##### Table of Contents



SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-Q
 QUARTERLY REPORT UNDER SECTION 13 or 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
 FOR QUARTER ENDED October 31, 2006
    
    COMMISSION FILE NUMBER  1-9235
 THOR INDUSTRIES, INC.
  Delaware
    
    93-0768752(State or other jurisdiction of 
incorporation or organization)
    
    (I.R.S. Employer
Identification No.)419 West Pike Street, Jackson Center, OH
    
    45334-0629(Address of principal executive offices)
    
    (Zip Code)
 Registrants telephone number, including area code: 937) 596-6849
  þ o
  þ o o
  o þ
  Class
    
    Outstanding at 10/31/2006Common stock, par value
$.10 per share
    
    55,708,686 shares




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TABLE OF CONTENTS  PART I  Financial InformationITEM 1. Financial StatementsNOTES TO CONSOLIDATED FINANCIAL STATEMENTSITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSITEM 3. Quantitative and Qualitative Disclosures About Market RiskITEM 4. Controls and ProceduresPART II   Other InformationITEM 2. Unregistered Sales of Equity Securities and Use of ProceedsITEM 6. ExhibitsSIGNATURESEX-31.1EX-31.2EX-32.1EX-32.2    Table of Contents  
 PART I  Financial Information
 Unless otherwise indicated, all amounts presented in thousands of dollars except unit, share
and per share data.
 
 ITEM 1.
    
    Financial Statements
 THOR INDUSTRIES, INC. AND SUBSIDIARIES  CONSOLIDATED BALANCE SHEETS
 October 31, 2006
    
    
    July 31, 2006ASSETSCurrent assets:Cash and cash equivalents
    
    $
    95,963
    
    
    $
    196,136Investments  short term
    
    
    110,815
    
    
    
    68,237Accounts receivable:Trade
    
    
    159,951
    
    
    
    191,299Other
    
    
    6,060
    
    
    
    5,639Inventories
    
    
    215,155
    
    
    
    187,091Prepaid expenses
    
    
    17,259
    
    
    
    6,533Deferred income taxes
    
    
    12,311
    
    
    
    4,898Total current assets
    
    
    617,514
    
    
    
    659,833Property:Land
    
    
    21,309
    
    
    
    21,323Buildings and improvements
    
    
    132,346
    
    
    
    131,649Machinery and equipment
    
    
    58,470
    
    
    
    55,656Total cost
    
    
    212,125
    
    
    
    208,628Accumulated depreciation
    
    
    53,947
    
    
    
    51,163Property, net
    
    
    158,178
    
    
    
    157,465Investment in Joint ventures
    
    
    2,917
    
    
    
    2,737Other assets:Goodwill
    
    
    165,663
    
    
    
    165,663Non-compete agreements
    
    
    2,604
    
    
    
    2,841Trademarks
    
    
    13,900
    
    
    
    13,900Other
    
    
    10,310
    
    
    
    9,403Total other assets
    
    
    192,477
    
    
    
    191,807TOTAL ASSETS
    
    $
    971,086
    
    
    $
    1,011,842LIABILITIES AND STOCKHOLDERS EQUITYCurrent liabilities:Accounts payable
    
    $
    95,399
    
    
    $
    131,606Accrued liabilities:Taxes
    
    
    53,363
    
    
    
    26,574Compensation and related items
    
    
    31,290
    
    
    
    37,161Product warranties
    
    
    60,923
    
    
    
    59,795Promotions and rebates
    
    
    12,612
    
    
    
    12,953Product/property liability and related
    
    
    10,948
    
    
    
    10,423Other
    
    
    7,126
    
    
    
    7,315Total current liabilities
    
    
    271,661
    
    
    
    285,827Deferred income taxes and other liabilities
    
    
    13,862
    
    
    
    12,911Stockholders equity:Common stock  authorized 250,000,000 shares;
issued 57,150,286 shares @ 10/31/06 and 57,100,286
shares @ 7/31/06; par value of $.10 per share
    
    
    5,715
    
    
    
    5,710Additional paid-in capital
    
    
    87,538
    
    
    
