Thor Industries(THO) - 2024 Q2 - Quarterly Report

North American RV Market Performance - THOR's North American RV backlog decreased by $1,092,226 (36.4%) to$ 1,908,889 as of January 31, 2024, compared to $3,001,115 as of January 31, 2023[83] - North American Towable unit shipments decreased by 167,563 units (38.5%) to 267,295 units in 2023 compared to 2022[84] - North American Motorized unit shipments decreased by 12,531 units (21.5%) to 45,879 units in 2023 compared to 2022[84] - RVIA forecasts 2024 North American wholesale unit shipments to increase by 11.8% to 350,100 units, with towable units projected at 301,800 and motorized units at 48,300[84] - North American retail unit registrations decreased by 69,421 units (15.5%) to 379,205 units in 2023 compared to 2022[85] European Recreational Vehicle Market Performance - European Recreational Vehicle net sales increased by$ 135,356 (20.9%) to $782,294 for the three months ended January 31, 2024, compared to the same period in 2023[138] - European Motorcaravan net sales increased by$ 157,031 (58.6%) to $424,813 for the three months ended January 31, 2024, compared to the same period in 2023[138] - European Campervan net sales increased by$ 17,588 (7.7%) to $244,724 for the three months ended January 31, 2024, compared to the same period in 2023[138] - European Caravan net sales decreased by$ 43,407 (45.9%) to $51,087 for the three months ended January 31, 2024, compared to the same period in 2023[138] - European Recreational Vehicle gross profit increased by$ 27,895 for the three months ended January 31, 2024, compared to the same period in 2023[143] Financial Risks and Hedging - A one-percentage-point increase in interest rates would result in an estimated $8,776 reduction in income before income taxes over a one-year period[200] - The company is exposed to market risk from changes in foreign currency exchange rates and interest rates, and uses hedging transactions to mitigate these risks[197] - The company's principal currency exposures mainly relate to the Euro and British Pound Sterling, and it uses foreign currency forward contracts to manage foreign exchange rate exposure[198] Legal and Contractual Matters - The company is involved in litigation arising from operations, including state "lemon laws," warranty claims, and vehicle accidents, with outcomes subject to significant uncertainty[207] - Amendment No. 3 to the Term Loan Credit Agreement was dated as of November 15, 2023, involving the company, certain subsidiaries, and JPMorgan Chase Bank, N.A.[212] - Amendment No. 3 to the ABL Credit Agreement was dated as of November 15, 2023, involving the company, certain domestic subsidiaries, and JPMorgan Chase Bank, N.A.[212] - Form of Employment Agreement between the company and Michele McDermott was dated January 29, 2024[212]