Thor Industries Inc. today announced results for its third quarter and nine months ended April 30. Highlights of financial results were as follows:
Consolidated sales for the third quarter of fiscal 2013 were $1.05 billion, up 13 percent from $926.5 million in the third quarter last year, based on strength in recreational vehicle sales.
Net income for the third quarter was $43.8 million, up 6 percent from $41.3 million in the prior-year third quarter. The overall effective tax rate for the third quarter of fiscal 2013 was 30.1 percent compared to 32.5 percent for the third quarter last year and was favorably impacted by the settlement of certain uncertain state tax benefits.
Diluted earnings per share for the third quarter was 82 cents, up 5 percent from 78 cents in the third quarter last year. Included in net income and EPS for the third quarter of fiscal 2013 were non-cash goodwill and intangible asset impairment charges of approximately $11.5 million. This included a $4.7 million intangible asset impairment charge triggered by the expected sale of the net assets associated with company’s ambulance product line and a $6.8 million goodwill impairment charge relating to the bus segment reporting unit which historically included the ambulance product line. These charges reduced EPS by $0.15 for the quarter. Excluding these items, EPS would have been 97 cents for the quarter.
Sales for the nine months ended April 30, were $2.67 billion, up 21 percent from $2.20 billion in the prior-year period.
Net income for the nine months ended April 30 was $94.6 million, up 22 percent compared to $77.4 million in the first nine months of fiscal 2012. The overall effective tax rate for the first nine months of fiscal 2013 was 30.3 percent compared to 34.1 percent for the first nine months of last year and was favorably impacted by the settlement of certain uncertain state tax benefits and the retroactive reinstatement of certain tax credits on Jan. 2.
EPS for the nine months ended April 30 was $1.78 versus $1.43 in the prior-year period. Excluding the non-cash goodwill and intangible asset impairment charges, EPS for the first nine months would have been $1.93.
“We are pleased with the continued growth in revenues and earnings we were able to achieve in the third quarter, as a number of the actions we’ve taken to improve our operations began to gain traction,” said Bob Martin, Thor president and chief operating officer. “While our markets remain competitive, we are now in the middle of the peak selling season for the RV industry, when demand improves and discounting tends to stabilize, leaving us in a strong position to finish out the year.”
Total RV sales were $929.8 million, up 15 percent from $807.2 million in the third quarter last year. RV segment income before tax was $77.6 million, up 31 percent from $59.2 million in the prior-year period. As a percent of revenues, total RV income before tax rose to 8.3 percent from 7.3 percent in the prior year supported by continued strong performance of towable RVs and continued momentum in motorized RVs.
Towable RV sales were $742.5 million, up 9 percent from $680.5 million in the prior-year period. Income before tax was $62.5 million, up 22 percent from $51.1 million in the third quarter last year. Towable RV income before tax increased to 8.4 percent of revenues from 7.5 percent a year ago, as a result of increased volumes and specific actions taken to improve operating efficiencies.
Motorized RV sales were $187.3 million, up 48 percent from $126.7 million in the prior-year third quarter. Income before tax was $15.1 million, up 86 percent from $8.1 million last year. As a percent of revenues, motorized RV income before tax rose to 8.1 percent of revenues from 6.4 percent a year ago, driven by improved product mix, volumes and enhanced operating efficiencies.
Bus segment sales were $119.4 million, up slightly from $119.3 million in the third quarter last year. Income before tax was a loss of $7.7 million, compared to income of $2.8 million in the third quarter last year. Bus segment income before tax was unfavorably impacted by the non-cash impairment charges relating to goodwill and intangible assets of approximately $11.5 million.
“Thor generated strong gains in both revenues and net income during the third quarter, based on continuing strength in our RV business and stability in our bus business,” said Peter B. Orthwein, Thor chairman and CEO. “Our results for the third quarter reflect the dealer optimism and improved retail consumer demand that has been building since the beginning of the year, which is now entering peak seasonal demand for our RV products. Based on the current positive momentum we see in our markets, we are confident in our ability to generate growth in sales and earnings for the remainder of the year.”
Source: Thor Industries Inc., Inside INdiana Business