    86,538Accumulated other comprehensive income
    
    
    1,874
    
    
    
    1,772Retained earnings
    
    
    650,559
    
    
    
    677,577Less Treasury shares of 1,441,600 @ 10/31/06 & 1,401,200 @ 7/31/06
    
    
    (60,123
    )
    
    
    (58,493
    )Total stockholders equity
    
    
    685,563
    
    
    
    713,104TOTAL LIABILITIES AND STOCKHOLDERS EQUITY
    
    $
    971,086
    
    
    $
    1,011,842
  2




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THOR INDUSTRIES, INC. AND SUBSIDIARIES
STATEMENTS OF CONSOLIDATED INCOME  FOR THE THREE MONTHS ENDED OCTOBER 31, 2006 AND 2005
 Three Months Ended October 312006
    
    
    2005Net sales
    
    $
    727,716
    
    
    $
    761,323Cost of products sold
    
    
    635,346
    
    
    
    649,681Gross profit
    
    
    92,370
    
    
    
    111,642Selling, general and
administrative expenses
    
    
    43,208
    
    
    
    44,099Amortization of intangibles
    
    
    237
    
    
    
    237Interest income
    
    
    2,910
    
    
    
    1,680Interest expense
    
    
    187
    
    
    
    347Other income
    
    
    550
    
    
    
    799Income before income taxes
    
    
    52,198
    
    
    
    69,438Provision for income taxes
    
    
    19,600
    
    
    
    26,073Net income
    
    $
    32,598
    
    
    $
    43,365Average common shares outstanding:Basic
    
    
    55,613,302
    
    
    
    56,568,392Diluted
    
    
    55,904,797
    
    
    
    56,916,818Earnings per common share:Basic
    
    $
    .59
    
    
    $
    .77Diluted
    
    $
    .58
    
    
    $
    .76Regular dividends declared per common share:
    
    $
    .07
    
    
    $
    .00Special dividends declared per common share:
    
    $
    1.00
    
    
    $
    .00Regular dividends paid per common share:
    
    $
    .07
    
    
    $
    .05Special dividends paid per common share:
    
    $
    1.00
    
    
    $
    .25
  3




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THOR INDUSTRIES, INC. AND SUBSIDIARIES
STATEMENTS OF CONSOLIDATED CASH FLOWS  FOR THE THREE MONTHS ENDED OCTOBER 31, 2006 AND 2005
 2006
    
    
    2005Cash flows from operating activities:Net income
    
    $
    32,598
    
    
    $
    43,365Adjustments to reconcile net income to net cash (used in)
provided by operating activities:Depreciation
    
    
    3,226
    
    
    
    2,781Amortization
    
    
    237
    
    
    
    237Deferred income taxes
    
    
    (7,700
    )
    
    
    Loss on disposition of assets
    
    
    103
    
    
    
    2Loss on disposition of trading investments
    
    
    104
    
    
    
    100Unrealized loss on trading investments
    
    
    
    
    
    
    116Stock based compensation
    
    
    160
    
    
    
    Changes in non cash assets and liabilities, net of effect
from acquisitions:Purchases of trading investments
    
    
    
    
    
    
    (64,387
    )Proceeds from disposition of trading investments
    
    
    68,133
    
    
    
    33,361Accounts receivable
    
    
    30,927
    
    
    
    (38,998
    )Inventories
    
    
    (28,064
    )
    
    
    (25,278
    )Prepaids and other
    
    
    (11,783
    )
    
    
    (9,911
    )Accounts payable
    
    
    (36,336
    )
    
    
    442Accrued liabilities
    
    
    22,041
    
    
    
    35,430Other liabilities
    
    
    943
    
    
    
    241Net cash provided (used in) by operating activities
    
    
    74,589
    
    
    
    (22,499
    )Cash flows from investing activities:Purchase of property, plant & equipment
    
    
    (4,076
    )
    
    
    (6,979
    )Proceeds from disposition of assets
    
    
    171
    
    
    
    20Purchases of available for sale investments
    
    
    (186,125
    )
    
    
    Proceeds from sale of available for sale investments
    
    
    75,567
    
    
    
