SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
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QUARTERLY REPORT UNDER SECTION 13 or 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
FOR QUARTER ENDED April 30, 1995 COMMISSION FILE NUMBER 1-9235
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THOR INDUSTRIES, INC.
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(Exact name of registrant as specified in its charter)
Delaware 93-0768752
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(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
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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 4/30/95
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Common stock, par value 8,911,708 shares
$.10 per share
THOR INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
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<TABLE>
ASSETS
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<CAPTION>
(Unaudited)
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April 30, 1995 July 31, 1994
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<S> <C> <C>
Current assets:
Cash and cash equivalents $6,632,571 $13,563,673
Accounts receivable:
Trade 45,526,894 37,899,248
Other 539,815 783,628
Inventories 60,332,053 47,879,742
Prepaid expenses 2,732,218 1,922,821
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Total current assets 115,763,551 102,049,112
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Property:
Land 1,058,114 981,596
Buildings and improvements 9,183,055 7,500,360
Machinery and equipment 13,245,304 10,687,411
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Total cost 23,486,473 19,169,367
Accumulated depreciation and amortization 9,126,685 7,810,159
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Property, net 14,359,788 11,359,208
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Other assets:
Goodwill 15,972,201 15,855,565
Non compete 6,116,584 5,452,089
Trademarks 2,879,174 3,104,174
Other 4,525,152 4,625,676
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Total other assets 29,493,111 29,037,504
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TOTAL ASSETS $159,616,450 $142,445,824
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Notes payable $8,870,000 $ -
Accounts payable 25,530,366 25,196,395
Accrued liabilities:
Taxes - 1,854,428
Compensation and related items 9,558,647 11,777,688
Product warranties 4,583,760 4,004,992
Other 3,600,801 2,660,704
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Total current liabilities 52,143,574 45,494,207
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Other liabilities 1,178,632 1,028,632
Stockholders' equity:
Common stock - authorized 10,000,000 shares;
issued 9,099,247 shares @ 4/30/95 and 9,099,247
shares @ 7/31/94; par value of $.10 per share 909,925 909,925
Additional paid in capital 25,105,120 25,105,120
Foreign currency translation (609,889) (928,454)
Retained earnings 82,800,375 71,865,542
Cost of treasury shares 187,539 shares @ 4/30/95;
142,739 shares @ 7/31/94 (1,911,287) (1,029,148)
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Total stockholders' equity 106,294,244 95,922,985
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $159,616,450 $142,445,824
============ ============
</TABLE>
See notes to consolidated financial statements
THOR INDUSTRIES, INC. AND SUBSIDIARIES
STATEMENTS OF CONSOLIDATED INCOME
FOR THE THREE MONTHS AND NINE MONTHS ENDED APRIL 30, 1995 AND 1994
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<TABLE>
<CAPTION>
THREE MONTHS ENDED APRIL 30 NINE MONTHS ENDED APRIL 30
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1995 1994 1995 1994
---- ---- ---- ----
<S> <C> <C> <C> <C>
Net sales $163,081,543 $128,959,282 $416,621,025 $347,944,433
Cost of products sold 145,390,075 113,139,792 366,198,962 302,232,332
----------- ----------- ----------- -----------
Gross profit 17,691,468 15,819,490 50,422,063 45,712,101
Selling, general, and
administrative expenses 11,491,583 10,237,942 30,920,403 27,406,151
---------- ---------- ---------- ----------
Operating income 6,199,885 5,581,548 19,501,660 18,305,950
Interest income 199,900 69,069 494,592 263,263
Interest expense (117,350) (70,356) (249,579) (202,308)
Other income (expense) 7,323 (49,181) (399,182) (242,997)
----- -------- --------- ---------
Income before income taxes 6,289,758 5,531,080 19,347,491 18,123,908
Provision for income taxes 2,544,290 2,058,810 7,610,132 7,337,738
--------- --------- --------- ---------
Net income $3,745,468 $3,472,270 $11,737,359 $10,786,170
========== ========== =========== ===========
Average common shares outstanding 8,911,708 8,932,028 8,921,075 8,907,365
--------- --------- --------- ---------
Earnings per common share $.42 $.39 $1.32 $1.21
==== ==== ===== =====
Dividends paid per common share $.03 $.03 $.09 $.09
==== ==== ==== ====
</TABLE>
See notes to consolidated financial statements
THOR INDUSTRIES, INC. AND SUBSIDIARIES
STATEMENTS OF CONSOLIDATED CASH FLOWS
FOR THE NINE MONTHS ENDED APRIL 30, 1995 AND 1994
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(Unaudited)
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1995 1994
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Cash flows from operating activities:
Net income $11,737,359 $10,786,170
Adjustments to reconcile net income to net cash
used in operating activities:
Depreciation 1,469,633 1,337,518
Amortization 2,026,450 2,010,096
Changes in non cash assets and liabilities
Accounts receivable (5,607,293) (7,620,975)
Inventories (9,890,000) (3,574,848)
Prepaid expenses and other (1,321,151) (2,001,251)
Accounts payable (839,695) (592,272)
Accrued liabilities (2,800,423) (508,571)
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Net cash used in operating activities (5,225,120) (164,133)
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Cash flows from investing activities:
Purchase of property, plant & equipment (3,986,881) (2,946,075)
Disposals of property, plant & equipment 92,688 79,329
Acquisitions-net of cash acquired (5,123,698) -
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Net cash used in investing activities (9,017,891) (2,866,746)
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Cash flows from financing activities:
Cash dividends (802,526) (801,963)
Net proceeds from (payments of) notes payable 8,870,000 (54,000)
Purchase of treasury stock (882,139) -
Proceeds from issuance of common stock - 972,901
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Net cash provided by financing activities 7,185,335 116,938
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Effect of exchange rate changes on cash 126,574 (449,729)
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Net decrease in cash and equivalents (6,931,102) (3,363,670)
Cash and equivalents, beginning of year 13,563,673 10,615,450
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Cash and equivalents, end of period $6,632,571 $7,251,780
========== ==========
Supplemental cash flow information:
Income taxes paid $7,908,649 $6,887,966
Interest paid 249,579 202,308
See notes to consolidated financial statements
MANAGEMENT DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
---------------------
Quarter Ended April 30, 1995 vs.
