LCI Industries(LCII) - 2025 Q1 - Quarterly Results

Financial & Operational Highlights LCI Industries reported strong Q1 2025 results, with revenue up 8% to $1.046 billion and net income up 35% to $49.4 million, driven by operational efficiency and strategic growth Q1 2025 Key Financial Metrics | Metric | Q1 2025 | YoY Change | | :--- | :--- | :--- | | Net Sales | $1 billion | +8% | | Net Income | $49.4 million | +35% | | Diluted EPS | $1.94 | +35% | | Adjusted Net Income | $55.6 million | +52% | | Adjusted Diluted EPS | $2.19 | +52% | | Adjusted EBITDA | $110.9 million | +23% | | Operating Profit Margin | 7.8% | +180 bps | | Operating Cash Flow | $43 million | +$50 million | - Returned $57.6 million to shareholders through $28.3 million in share repurchases and $29.4 million in dividends[4] - Completed strategic acquisitions of Trans/Air and Freedman Seating, strengthening its position in the bus and specialty vehicle markets with combined recent annual revenues of approximately $200 million[4] - Successfully refinanced long-term debt, extending most maturities to 2030 and 2032, and ended the quarter with a strong liquidity position of $231 million in cash and $595 million available on its revolving credit facility[4] Consolidated Financial Performance Consolidated net sales for Q1 2025 grew 8% to $1.046 billion, driven by the OEM Segment, with net income significantly increasing Q1 2025 Consolidated Results vs. Q1 2024 (in millions, except EPS) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Sales | $1,045.6 | $968.0 | | Net Income | $49.4 | $36.5 | | Diluted EPS | $1.94 | $1.44 | | Adjusted Net Income | $55.6 | $36.5 | | Adjusted Diluted EPS | $2.19 | $1.44 | | Adjusted EBITDA | $110.9 | $90.3 | - The increase in year-over-year net sales was primarily driven by a $65.2 million increase in the OEM Segment[7] - Preliminary consolidated net sales for April 2025 were approximately $392 million, up 3% from April 2024, led by growth in Adjacent Industries OEM and RV OEM sales[8] Segment Performance The OEM segment's net sales increased by $65.2 million with improved operating margin, while Aftermarket sales grew 6% but experienced a margin decline OEM Segment OEM Segment Net Sales - Q1 2025 vs Q1 2024 (in millions) | Category | Q1 2025 | Q1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | RV OEM | $530.8 | $459.6 | +15% | | Adjacent Industries OEM | $292.8 | $298.7 | -2% | | Total OEM Net Sales | $823.6 | $758.3 | +8.6% | - RV OEM sales growth was driven by an 18% increase in North American travel trailer and fifth-wheel wholesale shipments, while Adjacent Industries sales declined due to lower demand from marine and powersports OEMs[9] - The OEM segment's operating profit margin expanded significantly to 7.5% from 4.3% in Q1 2024, driven by higher sales volume, lower material costs, and improved labor efficiencies[10] Aftermarket Segment Aftermarket Segment Performance - Q1 2025 vs Q1 2024 (in millions) | Metric | Q1 2025 | Q1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Net Sales | $222.0 | $209.7 | +6% | | Operating Profit | $19.3 | $24.8 | -22% | | Operating Margin | 8.7% | 11.8% | -310 bps | - Sales growth was driven by higher volumes in RV and marine aftermarkets and market share gains in the automotive aftermarket[11] - The decline in operating profit margin was attributed to a sales mix shift towards lower-margin products, decreased automotive aftermarket production volume, and investments in capacity and distribution[12] Balance Sheet, Liquidity, and Financing Activities The company ended Q1 2025 with strong liquidity, including $231.2 million in cash, and successfully refinanced long-term debt, extending most maturities - Cash and cash equivalents increased to $231.2 million at March 31, 2025, from $165.8 million at December 31, 2024[15] - Key uses of cash in Q1 2025 included $29.6 million for an acquisition, $29.4 million for