Thor Industries Shares Motor Higher on Record Q4 and FY Net Sales and Income

Source: Streetwise Reports   09/28/2021

Shares of Thor Industries traded 8% higher after the company reported that net sales in FY/21 increased by 50.8% to $12.32 billion and advised that as of July 31, 2021, its consolidated RV backlog grew by 190% YoY to $16.86 billion.

Before U.S. markets opened for trading today, Thor Industries Inc. (THO:NYSE), which in aggregate through several wholly owned operating subsidiaries is the world’s largest manufacturer of recreational vehicles (RVs), announced what it referred to as record financial results for the fourth quarter and fiscal year ended July 31, 2021.

“Demand for our RV products remains very robust, continuing to exceed production output.”

The company’s President and CEO Bob Martin led off by commenting, “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. 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.”

CEO Martin continued, “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 $16.86 billion as of July 31, 2021.”

Thor Industries reported that in Q4/21 it registered net sales of $3.59 billion, compared to $2.32 billion in Q4/20. The firm noted that that Q4/21 net sales were comprised of $1.73 billion from North American Towable RV segment, $823.1 million from its North American Motorized RV segment and $969.9 million from European RV segment sales. The company indicated that on a consolidated basis gross profit margin in Q4/21 increased to 16.6%, versus 14.9% in Q4/20 due to higher sales and reductions in sales discounts.

The company advised that in Q4/21 it recorded net income attributable to THOR Industries of $230.3 million, or $4.12 per share, compared to $119.2 million, or $2.14 per share in Q4/20.

Thor stated that net sales for FY/21 increased by 50.8% to $12.32 billion, up from $8.17 billion during FY/20. The company pointed out that the positive change was attributable to both increase in consumer demand and lower comparative sales data in the previous year due to the negative impact of the COVID-19 pandemic. In addition, the company listed that about $421.4 million, or 5.2% of the 50.8% increase, was from its acquisition of the Tiffin Group in December 2020.

“Our fiscal 2021 financial performance reflects the strong demand for RV products.”

The company advised that for FY/21 it earned net income of $659.9 million, or $11.85 per diluted share, compared to net $223.0 million, or $4.02 per diluted share in FY/20.

The company reported that backlogged orders across all three of its major business segments was up significantly and that as of July 31, 2021, North American Towable RV backlog was $9.28 billion, North American Motorized RV backlog was $4.01 billion, and European RV backlog was $3.56 billion, versus $2.76 billion, $1.45 billion and $1.53 billion, respectively as of July 31.2020.

Thor’s SVP and CFO Colleen Zuhl remarked, “Our fiscal 2021 financial performance reflects the strong demand for RV products and demonstrates our ability to manage through a challenging operating environment.”

The company explained that its general outlook for FY/22 looks good as it has a growing backlog and is experiencing decent momentum in its business though some uncertainty remains due to the COVID-19 environment, current supply chain shortages and very tight labor market, especially in northern Indiana where the majority of its factories are located.

The company stated that taking these factors into consideration, it expects that wholesale RV shipments in calendar year 2022 will increase by 4% versus its estimates of 577,200 units anticipated for calendar year 2021

THOR Industries is headquartered in Elkhart, Ind. and is 100% owner of several subsidiary companies that together represent the largest volume manufacturer of recreational vehicles worldwide. The firm manufactures a wide range of RVs in the U.S. for sales mostly in the U.S., Canada, and Europe. Some of the company’s well-known iconic brands include Airstream, Heartland, Bison Coach, Cruiser, Jayco, and Keystone.

Thor Industries began the day with a market cap of around $6.2 billion with approximately 55.37 million shares outstanding and a short interest of about 6.9%. THO shares opened 3% higher today at $116.575 (+$3.775, +3.35%) over yesterday’s $112.80 closing price. The stock traded today between $115.52 and $126.99 per share and closed at $121.75 (+$8.95, +7.93%).

Disclosure:
1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.

2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.

3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.

4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.