Quarter Ended April 30, 1994
- ------------------------------
Net sales for the quarter totaled $163,081,543, up 26.5% from $128,959,282 in
the same period last year. Primarily as a result of higher sales, income before
income taxes rose 13.7% to $6,289,758 compared to $5,531,080 in the same period
last year.
Recreation vehicle revenues of $138,408,832 were 21.3% higher than last year and
were 84.9% of total company revenues compared to 88.5% last year. Bus product
revenues of $24,672,711 were 66.5% higher than last year and were 15.1% of total
company revenues compared to 11.5% last year.
Manufacturing gross profit decreased to 10.8% of sales from 12.3% last year.
This decrease in gross margin percentage was due primarily to increased material
cost and highly competitive product pricing.
Operating income totaled $6,199,885, up 11.1% from $5,581,548 in the same period
last year. Selling and administrative expenses decreased as a percentage of
sales from 7.9% to 7.0% due primarily to increased revenues.
Interest income increased by $130,831 and interest expense increased by $46,994
due to increased interest rates and increases in short term borrowings
respectively.
The combined income tax rate was 40.5% compared to 37.2% last year. Last
year's rates reflected recording of favorable tax exam settlements.
Nine Months Ended April 30, 1995 vs.
Nine Months Ended April 30, 1994
- ----------------------------------
Net sales for the nine months totaled $416,621,025, up 19.7% from $347,944,433
for the same period last year. Primarily as a result of higher sales, income
before income taxes rose 6.8% to $19,347,491 compared to $18,123,908 in the same
period last year.
Recreation vehicle revenues of $347,365,939 were 17.8% higher than last year and
were 83.4% of total company revenues compared to 84.7% last year. Bus product
revenues of $69,255,086 were 30.2% higher than last year and were 16.6% of total
company revenues compared to 15.3% last year.
Manufacturing gross profit decreased to 12.1% of sales from 13.1% last year.
This decrease in gross margin percentage was due primarily to increased material
cost and highly competitive product pricing.
Operating income totaled $19,501,660, up 6.5% from $18,305,950 in the same
period last year. Selling and administrative expenses decreased as a percentage
of sales from 7.9% to 7.4% due primarily to increased revenues.
Interest income increased by $231,329 and interest expense increased by $47,271
due to increased interest rates and increase in short-term borrowings
respectively.
The combined income tax rate was 39.3% compared to 40.5% last year. This
decrease is due primarily to favorable utilization of foreign tax credits.
MANAGEMENT DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
---------------------
(Continued)
Financial Condition and Liquidity
- ---------------------------------
As of April 30, 1995, Thor had $6,632,571 in cash and cash equivalents, compared
to $13,563,673 on July 31, 1994.
Working capital at April 30, 1995 was $63,619,977 compared to $56,554,905 at
July 31, 1994. Inventory valued at current cost at April 30, 1995 exceeded the
LIFO inventory by $1,840,852.
The Company currently has a $20,000,000 revolving line of credit with Harris
Trust and Savings Bank and Bank One. The amount borrowed under this line as of
April 30, 1995 was $8,870,000 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
at or below prime and expires on November 30, 1995. The Company had no long
term debt as of April 30, 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 revenues and income of each entity is reflected in the statements of
consolidated income and consolidated balance sheets 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. The Company does not anticipate
significant capital expenditures for fiscal 1995.
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)
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April 30, 1995 July 31, 1994
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Raw materials $42,842,300 $34,487,270
Work in process 9,832,885 11,008,602
Finished goods 9,497,720 3,976,722
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Total 62,172,905 49,472,594
Less excess of FIFO costs
over LIFO costs 1,840,852 1,592,852
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Total inventories $60,332,053 $47,879,742
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PART II
No Reports
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SIGNATURES
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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)
DATE 6/5/95 Wade F.B. Thompson
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Wade F. B. Thompson
Chairman of the Board, President
and Chief Executive Officer
DATE 6/5/95 Walter L. Bennett
------------------ --------------------------------------
Walter L. Bennett
Senior Vice President
Secretary (Chief Accounting Officer)
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<PERIOD-END> APR-30-1995
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