##### Table of Contents



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 FORM 10-Q
 þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 for
the quarterly period ended April 30, 2008.
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 for the transition period from
 to .
 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)
 937) 596-6849
  Yes þ
    
    No o
  Large accelerated filer þAccelerated filer oNon-accelerated filer o(Do not check if a smaller reporting company)Smaller reporting company o  Yes o
    
    No þ
  Class
    
    Outstanding at 4/30/2008Common stock, par value
$.10 per share
    
    55,439,924 shares




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TABLE OF CONTENTS  PART I    Financial InformationITEM 1. Financial StatementsITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.ITEM 3. Quantitative and Qualitative Disclosures About Market RiskITEM 4. Controls and ProceduresPART II    Other InformationITEM 1. LEGAL PROCEEDINGS.ITEM 1A. RISK FACTORS.ITEM 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 except units, share and per share
data.
 
 ITEM 1. FINANCIAL STATEMENTS
 THOR INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS
 April 30, 2008
    
    
    July 31, 2007ASSETSCurrent assets:Cash and cash equivalents
    
    $
    119,680
    
    
    $
    171,889Investments  short term
    
    
    
    
    
    
    174,575Accounts receivable:Trade
    
    
    176,582
    
    
    
    171,596Other
    
    
    9,754
    
    
    
    5,799Inventories
    
    
    199,234
    
    
    
    168,980Prepaid expenses
    
    
    8,912
    
    
    
    6,684Deferred income taxes
    
    
    25,266
    
    
    
    6,005Total current assets
    
    
    539,428
    
    
    
    705,528Property:Land
    
    
    20,565
    
    
    
    21,795Buildings and improvements
    
    
    138,199
    
    
    
    134,352Machinery and equipment
    
    
    70,794
    
    
    
    64,572Total cost
    
    
    229,558
    
    
    
    220,719Accumulated depreciation
    
    
    72,641
    
    
    
    63,477Property, net
    
    
    156,917
    
    
    
    157,242Investment in Joint ventures
    
    
    2,748
    
    
    
    2,671Other assets:Long term investments
    
    
    127,928
    
    
    
    Goodwill
    
    
    165,663
    
    
    
    165,663Non-compete agreements
    
    
    1,293
    
    
    
    1,906Trademarks
    
    
    13,900
    
    
    
    13,900Other
    
    
    15,731
    
    
    
    12,387Total other assets
    
    
    324,515
    
    
    
    193,856TOTAL ASSETS
    
    $
    1,023,608
    
    
    $
    1,059,297LIABILITIES AND STOCKHOLDERS EQUITYCurrent liabilities:Accounts payable
    
    $
    114,313
    
    
    $
    123,433Accrued liabilities:Taxes
    
    
    26,294
    
    
    
    17,991Compensation and related items
    
    
    29,939
    
    
    
    39,242Product warranties
    
    
    62,384
    
    
    
    64,310Promotions and rebates
    
    
    11,803
    
    
    
    11,697Product/property liability and related liabilities
    
    
    14,240
    
    
    
    11,691Other
    
    
    14,558
    
    
    
    8,835Total current liabilities
    
    
    273,531
    
    
    
    277,199Long Term Liabilities:Unrecognized tax benefits
    
    
    26,805
    
    
    
    Other
    
    
    24,746
    
    
    
    15,767Total long term liabilities
    
    
    51,551
    
    
    
    15,767Contingent liabilities and commitments
    
    
    
    
    
    
    Stockholders equity:Common stock  authorized 250,000,000 shares;
issued 57,317,263 shares @ 4/30/08 and 57,222,404
shares @ 7/31/07; par value of $.10 per share
    
    
    5,732
    
    
    
    5,722Additional paid-in capital
    
    
    92,836
    
    
    
    90,247Accumulated other comprehensive income
    
    
    (1,126
    )
    
    
    2,756Retained earnings
    
    
    674,768
    
    
    
    727,729Less Treasury shares of 1,877,339 @ 4/30/08 & 1,441,600 @ 7/31/07
    
    
    (73,684
    )
    
    
    (60,123
    )Total stockholders equity
    
    
    698,526
    
    
    
