Thor Industries, Inc. · NYSE:THO
Thor Industries — Q3 FY2019 Earnings Presentation
25 slides from Thor Industries's earnings presentation, Jun 10, 2019
Slide 1: Investor Presentation June 10, 2019
www.thorindustries.com INVESTOR PRESENTATION JUNE 10, 2019
Slide 2: Forward Looking Statements
Forward Looking Statements 2 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 A
Slide 3: Table of Contents
Third Quarter Update 2019 Overview & Current Industry Conditions Appendix: Financial & Market Data 4 11 19 Table of Contents 3
Slide 4: Third Quarter Update 2019
Third Quarter Update 2019 4
Slide 5: Third Quarter Overview
Third Quarter Overview • European expansion critical step on our long - term strategic plan ◦ Closed on acquisition of Erwin Hymer Group (EHG) on February 1 , 2019 . Transformational acquisition to provide platform for long - term, global growth ◦ Thi r d - quarter r esults include acquisition - r e
Slide 6: Third Quarter 2019 Key Financial Metrics
Third Quarter 2019 Key Financial Metrics Net Sales ($ millions) 3QFY18 3QFY19 $2,251.6 $2,506.6 Gross Profit ($ millions) 3QFY18 $316.7 $292.4 Diluted EPS 6 $2.53 $0.59 • Net sales increased 11.3% to $2.51 billion in the third quarter, including the $767.5 million impact of the acquisition of EHG. •
Slide 7: Third Quarter 2019 North American Towable Segment
Third Quarter 2019 North American Towable Segment • Net sales of travel trailers and fifth wheels decreased by 25 . 0 % and 20 . 0 % , respectively, as a result of the ongoing independent dealer inventory rationalization • Gross profit was adversely impacted by lower sales volume and increased disco
Slide 8: North American Motorized Segment
8 • Net sales of Class A and Class C decreased by 26.1% and 19.4%, respectively • Gross profit fell in the fiscal second quarter as a result of reduced sales levels resulting in reduced fixed overhead absorption for the quarter • U.S. Class A and C market share for the three months ended March 31, 2
Slide 9: Third Quarter 2019 European Segment
Third Quarter 2019 European Segment • European RV segment includes the results of newly - acquired EHG for the three months of operations since the February 1 , 2019 acquisition date • Net sales for the European RV segment includes sales of caravans of $ 100 . 7 million, motorcaravan sales of $ 507
Slide 10: Third Quarter Key Stats
Third Quarter Key Stats Fiscal Quarters Ended April 30 (Except for Debt) Income Statement Net Sales ($ millions) 3QFY16 3QFY17 3QFY18 3QFY19 $1,284.1 $2,015.2 $2,251.6 $2,506.6 3QFY18 3QFY19 $ 11 6.3 $166.2 $180.5 $41.5 3QFY16 3QFY17 3QFY18 3QFY19 3QFY16 3QFY17 15.7% 14.6% 14.1% 11 .7% 3QFY16 3QFY17
Slide 11: Overview & Current Industry Conditions
Overview & Current Industry Conditions 11
Slide 12: Long-Term Operational Excellence
FY15 FY16 FY17 FY18 FY19 $0.30 $0.33 $0.37 $0.39 Long - Term Operational Excellence • 38 - year record of profitability — 23.3% compounded annual five - year EPS growth (1) ◦ Balance of organic growth and accretive acquisitions • Experienced leadership — Current Thor management team has an average o
Slide 13: Thor Operating Entities
Thor Operating Entities Joint V entu r e 13
Slide 14: Thor's RV Product Range
Thor's RV Product Range North Ameri c an Towable Segment North American Mo t ori z ed Segment Note: Retail prices noted above are general ranges. Class A fully enclosed, bus - style Retail price: $80,000 - motorhome; $750,000 Class C living area built on van or pickup Retail price: $80,000 chassis;
Slide 15: Effectively Managing Through Independent Dealer Inventory Rationalization
Effectively Managing Through Independent Dealer Inventory Rationalization Flexing Production and Costs Independent Dealers Making Progress on Inventory Levels Continuing to Invest with a Long - term Focus • Based on current trends, it appears the North American retail market will likely be softer fo
Slide 16: Healthy North American RV Channel
Healthy North American RV Channel 16 Independent Dealer Inventory Approaching Normalized Levels: • Following inventory shortages in FY 17 , independent dealers ordered aggressively in early FY 18 • Although retail demand grew modestly in calendar 2018 , that growth was not sufficient to bring indepe
Slide 17: North American Consumer Trends
North American Consumer Trends Potential RV Buyers 7 8.8 Million Households Camping Each Year (1) Consumers Interested in RVs T a r get ? KOA study shows that 78 . 8 million households camped in 2018 , an increase of more than 7 million from 2014 , and they camped more often . ( 1 ) ? Campers who bo
Slide 18: Younger, More Diverse Consumers
Younger, More Diverse Consumers The Future of the RV Market 18 • Millennials represented 41 % of active campers in 2018 , but made up 56 % of new campers, illustrating the continued growth of this group • Among millennials, 32 % consider themselves "lifelong campers," while 38 % of Gen X identify th
Slide 19: Appendix: Financial & Market Data
Appendix: Financial & Market Data 19
Slide 20: RV Industry Overview — North America
RV Industry Overview — North America Seasonal Shipment Patterns RV Retail Registrations (1) RV Wholesale Shipments (2) 60,000 50,000 40,000 30,000 20,000 10,000 0 RV Industry Demand • Industry retail demand continued to grow in 2018 , though the pace of growth moderated from the unusually high doubl
Slide 21: RV Wholesale Market Trends
21 RV Industry Overview — North America RV Wholesale Market Trends (Units 000's) 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 (e) 2020 (e) 106.9
Slide 22: Thor RV Retail Market Share Trend
22 RV Industry Overview — North America Thor RV Retail Market Share Trend (1) Independent Dealer Inventory of Thor Products RV Industry Retail Market Share (1) (1) Source: Statistical Surveys Inc., U.S. and Canada, calendar years 2015 - 2018, 2019 YTD through March; Thor historical results adjusted
Slide 23: RV Industry Overview — Europe
RV Industry Overview — Europe Country Caravans YTD March 31, % 2019 2018 Change Motorcaravans YTD March 31, % 2019 2018 Change Total YTD March 31, % 2019 2018 Change Germany 6,079 5,574 9.1 % 12,162 12,081 0.7 % 18,241 17,655 3.3 % U.K. 5,573 5,463 2.0 % 3,812 3,714 2.6 % 9,385 9,177 2.3 % France 1,
Slide 24: New Vehicle Registrations by Continent
Sources: CIVD; Statistical Surveys (www.statisticalsurveys.com) RV Industry Overview New Vehicle Registrations by Continent ('000) Europe North America 600 24 500 400 300 200 100 0 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 20 1 1 20
Slide 25: THOR
THOR ‘Go Everywhere. Stay Anywhere