Thor Industries, Inc. · NYSE:THO
Thor Industries — Q3 FY2023 Earnings Presentation
19 slides from Thor Industries's earnings presentation, Jun 6, 2023
Slide 1: Third Quarter of Fiscal 2023 Financial Results
www.thorindustries.com THIRD 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: Third Quarter Fiscal 2023 Highlights
THIRD QUARTER FISCAL 2023 HIGHLIGHTS 3 Disciplined Production, Variable Cost Model and Strong Performance of the European Segment Underpin Solid Third Quarter Results Net sales of $2.9 billion in 3Q23, down from a fiscal third quarter record of $4.7 billion in the prior - year period ▪ Prudently man
Slide 4: Third Quarter Fiscal Year 2023 Summary, Backlog and Dealer Inventory
$857.9 $7,429.7 $6,899.7 $757.1 $513.7 $896.0 $548.0 $3,550.3 $4,100.0 $1,263.1 $803.5 $3,344.0 $2,878.1 $3,474.3 NA Towables NA Motorized European (3) Includes Tiffin backlog subsequent to the December 2020 acquisition of the Tiffin Group 04/30/19 04/30/20 04/30/21 04/30/22 04/30/23 European $0.87
Slide 5: North American Towable Segment
($ millions) $2,640.1 $1,124.4 3QFY22 3QFY23 17.2% 12.8% 3QFY22 3QFY23 NET SALES Decreased 57 . 4 % * driven by a 57 . 3 % decrease in unit shipments due to a softening in current dealer and consumer demand in comparison with the unusually strong third quarter demand in the prior - year quarter,
Slide 6: North American Motorized Segment
NET SALES Decreased 24 . 4 % * driven primarily by a 21 . 2 % decrease in unit shipments and a 3 . 2 % decrease in the overall net price per unit primarily due to changes in product mix ($ millions) $1,053.0 $795.9 3QFY22 3QFY23 16.5% 11.7% 3QFY22 3QFY23 GROSS PROFIT MARGIN Decreased 480 bas
Slide 7: European Segment
EUROPEAN KEY DRIVERS • Unfavorable foreign exchange impact of 2.7% on net sales compared to prior - year period • Strong order backlog of $3.5 billion • Independent dealer inventory levels of motorized products generally remain below historical levels NET SALES Increased 19 . 7 % * driven by a 22
Slide 8: Strong Financial Position
8 TOTAL LONG - TERM DEBT / TTM EBITDA (3) 1.6x TOTAL LONG - TERM DEBT / TTM ADJUSTED EBITDA (3) 1.4x STRONG FINANCIAL POSITION ($ millions) $339.5 $637.5 $288.8 $474.1 3QFY23 FY23 YTD OPERATING CASH FLOW TOTAL LONG - TERM DEBT (1) ($ millions) LIQUIDITY (2) ($ millions) SELECTED FINANCIAL RATIOS (2)
Slide 9: Capital Management Priorities and Fiscal Year 2023 Actions
CAPITAL MANAGEMENT PRIORITIES AND FISCAL YEAR 2023 ACTIONS Invest in THOR’s business ▪ Capex spending of $150.5 million YTD Pay THOR's dividend ▪ Increased regular quarterly dividend to $0.45 in October 2022 ▪ Represents 13th consecutive year of dividend Reduce the Company's debt obligations ▪ YTD r
Slide 10: Full-Year Fiscal 2023 Guidance
FULL - YEAR FISCAL 2023 GUIDANCE KEY ASSUMPTIONS ▪ Full - year fiscal 2023 guidance was updated to reflect the strong underlying performance of the Company’s fiscal third quarter results as well as the Company’s cautious 4 Q 23 outlook given ongoing volatility and macro uncertainty ▪ Prudent and dis
Slide 11: Key Takeaways
KEY TAKEAWAYS Strong performance in our European segment through efforts of our management team, favorable price - cost realization, operational efficiencies and moderate improvements in chassis supply Disciplined production, operating flexibility and employment of variable cost model in our fiscal
Slide 12: Appendix
APPENDIX 12
Slide 13: 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 14: THOR's Product Leadership
THOR’S PRODUCT LEADERSHIP ( 1 ) As of calendar YTD March 31 , 2023 . 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 prov
Slide 15: Towable RV Wholesale Market Trends
120.8 121.1 156.5 176.5 201.3 194.3 192.2 199.5 229.1 249.7 239.1 207.6 250.6 258.9 298.3 323.0 334.5 298.1 208.6 217.1 227.6 152.4 257.6 282.8 312.8 326.9 442.0 376.0 426.1 359.4 389.6 544.0 434.9 249.3 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2003 2
Slide 16: European Caravan and Motorcaravan Registrations
% Change Total CYTD March 31, 2023 2022 % Change Motorcaravans CYTD March 31, 2023 2022 % Change Caravans CYTD March 31, 2023 2022 Country 3.1 % 23,061 23,770 5.7 % 17,485 18,479 (5.1)% 5,576 5,291 Germany (11.1)% 8,897 7,911 (10.2)% 6,440 5,780 (13.3)% 2,457 2,131 France (7.2)% 6,929 6,427 9.4 % 2,
Slide 17: Consumer Trends Support Long-Term RV Industry Growth
17 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 ~47 % CONSUMER TRENDS SUPPORT LONG - TERM RV INDUSTRY GROWTH Supported by Real Data f
Slide 18: Quarterly EBITDA Reconciliation
18 QUARTERLY EBITDA RECONCILIATION ($ in thousands) TTM Fiscal Quarters TTM $ 564,745 3QFY23 $ 119,729 2QFY23 $ 25,806 1QFY23 $ 137,423 4QFY22 $ 281,787 3QFY22 $ 346,018 Net Income Add Back: 97,378 26,362 25,633 22,807 22,576 22,289 Interest Expense, Net 141,057 35,722 6,912 41,848 56,575 116,389 In
Slide 19: Investor Relations Contact
www.thorindustries.com INVESTOR RELATIONS CONTACT Michael Cieslak, CFA mcieslak@thorindustries.com (574) 294 - 7724