Thor Announces Results for Quarter, Six Months; Improving RV Market Conditions, Bus Efficiencies Drive Gains

JACKSON CENTER, Ohio, March 8 /PRNewswire-FirstCall/ -- Thor Industries, Inc. (NYSE: THO) today reported increased sales, net income and E.P.S. for the second quarter and six months ended January 31, 2010.  Net income for the second quarter was $11,924,000 versus a loss of $14,860,000 last year. E.P.S. were 22 cents versus a loss of 27 cents last year. Sales for the second quarter were $430.0 million, up 90% from $226.7 million last year. Net income for the six months was $35,353,000, compared to a loss of $9,740,000 last year.  E.P.S. for the six months were 65 cents versus a loss of 18 cents last year. Sales for the six months were $932.6 million, up 40% from $665.5 million last year.

RV income before tax in the quarter was $18,057,000 compared to a loss of $19,840,000 last year.  Bus income before tax in the quarter was $6,233,000, up 67% from $3,723,000 last year.  RV sales in the quarter were $335.8 million, up 150% from $134.6 million last year.  Bus sales in the quarter were $94.2 million, up 2% from $92.1 million last year. Net corporate costs in the quarter were $5.0 million vs. $6.8 million last year.

RV income before tax for the six months ended January 31, 2010 was $49,699,000 compared to a loss of $14,068,000 last year, a $64 million turnaround.  Bus income before tax for the six months was $14,613,000, up 62% from $9,020,000 last year.  RV sales for the six months ended January 31, 2010 were $725.7 million, up 56% from $465.0 million last year.  Bus sales for the six months ended January 31, 2010 were $206.9 million, up 3% from $200.5 million last year.  Net corporate costs for the six months ended January 31, 2010 were $7.8 million versus $9.7 million last year.  

"Thor's results continue to progress, propelled by improving RV market conditions and strong bus efficiencies.  We continue to be profitable in all segments of our businesses, including motor homes, reflecting the permanent cost reductions we have made," said Peter B. Orthwein, Thor chairman.

Thor is the world's largest manufacturer of recreation vehicles and a major builder of commercial buses.

This release includes certain statements that are “forward looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.  These forward looking statements involve uncertainties and risks.  There can be no assurance that actual results will not differ from our expectations.  Factors which could cause materially different results include, among others, additional issues that may arise in connection with the findings of the completed investigation by the Audit Committee of the Board of Directors of Thor Industries, Inc. (the "Company") and the SEC’s requests for additional information, fuel prices, fuel availability, lower consumer confidence, interest rate increases, tight lending practices, increased material costs, the success of new product introductions, the pace of acquisitions, cost structure improvements, the impact of auction market failures on our liquidity, competition and general economic conditions and the other risks and uncertainties discussed more fully in Item 1A of the Company's Annual Report on Form 10-K for the year ended July 31, 2009.  The Company disclaims any obligation or undertaking to disseminate any updates or revisions to any forward looking statements contained in this release or to reflect any change in the Company’s expectations after the date of this release or any change in events, conditions or circumstances on which any statement is based except as required by law.

    
    
                      THOR INDUSTRIES, INC.                 
        STATEMENT OF INCOME FOR THE 3 AND 6 MONTHS ENDED    
                    JANUARY 31, 2010 and 2009               
                $000 except per share - unaudited           
                                                            
                                3 MONTHS ENDED JANUARY 31,      
                             2010      %       2009        % 
                             ----    ----      ----      ----
    Net sales            $430,025          $226,683         
    ---------                                               
    Gross profit          $49,996  11.6%     $8,157     3.6%
    Selling, general                                        
     and administrative   $31,087   7.2%    $30,107    13.3%
    Amortization of                                         
     intangibles              $77   0.0%       $656     0.3%
    Operating income      $18,832   4.4%   $(22,606)  -10.0%
    Interest income (net)  $1,101   0.3%     $1,372     0.6%
    Gain on sale of                                         
     property                 $ -     0%       $373     0.2%
    Net impairment of                                       
     auction rate                                           
     securities               $ -     0%     $1,853     0.8%
    Other income            $(680) -0.2%      $(237)   -0.1%
                            -----             -----         
    Income before taxes   $19,253   4.5%   $(22,951)  -10.1%
    -------------------                                     
    Taxes                  $7,329   1.7%    $(8,091)   -3.6%
                           ------           -------         
    Net income            $11,924   2.8%   $(14,860)   -6.6%
    ----------            =======          ========         
       E.P.S. - basic          22 cents         (27) cents  
       E.P.S. - diluted        22 cents         (27) cents  
    -------------------                                     
    Avg. common shares                                      
     outstanding-basic 53,665,620        55,435,315         
    Avg. common shares                               
     outstanding-
     diluted           53,762,528        55,435,315         
                                                            
                                                            
                                                            
                                6 MONTHS ENDED JANUARY 31,    
                             2010      %       2009        %  
                             ----    ----      ----      ---- 
                                                            
    Net sales            $932,577          $665,500         
    ---------                                               
    Gross profit         $119,767  12.8%    $48,220     7.2%
    Selling, general                                        
     and administrative   $65,854   7.1%    $64,373     9.7%
    Amortization of                                         
     intangibles             $168   0.0%       $856     0.1%
    Operating income      $53,745   5.8%   $(17,009)   -2.6%
    Interest income (net)  $2,672   0.3%     $3,259     0.5%
    Gain on sale of                                         
     property                 $ -   0.0%       $373     0.1%
    Net impairment of                                       
     auction rate                                           
     securities               $ -   0.0%     $1,853     0.3%
    Other income              $89   0.0%       $529     0.1%
                              ---              ----         
    Income before taxes   $56,506   6.1%   $(14,701)   -2.2%
    -------------------                                    
    Taxes                 $21,153   2.3%    $(4,961)   -0.7%
                          -------           -------         
    Net income            $35,353   3.8%    $(9,740)   -1.5%
    ----------            =======           =======         
       E.P.S. - basic          65 cents         (18) cents  
       E.P.S. - diluted        65 cents         (18) cents  
    -------------------                                  
    Avg. common shares  
     outstanding-basic 54,551,272        55,421,946         
    Avg. common shares                  
     outstanding-                                           
     diluted           54,639,650        55,421,946         
    
    
    
             SUMMARY BALANCE SHEETS - JANUARY 31, ($000) (unaudited) 
      
                            2010     2009                   2010     2009
                            ----     ----                   ----     ----
      Cash and                             Current
       equivalents       $67,563 $191,099  liabilities  $208,864 $176,302
      Investments,                         Other
       short term         76,300        -  liabilities    63,866   47,018
      Accounts                             Stockholders'         
       receivable        147,345   54,642  equity        590,182  683,523
      Inventories        162,165  153,779        
      Deferred income 
       tax and other      43,415   50,572 
                          ------   ------ 
      Total current  
       assets            496,788  450,092 
      Fixed assets       141,806  147,162 
      Long term                           
       investments        12,983  118,961 
      Goodwill           148,411  158,128 
      Other assets        62,924   32,500 
                          ------   ------               -------- --------
      Total             $862,912 $906,843  Total        $862,912 $906,843
                        ======== ========               ======== ========
    
    

SOURCE Thor Industries, Inc.