    Net cash used in investing activities
    
    
    (114,463
    )
    
    
    (6,959
    )Cash flows from financing activities:Cash dividends
    
    
    (59,616
    )
    
    
    (17,000
    )Purchase of common stock held as treasury shares
    
    
    (1,630
    )
    
    
    Proceeds from issuance of common stock
    
    
    845
    
    
    
    43Net cash used in financing activities
    
    
    (60,401
    )
    
    
    (16,957
    )Effect of exchange rate changes on cash
    
    
    102
    
    
    
    411Net decrease in cash and equivalents
    
    
    (100,173
    )
    
    
    (46,004
    )Cash and equivalents, beginning of period
    
    
    196,136
    
    
    
    163,596Cash and equivalents, end of period
    
    $
    95,963
    
    
    $
    117,592Supplemental cash flow information:Income taxes paid
    
    $
    106
    
    
    $
    12Interest paid
    
    
    187
    
    
    
    347Non cash transactions:Capital expenditures in accounts payable
    
    $
    129
    
    
    $
    776
  4




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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 1.
    
    The July 31, 2006 amounts are from the annual audited financial statements. The interim
financial statements are unaudited. In the opinion of management, all adjustments (which
consist of normal recurring adjustments) necessary to present fairly the financial position,
results of operations and change in cash flows for the interim periods presented have been
made. These financial statements should be read in conjunction with the Companys Annual
Report on Form 10-K for the year ended July 31, 2006. The results of operations for the three
months ended October 31, 2006 are not necessarily indicative of the results for the full year.
 2.
    
    Major classifications of inventories are:
 October 31, 2006
    
    
    July 31, 2006Raw materials
    
    $
    103,364
    
    
    $
    104,352Chassis
    
    
    52,621
    
    
    
    39,772Work in process
    
    
    52,496
    
    
    
    51,208Finished goods
    
    
    29,519
    
    
    
    12,894Total
    
    
    238,000
    
    
    
    208,226Less excess of FIFO costs
over LIFO costs
    
    
    22,845
    
    
    
    21,135Total inventories
    
    $
    215,155
    
    
    $
    187,091
 3.
    
    Earnings Per Share
 Three Months
    
    Three MonthsEnded
    
    EndedOctober 31, 2006
    
    October 31, 2005Weighted average shares
outstanding for basic
earnings per share
    
    
    55,613,302
    
    
    
    56,568,392Stock options and
restricted stock
    
    
    291,495
    
    
    
    348,426Total  For diluted shares
    
    
    55,904,797
    
    
    
    56,916,818
 4.
    
    Comprehensive Income
 Three Months
    
    
    Three MonthsEnded
    
    
    EndedOctober 31, 2006
    
    
    October 31, 2005Net income
    
    $
    32,598
    
    
    $
    43,365Foreign currency
translation adjustment
    
    
    102
    
    
    
    411Comprehensive income
    
    $
    32,700
    
    
    $
    43,776
 5.
    
    Segment InformationThe Company has three reportable segments: 1.) towable recreation vehicles, 2.) motorized
recreation vehicles, and 3.) buses. The towable recreation vehicle segment consists of product
lines from the following operating companies that have been aggregated: Airstream,
Breckenridge, CrossRoads, Dutchmen, General Coach Hensall and Oliver, Keystone, Komfort and
Thor California. The motorized recreation vehicle segment consists of product lines from the
following operating companies that have been aggregated: Airstream, Damon, Four Winds and
Oliver. The bus segment consists of the following operating companies that have been
aggregated: Champion Bus, ElDorado California, ElDorado Kansas and Goshen Coach.
 5




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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
 Three Months
    
    
    Three MonthsEnded
    
    
    EndedOctober 31, 2006
    
    
    October 31, 2005Net Sales:Recreation vehicles:Towables
    
    $
    499,955
    
    
    $
    533,236Motorized
    
    
    135,923
    
    
    
    149,094Total recreation vehicles
    
    
    635,878
    
    
    
    682,330Buses
    
    
    91,838
    
    
    
