Thor Industries, Inc. (THO) has reported a 41.59 percent jump in profit for the quarter ended Apr. 30, 2017. The company has earned $111.26 million, or $2.11 a share in the quarter, compared with $78.58 million, or $1.49 a share for the same period last year. Revenue during the quarter surged 56.94 percent to $2,015.22 million from $1,284.05 million in the previous year period. Gross margin for the quarter contracted 115 basis points over the previous year period to 14.58 percent. Total expenses were 91.69 percent of quarterly revenues, up from 91.02 percent for the same period last year. That has resulted in a contraction of 67 basis points in operating margin to 8.31 percent.
Operating income for the quarter was $167.50 million, compared with $115.32 million in the previous year period.
"We continue to see strength in the RV market, as dealers and consumers remain optimistic and the prospects for continued industry growth remain strong," said Bob Martin, Thor president and chief executive officer. "RVs provide exceptional value to consumers, allowing them to enjoy time with family and friends experiencing the many great outdoor spaces in North America at an affordable price point for the average family. Consumers continue to find new uses for RVs. From youth sports and tailgating, to festivals and concerts, they are able to enjoy their RVs over a longer season than many other recreation alternatives. All of these factors are driving the growing demand for our products. As an industry, and at Thor in particular, we continue to make strides in bringing new consumers into the RV lifestyle. This focus has driven an expansion in our customer base which has contributed to our strong top line growth and, while margins may be modestly suppressed on the more affordably priced units, to our bottom line as well. As we continue to focus on producing RVs that appeal to an ever broader base of consumers, we remain very optimistic for the long-term growth of Thor. Over time, we anticipate this short-term trend will translate into longer term demand for higher priced units as customers adopt the RV lifestyle and eventually trade up from entry-level units to mid-level and even high-end units."
Working capital declines
Thor Industries, Inc. has witnessed a decline in the working capital over the last year. It stood at $492.92 million as at Apr. 30, 2017, down 7.48 percent or $39.88 million from $532.80 million on Apr. 30, 2016. Current ratio was at 1.63 as on Apr. 30, 2017, down from 2.21 on Apr. 30, 2016. Days sales outstanding went down to 21 days for the quarter compared with 25 days for the same period last year.
Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
