10/02/2021

10 February 2021
10 February 2021, Comments Comments Off on Record sales reported by Lippert Components in fourth quarter and full year of 2020
Record sales reported by Lippert Components in fourth quarter and full year of 2020

LCI Industries, through its wholly-owned subsidiary, Lippert Components, Inc. (“LCI”), has reported record sales and earnings in the fourth quarter and full year 2020 results, driven by RV demand and its diversification strategy. This includes North American RV OEM sales of $402.9 million in the fourth quarter, up 25 percent year-over-year.

Net sales in the fourth quarter 2020 increased by 39 percent year-over-year to $783 million, and a total of $2.8 billion for the full year – an increase of 18 percent over the previous year.

The fourth quarter 2020 highlights include: net sales of $783.0 million in the fourth quarter, an increase of 39 percent year-over-year; net income increased $19.9 million, or 69 percent, to $48.7 million, or $1.92 per diluted share, in the fourth quarter; adjusted EBITDA increased $30.9 million, or 54 percent, to $88.1 million in the fourth quarter.

North American RV OEM sales grew to $402.9 million in the fourth quarter, up 25 percent year-over-year, while adjacent industries OEM sales grew to $189.9 million in the fourth quarter, up 20 percent year-over-year; aftermarket Segment sales grew to $157.3 million in the fourth quarter, up 129 percent year-over-year.

In the fourth quarter of 2020, LCI also completed the acquisitions of Veada Industries and Challenger Door, each with $80 million of annual sales.

Full Year 2020 Highlights include: net sales of $2.8 billion, an increase of 18 percent year-over-year; net income increased $11.9 million, or 8 percent, to $158.4 million, or $6.27 per diluted share; adjusted EBITDA increased $52.6 million, or 19 percent, to $328.2 million.

Execution of diversification strategy continued as net sales outside of North American RV OEM net sales grew to 50.3% of total net sales for the year ended December 31, 2020, compared to 42.0% in the prior year.

In 2020, LCI completed three strategic acquisitions for combined purchase price of $182.1 million. The company returned $70.4 million to shareholders through payment of dividends.

“2020 proved to be a historic year for LCI Industries in many respects, starting with our response to the COVID-19 pandemic and related shutdowns, and culminating with record annual net sales of $2.8 billion. This could not have been possible without the tremendous efforts of our team. They successfully navigated an unprecedented economic environment to capture incredible industry demand, while also working to mitigate supply chain and labor constraints that have impacted the wider RV and marine space. Our team marched right into the storm, led by an experienced leadership team, which has proven time and again that they can pivot quickly – even in times of global crisis – to position LCI Industries to emerge stronger and ready for growth. This outperformance is a testament to the strong, cohesive culture which we continue to foster throughout our Company, and I am thankful for each and every one of our teammates across the globe,” commented Jason Lippert, LCI Industries’ President and Chief Executive Officer.

“Furthermore, our focus on operational excellence and commitment to innovation enabled strong organic growth during the year, and importantly, we continued to execute on our diversification strategy, expanding further into the marine and adjacent industries through the acquisitions of Challenger Door and Veada Industries to further establish LCI Industries as an industry leader,” continued Lippert. “We believe that retail tailwinds, which supported our growth in 2020, will remain elevated well into 2021 and beyond. Strong demand for recreational products continues, bolstered by expanded accessibility from popular services like peer-to-peer rentals and remote work and school, along with the significant reduction in air travel, all of which draw more consumers into the outdoor lifestyle. I would like to again thank all of our team for their hard work as we look to maintain this momentum, accelerate growth and deliver value to our customers, shareholders, team members, and communities in the new year.”

The increase in year-over-year net sales for the fourth quarter of 2020 was primarily driven by record RV retail demand, in addition to the impact of acquisitions and organic growth across the Company’s aftermarket segment and international markets. Net sales from acquisitions completed in 2019 and 2020 contributed approximately $73 million in the fourth quarter of 2020.

The Company’s average product content per travel trailer and fifth-wheel RV, adjusted to remove Furrion sales from prior periods, for the twelve months ended December 31, 2020, increased $44 to $3,390, compared to $3,346 for the twelve months ended December 31, 2019. The content increase in towables was a result of organic growth, including new product introductions.

The increase in year-over-year net sales for the full year 2020 was primarily driven by the impact of acquisitions, organic growth in the Company’s aftermarket segment, and record RV retail demand following COVID-19 shutdowns in the first half of the year. Net sales from acquisitions completed in 2019 and 2020 contributed approximately $375 million in 2020.

January 2021 consolidated net sales were approximately $309 million, up 38 percent fromJanuary 2020, as the significant increase in RV production continued into the new year to meet elevated RV retail demand. While the supply chain continues to have challenges, major issues were addressed through the course of 2020 and we are encouraged by the fact that we saw OEMs reduce downtime due to supply chain related issues in January.

At December 31, 2020, the Company’s cash and cash equivalents balance was $51.8 million, up from $35.4 million at December 31, 2019. The Company generated net cash flows from operations of $231.4 million and used $182.1 million for acquisitions, $70.4 million for dividend payments to shareholders, and $57.3 million for capital expenditures in the twelve months ended December 31, 2020. The Company’s outstanding long-term indebtedness, including current maturities, was $738.2 million at December 31, 2020, and the Company remained in compliance with its debt covenants. The Company believes that its current liquidity is adequate to meet operating needs for the foreseeable future.

LCI supplies a broad array of highly engineered components for the leading original equipment manufacturers (“OEMs”) in the recreation and transportation product markets, and the related aftermarkets of those 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.