    766,331TOTAL LIABILITIES AND STOCKHOLDERS EQUITY
    
    $
    1,023,608
    
    
    $
    1,059,297
  2




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THOR INDUSTRIES, INC. AND SUBSIDIARIES
STATEMENTS OF CONDENSED CONSOLIDATED INCOME  FOR THE THREE & NINE MONTHS ENDED APRIL 30, 2008 AND 2007
 Three Months Ended April 30
    
    
    Nine Months Ended April 302008
    
    
    2007
    
    
    2008
    
    
    2007Net sales
    
    $
    707,931
    
    
    $
    789,643
    
    
    $
    2,070,837
    
    
    $
    2,101,408Cost of products sold
    
    
    617,932
    
    
    
    686,663
    
    
    
    1,809,846
    
    
    
    1,848,091Gross profit
    
    
    89,999
    
    
    
    102,980
    
    
    
    260,991
    
    
    
    253,317Selling, general and
administrative expenses
    
    
    47,903
    
    
    
    51,834
    
    
    
    133,132
    
    
    
    132,703Gain on sale of property
    
    
    
    
    
    
    
    
    
    
    2,308
    
    
    
    Interest income
    
    
    2,406
    
    
    
    2,515
    
    
    
    9,763
    
    
    
    7,771Interest expense
    
    
    423
    
    
    
    212
    
    
    
    1,136
    
    
    
    563Other income
    
    
    261
    
    
    
    510
    
    
    
    1,232
    
    
    
    1,375Income before income taxes
    
    
    44,340
    
    
    
    53,959
    
    
    
    140,026
    
    
    
    129,197Provision for income taxes
    
    
    16,486
    
    
    
    18,390
    
    
    
    52,361
    
    
    
    44,779Net income
    
    $
    27,854
    
    
    $
    35,569
    
    
    $
    87,665
    
    
    $
    84,418Average common shares outstanding:Basic
    
    
    55,447,313
    
    
    
    55,696,304
    
    
    
    55,655,907
    
    
    
    55,654,327Diluted
    
    
    55,562,644
    
    
    
    55,935,718
    
    
    
    55,815,770
    
    
    
    55,916,602Earnings per common share:Basic
    
    $
    .51
    
    
    $
    .64
    
    
    $
    1.58
    
    
    $
    1.52Diluted
    
    $
    .50
    
    
    $
    .64
    
    
    $
    1.57
    
    
    $
    1.51Regular dividends declared and
paid per common share:
    
    $
    .07
    
    
    $
    .07
    
    
    $
    .21
    
    
    $
    .21Special dividends declared and
paid per common share:
    
    $
    
    
    
    $
    
    
    
    $
    2.00
    
    
    $
    1.00
  3




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THOR INDUSTRIES, INC. AND SUBSIDIARIES
STATEMENTS OF CONDENSED CONSOLIDATED CASH FLOWS  FOR THE NINE MONTHS ENDED APRIL 30, 2008 AND 2007
 2008
    
    
    2007Cash flows from operating activities:Net income
    
    $
    87,665
    
    
    $
    84,418Adjustments to reconcile net income to net cash (used in)
provided by operating activities:Depreciation
    
    
    10,045
    
    
    
    9,687Amortization
    
    
    613
    
    
    
    670Deferred income taxes
    
    
    (18,330
    )
    
    
    (20,604
    )(Gain) loss on disposition of assets
    
    
    (2,343
    )
    
    
    85Loss on disposition of trading investments
    
    
    
    
    
    
    104Stock based compensation
    
    
    216
    
    
    
    455Changes in non cash assets and liabilities, net of effect
from acquisitions:Proceeds from disposition of trading investments
    
    
    
    
    
    
    68,133Accounts receivable
    
    
    (8,941
    )
    
    
    (27,351
    )Inventories
    
    
    (30,254
    )
    
    
    (19,556
    )Prepaids and other
    
    
    (3,069
    )
    
    
    (6,521
    )Accounts payable
    
    
    (9,308
    )
    
    
    2,303Accrued liabilities
    
    
    15,205
    
    
    
    36,243Other liabilities
    
    
    8,007
    
    
    
    2,869Net cash provided by operating activities
    
    
    49,506
    
    
    
    130,935Cash flows from investing activities:Purchase of property, plant & equipment
    
    
    (12,137
    )
    
    
    (8,885
    )Proceeds from disposition of assets
    
    
    4,989
    
    
    
    230Purchase of available for sale investments
    
    
    (66,650
    )
    
