Thor Reports Increased Sales for 2Q, 6 Months

Thor Industries Inc. reported today (Feb. 2) a 13% increase in sales for the Jackson Center, Ohio-based company’s fiscal second quarter.

Sales during the quarter totaled $596.4 million, including $500.6 million in RV revenue, representing a 15% increase from $437.1 million last year. Bus sales were $95.7 million, a 7% increase from $89.1 million last year.

For the six months, sales rose 12% to $1.27 billion from $1.1 billion the previous year. RV sales gained 13% to just over 1 billion compared with $943.7 million last year. Bus sales in the six months were $207 million, up 9% from $189.2 million the year prior.

Cash, cash equivalents and investments on Jan. 31 were $157 million, lower compared to the prior quarter primarily as a result of the repurchase of two million shares of Thor stock on Jan. 20 for $57 million. Consolidated backlog on Jan. 31 was $647 million compared to $689 million last year. RV backlog was $413 million in comparison with $467 million last year. Bus backlog was $234 million, up 5% from $222 million last year.

“Sales momentum remains strong for Thor, with good results seen in both our RV and bus businesses through the first half of the fiscal year,” said Peter B. Orthwein, Thor chairman, CEO and president. “Results from January retail RV shows have been positive, with good attendance and retail sales activity reported at most shows, reflecting rebounding consumer confidence, access to credit, and low interest rates. Internal tracking of Thor’s recent retail RV sales activity has also been encouraging. Discounting remains a factor in the competitive RV and bus markets, although Thor continues to be well positioned in each of its product categories to take advantage of improving market trends.”

 

Martin’s Mission: Maintain Thor’s Industry Edge

Yesterday’s (Jan. 31) news that Keystone RV Co. President Bob Martin, an 18-year industry veteran born and raised in the RV-building center of Elkhart, Ind., is stepping up Feb. 1 as RV group president of Thor Industries Inc. surely wasn’t a surprise to a lot of rank-and-file employees of Thor, the world’s largest RV manufacturer.

Nor was it probably a revelation to Thor’s competitors that Martin was named to the top job at publicly held Thor – a Jackson Center, Ohio, firm that posted $2.75 billion in fiscal 2011 sales. Those revenues are largely derived from six RV-building divisions, which, along with Keystone, include Airstream Inc., CrossRoads RV, Dutchmen Manufacturing Inc., Heartland Recreational Vehicles LLC and Thor Motor Coach.

As part of the latest transition, Matt Zimmerman, a 13-year Keystone vet now serving as vice president of sales for the Goshen, Ind., unit, succeeds Martin as Keystone’s president. David Chupp, Keystone’s vice president of finance, moves up to COO. Martin will report to Peter Orthwein, Thor’s chairman, president and COO.

Although he hasn’t been all that visible outside Thor’s camp either before or after Ron Fenech vacated the group presidency on Sept. 30, Martin, 42, is a highly regarded individual within the industry who, most will tell you, has made more friends than enemies in his career.

He’s a 1988 Elkhart Central High School grad, a married father of two who played four years of football on scholarship at Purdue University, graduating in 1993. Shortly thereafter, he went to work as a sales trainee at the former Coachmen Industries Inc. in nearby Middlebury, Ind., where his first boss was none other than Fenech.

Martin worked his way up the ranks at Coachmen and went to work in 1998 for Fenech at Keystone, and eventually became national sales manager for Cougar fifth-wheels. “So, that’s how I started,” he added. “I was the original product manager for Keystone. Our model is based on that now. We have product managers for every one of our products who serve as sales managers.”

Then came Keystone jobs as general manager, vice president of sales, COO and president a little over two years ago. “It’s just been an incredible run for me, watching the company grow from about $70 million when I first joined up to where it is today,” said Martin, adding that Keystone’s current financial status — separate from the other divisions — is not public information.

In the big picture, Martin maintains that Keystone and its 900 dealers are in good hands with plenty of youth on the sales management side. And he says he’s going to maintain an office at Thor’s Goshen campus for six months or so to help ease the transition before moving up to Thor’s regional Elkhart office.

“My mission is to continue to grow Thor, not to just maintain the status quo, but to enhance its status as the strongest RV manufacturer in the nation,” Martin told RVBUSINESS.com. “It will be a different role, as I help coordinate things with people. I’ll be a sounding board for the other presidents. I’m not coming in to change peoples’ worlds. I’m coming in to help where I can, realizing the benefit I’ve had in terms of experience at Keystone.”

Bottom line, Martin, like his predecessor, plans to maintain a consistently independent approach with regard to its divisions.

