UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8–K
CURRENT REPORT
Pursuant to Section 13 or 15 (d) of the
Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): September 26, 2016
Thor Industries, Inc.
(Exact Name of Registrant as Specified in Charter)
Delaware (State or Other Jurisdiction of Incorporation) |
1-9235 (Commission File Number)
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93-0768752 (IRS Employer Identification No.) |
601 East Beardsley Avenue, Elkhart, Indiana (Address of Principal Executive Offices) |
46514-3305 (Zip Code) |
Registrant’s telephone number, including area code: (574) 970-7460
N/A
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 | Results of Operations and Financial Condition. |
On September 26, 2016, Thor Industries, Inc. (the “Company”) issued a press release announcing certain financial results for the fourth quarter and fiscal year ended July 31, 2016. A copy of the Company’s press release is attached hereto as Exhibit 99.1 and is incorporated by reference herein.
In accordance with general instruction B.2 to Form 8-K, the information set forth in Item 2.02 of this Form 8-K (including Exhibit 99.1) shall be deemed “furnished” and not “filed” with the Securities and Exchange Commission for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and shall not be incorporated by reference into any filing thereunder or under the Securities Act of 1933, as amended.
Item 9.01 | Financial Statements and Exhibits. |
(d) | Exhibits |
Exhibit Number | Description | ||
99.1 | Copy of press release, dated September 26, 2016, issued by the Company |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Thor Industries, Inc. | |||
Date: September 26, 2016 | By: | /s/ Colleen A. Zuhl | |
Name: | Colleen Zuhl | ||
Title: |
Senior Vice President and Chief Financial Officer |
Thor Announces Record Results for Fourth Quarter and Fiscal 2016
ELKHART, Ind., Sept. 26, 2016 /PRNewswire/ -- Thor Industries, Inc. (NYSE: THO) today announced record net income from continuing operations of $82.8 million, or $1.57 per diluted share, on record revenues of $1.29 billion for the fourth quarter ended July 31, 2016. Gross profit margins increased to 17.3% in the fourth quarter compared to 16.2% in the prior-year period, due primarily to improved volumes and favorable changes in product mix. Net income from continuing operations increased 20.1% on sales growth of 22.2% when compared with the fourth quarter of last year. Diluted earnings per share from continuing operations for the fiscal 2016 fourth quarter increased 19.8% from the previous year.
"The fourth quarter was the culmination of the strongest year in Thor's history, with solid revenue and earnings growth generated by the tremendous efforts of our entire team augmented by strong industry conditions," said Bob Martin, Thor President and CEO. "During the fourth quarter, we saw continued year-over-year industry growth in most product categories and were able to capitalize on opportunities to expand our production capacity and output to meet the growing demand for affordably priced travel trailers and motorhomes. Our products continue to hit the mark in terms of the expectations of our dealers and consumers."
Mr. Martin added, "Since the Jayco acquisition closed on June 30, the integration of Jayco into Thor has been very smooth for our employees, dealers and consumers. During the Jayco annual dealer meeting last month, I had the opportunity to talk directly with many of Jayco's dealers and I heard positive feedback on the acquisition and the dealers' vision of the future of Jayco as part of Thor. The success of Jayco is an integral part of our future growth plans and is a critical action item within our strategic plan. In addition to the positive impacts from the Jayco acquisition, I see many positive signs for Thor and the RV industry, with opportunities for growth among a variety of consumer demographics, which should result in an expansion of our overall market. Just last week we had a phenomenal Dealer Open House, with record attendance, dealer optimism and a very positive reception to our new 2017 model year products, with innovative features and floorplans to appeal to consumers in a variety of age and income demographics."