    
    (205,020
    )Proceeds from sale of available for sale investments
    
    
    105,925
    
    
    
    100,148Net cash provided by (used in) investing activities
    
    
    32,127
    
    
    
    (113,527
    )Cash flows from financing activities:Cash dividends
    
    
    (123,397
    )
    
    
    (67,420
    )Purchase of common stock held as treasury shares
    
    
    (13,561
    )
    
    
    (1,630
    )Proceeds from issuance of common stock
    
    
    2,206
    
    
    
    2,151Net cash used in financing activities
    
    
    (134,752
    )
    
    
    (66,899
    )Effect of exchange rate changes on cash
    
    
    910
    
    
    
    337Net decrease in cash and equivalents
    
    
    (52,209
    )
    
    
    (49,154
    )Cash and equivalents, beginning of period
    
    
    171,889
    
    
    
    196,136Cash and equivalents, end of period
    
    $
    119,680
    
    
    $
    146,982Supplemental cash flow information:Income taxes paid
    
    $
    54,870
    
    
    $
    36,552Interest paid
    
    
    1,136
    
    
    
    563Non cash transactions:Capital expenditures in accounts payable
    
    $
    391
    
    
    $
    191Cancellation of restricted stock
    
    
    
    
    
    
    35
  4




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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 1.
    
    The July 31, 2007 amounts are derived 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, 2007. The results of
operations for the nine months ended April 30, 2008 are not necessarily indicative of the
results for the full year.2.
    
    Major classifications of inventories are:
 April 30, 2008
    
    
    July 31, 2007Raw materials
    
    $
    92,771
    
    
    $
    87,245Chassis
    
    
    48,432
    
    
    
    42,528Work in process
    
    
    58,215
    
    
    
    52,102Finished goods
    
    
    27,854
    
    
    
    12,326Total
    
    
    227,272
    
    
    
    194,201Less excess of FIFO costs
over LIFO costs
    
    
    28,038
    
    
    
    25,221Total inventories
    
    $
    199,234
    
    
    $
    168,980
 3.
    
    Earnings Per Share
 Three Months
    
    
    Three Months
    
    
    Nine Months
    
    
    Nine MonthsEnded
    
    
    Ended
    
    
    Ended
    
    
    EndedApril 30, 2008
    
    
    April 30, 2007
    
    
    April 30, 2008
    
    
    April 30, 2007Weighted average shares
outstanding for basic
earnings per share
    
    
    55,447,313
    
    
    
    55,696,304
    
    
    
    55,655,907
    
    
    
    55,654,327Stock options and
restricted stock
    
    
    115,331
    
    
    
    239,414
    
    
    
    159,863
    
    
    
    262,275Total  For diluted shares
    
    
    55,562,644
    
    
    
    55,935,718
    
    
    
    55,815,770
    
    
    
    55,916,602
 4.
    
    Comprehensive Income
 Three Months
    
    
    Three Months
    
    
    Nine Months
    
    
    Nine MonthsEnded
    
    
    Ended
    
    
    Ended
    
    
    EndedApril 30, 2008
    
    
    April 30, 2007
    
    
    April 30, 2008
    
    
    April 30, 2007Net income
    
    $
    27,854
    
    
    $
    35,569
    
    
    $
    87,665
    
    
    $
    84,418Foreign currency
translation adjustment
    
    
    (100
    )
    
    
    798
    
    
    
    910
    
    
    
    337Unrealized depreciation
on investments
    
    
    (4,792
    )
    
    
    
    
    
    
    (4,792
    )
    
    
    Comprehensive income
    
    $
    22,962
    
    
    $
    36,367
    
    
    $
    83,783
    
    
    $
    84,755
 5.
    
    Segment Information
  5




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Three Months
    
    
    Three Months
    
    
    Nine Months
    
    
    Nine MonthsEnded
    
    
    Ended
    
    
    Ended
    
    
    EndedApril 30, 2008
    
    
    April 30, 2007
    
    
    April 30, 2008
    
    
    April 30, 2007Net Sales:Recreation vehicles:Towables
    
    $
    480,020
    
    
    $
    524,041
    
    
    $
    1,398,172
    
    
    $
    1,397,936Motorized
    
    
    120,940
    
    
    
    159,642
    
    
    
    372,265
    
    
    
    412,259Total recreation vehicles
    
    
    600,960
    
    
    
    683,683
    
    
    
