Strong operational improvements drove a
meaningful increase in profitability across diverse end markets
Fourth Quarter 2024 Highlights
- Net sales of $803 million in the fourth quarter, down 4%
year-over-year
- Net income of $9.5 million, or $0.37 per diluted share, in the
fourth quarter, up from a net loss of $2.4 million in the fourth
quarter of 2023
- EBITDA of $46 million in the fourth quarter, or 5.7% of net
sales, up 29% year-over-year
- Increased quarterly dividend to $1.15 per share, totaling $29
million paid in the fourth quarter
Full Year 2024 Highlights
- Net sales of $3.7 billion, down 1% year-over-year
- Net income of $143 million, or $5.60 per diluted share, up 123%
year-over-year
- EBITDA of $344 million, or 9.2% of net sales, up 35%
year-over-year
- Operating profit margin of 5.8% in 2024, up from 3.3% in
2023
- Cash flows from operating activities of $370 million
- Net repayments of indebtedness of $89 million
- Returned $109 million to shareholders through quarterly
dividends in 2024
- Strong liquidity position with $166 million of cash and cash
equivalents and $453 million of availability on revolving credit
facility at December 31, 2024
- Introduced groundbreaking innovation with our Touring Coil
Suspension product
LCI Industries (NYSE: LCII), a leading supplier of engineered
components to the recreation and transportation markets, today
reported fourth quarter and full year 2024 results.
“Lippert demonstrated continued market leadership and resilience
in 2024, leveraging cost savings and operational improvements to
increase EBITDA by $89 million over 2023. This performance came
despite a challenging RV and marine industry backdrop, as
meaningful investments toward innovations like our Touring Coil
Suspension, anti-lock braking systems, our Chill Cube revolutionary
RV air conditioning system, and our new RV window series fueled
content expansion and further market share gains. Our diversified
end markets—particularly our Aftermarket segment—helped us navigate
volatility by expanding growth opportunities and bolstering
profitability. Our Aftermarket business also continues to benefit
from a growing presence within Camping World stores, as we achieved
revenue growth of $12 million within the 14 newly upfitted
locations against an environment that was declining only a year
ago,” commented Jason Lippert, LCI Industries’ President and Chief
Executive Officer.
“As we enter 2025, we are focused on continuing to expand
profitability and remain committed to achieving further cost
savings in addition to the significant strides made in 2024. We’re
also seeing modest improvement in the RV market, with consolidated
January sales up 6% year-over-year along with growing optimism from
customers," Mr. Lippert continued. "Overall, not only is Lippert
well positioned to capitalize on an industry recovery due to our
operational flexibility and agility, but we have the playbook
required to further expand business in our other end markets,
including aftermarket, building products, transportation, and
utility trailers. We believe these factors, along with our
experienced leadership team and numerous competitive advantages,
will enable us to achieve our target of $5 billion in net sales
organically by 2027 as well as a return to double digit operating
margins.”
“Thanks to the dedication of our experienced leadership team and
team members, along with our focus on safety, quality, and customer
service, we strengthened our leadership position within the
recreation space in 2024. As we enter 2025, we remain committed to
creating value for all stakeholders through disciplined execution
and strategic growth initiatives,” commented Ryan Smith, LCI
Industries' Group President - North America.
Fourth Quarter 2024 Results
Consolidated net sales for the fourth quarter of 2024 were
$803.1 million, a decrease of 4% from 2023 fourth quarter net sales
of $837.5 million. Net income in the fourth quarter of 2024 was
$9.5 million, or $0.37 per diluted share, compared to a net loss of
$2.4 million, or $(0.09) per diluted share, in the fourth quarter
of 2023. EBITDA in the fourth quarter of 2024 was $45.8 million,
compared to EBITDA of $35.6 million in the fourth quarter of 2023.
Additional information regarding EBITDA, as well as reconciliations
of this non-GAAP financial measure to the most directly comparable
GAAP financial measure of net income (loss), is provided in the
"Supplementary Information - Reconciliation of Non-GAAP Measures"
section below.
