Thor Industries Inc (THO) has reported a 55.94 percent jump in profit for the quarter ended Oct. 31, 2016. The company has earned $78.74 million, or $1.49 a share in the quarter, compared with $50.50 million, or $0.96 a share for the same period last year.
Revenue during the quarter surged 65.82 percent to $1,708.53 million from $1,030.35 million in the previous year period. Gross margin for the quarter contracted 92 basis points over the previous year period to 13.86 percent. Total expenses were 93.20 percent of quarterly revenues, up from 92.46 percent for the same period last year. That has resulted in a contraction of 74 basis points in operating margin to 6.80 percent.
Operating income for the quarter was $116.23 million, compared with $77.73 million in the previous year period.
"Fiscal 2017 began like fiscal 2016 ended, with continued robust performance throughout the Company. The strong revenue and earnings growth reflects the ongoing enthusiastic reception of our product offerings by dealers and consumers alike, as well as our ability to effectively manage our growth and integrate acquisitions successfully," said Bob Martin, Thor president and chief executive officer. "Starting with our Dealer Open House in September, our new products have been incredibly well received, with strong year-over-year sales and backlog growth. With continued dealer optimism and steady economic conditions, we believe 2017 will be one of the strongest years for wholesale shipments for the industry since the 1970s."
Working capital declines
Thor Industries Inc has witnessed a decline in the working capital over the last year. It stood at $404.93 million as at Oct. 31, 2016, down 6.16 percent or $26.57 million from $431.50 million on Oct. 31, 2015. Current ratio was at 1.61 as on Oct. 31, 2016, down from 2.05 on Oct. 31, 2015.
Days sales outstanding went down to 20 days for the quarter compared with 27 days for the same period last year.
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