THOR Industries, Inc. (NYSE: THO) today announced record results for the fourth fiscal quarter and fiscal year ended July 31, 2021.
“We are pleased to report that in a year of unprecedented challenges, THOR posted record net sales and net income for the fourth fiscal quarter and the full fiscal year, making it the most profitable year in THOR’s history. For the fiscal year, we sold over 300,000 units, eclipsed $12 billion in net sales and generated net income attributable to THOR of $11.85 per diluted share, which far exceeds the former record for diluted earnings per share of $8.14 set in fiscal year 2018. These outstanding results are a testament to our team’s ability to successfully accelerate production over the course of the fiscal year to meet surging market demand while continuing to maintain quality, navigating continuing supply chain challenges, managing labor constraints and ensuring the safety of our workforce,” said Bob Martin, President and CEO of THOR Industries.
“Demand for our RV products remains very robust, continuing to exceed production output. This sustained level of strong demand has led to a continuation of historically low dealer inventory levels and resulted in a new record-high backlog value of $16.86 billion as of July 31, 2021,” said Martin.
Net sales were $3.59 billion in the fourth quarter of fiscal 2021, compared to $2.32 billion in the fourth quarter of fiscal 2020. This year’s fourth quarter net sales include $1.73 billion for the North American Towable RV segment, $823.1 million for the North American Motorized RV segment and $969.9 million for the European RV segment. Consolidated gross profit margin increased 170 basis points to 16.6% for the fourth quarter of fiscal 2021, compared to 14.9% in the corresponding period a year ago. The increase in the consolidated gross profit percentage was primarily due to the increase in sales and a reduction in sales discounts compared to the prior-year period.
Net income attributable to THOR Industries and diluted earnings per share for the fourth quarter of fiscal 2021 were $230.3 million and $4.12, respectively, compared to $119.2 million and $2.14, respectively, in the prior-year period.
Net sales for fiscal year 2021 were $12.32 billion compared to $8.17 billion for fiscal year 2020. The increase in consolidated net sales is due to both the increase in consumer demand and the negative impact of the onset of the COVID-19 pandemic in the prior year, which resulted in six to eight weeks of production shutdowns at most of our facilities. The addition of the Tiffin Group, acquired on December 18, 2020, accounted for $421.4 million of the $4.15 billion increase in net sales, or 5.2% of the 50.8% increase.
Net income attributable to THOR in fiscal year 2021 was $659.9 million, or $11.85 per diluted share, compared to net income attributable to THOR of $223.0 million, or $4.02 per diluted share, in fiscal year 2020.
The Company’s annual effective income tax rate for fiscal 2021 was 21.8% compared with 18.9% for fiscal 2020. The primary reason for the increase relates to the jurisdictional mix of foreign and domestic pretax income between the comparable periods. Based on existing tax regulations, the Company estimates its overall effective income tax rate for fiscal 2022 will be between 22% and 24% before consideration of any discrete tax items. The actual effective income tax rate will be dependent upon tax regulations and the Company’s mix of foreign and domestic pretax earnings.
Net cash provided by operating activities for fiscal 2021 was $526.5 million compared to $540.9 million in fiscal 2020. Net cash provided by operating activities for fiscal 2021 was impacted by higher working capital levels, primarily increased inventory levels for production needs to meet the increased consumer demand.
North American Towable RV backlog was $9.28 billion at July 31, 2021, as compared to $2.76 billion as of July 31, 2020.
The addition of the Tiffin Group, acquired on December 18, 2020, accounted for $373.0 million of the $1.28 billion increase in net sales, or 26.8% of the 92.0% increase for fiscal 2021.
North American Motorized RV backlog was $4.01 billion at July 31, 2021, compared to $1.45 billion as of July 31, 2020.
European RV backlog was $3.56 billion as of July 31, 2021, compared to $1.53 billion as of July 31, 2020.
About THOR Industries, Inc.
THOR Industries is the sole owner of operating subsidiaries that, combined, represent the world’s largest manufacturer of recreational vehicles.
For more information on the Company and its products, please go to www.thorindustries.com.