The decrease in year-over-year net sales for the fourth quarter
of 2024 was primarily driven by lower sales to North American
marine and utility trailer OEMs, declines in wholesale shipments of
motorhome RV units and an increased shift in unit mix towards lower
content single axle travel trailers, partially offset by increased
North American RV wholesale shipments of travel trailers and
fifth-wheels and market share gains in the automotive
aftermarket.
Full Year 2024 Results
Consolidated net sales for the full year 2024 were $3.7 billion,
a decrease of 1% from full year 2023 net sales of $3.8 billion. Net
income for the full year 2024 was $142.9 million, or $5.60 per
diluted share, compared to net income of $64.2 million, or $2.52
per diluted share, for the full year 2023. EBITDA for the year
ended December 31, 2024 was $343.9 million, compared to EBITDA of
$255.2 million for the year ended December 31, 2023. Additional
information regarding EBITDA, as well as reconciliations of this
non-GAAP financial measure to the most directly comparable GAAP
financial measure of net income (loss), is provided in the
"Supplementary Information - Reconciliation of Non-GAAP Measures"
section below.
The decrease in year-over-year net sales was primarily driven by
decreased industry production levels in the North American marine,
utility trailer, and European RV markets and an increased shift in
RV unit mix towards lower content single axle travel trailers,
partially offset by a 7% increase in total North American RV
wholesale shipments and sales from acquisitions. Net sales from
acquisitions completed in 2023 and 2024 contributed approximately
$21.4 million in 2024.
January 2025 Results
January 2025 consolidated net sales were approximately $328
million, up 6% from January 2024, primarily due to increases in RV
OEM sales of 17% and aftermarket sales of 6%, partially offset by
softness in international and other adjacent markets.
OEM Segment - Fourth Quarter Performance
OEM net sales for the fourth quarter of 2024 were $621.6
million, a decrease of $36.5 million compared to the same period of
2023. RV OEM net sales for the fourth quarter of 2024 were $376.1
million, down 3% compared to the same prior year period, primarily
driven by a 21% decrease in motorhome wholesale shipments and a
shift in RV unit mix towards lower content single axle travel
trailers, partially offset by a 7% increase in North American
travel trailer and fifth-wheel wholesale shipments and market share
gains. Adjacent Industries OEM net sales for the fourth quarter of
2024 were $245.5 million, down 9% year-over-year, primarily due to
lower sales to North American marine and utility trailers OEMs.
This decline was driven by current dealer inventory levels,
inflation, and elevated interest rates impacting retail consumers.
North American marine OEM net sales in the fourth quarter of 2024
were $55.1 million, down 15% year-over-year.
Operating profit of the OEM Segment was $1.9 million in the
fourth quarter of 2024, or 0.3% of net sales, compared to an
operating loss of $11.7 million, or (1.8)% of net sales, in the
same period in 2023. The operating profit expansion of the OEM
Segment for the quarter was primarily driven by operational
improvements, partially offset by the impact of fixed costs spread
over decreased sales.
Aftermarket Segment - Fourth Quarter Performance
Aftermarket net sales for the fourth quarter of 2024 were $181.6
million, an increase of 1% compared to the same period of 2023.
Resiliency in the Aftermarket Segment was primarily driven by
market share gains in the automotive aftermarket, partially offset
by lower volumes within the marine aftermarket. Operating profit of
the Aftermarket Segment was $14.3 million in the fourth quarter of
2024, or 7.9% of net sales, in line with the same period of 2023.
The operating profit margin of the Aftermarket Segment for the
quarter was impacted by increased labor costs due to product mix
and increased facility costs resulting from investments to expand
capacity within the automotive aftermarket, partially offset by
decreased material costs.
