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Page 1: First quarter 2014 investor presentation 2013 10-02

www.thorindustries.com

Page 2: First quarter 2014 investor presentation 2013 10-02

2

This presentation includes certain statements that are “forward looking” statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, 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 are made based on management’s current expectations and beliefs regarding future and anticipated developments and their effects upon Thor Industries, Inc., and inherently involve uncertainties and risks. These forward looking statements are not a guarantee of future performance. There can be no assurance that actual results will not differ from our expectations. Factors which could cause materially different results include, among others, price fluctuations, material or chassis supply restrictions, legislative and regulatory developments, the costs of compliance with increased governmental regulation, legal issues, the potential impact of increased tax burdens on our dealers and retail consumers, lower consumer confidence and the level of discretionary consumer spending, interest rate fluctuations, restrictive lending practices, recent management changes, the success of new product introductions, the pace of acquisitions, the impact of the divestiture of the Company's bus businesses, asset impairment charges, cost structure improvements, competition and general economic, market and political conditions and the other risks and uncertainties discussed more fully in ITEM 1A. of our Annual Report on Form 10-K for the year ended July 31, 2013 and Part II, Item 1A of our quarterly report on Form 10-Q for the period ended October 31, 2013. We disclaim any obligation or undertaking to disseminate any updates or revisions to any forward looking statements contained in this presentation or to reflect any change in our expectations after the date of this presentation or any change in events, conditions or circumstances on which any statement is based, except as required by law.

Forward Looking Statements

Page 3: First quarter 2014 investor presentation 2013 10-02

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The sole owner of operating subsidiaries that represent one of the world’s largest manufacturers of recreational vehicles

• Founded in 1980 by Wade Thompson & Peter Orthwein with the acquisition of Airstream, Inc.

• #1 in overall RV 34.5% of market*

• #2 in Travel Trailers 33.0% of market*

• #1 in Fifth Wheels 50.8% of market*

• #2 in Motorhomes 23.5% of market**

On July 31, 2013, Thor announced the sale of its bus business to Allied Specialty Vehicles for $100 million in cash. The sale was completed as of October 20, 2013, subject to final closing adjustments in accordance with the Stock Purchase Agreement.

Approximately 8,300 employees***

107 facilities in 4 US states***

6.5 million square feet under roof***

Who is THOR

Source: *Statistical Surveys, Inc., YTD U.S. and Canada units YTD September 2013 **Motorhomes

includes Class A, B and C *** as of July 31, 2013 (continuing operations)

Page 4: First quarter 2014 investor presentation 2013 10-02

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Towable Segment:

Travel Trailers

Towable Segment:

Fifth Wheels

Towable Segment:

Specialty Trailers

Motorized Segment:

Motor Homes

THOR’s Product Range

Towable RV's

$2,650,253 82%

Motorized RV's

$591,542 18%

FY2013 Sales*

*Fiscal year ended July 31, 2013,

continuing operations

($ in thousands)

Page 5: First quarter 2014 investor presentation 2013 10-02

5

THOR Subsidiaries

Page 6: First quarter 2014 investor presentation 2013 10-02

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Disciplined, Profitable Growth

• Profitable every year since 1980

• All time record $3.2 billion sales FY2013, up 23% from FY2012

• $2.6 billion sales in FY2012, up 13% from $2.3 billion sales in FY2011

• FY2013 net income from continuing operations of $151.7 million, up 36% from FY2012

• FY2013 EPS from continuing operations of $2.86, up 38% from $2.07 in FY2012, FY2013 EPS of $2.88, up 27% from $2.26 in FY2012

Sustainable Business Model

• Successfully weathered a severe downturn

• Increased capital investments position Thor for growth and margin improvement over the long term

Solid Balance Sheet

• Cash and cash equivalents of $295.0 million on October 31, 2013

• Operations historically generate significant cash

• Solid history of regular quarterly dividends, increased from $0.18 to $0.23 at the beginning of FY14

Why Invest in THOR

Page 7: First quarter 2014 investor presentation 2013 10-02

7

Proven business model:

• Entrepreneurial and decentralized

• No ivory tower: approximately 8,300 employees, only 40 in corporate staff*

• Decision-making driven by the customer

• Big, but nimble

• Best management team in the business, as proven by sustained performance

An innovator in each of its business segments

Significant RV market leadership:

• Best positioned in towable RVs, historically fastest growing area

• #2 in Motorhomes, poised for continued growth

• Well positioned as a leading innovator in the RV market to meet the demands of dealers and consumers

Strong balance sheet to support growth and shareholder returns

What Makes THOR Different

* as of July 31, 2013 (continuing operations)

