LCI Industries(US:LCII)2022-11-01 15:25Financial Performance - Net sales for the three months ended September 30, 2022, were $1,132,079, a decrease of 2.0% compared to $1,165,309 in the same period of 2021[9] - Gross profit for the nine months ended September 30, 2022, increased to $1,126,382, up 50.0% from $750,969 in the same period of 2021[9] - Operating profit for the three months ended September 30, 2022, was $87,575, a slight decrease of 1.6% from $89,024 in the same period of 2021[9] - Net income for the nine months ended September 30, 2022, was $412,103, representing a 100.5% increase compared to $205,410 in the same period of 2021[9] - The company reported a total comprehensive income of $49,070 for the three months ended September 30, 2022, down from $61,608 in the same period of 2021[11] - Net income for the quarter ending September 30, 2022, was $61,392,000, compared to $196,181,000 for the same quarter in 2021[21] - The Company reported an operating profit of $284.4 million for the nine months ended September 30, 2022, down from $576.1 million in the same period of 2021[92] - Operating profit for the OEM Segment was $65.2 million in the third quarter of 2022, an increase of $1.1 million compared to the same period in 2021, with an operating profit margin of 7.1%[121] - Operating profit for the OEM Segment rose to $501.1 million, a 143% increase from $206.7 million in the first nine months of 2021, with an operating profit margin of 14.0%[127] - Operating profit for the Aftermarket Segment was $74.9 million, a decrease of $2.8 million compared to the same period in 2021, with an operating profit margin of 10.3%[133] Assets and Liabilities - Total assets as of September 30, 2022, were $3,268,971, a slight decrease from $3,288,094 as of December 31, 2021[14] - Cash and cash equivalents decreased to $23,403 as of September 30, 2022, from $62,896 at the beginning of the period[14] - As of September 30, 2022, total stockholders' equity was $1,423,557,000, an increase from $1,092,875,000 on December 31, 2021[21] - Total liabilities decreased from $2,195,219 thousand on December 31, 2021, to $1,845,414 thousand on September 30, 2022, a reduction of approximately 15.9%[14] - Long-term indebtedness decreased to $1.04 billion as of September 30, 2022, down from $1.23 billion at December 31, 2021, a reduction of 15.5%[57] - The total long-term portion of contingent consideration liability decreased to $103,000 as of September 30, 2022, down from $6.911 million at the beginning of the period, primarily due to updated sales projections[74] Cash Flow and Capital Expenditures - Cash flows from operating activities were $485.5 million in the first nine months of 2022, significantly up from $12.3 million in the same period of 2021[143] - Capital expenditures for the nine months ended September 30, 2022, were $103,748, an increase from $73,872 in the same period of 2021[16] - Cash flows used in financing activities for the first nine months of 2022 totaled $364.9 million, primarily due to net repayments under the revolving credit facility and dividend payments[150] - The company expects full-year 2022 capital expenditures to be between $110 million and $130 million, focusing on automation and capacity expansions[148] Dividends and Shareholder Returns - The company paid dividends totaling $76,273 during the nine months ended September 30, 2022, compared to $64,425 in the same period of 2021[16] - Cash dividends paid were $26,701,000 for the quarter, with a dividend rate of $1.05 per share[21] - The Company declared total dividends of $3.00 per share for the year 2022, totaling $76.273 million, compared to $3.45 per share totaling $87.171 million for 2021[78] Acquisitions and Goodwill - The company acquired Girard Systems and Girard Products LLC for a total consideration of approximately $70.7 million, with $50.0 million paid in cash at closing[34] - The acquisition of Furrion in September 2021 had a total fair value of consideration of approximately $146.7 million, with $50.5 million paid in cash at closing[41] - Goodwill increased to $551.6 million as of September 30, 2022, reflecting acquisitions and measurement period adjustments[48] - The Company recorded goodwill of $12.7 million (tax deductible) from the acquisition, indicating that the consideration given exceeded the fair value of net assets acquired[36] - During the nine months ended September 30, 2022, the Company completed two other acquisitions for a total cash consideration of $5.0 million, resulting in $0.8 million of goodwill[37] Market and Operational Insights - The company operates over 130 manufacturing and distribution facilities across North America and Europe[23] - The company supplies engineered components primarily to the recreational vehicle (RV) market and related aftermarkets[23] - The OEM Segment accounted for 83% of consolidated net sales for the nine months ended September 30, 2022, with net sales of $3.585 billion, up from $2.627 billion in the same period of 2021[89] - The Aftermarket Segment contributed 17% of consolidated net sales for the nine months ended September 30, 2022, generating $727.5 million, compared to $632.1 million in the prior year[90] - Retail demand for travel trailer and fifth-wheel RVs decreased by 24% in the first nine months of 2022 compared to the same period in 2021, driven by elevated fuel prices and rising interest rates[106] - The company expects full-year 2022 industry-wide wholesale shipments of travel trailer, fifth-wheel, and motorhome RVs to be approximately 480,000 to 500,000 units, indicating a decrease of 45% to 50% in the second half of 2022 compared to the first half[110] Risks and Future Outlook - The company is closely monitoring the impact of COVID-19 and the Russia-Ukraine War on its financial condition and results of operations[28] - The company anticipates elevated prices for key raw materials, particularly steel and aluminum, to remain in the near term due to inflationary pressures[158] - The company expects to continue to comply with all financial covenants under its Credit Agreement and Shelf-Loan Facility, ensuring financial stability moving forward[71]