“Our automotive aftermarket business has consistently
outperformed, achieving a 7% increase in sales in the full year
2024 that has helped offset softness in the RV and marine
aftermarkets," commented Jamie Schnur, LCI Industries’ Group
President – Aftermarket. "This growth was further fueled by
Lippert’s increasing content on RVs, which drives demand for our
replacement and repair parts. By continuing to differentiate
ourselves through high-quality product offerings and exceptional
service, we are building further trust with both dealers and
consumers. Moving forward, we remain focused on expanding our
presence in premium markets to support Lippert’s long-term,
profitable growth.”
Income Taxes
The Company's effective tax rate was 24.5% and 13.5% for the
year and quarter ended December 31, 2024, respectively, compared to
22.7% and 65.2% for the year and quarter ended December 31, 2023,
respectively. The increase in the effective tax rate for the full
year 2024 compared to 2023 was primarily due to an increase in the
state tax rate. Due to certain operating losses in the fourth
quarter of 2023, discrete adjustments related to an increase in
life insurance contract assets had a proportionately larger impact
on the tax rate in that period.
Balance Sheet and Other Items
At December 31, 2024, the Company's cash and cash equivalents
balance was $165.8 million, compared to $66.2 million at December
31, 2023. The Company used $109.5 million for dividend payments to
shareholders, $89.2 million for the repayment of debt (net of
borrowings), $42.3 million for capital expenditures, and $20.0
million for an acquisition in the twelve months ended December 31,
2024.
The Company's outstanding long-term indebtedness, including
current maturities, was $757.3 million at December 31, 2024, and
the Company was in compliance with its debt covenants. As of
December 31, 2024, the Company had $452.5 million of borrowing
availability under the revolving credit facility.
Conference Call & Webcast
LCI Industries will host a conference call to discuss its fourth
quarter results on Tuesday, February 11, 2025, at 8:30 a.m. Eastern
time, which may be accessed by dialing (833) 470-1428 for
participants in the U.S. and (929) 526-1599 for participants
outside the U.S. using the required conference ID 823178. Due to
the high volume of companies reporting earnings at this time,
please be prepared for hold times of up to 15 minutes when dialing
in to the call. In addition, an online, real-time webcast, as well
as a supplemental earnings presentation, can be accessed on the
Company's website, www.investors.lci1.com.
A replay of the conference call will be available for two weeks
by dialing (866) 813-9403 for participants in the U.S. and (44)
204-525-0658 for participants outside the U.S. and referencing
access code 151640. A replay of the webcast will be available on
the Company’s website immediately following the conclusion of the
call.
About LCI Industries
LCI Industries (NYSE: LCII), through its Lippert subsidiary, is
a global leader in supplying engineered components to the outdoor
recreation and transportation markets. We believe our innovative
culture, advanced manufacturing capabilities, and dedication to
enhancing the customer experience have established Lippert as a
reliable partner for both OEM and aftermarket customers. For more
information, visit www.lippert.com.
Forward-Looking Statements
This press release contains certain "forward-looking statements"
with respect to our financial condition, results of operations,
profitability, margins, business strategies, operating efficiencies
or synergies, competitive position, growth opportunities,
acquisitions, plans and objectives of management, markets for the
Company's common stock, the impact of legal proceedings, and other
matters. Statements in this press release that are not historical
facts are "forward-looking statements" for the purpose of the safe
harbor provided by Section 21E of the Securities Exchange Act of
1934, as amended, and Section 27A of the Securities Act of 1933, as
amended, and involve a number of risks and uncertainties.