    1,770,437
    
    
    
    1,810,195Buses
    
    
    106,971
    
    
    
    105,960
    
    
    
    300,400
    
    
    
    291,213Total
    
    $
    707,931
    
    
    $
    789,643
    
    
    $
    2,070,837
    
    
    $
    2,101,408
 Three Months
    
    
    Three Months
    
    
    Nine Months
    
    
    Nine MonthsEnded
    
    
    Ended
    
    
    Ended
    
    
    EndedApril 30, 2008
    
    
    April 30, 2007
    
    
    April 30, 2008
    
    
    April 30, 2007Income Before Income Taxes:Recreation vehicles:Towables
    
    $
    42,014
    
    
    $
    48,086
    
    
    $
    123,318
    
    
    $
    110,290Motorized
    
    
    3,390
    
    
    
    7,220
    
    
    
    13,804
    
    
    
    16,756Total recreation vehicles
    
    
    45,404
    
    
    
    55,306
    
    
    
    137,122
    
    
    
    127,046Buses
    
    
    5,113
    
    
    
    5,447
    
    
    
    12,808
    
    
    
    11,622Corporate
    
    
    (6,177
    )
    
    
    (6,794
    )
    
    
    (9,904
    )
    
    
    (9,471
    )Total
    
    $
    44,340
    
    
    $
    53,959
    
    
    $
    140,026
    
    
    $
    129,197
 April 30, 2008
    
    
    July 31, 2007Identifiable Assets:Recreation vehicles:Towables
    
    $
    471,478
    
    
    $
    449,276Motorized
    
    
    158,696
    
    
    
    147,598Total recreation vehicles
    
    
    630,174
    
    
    
    596,874Buses
    
    
    101,698
    
    
    
    105,864Corporate
    
    
    291,736
    
    
    
    356,559Total
    
    $
    1,023,608
    
    
    $
    1,059,297
 6.
    
    Treasury Shares
  7.
    
    Investments
  6




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8.
    
    Goodwill and Other Intangible Assets
  April 30, 2008
    
    July 31, 2007Accumulated
    
    
    
    
    
    AccumulatedCost
    
    Amortization
    
    Cost
    
    AmortizationAmortized Intangible Assets:Non-compete agreements
    
    $
    6,256
    
    
    $
    4,963
    
    
    $
    6,256
    
    
    $
    4,350
 Three Months
    
    Three Months
    
    Nine Months
    
    Nine MonthsEnded
    
    Ended
    
    Ended
    
    EndedApril 30, 2008
    
    April 30, 2007
    
    April 30, 2008
    
    April 30, 2007Non-compete Agreements:Amortization Expense
    
    $
    200
    
    
    $
    216
    
    
    $
    613
    
    
    $
    670
 7




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For the year ending July 2008
    
    $
    812For the year ending July 2009
    
    $
    476For the year ending July 2010
    
    $
    322For the year ending July 2011
    
    $
    238For the year ending July 2012
    
    $
    58
   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.
    
    Warranty
  Three Months
    
    
    Three Months
    
    
    Nine Months
    
    
    Nine MonthsEnded
    
    
    Ended
    
    
    Ended
    
    
    EndedApril 30, 2008
    
    
    April 30, 2007
    
    
    April 30, 2008
    
    
    April 30, 2007Beginning Balance
    
    $
    61,690
    
    
    $
    59,061
    
    
    $
    64,310
    
    
    $
    59,795Provision
    
    
    17,169
    
    
    
    17,049
    
    
    
    49,244
    
    
    
    50,243Payments
    
    
    (16,474
    )
    
    
    (15,386
    )
    
    
    (51,169
    )
    
    
    (49,314
    )Ending Balance
    
    $
    62,385
    
    
    $
    60,724
    
    
    $
    62,385
    
    
    $
    60,724
 10.
    
    Commercial Commitments
  Total
    
    Term ofCommitment
    
    Amount Committed
    
    GuaranteeGuarantee on dealer financing
    
    $
    2,257
    
    
    less than 1 yearStandby repurchase obligation
on dealer financing
    
    $
    995,351
    
    
    less than 1 year
 8




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Three Months
    
    
    Three Months
    
    
    Nine Months
    
    
    Nine MonthsEnded
    
    
    Ended
    
    
    Ended
    
    
    EndedApril 30, 2008
    
    
    April 30, 2007
    
    
    April 30, 2008
    
    
    April 30, 2007Cost of units repurchased
    
    $
    2,239
    
    
    $
    2,313
    
    
    $
    4,993
    
    
    $
    10,402Realization on units resold
    
    
    1,614
    
    
    
    2,245
    
    
    
    4,049
    
    
    
    9,262Losses due to repurchase
    
    $
    625
    
    
    $
    68
    
    
    $
    944
    
    
    $
    1,140
 11.
    
