Thor Industries, Inc. · NYSE:THO
Thor Industries — Q1 FY2023 Earnings Presentation
20 slides from Thor Industries's earnings presentation, Dec 7, 2022
Slide 1: First Quarter of Fiscal 2023 Financial Results
www.thorindustries.com FIRST QUARTER OF FISCAL 2023 FINANCIAL RESULTS
Slide 2: Forward-Looking Statements
FORWARD - LOOKING STATEMENTS This presentation includes certain statements that are “forward - looking” statements within the meaning of the U . S . Private Securities Litigation Reform Act of 1995 , Section 27 A of the Securities Act of 1933 , as amended, and Section 21 E of the Securities Exchange
Slide 3: First Quarter Fiscal 2023 Highlights
FIRST QUARTER FISCAL 2023 HIGHLIGHTS 3 Resilient Financial Performance Continues in a Shifting Market Net sales of $3.1 billion in 1Q23, down from a fiscal first quarter record of $4.0 billion in the prior - year period ▪ Towable production continued to be actively managed to align to retail demand
Slide 4: First Quarter of Fiscal Year 2023 Results, Backlog and Dealer Inventory
$4,397.7 $10,444.7 $740.2 $670.0 $2,215.1 $4,277.4 $2,864.3 $1,292.1 $2,308.5 $3,348.4 $2,985.2 NA Towables NA Motorized European (3) Includes Tiffin backlog subsequent to the December 2020 acquisition of the Tiffin Group European $0.50 bn 16.2% NA Motorized $1.12 bn 36.1% NA Towables $1.32 bn 42.4%
Slide 5: North American Towable Segment
($ millions) $2,240.8 $1,317.8 1QFY22 1QFY23 18.2% 14.9% 1QFY22 1QFY23 NET SALES ,!J Decreased 41 . 2 % * driven by a decrease in unit shipments, partially offset by net selling price increases and a change in product mix Decreased 330 basis points* driven primarily by an increase in sales discounts
Slide 6: North American Motorized Segment
NET SALES is Increased 21.5%* driven primarily by an increase in unit shipments due to continuing independent dealer restocking of certain motorized products, and net selling price increases, partially offset by changes in product mix ($ millions) $925.0 $1,123.5 1QFY22 1QFY23 15.1% 16.5% 1QFY22 1QF
Slide 7: European Segment
EUROPEAN KEY DRIVERS • Net sales decreased 5.9% on a constant - currency basis • Strong order backlog of $3.0 billion • Independent dealer inventory levels remain near historically low levels NET SALES - 0J Decreased 20 . 3 % * driven by a 19 . 3 % decrease in unit shipments due primarily to continu
Slide 8: Strong Financial Position
TOTAL LONG - TERM DEBT / TTM EBITDA (3) 1.0x TOTAL LONG - TERM DEBT / TTM ADJUSTED EBITDA (3) 1.0x STRONG FINANCIAL POSITION ($ millions) $41.8 $94.0 1QFY22 1QFY23 OPERATING CASH FLOW TOTAL LONG - TERM DEBT (1) ($ millions) (1) Total debt obligations as of October 31, 2022 inclusive of the current p
Slide 9: Capital Management
CAPITAL MANAGEMENT CAPITAL ALLOCATION PRIORITIES Invest in THOR’s business ▪ Capex spending of $55.9 million in 1Q23 Pay THOR's dividend ▪ Increased regular quarterly dividend to $0.45 ▪ Represents 13th consecutive year of dividend increases Reduce the Company's debt obligations ▪ Reduced debt with
Slide 10: Fast + Flexible + Focused Business Model
Proven Track Record of Managing Through Economic Cycles and Emerging a Stronger Company FAST + FLEXIBLE + FOCUSED BUSINESS MODEL Positions THOR to Outperform the Industry in Fiscal 2023 FAST & FLEXIBLE LONG - TERM FOCUS Variable Cost Structure Strategic Growth Opportunities ✓ Labor and variable cost
Slide 11: Full-Year Fiscal 2023 Guidance
FULL - YEAR FISCAL 2023 GUIDANCE KEY ASSUMPTIONS ▪ North American wholesale shipments aligned with the RVIA’s December 2022 forecasted shipment range for calendar 2023 (between 379 , 200 and 403 , 600 units) ▪ European shipment volumes anticipated to remain constrained due to chassis supply ▪ Materi
Slide 12: 1Q 2023 Key Takeaways
1Q 2023 KEY TAKEAWAYS THOR continues to deliver strong financial results while adjusting to dynamic market conditions Variable cost structure and experienced management teams to help maintain sustainable gross margin performance through market volatility Fast, flexible and focused business model to
Slide 13: Appendix
APPENDIX 13
Slide 14: THOR Overview
THOR OVERVIEW The Global RV Industry Leader WHO WE ARE • Experienced growth - oriented team • Leading brands • Cash generation focus • Customer - centric innovation • 42 years of uninterrupted profitability FOUNDED IN 1980 ~32,000 EMPLOYEES (1) >400 WORLDWIDE FACILITIES (1) ~3,500 INDEPENDENT DEALER
Slide 15: THOR's Product Leadership
THOR’S PRODUCT LEADERSHIP ( 1 ) As of calendar YTD September 30 , 2022 . Data reported by Statistical Surveys, Inc is based on official state and provincial records . This information is subject to adjustment, is continuously updated and is often impacted by delays in reporting by various states or
Slide 16: Towable RV Wholesale Market Trends
120.8 121.1 156.5 176.5 201.3 194.3 192.2 199.5 229.1 249.7 239.1 207.6 250.6 258.9 298.3 323.0 334.5 298.1 208.6 152.4 217.1 227.6 257.6 282.8 312.8 326.9 442.0 376.0 426.1 359.4 389.6 544.0 435.7 337.8 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2
Slide 17: European Caravan and Motorcaravan Registrations
Country Caravans CYTD September 30, 2022 2021 % Change Motorcaravans CYTD September 30, 2022 2021 % Change Total CYTD September 30, 2022 2021 % Change Germany 21,110 21,705 (2.7) % 56,901 68,540 (17.0) % 78,011 90,245 (13.6) % France 5,844 5,525 5.8 % 20,031 26,502 (24.4) % 25,875 32,027 (19.2) % U.
Slide 18: Consumer Trends Support Long-Term RV Industry Growth
18 Repurchase intentions indicate “stickiness” of RV lifestyle Consumer satisfaction among RV owners is very strong RV utilization remains high Interest in the RV lifestyle continues to exceed pre - pandemic levels CONSUMER TRENDS SUPPORT LONG - TERM RV INDUSTRY GROWTH Supported by Real Data from RV
Slide 19: Quarterly Adjusted EBITDA Reconciliation
19 QUARTERLY ADJUSTED EBITDA RECONCILIATION ($ in thousands) TTM Fiscal Quarters Net Income 1QFY22 $244,803 2QFY22 $ 265,635 3QFY22 $ 346,018 4QFY22 $ 281,787 1QFY23 $ 137,423 TTM $1,030,863 Add Back: Interest Expense, Net 20,720 24,507 22,289 22,576 22,807 92,179 Income Taxes 68,039 80,618 116,389
Slide 20: Investor Relations Contact
www.thorindustries.com INVESTOR RELATIONS CONTACT Michael Cieslak, CFA mcieslak@thorindustries.com (574) 294 - 7724