    78,993Total
    
    $
    727,716
    
    
    $
    761,323
 Three Months
    
    
    Three MonthsEnded
    
    
    EndedOctober 31, 2006
    
    
    October 31, 2005Income Before Income Taxes:Recreation vehicles:Towables
    
    $
    43,602
    
    
    $
    61,424Motorized
    
    
    6,068
    
    
    
    8,366Total recreation vehicles
    
    
    49,670
    
    
    
    69,790Buses
    
    
    3,020
    
    
    
    1,994Corporate
    
    
    (492
    )
    
    
    (2,346
    )Total
    
    $
    52,198
    
    
    $
    69,438
 October 31, 2006
    
    
    July 31, 2006Identifiable Assets:Recreation vehicles:Towables
    
    $
    473,568
    
    
    $
    490,441Motorized
    
    
    150,782
    
    
    
    150,058Total recreation vehicles
    
    
    624,350
    
    
    
    640,499Buses
    
    
    113,919
    
    
    
    103,861Corporate
    
    
    232,817
    
    
    
    267,482Total
    
    $
    971,086
    
    
    $
    1,011,842
 6.
    
    Treasury SharesIn the first quarter of fiscal 2007 the Company purchased 40,400 shares and held them as
treasury stock at a cost of $1,630, an average cost of $40.33 per share.
 7.
    
    InvestmentsEffective August 1, 2006, the Company began classifying all short-term investment purchases as
available-for-sale. This change was based on the Companys decision to change its investment
strategy from one of generating profits on short term differences in price to one of preserving
capital.At October 31, 2006 all Investments  short term are comprised of auction rate securities that
are classified as available-for-sale and are reported at fair value in accordance with SFAS No.
115, Accounting for Certain Investments in Debt and Equity Securities. The Company purchases
its auction rate securities at par, which either mature or reset at par, and generally there
are no unrealized or realized gains or losses to report. Cost is determined on the specific
identification basis. Interest income is accrued as earned. All of the available-for-sale
securities held at October 31, 2006 mature within one year.As of July 31, 2006 the Company held short-term debt and equity investments classified as
trading securities. Sales and maturities of these investments during the three months ended
October 31, 2006 were recorded as trading securities activity. Realized and unrealized gains
and losses on trading securities are included in earnings. Dividend and interest income are
recognized when earned.
 6




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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
 8.
    
    Goodwill and Other Intangible AssetsThe components of other intangible assets are as follows:
 October 31, 2006
    
    July 31, 2006Accumulated
    
    
    
    
    
    AccumulatedCost
    
    Amortization
    
    Cost
    
    AmortizationAmortized Intangible Assets:Non-compete agreements
    
    $
    15,889
    
    
    $
    13,285
    
    
    $
    15,889
    
    
    $
    13,048
 Three Months
    
    Three MonthsEnded
    
    EndedOctober 31, 2006
    
    October 31, 2005Non-compete Agreements:Amortization Expense
    
    $
    237
    
    
    $
    237
 Non-compete agreements are amortized on a straight-line basis.Estimated Amortization Expense:
 For the year ending July 2007
    
    $
    887For the year ending July 2008
    
    $
    828For the year ending July 2009
    
    $
    492For the year ending July 2010
    
    $
    337For the year ending July 2011
    
    $
    239
 There was no change in the carrying amount of goodwill and trademarks for the three month
period ended October 31, 2006.As of October 31, 2006, Goodwill and Trademarks by segments totaled as follows:
 Goodwill
    
    
    TrademarksRecreation Vehicles:Towables
    
    $
    143,795
    
    
    $
    10,237Motorized
    
    
    17,252
    
    
    
    2,600Total Recreation Vehicles
    
    
    161,047
    
    
    
    12,837Bus
    
    
    4,616
    
    
    
    1,063Total
    
    $
    165,663
    
    
    $
    13,900
 9.
    
