THOR Industries, Inc. · NYSE:THO
THOR Industries — Investor Presentation (2006)
32 slides from THOR Industries's investor presentation, Nov 6, 2006
Slide 1: Driving For Excellence
Driving For Excellence www.thorindustries.com 2006
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS This presentation contains forward-looking statements within the meaning of the private Securities Litigation Reform Act of 1995. Investors are cautioned that forward-looking statements are inherently uncertain. A number of factors could cause actual results to differ mate
Slide 3: Driving For Excellence
- Driving For Excellence • #1 in two markets, RVs and Buses. • Cash of $264 million on 7/31/06 and zero debt. • Generates substantial cash. • Profitable every year since inception; only company. • $3.066 billion sales in fiscal 2006. • Increased annual per-share dividend payout rate from $.02 to $.2
Slide 4: Company History
Company History • Founded in 1980 • Built from scratch • IPO 1984, NYSE 1986 • Largest builder of RVs - 29% of industry - 90% of sales • Largest builder of mid-size buses - 39% of industry - 10% of sales
Slide 5: Sales ($ millions)
Sales ($ millions) + 20% $3,066 $ 3,000 $2,558 $ 2,500 $2,188 $ 2,000 $1,571 $ 1,500 $1,245 $822 $ 1,000 $ 500 $0 2001 2002 2003 2004 2005 2006 Years ended 7/31
Slide 6: Product Revenue Breakout
PRODUCT REVENUE BREAKOUT 10% 5% 14% Class Cs Class As BUS MOTORIZED 2% Park Models 5th Wheels Travel Trailers 35% TOWABLES Buses 71% - fastest growing and most stable RV segment 34%
Slide 7: Net Income ($ millions)
Net Income ($ millions) +42% $200 $172.5 $ 15 0 $121.8 $106.1 $ 10 0 $78.6 $51.2 $50 $26.7 $0 2001 2002 2003 2004 2005 2006 Years ended 7/31
Slide 8: E.P.S.
E.P.S. +42% $3.05 $3.00 $2.15 $2.25 $1.85 $1.38 $1.50 $.94 $.56 $0.75 $0.00 2001 2002 2003 2004 2005 2006 Years ended 7/31
Slide 9: Backlog ($ millions)
BACKLOG ($ millions) (as of July 31) 2006 2005 % change RV Towables $230 $202 +14% Motorized 103 134 -23% Sub-total 333 336 - 1% Bus 216 131 +66% Total $549 $467 +18%
Slide 10: RV Sales ($ millions)
RV Sales ($ millions) 29% Market Share +19% $2,751 $2,800 $2,308 TOWABLES $2,400 $2,174 12% $1,973 TOWABLES $2,000 Market Share $1,742 TOWABLES $1,600 $1,354 $1,434 $1,200 $973 TOWABLES $1,126 MOTORIZED MOTORIZED $800 $530 MOTORIZED $577 $539 $566 MOTORIZED $400 $228 $0 2001 2002 2003 2004 2005 2006
Slide 11: RV Income Before Taxes ($ millions)
RV Income Before Taxes ($millions) $300 $270.3 +40% TOWABLES $242.9 $225 $193.2 $173.0 TOWABLES $150 $122.7 $144.9 TOWABLES $168.6 TOWABLES $110.7 $77.5 $75 MOTORIZED MOTORIZED $25.3 $28.1 MOTORIZED $27.4 MOTORIZED $24.6 $12.0 $0 2001 2002 2003 2004 2005 2006 Years ended 7/31
Slide 12: Bus Sales ($ millions)
Bus Sales ($ millions) 39% Market Share 37% +26% $316 Market Share $292 $300 $271 $250 $217 $215 $200 $100 $0 2001 2002 2003 2004 2005 2006 Years ended 7/31
Slide 13: Bus Income Before Taxes ($ millions)
Bus Income Before Taxes ($ millions) $30 $20.2 + 25% $20 $15.0 $12.3 $9.6 $9.4 $10 $7.5 $0 2001 2002 2003 2004 2005 2006 Years ended 7/31
Slide 14: U.S. RV Industry Shipments
U.S. RV Industry Shipments • Industry shipments up 3.9% in 2005 to 384,400 units, a record. • Travel trailers and fifth wheels (93% of our RV unit sales) up 10.5% in 2005. • Motor homes down 14.5% in 2005. • Travel trailer and fifth wheels units +21% through 7/31/06. • Motor home units -12% through
Slide 15: Favorable Demographic Trends
Favorable Demographic Trends • Baby Boomers (55-64) are industry “sweet spot”. • 78 million with discretionary wealth and leisure time. • Want the freedom that RVing offers. • 27% of U.S. population is over 55. Controls 75% of U.S.financial wealth. • Growing by 350,000 monthly.
