LCI Industries(US:LCII)2024-08-06 15:07Financial Performance - Net income for the three months ended June 30, 2024, was $61,163,000, a 83% increase from $33,426,000 in the same period of 2023[8] - Total comprehensive income for the six months ended June 30, 2024, was $92,642,000, compared to $43,548,000 for the same period in 2023, reflecting a 112% increase[8] - Net income for the six months ended June 30, 2024, was $97.7 million, a substantial increase from $40.7 million in the same period of 2023, representing a growth of approximately 140%[8] - Consolidated net sales for Q2 2024 increased by 3.9% to $1.1 billion, compared to $1.0 billion in the same period of 2023[90] - Net income for Q2 2024 was $61.2 million, or $2.40 per diluted share, compared to $33.4 million, or $1.31 per diluted share, for the same period of 2023[90] Cash and Liquidity - Cash and cash equivalents increased to $130,418,000 as of June 30, 2024, up from $66,157,000 at the end of 2023, representing a 97% increase[10] - The Company has a $600.0 million revolving credit facility, with $373.1 million available as of June 30, 2024[45] - Cash flows used in financing activities for the first six months of 2024 were $79.1 million, compared to $243.3 million in the same period of 2023, indicating a significant decrease[116] - As of June 30, 2024, the company had $130.4 million in cash and cash equivalents, and $373.1 million available under its revolving credit facility[109] Assets and Liabilities - Total assets reached $3,011,979,000 as of June 30, 2024, up from $2,959,319,000 at the end of 2023, marking a 1.8% increase[10] - Total liabilities increased slightly to $1,617,566,000 from $1,604,283,000, a 0.8% rise[10] - Long-term indebtedness decreased to $829,188,000 as of June 30, 2024, from $846,834,000 at December 31, 2023, a reduction of 2.1%[10] Stockholder Equity and Dividends - Total stockholders' equity increased to $1,394,413,000 from $1,355,036,000, a rise of 2.9%[10] - The Company declared total dividends of $53.455 million for the first half of 2024, maintaining a dividend per share of $1.05[62] - Cash dividends paid were $26,734,000, maintaining a dividend of $1.05 per share[18] Segment Performance - The OEM Segment accounted for 77% of consolidated net sales for the six months ended June 30, 2024, with net sales of $1,554.4 million, compared to $1,517.2 million in the same period of 2023[67][71] - The Aftermarket Segment contributed 23% to consolidated net sales, generating $468.1 million for the six months ended June 30, 2024, slightly down from $470.8 million in 2023[68][71] - Operating profit for the OEM Segment was $83.4 million for the six months ended June 30, 2024, compared to $17.9 million in the same period of 2023, indicating significant growth[72] - The Aftermarket Segment's operating profit increased to $64.8 million for the six months ended June 30, 2024, up from $57.3 million in 2023[72] Inventory and Capital Expenditures - Total inventories decreased to $687.870 million as of June 30, 2024, down from $768.407 million at the end of 2023, indicating a reduction of approximately 10.5%[37] - Capital expenditures in the first six months of 2024 were $21.3 million, with total cash flows used in investing activities amounting to $40.7 million[114] Operational Insights - The company operates over 110 manufacturing and distribution facilities across North America and Europe as of June 30, 2024[20] - Approximately 57% of net sales for the three months ended June 30, 2024, were generated outside the North American RV OEM market, indicating a diversification strategy[79] - The company continues to supply a broad array of engineered components for the recreation and transportation markets, including RVs, boats, and trailers[77] Market Conditions and Risks - Retail demand for travel trailers and fifth-wheel RVs decreased by 11% in the first six months of 2024 compared to the same period in 2023, primarily due to inflation and elevated interest rates[84] - Forward-looking statements indicate potential risks including commodity price fluctuations and market demand, which could impact future financial performance[126] Compliance and Governance - The Company maintained compliance with all financial covenants as of June 30, 2024, ensuring adherence to its credit agreement[117] - The company is evaluating the impact of new accounting standards effective after December 15, 2023, which may affect segment reporting and income tax disclosures[27][28]