THOR Industries Net Sales Top $16.3 Billion in 2022 Q4

ELKHART, Ind. – THOR Industries Inc. (NYSE: THO) today (Sept. 28) announced record financial results for its fourth fiscal quarter and fiscal year ended July 31, 2022.

Fiscal Fourth Quarter 2022 Highlights

• Net sales for the fourth quarter were $3.82 billion, an increase of 6.4% as compared to the fourth quarter of fiscal 2021.
• Consolidated gross profit margin for the fourth quarter was 17.5%, a 90 basis point improvement over the comparable prior-year period.
• Earnings per share for the fourth quarter were $5.15 per diluted share, an increase of 25.0% as compared to $4.12 per diluted share in the same period of the prior fiscal year.
• During the fourth quarter, the Board of Directors approved an additional authorization for share repurchases of approximately $450 million, raising the total authorization granted by the Board during fiscal 2022 to approximately $700 million.

Fiscal Year 2022 Highlights

• Net sales for fiscal year 2022 were $16.31 billion, an increase of 32.4% as compared to fiscal year 2021.
• Earnings per share for fiscal year 2022 were $20.59 per diluted share, an increase of 73.8% as compared to $11.85 per diluted share in the prior fiscal year.
• During the first fiscal quarter of fiscal 2022, THOR acquired Airxcel, a significant supplier to the North American RV industry.
• During fiscal year 2022, the Company made principal payments of $332.9 million on its Term Loan.
• During fiscal year 2022, the Company repurchased $165.1 million of common stock.

Bob Martin

“Our fourth quarter results capped off a record-breaking fiscal year for THOR Industries. Our financial results were supported by outstanding performance across our portfolio of leading brands. For fiscal 2022, net sales eclipsed the $16 billion mark and net income attributable to THOR exceeded $1 billion for the first time in the Company’s history,” said Bob Martin, President and CEO of THOR Industries.

“Responding to record post-pandemic demand that accelerated a secular shift in our market since the middle of 2020, our teams did a remarkable job of navigating labor and supply chain constraints to deliver record unit shipments in fiscal 2022 in order to meet strong end demand and restock dealer inventory. At July 31, 2022, North American independent dealer inventory levels of most towable products were fully restocked while independent dealer inventories of motorized and European products remained below optimal levels.

“During the fiscal fourth quarter, and consistent with our previously announced expectations, we experienced a softening in towable order activity due to successful dealer restocking of towable units combined with lower consumer confidence and macroeconomic uncertainty, which adversely impacted end consumer demand. In response to these conditions, our teams proactively reduced production levels of towable products to keep dealer inventory levels balanced and we remain disciplined in aligning wholesale production with retail demand. Despite the near-term macroeconomic uncertainty, our variable cost structure and the experienced leadership across our enterprise enabled us to successfully manage through the changing market conditions, and our fourth quarter results demonstrate that success,” said Martin.

Fourth-Quarter Financial Results

Consolidated net sales were $3.82 billion in the fourth quarter of fiscal 2022, compared to $3.59 billion in the fourth quarter of fiscal 2021. The increase in consolidated net sales was largely impacted by the increase in the average sales price of our units, partially offset by a decrease in units sold. The addition of Airxcel, acquired in September 2021, accounted for $129.6 million of the increase in net sales for the fourth quarter of fiscal 2022, net of intercompany sales.

Consolidated gross profit margin increased 90 basis points to 17.5% for the fourth quarter of fiscal 2022, from 16.6% in the corresponding period a year ago driven by margin-focused operational improvements and management’s continued discipline to maintain a low discount environment.

Net income attributable to THOR Industries and diluted earnings per share for the fourth quarter of fiscal 2022 were $280.9 million and $5.15, respectively, compared to $230.3 million and $4.12, respectively, for the prior-year period.

Fiscal Year 2022 Financial Results

Net sales for fiscal year 2022 were $16.31 billion compared to $12.32 billion for fiscal year 2021, an increase of 32.4%. The increase in consolidated net sales is primarily due to the increase in product demand, selling price increases to offset known and anticipated material cost increases, and the impact of acquisitions. The addition of Airxcel, acquired in September 2021, accounted for $501.1 million of the $3.99 billion increase in net sales, or 4.1% of the 32.4% increase. In addition, the acquisition of the Tiffin Group, acquired on December 18, 2020, accounted for $505.5 million of the $3.99 billion increase, or 4.1% of the 32.4% increase, as fiscal 2022 includes twelve months of operations compared to six and one-half months in fiscal 2021.

Net income attributable to THOR in fiscal year 2022 was $1.14 billion, or $20.59 per diluted share, compared to net income attributable to THOR of $659.9 million, or $11.85 per diluted share, in fiscal year 2021.

The company’s annual effective income tax rate for fiscal 2022 was 22.0% compared with 21.8% for fiscal 2021. The primary reason for the increase relates to the jurisdictional mix of foreign and domestic pretax income between the comparable periods.

Net cash provided by operating activities for fiscal 2022 was $990.3 million compared to $526.5 million in fiscal 2021. The increase in net cash provided by operating activities for fiscal 2022 was driven by an increase in net income, partially offset by higher working capital levels, which were impacted by an increase in inventory, including ongoing supply constraints causing work in process and other inventory categories to increase. The Company leveraged its strong net cash from operations to deploy capital in a disciplined and balanced approach, utilizing cash generated to reinvest in the business, pay its regular dividend, reduce its debt obligations, repurchase shares of its common stock and fund strategic acquisitions.

Source: https://rvbusiness.com/thor-industries-net-sales-top-16-3-billion-in-2022/