Page 8: First quarter 2014 investor presentation 2013 10-02

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Focus on assembly - not heavy manufacturing• Limited vertical integration – only where it makes sense• Flexibility – performance in any market condition• Low overhead costs• High return on assets employed

Strong market share in all RV reportable segments• Provides scale and purchasing power• Low cost producer

Balance sheet supports acquisitions and organic growth

Meaningful, strategic capacity

Diversified lineup of innovative product offerings

Preferred partnership in retail/wholesale financing

Strength to pay warranty and honor repurchase agreements, important to dealers and consumers

THOR’s Competitive Advantages

Page 9: First quarter 2014 investor presentation 2013 10-02

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Currently a competitive environment, though improved from year ago

• Top three RV competitors account for 79.6% of industry units*

• “Flight to quality” – consumers, dealers, lenders all seek to do business with strong companies like Thor

Industry better balanced today

Pricing & promotional environment remains competitive, but improved over prior year

Consumer confidence has been softening as preliminary results fell to 72.0 in November 2013 from 73.2 in October and 82.7 a year ago as concerns over the government and weak job prospects weighed on lower-income consumers**

Wholesale and Retail lenders are prudent - applying “healthy discipline”

RV buyers seek the “power of choice” – want variety in brands and models

RV Industry Conditions

*Source: Statistical Surveys, Inc., U.S. and Canada YTD September 2013

** Source: University of Michigan Preliminary Consumer Sentiment Index for November 2013

Page 10: First quarter 2014 investor presentation 2013 10-02

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RV Market Wholesale Trends: Units (000’s)2

95

.8 33

9.6

44

1.1

41

3.9

38

9.9

19

9.2

10

6.9 13

3.6

14

0.6

19

6.6

21

5.7

18

6.9

18

9.9

211

.7

21

5.8

18

7.9

17

3.1

16

3.1 2

03

.4

22

7.8 25

9.5

24

7.2

24

7.5

25

4.5 2

92

.7 32

1.2

30

0.1

25

6.8

311

.0

32

0.8

37

0.1

38

4.4

39

0.5

35

3.5

23

7.0

16

5.6

24

2.3

25

2.3 28

5.8 31

9.3

33

4.3

197

4

197

5

197

6

197

7

197

8

197

9

198

0

198

1

198

2

198

3

198

4

198

5

198

6

198

7

198

8

198

9

199

0

199

1

199

2

199

3

199

4

199

5

199

6

199

7

199

8

199

9

200

0

200

1

200

2

200

3

200

4

200

5

200

6

200

7

200

8

200

9

201

0

201

1

201

2

201

3 (

e)

201

4 (

e)

Historical Data: Recreation Vehicle Industry Association, Calendar year 2013 and 2014:

RVIA estimate as of Fall 2013

Page 11: First quarter 2014 investor presentation 2013 10-02

11

RV Market Motorized Wholesale Trends: Units

(000’s)

68

.9

96

.6

15

6.1

16

0.2

15

7.2

64

.1

28

.5 35

.4 41

.2

69

.5

82

.0

68

.7

67

.7 73

.7

72

.8

61

.1

52

.3

41

.9 46

.9

51

.3 58

.2

52

.8

55

.3

55

.1 63

.5 71

.5

61

.0

49

.2 60

.4

62

.0 71

.7

61

.4

55

.8

55

.4

28

.4

13

.2 25

.2

24

.8

28

.2 37

.1

38

.7

197

4

197

5

197

6

197

7

197

8

197

9

198

0

198

1

198

2

198

3

198

4

198

5

198

6

198

7

198

8

198

9

199

0

199

1

199

2

199

3

199

4

199

5

199

6

199

7

199

8

199

9

200

0

200

1

200

2

200

3

200

4

200

5

200

6

200

7

200

8

200

9

201

0

201

1

201

2

201

3 (

e)

201

4 (

e)

Historical Data: Recreation Vehicle Industry Association, Calendar year 2013 and 2014:

RVIA estimate as of Fall 2013

Page 12: First quarter 2014 investor presentation 2013 10-02

12

RV Market Towable Wholesale Trends: Units

(000’s)

