Since Thor Bought Jayco.....

[McGarrett50]

....Thor Stock Price is up about 33%.

And today THOR ANNOUNCES RECORD RESULTS FOR FOURTH QUARTER AND FISCAL 2016 earnings: Thor Industries, Inc. - Thor Announces Record Results for Fourth Quarter and Fiscal 2016

Jayco accounted for only 1 month of the quarter but contributed nearly $77 million in towable sales revenue and $27.6 million for motorized

A couple of interesting quotes from the press release:

"The increase in motorized RV sales was a result of continued strong growth in the more moderately priced gas Class A and Class C motorhomes, which are targeting new consumers entering the market, combined with the inclusion of one month of Jayco's motorized revenues"

The future impact of purchase accounting, including the amortization of intangibles for backlogs, dealer network and trademarks related to the Jayco acquisition, will have a more significant effect on future consolidated financial results as compared to the fourth quarter of fiscal 2016.

A couple of outlook quotes:

Continued strength in the RV market and an ongoing shift toward more moderately priced towable and motorized products, as well as a full year of revenues from Jayco, is expected to result in double-digit revenue growth in fiscal 2017.

The inclusion of lower gross-margin product sales from Jayco is expected to result in a dilution of gross margins in the coming year, though Jayco should contribute meaningful accretion to earnings per share for the full year.

[Camper_bob]

So, I have to wonder if "lower gross-margin products from Jayco" will be getting a price increase? Perhaps to bring the margin more in line with what THOR is accustomed to seeing? Or will they target the expense side of the equation? Or will they leave it alone and let the volume do the work?

[Atlee]

I would put my money on both a price increase and a reduction on the expense side.

Originally Posted by Camper_bob

So, I have to wonder if "lower gross-margin products from Jayco" will be getting a price increase? Perhaps to bring the margin more in line with what THOR is accustomed to seeing? Or will they target the expense side of the equation? Or will they leave it alone and let the volume do the work?

[SparkDr]

I've heard a lot of trepidation and Thor bashing with the Jayco acquisition, but I hesitate to agree with a lot of it. Thor has a history of acquisitions already and the theme seems to be...If you were good before Thor arrived, you'll be fine afterwards which should bode well for the Jayco brand. All we can do is wait and see which inevitable changes occur and how they affect the brand. Only time will tell.

[bansai]

Thor also owns airstream. Their 'portfolio' is so large, it's anyone's guess what they will do with the Jayco brand long term. I don't see a whole lot changing. They won't want to destroy what is obviously a profitable brand. RV sales are one of the most sensitive sectors when the economy goes through its normal down sides, gas prices increase, etc.. Jayco will remain in the 'affordable' catagory, or go under as a competing brand.