{"id":395031,"date":"2020-12-08T06:33:29","date_gmt":"2020-12-08T11:33:29","guid":{"rendered":"http:\/\/www.marketnewsdesk.com\/?p=395031"},"modified":"2020-12-08T06:33:29","modified_gmt":"2020-12-08T11:33:29","slug":"thor-reports-strong-growth-in-net-sales-gross-profit-margin-and-earnings-per-share-for-the-first-quarter-of-fiscal-2021","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/thor-reports-strong-growth-in-net-sales-gross-profit-margin-and-earnings-per-share-for-the-first-quarter-of-fiscal-2021\/","title":{"rendered":"Thor Reports Strong Growth In Net Sales, Gross Profit Margin, And Earnings Per Share For The First Quarter Of Fiscal 2021"},"content":{"rendered":"
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– Net sales for the first quarter were $2.54 billion, an increase of 17.5%. First-quarter results include $1.89 billion in North American RV net sales and $602.5 million in European RV net sales.<\/h2>\n

– Consolidated gross profit margin for the first quarter was 14.9%, a 60 basis point improvement over the prior-year period.<\/h2>\n

– Net income attributable to THOR for the first quarter increased 122.8% to $113.8 million, or $2.05 per diluted share.<\/h2>\n

– Consolidated RV backlog as of October 31, 2020 was $8.92 billion, an increase of 194.5% over October 31, 2019.<\/h2>\n

PR Newswire<\/p>\n<\/p><\/div>\n

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\n ELKHART, Ind.<\/span>, Dec. 8, 2020<\/span> \/PRNewswire\/ —\u00a0THOR Industries, Inc. (NYSE: THO) today announced strong growth for the first quarter of fiscal 2021 which ended October 31, 2020<\/span>.<\/p>\n

“We are pleased to report a solid start to our fiscal year with strong year-over-year growth across all of our major metrics, including net sales, gross margin and net income attributable to THOR. Our backlog continued to increase in the first quarter, setting a record, while dealer inventories continued to decline as many of our product shipments are going directly to fill existing end-customer orders. To address the increase in demand, we have increased production levels. Even with our higher production output and deliveries, demand and backlog for our RV products continue to grow,” said Bob Martin<\/span>, President and CEO of THOR Industries. <\/p>\n

“We are working hard to manage through temporary supply chain issues, which are currently common across the entire RV industry. We are confident that once these temporary supply chain constraints are mitigated, our shipments will increase further. We also believe it will take a number of months of production to first fill dealer presold orders before we will begin a restocking cycle to help our dealers get their inventory back to a more historically normal level,” added Martin.<\/p>\n

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\n First-Quarter Financial Results<\/u>
\n <\/b>\n <\/p>\n

First-quarter net sales were $2.54 billion<\/span>, compared to $2.16 billion<\/span> in the first quarter of fiscal 2020. This year’s first quarter net sales includes $1.39 billion<\/span> for the North American Towable RV segment, $493.9 million<\/span> for the North American Motorized RV segment and $602.5 million<\/span> for the European RV segment.<\/p>\n

Consolidated gross profit margin was 14.9% for the first quarter of fiscal 2021, compared to 14.3% in the corresponding period a year ago. The improved gross profit margin is primarily due to the increase in net sales, resulting in a reduction of the manufacturing overhead percentage, and favorable warranty experience trends, partially offset by higher labor costs due to the current competitive RV labor market conditions in Northern Indiana<\/span>.<\/p>\n

Net income attributable to THOR and diluted earnings per share for the first quarter of fiscal 2021 were $113.8 million<\/span> and $2.05<\/span>, respectively, compared to net income attributable to THOR and diluted earnings per share of $51.1 million<\/span> and $0.92<\/span>, respectively, in the prior-year period.<\/p>\n

The Company’s effective income tax rate for the first quarter of fiscal 2021 was 21.0% compared with 24.5% for the first quarter of fiscal 2020. The primary driver of the decrease in the effective tax rate between comparable periods was additional income tax expense in the three months ended October 31, 2019<\/span> from the vesting of share-based compensation awards. The Company estimates its effective income tax rate for fiscal 2021 will be between 19% and 22% before consideration of any discrete tax items. The actual effective income tax rate will be dependent upon the mix of foreign and domestic pretax earnings and subject to the impact of foreign currency exchange rates.<\/p>\n

Net cash used by operating activities for the first quarter of fiscal 2021 was $81.3 million<\/span> compared to a use of $52<\/span>.0\u00a0million in the first quarter of fiscal 2020. The Company’s cash flow is seasonal, and the net cash used by operating activities in the first quarter of fiscal 2021 increased compared to the prior-year period, reflecting an increase in inventory and accounts receivable in the current period, partially offset by an increase in accounts payable. During the fiscal first quarter of 2021, the Company made payments of $59.7 million<\/span> on its debt related to the acquisition of its European operations.<\/p>\n

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\n Segment Results<\/u>
\n <\/b>\n <\/p>\n

\n North American Towable RVs<\/b>\n <\/p>\n