22

6.9

24

3.0

28

5.0

25

3.7

23

2.7

13

5.1

78

.4 98

.1

99

.4

12

7.1

13

3.7

11

8.1

12

2.1

13

7.9

14

2.9

12

6.7

12

0.8

12

1.1 1

56

.5

17

6.5 20

1.3

19

4.3

19

2.2

19

9.5 2

29

.1 24

9.6

23

9.1

20

7.6

25

0.6

25

8.9

29

8.3 32

3.0

33

4.5

29

8.1

20

8.6

15

2.4

21

7.1

22

7.4 2

57

.6 28

2.2

29

5.6

197

4

197

5

197

6

197

7

197

8

197

9

198

0

198

1

198

2

198

3

198

4

198

5

198

6

198

7

198

8

198

9

199

0

199

1

199

2

199

3

199

4

199

5

199

6

199

7

199

8

199

9

200

0

200

1

200

2

200

3

200

4

200

5

200

6

200

7

200

8

200

9

201

0

201

1

201

2

201

3 (

e)

201

4 (

e)

Historical Data: Recreation Vehicle Industry Association, Calendar year 2013 and 2014:

RVIA estimate as of Fall 2013

Page 13: First quarter 2014 investor presentation 2013 10-02

13

Dealers

• Continued optimism

• Right-sized towable inventory

• Lean motorized inventory

• Access to wholesale credit

• Financial health

RV: State of Balance

RV 2013 2012 % change

Towables $420 $370 +14%

Motorized $313 $147 +114%

TOTAL $733 $517 +42%

Backlog: October 31 ($ millions)

Consumers

• Better access to retail credit

• Low interest rates

• Great demographic trends

• Renewed focus on family vacations

• Will shorten trips to reduce fuel usage

Page 14: First quarter 2014 investor presentation 2013 10-02

14

THOR RV Dealer Inventory

Total Dealer inventory remains appropriate for current conditions,

towable inventory is stable, motorized inventory is somewhat light

Dealer inventory at October 31, 2013 up 4.9% compared with

October 31, 2012, in line with 5.1% RV sales growth in the fiscal first

quarter

Lenders still comfortable with current dealer inventory turns and

current credit line utilization, year-over-year turns have increased

resulting in reduction in average age of Thor units on dealers’ lots

2013 2012 % change

RV 53,716 51,206 +4.9%

Dealer Inventory: October 31 (units)

Page 15: First quarter 2014 investor presentation 2013 10-02

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Dealer inventories remain appropriate for consumer demand on towables, motorized inventory is relatively low

Retail demand has driven rebound in towables, rebound in motorized still in early stage

Wholesale & Retail units should be fairly balanced going forward

The RV Market Ahead

* Statistical Surveys, inc., includes US and Canada. 2010, 2011 & 2012 Full Year Actual, 2013 YTD through

September

** RVIA wholesale shipments for full years 2010, 2011 and 2012, 2013 YTD through September

Calendar Year

2010 2011 2012 2013 YTD

Industry Retail

Registrations*

226,776 units

(+10.6%)

246,180 units

(+8.6%)

262,803 units

(+6.8%)

254,896 units

(+13.9%)

Industry

Wholesale

Shipments**

242,300 units

(+46.2%)

252,407 units

(+4.1%)

285,749 units

(+13.2%)

248,623 units

(+12.4%)

Page 16: First quarter 2014 investor presentation 2013 10-02

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On October 31, 2013 Thor acquired the net assets of specialty trailer manufacturer Bison Coach based in Milford, Indiana for $16.7 million in cash, subject to post-closing adjustments

Bison’s products include an innovative line of equine trailers with Living Quarters (LQ), constructed of light-weight aluminum and aluminum over steel construction

Bison is a leader in equine LQ trailers, and they are one of only two competitors that construct their own living quarters, an area where Thor can leverage its RV expertise

Acquisition of Bison Coach

Page 17: First quarter 2014 investor presentation 2013 10-02

17

On August 30, 2013 Thor acquired the net assets of innovative RV manufacturer Livin’ Lite based in Wakarusa, Indiana for aggregate cash consideration of $16.8 million

Livin’ Lite’s products are complementary to existing product lines, with light-weight aluminum construction targeting a niche market within the overall Towable RV market

Livin’ Lite also provides an entry into two markets that Thor subsidiaries have not participated in – folding camping trailers and truck campers

Lightweight products are typically sold at a modest premium compared to traditional products, with opportunities for growth through licensing agreements with Jeep and others

Acquisition of Livin’ Lite

Page 18: First quarter 2014 investor presentation 2013 10-02

18

On September 17-19, 2013, Thor held its annual dealer open house in Elkhart, Indiana

Traffic was very strong with initial dealer attendance up more than 30% from 2012

Broad variety of new products introduced for the 2014 model year, including the new Vegas and Axis Class A motorhomes – built on a Ford E-series chassis that is available and ideal for a smaller motorhome (under 27 feet) at a lower total cost (approx. $70,000)