    Provision for Income Taxes
      12.
    
    Retained Earnings
  Balance @ 7/31/07
    
    $
    727,729Net Income
    
    
    87,665Dividends Paid
    
    
    (123,397
    )FIN 48 Adjustment
    
    
    (17,229
    )Balance @ 4/30/08
    
    $
    674,768
 9




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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
      Trends and Business Outlook
  10




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Three Months Ended April 30, 2008 vs.
 Three Months Ended April 30, 2007
 Three Months Ended
    
    
    
    
    
    
    Three Months Ended
    
    
    
    
    
    
    ChangeApril 30, 2008
    
    
    
    
    
    

April 30 2007
    
    
    
    
    
    
    Amount
    
    
    %NET SALES:Recreation VehiclesTowables
    
    $
    480,020
    
    
    
    
    
    
    $
    524,041
    
    
    
    
    
    
    $
    (44,021
    )
    
    
    (8.4
    )Motorized
    
    
    120,940
    
    
    
    
    
    
    
    159,642
    
    
    
    
    
    
    
    (38,702
    )
    
    
    (24.2
    )Total Recreation Vehicles
    
    
    600,960
    
    
    
    
    
    
    
    683,683
    
    
    
    
    
    
    
    (82,723
    )
    
    
    (12.1
    )Buses
    
    
    106,971
    
    
    
    
    
    
    
    105,960
    
    
    
    
    
    
    
    1,011
    
    
    
    1.0Total
    
    $
    707,931
    
    
    
    
    
    
    $
    789,643
    
    
    
    
    
    
    $
    (81,712
    )
    
    
    (10.3
    )# OF UNITS:Recreation VehiclesTowables
    
    
    21,296
    
    
    
    
    
    
    
    24,530
    
    
    
    
    
    
    
    (3,234
    )
    
    
    (13.2
    )Motorized
    
    
    1,570
    
    
    
    
    
    
    
    2,153
    
    
    
    
    
    
    
    (583
    )
    
    
    (27.1
    )Total Recreation Vehicles
    
    
    22,866
    
    
    
    
    
    
    
    26,683
    
    
    
    
    
    
    
    (3,817
    )
    
    
    (14.3
    )Buses
    
    
    1,597
    
    
    
    
    
    
    
    1,737
    
    
    
    
    
    
    
    (140
    )
    
    
    (8.1
    )Total
    
    
    24,463
    
    
    
    
    
    
    
    28,420
    
    
    
    
    
    
    
    (3,957
    )
    
    
    (13.9
    )% of
    
    
    
    
    
    
    % ofSegment
    
    
    
    
    
    
    Segment
    
    
    ChangeNet Sales
    
    
    
    
    
    
    Net Sales
    
    
    Amount
    
    
    %GROSS PROFIT:Recreation VehiclesTowables
    
    $
    69,731
    
    
    
    14.5
    
    
    $
    77,258
    
    
    
    14.7
    
    
    $
    (7,527
    )
    
    
    (9.7
    )Motorized
    
    
    10,671
    
    
    
    8.8
    
    
    
    16,395
    
    
    
    10.3
    
    
    
    (5,724
    )
    
    
    (34.9
    )Total Recreation Vehicles
    
    
    80,402
    
    
    
    13.4
    
    
    
    93,653
    
    
    
    13.7
    
    
    
    (13,251
    )
    
    
    (14.1
    )Buses
    
    
    9,597
    
    
    
    9.0
    
    
    
    9,327
    
    
    
    8.8
    
    
    
    270
    
    
    
    2.9Total
    
    $
    89,999
    
    
    
    12.7
    
    
    $
    102,980
    
    
    
    13.0
    
    
    $
    (12,981
    )
    
    
    (12.6
    )SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES:Recreation VehiclesTowables
    
    $
    27,835
    
    
    
    5.8
    
    
    $
    29,275
    
    
    