“Yes, that’s what has made Thor what it is,” he explained. “You have these individual companies that, quite frankly, compete. And that’s healthy. That pushes them all to be better and stronger, and I’ll be there just to help with the major items and coordinate things such as the open house. But we have great companies. We have great managers, and I just want to be there to support them and help them grow. And when things in this industry cycle up and down, I want to be there for support.”

 

Thor Names Bob Martin as RV Group President

Thor Industries Inc. announced Tuesday (Jan. 31) that Bob Martin will become RV Group president, effective Feb. 1. Martin replaces Ron Fenech, who retired on Sept. 30.

According to a news release, Thor’s six RV companies – Airstream Inc., CrossRoads RV, Dutchmen Manufacuring Inc., Heartland Recreational Vehicles LLC, Keystone RV Co. and Thor Motor Coach – will report to Martin. Martin will report to Peter Orthwein, Thor’s chairman, president and CEO.

Martin, an 18-year industry veteran and Elkhart, Ind., native, is currently president of Keystone RV, Thor’s largest subsidiary.

In other management moves, Matt Zimmerman, currently vice president of sales for Keystone, succeeds Martin as president. Zimmerman has been with Keystone 13 years in a variety of sales and management positions. In addition, David Chupp, currently vice president of finance for Keystone, has been named COO. Chupp joined Keystone in 2000.

“Bob, Matt, and David assume their new responsibilities with a history of success in their previous positions. These promotions will further strengthen Thor’s leading position in the RV industry,” said Orthwein.

“I am privileged to have this opportunity to be associated with all the great Thor companies,” said Martin. “As the largest RV manufacturer in the world, Thor Industries has much to offer our customers, RV owners and the community. I look forward to working with all of Thor’s RV companies in my new role to leverage the strength and capabilities of Thor Industries.”

Thor Ind. Repurchases 2 Million Shares of Stock

Thor Industries Inc. announced today (Jan. 20) that it has entered into a repurchase agreement, dated as of Jan. 18, to purchase 1 million shares of its common stock at a price of $28.50 per share from the estate of Wade F. B. Thompson in a private transaction.

The estate holds shares of common stock of Thor previously owned by the late Wade F. B. Thompson, Thor’s co-founder and former CEO. The repurchase transaction with the estate was evaluated and approved by members of Thor’s board of directors who are not affiliated with the estate. The transaction was consummated on Jan. 20.

Thor also announced today that it has entered into repurchase agreements with Catterton Partners VI L.P. and certain of its affiliates, each dated as of Jan. 18, to purchase an aggregate of 1 million shares of its common stock at a price of $28.50 per share from Catterton in a private transaction. The transaction with Catterton was also consummated on Jan. 20.

Thor used available cash to purchase the shares from the estate and Catterton. The number of shares repurchased by Thor represented 3.6% of Thor’s issued and outstanding common stock prior to the repurchase transactions. The closing price for Thor common stock on Jan. 18 was $29.34.

 

Thor Industries Board OK’s Quarterly Dividend

Thor Industries Inc. announced that its board approved the payment of a regular quarterly dividend of 15 cents per share at its Dec. 13 meeting.

The regular dividend will be paid on Jan. 13, 2012, to shareholders of record on Dec. 29, 2011.

Thor, based in Jackson Center, Ohio, is the world’s largest manufacturer of recreation vehicles and a major builder of commercial buses and ambulances.

Thor Reports 1Q Sales Bump, Profits Off Slightly

Jackson Center, Ohio-based Thor Industries Inc. reported improved sales and a dip in earnings for the company’s fiscal first quarter, ended Oct. 31.

Sales for the quarter were $673 million, up 11% from $606.7 million last year. Net income for the three-month period was $22.35 million compared with nearly $23.7 million the year prior. Basic earnings per share (E.P.S.) for the quarter were 41 cents versus 44 cents last year.

Total RV segment sales rose 11% to $561.6 million from $506.56 million the previous year.  Towable RV sales for the quarter were $499 million, up 18% from $422.4 million, while motorized sales totaled $62.55 million, down 26% from $84.1 million last year. Towable RV sales for both quarterly periods include Heartland RV LLC since its acquisition on September 16, 2010. Bus segment sales for the quarter, including buses and ambulances were up 11% from the previous year.

Total RV segment income before tax for the quarter was $33.9 million compared with $34 million last year. RV income before tax was down 2% for towables and up 29% for motorhomes.

“We are encouraged by our strong towable RV backlog driven by orders from our fall open house event, coupled with increased RV market retail sales and planned product improvements and introductions at this week’s RVIA Expo in Louisville, Ky. However, the RV market remains very competitive with promotional pricing,” said Peter B. Orthwein, Thor Chairman, CEO and president. “We are also seeing public transit agencies and private operators begin to replace their fleets, which provides opportunities for Thor’s bus segment.”