RV Open House

Page 19: First quarter 2014 investor presentation 2013 10-02

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Thor’s management team developed a three-year strategic plan focused on growth and margin improvement

The Strategic Plan was developed using a bottoms-up approach involving each of the Company’s operating subsidiaries and management teams

Key elements of growth include product innovation and capacity expansion – targeting mid- to high-single-digit growth

Key elements of margin expansion include improved product quality, value added content and features, and volume leverage – targeting 200 basis points of gross margin improvement over the planning horizon

RV Expansion

On June 3, 2013, Thor acquired the RV production facilities in Wakarusa, Indiana formerly operated by Navistar to expand motorized production to meet current demand and to vertically integrate RV paint operations

Nearly one million square feet of production space and 35 paint booths on 150 acres

Initial production line for Class A diesel and high-end gas began operations in mid-October with a second line planned for the second quarter of fiscal 2014

Three-Year Strategic Plan

Page 20: First quarter 2014 investor presentation 2013 10-02

20

On July 31, 2013 Thor announced an agreement to sell its bus business to Allied Specialty Vehicles for $100 million in cash, subject to closing adjustments. The sale was completed as of October 20, 2013, subject to final closing adjustments in accordance with the Stock Purchase Agreement

Thor’s bus business includes Champion Bus, Inc., General Coach America, Inc., Goshen Coach, Inc., El Dorado National California, Inc., and El Dorado National Kansas, Inc. which generated sales of $448 million for the fiscal year ended July 31, 2013

Divesting the bus business will allow Thor to focus on maintaining and growing the Company’s leadership position in the core RV business

Results of the Bus segment are presented as discontinued operations in Thor’s annual report filed on Form 10-K for the year ended July 31, 2013, quarterly report filed on Form 10-Q for the period ended October 31, 2013 and have been excluded from this presentation

Sale of the Bus Business

Page 21: First quarter 2014 investor presentation 2013 10-02

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Consolidated sales for the first quarter of fiscal 2014 were $800.0 million, up 5% from $761.4 million in the first quarter last year, based on strong growth in motorized recreational vehicle (RV) sales offsetting a small decrease in towable RV sales

Net income from continuing operations for the first quarter was $36.4 million, up 27% from $28.7 million in the prior-year first quarter. Diluted earnings per share (EPS) from continuing operations for the first quarter was $0.68, up 26% from $0.54 in the first quarter last year

Including discontinued operations from the Bus business, net income was $41.1 million, up 33% from $31.0 million in the first quarter of fiscal 2013. Diluted EPS including discontinued operations was $0.77, up 33% from $0.58 in the first quarter last year

Towable RV sales were $622.9 million, down 3% from $639.2 million in the prior-year period. Income before tax was $45.6 million, up 7% from $42.7 million in the first quarter last year. Towable RV income before tax increased to 7.3% of revenues from 6.7% a year ago, as a result of specific actions taken to improve operating efficiencies

Motorized RV sales were $177.1 million, up 45% from $122.2 million in the prior-year first quarter. Income before tax was $13.4 million, up 60% from $8.4 million last year. As a percent of revenues, motorized RV income before tax rose to 7.6% of revenues from 6.9% a year ago, driven by improved volumes and enhanced operating efficiencies

Increasing RV backlog, total backlog up 41.9% to $733.2 million. Towable backlog increased 13.5% to $419.8 million while motorized backlog more than doubled to $313.4 million

Comments on 1st Quarter 2014 Results

Page 22: First quarter 2014 investor presentation 2013 10-02

22

Profitable every year since inception

Successfully weathered a severe downturn

Increased capital investments position Thor for growth and margin improvement over the long term

#1 overall RV market share in North America*

Rock-solid balance sheet. Significant cash on hand and historic cash generation

Diversified and innovative products

Strong consumer, dealer and lender relationships

Experienced team

THOR - Key Takeaways

* Statistical Surveys, Inc., YTD U.S. and Canada units YTD September 2013

Page 23: First quarter 2014 investor presentation 2013 10-02

Appendix: Financial & Market Data

Page 24: First quarter 2014 investor presentation 2013 10-02

24

No golden parachutes

No ‘pro forma’ earnings. We report net income, not adjusted earnings to cover up performance

Consistent focus on shareholder value

Simple compensation philosophy:

• Mainly cash compensation, without a cap, based on pre-tax income – a true pay for performance philosophy

