Thor Industries, Inc. · NYSE:THO
Thor Industries — Q2 FY2023 Earnings Presentation
19 slides from Thor Industries's earnings presentation, March 2023
Slide 1: Second Quarter of Fiscal 2023 Financial Results
SECOND QUARTER OF FISCAL 2023 FINANCIAL RESULTS www.thorindustries.com
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: Second Quarter Fiscal 2023 Highlights
SECOND QUARTER FISCAL 2023 HIGHLIGHTS Resilient Performance in a Challenging Market Environment Net sales of $2.3 billion in 2Q23, down from a fiscal second quarter record of $3.9 billion in the prior-year period ▪ Macroeconomic conditions continued to contribute to softening retail demand and slowi
Slide 4: Second Quarter of Fiscal Year 2023
SECOND QUARTER OF FISCAL YEAR 2023 NORTH AMERICAN INDEPENDENT DEALER INVENTORY OF THOR PRODUCTS 137,900 121,300 Net Sales $2.3 billion 115,200 112,000 (1) (39.4)% 78,100 (2) (2) (2) 1/31/19 1/31/20 1/31/21 1/31/22 1/31/23 Unit Shipments NA Motorized $0.74 bn Inventory Units (2) 37,960 31.5% Includes
Slide 5: North American Towable Segment
($ millions) NORTH AMERICAN NET SALES ò TOWABLE SEGMENT $1,985.1 Decreased 58.2%* driven by a 64.6% decrease in unit shipments in part due to independent dealers restocking their Second Quarter of inventory in the prior-year, partially $829.8 Fiscal 2023 offset by net selling price increases and a c
Slide 6: North American Motorized Segment
($ millions) NORTH AMERICAN NET SALES ò MOTORIZED SEGMENT Decreased 24.4%* driven primarily by a 26.3% decrease in unit shipments, $976.8 partially offset by net selling price $738.6 Second Quarter of increases and a change in product mix Fiscal 2023 2QFY22 2QFY23 NORTH AMERICAN MOTORIZED KEY DRIVER
Slide 7: European Segment
($ millions) NET SALES ò EUROPEAN SEGMENT Decreased 10.6%* driven by a 15.3% $723.7 decrease in unit shipments due $646.9 primarily to continuing chassis supply Second Quarter of constraints. The decrease due to the Fiscal 2023 foreign exchange rate decline of 7.1% was more than offset by net sellin
Slide 8: Strong Financial Position
STRONG FINANCIAL POSITION (1) OPERATING CASH FLOW TOTAL LONG-TERM DEBT ($ millions) ABL Other ($ millions) $85.0 $73.7 TLB Total Long- $298.1 Unsecured Notes Term Debt $256.3 $1,139.7 $500.0 $1,798.4 $185.3 $91.3 2QFY22 FY22 YTD 2QFY23 FY23 YTD Capital Expenditures $74.6 $117.8 $45.1 $101.0 (2) (2)
Slide 9: Capital Management
CAPITAL MANAGEMENT PRIORITIES AND FISCAL YEAR 2023 ACTIONS Invest in THOR’s business ▪ Capex spending of $101.0 million YTD Pay THOR's dividend ▪ Increased regular quarterly dividend to $0.45 in October 2022 ▪ Represents 13th consecutive year of dividend increases Reduce the Company's debt obligatio
Slide 10: Key Assumptions
FULL-YEAR FISCAL KEY ASSUMPTIONS 2023 GUIDANCE ▪ Full-year guidance was revised to reflect market softness experienced in our second quarter and our expectation that macroeconomic pressures will persist through the balance of $10.5 – $11.5B our fiscal year NET SALES (previously $11.5 - $12.5B) ▪ 2HF
Slide 11: Key Takeaways
KEY TAKEAWAYS THOR delivered a financially resilient 2Q23 performance in a challenging market environment, generating positive results and net cash flow from operations Variable cost model and proactive, disciplined production approach positions our operating companies and independent dealer partner
Slide 12: Appendix
Go Everywhere. Stay Anywhere” 12
Slide 13: THOR Overview: Who We Are
THOR OVERVIEW The Global RV Industry Leader WHO WE ARE • Experienced growth- oriented team FOUNDED IN ~32,000 >400 ~3,500 1980 EMPLOYEES (1) FACILITIES WORLDWIDE (1) INDEPENDENT DEALERSHIP LOCATIONS (1) • Leading brands • Cash generation focus $16.3B FY22 NET SALES • Customer-centric NET SALES BY SE
Slide 14: THOR's Product Leadership
THOR’S PRODUCT LEADERSHIP NORTH AMERICAN EUROPEAN Travel Trailers Fifth Wheels Class A Class C Class B All RV Segments CATEGORY 20.4% MARKET 41.7% 37.7% 43.0% (1) SHARE 54.2% 52.3% MARKET POSITION (1) #1 #1 #1 #1 #1 #2 (1) As of calendar YTD December 31, 2022. Data reported by Statistical Surveys, I
Slide 15: RV Industry Overview: North America
RV INDUSTRY OVERVIEW North America RV WHOLESALE MARKET TRENDS (UNITS 000's) YTD Shipments (Units) Dec. 2022 Dec. 2021 Unit Change % Change 493,268 600,240 (106,972) (17.8)% 600.2 504.6 483.7 493.3 430.7 406.1 430.4 370.0 384.5 390.4 356.7 374.2 321.2 320.9 353.5 321.1 334.1 292.7 300.1 311.0 285.7 2
Slide 16: RV Industry Overview: Europe
RV INDUSTRY OVERVIEW Europe (1) EUROPEAN INDUSTRY UNIT REGISTRATIONS BY COUNTRY Caravans Motorcaravans Total Country CYTD December 31, % CYTD December 31, % CYTD December 31, % 2022 2021 Change 2022 2021 Change 2022 2021 Change Germany 24,478 24,718 (1.0)% 66,507 81,420 (18.3)% 90,985 106,138 (14.3)
Slide 17: Consumer Trends Support Long-Term RV Industry Growth
CONSUMER TRENDS SUPPORT LONG-TERM RV INDUSTRY GROWTH Supported by Real Data from RVers increase in RV Interest in the RV lifestyle ~47% dealer website continues to exceed pre- traffic when comparing 2QFY23 pandemic levels to 2QFY19 (1) of current towable RV utilization remains ~80% owners report the
Slide 18: Quarterly Adjusted EBITDA Reconciliation
QUARTERLY ADJUSTED EBITDA RECONCILIATION ($ in thousands) TTM Fiscal Quarters 2QFY22 3QFY22 4QFY22 1QFY23 2QFY23 TTM Net Income $ 265,635 $ 346,018 $ 281,787 $ 137,423 $ 25,806 $ 791,034 Add Back: Interest Expense, Net 24,507 22,289 22,576 22,807 25,633 93,305 Income Taxes 80,618 116,389 56,575 41,8
Slide 19: Investor Relations Contact
INVESTOR RELATIONS CONTACT Michael Cieslak, CFA mcieslak@thorindustries.com (574) 294-7724 www.thorindustries.com