24/02/2023

24 February 2023
24 February 2023, Comments Comments Off on LCI Industries reports fourth quarter and full year financial results
LCI Industries reports fourth quarter and full year financial results

LCI Industries which, through its wholly-owned subsidiary, Lippert Components, supplies a broad array of highly engineered components for the leading original equipment manufacturers in the recreation and transportation product markets, and the related aftermarkets of those industries, has reported fourth quarter and full year 2022 results.

“In fiscal 2022, we achieved record net sales while expanding margins, a testament to our experienced leadership team, enhanced operations, and flexible cost structure. Though we faced headwinds, primarily in the fourth quarter as OEMs implemented production shutdowns, the diversification of our businesses and actions to flex staffing helped mitigate the impact on earnings. We expect these efforts will limit margin pressure as we move through 2023, but we did incur severance-related and inventory reserve costs in the fourth quarter. Despite persistent macro-economic headwinds, we remain confident for the future as millions of campers continue to enjoy the outdoor lifestyle,” commented Jason Lippert, LCI Industries’ President and Chief Executive Officer.

“Our team’s deep industry knowledge and experience navigating fluctuating production schedules will guide us in 2023, during which we anticipate production levels will normalize. Although we expect strong organic growth within RV, we believe this down cycle will be different than the last as our marine, adjacent and aftermarket markets continue to support our diversification strategy,” Lippert continued. “I would like to thank all our Lippert team members for the hard work and dedication they showed throughout the year, driving our business forward. I am excited for the growth opportunities ahead, as we leverage our culture and innovations to deliver value for our customers and shareholders.”

“I also want to thank our teams for their role in delivering incredible progress for Lippert throughout 2022. We look forward to the year to come as we continue to drive operational efficiencies, cultural initiatives, and innovation to facilitate Lippert’s performance into the future,” commented Ryan Smith, Group President – North America.

Full Year 2022 Results

Consolidated net sales for the full year 2022 were $5.2 billion, an increase of 16% from full year 2021 net sales of $4.5 billion. Net income for the full year 2022 was $395.0 million, or $15.48 per diluted share, compared to net income of $287.7 million, or $11.32 per diluted share, for the full year 2021. EBITDA for the year ended December 31, 2022 was $682.2 million, compared to EBITDA of $510.7 million for the year ended December 31, 2021.

The increase in year-over-year net sales for the full year 2022 was primarily driven by price realization, acquisitions, and an increase in net sales to OEMs in adjacent industries, partially offset by decreased North American RV wholesale shipments. Net sales from acquisitions completed in 2021 and 2022 contributed approximately $219 million in 2022.

Fourth Quarter 2022 Results

Consolidated net sales for the fourth quarter of 2022 were $894.3 million, a decrease of 26 percent from 2021 fourth quarter net sales of $1.2 billion. Net loss in the fourth quarter of 2022 was $17.1 million, or $(0.68) per diluted share, compared to net income of $82.3 million, or $3.22 per diluted share, in the fourth quarter of 2021. EBITDA in the fourth quarter of 2022 was $10.2 million, compared to EBITDA of $146.1 million in the fourth quarter of 2021.

The decrease in year-over-year net sales for the fourth quarter of 2022 was primarily driven by decreased North American RV wholesale shipments, partially offset by price realization, acquisitions, and an increase in net sales to OEMs in adjacent industries. Net sales from acquisitions completed in the twelve months ended December 31, 2022 contributed approximately $21 million in the fourth quarter of 2022.

The Company’s average product content per travel trailer and fifth-wheel RV for the twelve months ended December 31, 2022, increased $1,893 to $6,090, compared to $4,197 for the twelve months ended December 31, 2021. The content increase in towables was primarily a result of organic growth, including pricing and new product introductions, market share gains, and acquisitions.

January 2023 Results

January 2023 consolidated net sales were approximately $273 million, down 48 percent from January 2022, primarily due to an approximate 80 percent decline North American RV production compared to January 2022. January 2023 results were favorably impacted by our diversification efforts outside of the North American RV market, which made up 69 percent of January 2023 consolidated net sales.