Thor Industries (THO) 8-K/A Consolidated statement of income

Exhibit 99.2

Jayco, Corp.

and Subsidiary and Affiliate

Unaudited Condensed Consolidated Financial Report

4.30.2016

Jayco, Corp. and Subsidiary and Affiliate
Condensed consolidated balance sheets (unaudited)	1
Condensed consolidated statements of income (unaudited)	2
Condensed consolidated statements of cash flows (unaudited)	3
Notes to condensed consolidated financial statements (unaudited)	4-7

Jayco, Corp. And Subsidiary And Affiliate

Condensed Consolidated Balance Sheets (Unaudited)

April 30, 2016 and December 31, 2015

	April 30, 2016		December 31,     2015
ASSETS
Current Assets
Cash	$	27,323,898	$	31,522,009
Investment in trading securities		7,123,033		6,861,690
Receivables		101,438,776		88,020,406
Inventories		155,724,848		115,426,655
Prepaid expenses		2,208,380		2,951,018
Total current assets		293,818,935		244,781,778
Property and Equipment, at depreciated cost		54,418,832		53,817,010
Intangible Assets, net		2,054,317		2,201,335
Goodwill		852,770		852,770
Cash Value of Life Insurance		5,456,586		5,456,586
Other Assets		60,525		42,055
	$	356,661,965	$	307,151,534
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Accounts payable	$	69,078,145	$	40,725,469
Accrued liabilities		115,513,571		107,487,736
Total current liabilities		184,591,716		148,213,205
Long-Term Liabilities
Deferred compensation		3,474,794		3,469,461
Supplemental executive retirement plan obligation		7,213,891		7,047,240
Total long-term liabilities		10,688,685		10,516,701
Commitments and Contingencies
Stockholders’ Equity
Common stock		4,921,461		4,921,461
Retained earnings		156,460,103		143,500,167
		161,381,564		148,421,628
	$	356,661,965	$	307,151,534

See notes to condensed consolidated financial statements.

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Jayco, Corp. And Subsidiary And Affiliate

Condensed Consolidated Statements Of Income (Unaudited)

Four Months Ended April 30, 2016 and 2015

	April 30, 2016			April 30,     2015
Net sales	$	601,327,093		$	466,805,728
Cost of goods sold		538,384,750			424,696,041
Gross profit		62,942,343			42,109,687
Operating expenses:
Selling		13,658,584			11,022,656
General and administrative		14,356,264			9,426,610
		28,014,848			20,449,266
Operating income		34,927,495			21,660,421
Nonoperating income (expense):
Investment income		2,229			63,489
Interest expense		(64,569	)		(75,840)
		(62,340	)		(12,351)
Net income	$	34,865,155		$	21,648,070

See notes to condensed consolidated financial statements.

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Jayco, Corp. And Subsidiary And Affiliate

Condensed Consolidated Statements Of Cash Flows (Unaudited)

Four Months Ended April 30, 2016 and 2015

	April 30, 2016			April 30,     2015
Cash Flows From Operating Activities
Net income	$	34,865,155		$	21,648,070
Adjustments to reconcile consolidated net income to net cash provided by operating activities
Depreciation and amortization		2,276,002			1,766,665
Deferred compensation		35,734			26,592
Loss (gain) on sale of property and equipment		24,219			(1,000)
Supplemental executive retirement plan obligation		(94,692	)		(92,098)
Change in assets and liabilities, net of acquisitions:
Decrease (increase) in:
Receivables		(13,418,370	)		(19,243,367)
Inventories		(40,298,193	)		(6,935,560)
Prepaid expenses		742,638			783,361
Increase in:
Accounts payable		28,352,676			23,593,290
Accrued liabilities		8,025,835			3,994,032
Net cash provided by operating activities		20,511,004			25,539,985
Cash Flows From Investing Activities
Proceeds from sale of property and equipment		150,000			35,120
Purchase of property and equipment		(2,905,024	)		(5,471,361)
Proceeds from sale of trading securities		474,534			115,332
Other		(18,470	)		(177)
Net cash used in investing activities		(2,298,960	)		(5,321,086)
Cash Flows From Financing Activities
Deferred compensation payments		(30,401	)		(27,923)
Dividends paid		(21,905,220	)		(20,806,152)
Supplemental executive retirement plan payments		(474,534	)		(115,332)
Net cash used in financing activities		(22,410,155	)		(20,949,407)
Decrease in cash		(4,198,111	)		(730,508)
Cash, beginning		31,522,009			22,803,857
Cash, ending	$	27,323,898		$	22,073,349

See notes to condensed consolidated financial statements.

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Jayco, Corp. and Subsidiary and Affiliate

Notes to Condensed Consolidated Financial Statements

Note 1. Nature of Businesses and Significant Accounting Policies

Nature of businesses:

Jayco, Corp. is a management company and the holding company of Jayco, Inc.

Jayco, Inc. and its wholly-owned subsidiary, Highland Ridge RV, Inc. (“Highland Ridge”) are manufacturers of recreational vehicles. The recreational vehicles are sold throughout the United States and Canada and the majority of these vehicles are financed by dealers through financial institutions. Premium Custom Painting Co., a wholly-owned subsidiary of Jayco, Inc., provides painting services, primarily to Jayco, Inc.

Gen23, Corp. is a holding company for Jayco International Sales, Inc.

Jayco International Sales, Inc. is an interest charge domestic international sales corporation.

On June 30, 2016, Jayco, Corp. sold 100% of its stock to an unrelated party.