    WarrantyThor provides customers of our products with a warranty covering defects in material or
workmanship for periods generally ranging from one to two years, with longer warranties on
certain structural components. We record a liability based on our best estimate of the amounts
necessary to settle future and existing claims on products sold as of the balance sheet date.
Factors we use in estimating the warranty liability include a history of units sold, existing
dealer inventory, average cost incurred and a profile of the distribution of warranty
expenditures over the warranty period. A significant increase in dealer shop rates, the cost
of parts or the frequency of claims could have a material adverse impact on our operating
results for the period or periods in which such claims or additional costs materialize.
Management believes that the warranty reserve is adequate; however, actual claims incurred
could differ from estimates, requiring adjustments to the reserves. Warranty reserves are
reviewed and adjusted as necessary on a quarterly basis.
 7




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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
 Three Months
    
    
    Three MonthsEnded
    
    
    EndedOctober 31, 2006
    
    
    October 31, 2005Beginning Balance
    
    $
    59,795
    
    
    $
    55,118Provision
    
    
    17,951
    
    
    
    15,967Payments
    
    
    (16,823
    )
    
    
    (14,973
    )Ending Balance
    
    $
    60,923
    
    
    $
    56,112
 10.
    
    Commercial CommitmentsOur principal commercial commitments at October 31, 2006 are summarized in the following chart:
 Total
    
    Term ofCommitment
    
    Amount Committed
    
    GuaranteeGuarantee on dealer financing
    
    $
    2,521
    
    
    less than 1 yearStandby repurchase obligation
on dealer financing
    
    $
    846,754
    
    
    less than 1 year
 The Company records repurchase and guarantee reserves based on prior experience and known
current events. The combined repurchase and recourse reserve balances are approximately $1,772
and $1,563 as of October 31, 2006 and July 31, 2006, respectively.
 Three Months
    
    
    Three MonthsEnded
    
    
    EndedOctober 31, 2006
    
    
    October 31, 2005Cost of units repurchased
    
    $
    1,961
    
    
    $
    1,350Realization on units resold
    
    
    1,543
    
    
    
    1,272Losses due to repurchase
    
    $
    418
    
    
    $
    78
 
 ITEM 2.
    
    MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
 Unless otherwise indicated, all amounts presented in thousands of dollars except unit, share and
per share data.
 Executive Overview
   8




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MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(Continued)
    Trends and Business Outlook
    9




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MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)
 THREE MONTHS ENDED OCTOBER 31, 2006 VS. THREE MONTHS ENDED OCTOBER 31, 2005
 Three Months Ended
    
    
    Three Months Ended
    
    
    ChangeOctober 31, 2006
    
    
    October 31, 2005
    
    
    Amount
    
    
    %NET SALES:Recreation VehiclesTowables
    
    $
    499,955
    
    
    
    
    
    
    $
    533,236
    
    
    
    
    
    
    $
    (33,281
    )
    
    
    (6.2
    )Motorized
    
    
    135,923
    
    
    
    
    
    
    
    149,094
    
    
    
    
    
    
    
    (13,171
    )
    
    
    (8.8
    )Total Recreation Vehicles
    
    
    635,878
    
    
    
    
    
    
    
    682,330
    
    
    
    
    
    
    
    (46,452
    )
    
    
    (6.8
    )Buses
    
    
    91,838
    
    
    
    
    
    
    
    78,993
    
    
    
    
    
    
    
    12,845
    
    
    
    16.3Total
    
    $
    727,716
    
    
    
    
    
    
    $
    761,323
    
    
    
    
    
    
    $
    (33,607
    )
    
    
    (4.4
    )# OF UNITS:Recreation VehiclesTowables
    
    
    23,490
    
    
    
    
    
    
    
    27,518
    
    
    
    
    
    
    
    (4,028
    )
    
    
    (14.6
    )Motorized
    
    
    1,855
    
    
    
    
    
    
    
    2,019
    
    
    
    
    
    
    
    (164
    )
    
    
    (8.1
    )Total Recreation Vehicles
    
    
    25,345
    
    
    
    
    
    
    
    29,537
    
    
    
    
    
    
    
    (4,192
    )
    
    
    (14.2
    )Buses
    
    
    1,557
    
    
    
    
    
    
    
    1,468
    
    
    
    
    
    
    
    89
    
    
    
    6.1Total
    
    
    26,902
    
    
    
    
    
    
    
    31,005
    
    
    
    
    
