07/08/2019

7 August 2019
7 August 2019, Comments Comments Off on LCI Industries reports second quarter results
LCI Industries reports second quarter results

LCI Industries, the supplier of components to OEMs in the global RV, marine and leisure markets, has reported second quarter 2019 results. These show consolidated net sales for the second quarter of 2019 of $629.1 million, a decline of eight percent from the same period in 2018. This is due to a reduction in RV wholesale shipments. Net income in the second quarter of 2019 was $47.5 million, compared to net income of $47.2 million in the second quarter of 2018.

“In the second quarter, we delivered solid performance led by growth in Aftermarket, as well as sequential margin expansion driven by market share gains, operational efficiencies, and material cost improvements. While the North American RV market remains challenging, our diversification strategy continues to generate solid momentum. As of June 30th, our adjacent, aftermarket, and international sales comprised over 40 percent of our last twelve-month sales, which was supported by 29 percent growth in domestic Aftermarket sales over the first quarter and 13 percent year-over-year. In addition, our Aftermarket Segment operating margin has expanded to 17.1 percent in the second quarter and 14.9 percent year-to-date. We also benefited from the implementation of initiatives to enhance our manufacturing efficiencies through several continuous improvement, lean, and automation projects, which drove lower labor costs for the quarter and enhanced margins,” said LCI Industries’ Chief Executive Officer, Jason Lippert.

“Supplementing our investments in innovation, content growth, and market share gains, we also announced two exciting transactions during the quarter, Lewmar Marine and Lavet, which will further enhance our offerings to the marine and the international RV market, respectively. As we look to the back half of 2019, while the domestic RV market will remain somewhat pressured, we believe we have the opportunity to further drive value for our shareholders through a continued focus on diversifying our business as we remain committed to core industry leadership, innovation, and growth into new markets,” added Jason Lippert.

Consolidated net sales for the second quarter of 2019 were $629.1 million, a decline of eight percent from 2018 second quarter net sales of $684.5 million. Net income in the second quarter of 2019 was $47.5 million, or $1.89 per diluted share, compared to net income of $47.2 million, or $1.86 per diluted share, in the second quarter of 2018.

The decrease in year-over-year net sales for the second quarter of 2019 reflects lower RV wholesale shipments as dealers normalize their inventory levels which we believe to be in the final stages of correction, offset by continued growth in the Company’s aftermarket and international markets.

Net sales from acquisitions completed by the Company over the twelve months ended June 30, 2019, contributed $8.6 million in the second quarter of 2019.

The Company’s content per travel trailer and fifth-wheel RV for the twelve months ended June 30, 2019, increased $74 to $3,486, compared to the twelve months ended June 30, 2018, of $3,412. The Company’s content per motorhome RV for the twelve months ended June 30, 2019, increased $30 to $2,468, compared to the twelve months ended June 30, 2018, of $2,438. The content increases are a result of organic growth, including new product introductions and price increases, as well as acquisitions.

July 2019 consolidated net sales for LCI Industries were approximately $181 million, down five percent from July 2018. Sales continue to be impacted by reduced production rates by the RV OEMs.

LCI Industries, which includes subsidiaries such as Lippert Components, generated cash flow from operations of $180.1 million and invested $35.8 million in capital expenditures as well as $31.3 million for dividend payments to shareholders for the six months ended June 30, 2019. The Company’s outstanding debt was $245.3 million at June 30, 2019.