Thor Industries Inc. today (June 6) reported a 6% increase in earnings for its fiscal third quarter, ended April 30, on a 13% increase in sales.
Revenue for the third quarter totaled $1.05 billion compared to $926.5 million in the third quarter last year, based on strength in RV sales. Net income for the third quarter was $43.8 million, or 82 cents per diluted share, up 6% from $41.3 million, or 78 cents per diluted share, in the prior-year third quarter.
Sales for the nine months totaled $2.67 billion, up 22% from $2.2 billion in the prior-year period. Net income for the nine months was $94.6 million, or $1.78 per share, up 22% compared to $77.4 million, or $1.43 per share, in the first nine months of fiscal 2012.
“We are pleased with the continued growth in revenues and earnings we were able to achieve in the third quarter, as a number of the actions we’ve taken to improve our operations began to gain traction,” said Bob Martin, Thor president and COO. “While our markets remain competitive, we are now in the middle of the peak selling season for the RV industry, when demand improves and discounting tends to stabilize, leaving us in a strong position to finish out the year.”
Highlights of Thor’s third quarter include:
• Total RV sales were $929.8 million, up 15% from $807.2 million in the third quarter last year.
• Towable RV sales were $742.5 million, up 9% from $680.5 million in the prior-year period.
• Motorized RV sales were $187.3 million, up 48% from $126.7 million in the prior-year third quarter.
• Bus segment sales were $119.4 million, up slightly from $119.3 million in the third quarter last year.
“Thor generated strong gains in both revenues and net income during the third quarter, based on continuing strength in our RV business and stability in our bus business,” said Peter B. Orthwein, Thor chairman and CEO. “Our results for the third quarter reflect the dealer optimism and improved retail consumer demand that has been building since the beginning of the year, which is now entering peak seasonal demand for our RV products. Based on the current positive momentum we see in our markets, we are confident in our ability to generate growth in sales and earnings for the remainder of the year.”
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Thor Industries Inc. announced that its board approved, at its March 22 meeting, the payment of a regular quarterly dividend of 18 cents per share.
The regular dividend will be payable on April 19 to shareholders of record at the close of business on April 9, 2013.
Thor, based in Elkhart, Ind., is the sole owner of operating subsidiaries that, combined, represent the world’s largest manufacturer of recreation vehicles and a major builder of commercial buses and ambulances.
Despite reporting lower profits for its fiscal fourth quarter, Jackson Center, Ohio-based Thor Industries Inc. stirred an upbeat mood from investors today (Sept. 29) as the company beat market expectations.
Thor shares ended the day up $4.29, representing a 21% increase.
• TradersHuddle.com reported Thor stock was experiencing “unusually high volume early in the trading session,” adding, “the buyers are stepping in, as the stock’s volume is already above average.”
• RTT News said that in spite of a drop in profit for the fourth quarter on weak gross margins that offset improved sales, both earnings and revenues for the quarter came in ahead of Street expectations.
• In a note to investors, Robert W. Baird & Co. reported that “Thor beat guarded expectations on better margins and a lower tax rate.”
Thor Industries Inc., the biggest U.S. maker of recreational vehicles, agreed to pay $1 million to settle a U.S. Securities and Exchange Commission (SEC) lawsuit claiming one of its executives underreported company costs.
As reported by Bloomberg, the proposed settlement was filed in federal court in Washington yesterday (May 12) along with a complaint that alleges Mark Schwartzhoff, the vice president of finance at Thor’s Dutchmen Manufacturing Inc., “engaged in a fraudulent accounting scheme to understate Dutchmen’s cost of goods sold.”
Schwartzhoff overstated Dutchmen’s pretax income by almost $27 million from fiscal year 2003 to the second quarter of fiscal 2007, according to the SEC. The executive, who was fired in 2007, agreed to pay almost $400,000 in penalties, according to court filings.
“Thor’s failure to maintain accurate books and records and adequate internal accounting controls violated a 1999 commission cease-and-desist-order,” the SEC in said court papers, referring to similar misconduct at a different Thor unit.
Without admitting or denying the allegations, Thor Industries agreed to hire an SEC-approved independent consultant to evaluate its internal accounting controls at its headquarters in Jackson Center, Ohio, and at its other units. The agreement requires court approval.
Chief Executive Officer Peter Orthwein didn’t immediately return a telephone message seeking comment.
The case is SEC v. Thor Industries, 11-cv-00889, U.S. District Court, District of Columbia (Washington).
Jackson Center, Ohio-based Thor Industries Inc. announced today (May 3) preliminary sales, backlog, and cash, cash equivalents and investments for the third quarter and nine months ended April 30.
Preliminary consolidated sales in the quarter were $848.9 million, up 25% from $680.2 million last year. RV sales in the quarter were $739.45 million, up 32% from $559.2 million last year. Both consolidated and RV sales in the third quarter of Thor’s 2011 fiscal year include Heartland Recreational Vehicles LLC, acquired Sept. 16, 2010. Bus sales in the quarter were $109.5 million versus $121 million last year.
