Thor Industries, Inc. announced that its Board of Directors has authorized the repurchase of up to $250 million of its common stock.
The repurchase authorization for the maker of recreational vehicles will expire on December 21, 2024.
“Our strong earnings growth positions us to drive value back to our shareholders. Given our current stock price, this buyback program offers the best vehicle to accomplish that objective. We believe there is a material misalignment between our value and our stock price. Given our favorable outlook on the industry and in our business, there is no better investment opportunity for Thor than its own shares at the current market price. Our business has historically generated strong cash flow, and as we continue to implement our balanced, long-term capital allocation plan, share buybacks are an additional, important tool for us to enhance shareholder value. While we intend to exercise our auThority opportunistically in the near-term, we intend to incorporate share repurchases into our permanent capital allocation strategy which includes our continued focus on paying down our acquisition-related debt.” said Bob Martin, President and CEO, Thor Industries.
Thor Senior Vice President and CFO Colleen Zuhl commented, “Pursuant to our capital allocation plan, in fiscal year 2021 we invested $129 million into capital expenditures designed to grow our business and drive future efficiencies and margin expansion. We also returned $91 million in capital to our shareholders through dividend payments in the fiscal year. As we contemplate future share repurchases, we will evaluate the potential investment as we would an investment in organic growth or acquisition: choosing the option that has the potential to generate the best return on invested capital. Given the current stock price, we believe Thor shares represent the best risk-adjusted returns for our cash.”
Photo courtesy Thor Industries
