Thor Industries Inc. (THO, Financial) filed Quarterly Report for the period ended 2010-04-30.
Thor Industries Inc. has a market cap of $1.22 billion; its shares were traded at around $23.75 with a P/E ratio of 13.9 and P/S ratio of 0.8. The dividend yield of Thor Industries Inc. stocks is 1.2%. Thor Industries Inc. had an annual average earning growth of 3.8% over the past 10 years.THO is in the portfolios of Chuck Royce of Royce& Associates, Columbia Wanger of Columbia Wanger Asset Management, Columbia Wanger of Columbia Wanger Asset Management, Paul Tudor Jones of The Tudor Group, Bruce Kovner of Caxton Associates, Ruane Cunniff of Ruane & Cunniff & Goldfarb Inc.
In the second quarter of fiscal year 2010, we purchased 3,980,000 shares of our common stock at $29.00 per share and held them as treasury stock at a total cost of $115,420. The shares were repurchased by us from the Estate of Wade F.B. Thompson (the Estate) in a private transaction. The repurchase transaction was evaluated and approved by members of our Board of Directors who were not affiliated with the Estate. At the time of the repurchase, the shares represented 7.2% of our common stock outstanding. We used available cash to purchase the shares.
If retail and wholesale credit availability continues to improve, we expect to see the rebound in sales from dealers ordering units for stock to continue and expect to benefit from our ability to ramp up production in an industry with fewer manufacturing facilities than before, due to competitor failures or plant consolidations. A short-term positive indicator for us is reflected in our order backlog, which has increased from $441,446 at April 30, 2009 to $666,788 at April 30, 2010, an increase of $225,342 or 51%. A longer-term positive outlook for the recreation vehicle industry is supported by favorable demographics as baby boomers reach the age brackets that historically have accounted for the bulk of retail RV sales, and an increase in interest in the RV lifestyle among both older and younger segments of the population.
Net sales and gross profit for the three months ended April 30, 2010 increased 63.7% and 99.1%, respectively, compared to the three months ended April 30, 2009. Selling, general and administrative expenses for the three months ended April 30, 2010 increased 26.4% compared to the three months ended April 30, 2009. Income before income taxes for the three months ended April 30, 2010 was $52,205 as compared to income before income taxes for three months ended April 30, 2009 of $4,572. Income before income taxes for the three months ended April 30, 2010 included $2,283 of net gain on involuntary conversion related to the fire at our Champion bus facility and $500 of trademark impairment in our towable reportable segment. Income before income taxes for the three months ended April 30, 2009 included an impairment of goodwill of $9,717 in the motorized reportable segment. The specifics on changes in net sales, gross profit, selling, general and administrative expenses and income before income taxes are addressed in the segment reporting below.
Corporate costs included in selling, general and administrative expenses increased $1,681 to $6,870 for the three months ended April 30, 2010 compared to $5,189 for the three months ended April 30, 2009. Of the increase of $1,681, $610 was related to costs incurred in conjunction with the closure of Thor CC, $386 was related to costs associated with the SJC acquisition, and the remaining increase was primarily due to increased salaries and bonuses based on profitability.
Corporate interest income and other income was $1,179 for the three months ended April 30, 2010 compared to $930 for the three months ended April 30, 2009. The increase of $249 is primarily due to increased interest income on our notes receivable, partially offset by a decrease in interest income due to lower investment balances, lower interest rates and the contractual terms of our auction rate securities which restrict the maximum yearly interest earned. The Corporate loss before income taxes of $3,531 for the three months ended April 30, 2009 also includes the net appreciation of auction rate securities of $728.
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Thor Industries Inc. has a market cap of $1.22 billion; its shares were traded at around $23.75 with a P/E ratio of 13.9 and P/S ratio of 0.8. The dividend yield of Thor Industries Inc. stocks is 1.2%. Thor Industries Inc. had an annual average earning growth of 3.8% over the past 10 years.THO is in the portfolios of Chuck Royce of Royce& Associates, Columbia Wanger of Columbia Wanger Asset Management, Columbia Wanger of Columbia Wanger Asset Management, Paul Tudor Jones of The Tudor Group, Bruce Kovner of Caxton Associates, Ruane Cunniff of Ruane & Cunniff & Goldfarb Inc.
Highlight of Business Operations:
In October 2009, we decided to close our General Coach production facility in Oliver, British Columbia and move all General Coach RV and Park Model production to our other General Coach facility in Hensall, Ontario. As of April 30, 2010, all production ceased at the Oliver facility. Related closure costs of approximately $340 and $3,640 were recorded in the three and nine month periods ended April 30, 2010. On April 30, 2010, we sold our Citair travel trailer and park model business to a former member of Citairs management. Citair did business in Canada under the names General Coach, Hensall and General Coach, Oliver. We recorded a $323 pre-tax loss on the sale.In the second quarter of fiscal year 2010, we purchased 3,980,000 shares of our common stock at $29.00 per share and held them as treasury stock at a total cost of $115,420. The shares were repurchased by us from the Estate of Wade F.B. Thompson (the Estate) in a private transaction. The repurchase transaction was evaluated and approved by members of our Board of Directors who were not affiliated with the Estate. At the time of the repurchase, the shares represented 7.2% of our common stock outstanding. We used available cash to purchase the shares.
If retail and wholesale credit availability continues to improve, we expect to see the rebound in sales from dealers ordering units for stock to continue and expect to benefit from our ability to ramp up production in an industry with fewer manufacturing facilities than before, due to competitor failures or plant consolidations. A short-term positive indicator for us is reflected in our order backlog, which has increased from $441,446 at April 30, 2009 to $666,788 at April 30, 2010, an increase of $225,342 or 51%. A longer-term positive outlook for the recreation vehicle industry is supported by favorable demographics as baby boomers reach the age brackets that historically have accounted for the bulk of retail RV sales, and an increase in interest in the RV lifestyle among both older and younger segments of the population.
Net sales and gross profit for the three months ended April 30, 2010 increased 63.7% and 99.1%, respectively, compared to the three months ended April 30, 2009. Selling, general and administrative expenses for the three months ended April 30, 2010 increased 26.4% compared to the three months ended April 30, 2009. Income before income taxes for the three months ended April 30, 2010 was $52,205 as compared to income before income taxes for three months ended April 30, 2009 of $4,572. Income before income taxes for the three months ended April 30, 2010 included $2,283 of net gain on involuntary conversion related to the fire at our Champion bus facility and $500 of trademark impairment in our towable reportable segment. Income before income taxes for the three months ended April 30, 2009 included an impairment of goodwill of $9,717 in the motorized reportable segment. The specifics on changes in net sales, gross profit, selling, general and administrative expenses and income before income taxes are addressed in the segment reporting below.
Corporate costs included in selling, general and administrative expenses increased $1,681 to $6,870 for the three months ended April 30, 2010 compared to $5,189 for the three months ended April 30, 2009. Of the increase of $1,681, $610 was related to costs incurred in conjunction with the closure of Thor CC, $386 was related to costs associated with the SJC acquisition, and the remaining increase was primarily due to increased salaries and bonuses based on profitability.
Corporate interest income and other income was $1,179 for the three months ended April 30, 2010 compared to $930 for the three months ended April 30, 2009. The increase of $249 is primarily due to increased interest income on our notes receivable, partially offset by a decrease in interest income due to lower investment balances, lower interest rates and the contractual terms of our auction rate securities which restrict the maximum yearly interest earned. The Corporate loss before income taxes of $3,531 for the three months ended April 30, 2009 also includes the net appreciation of auction rate securities of $728.
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