Forward-looking statements, including, without limitation, those
relating to production levels, future business prospects, net
sales, expenses and income (loss), operating margins, capital
expenditures, tax rate, cash flow, financial condition, liquidity,
covenant compliance, retail and wholesale demand, integration of
acquisitions, R&D investments, commodity prices, addressable
markets, and industry trends, whenever they occur in this press
release are necessarily estimates reflecting the best judgment of
the Company's senior management at the time such statements were
made. There are a number of factors, many of which are beyond the
Company's control, which could cause actual results and events to
differ materially from those described in the forward-looking
statements. These factors include, in addition to other matters
described in this press release, the impacts of future pandemics,
geopolitical tensions, armed conflicts, or natural disasters on the
global economy and on the Company's customers, suppliers,
employees, business and cash flows, pricing pressures due to
domestic and foreign competition, costs and availability of, and
tariffs on, raw materials (particularly steel and aluminum) and
other components, seasonality and cyclicality in the industries to
which we sell our products, availability of credit for financing
the retail and wholesale purchase of products for which we sell our
components, inventory levels of retail dealers and manufacturers,
availability of transportation for products for which we sell our
components, the financial condition of our customers, the financial
condition of retail dealers of products for which we sell our
components, retention and concentration of significant customers,
the costs, pace of and successful integration of acquisitions and
other growth initiatives, availability and costs of production
facilities and labor, team member benefits, team member retention,
realization and impact of expansion plans, efficiency improvements
and cost reductions, the disruption of business resulting from
natural disasters or other unforeseen events, the successful entry
into new markets, the costs of compliance with environmental laws,
laws of foreign jurisdictions in which we operate, other
operational and financial risks related to conducting business
internationally, and increased governmental regulation and
oversight, information technology performance and security, the
ability to protect intellectual property, warranty and product
liability claims or product recalls, interest rates, oil and
gasoline prices, and availability, the impact of international,
national and regional economic conditions and consumer confidence
on the retail sale of products for which we sell our components,
and other risks and uncertainties discussed more fully under the
caption "Risk Factors" in the Company's Annual Report on Form 10-K
for the year ended December 31, 2023, and in the Company's
subsequent filings with the Securities and Exchange Commission.
Readers of this press release are cautioned not to place undue
reliance on these forward-looking statements, since there can be no
assurance that these forward-looking statements will prove to be
accurate. The Company disclaims any obligation or undertaking to
update forward-looking statements to reflect circumstances or
events that occur after the date the forward-looking statements are
made, except as required by law.
LCI INDUSTRIES
OPERATING RESULTS
(unaudited)
Three Months Ended
Twelve Months Ended
December 31,
December 31,
2024
2023
2024
2023
(In thousands, except per share
amounts)
Net sales
$
803,138
$
837,544
$
3,741,208
$
3,784,808
Cost of sales
633,732
676,493
2,861,493
3,008,618
Gross profit
169,406
161,051
879,715
776,190
Selling, general and administrative
expenses
153,272
158,430
661,478
652,762
Operating profit
16,134
2,621
218,237
123,428
Interest expense, net
5,100
9,456
28,899
40,424
Income (loss) before income taxes
11,034
(6,835
)
189,338
83,004
