SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 or 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
FOR QUARTER ENDED October 31, 1995 COMMISSION FILE NUMBER 1-9235
THOR INDUSTRIES, INC.
- ---------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 93-0768752
------------------------------- --------------------
(State of other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
419 West Pike Street, Jackson Center, OH 45334
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (513) 596-6849
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Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period
that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days.
Yes X No
------------ ------------
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
Class Outstanding at 10/31/95
----- -----------------------
Common stock, par value 8,896,008 shares
$.10 per share
<PAGE>
THOR INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
ASSETS
(Unaudited)
-----------
October 31, 1995 July 31, 1995
---------------- -------------
Current assets:
Cash and short term investments....$5,675,073 $6,820,796
Accounts receivable:
Trade......................47,417,323 37,447,506
Other........................ 271,110 500,388
Inventories....................... 55,716,920 56,113,536
Prepaid expenses....................5,104,136 3,632,568
----------- -----------
Total current assets......114,184,562 104,514,794
Property: ----------- -----------
Land............................... 1,031,317 1,030,524
Buildings and improvements........ 10,038,377 9,833,498
Machinery and equipment........... 14,016,733 13,601,025
----------- -----------
Total cost.................25,086,427 24,465,047
Accumulated depreciation and
amortization...10,145,077 9,619,796
----------- -----------
Property, net............. 14,941,350 14,845,251
----------- -----------
Other assets:
Goodwill...........................15,648,915 15,812,885
Non compete.........................5,635,136 5,875,860
Trademarks..........................3,102,839 3,184,174
Other...............................3,918,932 4,227,937
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Total other assets.........28,305,822 29,100,856
----------- -----------
TOTAL ASSETS.............................$157,431,734 $148,460,901
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Notes payable......................$6,400,000 $ ---
Accounts payable...................19,700,716 18,443,654
Accrued liabilities:
Taxes.......................2,251,394 ---
Compensation and
related items...............6,273,093 10,711,604
Product warranties..........6,300,735 5,956,520
Other.......................3,628,661 4,251,782
----------- -----------
Total current liabilities...44,554,599 39,363,560
----------- -----------
Other liabilities.............................932,657 1,194,032
Stockholders' equity:
Common stock - authorized 10,000,000
shares; issued 9,099,247 shares @
10/31/95 and 9,099,247 shares @
7/31/95; par value of
$.10 per share........................909,925 909,925
Additional paid in capital.........25,105,120 25,105,120
Foreign currency translation.........(613,096) (772,606)
Retained earnings..................88,730,397 84,585,329
Cost of treasury shares
203,239 shares @ 10/31/95;
188,239 shares @ 7/31/95...........(2,187,868) (1,924,459)
----------- -----------
Total stockholders' equity 111,944,478 107,903,309
----------- -----------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY.........$157,431,734 $148,460,901
=========== ===========
See notes to consolidated financial statements
<PAGE>
THOR INDUSTRIES, INC. AND SUBSIDIARIES
STATEMENTS OF CONSOLIDATED INCOME
FOR THE THREE MONTHS ENDED OCTOBER 31, 1995 AND 1994
----------------------------------------------------
(UNAUDITED)
THREE MONTHS ENDED OCTOBER 31
-----------------------------
1995 1994
---- ----
Net sales $151,519,204 $139,169,855
Cost of products sold 134,883,918 119,734,227
----------- -----------
Gross profit 16,635,286 19,435,628
Selling, general, and
administrative expenses 9,207,441 10,002,149
--------- ----------
Operating income 7,427,845 9,433,479
Interest income 241,726 165,931
Interest expense (86,640) (28,096)
Other expense (114,023) (122,997)
--------- ----------
Income before income taxes 7,468,908 9,448,317
Provision for income taxes 3,056,660 3,664,845
---------- ----------
Net income $4,412,248 $5,783,472
========== ==========
Average common shares outstanding 8,903,725 8,933,247
---------- ----------
Earnings per common share $.50 $.65
==== ====
Dividends paid per common share $.03 $.03
==== ====
See notes to consolidated financial statements
<PAGE>
THOR INDUSTRIES, INC. AND SUBSIDIARIES
STATEMENTS OF CONSOLIDATED CASH FLOWS
FOR THE THREE MONTHS ENDED OCTOBER 31, 1995 AND 1994
----------------------------------------------------
(Unaudited)
-----------
1995 1994
---- ----
Cash flows from operating activities:
Net income..................................$4,412,248 $5,783,472
Adjustments to reconcile net
income to net cash used in operating activities:
Depreciation...................................562,849 466,848
Amortization...................................716,375 670,320
Changes in non cash assets and liabilities
- ------------------------------------------
Accounts receivable.........................(9,740,539) 7,150,544
Inventories....................................396,616 (10,014.794)
Prepaid expenses and other..................(1,392,909) (267,072)
Accounts payable.............................1,257.062 (7,373,531)
Accrued liabilities.........................(2,727,398) (3,165,590)
----------- -----------
Net cash used in operating activities.......(6,515,696) (6,749,803)
- -------------------------------------
Cash flows from investing activities:
Purchase of property, plant & equipment.......(658,948) (616,978)
Disposals of property, plant & equipment...... --- 39,062
---------- ---------
Net cash used in investing activities.........(658,948) (577,916)
Cash flows from financing activities:
Cash dividends................................(267,180) (267,795)
Proceeds from notes payable..................6,400,000 1,380,000
Purchase of treasury stock....................(263,409) (602,633)
Net cash provided by financing activities....5,869,411 509.572
- ----------------------------------------- --------- ---------
Effect of exchange rate changes on cash........159,510 182,567
-------- ---------
Net decrease in cash and equivalents........(1,145,723) (6,635,580)
Cash and equivalents, beginning of year......6,820,796 13,563,673
--------- ----------
Cash and equivalents, end of period.........$5,675,073 $6,928,093
========== ==========
Supplemental cash flow information:
Income taxes paid...............................26,000 $588,434
Interest paid...................................86,640 28,096
See notes to consolidated financial statements
<PAGE>
MANAGEMENT DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
---------------------
Quarter Ended October 31, 1995 vs.