Towable RVs:
Motorized RVs:
"With the growth to record sales and net income in fiscal 2016, we generated record cash from operating activities which we utilized in support of our strategic plan. In addition to the Jayco acquisition, we invested nearly $40 million in land and production building additions and improvements during fiscal 2016 to meet our capacity needs. This included facility additions and enhancements for Keystone, Heartland, Airstream, Thor Motor Coach, KZ, Dutchmen and Postle Aluminum. To ensure we continue to have adequate capacity to meet demand, we currently intend to invest $95 million in capital expenditures in fiscal 2017, with a significant part of that investment expected to be utilized for plant expansions," said Colleen Zuhl, Thor Senior Vice President and CFO. "Our priorities for the use of future cash generated from operations include continuing to support and grow our core businesses, both organically and through acquisition; maintaining or growing our regular dividends; reducing our indebtedness; and considering strategic share repurchases or special dividends."
Full-Year Highlights:
Acquisition Impact:
Outlook:
"This has been an outstanding year for Thor, as we celebrated a number of monumental achievements, including completing the acquisition of Jayco, the successful integrations of Jayco, Cruiser/DRV and Postle Aluminum, and posting record sales and earnings for the quarter and year," said Peter B. Orthwein, Thor Executive Chairman. "With the strength of our retail customers, our dealer base, our product development teams, our employees and operating management team, along with favorable trends within the economy and the industry, we see ample reasons for optimism in the year ahead. With strong fundamentals in our industry, we will continue to invest in our organic growth while assessing additional acquisition opportunities to ensure the long-term success of Thor."
Investor Questions and Answers:
Thor announced that 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.
About Thor Industries, Inc.
Thor is the sole owner of operating subsidiaries that, combined, represent one of the world's largest manufacturers of recreational vehicles. For more information on the Company and its products, please go to www.thorindustries.com.
This release includes certain statements that are "forward looking" statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). These forward looking statements are made based on management's current expectations and beliefs regarding future and anticipated developments and their effects upon Thor Industries, Inc., and inherently involve uncertainties and risks. These forward looking statements are made based on management's current expectations and beliefs regarding future and anticipated developments and their effects upon Thor Industries, Inc., and inherently involve uncertainties and risks. These forward looking statements are not a guarantee of future performance. We cannot assure you that actual results will not differ from our expectations. Factors which could cause materially different results include, among others, raw material and commodity price fluctuations, material or chassis supply restrictions, legislative and regulatory developments, the impact of rising interest rates on our operating results, the costs of compliance with increased governmental regulation, legal and compliance issues including those that may arise in conjunction with recent transactions, the potential impact of increased tax burdens on our dealers and retail consumers, lower consumer confidence and the level of discretionary consumer spending, interest rate fluctuations and the potential economic impact of rising interest rates, restrictive lending practices, management changes, the success of new product introductions, the pace of obtaining and producing at new production facilities, the pace of acquisitions, the potential loss of existing customers of acquisitions, the integration of new acquisitions, our ability to retain key management personnel of acquired companies, the loss or reduction of sales to key dealers, the availability of delivery personnel, asset impairment charges, cost structure changes, competition, the impact of potential losses under repurchase agreements, the potential impact of the strengthening U.S. dollar on international demand, general economic, market and political conditions and the other risks and uncertainties discussed more fully in ITEM 1A of our Annual Report on Form 10-K for the year ended July 31, 2016. We disclaim any obligation or undertaking to disseminate any updates or revisions to any forward looking statements contained in this release or to reflect any change in our expectations after the date of this release or any change in events, conditions or circumstances on which any statement is based, except as required by law.
