from a year ago. Net income for the quarter was $34.1 million, up dramatically from $2.1 million a year ago.
RV sales in the quarter were $559.1 million, up 79% from a year ago.
Towable RV sales in the quarter were $468 million, up 77% from last year. Motorized RV sales in the quarter were $91.1 million, up 91% from last year.
The company will file a Form 12b-25 (Notification of Late Filing and Application for Extension to File) with the Securities and Exchange Commission, with respect to its quarterly report on Form 10-Q for the period ended April 30, the company stated.
The extension is required because the company’s independent auditor, Deloitte & Touche LLP, has not yet completed its review of the interim financial statements to be included in the company’s 10-Q. This delay is due to their evaluation of certain accounting positions previously taken by the company in its audited financial statements included in the company’s annual report on Form 10-K for the fiscal year ended July 31, 2009, and the unaudited financial statements included in the company’s quarterly reports on Form 10-Q for the periods ended Jan. 31, 2009, April 30, 2009, Oct. 31, 2009, and Jan. 31, 2010.
In this regard, Deloitte is addressing issues relating to the accounting treatment for transactions with Stephen Adams and FreedomRoads that were consummated in January 2009.
Also, for repurchase reserves relating to agreements with lenders to the company’s independent dealers and revenue recognition issues with respect to transactions with its independent dealers. The company’s accounting treatment for these matters is described in the company’s 10-K. The company continues to work with Deloitte to address these matters. If the company is required to change its accounting for these items, there could be material adverse changes to the company’s results of operations and financial condition for fiscal 2009 and for the first three quarters of fiscal 2010, Thor stated.
Thor Industries Inc.’s 3rd-quarter profit surged as sales rebounded sharply and margins improved, helping the Jackson Center, Ohio-based recreation-vehicle maker post its fourth-straight quarter of dramatically improved results, according to Dow Jones News Service.
For the quarter ended April 30, Thor posted a profit of $34.1 million, or 66 cents a share, up from $2.1 million, or 4 cents a share, a year earlier. Analysts polled by Thomson Reuters expected 60 cents.
Sales surged 64% to $680.2 million, slightly above the company’s stronger-than-expected preliminary results in May, as RV sales rose 79%. Specialty vehicle sales, which include buses and ambulances, grew 17%.
Gross margin widened to 13.6% from 11.2% on the revenue growth.
Prospects for the RV industry have improved as credit loosens up and dealers restock inventories. Demand for expensive gas-guzzlers have decline in the past several years, in combination with the credit crunch and recession.
Thor’s fast streamlining and structure — dominated by many small factories — helped it avoid the financial disasters that led to bankruptcy filings last year by two big rivals — Fleetwood Enterprises Inc. and Monaco Coach Corp.
On Friday GMAC Financial Services announced it will begin accepting finance applications for new and used RVs from Thor dealers in 14 high-volume states. GMAC, which expects to expand the program nationwide by the end of the year, was first named the loan provider in April.
The company — whose brands include Four Winds, Keystone, Airstream and Dutchmen — in May said total backlog increased 51% to $667 million from a year earlier. Its RV backlog more than doubled to $448 million.