LCI Industries(US:LCII)2024-11-07 15:06Financial Performance - Net income for the three months ended September 30, 2024, was $35,612,000, compared to $25,887,000 for the same period in 2023, representing a 37% increase[9] - Total comprehensive income for the nine months ended September 30, 2024, was $138,636,000, up from $66,440,000 in 2023, reflecting a 108% increase[9] - Net income for the quarter ending September 30, 2023, was $25,887,000, compared to $33,426,000 for the previous quarter[17] - Net income for the quarter ending June 30, 2024, was $35,612,000, showing a positive trend in earnings[19] - Net income for Q3 2024 was $35.6 million, or $1.39 per diluted share, up from $25.9 million, or $1.02 per diluted share in Q3 2023[98] Assets and Liabilities - Total assets as of September 30, 2024, amounted to $3,024,964,000, compared to $2,959,319,000 at the end of 2023, indicating a growth of 2.2%[11] - Current liabilities totaled $431,974,000 as of September 30, 2024, compared to $394,992,000 at the end of 2023, reflecting an increase of 9.4%[11] - Long-term indebtedness decreased to $822,322,000 as of September 30, 2024, from $846,834,000 at the end of 2023, a reduction of 2.9%[11] - Total current assets increased to $1,244,873,000 as of September 30, 2024, from $1,116,870,000 at December 31, 2023, reflecting an increase of 11.5%[11] - The company’s retained earnings increased to $1,228,454,000 as of September 30, 2024, up from $1,177,034,000 at the end of 2023, representing a growth of 4.4%[11] Cash Flow and Dividends - Net cash flows provided by operating activities for the nine months ended September 30, 2024, were $263,688,000, compared to $389,263,000 in 2023, showing a decrease of 32%[14] - The company paid dividends totaling $80,191,000 during the nine months ended September 30, 2024, compared to $79,744,000 in the same period of 2023, indicating a slight increase of 0.6%[14] - Cash dividends paid were $1.05 per share, totaling $26,590,000 for the quarter ending June 30, 2023[17] - The company declared total dividends of $80.191 million for the year 2024, with a quarterly dividend of $1.05 per share[65] Inventory and Fixed Assets - As of September 30, 2024, the company reported total inventories of $705.4 million, a decrease from $768.4 million as of December 31, 2023, reflecting a reduction of approximately 8.2%[39] - The company’s net fixed assets decreased to $443.3 million as of September 30, 2024, down from $465.8 million at the end of 2023, indicating a decline of approximately 4.8%[41] - The company recorded inventory obsolescence reserves of $77.4 million as of September 30, 2024, an increase from $71.3 million at the end of 2023, representing an increase of approximately 8.6%[39] Segment Performance - The OEM Segment accounted for 76% of consolidated net sales for the nine months ended September 30, 2024, with net sales of $2,238,897,000, compared to $2,245,648,000 in 2023[71] - Operating profit for the OEM Segment for the three months ended September 30, 2024, was $21,825,000, up from $11,165,000 in 2023[76] - Operating profit for the Aftermarket Segment for the three months ended September 30, 2024, was $32,063,000, down from $34,425,000 in 2023[76] - Aftermarket Segment net sales for Q3 2024 were $231.0 million, a marginal increase from $230.8 million in Q3 2023[112] Market Conditions and Risks - The company continues to face risks from economic conditions, including inflation and interest rate fluctuations, which may impact future performance[26] - Retail demand for travel trailers and fifth-wheel RVs decreased by 9% in the first nine months of 2024 compared to the same period in 2023, primarily due to inflation and elevated interest rates[91] - Future cost increases of raw materials may not be fully passed on to customers, impacting profitability[144] Compliance and Financial Management - The company has a $600 million revolving credit facility, with $383.1 million available under the facility as of September 30, 2024, reflecting compliance with financial covenants[47] - The company maintained compliance with all financial covenants as of September 30, 2024, ensuring adequate financing for anticipated cash requirements for the next twelve months[47] - The company is in compliance with all financial covenants of its Credit Agreement as of September 30, 2024[129] Acquisitions and Investments - The company acquired the furniture operations of CWDS, LLC for a cash consideration of $20.0 million, with an additional holdback payment of $1.0 million due on the first anniversary of the acquisition[34] - The company prepaid $37.5 million of principal on the Term Loan during 2023 and an additional $25 million during 2024, fully covering scheduled principal amortization payments due through December 31, 2025[45] - Cash flows used in investing activities were $50.6 million in the first nine months of 2024, including $31.4 million for capital expenditures and $20.0 million for business acquisition[124]