THOR INDUSTRIES, INC. | ||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME FOR THE 3 AND 12 MONTHS ENDED JULY 31, 2016 and 2015 | ||||||||||||||||
($000's except share and per share data) | ||||||||||||||||
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| 3 MONTHS ENDED JULY 31, (unaudited) |
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| 12 MONTHS ENDED JULY 31, | |||||||||
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| 2016 | % Net
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| 2015 | % Net
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| 2016 | % Net
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| 2015 | % Net
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Net sales | $1,292,636 |
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| $1,058,156 |
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| $4,582,112 |
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| $4,006,819 |
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Gross profit |
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| $ 223,350 | 17.3% |
| $ 171,279 | 16.2% |
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| $ 726,325 | 15.9% |
| $ 557,545 | 13.9% |
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Selling, general and administrative expenses | 89,616 | 6.9% |
| 69,660 | 6.6% |
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| 306,269 | 6.7% |
| 250,891 | 6.3% |
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Amortization of intangible assets | 10,300 | 0.8% |
| 4,409 | 0.4% |
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| 27,962 | 0.6% |
| 16,015 | 0.4% |
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Impairment charges | - | 0.0% |
| - | 0.0% |
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| 9,113 | 0.2% |
| - | 0.0% |
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Interest income (expense), net | (814) | (0.1%) |
| 119 | 0.0% |
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| (849) | (0.0%) |
| 1,112 | 0.0% |
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Other income (expense), net | 831 | 0.1% |
| 162 | 0.0% |
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| 1,181 | 0.0% |
| 1,144 | 0.0% |
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Income from continuing operations before income taxes | 123,451 | 9.6% |
| 97,491 | 9.2% |
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| 383,313 | 8.4% |
| 292,895 | 7.3% |
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Income taxes | 40,605 | 3.1% |
| 28,502 | 2.7% |
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| 125,291 | 2.7% |
| 90,886 | 2.3% |
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Net income from continuing operations | 82,846 | 6.4% |
| 68,989 | 6.5% |
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| 258,022 | 5.6% |
| 202,009 | 5.0% |
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Loss from discontinued operations, net of income taxes | (74) | (0.0%) |
| (22) | (0.0%) |
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| (1,503) | (0.0%) |
| (2,624) | (0.1%) |
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Net income | $ 82,772 | 6.4% |
| $ 68,967 | 6.5% |
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| $ 256,519 | 5.6% |
| $ 199,385 | 5.0% |
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Earnings per common share from continuing operations |
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Basic | $ 1.58 |
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| $ 1.31 |
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| $ 4.92 |
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| $ 3.80 |
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Diluted | $ 1.57 |
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| $ 1.31 |
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| $ 4.91 |
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| $ 3.79 |
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Earnings per common share |
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Basic | $ 1.58 |
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| $ 1.31 |
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| $ 4.89 |
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| $ 3.75 |
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Diluted | $ 1.57 |
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| $ 1.31 |
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| $ 4.88 |
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| $ 3.74 |
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Weighted avg. common shares outstanding-basic | 52,475,958 |
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| 52,579,651 |
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| 52,458,789 |
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| 53,166,206 |
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Weighted avg. common shares outstanding-diluted | 52,654,058 |
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| 52,724,070 |
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| 52,590,516 |
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| 53,275,510 |
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| SUMMARY BALANCE SHEETS - JULY 31, ($000) |
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| 2016 | 2015 |
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| 2016 | 2015 |
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| Cash and equivalents | $ 209,902 | $ 183,478 |
| Current liabilities |
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| $ 651,652 | $ 378,335 |
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| Accounts receivable, trade and other | 392,539 | 269,694 |
| Long-term debt |
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| 360,000 | - |
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| Inventories | 403,869 | 246,115 |
| Other long-term liabilities |
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| 48,590 | 59,726 |
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| Deferred income taxes and other, net | 10,548 | 76,554 |
| Stockholders' equity |
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| 1,265,222 | 1,065,187 |
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| Total current assets | 1,016,858 | 775,841 |
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| Property, plant & equipment, net | 344,267 | 234,045 |
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| Goodwill | 377,693 | 312,622 |
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| Amortizable intangible assets, net | 507,391 | 169,018 |
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| Deferred income taxes and other, net | 79,255 | 11,722 |
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| Total | $2,325,464 | $1,503,248 |
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| $2,325,464 | $1,503,248 |
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(1) Percentages may not add due to rounding differences | ||||||||||||||||
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CONTACT: Jeffery A. Tryka, CFA, Director of Corporate Development and Investor Relations, (574) 970-7912, jtryka@thorindustries.com