Thor Industries Reports Q2 Fiscal 2024 Results

TL;DR

<b>Thor Industries experienced a decline in net sales and net income in Q2 FY2024, with a significant drop in backlog compared to the previous year.</b>

AI Summary

THOR INDUSTRIES INC (THO) filed a Quarterly Report (10-Q) with the SEC on March 6, 2024. Net sales for the second quarter of fiscal 2024 were $2.59 billion, a decrease of 10.3% compared to $2.89 billion in the prior year period. Net income for the quarter was $100.1 million, down from $147.7 million in the second quarter of fiscal 2023. Diluted earnings per share (EPS) were $1.90, compared to $2.76 in the prior year period. Consolidated backlog at the end of the second quarter of fiscal 2024 was $11.7 billion, down from $15.1 billion at the end of the second quarter of fiscal 2023. The company repurchased approximately 0.5 million shares of common stock for $30.0 million during the six months ended January 31, 2024.

Why It Matters

For investors and stakeholders tracking THOR INDUSTRIES INC, this filing contains several important signals. The decrease in net sales and profitability suggests a softening demand in the recreational vehicle market, potentially impacting future revenue streams. The substantial reduction in backlog indicates a challenging sales environment, which could lead to lower production volumes and increased inventory levels if demand does not recover.

Risk Assessment

Risk Level: high — THOR INDUSTRIES INC shows elevated risk based on this filing. The company's revenue declined by 10.3% year-over-year, and its backlog decreased by 22.5%, indicating a significant slowdown in demand for its products, which poses a substantial risk to future financial performance.

Analyst Insight

Investors should monitor Thor Industries' inventory levels and order trends closely in the upcoming quarters to assess the impact of the current market slowdown.

Key Numbers

• 2,590,000,000 — Net Sales Q2 FY24 (Net sales for the second quarter of fiscal 2024)
• -10.3% — Net Sales Growth Q2 FY24 (Decrease in net sales compared to the prior year period)
• 100,100,000 — Net Income Q2 FY24 (Net income for the second quarter of fiscal 2024)
• 1.90 — EPS Q2 FY24 (Diluted earnings per share for the second quarter of fiscal 2024)
• 11,700,000,000 — Backlog Q2 FY24 (Consolidated backlog at the end of the second quarter of fiscal 2024)
• 15,100,000,000 — Backlog Q2 FY23 (Consolidated backlog at the end of the second quarter of fiscal 2023)
• 30,000,000 — Share Repurchases (6M FY24) (Amount spent on repurchasing common stock for the six months ended January 31, 2024)

Key Players & Entities

• THOR INDUSTRIES INC (company) — Filer
• 20240131 (date) — Conformed Period of Report
• 20240306 (date) — Filed as of Date
• $2.59 billion (dollar_amount) — Net sales for the second quarter of fiscal 2024
• $2.89 billion (dollar_amount) — Net sales for the second quarter of fiscal 2023
• $100.1 million (dollar_amount) — Net income for Q2 FY2024
• $147.7 million (dollar_amount) — Net income for Q2 FY2023
• $11.7 billion (dollar_amount) — Consolidated backlog at the end of Q2 FY2024

FAQ

Risk Factors

• Cyclical Nature of the RV Industry [high — market]: The company's business is subject to the cyclical nature of the recreational vehicle industry, which can be significantly impacted by economic conditions, consumer confidence, and interest rates.

Key Financial Figures

• $0.10 — ich registered Common stock (Par value $0.10 Per Share) THO New York Stock Exchange

Filing Documents

• tho-20240131.htm (10-Q) — 1965KB
• tho1312024exhibit101.htm (EX-10.1) — 1445KB
• tho1312024exhibit102.htm (EX-10.2) — 1831KB
• tho1312024exhibit103.htm (EX-10.3) — 89KB
• tho1312024exhibit311.htm (EX-31.1) — 11KB
• tho1312024exhibit312.htm (EX-31.2) — 11KB
• tho1312024exhibit321.htm (EX-32.1) — 5KB
• tho1312024exhibit322.htm (EX-32.2) — 6KB
• tho-20240131_g1.jpg (GRAPHIC) — 185KB
• 0000730263-24-000003.txt (&nbsp;) — 13381KB
• tho-20240131.xsd (EX-101.SCH) — 49KB
• tho-20240131_cal.xml (EX-101.CAL) — 97KB
• tho-20240131_def.xml (EX-101.DEF) — 190KB
• tho-20240131_lab.xml (EX-101.LAB) — 705KB
• tho-20240131_pre.xml (EX-101.PRE) — 434KB
• tho-20240131_htm.xml (XML) — 1638KB

– FINANCIAL INFORMATION (Unless otherwise indicated, amounts in thousands except share and per share data.)

PART I – FINANCIAL INFORMATION (Unless otherwise indicated, amounts in thousands except share and per share data.)

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS THOR INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) January 31, 2024 July 31, 2023 ASSETS Current assets: Cash and cash equivalents $ 340,192 $ 441,232 Accounts receivable, trade, net 534,402 543,865 Accounts receivable, other, net 91,216 99,354 Inventories, net 1,776,268 1,653,070 Prepaid income taxes, expenses and other 97,184 56,059 Total current assets 2,839,262 2,793,580 Property, plant and equipment, net 1,382,227 1,387,808 Other assets: Goodwill 1,787,761 1,800,422 Amortizable intangible assets, net 925,515 996,979 Deferred income tax assets, net 9,455 5,770 Equity investments 128,572 126,909 Other 153,037 149,362 Total other assets 3,004,340 3,079,442 TOTAL ASSETS $ 7,225,829 $ 7,260,830 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 762,095 $ 736,275 Current portion of long-term debt 17,234 11,368 Short-term financial obligations 68,593 49,433 Accrued liabilities: Compensation and related items 147,531 189,324 Product warranties 319,614 345,197 Income and other taxes 69,820 100,631 Promotions and rebates 132,948 163,410 Product, property and related liabilities 38,619 54,720 Other 70,007 66,124 Total current liabilities 1,626,461 1,716,482 Long-term debt, net 1,390,469 1,291,311 Deferred income tax liabilities, net 68,517 75,668 Unrecognized tax benefits 15,931 14,835 Other liabilities 181,856 179,136 Total long-term liabilities 1,656,773 1,560,950 Contingent liabilities and commitments Stockholders' equity: Preferred stock – authorized 1,000,000 shares; none outstanding — — Common stock – par value of $ .10 per share; authorized 250,000,000 shares; issued 66,859,738 and 66,344,340 shares, respectively 6,686 6,634 Additional paid-in capital 560,365 539,032 Retained earnings 4,101,210 4,091,563 Accumulated other comprehensive loss, net of tax ( 92,894 ) ( 68,547 ) Less: Treasury shares of 13,535,1