Consolidated sales in the nine months were $1.98 billion, up 23% from $1.6 billion last year. RV sales in the nine months were $1.7 billion, up 31% from $1.28 billion last year. Both consolidated and RV sales in the nine months of Thor’s 2011 fiscal year include Heartland RV since its acquisition. Bus sales in the nine months were $298.7 million versus $327.9 million last year.
Cash, cash equivalents and investments on April 30, 2011 were $61 million. Cash is lower this year as Thor used cash resources to acquire Heartland RV, invested in greater capital expenditures to upgrade and increase its production capacity, and increased its working capital utilization, which is tied to higher RV production and sales.
Consolidated backlog on April 30, 2011 was $633 million, compared to $667 million last year. RV backlog was $427 million, down 5% from $448 million last year. Both consolidated and RV backlogs on April 30, 2011 include Heartland RV. Bus backlog was $206 million versus $219 million last year.
“Thor had solid sales performance in the third quarter,” said Peter B. Orthwein, Thor Chairman, CEO and president. “The RV market is well balanced today, with dealer inventories better aligned with current demand, a healthy backlog, an improving promotional environment, and better conditions in both wholesale and retail credit. However, we continue to feel pressure from escalating fuel prices and other commodity costs. Thor’s retail RV market share has grown in each of its reported segments, according to the latest Statistical Surveys retail sales results as of February, 2011.”
CrossRoads RV announced Friday (May 14) the appointment of Chris Miller and Ryan Newcomer as regional sales managers for the Topeka, Ind.-based company’s park model division.
The two new managers bring with them a combined 59 years of experience in the RV industry.
Miller adds more than 22 years of product knowledge and sales and management experience to the CrossRoads sales team. “His expertise in campground and park model products — along with his intimate knowledge of all markets in the midwest — makes him a valuable asset to CrossRoads RV and its dealers in this territory,” said Larry Weaver, CrossRoads RV national sales manager.
In a similar manner, “Ryan’s talents in the areas of training and interacting with dealers, campgrounds and retail customers will bring great value to the CrossRoads RV team,” Weaver added. Newcomer’s territory will include the entire East Coast as well as the Canadian provinces of New Brunswick and Quebec.
In their new positions, Miller and Newcomer will be responsible for overseeing the sales volume of both rental and retail units for their respective territories, as well as dealer training, account development and servicing the dealer network.
A division of Thor Industries Inc., CrossRoads RV manufactures a wide variety of travel trailers, fifth-wheels and park models at five plant locations. for more information on the company, visit www.crossroadsrv.com or call (888) 226-7496.
Ron Fenech, president of Keystone RV Co., Elkhart, Ind., has been appointed Thor Industries Inc. senior group president, with all Thor RV divisions reporting to him, according to a news release.
“Over the past eight years as Keystone president, Ron Fenech has been an important driver of Thor’s largest and most profitable company. Thor’s other RV companies will now also share in the benefits of his leadership,” said Peter B. Orthwein, Thor chairman, president and CEO. “Under Ron’s direction, Thor’s RV divisions will remain separate and distinct companies in the marketplace, serving their distinct dealer networks.”
Fenech will report directly to Orthwein.
Richard “Dicky” Riegel, currently Thor’s COO, becomes senior group president, with responsibility for Thor’s bus group, Thor investor relations and for developing new business segments related to Thor’s existing lines of business.
“One of Thor’s biggest opportunities is to utilize its strong cash flow to enter a new, related business segment and Dicky Riegel is the ideal person to head up that effort,” Orthwein said. “Dicky has been instrumental in driving substantial growth during his presidency of Airstream and in his role as Thor’s COO. With his skills and talents, he will help shape the future of Thor by identifying new businesses for the company.”
Andrew Imanse remains group president, Thor Commercial Bus division, and will continue to report to Riegel, who will report to Orthwein.
Bob Martin, currently executive vice president of Keystone RV, has been appointed president of Keystone RV.
“Bob has been an integral part of the Keystone team since our early days, and we have been preparing for this move with Bob for the past three years,” Fenech said. ”Bob understands what makes Keystone great, and I am excited about Keystone’s future under his leadership.”
Thor, with headquarters in Jackson Center, Ohio, is the world’s largest manufacturer of recreation vehicles and a major builder of commercial buses.
Richard Klein, a mechanical and aerospace engineer with more than 30 years of experience in vehicle dynamics, was among those addressing 82 representatives of 38 RV manufacturers and suppliers on the stability of trailer design during a March 5 seminar hosted by the Recreation Vehicle Industry Association (RVIA) at the RV/MH Hall of Fame in Elkhart, Ind. Klein reviewed decades-old, safety-related engineering data, according to Bruce Hopkins, RVIA vice president of standards and education. “It appears from listening to Dick Klein that there was engineering information out there for 30 years that is valid today that only a few people knew about,” said David Mihalick, Thor Industries Inc. corporate standards compliance manager. “The seminar got us back to hard engineering data.” In addition to Klein, seminar speakers included consultant Harley Holt, president of Harley Holt and Associates Inc., and David Kinder, a partner with the Texas-based Cox Smith, a law firm that has represented RV manufacturers in cases involving claims related to travel trailer stability and rollovers. “The seminar provided a number of recommendations for the manufacturers to look at,” Hopkins said. The event was sponsored by AL-KO Kober, Corp., Dexter Axle Co. and Norco Industries.