Slide 16: Baby Boomers
BABY BOOMERS • 55-64 age group will grow 48% between now and 2010. That is 5 times the expected 9% growth of the total population. +48% 50% 40% 30% 20% +9% 10% 0% Total Population 55-64 Age Group *U.S. Census Bureau, 2000
Slide 17: Thor - Taking Advantage of Positive RV Growth Factors
Thor - Taking Advantage of Positive RV Growth Factors • Major upgrade and expansion of physical plant. – Added over 3.7 million sq. ft. of state-of-the-art manufacturing space in last 5 years. • Spent $30 million in fiscal 2006 and $48 million in fiscal 2005 in capital projects. – Keystone plant of
Slide 18: Thor RV Innovation
Thor RV Innovation Keystone Montana Dutchmen Grand Junction Four Winds Mandalay-diesel motor home CrossRoads Zinger
Slide 19: Thor RV Innovation
Thor RV Innovation Airstream International Travel Trailer with high design interior appealing to younger buyers.
Slide 20: U.S. RV Industry
U.S. RV Industry Retail registrations (units) THOR’S PURCHASING LEVERAGE 7 months ended 7/ 31/06 SHARE TOTAL* 2006 2005 Thor 53,061 29.2% 27.5% Forest River 27,009 14.8% 14.2% Fleetwood 15,459 8.5% 10.6% Jayco 15,138 8.3% 7.8% Monaco 10,125 5.5% 6.4% Coachmen 6,158 3.4% 4.8% Winnebago 5,967 3.3% 3.4
Slide 21: U.S. Mid-Size Bus Industry
U.S. Mid-Size Bus Industry • Mid-size buses are the most cost effective, common sense mass transportation. – Vastly superior fuel economy. – Much lower up front and operating costs. • Up 11% in 2005 to 12,395 units versus 11,196 units in 2004 and is up 11% in the first 6 months of 2006. • Industry a
Slide 22: Thor Bus Leads the Industry
Thor Bus Leads the Industry • #1 in $900 million industry. • 39% market share. • Leader in low cost, fuel efficient transit, alternative fuels. • Entered 40-ft. low floor bus industry.
Slide 23: Thor Bus Leads the Industry
Thor Bus Leads the Industry • Profits are improving. • Best sales and service network. • 90% of our buses have certified 5-year life. Must be replaced. • Sales in fiscal 2005 were up 16%. • Sales in fiscal 2006 were up 26%. • Certified ISO 9001-2000. World class quality.
Slide 24: Thor Bus Innovation
Thor Bus Innovation 40 ft. low-floor Axess Aero Elite 35 ft. low-floor E-Z Rider II Max Aerotech
Slide 25: Corporate Integrity
Corporate Integrity • No excessive compensation, stock options, or restricted stock for Chairman or Vice Chairman. • Compensation philosophy simple: – Pay key people primarily cash, without a cap, based on income before taxes. – Stock options, restricted stock, etc. minimal. About 1¢ per share. • No
Slide 26: Thor Highlights
Thor Highlights Year ended 7/31 SALES NET INCOME E.P.S. $60 $3,066 $3.05 $200 $3,000 $172.5 $3.00 $2,558 $50 $2,500 $150 $2.50 $2.15 $40 $121.8 $2,000 $2.00 $30 $100 $1.50 $1,500 $20 $1.00 $1,000 $50 $10 $.50 $500 $0 $.00 $0 $0 2005 2006 2005 2006 2005 2006 +20% +42% +42% $ millions, except E.P.S.
Slide 27: Major Goals
Major Goals • Expanding #1 position in our two industries, highly profitably. • Not satisfied. No complacency, raising the bar. • 20% net income growth per year. 15% sales growth. • Continued margin improvement. – Increased revenues. – Purchasing leverage. – Cost reductions. • Increase shareholder v
Slide 28: Stock Performance
Stock Performance As of October 13, 2006 5 year MARKET CAPITALIZATION Price (000) Growth** •THO +593% $ 2,650,000* •WGO + 164% $ 1,050,000 •COA + 51% $ 199,000 •MNC - 15% $ 376,000 •FLE - 32% $ 513,000 •NVH - 68% $ 32,000 •S&P 500 + 35% N/A ** Adjusted for stock splits and dividends. * Thor market c
Slide 29: Unsurpassed Growth Record
Unsurpassed Growth Record Over the past 5 years: • Sales have grown at an average compound rate of 31%. • Net income has grown at an average compound rate of 47%. • E.P.S. has grown at an average compound rate of 41%.
Slide 30: Late Breaking News
LATE BREAKING NEWS • Thor travel trailer and fifth wheel retail sales up 3.8% through July 2006. Industry up .4%. Market share is 32.1%, up from 31.0%. • Thor motor home retail sales down 3.5% through August 2006. Industry segment down 13.1%. Thor motorized market share 14.4% vs. 12.9% last year. Th
Slide 31: Continuing Strong, Profitable Growth
Continuing Strong, Profitable Growth • Way out performing competition in both segments of RV industry. • Market leader in our two industries. – RV in a growth phase and will continue to be a major cash generator. – Bus has turned the corner and is in an upward trend. • Unmatched RV purchasing power.
Slide 32: Driving For Excellence
Driving For Excellence www.thorindustries.com 2006