Exhibit 99.1

Thor Announces Results for First Quarter of Fiscal 2019

  • Optimistic about long-term growth as consumer sentiment and spending remain strong
  • Acquisition of Erwin Hymer Group (EHG) is proceeding as planned, with expected closing near the end of the calendar year
  • Quarterly results significantly impacted by acquisition-related costs totaling $57.1 million, or $1.02 per share

ELKHART, Ind.--(BUSINESS WIRE)--December 6, 2018--Thor Industries, Inc. (NYSE:THO) today announced first- quarter results with net sales of $1.76 billion, down 21.3% from the record prior-year first quarter, and income before taxes of $31.5 million, a decrease of 83.2%. Net income and diluted earnings per share for the first quarter of fiscal 2019 were $14.0 million and $0.26, respectively. This compares to net income and diluted earnings per share in the prior-year first quarter of $128.4 million and $2.43, respectively.

First quarter fiscal 2019 financial results reflect the impact of continued progress in balancing production and market demand and transaction-related expenses related to the pending acquisition of EHG.

  • Balancing Production and Demand: The dealer inventory rationalization process is proceeding as expected. During the quarter, Thor increased its promotional efforts to assist dealers in reducing inventory to better reflect current retail demand levels. Thor continues to adjust production to match current wholesale demand while positioning the Company for long-term growth and shorter lead times with capacity expansions completed in fiscal 2018. Dealers have also remained disciplined with regard to inventory levels, which has resulted in the limited ability of manufacturers to pass along price increases.
  • Effects of Capacity Expansion: Following inventory constraints experienced in 2017, Thor strategically increased capacity in 2018 to alleviate the pressures of longer production lead times and meet expected long-term demand growth for the Company's products. Since the completion of a number of these expansion projects, dealers have taken steps to reduce their inventory, resulting in the Company taking steps to balance production levels with current wholesale demand. Thor continues to review backlog for each product line in each production facility and adjust production levels accordingly.
  • Foreign Currency Forward Contract: On September 18, 2018, the Company entered into a foreign currency forward contract in the amount of €1.625 billion related to the cash portion of the purchase price of EHG. The contract does not qualify as a hedging instrument for accounting purposes, and therefore changes in fair value are reported in current period earnings. As a result of the change in the U.S. dollar-Euro exchange rate from the date of the establishment of the contract and the end of the fiscal first quarter on October 31, 2018, the Company recorded a non-cash, mark-to-market loss on the forward contract of approximately $42.6 million. The forward contract is a prudent way to stabilize the EHG acquisition price by locking in the exchange rate and mitigating the impact of exchange rate volatility on the ultimate U.S. dollar amount Thor will pay for the acquisition.
  • Transaction Costs: Thor incurred $14.5 million in costs related to the pending acquisition of EHG, comprised primarily of legal, professional and advisory fees related to financial due diligence and preliminary implementation costs, rating agency fees and regulatory review costs.


The following information was filed by Thor Industries Inc (THO) on Thursday, December 6, 2018 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
×

Membership Level change

You have selected the Paid Monthly membership level.

Get unlimited access to our online tools for reading 10-Ks and 10-Qs more efficiently including:

  • Positive & negative highlights info
  • No advertisements info
  • Direct links to disclosures info
  • Wider reading area info
  • Email notifications info
  • Stock screener info

The price for membership is $0.00 now and then $10.00 per Month after your 3 day trial.


Account Information Already have an account? Log in here

LEAVE THIS BLANK

Select a Payment Plan No contracts, cancel anytime

Payment Information We Accept Visa, Mastercard, American Express and Discover

/
(what's this?)
Your privacy is important to us - We do not rent or sell your personal information to third parties.
By creating an account, you are agreeing to our Terms and Privacy Policy

Log in with your credentials

or    

Forgot your details?

Create Account