    5.6
    
    
    $
    (1,440
    )
    
    
    (4.9
    )Motorized
    
    
    7,279
    
    
    
    6.0
    
    
    
    9,175
    
    
    
    5.7
    
    
    
    (1,896
    )
    
    
    (20.7
    )Total Recreation Vehicles
    
    
    35,114
    
    
    
    5.8
    
    
    
    38,450
    
    
    
    5.6
    
    
    
    (3,336
    )
    
    
    (8.7
    )Buses
    
    
    4,293
    
    
    
    4.0
    
    
    
    3,655
    
    
    
    3.4
    
    
    
    638
    
    
    
    17.5Corporate
    
    
    8,496
    
    
    
    
    
    
    
    9,729
    
    
    
    
    
    
    
    (1,233
    )
    
    
    (12.7
    )Total
    
    $
    47,903
    
    
    
    6.8
    
    
    $
    51,834
    
    
    
    6.6
    
    
    $
    (3,931
    )
    
    
    (7.6
    )INCOME BEFORE INCOME TAXES:Recreation VehiclesTowables
    
    $
    42,014
    
    
    
    8.8
    
    
    $
    48,086
    
    
    
    9.2
    
    
    $
    (6,072
    )
    
    
    (12.6
    )Motorized
    
    
    3,390
    
    
    
    2.8
    
    
    
    7,220
    
    
    
    4.5
    
    
    
    (3,830
    )
    
    
    (53.0
    )Total Recreation Vehicles
    
    
    45,404
    
    
    
    7.6
    
    
    
    55,306
    
    
    
    8.1
    
    
    
    (9,902
    )
    
    
    (17.9
    )Buses
    
    
    5,113
    
    
    
    4.8
    
    
    
    5,447
    
    
    
    5.1
    
    
    
    (334
    )
    
    
    (6.1
    )Corporate
    
    
    (6,177
    )
    
    
    
    
    
    
    (6,794
    )
    
    
    
    
    
    
    617
    
    
    
    9.1Total
    
    $
    44,340
    
    
    
    6.3
    
    
    $
    53,959
    
    
    
    6.8
    
    
    $
    (9,619
    )
    
    
    (17.8
    )As of
    
    
    
    
    
    
    As of
    
    
    
    
    
    
    ChangeApril 30, 2008
    
    
    
    
    
    
    April 30, 2007
    
    
    
    
    
    
    Amount
    
    
    %ORDER BACKLOG:Recreation VehiclesTowables
    
    $
    194,938
    
    
    
    
    
    
    $
    266,448
    
    
    
    
    
    
    $
    (71,510
    )
    
    
    (26.8
    )Motorized
    
    
    81,499
    
    
    
    
    
    
    
    111,339
    
    
    
    
    
    
    
    (29,840
    )
    
    
    (26.8
    )Total Recreation Vehicles
    
    
    276,437
    
    
    
    
    
    
    
    377,787
    
    
    
    
    
    
    
    (101,350
    )
    
    
    (26.8
    )Buses
    
    
    249,533
    
    
    
    
    
    
    
    214,755
    
    
    
    
    
    
    
    34,778
    
    
    
    16.2Total
    
    $
    525,970
    
    
    
    
    
    
    $
    592,542
    
    
    
    
    
    
    $
    (66,572
    )
    
    
    (11.2
    )
 12




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CONSOLIDATED
     Segment Reporting
 RECREATION VEHICLES
  Average PricePer Unit
    
    Units
    
    Net ChangeRecreation VehiclesTowables
    
    
    4.8
    %
    
    
    (13.2
    )%
    
    
    (8.4
    )%Motorized
    
    
    2.9
    %
    
    
    (27.1
    )%
    
    
    (24.2
    )%
 TOWABLE RECREATION VEHICLES
     13




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MOTORIZED RECREATION VEHICLES
    BUSES
  Average Price Per Unit
    
    Units
    
    Net ChangeBuses
    
    
    9.1
    %
    
    
    (8.1
    )%
    
    
    1.0
    %
    Nine Months Ended
    
    
    
    
    
    
    Nine Months Ended
    
    
    
    
    
    
    ChangeApril 30, 2008
    
    
    
    
    
    
    April 30 2007
    
    
    
    
    
    
    Amount
    
    
    %NET SALES:Recreation VehiclesTowables
    
    $
    1,398,172
    
    
    
