RVIA Economic Impact Study

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 .

Thor Beats Expectations for Fiscal 2018 Q1

Mon Nov 27, 2017

145382602566676.pngThor Industries, Inc. (NYSE: THO) today announced record first-quarter net income of $128.4 million, or $2.43 per diluted share, on record first-quarter revenues of $2.23 billion. Gross profit for the first quarter ending Oct. 31, 2017 increased 40.7 percent to $333.2 million. As a result of the strength of revenues and production during the quarter, as well as operating efficiencies and process improvements attained in the past year, primarily by the company's Jayco subsidiary, combined with favorable changes in product mix and selective net price increases, gross profit margins increased to 14.9 percent in the first quarter compared to 13.9 percent in the prior-year period. Diluted earnings per share for the first quarter of fiscal 2018 increased 63.1 percent from the previous year.

Bob Martin, Thor president and CEO, says in a press release, "Thor has begun fiscal 2018 with another quarter of exceptional growth at both the top and bottom line. Industry demand remains exceedingly strong. During the quarter, we leveraged the strength in industry demand to drive increased profitability across both segments of our business through a combination of increased output from recently added production capacity, enhanced scheduling and optimization of production runs at our existing facilities, as well as various initiatives implemented across the Company over the last year to improve operating efficiencies."

Martin says, "Coming out of our Open House event in September and the RV Dealers Association event in November, dealer optimism remains high and we believe the industry will continue to grow for the foreseeable future. Dealers and consumers are enthusiastic about our product offerings in all major product categories of more affordably-priced towable and motorized RVs. The breadth of our offerings, combined with our focus on the innovative features, floorplans and styling that consumers want and expect, are attracting an ever-wider array of customers, including Baby Boomers, Gen-X'ers and Millennials, to take part in the RV-lifestyle. Our increasing backlog is confirmation that our products are hitting the mark and reinforces the need for continued investment in production capacity to meet the current level of demand."

Towable RVs:

  • Towable RV sales were $1.62 billion for the first quarter, up 33.7 percent from $1.21 billion in the prior-year period, driven primarily by continued strong demand for the company's more affordably-priced travel trailers.

  • Towable RV income before tax was $158.9 million, up 68.7 percent from $94.2 million in the first quarter last year. This increase was driven primarily by the increase in sales, improved gross margins due to improved operating efficiencies and process improvements, primarily by the Jayco subsidiary, decreased Selling, General and Administrative (SG&A) expense as a percent of revenues, and lower amortization expense.

  • Towable RV backlog increased $1.05 billion, or 75.3 percent, to $2.46 billion, compared to $1.40 billion at the end of the first quarter of fiscal 2017, reflecting the continued momentum and demand for our travel trailers in advance of the calendar 2018 selling season.

Motorized RVs:

  • Motorized RV sales were $566.6 million for the first quarter, up 22.8 percent from $461.5 million in the prior-year first quarter. The increase in motorized RV sales was a result of the ongoing growth in Thor Industry's more moderately-priced gas Class A and Class C motorhomes, particularly in the Class C line, both of which continue to be in high demand by the company's dealers and end consumers.

  • Motorized RV income before tax was $37.6 million, up 30.0 percent from $28.9 million last year, driven primarily by the growth in motorized sales and improved gross margins due to improved operating efficiencies, primarily by Jayco.

  • Motorized RV backlog increased $417.4 million, or 59.1 percent, to $1.12 billion from $706.4 million a year earlier, reflecting the continued robust demand for our smaller gas Class A and Class C motorhomes.

Colleen Zuhl, Thor senior vice president and CFO, says "Our balance sheet remains very strong. As of Oct. 31, 2017, we held $151.5 million of cash. During the quarter, we invested $34.3 million on various capital projects that support our existing businesses and will further increase capacity across our product lines, while working capital increased $41.1 million to support our seasonal needs. We also continued to aggressively reduce the outstanding balance under our credit facility, paying down $55.0 million during the quarter to exit with $90.0 million outstanding as of Oct. 31, 2017, compared to $145.0 million outstanding at July 31, 2017. Subsequent to the end of the quarter, we paid an additional $10.0 million on the outstanding debt balance, bringing the balance to $80.0 million as of Nov. 27, 2017."

Martin says, "Current industry fundamentals are supported by demographic trends that are expanding the RV-buying base and high consumer confidence buoyed by positive employment, wage trends and general economic conditions. At the same time, we are still experiencing a tight labor market in Northern Indiana and beginning to see some inflationary price increases in certain raw material and commodity-based components. We will also be facing tougher year-over-year comparatives during the second half of the fiscal year as the operating efficiencies and process improvements achieved at Jayco began to materialize in the third quarter of fiscal 2017. Nevertheless, we are confident that fiscal 2018 will be another year of meaningful growth for Thor as we leverage solid industry fundamentals with the exceptional brands and products from each of our subsidiaries, our talented team of nearly 18,000 employees and our partnerships with the best dealers in the industry."

Peter B. Orthwein, Thor executive chairman, says, "Looking ahead, we will continue executing the components of our strategic plan—investing in substantial capacity expansions to capitalize on demand, providing market-leading, innovative and high quality products that exceed customer expectations, and maintaining our focus on operational efficiency improvements and cost management disciplines—to ensure we continue to deliver high returns for our shareholders."

Thor Shares Rise After Hours on Earnings Beat

According to a report published by MarketWatch, Thor Industries shares rose 3.3 percent to $123.89 per share in the extended session Wednesday following the first-quarter report. The company bested Wall Street estimates for the quarter. A FactSet survey of analysts had estimated $1.96 a share on revenue of $1.82 billion.

Investor Questions and Answers:

Thor announced it has provided a detailed list of investor questions and answers relating to quarterly results and other topics that are posted on the Investor Relations section of its website at www.thorindustries.com.