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 reported second quarter 2022 results.
Consolidated net sales for the second quarter of 2022 were $1.5 billion, an increase of 40 percent from 2021 second quarter net sales of $1.1 billion. Net income in the second quarter of 2022 was $154.5 million, or $6.06 per diluted share, compared to net income of $67.9 million, or $2.67 per diluted share, in the second quarter of 2021. EBITDA in the second quarter of 2022 was $250.7 million, compared to EBITDA of $120.7 million in the second quarter of 2021.
The increase in year-over-year net sales for the second quarter of 2022 was primarily driven by price realization, market share gains, acquisitions, and increased wholesale shipments. Net sales from acquisitions completed in the twelve months ended June 30, 2022 contributed approximately $81 million in the second quarter of 2022.
The Company’s average product content per travel trailer and fifth-wheel RV for the twelve months ended June 30, 2022, increased $1,761 to $5,382, compared to $3,621 for the twelve months ended June 30, 2021. The content increase in towables was primarily a result of organic growth, including pricing and new product introductions, market share gains, and acquisitions.
“We continued to execute on strategic priorities to deliver strong results in the second quarter, highlighted by robust revenue and EBITDA growth as we navigate a challenging operating environment. Our culture of innovation and operational excellence has supported our expansion in the Aftermarket, Marine, and RV OEM markets while assisting us to meet consumer demand for quality, technologically sophisticated products,” commented Jason Lippert, LCI Industries’ President and Chief Executive Officer.
“While RV inventories stabilize, we are confident in our ability to keep driving content and market share gains both within and outside RV OEM. The widespread availability of peer-to-peer rentals, along with increasing costs of airfare and hotel lodging, have made camping, boating, and RVing attractive options for vacationing. We believe our diverse portfolio has positioned us for long-term growth as we capture tailwinds related to the ongoing popularity of the outdoor lifestyle,” Lippert continued. “I am proud of the hard work shown by our teams in driving our strong performance to help us generate further shareholder value.”
“I also want to thank our team members for their commitment to delivering best-in-class products to our customers. Through these efforts, we continue to drive profitable growth while solidifying LCI’s position as an industry leader in the range of markets we serve,” commented Ryan Smith, Group President – North America.
Second Quarter 2022 Highlights
- Net sales of $1.5 billion in the second quarter, up 40% year-over-year
- Net income of $154.5 million, or $6.06 per diluted share, in the second quarter, up $86.6 million, or 128%, year-over-year
- EBITDA of $250.7 million, up $130.0 million, or 108%, year-over-year
- Quarterly dividend of $1.05 per share paid totaling $26.7 million in the second quarter
North American RV OEM (57% of net sales last twelve months)
- Net sales of $864.3 million in the second quarter, up 58% year-over-year, driven by wholesale shipments and market share gains
- Content per travel trailer and fifth-wheel RV for the twelve months ended June 30, 2022, increased 49% year-over-year to a record $5,382
North American Adjacent Industries OEM (20% of net sales last twelve months)
- Net sales of $323.7 million in the second quarter, up 39% year-over-year
- North American marine OEM net sales of $132.4 million, up 44% year-over-year
- Content per power boat for the twelve months ended June 30, 2022, increased 71% year-over-year to a record $1,848
North American Aftermarket (16% of net sales last twelve months)
- Net sales of $240.2 million in the second quarter, up 14% year-over-year
International Industries (7% of net sales last twelve months
- Net sales of $107.9 million in the second quarter, up 5% year-over-year