Thor Completes Paying Off Revolving Credit Facility and Announces $250 Million Share Repurchase Authorization
June 20 2018 - 4:15PM
Business Wire
Thor Industries, Inc. (NYSE:THO) today announced that it has
paid in full the outstanding balance on its revolving credit
facility. This facility was initiated in association with the
funding of the June 2016 acquisition of Jayco. The $500 million
facility remains available for future borrowings by the Company
through the facility maturity date of June 30, 2021. The Company
further announced that its Board of Directors has authorized the
repurchase of up to $250 million of the Company’s common stock over
the next (2) years on the open market or in privately negotiated
transactions in accordance with applicable securities laws. The
repurchases, if made, will occur from time to time depending on
market conditions and other factors.
“The Jayco acquisition has been a great success, delivering
significant accretive value to our organization and shareholders,”
said Bob Martin, Thor President and CEO. “Our execution, combined
with strong earnings and cash flows following the acquisition,
allowed us to pay off the debt in just two years. Further, the RV
industry continues to benefit from solid economic fundamentals, as
well as favorable demographic trends and lifestyle changes that are
contributing to this growing marketplace. These positive factors
support our belief that new consumers will continue to embrace the
RV way of life and provide a pathway to continued long-term
growth.
“Given the elimination of our debt, our healthy balance sheet,
debt availability and historically strong cash flow, we now plan to
embark on the next phase of our capital allocation strategy. We
will remain primarily focused on driving organic growth in our
current businesses through investments in prudent capacity
additions, technology and product innovation. We also intend to
continue to seek and fund selective, opportunistic and accretive
global growth opportunities. Our investment criteria for growth
opportunities will generally be consistent with previous strategic
actions taken by the Company, including targeting acquisitions with
a strong marketplace position, successful operations and strong
management, which will be accretive to earnings and an overall
strategic fit with Thor Industries. In addition, we believe the
Company is well positioned to return value to shareholders through
both this new share repurchase program and dividends. Our capital
allocation strategy reflects our confidence in Thor’s current and
long-term prospects and further demonstrates our ongoing commitment
to enhancing shareholder value,” Martin concluded.
The newly announced share repurchase authorization does not
obligate the Company to repurchase any dollar amount or number of
shares of common stock. This authorization is in effect until June
19, 2020, and may be suspended or discontinued at any time.
About Thor Industries, Inc.
Thor is the sole owner of operating subsidiaries that, combined,
represent the world’s largest manufacturer of recreational
vehicles. For more information on the Company and its products,
please go to www.thorindustries.com.
Forward-Looking Statements
This release 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, and inherently involve uncertainties and risks.
These forward looking statements are not a guarantee of future
performance. We cannot assure you that actual results will not
differ from our expectations. Factors which could cause materially
different results include, among others, raw material and commodity
price fluctuations, raw material, commodity or chassis supply
restrictions, the level of warranty claims incurred, legislative,
regulatory and tax law and/or policy developments including their
potential impact on our dealers and their retail customers, or on
our suppliers, the costs of compliance with governmental
regulation, legal and compliance issues including those that may
arise in conjunction with recent transactions, lower consumer
confidence and the level of discretionary consumer spending,
interest rate fluctuations, the potential impact of interest rate
fluctuations on the general economy and specifically on our dealers
and consumers, restrictive lending practices, management changes,
the success of new and existing products and services, consumer
preferences, the pace of obtaining and producing at new production
facilities, the pace of acquisitions and the successful closing and
financial impact thereof, the potential loss of existing customers
of acquisitions, the integration of new acquisitions, our ability
to retain key management personnel of acquired companies, a
shortage of necessary personnel for production, the loss or
reduction of sales to key dealers, the availability of delivery
personnel, asset impairment charges, cost structure changes,
competition, the impact of potential losses under repurchase
agreements, the potential impact of the strength of the U.S. dollar
on international demand, general economic, market and political
conditions, changes to investment and capital allocation strategies
or other facets of our strategic plan, and other risks and
uncertainties including those discussed more fully in ITEM 1A of
our Annual Report on Form 10-K for the year ended July 31, 2017 and
Part II, Item 1A of our quarterly report on Form 10-Q for the
period ended April 30, 2018.
We disclaim any obligation or undertaking to disseminate any
updates or revisions to any forward looking statements contained in
this release or to reflect any change in our expectations after the
date of this release or any change in events, conditions or
circumstances on which any statement is based, except as required
by law.
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version on businesswire.com: https://www.businesswire.com/news/home/20180620006094/en/
Thor Industries, Inc.Bruce Byots, (574) 970-7912Senior Director
of Investor Relations
Thor Industries (NYSE:THO)
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