LCI Industries(US:LCII)2023-11-07 17:22Financial Performance - Net sales for Q3 2023 were $959.3 million, a decrease of 15.3% compared to $1,132.1 million in Q3 2022[9] - Gross profit for Q3 2023 was $210.9 million, down 16.6% from $253.1 million in Q3 2022[9] - Operating profit decreased to $45.6 million in Q3 2023, a decline of 47.9% from $87.6 million in Q3 2022[9] - Net income for Q3 2023 was $25.9 million, a significant drop of 57.7% compared to $61.4 million in Q3 2022[9] - Total net sales for the nine months ended September 30, 2023, were $2.95 billion, a decrease from $4.31 billion in the same period of 2022, representing a decline of approximately 31%[74] - Net income for the nine months ended September 30, 2023, was $66,572,000, a decrease of 83.8% compared to $412,103,000 in the same period of 2022[16] Assets and Liabilities - Total assets as of September 30, 2023, were $3,033.8 million, down from $3,246.9 million at the end of 2022[14] - Cash and cash equivalents decreased to $31.2 million from $47.5 million at the end of 2022[14] - Long-term indebtedness as of September 30, 2023, was $908.245 million, a decrease from $1,095.888 million as of December 31, 2022[45] - The balance of retained earnings as of September 30, 2023, was $1,206,525,000, down from $1,221,279,000 at December 31, 2022[21] - Current assets decreased to $1.23 billion as of September 30, 2023, from $1.39 billion at the end of 2022[14] Cash Flow and Capital Expenditures - Net cash flows provided by operating activities for the nine months ended September 30, 2023, were $389.3 million, compared to $485.5 million for the same period in 2022[16] - Capital expenditures for the nine months ended September 30, 2023, were $50.1 million, down from $103.7 million in 2022[16] - Cash flows used in financing activities were $333.4 million in the first nine months of 2023, primarily due to net repayments under the revolving credit facility and dividend payments[128] Dividends and Stock - Cash dividends paid were $26,590,000 for the quarter ending September 30, 2023, maintaining a consistent dividend of $1.05 per share[21] - The Company declared total dividends of $79.744 million for the year 2023, with a per share dividend of $1.05 for each quarter[65] - The total dividends paid in 2023 amounted to $79,744 thousand, with a per share dividend of $3.15, compared to $102,726 thousand in 2022 with a per share dividend of $4.05[65] Segment Performance - For the nine months ended September 30, 2023, the OEM Segment accounted for 76% of consolidated net sales, down from 83% in the same period of 2022[71] - The Aftermarket Segment's net sales increased to 24% of consolidated net sales for the nine months ended September 30, 2023, up from 17% in the same period of 2022[72] - The OEM Segment's net sales for travel trailers and fifth-wheel RVs were $1.03 billion for the nine months ended September 30, 2023, compared to $2.26 billion in the same period of 2022, a decrease of approximately 54%[74] - Aftermarket Segment net sales for Q3 2023 increased by $11.2 million to $230.8 million, a 5% increase compared to Q3 2022[110] Inventory and Goodwill - The Company recorded inventories of $791.884 million as of September 30, 2023, down from $1,029.705 million as of December 31, 2022, reflecting a decrease of approximately 23%[39] - The net balance of goodwill as of September 30, 2023, was $579.912 million, up from $567.063 million as of December 31, 2022[37] - The Company has recorded a decrease in raw materials inventory to $484.3 million as of September 30, 2023, down from $600.6 million at the end of 2022[39] Economic Conditions and Risks - The Company noted that negative economic conditions, including inflation and interest rate fluctuations, could continue to impact its business and financial results[28] - The company is exposed to market risks related to changes in raw material prices, particularly steel and aluminum, which could impact future profitability[145] Compliance and Financial Covenants - The Company was in compliance with all financial covenants as of September 30, 2023[57] - The maximum net leverage ratio covenant limits the amount of consolidated outstanding indebtedness based on trailing twelve-month EBITDA[58]