    
    
    (4,103
    )
    
    
    (13.2
    )% of
    
    
    
    
    
    % ofSegment
    
    
    
    
    
    SegmentNet Sales
    
    
    
    
    
    Net SalesGROSS PROFIT:Recreation VehiclesTowables
    
    $
    73,024
    
    
    
    14.6
    
    
    $
    90,764
    
    
    
    17.0
    
    
    $
    (17,740
    )
    
    
    (19.5
    )Motorized
    
    
    12,639
    
    
    
    9.3
    
    
    
    15,301
    
    
    
    10.3
    
    
    
    (2,662
    )
    
    
    (17.4
    )Total Recreation Vehicles
    
    
    85,663
    
    
    
    13.5
    
    
    
    106,065
    
    
    
    15.5
    
    
    
    (20,402
    )
    
    
    (19.2
    )Buses
    
    
    6,707
    
    
    
    7.3
    
    
    
    5,577
    
    
    
    7.1
    
    
    
    1,130
    
    
    
    20.3Total
    
    $
    92,370
    
    
    
    12.7
    
    
    $
    111,642
    
    
    
    14.7
    
    
    $
    (19,272
    )
    
    
    (17.3
    )SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES:Recreation VehiclesTowables
    
    $
    29,429
    
    
    
    5.9
    
    
    $
    29,372
    
    
    
    5.5
    
    
    $
    57
    
    
    
    0.2Motorized
    
    
    6,556
    
    
    
    4.8
    
    
    
    6,933
    
    
    
    4.7
    
    
    
    (377
    )
    
    
    (5.4
    )Total Recreation Vehicles
    
    
    35,985
    
    
    
    5.7
    
    
    
    36,305
    
    
    
    5.3
    
    
    
    (320
    )
    
    
    (0.9
    )Buses
    
    
    3,493
    
    
    
    3.8
    
    
    
    3,463
    
    
    
    4.4
    
    
    
    30
    
    
    
    0.9Corporate
    
    
    3,967
    
    
    
    
    
    
    
    4,568
    
    
    
    
    
    
    
    (601
    )
    
    
    (13.2
    )Total
    
    $
    43,445
    
    
    
    6.0
    
    
    $
    44,336
    
    
    
    5.8
    
    
    $
    (891
    )
    
    
    (2.0
    )INCOME BEFORE INCOME TAXES:Recreation VehiclesTowables
    
    $
    43,602
    
    
    
    8.7
    
    
    $
    61,424
    
    
    
    11.5
    
    
    $
    (17,822
    )
    
    
    (29.0
    )Motorized
    
    
    6,068
    
    
    
    4.5
    
    
    
    8,366
    
    
    
    5.6
    
    
    
    (2,298
    )
    
    
    (27.5
    )Total Recreation Vehicles
    
    
    49,670
    
    
    
    7.8
    
    
    
    69,790
    
    
    
    10.2
    
    
    
    (20,120
    )
    
    
    (28.8
    )Buses
    
    
    3,020
    
    
    
    3.3
    
    
    
    1,994
    
    
    
    2.5
    
    
    
    1,026
    
    
    
    51.5Corporate
    
    
    (492
    )
    
    
    
    
    
    
    (2,346
    )
    
    
    
    
    
    
    1,854
    
    
    
    79.0Total
    
    $
    52,198
    
    
    
    7.2
    
    
    $
    69,438
    
    
    
    9.1
    
    
    $
    (17,240
    )
    
    
    (24.8
    )
 As of
    
    
    As of
    
    
    ChangeOctober 31, 2006
    
    
    October 31, 2005
    
    
    Amount
    
    
    %ORDER BACKLOGRecreation VehiclesTowables
    
    $
    120,627
    
    
    $
    252,301
    
    
    $
    (131,674
    )
    
    
    (52.2
    )Motorized
    
    
    67,799
    
    
    
    80,627
    
    
    
    (12,828
    )
    
    
    (15.9
    )Total Recreation Vehicles
    
    
    188,426
    
    
    
    332,928
    
    
    
    (144,502
    )
    
    
    (43.4
    )Buses
    
    
    217,864
    
    
    
