11/05/2020

11 May 2020
11 May 2020, Comments Comments Off on LCI Industries reports 11% increase in revenues in first quarter of 2020
LCI Industries reports 11% increase in revenues in first quarter of 2020

LCI Industries has reported an 11 percent increase in sales revenues to $659.7 million in its first quarter results for 2020 compared to the same period last year.

The increase in year-over-year net sales for the first quarter of 2020 reflects acquisitions and organic growth across LCI’s adjacent industries OEM, aftermarket and international markets, partially offset by the impact of customer shutdowns in response to the spread of COVID-19. Net sales from acquisitions contributed $99.5 million in the first quarter of 2020.

Commenting on these results, Jason Lippert, LCI Industries’ President and Chief Executive Officer said: “We delivered an 11 percent increase in revenues during the first quarter of 2020, despite the about-face in demand that occurred late in the quarter. As we began the year, RV retail sales trended positively, largely outperforming industry expectations. In addition, our diversification strategy continued to bear fruit as we saw strong growth across our adjacent markets, aftermarket, and international businesses.”

“I am incredibly proud of our team for not only its superior execution during the quarter, but also the quick reaction to adjust to the production halt at most of our OEM customers, as well as many of our facilities across North America and Europe. As the world changed before our eyes, we took the crucial steps to protect the health and safety of our team members and implement cost management initiatives in an effort to help mitigate long-term impacts to the business.”

“The long-term fundamentals of our business are strong. Summer travel plans are being significantly altered for most consumers as air travel, cruise ships, and hotels are likely going to be less popular, at least in the near term. As a result, the outdoor recreational products business is expected to accelerate. RVs and boats provide attractive alternatives to vacation more safely as families are eager to get out of the house. At the same time, RVing and boating offer a great solution to social distancing for families that want to travel the country and experience the great outdoors. In this new normal, our strong competitive position and innovative products have supported better-than-expected results for April as well as OEM orders already received for May.”

“In the near-term, we remain focused on navigating the current environment, advancing our diversification strategy, successfully integrating our latest acquisitions, and maintaining our investment in R&D. We feel confident we have the necessary infrastructure, balance sheet, and leadership to navigate this crisis and emerge a stronger company.”

LCI’s currently expects many OEM customers to resume operations in early May 2020 at reduced capacity to fulfill retail dealer backlog orders. LCI resumed operations to varying degrees at the majority of its facilities on May 4, 2020, to meet the demand requirements of its customers. The current plans are subject to change as the ultimate duration and impact of the COVID-19 outbreak on LCI’s and its customers’ operations is presently unclear. The anticipated increase in sales, along with the significant cost reduction actions taken, are expected to result in positive cash flows for May, offsetting the net cash outflow resulting from production suspensions in April.

LCI industries has over 90 manufacturing and distribution facilities located throughout North America and Europe, and supplies, domestically and internationally, a broad array of components for the leading OEMs in the recreation and transportation product markets, consisting of recreational vehicles and adjacent industries, including buses; trailers used to haul boats, livestock, equipment, and other cargo; trucks; boats; trains; manufactured homes; and modular housing. It also supplies components to the related aftermarkets of these industries.

LCI’s products include steel chassis and related components; axles and suspension solutions; slide-out mechanisms and solutions; thermoformed bath, kitchen, and other products; vinyl, aluminum, and frameless windows; manual, electric, and hydraulic stabilizer and leveling systems; entry, luggage, patio, and ramp doors; furniture and mattresses; electric and manual entry steps; awnings and awning accessories; towing products; truck accessories; electronic components; and other accessories.

Additional information about LCI and its products can be found at www.lci1.com.