dividends, $28.3 million for share repurchases, and $9.0 million for capital expenditures[15] - The company executed significant debt refinancing, including issuing $460 million of 3.000% convertible notes due 2030 and entering a new credit agreement with a $600 million revolving facility and a $400 million term loan[16][17] - As of March 31, 2025, total long-term debt was $938.3 million, and the company had $595.3 million of borrowing availability under its revolving credit facility[19] Financial Statements The unaudited financial statements provide detailed figures for the company's operating results, segment performance, balance sheet, and cash flows Operating Results (Income Statement) Condensed Income Statement (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net sales | $1,045,590 | $968,029 | | Gross profit | $251,749 | $223,906 | | Operating profit | $81,317 | $57,611 | | Net income | $49,438 | $36,545 | | Diluted EPS | $1.94 | $1.44 | Segment Results Net Sales & Operating Profit by Segment (in thousands) | Segment | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | :--- | | OEM Segment | Net Sales | $823,555 | $758,311 | | | Operating Profit | $61,974 | $32,836 | | Aftermarket Segment | Net Sales | $222,035 | $209,718 | | | Operating Profit | $19,343 | $24,775 | | Total | Net Sales | $1,045,590 | $968,029 | | | Operating Profit | $81,317 | $57,611 | Balance Sheet Condensed Balance Sheet (in thousands) | Account | March 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $231,243 | $165,756 | | Total current assets | $1,367,088 | $1,160,238 | | Total assets | $3,099,998 | $2,894,739 | | Total current liabilities | $461,267 | $412,053 | | Long-term indebtedness | $934,632 | $756,830 | | Total liabilities | $1,733,285 | $1,507,853 | | Total stockholders' equity | $1,366,713 | $1,386,886 | Cash Flow Statement Condensed Cash Flow Statement (in thousands) | Category | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash from operating activities | $42,718 | $(7,654) | | Net cash used in investing activities | $(42,040) | $(8,435) | | Net cash from financing activities | $66,871 | $(26,447) | | Net increase (decrease) in cash | $65,487 | $(43,532) | Supplementary Information & Outlook The company provided key RV industry data, showing increased wholesale production and higher content per unit, alongside its full-year 2025 guidance RV Industry Data (Units in thousands) | Category | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Travel trailer & fifth-wheel wholesale | 86.4 | 73.5 | | Travel trailer & fifth-wheel retail | 60.6 | 65.4 | | Motorhome wholesale | 9.3 | 10.4 | | Motorhome retail | 9.3 | 9.8 | Lippert Content Per Unit (Twelve Months Ended March 31) | Category | 2025 | 2024 | | :--- | :--- | :--- | | Travel trailer & fifth-wheel RV | $5,164 | $5,097 | | Motorhome RV | $3,750 | $3,656 | Estimated Full Year 2025 Guidance | Item | Guidance | | :--- | :--- | | Capital expenditures | $50 - $70 million | | Depreciation and amortization | $115 - $125 million | | Stock-based compensation expense | $18 - $23 million | | Annual tax rate | 25% - 27% | Non-GAAP Financial Measures The company provided reconciliations for non-GAAP measures, with Adjusted EBITDA for Q1 2025 at $110.9 million and Adjusted net income at $55.6 million Reconciliation of Net Income to Adjusted EBITDA (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net income | $49,438 | $36,545 | | Interest, Taxes, D&A | $53,368 | $53,755 | | Loss on extinguishment of debt | $8,053 | $— | | Adjusted EBITDA | $110,859 | $90,300 | | Adjusted EBITDA as % of net sales | 10.6% | 9.3% | Reconciliation of Net Income to Adjusted Net Income (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net income | $49,438 | $36,545 | | Loss on extinguishment of debt (net of tax) | $6,123 | $— | | Adjusted net income | $55,561 | $36,545 | | Adjusted net income per diluted share | $2.19 | $1.44 |