The Recreation Vehicle Industry Association commissioned an Economic Impact Study on the RV industry, released on June 7, 2016. The study found that the RV industry contributes about $49.7 billion in economic output or 0.28 percent of the Gross Domestic Product. Through its production and distribution linkages, the industry impacts firms in 426 of the 440 sectors of the United States economy.
Nationwide, the industry is responsible for 216,170 jobs, both directly and inderectly, creating an economic impact of $37.5 billion. The full study results, along with each individual state and congressional district's economic impact is available on the website by clicking here .
Thu Sep 28, 2017
ELKHART, Ind. - Thor Industries, Inc. has announced a record fourth-quarter net income of $119.5 million, or $2.26 per diluted share, on record fourth-quarter revenues of $1.93 billion.
Gross profit for the fourth quarter ended July 31 increased 34.9 percent to $301.3 million. As anticipated and due primarily to acquisition-related dilution and market-driven changes in product mix, gross profit margins decreased to 15.6 percent in the fourth quarter compared to 17.3 percent in the prior-year period. Diluted earnings per share for the fiscal 2017 fourth quarter increased 43.9 percent from the previous year. The strong growth in revenues and earnings for the fourth quarter of fiscal 2017 was a combination of organic growth in both towable and motorized RVs and the inclusion of two incremental months of results from Jayco compared to the fourth quarter of fiscal 2016, as Jayco was acquired on June 30, 2016.
"Thor completed another year of exceptional growth, supported by strong demand from dealers and consumers for our products, notably our expanded lines of more affordably-priced towable and motorized RVs,” Thor President and CEO Bob Martin says. “These products are attracting more types of customers, including Baby Boomers and Millennials, to take part in the RV lifestyle, with its great value and opportunity to share life-enriching experiences with friends and family. RVs continue to increasingly become part of the fabric of people's recreational activities, as people enjoy the convenience and comfort that an RV provides at a variety of venues including festivals, concerts and sporting events, as well as the unmatched access RVs provide to numerous outdoor experiences.
"The production capacity added during fiscal 2017 across nearly every Thor subsidiary to support this surging demand is beginning to be utilized. Industry fundamentals remain strong, and we are looking forward to another year of growth in fiscal 2018. This optimism was recently on display at our annual open house which was held last week. Dealers responded enthusiastically to our new and redesigned product offerings, which included additional lightweight and entry-level products as well as innovative features and floorplans that consumers are looking for to provide greater connectivity, comfort and convenience. To support this ongoing growth, we are continuing to strategically expand production capacity in ways that will maintain our flexibility to respond to demand."
• Towable RV sales were $1.41 billion for the fourth quarter, up 46.5 percent from $961.1 million in the prior-year period. The Jayco towable business contributed $353.3 million and $76.9 million to towable sales for the fourth quarter of fiscal 2017 and fiscal 2016, respectively, representing three months of activity in 2017 versus one month in 2016. Towable sales growth, excluding the acquisition, accounted for 17.7 percent of the 46.5 percent growth, driven primarily by continued strong demand for the more affordably-priced travel trailers.
• Towable RV income before tax was $152.2 million, up 40.1 percent from $108.7 million in the fourth quarter last year. This increase was driven primarily by the increase in sales and improved Selling General and Administrative (SG&A) expense as a percent of revenues, partially offset by increased amortization expense and lower gross margins associated with the Jayco towable business, product mix changes and labor costs.
• Towable RV backlog increased $681.2 million, or 92.7 percent to $1.42 billion, compared to $735.1 million at the end of the fourth quarter of fiscal 2016, reflecting the continued momentum and demand for the travel trailers.
• Motorized RV sales were $485.2 million for the fourth quarter, up 65.8 percent from $292.7 million in the prior-year fourth quarter. The increase in motorized RV sales was a result of the ongoing growth in the more moderately-priced gas type A and type C motorhomes, which continue to be in high demand by Thor dealers and end consumers. Motorized revenues also benefited from the inclusion of $150.3 million in the fourth quarter of fiscal 2017 from the Jayco motorized business versus $27.6 million in the fourth quarter of fiscal 2016, representing three months of activity in 2017 versus one month in 2016. Motorized sales growth, excluding the acquisition, accounted for 23.9 percent of the 65.8 percent growth.
• Motorized RV income before tax was $30.6 million, up 37.4 percent from $22.2 million last year, driven primarily by the growth in motorized sales and improved SG&A expense as a percent of revenues, partially offset by increased amortization expense and lower gross margins associated with the Jayco motorized business, product mix changes and increased labor and warranty costs.
• Motorized RV backlog increased $453.8 million, or 98.3 percent, to $915.6 million from $461.8 million a year earlier, reflecting the exceptional demand for the smaller gas type A and type C motorhomes.
"As of July 31, 2017, we held $223.3 million of cash and for the fiscal year, operating cash flow increased 22.9 percent to $419.3 million compared to $341.2 million for fiscal 2016,” Thor Senior Vice President and CFO Colleen Zuhl says. “We utilized the strong cash flow in accordance with our strategic plan for fiscal 2017. In particular, we spent $115 million on various capital projects that support our existing businesses and increased capacity across our product lines. We also increased our returns to shareholders through dividends, increasing total dividend payments for the year by 10.2 percent to $69.4 million. At the same time, we significantly reduced the outstanding balance under our credit facility. At July 31, 2017, $145 million was outstanding under the debt agreement compared to $360 million outstanding at July 31, 2016.
"Subsequent to July 31, 2017, we made additional principal payments on our debt facility totaling $55 million, which brings the current remaining balance outstanding under the facility to $90 million."
Fourth Quarter Acquisition Impact:
• For the fourth quarter of fiscal 2017, Jayco contributed $503.6 million in sales and $72 million in gross profit compared to $104.5 million in sales and $8.8 million in gross profit in fiscal 2016.
• Interest expense, amortization of debt issuance costs and related fees for the quarter were $2 million compared to $0.9 million last year.
• Results for the quarter were also affected by the increase in amortization of intangibles. Total amortization for the quarter attributable to the Jayco acquisition amounted to $10 million compared to $4.5 million last year.
• Sales for fiscal 2017 were a record $7.25 billion, up 58.2 percent from $4.58 billion last year.
• Jayco contributed about $1.92 billion in sales in fiscal 2017 and $104.5 million in sales in fiscal 2016.
• Net income from continuing operations for fiscal 2017 was a record $374.3 million, up 45 percent from $258 million in fiscal 2016.
• Diluted earnings per share (EPS) from continuing operations for fiscal 2017 was a record $7.09, up 44.4 percent from $4.91 last year.
• Consolidated RV backlog on July 31 was $2.33 billion, up 94.8 percent from $1.2 billion on July 31, 2016.
• Thor's total cash balances as of July 31 were $223.3 million while the outstanding balance on the revolving credit line stood at $145 million.
"The outlook for Thor remains very positive,” Thor Executive Chairman Peter Orthwein says. “We expect demand in the industry to remain strong, as more numbers and types of consumers adopt the RV lifestyle and are attracted to the exceptional brands and products of our subsidiaries. As an industry leader, we remain focused on delivering the innovation that our loyal customers have come to expect, and that our dealers associate with our long-standing brands. Looking ahead, we will continue to manage our growth and balance costs, especially during this period of a tight labor market, all while maintaining our discipline of investing in those areas that deliver continued high return for our shareholders."