    
    
    
    $
    1,397,936
    
    
    
    
    
    
    $
    236
    
    
    
    Motorized
    
    
    372,265
    
    
    
    
    
    
    
    412,259
    
    
    
    
    
    
    
    (39,994
    )
    
    
    (9.7
    )Total Recreation Vehicles
    
    
    1,770,437
    
    
    
    
    
    
    
    1,810,195
    
    
    
    
    
    
    
    (39,758
    )
    
    
    (2.2
    )Buses
    
    
    300,400
    
    
    
    
    
    
    
    291,213
    
    
    
    
    
    
    
    9,187
    
    
    
    3.2Total
    
    $
    2,070,837
    
    
    
    
    
    
    $
    2,101,408
    
    
    
    
    
    
    $
    (30,571
    )
    
    
    (1.5
    )
 14




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##### Table of Contents



Nine Months Ended
    
    
    
    
    
    
    Nine Months Ended
    
    
    
    
    
    
    ChangeApril 30, 2008
    
    
    
    
    
    
    April 30 2007
    
    
    
    
    
    
    Amount
    
    
    %# OF UNITS:Recreation VehiclesTowables
    
    
    62,936
    
    
    
    
    
    
    
    65,456
    
    
    
    
    
    
    
    (2,520
    )
    
    
    (3.8
    )Motorized
    
    
    4,681
    
    
    
    
    
    
    
    5,529
    
    
    
    
    
    
    
    (848
    )
    
    
    (15.3
    )Total Recreation Vehicles
    
    
    67,617
    
    
    
    
    
    
    
    70,985
    
    
    
    
    
    
    
    (3,368
    )
    
    
    (4.7
    )Buses
    
    
    4,567
    
    
    
    
    
    
    
    4,825
    
    
    
    
    
    
    
    (258
    )
    
    
    (5.3
    )Total
    
    
    72,184
    
    
    
    
    
    
    
    75,810
    
    
    
    
    
    
    
    (3,626
    )
    
    
    (4.8
    )% of
    
    
    
    
    
    
    % ofSegment
    
    
    
    
    
    
    Segment
    
    
    ChangeNet Sales
    
    
    
    
    
    
    Net Sales
    
    
    Amount
    
    
    %GROSS PROFIT:Recreation VehiclesTowables
    
    $
    200,986
    
    
    
    14.4
    
    
    $
    191,656
    
    
    
    13.7
    
    
    $
    9,330
    
    
    
    4.9Motorized
    
    
    34,344
    
    
    
    9.2
    
    
    
    38,888
    
    
    
    9.4
    
    
    
    (4,544
    )
    
    
    (11.7
    )Total Recreation Vehicles
    
    
    235,330
    
    
    
    13.3
    
    
    
    230,544
    
    
    
    12.7
    
    
    
    4,786
    
    
    
    2.1Buses
    
    
    25,661
    
    
    
    8.5
    
    
    
    22,773
    
    
    
    7.8
    
    
    
    2,888
    
    
    
    12.7Total
    
    $
    260,991
    
    
    
    12.6
    
    
    $
    253,317
    
    
    
    12.1
    
    
    $
    7,674
    
    
    
    3.0SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES:Recreation VehiclesTowables
    
    $
    80,462
    
    
    
    5.8
    
    
    $
    81,659
    
    
    
    5.8
    
    
    $
    (1,197
    )
    
    
    (1.5
    )Motorized
    
    
    20,575
    
    
    
    5.5
    
    
    
    22,118
    
    
    
    5.4
    
    
    
    (1,543
    )
    
    
    (7.0
    )Total Recreation Vehicles
    
    
    101,037
    
    
    
    5.7
    
    
    
    103,777
    
    
    
    5.7
    
    
    
    (2,740
    )
    
    
    (2.6
    )Buses
    
    
    11,961
    
    
    
    4.0
    
    
    
    10,659
    
    
    
    3.7
    
    
    
    1,302
    
    
    
    12.2Corporate
    
    
    20,134
    
    
    
    
    
    
    
    18,267
    
    
    
    
    
    
    
    1,867
    
    
    
    10.2Total
    
    $
    133,132
    
    
    
    6.4
    
    
    $
    132,703
    
    
    
    6.3
    
    
    $
    429
    
    
    