Significant accounting policies:

Principles of consolidation:

The consolidated financial statements include Jayco, Corp. and its wholly-owned subsidiary, Jayco, Inc. (“Jayco”) and its wholly-owned subsidiaries Highland Ridge RV, Inc. and Premium Custom Painting Co., which are collectively referred to as the Companies. The consolidated financial statements also include an affiliate, Gen23, Corp. and its wholly-owned subsidiary, Jayco International Sales, Inc. All material intercompany accounts and transactions have been eliminated in consolidation.

Use of estimates:

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America for interim financial information. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete consolidated financial statements. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes for the year ended December 31, 2015. In our opinion, these condensed consolidated financial statements reflect all adjustments, consisting of normal, recurring accruals and similar items, necessary to present fairly our Condensed Consolidated Financial Statements for the interim periods presented herein. The consolidated results of operations for the four months ended April 30, 2016 and 2015 are not necessarily indicative of the results to be expected for the full year.

Revenue recognition:

Jayco generally manufactures products based on specific orders from customers and ships completed products only after receiving credit approval from financial institutions. Revenue is recognized when title passes to the customer, which is when the product is shipped to customers in accordance with shipping terms, which are primarily FOB shipping point.

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Jayco, Corp. and Subsidiary and Affiliate

Notes to Condensed Consolidated Financial Statements

Warranties:

Jayco provides a limited warranty primarily for a period of two years after the retail sale date for its products. Jayco’s standard warranty requires Jayco or its dealers to repair or replace defective products during such warranty period at no cost to the consumer. Jayco estimates the costs that may be incurred under its basic limited warranty and records a liability in the amount of such costs at the time product revenue is recognized. Factors that affect Jayco’s warranty liability include the number of units sold, historical and anticipated rates of warranty claims, and cost per claim. Jayco periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary. Jayco utilizes historical trends and analytical tools to assist in determining the appropriate loss reserve levels.

Changes in Jayco’s warranty liability during the four months ended April 30, 2016 and 2015 are as follows:

	2016			2015
Balance, beginning	$	69,875,000		$	58,336,550
Accruals for products sold		26,795,533			17,452,716
Payments made		(21,143,728	)		(14,017,727)
Balance, ending	$	75,526,805		$	61,771,539

Subsequent events:

The Companies have evaluated subsequent events for potential recognition and/or disclosure through September 15, 2016, the date the consolidated financial statements were available to be issued.

Note 2. Inventories

Inventories at April 30, 2016 and December 31, 2015 are composed of the following:

	2016		2015
Raw materials	$	34,049,571	$	28,584,664
Work in process, excluding chassis		9,656,402		9,454,854
Finished goods, excluding chassis		45,311,314		36,784,887
Chassis		78,307,561		52,202,250
		167,324,848		127,026,655
Less LIFO reserve		11,600,000		11,600,000
	$	155,724,848	$	115,426,655

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Jayco, Corp. and Subsidiary and Affiliate

Notes to Condensed Consolidated Financial Statements

Note 3. Property and Equipment

The cost of property and equipment and the related accumulated depreciation as of April 30, 2016 and December 31, 2015 is as follows:

	2016		2015
Land and improvements	$	22,737,579	$	22,656,551
Buildings and improvements		62,240,380		61,945,527
Machinery and equipment		23,541,213		23,552,905
Transportation equipment		2,071,034		2,048,724
Office furniture and equipment		16,032,694		15,250,057
Construction in progress		2,997,122		1,516,068
		129,620,022		126,969,832
Less accumulated depreciation		75,201,190		73,152,822
	$	54,418,832	$	53,817,010

Note 4. Accrued Liabilities

The composition of accrued liabilities as of April 30, 2016 and December 31, 2015 is as follows:

	2016		2015
Wages and related taxes	$	17,073,459	$	17,843,503
Warranty		75,526,805		69,875,000
Health and liability insurance		1,907,000		1,740,999
Dealer incentives		16,329,488		12,789,581
Delivery		3,465,000		2,760,000
Other		1,211,819		2,478,653
	$	115,513,571	$	107,487,736

Note 5. Income Taxes

The Companies, with the consent of their stockholders, have elected to have their income taxed under Section 1362 of the Internal Revenue Code and a similar section of the state tax laws which provide that, in lieu of corporation income taxes, the stockholders account for their proportionate shares of the Companies’ items of income, deduction, losses, and credits. The Companies have and intend to make cash distributions for the stockholders’ individual tax liabilities on taxable income generated by the Companies.

The Companies have evaluated their tax positions and have concluded that they have taken no uncertain tax positions that require adjustment to the financial statements. With few exceptions, the Companies are no longer subject to tax examinations by the U.S. federal, state or local tax authorities for years before 2012.

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Jayco, Corp. and Subsidiary and Affiliate

Notes to Condensed Consolidated Financial Statements

Note 6. Major Customer

One customer accounted for more than 10% of the Companies’ consolidated net sales for the four months ended April 30, 2016 and 2015. Net sales for the four months ended April 30, 2016 and the related accounts receivable balance at April 30, 2016 for this customer was approximately $82,000,000 and $11,000,000 respectively. Net sales for the four months ended April 30, 2015 and the related accounts receivable balance at December 31, 2015 was approximately $68,000,000 and $14,400,000 respectively.

Note  7. Cash Flows Information

Supplemental information relative to the statements of cash flows for the four months ended April 30, 2016 and 2015 is as follows:

	2016		2015
Supplemental disclosures of cash flows information:
Cash payments for interest	$	102,402	$	53,950

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