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Thor Appoints Cam Boyer Dutchmen President

“Cam Boyer is the right person to continue to lead Dutchmen’s resurgence in the towable RV industry and he has the endorsement of the Dutchmen team in this new position,” said Peter B. Orthwein, Chairman and CEO of Thor Industries. “Cam has demonstrated a great knowledge of the RV industry and has been one of the key drivers of Dutchmen’s success. He brings a strategic approach to the business, using his finance acumen and relationships both inside and outside the company to propel performance.”

Boyer joined Dutchmen in 2009, having held previous leadership and management positions with Starcraft RV and Starcraft Marine.

 

 

Thor Announces Don Clark Leaving Dutchmen

Thor Industries Inc. announced today (Nov. 10) that Don Clark, president of its Dutchmen Manufacturing Inc. subsidiary that also includes Komfort and Breckenridge divisions, has decided to leave the company.

“Don previously played a major role in the growth of Keystone RV and most recently led the successful turnaround of Dutchmen,” said Peter Orthwein, chairman, president and CEO of Thor. “Although we are sorry to see Don leave, we are pleased that he will stay on during a transition period until his successor at Dutchmen is in place.”

“Thor has been a great company to work for,” said Clark. “I am thankful for the opportunities that I have been given over the years and wish Thor and the Thor dealers continued success in the future.”

Jackson Center, Ohio-based Thor is the world’s largest manufacturer of recreation vehicles and a major builder of commercial buses and ambulances

 

R.W. Baird Sees ‘Decent Value’ In Thor’s Shares

Robert W. Baird & Co. issued a client newsletter to investors following the towable sales report for August by Statistical Surveys Inc. The following offers a summary of the results.

Better sales/orders confirm the sky isn’t falling. Preliminary sales significantly exceeded expectations driven by strong orders at the Elkhart dealer open house. Heading into the off season, we maintain a cautious outlook as the economy struggles, but see decent value in Thor shares noting its market leadership, solid balance sheet, 2.4% dividend yield, and history of strong returns on capital.

• Revenue. Preliminary sales for the October quarter improved 11%, significantly exceeding our forecast ($674 million vs. $581 million) and consensus ($594 million). For perspective, industry RV shipments fell 1% in the first two months of the quarter (towables up 1%; motorhomes down 22%).

• Solid backlog. The total backlog improved 9% to $510 million, up from $467 million, driven by a better RV orders coinciding with the Elkhart dealer open house. The RV backlog improved 18%, to $300 million, consistent with our expectations. Dealers placed orders sooner this year in response to the increasingly important Elkhart industry open house in September – likely accounting for some of the strength. The bus backlog fell 1% to $210 million, slightly better than our expectations.

• Raising estimates slightly. We are raising our Q1 EPS estimate a penny to 40 cents after incorporating the incremental revenue, but maintain a cautious margin outlook. As we noted in September, Thor partnered with GE to cover floorplan interest expense at the increasingly competitive Elkhart show. Still, the revenue upside inspires more confidence.

• Outlook. We see the potential for Thor to earn over $3/share in a cyclical recovery in which the RV market returns to 70% of peak demand, but the odds of a robust recovery have diminished for now. Facing stubborn unemployment, heavy debt, and anemic economic growth, consumers lack the confidence that inspires an RV purchase.

This summary of a Baird research report is not intended as investment advice. To participate in Baird surveys and receive research reports, contact Craig R. Kennison, CFA, at ckennison@rwbaird.com.

 

 

 

Thor Reports 11% Growth in Fiscal 1Q Revenue

Thor Industries Inc. announced today (Nov. 2) preliminary sales and backlog for its fiscal first quarter ended Oct. 31.

Preliminary consolidated sales in the quarter were $673.7 million, up 11% from $606.7 million last year. RV sales were $562.6 million, up 11% from $506.5 million a year ago. Bus sales were $111 million, up 11% from $100.1 million the year prior.

Cash, cash equivalents and investments on Oct. 31 were $208 million while consolidated backlog on was $510 million compared to $467 million last year. RV backlog was $300 million versus $254 million last year and bus backlog was $210 million versus $213 million last year.

“Thor’s increased RV backlog reflects dealer enthusiasm for Thor’s new RV product lines, with strong orders received in September at the Thor Open House event in Elkhart, Ind.,” said Peter B. Orthwein, Thor chairman, CEO and president. “The retail RV market remains about on par with last year and dealer inventories are right-sized for market demand. The bus market is showing signs of improvement with greater bid activity from municipalities.

 

 

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