Thor Industries, Inc. · NYSE:THO
Thor Industries — Q4 FY2023 Earnings Presentation
21 slides from Thor Industries's earnings presentation, Sep 25, 2023
Slide 1: Fourth Quarter of Fiscal 2023 Financial Results
www.thorindustries.com FOURTH QUARTER OF FISCAL 2023 FINANCIAL RESULTS
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 27 A of the Securities Act of 1933 , as amended, and Section 21 E of the Securities Exchange
Slide 3: Fiscal Year 2023 Summary
FISCAL YEAR 2023 SUMMARY (1) Attributable to THOR Industries (2) As compared to fiscal year 2022 FISCAL 2023 HIGHLIGHTS ▪ Achieved solid full - year consolidated margin relative to broader market conditions ▪ European segment delivered strong financial performance ▪ Recalibrated channel inventory wi
Slide 4: Fourth Quarter Fiscal 2023 Highlights
FOURTH QUARTER FISCAL 2023 HIGHLIGHTS Net sales of $2.74 billion in 4Q23, down from a fiscal fourth quarter record of $3.82 billion in the prior - year period ▪ Prudently managed North American wholesale production levels as our operating companies fully transitioned to model year 2024 production in
Slide 5: Fourth Quarter Fiscal Year 2023 Results, Backlog and Dealer Inventory
$1,152.0 $5,741.3 $8,761.2 $5,548.6 $693.2 $2,763.7 $9,284.2 $2,571.0 $756.0 $458.8 $1,451.6 $4,014.7 $3,436.6 $1,242.9 $1,526.0 $3,559.1 $2,753.6 $3,549.7 NA Towables NA Motorized European (4) Includes Tiffin backlog subsequent to the December 2020 acquisition of the Tiffin Group 07/31/19 07/31/20
Slide 6: North American Towable Segment
($ in Millions) Fourth Quarter Fiscal 2023 Net Sales YOY Change Gross Profit YOY Change Gross Profit Margin YOY Change $930.7 million (48.2)% $110.8 million (59.4)% 11.9% (330) bps NORTH AMERICAN TOWABLE SEGMENT 6 Key Drivers ▪ Unit shipments decreased 44 . 7 % primarily due to a softening in curren
Slide 7: North American Motorized Segment
($ in Millions) Fourth Quarter Fiscal 2023 Net Sales YOY Change Gross Profit YOY Change Gross Profit Margin YOY Change $656.1 million (36.0)% $56.5 million (69.3)% 8.6% (940) bps NORTH AMERICAN MOTORIZED SEGMENT 7 Key Drivers ▪ Unit shipments decreased 29.4% due to softening consumer and dealer dema
Slide 8: European Segment
EUROPEAN SEGMENT Key Drivers ▪ Net sales increase driven by a 23.1% increase in the overall net price per unit due to the total combined impact of changes in foreign currency, product mix and price and a 3.2% increase in unit shipments ▪ Favorable foreign currency exchange impact of 5.7% on net sale
Slide 9: Strong Financial Position
9 NET DEBT / TTM EBITDA (3) 1.0x NET DEBT / TTM ADJUSTED EBITDA (3) 0.9x STRONG FINANCIAL POSITION ($ millions) $352.6 $990.1 $507.5 $981.6 4QFY23 FY23 YTD OPERATING CASH FLOW TOTAL LONG - TERM DEBT (1) ($ millions) LIQUIDITY (2) ($ millions) SELECTED FINANCIAL RATIOS (2) TLB $758.1 Senior Unsecured
Slide 10: Capital Management Priorities and Fiscal Year 2023 Actions
CAPITAL MANAGEMENT PRIORITIES AND FISCAL YEAR 2023 ACTIONS Invest in THOR’s business ▪ Capex spending of $208.2 million Pay THOR's dividend ▪ Increased regular quarterly dividend to $0.45 in October 2022 ▪ Represents 13 th consecutive year of dividend increases Reduce the Company's debt obligations
Slide 11: Investing in the Future: THOR Innovation
INVESTING IN THE FUTURE: THOR INNOVATION TECHNICAL INNOVATION FOCUS AREAS Electrification Lead the RV electrification transition with a full portfolio of solutions and strategic opportunities across product categories and the larger ecosystem Product Technology for a better Experience I mprove vehic
Slide 12: Full-Year Fiscal 2024 Guidance
FULL - YEAR FISCAL 2024 GUIDANCE OUTLOOK ASSUMPTIONS ▪ Modest year - over - year consolidated net sales decline driven by anticipated reductions in overall average selling prices and lower unit shipments of motorized products, partially offset by higher planned wholesale shipment volumes within the
Slide 13: Key Takeaways
KEY TAKEAWAYS Record quarterly financial performance in our European segment driven by continued efforts of our management team, favorable price - cost realization, operational efficiencies and further improvements in chassis supply Prudent and disciplined operating approach of our North American op
Slide 14: Appendix
APPENDIX 14
Slide 15: The Global RV Industry Leader: THOR Snapshot
The Global RV Industry Leader THOR SNAPSHOT (1) (1) As of July 31, 2023 Founded 1980 Headquarters Elkhart, Indiana Countries with Distribution 25+ Team Members 24,900 Countries with Manufacturing 6 Facilities Worldwide >400 Independent Dealership Locations 3,500 NET SALES BY SEGMENT (1) NET SALES BY
Slide 16: THOR's Product Leadership
THOR’S PRODUCT LEADERSHIP ( 1 ) As of calendar YTD June 30 , 2023 . Data reported by Statistical Surveys, Inc is based on official state and provincial records . This information is subject to adjustment, is continuously updated and is often impacted by delays in reporting by various states or provi
Slide 17: RV Wholesale Market Trends
120.8 121.1 156.5 176.5 201.3 194.3 192.2 199.5 229.1 249.7 239.1 207.6 250.6 258.9 298.3 323.0 334.5 298.1 208.6 152.4 217.1 227.6 257.6 282.8 312.8 326.9 442.0 426.1 376.0 359.4 389.6 544.0 434.9 316.8 249.3 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Slide 18: European Registrations by Country
% Change Total CYTD June 30, 2023 2022 % Change Motorcaravans CYTD June 30, 2023 2022 % Change Caravans CYTD June 30, 2023 2022 Country (1.6)% 55,202 54,299 1.3 % 40,985 41,500 (10.0)% 14,217 12,799 Germany (7.7)% 19,471 17,980 (7.9)% 14,914 13,733 (6.8)% 4,557 4,247 France (4.5)% 13,440 12,837 3.1
Slide 19: Consumer Trends Support Long-Term RV Industry Growth
19 Intention to RV is high within the next 12 months Consumer satisfaction among RV owners is very strong RV Owner future purchase intent is high Interest in the RV lifestyle continues to exceed pre - pandemic levels 38 % CONSUMER TRENDS SUPPORT LONG - TERM RV INDUSTRY GROWTH Supported by Real Data
Slide 20: Quarterly EBITDA Reconciliation
20 QUARTERLY EBITDA RECONCILIATION ($ in thousands) TTM Fiscal Quarters Property, Plant and Equipment TTM $ 374,240 4QFY23 $ 91,282 3QFY23 $ 119,729 2QFY23 $ 25,806 1QFY23 $ 137,423 4QFY22 $ 281,787 Net Income 97,447 22,645 26,362 25,633 22,807 22,576 Add Back: Interest Expense, Net 125,113 40,631 3
Slide 21: Investor Relations Contact
www.thorindustries.com INVESTOR RELATIONS CONTACT Michael Cieslak, CFA mcieslak@thorindustries.com (574) 294 - 7724