Thor Industries, Inc. · NYSE:THO
Thor Industries — Q3 FY2018 Earnings Presentation
34 slides from Thor Industries's earnings presentation, Jun 7, 2018
Slide 1: Investor Presentation June 6, 2018
INVESTOR PRESENTATIONJUNE 6, 2018
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 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 193
Slide 3: Joint Venture Thor Operating Entities
Joint Venture Thor Operating Entities
Slide 4: Table of Contents
Table of Contents Overview & Current Industry Conditions 5Third Quarter 2018 Update 16Appendix: Financial & Market Data 23
Slide 5: Overview & Current Industry Conditions
Overview & Current Industry Conditions 5 5
Slide 6: Thor – Strong Investment Appeal
Thor – Strong Investment Appeal Solid growth company throughout its 37-year history – 27.9% compounded annual five-year EPS growth* Balance of organic growth and accretive acquisitions Market leader in a growing industry – Recreational Vehicle (RV) shipments grew 17.2% in calendar 2017 to a record l
Slide 7: Continued Favorable Macro Environment
34% Of RVs sold in 2016 were to first-time buyers – 8 in 10 of those new buyers were under age 65 ** 12% CAGR in new RV unit shipmentssince 2012 * Solid Economic Fundamentals Support Continued RV Industry Growth High consumer confidence driven by favorable employment and wage trendsContinued gains i
Slide 8: Consumer Trends Support Continued RV Industry Growth
Consumer Trends Support Continued RV Industry Growth * Source: RVIA, RV Industry Power Breakfast Presentation, May 2017** Source: RVIA, RV Shipments, YTD December 2017 THE OPPORTUNITY: If an additional 1% of potential first-time buyers interested in new RVs enter the RV lifestyle, that represents th
Slide 9: Trends Driving Growth: Demographics
Trends Driving Growth Demographics Total number of camping households in the U.S. is estimated at more than 77 million households*+6 million new households have started camping since 2014 – this is an increase of 2.6 million new camper households in 2017* As campers age, they begin to camp more usin
Slide 10: Trends Driving Growth: Lifestyle
Trends Driving Growth Lifestyle Outdoor RecreationOutdoor Recreation Industry, a major contributor to the overall economy, is growing at a faster rate than overall GDP*Trend toward a more active and healthier lifestyle Growing use of RVs with youth sports leagues and tournaments Camping** The number
Slide 11: Trends Driving Growth: Affordability, Flexibility & Convenience
Trends Driving Growth Affordability, Flexibility & Convenience Benefits of RV TravelRV vacations offer greater savings over those taken using a personal car or airline, staying in a hotel or rental home, and eating in restaurants, regardless of duration, distance, or region of the country visited*On
Slide 12: Health of the RV Channel
Health of the RV Channel Dealer Inventory Levels:Overall dealer inventory levels generally appropriate for seasonal consumer demand, although levels elevated as of April 30, 2018 in certain locations due to:dealers' desire to carry more product going into spring selling seasonunfavorable early sprin
Slide 13: Opportunities for Continued Growth: Product Innovations & Manufacturing
Opportunities for Continued GrowthProduct Innovations & Manufacturing Continuous investments in new products, features and floorplansShort product development cycle enables us to introduce new models every year, reinforcing the consumer trade-in cycleOrganic growth through continued investment in ne
Slide 14: Opportunities for Continued Growth: Further Market Penetration
Opportunities for Continued GrowthFurther Market Penetration Expanded Thor marketing effortsMarketing to younger families and more diverse consumer segmentsGo Your Own Way™ campaign launched September 2017RVIA's Go RVingTM campaign continues to reach new consumers through:"AWAY" advertising campaign
Slide 15: Opportunities for Continued Growth: Adjacent RV Categories
Opportunities for Continued GrowthInvesting in Adjacent RV Categories Formed joint venture (TH2), in Q3 FY18, dedicated to providing a variety of products and services focused on enhancing the enjoyment, safety, connectivity and convenience of RV ownership and useObjective to provide innovation solu
Slide 16: Third Quarter 2018 Update
Third Quarter 2018 Update
Slide 17: Third Quarter Key Messages
Third Quarter Key Messages Strategic Execution Outlook Consumer Demand All-time record 3rd quarter revenues and earnings Strong sales growth in both segments – Towables (+12.8%) and Motorized (+8.8%)Execution of our strategic planCapacity expansions normalized backlog and provide ability to realize
Slide 18: Third Quarter 2018 Record Results