Provision (benefit) for income taxes
1,487
(4,458
)
46,471
18,809
Net income (loss)
$
9,547
$
(2,377
)
$
142,867
$
64,195
Net income (loss) per common share:
Basic
$
0.37
$
(0.09
)
$
5.61
$
2.54
Diluted
$
0.37
$
(0.09
)
$
5.60
$
2.52
Weighted average common shares
outstanding:
Basic
25,481
25,342
25,447
25,305
Diluted
25,599
25,342
25,507
25,436
Depreciation
$
16,482
$
18,719
$
70,393
$
74,693
Amortization
$
13,211
$
14,231
$
55,300
$
57,075
Capital expenditures
$
10,943
$
12,149
$
42,333
$
62,209
LCI INDUSTRIES
SEGMENT RESULTS
(unaudited)
Three Months Ended
Twelve Months Ended
December 31,
December 31,
2024
2023
2024
2023
(In thousands)
Net sales:
OEM Segment:
RV OEMs:
Travel trailers and fifth-wheels
$
328,254
$
325,987
$
1,514,578
$
1,358,853
Motorhomes
47,808
62,952
233,066
269,356
Adjacent Industries OEMs
245,491
269,156
1,112,806
1,275,533
Total OEM Segment net sales
621,553
658,095
2,860,450
2,903,742
Aftermarket Segment:
Total Aftermarket Segment net sales
181,585
179,449
880,758
881,066
Total net sales
$
803,138
$
837,544
$
3,741,208
$
3,784,808
Operating profit (loss):
OEM Segment
$
1,858
$
(11,725
)
$
107,081
$
17,361
Aftermarket Segment
14,276
14,346
111,156
106,067
Total operating profit
$
16,134
$
2,621
$
218,237
$
123,428
Depreciation and amortization:
OEM Segment depreciation
$
12,446
$
14,557
$
53,484
$
58,397
Aftermarket Segment depreciation
4,036
4,162
16,909
16,296
Total depreciation
$
16,482
$
18,719
$
70,393
$
74,693
OEM Segment amortization
$
9,417
$
10,375
$
39,843
$
41,579
Aftermarket Segment amortization
3,794
3,856
15,457
15,496
Total amortization
$
13,211
$
14,231
$
55,300
$
57,075
LCI INDUSTRIES
BALANCE SHEET
INFORMATION
(unaudited)
December 31,
December 31,
2024
2023
(In thousands)
ASSETS
Current assets
Cash and cash equivalents
$
165,756
$
66,157
Accounts receivable, net
199,560
214,707
Inventories, net
736,604
768,407
Prepaid expenses and other current
assets
58,318
67,599
Total current assets
1,160,238
1,116,870
Fixed assets, net
432,728
465,781
Goodwill
585,773
589,550
Other intangible assets, net
392,018
448,759
Operating lease right-of-use assets
224,313
245,388
Other long-term assets
99,669
92,971
Total assets
$
2,894,739
$
2,959,319
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Current maturities of long-term
indebtedness
$
423
$
589
Accounts payable, trade
187,684
183,697
Current portion of operating lease
obligations
38,671
36,269
Accrued expenses and other current
liabilities
185,275
174,437
Total current liabilities
412,053
394,992
Long-term indebtedness
756,830
846,834
Operating lease obligations
199,929
222,680
Deferred taxes
26,110
32,345
Other long-term liabilities
112,931
107,432
Total liabilities
1,507,853
1,604,283
Total stockholders' equity
1,386,886
1,355,036
Total liabilities and stockholders'
equity
$
2,894,739
$
2,959,319
LCI INDUSTRIES
SUMMARY OF CASH FLOWS
(unaudited)
Twelve Months Ended
December 31,
2024
2023
(In thousands)
Cash flows from operating activities:
Net income
$
142,867
$
64,195
Adjustments to reconcile net income to
cash flows provided by operating activities:
Depreciation and amortization
125,693
131,768
Stock-based compensation expense
18,653
18,229
Deferred taxes
(7,073
)
2,067
Other non-cash items
7,209
7,716
Changes in assets and liabilities, net of
acquisitions of businesses:
Accounts receivable, net
13,469
1,594
Inventories, net
46,335
235,347
Prepaid expenses and other assets
4,532
25,954
Accounts payable, trade
3,474
38,737
Accrued expenses and other liabilities
15,125
1,622
Net cash flows provided by operating
activities
370,284
527,229
Cash flows from investing activities:
Capital expenditures
(42,333
)
(62,209
)
Acquisitions of businesses
(19,957
)
(25,851
)
Other investing activities
1,192
4,312
Net cash flows used in investing
activities
(61,098
)
(83,748
)
Cash flows from financing activities:
Vesting of stock-based awards, net of
shares tendered for payment of taxes
(9,159
)
(9,628
)
Proceeds from revolving credit
facility
86,248
248,900
