LCI Industries(US:LCII)2025-05-06 15:41Financial Performance - Net sales for Q1 2025 reached $1,045,590, an increase of 8.0% compared to $968,029 in Q1 2024[9] - Gross profit for the same period was $251,749, reflecting a 12.5% increase from $223,906 in Q1 2024[9] - Net income for Q1 2025 was $49,438, up 35.2% from $36,545 in Q1 2024[12] - Total comprehensive income for Q1 2025 was $59,867, compared to $33,282 in Q1 2024, marking an increase of 79.9%[12] - Operating profit for Q1 2025 was $81,317, a significant increase of 41.1% from $57,611 in Q1 2024[9] - The OEM Segment accounted for 79% of consolidated net sales in Q1 2025, with net sales of $823.6 million, up from $758.3 million in Q1 2024[84] - The Aftermarket Segment represented 21% of consolidated net sales in Q1 2025, generating $222.0 million, compared to $209.7 million in Q1 2024[85] - Gross profit for the three months ended March 31, 2025, was $251.7 million, reflecting a gross margin of approximately 24.1%[87] - Operating profit for the OEM Segment was $61.9 million, while the Aftermarket Segment reported an operating profit of $19.3 million for the same period[87] Cash and Assets - Cash and cash equivalents increased to $231,243 as of March 31, 2025, from $165,756 at the end of 2024, a rise of 39.5%[14] - Total assets grew to $3,099,998 as of March 31, 2025, up from $2,894,739 at the end of 2024, representing an increase of 7.1%[14] - The total stockholders' equity increased to $1,366,713,000 as of March 31, 2025, from $1,356,884,000 as of December 31, 2024[22] - As of March 31, 2025, the company had $231.2 million in cash and cash equivalents and $595.3 million available under its revolving credit facility[129] Debt and Financing - The company reported a loss on extinguishment of debt amounting to $8,053 in Q1 2025, with no such loss reported in Q1 2024[9] - Long-term indebtedness rose from $756.830 million on December 31, 2024, to $934.632 million on March 31, 2025, primarily due to the issuance of 2030 Convertible Notes[52] - The Company has a $600.0 million revolving credit facility, with a maturity date of March 25, 2030, and term loans of $400.0 million maturing on March 25, 2032[53] - The company issued $460.0 million in aggregate principal amount of 2030 Convertible Notes, resulting in net proceeds of approximately $447.0 million after expenses[58] - The company repaid $280.0 million of the previous term loan and recognized a loss on extinguishment of debt of $1.9 million during the three months ended March 31, 2025[57] Shareholder Returns - Cash dividends declared were $1.15 per share, totaling $29,352,000 for the three months ended March 31, 2025[22] - The company returned $57.6 million to shareholders in Q1 2025 through dividends and share repurchases[117] - As of March 31, 2025, the company had $147.6 million remaining under its stock repurchase program, having repurchased 308,898 shares at an average price of $91.47 per share in March 2025[82] Acquisitions and Investments - The company made an acquisition of a business costing $29,579 during Q1 2025[17] - The Company acquired Freedman Seating Company for approximately $78.7 million in April 2025, which will be included primarily in the OEM segment[44] - The Company acquired Trans/Air Manufacturing Corporation for $29.6 million in cash, with contingent consideration up to $2.0 million, included in the OEM segment[45] - Goodwill increased from $585.773 million on December 31, 2024, to $590.204 million on March 31, 2025, reflecting acquisitions and foreign currency translation[46] Operational Footprint - The company operated over 110 manufacturing and distribution facilities across North America and Europe as of March 31, 2025[25] - The company has diversified its portfolio beyond the RV OEM market into marine, building products, transportation, and aftermarket sectors, aiming for profitable growth and risk mitigation[94] Market Trends - The RV industry saw an 18% increase in wholesale shipments of travel trailers and fifth-wheels to 86,400 units in Q1 2025, while retail demand for these units decreased by 7%[99][101] - The U.S. RV ownership base reached a record 8.1 million households in 2025, driving robust demand for aftermarket products[109] Tax and Compliance - The effective tax rate for the three months ended March 31, 2025, was 26.5%, an increase from 24.3% in the same period of 2024[127] - As of March 31, 2025, the Company was in compliance with all financial covenants under the Credit Agreement[55] Future Outlook - The company anticipates that sales and profits will be strongest in the second quarter, influenced by seasonal demand patterns[26] - Capital expenditures for 2025 are estimated to be between $50 million and $70 million, including investments in automation and lean projects[137]