LONDON, UK / ACCESSWIRE / October 9, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Thor Industries, Inc. (NYSE: THO), which can be viewed by registering at http://protraderdaily.com/optin/'symbol=THO, following the Company's release of its fourth-quarter fiscal 2017 financial results on September 27, 2017. The recreational-vehicles maker's revenue soared 50%, EPS surged 43.9%. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
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Earnings Reviewed
For the fourth quarter ended July 31, 2017, Thor Industries announced record net income of $119.5 million, or $2.26 per diluted share, on record fourth-quarter revenues of $1.93 billion. In Q4 FY16, the Company had saw revenues of $1.29 billion, while its net income totaled $82.77 million, or $1.57 per diluted share. Analysts were expecting earnings of $1.96 per share on revenue of $1.82 billion.
Thor Industries stated that the strong growth in revenues and earnings during Q4 FY17 was a combination of organic growth in both towable and motorized RVs, and the inclusion of two incremental months of results from Jayco compared to Q4 FY16, as Jayco was acquired on June 30, 2016.
Thor Industries' gross profit surged 34.9% to $301.29 million for Q4 FY17 compared to $223.35 million for Q4 FY16. The Company's gross profit margins decreased to 15.6% in the reported quarter compared to 17.3% in the prior year's same period, primarily due to acquisition-related dilution and market-driven changes in product mix
Thor Industries' Segment Results
Towable RVs -During Q4 FY17, the Towable RV division's sales surged 46.5% to $1.41 billion compared to $961.1 million in Q4 FY16. The Jayco towable business contributed $353.3 million and $76.9 million to towable sales for the reported quarter and the year-ago same period, respectively, representing three months of activity in 2017 versus one month in 2016. Towable sales growth, excluding the acquisition, accounted for 17.7% of the 46.5% growth, driven primarily by continued strong demand for the Company's more affordably-priced travel trailers.
For Q4 FY17, Towable RV income before tax was $152.2 million, up 40.1% from $108.7 million in Q4 FY16, driven primarily by the increase in sales and improved selling, general, and administrative (SG&A) expense as a percent of revenues, partially offset by increased amortization expense and lower gross margins associated with the Jayco towable business, product mix changes, and labor costs.
Towable RV backlog increased $681.2 million, or 92.7%, to $1.42 billion compared to $735.1 million at the end of Q4 FY16, reflecting the continued momentum and demand for travel trailers.
Motorized RVs - During Q4 FY17, the Motorized RV sales totaled $485.2 million, up 65.8% from $292.7 million in Q4 FY16. The increase in motorized RV sales was a result of the ongoing growth in the Company's more moderately-priced gas Class A and Class C motorhomes, which continue to be in high demand by the dealers and end consumers. Motorized revenues also benefited from the inclusion of $150.3 million in Q4 FY17 from the Jayco motorized business versus $27.6 million in Q4 FY16, representing three months of activity in 2017 versus one month in 2016. Motorized sales growth, excluding the acquisition, accounted for 23.9% of the 65.8% growth.
For Q4 FY17, Motorized RV's income before tax was $30.6 million, up 37.4% from $22.2 million in Q4 FY16, primarily attributed to the growth in motorized sales and improved SG&A expense as a percent of revenues. Motorized RV backlog increased $453.8 million, or 98.3%, to $915.6 million at the end of the reported quarter versus $461.8 million in the year-ago same period, reflecting the exceptional demand for the Company's smaller gas Class A and Class C motorhomes.
Fiscal 2017 Results
Thor Industries' sales were a record $7.25 billion, up 58.2% from $4.58 billion in FY 2016. Jayco contributed approximately $1.92 billion in sales in FY 2017 and $104.5 million in sales in the year-ago period.
For FY17, Thor Industries' net income from continuing operations was a record $374.3 million, up 45.0% from $258.0 million in FY16. Diluted earnings per share (EPS) from continuing operations for FY17 were a record $7.09, up 44.4% from $4.91 last year. The Company's Consolidated RV backlog on July 31, 2017, was $2.33 billion, up 94.8% from $1.20 billion on July 31, 2016.
Cash Matters
As of July 31, 2017, Thor Industries held $223.3 million of cash. The Company's operating cash flow increased 22.9% to $419.3 million for FY17 compared to $341.2 million for FY16. During FY17, Thor Industries spent $115.0 million on various capital projects that support its existing businesses and increased capacity across its product lines.
Thor Industries also increased its returns to shareholders through dividends, increasing total dividend payments for the year by 10.2% to $69.4 million. At the same time, the Company significantly reduced the outstanding balance under its credit facility. At July 31, 2017, Thor Industries had $145.0 million outstanding under the debt agreement compared to $360.0 million outstanding at July 31, 2016.
Subsequent to July 31, 2017, the Company made additional principal payments on its debt facility totaling $55.0 million, which brings the current remaining balance outstanding under the facility to $90.0 million.
Stock Performance
At the closing bell, on Friday, October 06, 2017, Thor Industries' stock rose 1.53%, ending the trading session at $129.07. A total volume of 720.34 thousand shares have exchanged hands, which was higher than the 3-month average volume of 618.16 thousand shares. The Company's stock price skyrocketed 25.35% in the last three months, 40.61% in the past six months, and 50.41% in the previous twelve months. Moreover, the stock surged 29.01% since the start of the year. The stock is trading at a PE ratio of 18.20 and has a dividend yield of 1.02%. The stock currently has a market cap of $6.72 billion.
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