Repayments under revolving credit
facility
(138,752
)
(464,822
)
Repayments under term loan and other
borrowings
(36,655
)
(61,099
)
Payment of dividends
(109,471
)
(106,336
)
Payment of contingent consideration and
holdbacks related to acquisitions
(2
)
(31,857
)
Other financing activities
(430
)
(1,342
)
Net cash flows used in financing
activities
(208,221
)
(426,184
)
Effect of exchange rate changes on cash
and cash equivalents
(1,366
)
1,361
Net increase in cash and cash
equivalents
99,599
18,658
Cash and cash equivalents at beginning of
period
66,157
47,499
Cash and cash equivalents at end of
period
$
165,756
$
66,157
LCI INDUSTRIES
SUPPLEMENTARY
INFORMATION
(unaudited)
Three Months Ended
Twelve Months Ended
December 31,
December 31,
2024
2023
2024
2023
Industry Data(1) (in thousands of
units):
Industry Wholesale Production:
Travel trailer and fifth-wheel RVs
67.7
63.4
291.6
259.1
Motorhome RVs
8.0
10.1
34.9
45.9
Industry Retail Sales:
Travel trailer and fifth-wheel RVs
54.8
53.7
307.0
327.0
Impact on dealer inventories
12.9
9.7
(15.4
)
(67.9
)
Motorhome RVs
7.9
8.0
40.0
45.3
Twelve Months Ended
December 31,
2024
2023
Lippert Content Per Industry Unit
Produced:
Travel trailer and fifth-wheel RV
$
5,097
$
5,058
Motorhome RV
$
3,742
$
3,506
December 31,
2024
2023
Balance Sheet Data (debt availability in
millions):
Remaining availability under the revolving
credit facility (2)
$
452.5
$
245.3
Days sales in accounts receivable, based
on last twelve months
29.9
30.1
Inventory turns, based on last twelve
months
4.0
3.5
2025
Estimated Full Year Data:
Capital expenditures
$50 - $70 million
Depreciation and amortization
$115 - $125 million
Stock-based compensation expense
$18 - $23 million
Annual tax rate
24% - 26%
(1)
Industry wholesale production data for
travel trailer and fifth-wheel RVs and motorhome RVs provided by
the Recreation Vehicle Industry Association. Industry retail sales
data provided by Statistical Surveys, Inc.
(2)
Remaining availability under the revolving
credit facility is subject to covenant restrictions.
LCI INDUSTRIES
SUPPLEMENTARY
INFORMATION
RECONCILIATION OF NON-GAAP
MEASURES
(unaudited)
The following table reconciles net income
to EBITDA and net income as a percentage of net sales to EBITDA as
a percentage of net sales.
Three Months Ended
Twelve Months Ended
December 31,
December 31,
2024
2023
2024
2023
(In thousands)
Net income (loss)
$
9,547
$
(2,377
)
$
142,867
$
64,195
Interest expense, net
5,100
9,456
28,899
40,424
Provision (benefit) for income taxes
1,487
(4,458
)
46,471
18,809
Depreciation expense
16,482
18,719
70,393
74,693
Amortization expense
13,211
14,231
55,300
57,075
EBITDA
$
45,827
$
35,571
$
343,930
$
255,196
Net sales
$
803,138
$
837,544
$
3,741,208
$
3,784,808
Net income (loss) as a percentage of net
sales
1.2
%
(0.3
%)
3.8
%
1.7
%
EBITDA as a percentage of net sales
5.7
%
4.2
%
9.2
%
6.7
%
In addition to reporting financial results in accordance with
U.S. GAAP, the Company has provided the non-GAAP performance
measures of EBITDA and EBITDA as a percentage of net sales to
illustrate and improve comparability of its results from period to
period. EBITDA is defined as net income (loss) before interest
expense, net, provision/benefit for income taxes, depreciation
expense, and amortization expense during the three and twelve month
periods ended December 31, 2024 and 2023. The Company considers
these non-GAAP measures in evaluating and managing the Company's
operations and believes that discussion of results adjusted for
these items is meaningful to investors because it provides a useful
analysis of ongoing underlying operating trends. These measures are
not in accordance with, nor are they substitutes for, GAAP
measures, and they may not be comparable to similarly titled
measures used by other companies.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250211491989/en/
Lillian D. Etzkorn, CFO Phone: (574) 535-1125 E
Mail: LCII@lci1.com
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