LCI Industries(US:LCII)2023-05-09 15:40Financial Performance - Net sales for Q1 2023 were $973.31 million, a decrease of 40.7% compared to $1.64 billion in Q1 2022[9] - Gross profit for Q1 2023 was $186.07 million, down 59.9% from $464.24 million in the same period last year[9] - Net income for Q1 2023 was $7.26 million, a significant decline of 96.3% compared to $196.18 million in Q1 2022[9] - Basic net income per share for Q1 2023 was $0.29, compared to $7.75 in Q1 2022, reflecting a decrease of 96.3%[9] - Consolidated net sales in Q1 2023 were $973.3 million, a 41% decrease from $1.6 billion in Q1 2022, primarily due to a nearly 60% decrease in North American towable RV wholesale shipments[92] - Net income for Q1 2023 was $7.3 million, or $0.29 per diluted share, compared to $196.2 million, or $7.71 per diluted share, in Q1 2022[92] Assets and Liabilities - Total assets as of March 31, 2023, were $3.21 billion, down from $3.25 billion at the end of 2022[14] - Cash and cash equivalents decreased to $23.47 million from $47.50 million at the end of 2022, representing a decline of 50.7%[14] - The company’s total stockholders' equity as of March 31, 2023, was $1.36 billion, down from $1.38 billion at the end of 2022[14] - As of March 31, 2023, accrued expenses and other current liabilities totaled $205.2 million, a decrease of 6.4% from $219.2 million on December 31, 2022[40] - Long-term indebtedness decreased to $1,055.6 million as of March 31, 2023, down from $1,095.9 million at the end of 2022, representing a reduction of 3.7%[42] Cash Flow and Capital Expenditures - The company reported a net cash flow from operating activities of $74.68 million for Q1 2023, down from $134.93 million in Q1 2022[17] - Capital expenditures for Q1 2023 were $17.16 million, a decrease of 59.1% compared to $42.04 million in Q1 2022[17] - Cash dividends paid in Q1 2023 amounted to $26.56 million, an increase from $22.87 million in Q1 2022[17] - Cash flows used in financing activities were $76.8 million in Q1 2023, primarily due to $36.1 million in net repayments under the revolving credit facility and $26.6 million in quarterly dividends[118] Segment Performance - The OEM Segment accounted for 78% of consolidated net sales in Q1 2023, down from 85% in Q1 2022, with net sales of $758.2 million[66] - The Aftermarket Segment represented 22% of consolidated net sales in Q1 2023, up from 15% in Q1 2022, with net sales of $215.1 million[67] - The OEM Segment reported an operating loss of $721,000 in Q1 2023, compared to an operating profit of $245.4 million in Q1 2022[69] - The Aftermarket Segment generated an operating profit of $20.8 million in Q1 2023, down from $24.3 million in Q1 2022[69] Economic and Market Conditions - The Company is exposed to risks from economic conditions, including inflation and interest rates, which could impact its financial performance[26] - The company expects full-year 2023 industry-wide wholesale shipments of RVs to be approximately 310,000 to 330,000 units, a decrease of 37% to 33% compared to 2022[85] - Industry-wide wholesale shipments of travel trailers and fifth-wheels decreased 60% to 61,200 units in Q1 2023 compared to 152,200 units in Q1 2022[81] Compliance and Financial Agreements - The Company is in compliance with all financial requirements under the Credit Agreement as of March 31, 2023[54] - The Credit Agreement includes a maximum net leverage ratio covenant, which limits the amount of consolidated outstanding indebtedness based on trailing twelve-month EBITDA[54] Stock and Dividends - The Company declared a quarterly dividend of $1.05 per share for Q1 2023, totaling $26.6 million, consistent with the previous quarter[61] - The Company has a stock repurchase program authorized for up to $200 million, with $24.1 million spent on repurchasing 253,490 shares in 2022[64] - The Company has paid regular quarterly dividends since 2016, with future policies determined by the Board of Directors based on financial needs and earnings[121]