Quarter Ended October 31, 1994
- --------------------------------------
Net sales for the first quarter totaled $151,519,204, up 8.9% from $139,169,855
in the same period last year. Income before income taxes was $7,468,908
compared to $9,448,317 in the same period last year. This decline was
primarily due to very competitive pricing in a soft recreational vehicle
market.
Recreational vehicle revenues of $124,833,168 were 6.7% higher than last year
and were 82.4% of total company revenues compared to 84.1% last year. Bus
revenues of $26,686,036 were 20.3% higher than last year and were 17.6% of
total company revenues compared to 15.9% last year.
Manufacturing gross profit decreased to 11.0% of sales from 14.0% last year.
This decrease in gross profit was due primarily to very competitive pricing
in a soft recreational vehicle market.
Operating income totaled $7,427,845 down 21.3% from $9,433,479 in the same
period last year. Selling and administrative expenses decreased to
$9,207,441, 6.1% of sales, from $10,002,149, 7.2% of sales.
Interest income increased by $75,795 and interest expense increased by
$58,544. This increase interest expense was due primarily to higher than
normal chassis inventory.
The combined income tax rate was 40.9% compared to 38.8% last year. Last
year's rates reflect favorable utilization of foreign tax credits.
Financial Condition and Liquidity
- ---------------------------------
As of October 31, 1995, Thor had $5,675,073 in cash and cash equivalents,
compared to $6,820,796 on July 31, 1995.
Working capital at October 31, 1995 was $69,629,963 compared to $65,151,234 at
July 31, 1995. Inventory valued at current cost at October 31, 1995 exceeded
the LIFO inventory by $2,549,597.
The Company currently has a $25,000,000 revolving line of credit with Harris
Trust and Savings Bank and Bank One. The amount borrowed under this line as
of October 31, 1995 was $6,400,000. The loan agreement contains certain
covenants, including restrictions on additional indebtedness, and the Company
must maintain certain financial ratios. The line of credit bears interest at
negotiated rates below prime and expires on November 29, 1996. The Company
had no long term debt as of October 31, 1995. Amortization of intangibles
increased from $670,320 at October 31, 1994, to $716,375 at October 31, 1995
due to acquistions in fiscal 1995.
On March 1, 1995, the Company purchased for cash certain assets and liabilities
of Skamper Corporation, and on March 27, 1995, the Company purchased for cash
certain assets of Lake Capital Corporation, doing business as Komfort
Trailers. The total cash price of both acquisitions was approximately
$5,124,000. The revenues and operating result of each entity is reflected in
the consolidated statements of income of Thor Industries from time of
acquisition forward.
The Company believes that internally generated funds and the revolving credit
agreement already in place will be sufficient to meet current operating needs
and anticipated capital requirements.
During the first quarter of fiscal 1996, Thor purchased 15,000 shares of its
common stock, increasing treasury stock by $263,409.
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
------------------------------------------
1. The accompanying consolidated financial statements, which are
unaudited, reflect all adjustments, consisting of only normal
recurring adjustments, which are, in the opinion of management,
necessary, to present fairly the consolidated operating results for
such unaudited periods.
2. Major classifications of inventories are:
(Unaudited)
October 31, 1995 July 31, 1995
---------------- -------------
Raw materials $39,840,763 $42,951,596
Work in process 10,298,369 10,761,474
Finished goods 8,127,385 4,761,063
----------- ----------
Total 58,266,517 58,474,133
Less excess of FIFO costs
over LIFO costs 2,549,597 2,360,597
---------- ----------
Total inventories $55,716,920 $56,113,536
========== ==========
PART II
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No Reports
<PAGE>
SIGNATURES
----------
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
THOR INDUSTRIES, INC.
(Registrant)
DECEMBER 14, 1995 WADE F. B. THOMPSON
DATE __________________ ______________________________________
Wade F. B. Thompson
Chairman of the Board, President
and Chief Executive Officer
DECEMBER 14, 1995 WALTLER L. BENNETT
DATE __________________ ______________________________________
Walter L. Bennett
Senior Vice President
Secretary (Chief Accounting Officer)
<PAGE>
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0
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<OTHER-EXPENSES> (114023)
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