    0.3INCOME BEFORE INCOME TAXES:Recreation VehiclesTowables
    
    $
    123,318
    
    
    
    8.8
    
    
    $
    110,290
    
    
    
    7.9
    
    
    $
    13,028
    
    
    
    11.8Motorized
    
    
    13,804
    
    
    
    3.7
    
    
    
    16,756
    
    
    
    4.1
    
    
    
    (2,952
    )
    
    
    (17.6
    )Total Recreation Vehicles
    
    
    137,122
    
    
    
    7.7
    
    
    
    127,046
    
    
    
    7.0
    
    
    
    10,076
    
    
    
    7.9Buses
    
    
    12,808
    
    
    
    4.3
    
    
    
    11,622
    
    
    
    4.0
    
    
    
    1,186
    
    
    
    10.2Corporate
    
    
    (9,904
    )
    
    
    
    
    
    
    (9,471
    )
    
    
    
    
    
    
    (433
    )
    
    
    (4.6
    )Total
    
    $
    140,026
    
    
    
    6.8
    
    
    $
    129,197
    
    
    
    6.1
    
    
    $
    10,829
    
    
    
    8.4
 CONSOLIDATED
   15




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Segment Reporting
 RECREATION VEHICLES
  Average PricePer Unit
    
    Units
    
    Net ChangeRecreation VehiclesTowables
    
    
    3.8
    %
    
    
    (3.8
    )%
    
    
    Motorized
    
    
    5.6
    %
    
    
    (15.3
    )%
    
    
    (9.7
    )%
 TOWABLE RECREATION VEHICLES
      MOTORIZED RECREATION VEHICLES
   16




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BUSES
  Average Price Per Unit
    
    Units
    
    Net ChangeBuses
    
    
    8.6
    %
    
    
    (5.4
    )%
    
    
    3.2
    %
    Financial Condition and Liquidity
      17




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##### Table of Contents



Critical Accounting Principles
  Impairment of Goodwill, Trademarks and Long-Lived Assets
  Insurance Reserves
  18




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##### Table of Contents



Warranty
  Income Taxes
   Revenue Recognition
  19




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##### Table of Contents



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
  Investments
  Accounting Pronouncements
   20




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##### Table of Contents



Business Combinations
 
    
    Transaction costs, many of which are currently treated as costs of the acquisition, will
generally be expensed.
    
    In-process research and development will be accounted for as an asset, with the cost
recognized as the research and development is realized or abandoned. These costs are
currently expensed at the time of the acquisition.
    
    Contingencies, including contingent consideration, will generally be recorded at fair
value with subsequent adjustments recognized in operations. Contingent consideration is
currently accounted for as an adjustment of the purchase price.
    
    Decreases in valuation allowances on acquired deferred tax assets will be recognized in
operations. Previously such changes were considered to be subsequent changes in
consideration and were recorded as decreases in goodwill.
  Forward Looking Statements
  
 ITEM 3.Quantitative and Qualitative Disclosures About Market Risk
   21




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ITEM 4.Controls and Procedures
  22




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23




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PART II    Other Information
 
 ITEM 1. LEGAL PROCEEDINGS.
    
 ITEM 1A. RISK FACTORS.
  Our investments in auction rate securities are subject to risks which may cause losses and affect
the liquidity of these investments.
   24




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##### Table of Contents



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 ProgramsFebruary 2008
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,572,961March 2008
    
    
    17,300
    
    
    $
    28.78
    
    
    
    17,300
    
    
    
    1,555,661April 2008
    
    
    44,200
    
    
    $
    28.46
    
    
    
    44,200
    
    
    
    1,511,461
 
 (1)
    
    On June 26, 2006 our Board of Directors authorized the repurchase of 2,000,000 shares
extending over a 24-month period before expiring. At April 30, 2008, 1,511,461 shares of
common stock remained authorized for repurchase under the repurchase program.
 
 ITEM 6. Exhibits
 Exhibit
    
    Description31.1
    
    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.
 25




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SIGNATURES
  THOR INDUSTRIES, INC.
          (Registrant)DATE:   June 9, 2008
    By:
    /s/ Wade F. B. ThompsonWade F. B. ThompsonChairman of the Board, President
and Chief Executive OfficerDATE:   June 9, 2008
    /s/ Christian G. FarmanChristian G. FarmanSenior Vice President
and Chief Financial Officer 26