• Shift focus from stock options to restricted stock units

Corporate Integrity

Page 25: First quarter 2014 investor presentation 2013 10-02

25

THOR’s RV Competitive Advantage

Source: Statistical Surveys, Inc., U.S. and Canada YTD September 2013

* Thor includes Livin’ Lite and Bison Coach

** Forest River includes Palomino, Coachmen, Prime Time, Shasta and Dynamax

*** Fleetwood includes Monaco and Navistar RV

U.S. and Canada Retail Registrations (units)

Total Share % Total Share % Total Share % Total Share %

THOR* 87,846 34.5% 91,960 35.0% 85,636 34.8% 78,903 34.8%

Forest River** 85,251 33.4% 81,871 31.2% 74,035 30.1% 64,005 28.2%

Jayco 29,912 11.7% 30,913 11.8% 29,333 11.9% 25,785 11.4%

Winnebago 6,924 2.7% 7,053 2.7% 5,549 2.3% 5,808 2.6%

K-Z Inc. 6,775 2.7% 7,210 2.7% 6,778 2.8% 6,368 2.8%

Fleetwood*** 5,158 2.0% 5,839 2.2% 6,168 2.5% 6,913 3.0%

Subtotal 221,866 87.0% 224,846 85.6% 207,499 84.3% 187,782 82.8%

All Others 33,030 13.0% 37,957 14.4% 38,681 15.7% 38,994 17.2%

Grand Total 254,896 100.0% 262,803 100.0% 246,180 100.0% 226,776 100.0%

YTD 9/30/13 Y/E 12/31/12 Y/E 12/31/11 Y/E 12/31/10

Page 26: First quarter 2014 investor presentation 2013 10-02

26

Sales, continuing operations ($ millions)Fiscal years ended July 31, Year-to-Date through October 31

$1,115

$1,849

$2,340

$2,640

$3,242

$761 $800

2009 2010 2011 2012 2013 2013 YTD 2014 YTD

Page 27: First quarter 2014 investor presentation 2013 10-02

27

Net Income, continuing operations ($ millions)Fiscal years ended July 31, Year-to-Date through October 31

$2.5

$91.2 $91.6

$111.4

$151.7

$28.7 $36.4

2009 2010 2011 2012 2013 2013 YTD 2014 YTD

Page 28: First quarter 2014 investor presentation 2013 10-02

28

Diluted EPS, Continuing OperationsFiscal years ended July 31, Year-to-Date through October 31

$0.04

$1.72 $1.66

$2.07

$2.86

0.540.68

2009 2010 2011 2012 2013 2013 YTD 2014 YTD

Page 29: First quarter 2014 investor presentation 2013 10-02

29

1st Quarter Financial Summary

2014 2013 % Change

Net Sales 800.0 761.4 5.1%

Gross Profit 105.2 92.3 14.0%

% of Sales 13.1% 12.1%

SG&A 48.3 46.7 3.5%

% of Sales 6.0% 6.1%

Impairment charges 0.7 0.0 n/a

% of Sales 0.1% 0.0%

All Other 1.8 1.4

Income Before Tax 54.4 44.2 23.3%

% of Sales 6.8% 5.8%

Income Taxes 18.0 15.5

Net Income (cont. ops.) 36.4 28.7 26.8%

Diluted EPS (cont. ops.) 0.68$ 0.54$ 25.9%

Order Backlog

Towables 419.8 369.9 13.5%

Motorized 313.4 146.8 113.6%

Total 733.2 516.7 41.9%

*Amounts in millions except per share data

Net Sales by segment:

• Towables -2.6%, motorized +44.9%

Income before tax by segment:

• Towables 7.3%, up from 6.7%

• Actions to improve operating

efficiency

• Motorized 7.6%, up from 6.9%

• Volume leverage, improved

operating efficiency

• EPS from continuing operations of

$0.68 up from $0.54 in first quarter

of 2013

Page 30: First quarter 2014 investor presentation 2013 10-02

30

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

1Q

200

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2Q

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3Q

200

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4Q

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2Q

2007

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Quarterly Thor RV Unit Shipments

Page 31: First quarter 2014 investor presentation 2013 10-02

31

Thor RV Retail Market Share: Units

• Source: Statistical Surveys, U.S. and Canada measured at calendar year end, 2013 YTD as of September 30, 2013

26.9%

32.9%

36.9% 36.5% 36.6% 35.8%

14.8%16.1%

17.8%19.5% 20.1%

23.6%

2.6%

6.7%

12.4%14.4%

15.8%

21.2%

2008 2009 2010 2011 2012 2013 YTD

Towable Retail Share* Class A/C Retail Share* Class B Retail Share*

Page 32: First quarter 2014 investor presentation 2013 10-02

www.thorindustries.com


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