Thor Industries, Inc. · NYSE:THO
Thor Industries — Q1 FY2020 Earnings Presentation
15 slides from Thor Industries's earnings presentation, Dec 9, 2019
Slide 1: First Quarter 2020 Results
www.thorindustries.com FIRST QUARTER 2020 RESULTS
Slide 2: Forward Looking Statements
2 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 A
Slide 3: Financial Highlights First Quarter Fiscal Year 2020
3 $2.16 bn net sales NA Motorized 19.3% $ 0.42 bn NA Towables 55.6% $ 1.20 bn Other $0.05 bn 2.3% European 22.8% $ 0.49 bn ∼ $500 mm reduction of EHG acquisition - related debt to date (2) 1. 1 Q FY 2020 results include ongoing amortization expense of $ 12 . 7 mm and interest expense of $ 27 . 0 mm
Slide 4: Improved Margins Continue into First Quarter of FY20
4 Improved Margins Continue into First Quarter of FY20 Improved margins are primarily driven by the implementation of key strategic initiatives that led to reductions in material, labor and warranty cost percentages and a favorable shift in product mix in the North American towable segment, our larg
Slide 5: Inventory Rationalization Nearing Completion
5 Inventory Rationalization Nearing Completion North American Independent Dealer Inventory As of October 31, 2019 the level of North American independent dealer inventory of Thor products was approximately 101,500 units, a 22.8% decrease compared to the prior year, indicative that the inventory rati
Slide 6: Debt Reduction and Inventory Management
6 Debt Reduction and Inventory Management Term Loan B Debt • Including payments made subsequent to the end of the first quarter, the Company has paid approximately $ 500 million of principal on its acquisition - related debt • Based on our prepayments of the U . S . dollar - denominated tranche of t
Slide 7: First Quarter 2020 North American Towable Segment
7 First Quarter 2020 North American Towable Segment $1.20 bn in Net Sales Net sales of travel trailers and fifth wheels decreased by 6 . 8 % and 5 . 1 % , respectively, as independent dealers continued to decrease their inventory levels 15.3% Gross Margin Gross margin rose 330 basis points, primaril
Slide 8: First Quarter 2020 North American Motorized Segment
8 $415.9 mm in Net Sales Despite an overall increase in motorized unit sales, fiscal 2020 first quarter net sales decreased by 3 . 6 % compared to the prior year, reflecting a shift in product mix towards lower - priced products First Quarter 2020 North American Motorized Segment 10.8% Gross Margin
Slide 9: First Quarter 2020 European Segment
9 $493.0 mm in Net Sales European RV segment represents the results of the Erwin Hymer Group ("EHG") First Quarter 2020 European Segment $64.6 mm in Gross Profit Gross profit of $ 64 . 6 million, or 13 . 1 % of net sales . Gross profit margin is historically impacted in the fiscal first quarter by r
Slide 10: Quarter Highlights and 2025 Goals
10 Quarter Highlights 2025 GOALS $14bn NET SALES 16% GROSS MARGIN $3bn+ NET CASH FLOW (cumulative) How We Will Get There • Organic growth • New product introductions • Acquisitions • Focus on operating excellence and decreasing costs • Achieve purchasing savings • Improve quality and lower warranty
Slide 11: THOR: Go Everywhere. Stay Anywhere.
THOR Go Everywhere. Stay Anywhere. NORTH AMERICAN TOWABLE EUROPEAN @Q AIRSTREAM z= 3 s@x Buccaneer Carado CK aa Compass Qo Sh puenty sand @ tne 0 CROSSCAMP Dethieffs = ; Ce ta Weegee mit B Elddis ZERIBA ETRVSCO STARCRAFT. & rrecontour Gowpscumirr =HYMER NORTH AMERICAN — Gic> McRent MOTORIZED ore BAK
Slide 12: RV Industry Overview — North America
12 Calendar Year YTD September 2017 2018 2018 2019 Industry Retail Registrations (1) 471,100 units 487,893 units 413,412 units 380,942 units +13.2% +3.6% +6.0% (7.9)% Industry Wholesale Shipments (2) 504,599 units 483,672 units 378,718 units 309,938 units +17.2% (4.1)% +0.2% (18.2)% RV Industry Over
Slide 13: RV Industry Overview — North America Wholesale Market Trends
13 RV Industry Overview — North America RV Wholesale Market Trends (Units 000's) Towable RV Wholesale Market Trends (Units 000's) YTD Shipments (Units) Sept. 2019 Sept. 2018 Unit Change % Change 309,938 378,718 (68,780) (18.2)% YTD Shipments (Units) Sept. 2019 Sept. 2018 Unit Change % Change 273,629
Slide 14: RV Industry Overview — Europe
14 RV Industry Overview — Europe 1. Source: European Caravan Federation (ECF), 2018 and 2019 calendar YTD through September; European retail registration data av ail able at www.CIVD.de 2. Source: Statistical Surveys (www.statisticalsurveys.com) Country Caravans Motorcaravans Total YTD Sept. 30, % Y
Slide 15: Contact: Investor Relations
www.thorindustries.com CONTACT: Investor Relations Mark Trinske Vice President of Investor Relations mtrinske@thorindustries.com (574) 970 - 7912