    140,421
    
    
    
    77,443
    
    
    
    55.2Total
    
    $
    406,290
    
    
    $
    473,349
    
    
    $
    (67,059
    )
    
    
    (14.2
    )
 10




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MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)
 CONSOLIDATED  ($ in 000)
    Segment Reporting
 RECREATION VEHICLES
  Average PricePer Unit
    
    Units
    
    Net ChangeRecreation VehiclesTowables
    
    
    8.4
    %
    
    
    (14.6
    )%
    
    
    (6.2
    )%Motorized
    
    
    (.7
    )%
    
    
    (8.1
    )%
    
    
    (8.8
    )%
 TOWABLE RECREATION VEHICLES
    MOTORIZED RECREATION VEHICLES
  11




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MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)
   BUSES
  Average Price Per Unit
    
    Units
    
    Net ChangeBuses
    
    
    10.2
    %
    
    
    6.1
    %
    
    
    16.3
    %
    Financial Condition and Liquidity  $ (in 000)
    Critical Accounting Principles
  12




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MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)
 Impairment of Goodwill, Trademarks and Long-Lived Assets
  Insurance Reserves
  Warranty
  Income Taxes
  13




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MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)
 Revenue Recognition
  1)
    
    An order for a product has been received from a dealer;2)
    
    Written or oral approval for payment has been received from the dealers flooring
institution;3)
    
    A common carrier signs the delivery ticket accepting responsibility for the product as agent
for the dealer; and4)
    
    The product is removed from the Companys property for delivery to the dealer who placed the
order.
  Repurchase Commitments
  Forward Looking Statements
  
 ITEM
3. Quantitative and Qualitative Disclosures About Market Risk
  14




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MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)
 
 ITEM 4. Controls and Procedures
    15




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MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)
 
 PART II   Other Information
 
 ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds
 (c) ISSUER PURCHASES OF EQUITY SECURITIES
 (c) Total Number
    
    (d) Maximum Numberof Shares
    
    (or Approximate(a) Total
    
    (b)
    
    (or Units)
    
    Dollar Value)Number
    
    Average
    
    Purchased as
    
    of Shares (or Units)of Shares
    
    Price Paid
    
    Part of Publicly
    
    that May Yet Be(or Units)
    
    Per Share
    
    Announced Plans
    
    Purchased Under thePeriod
    
    Purchased
    
    (or Unit)
    
    or Programs (1)
    
    Plans or ProgramsAugust 2006
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,987,600September 2006
    
    
    20,100
    
    
    $
    39.94
    
    
    
    20,100
    
    
    
    1,967,500October 2006
    
    
    20,300
    
    
    $
    40.72
    
    
    
    20,300
    
    
    
    1,947,200
 
 (1)
    
    On March 11, 2003, we announced that our Board of Directors had approved a share repurchase program, pursuant to which up to 1,000,000 shares of our common stock may be repurchased. In the second quarter of fiscal 2004, we affected a two-for-one stock split, resulting in
2,000,000 shares authorized for repurchase under the program. On June 26, 2006 our Board of Directors
authorized the repurchase of an additional 2,000,000 shares extending over a 24-month period
before expiring. At October 31, 2006, 1,947,200 shares of common stock remained authorized
for repurchase under the repurchase program. 
 ITEM 6. Exhibits
 a.) Exhibits
 31.1
    
    Chief Executive Officers Certification filed pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.31.2
    
    Chief Financial Officers Certification filed pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.32.1
    
    Chief Executive Officers Certification furnished pursuant to Section 906 of the Sarbanes-Oxley Act 2002.32.2
    
    Chief Financial Officers Certification furnished pursuant to Section 906 of the Sarbanes-Oxley Act 2002.
 16




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SIGNATURES
  THOR INDUSTRIES, INC.
(Registrant)DATE: November 27, 2006
    /s/  Wade F. B. ThompsonWade F. B. ThompsonChairman of the Board, President
and Chief Executive OfficerDATE: November 27, 2006
    /s/  Walter L. BennettWalter L. BennettExecutive Vice President,
Secretary and Chief Financial Officer 17