Thor Industries, Inc. (NYSE: THO) stock fell over 1.5% on 10th December, 2020 (As of 1:47 pm GMT-5; Source: Google finance) after the company posted lower than expected results for the first quarter of FY 21. The company reported Net income attributable to THOR for the first quarter of fiscal 2021 of $113.8 million compared to net income attributable to THOR of $51.1 million, in the prior-year period.
North American Towable RV backlog was $4.40 billion at October 31, 2020, which represents an increase of 312.1%, compared to $1.07 billion as of October 31, 2019. North American Motorized RV backlog was $2.22 billion at October 31, 2020, which represents an increase of 230.6%, compared to $670.0 million as of October 31, 2019. European RV backlog was $2.31 billion as of October 31, 2020, which represents an increase of $1.02 billion, or 78.7%, compared to $1.29 billion as of October 31, 2019. The company has strong liquidity of $337.4 million of cash and cash equivalents as of October 31, 2020, and approximately $720 million currently available for borrowing under the ABL. During the fiscal first quarter of 2021, the Company made payments of $59.7 million on its debt related to the acquisition of its European operations.
THO in the first quarter of FY 21 has reported the adjusted earnings per share of $2.05, beating the analysts’ estimates for the adjusted earnings per share of $1.46, according to Zacks Investment Research. The company had reported the adjusted revenue growth of 17.5 percent to $2.54 billion in the first quarter of FY 21, beating the analysts’ estimates for revenue of $2.38 billion. The first quarter net sales included $1.39 billion for the North American Towable RV segment, $493.9 million for the North American Motorized RV segment and $602.5 million for the European RV segment.
Moreover, North American Towable RV gross profit margin has expanded to 15.8% for the first quarter of fiscal 2021, compared to 15.3% in the prior-year period. The improvement in gross profit margin for the first quarter was mainly due to a reduction in sales discounts.
Consolidated gross profit margin has expanded to 14.9% for the first quarter of fiscal 2021, compared to 14.3% in the corresponding period a year ago. The expansion in gross profit margin is mainly due to the increase in net sales, as a result of a reduction of the manufacturing overhead percentage, and favorable warranty experience trends, partially offset by higher labor costs due to the current competitive RV labor market conditions in Northern Indiana.