Third Quarter 2018Continued Growth Results in Record 3rd Quarter Results All-time record 3rd quarter sales and net income Gross profit up, as the benefit from strong sales growth was partially offset by increased costs, primarily associated with warranty expenses, as well as slightly higher labor an
Slide 19: Third Quarter 2018 Towable Segment
Third Quarter 2018Towable Segment Sales of travel trailers increased by 13.9% and fifth wheels by 11.1%Market share down through March 2018, with U.S. Towable share decreasing from 48.1% to 46.5%, and Canadian Towable share down from 57.3% to 54.3%*Backlog represents a return to more normalized, hea
Slide 20: Third Quarter 2018 Motorized Segment
Third Quarter 2018Motorized Segment Sales of Class A increased by 12.5% and Class C by 6.6%U.S. Class A and C market share through March 2018 decreased from 43.2% to 42.5%*Canadian Class A and C market share increased from 57.1% to 63.7% through March 2018*Backlog represents a return to more normali
Slide 21: Third Quarter Key Stats
Third Quarter Key StatsAs of or for nine months ended April 30 Balance sheet remains very healthyDuring the first nine months of fiscal 2018, we invested over $100.0 million on various capital projects that support our existing business, while working capital increased $172.7 million to support our
Slide 22: Historical Key Stats
Historical Key StatsAs of or for the fiscal years ended July 31 Income Statement Balance Sheet & Cash Flow 5-year CAGR: +22.4% 5-year CAGR: +27.5% 5-year CAGR: +27.4% 5-year CAGR: 27.9% 5-year CAGR: +28.7%
Slide 23: Appendix: Financial & Market Data
Appendix: Financial & Market Data
Slide 24: Thor's RV Product Range
Thor's RV Product Range Towable Segment Motorized Segment * Note: Retail prices noted above are general ranges. Class Afully enclosed, bus-style motorhome; retail price $80,000 - $700,000 Class Cliving area built on van or pickup chassis;retail price $80,000 - $250,000 Class Bvan motorhomes;retail p
Slide 25: Seasonal Shipment Patterns
Seasonal Shipment Patterns * Source: Statistical Surveys, Inc., U.S. and Canada** Source: Recreation Vehicle Industry Association
Slide 26: RV Wholesale Market Trends
RV Wholesale Market Trends (Units 000s) Historical Data: Recreation Vehicle Industry Association (RVIA) (e) Calendar year 2018 represents most recent RVIA estimate as of Spring RV Roadsigns, published in March 2018 5-year: CAGR: +12.0% YTD Shipments (units) April 2018 April 2017 Unit Change % Change
Slide 27: RV Wholesale Market Towable Trends
RV Wholesale Market Towable Trends (Units 000s) Historical Data: Recreation Vehicle Industry Association (RVIA) (e) Calendar year 2018 represents most recent RVIA estimate as of Spring RV Roadsigns, published in March 2018 5-year CAGR: +11.4% YTD Shipments (units) April 2018 April 2017 Unit Change %
Slide 28: RV Wholesale Market Motorized Trends
RV Wholesale Market Motorized Trends (Units 000s) Historical Data: Recreation Vehicle Industry Association (RVIA) (e) Calendar year 2018 represents most recent RVIA estimate as of Spring RV Roadsigns, published in March 2018 5-year CAGR: +17.3% YTD Shipments (units) April 2018 April 2017 Unit Change
Slide 29: Consumer Confidence vs. RV Retail Registrations
Consumer Confidence vs. RV Retail Registrations * Source: Statistical Surveys, Inc., U.S. and Canada** Source: The Conference Board, Consumer Confidence Survey ®
Slide 30: RV Industry Demand
RV Industry Demand * Statistical Surveys, Inc., includes US and Canada. 2016 & 2017 Full Year Actual, 2017 & 2018 YTD through March – Note: Data reported by Stat Surveys is subject to adjustment and is continuously updated** RVIA wholesale shipments for full years 2016 & 2017, 2017 & 2018 YTD throug
Slide 31: Thor Dealer Inventory
Thor Dealer Inventory Inventory levels are generally appropriate for seasonal consumer demand given ongoing retail sales combined with high level of dealer optimism about calendar 2018At the end of 3Q FY18, levels were elevated compared to the prior year due to:Many dealers' strategic decisions to c
Slide 32: RV Industry Retail Market Share
YTD 3/31/18 Y/E 12/31/17 Y/E 12/31/16 Y/E 12/31/15 Total Share % Total Share % Total Share % Total Share % THOR* 43,340 46.1 % 223,214 48.0 % 196,947 47.3 % 178,520 47.6 % Forest River** 31,448 33.4 % 158,626 34.1 % 145,482 35.0 % 132,923 35.4 % Grand Design 4,983 5.3 % 18,280 3.9 % 11,818 2.8 % 7,0
Slide 33: Thor RV Retail Market Share Trend
Thor RV Retail Market Share Trend(Units) * Source: Statistical Surveys Inc., U.S. and Canada, calendar years 2014-17, 2018 YTD through March. Historical results adjusted to include results of Jayco, Livin’ Lite, Bison Coach, K-Z, Inc., Cruiser RV and DRV Luxury Suites for all periods presented. Note
Slide 34: www.thorindustries.com
www.thorindustries.com