Thor Industries, Inc. · NYSE:THO
Thor Industries — Q2 FY2024 Earnings Presentation
19 slides from Thor Industries's earnings presentation, Mar 6, 2024
Slide 1: Second Quarter of Fiscal 2024 Financial Results
www.thorindustries.com SECOND QUARTER OF FISCAL 2024 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: Second Quarter Fiscal 2024 Summary
SECOND QUARTER FISCAL 2024 SUMMARY SECOND QUARTER FISCAL 2024 HIGHLIGHTS Financial performance reflects efforts to slow output to align wholesale shipments with retail demand and support independent dealers in managing inventory levels ▪ European segment continues to deliver solid year - over - year
Slide 4: Second Quarter Fiscal 2024 Recap
$2,874.4 $10,814.2 $6,056.9 $4,655.2 $948.1 $5,253.6 $10,442.9 $1,153.0 $784.4 $2,916.4 $4,232.5 $1,848.1 $1,072.7 $1,142.0 $2,644.2 $3,051.5 $3,055.7 $2,746.3 1/31/20 1/31/21 1/31/22 1/31/23 1/31/24 European $782.3 35.4% NA Motorized $570.4 25.8% NA Towable $731.0 33.1% Other $123.7 5.7% 115,200 78
Slide 5: North American Towable Segment
($ in Millions) Second Quarter Fiscal 2024 Net Sales YOY Change Gross Profit YOY Change Gross Profit Margin YOY Change $731.0 million (11.9)% $53.9 million 2.0% 7.4% +100 bps NORTH AMERICAN TOWABLE SEGMENT 5 Key Drivers ▪ Unit shipments increased 10 . 2 % primarily due to heightened demand for lower
Slide 6: North American Motorized Segment
($ in Millions) Second Quarter Fiscal 2024 Net Sales YOY Change Gross Profit YOY Change Gross Profit Margin YOY Change $570.4 million (22.8)% $60.7 million (43.4)% 10.6% (390) bps NORTH AMERICAN MOTORIZED SEGMENT 6 Key Drivers ▪ Unit shipments decreased 18 . 4 % due to a softening in current dealer
Slide 7: European Segment
EUROPEAN SEGMENT Key Drivers ▪ Net sales increase driven by a 3 . 9 % increase in unit shipments and a 17 . 0 % increase in the overall net price per unit due to the total combined impact of changes in foreign currency, product mix and price ▪ 2Q24 product mix included higher concentration of sales
Slide 8: Strong Financial Position
NET DEBT / TTM EBITDA 1.5x NET DEBT / TTM ADJUSTED EBITDA 1.4x STRONG FINANCIAL POSITION ($ millions) $91.3 $185.3 $(103.9) $(44.2) FY24 YTD OPERATING CASH FLOW TOTAL LONG - TERM DEBT (1) ($ millions) LIQUIDITY (2) ($ millions) SELECTED FINANCIAL RATIOS (2) (3) TLB $807.6 Senior Unsecured Notes $500
Slide 9: Capital Management Priorities and Fiscal 2024 Actions
CAPITAL MANAGEMENT PRIORITIES AND FISCAL 2024 ACTIONS Invest in THOR’s business ▪ Capex spending of $78.9 million YTD Pay THOR's dividend ▪ Increased regular quarterly dividend to $0.48 in October 2023 ▪ Represents 14 th consecutive year of dividend increases Reduce the Company's debt obligations ▪
Slide 10: Full-Year Fiscal 2024 Guidance
FULL - YEAR FISCAL 2024 GUIDANCE OUTLOOK ASSUMPTIONS ▪ Full - year fiscal 2024 outlook adjusted to reflect persisting macro pressures affecting North American independent dealers and consumers, resulting in reduced consolidated net sales and margin expectations as dealers are expected to maintain hi
Slide 11: Key Takeaways
KEY TAKEAWAYS Managed production and wholesale shipments to reflect current cautious dealer outlook to better position THOR and its North American dealers with lean inventories of appropriate product ahead of the calendar 2024 selling season Continued strong financial performance in our European seg
Slide 12: Appendix
APPENDIX TT , THOR -
Slide 13: The Global RV Industry Leader: THOR Snapshot
The Global RV Industry Leader THOR SNAPSHOT (1) (1) As of July 31, 2023 Founded 1980 Headquarters Elkhart, Indiana Countries with Distribution 25+ Team Members 24,900 Countries with Manufacturing 6 Facilities Worldwide >400 Independent Dealership Locations 3,500 NET SALES BY SEGMENT (1) NET SALES BY
Slide 14: THOR's Product Leadership
THOR’S PRODUCT LEADERSHIP ( 1 ) As of the calendar year ended December 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
Slide 15: Towable RV Wholesale Market Trends
120.8 121.1 156.5 176.5 201.3 194.3 192.2 199.5 229.1 249.7 239.1 207.6 250.6 258.9 298.3 323.0 334.5 298.1 208.6 152.4 217.1 227.6 257.6 282.8 312.8 326.9 442.0 426.1 376.0 359.4 389.6 544.0 434.9 267.3 301.8 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007
Slide 16: Europe Registrations
Europe (1) Source : European Caravan Federation; Calendar years ended December 31, 2023 and 2022; European retail registration data available at www.CIVD.de % Change Total Calendar Year 2023 2022 % Change Motorcaravans Calendar Year 2023 2022 % Change Caravans Calendar Year 2023 2022 Country (0.7)%
Slide 17: Consumer Trends Support Long-Term RV Industry Growth
17 Intention to RV is high Consumer satisfaction among RV owners is very strong RV Owner future purchase intent is high Interest in the RV lifestyle continues to exceed pre - pandemic levels 15 % CONSUMER TRENDS SUPPORT LONG - TERM RV INDUSTRY GROWTH Supported by Real Data from RVers 99 % 57% (1) Si
Slide 18: Quarterly EBITDA Reconciliation
18 QUARTERLY EBITDA RECONCILIATION l Quarters TTM Fisca ($ in thousands) TTM 2QFY24 1QFY24 4QFY23 3QFY23 2QFY23 $ 271,370 $ 5,326 $ 55,033 $ 91,282 $ 119,729 $ 25,806 Net Income Add Back: 97,433 28,229 20,197 22,645 26,362 25,633 Interest Expense, Net (1) 95,470 1,568 17,549 40,631 35,722 6,912 Inco
Slide 19: Investor Relations Contact
www.thorindustries.com INVESTOR RELATIONS CONTACT Michael Cieslak, CFA mcieslak@thorindustries.com (574) 294 - 7724