LCI Industries(US:LCII)2022-05-10 15:06Financial Performance - Net sales for the three months ended March 31, 2022, were $1,644,568, a 64.4% increase from $1,000,258 in the same period of 2021[9] - Gross profit for the same period was $464,243, representing a gross margin of 28.2%, compared to $241,777 and a margin of 24.2% in 2021[9] - Net income increased to $196,181, a 164.5% rise from $74,120 in the prior year, resulting in a diluted earnings per share of $7.71[9][12] - Consolidated net sales in Q1 2022 were $1.6 billion, a 64% increase from $1.0 billion in Q1 2021, driven by record wholesale shipments and Aftermarket Segment sales growth[118] - Net income for Q1 2022 was $196.2 million, or $7.71 per diluted share, compared to $74.1 million, or $2.93 per diluted share, in Q1 2021[118] Assets and Equity - Total assets as of March 31, 2022, were $3,640,723, up from $3,288,094 at the end of 2021, reflecting a growth of 10.7%[15] - Total stockholders' equity increased to $1,259,252 as of March 31, 2022, from $1,092,875 at the end of 2021, marking a growth of 15.2%[15] - Goodwill increased to $562.038 million as of March 31, 2022, from $543.180 million at December 31, 2021, reflecting acquisitions and measurement period adjustments[48] - Other intangible assets totaled $539.004 million at March 31, 2022, up from $519.957 million at December 31, 2021, with customer relationships accounting for $365.139 million[49][51] Cash Flow and Capital Expenditures - Cash flows provided by operating activities were $134,926, significantly higher than $4,847 in the same quarter of 2021[17] - The company incurred capital expenditures of $42,037 during the quarter, compared to $20,957 in the prior year[17] - Cash flows used in investing activities were $92.3 million in Q1 2022, mainly for business acquisitions ($50.1 million) and capital expenditures ($42.0 million)[136] - Capital expenditures for the full year 2022 are estimated to be between $130 million and $150 million, including capacity expansions to meet elevated demand[137] Dividends and Shareholder Returns - The company paid dividends of $22,870, reflecting an increase from $18,939 in the same quarter of the previous year[17] - The Company declared a quarterly dividend of $0.90 per share for the first quarter of 2022, totaling $22.870 million paid[82] Acquisitions - The total fair value of consideration for the acquisition of Girard Systems was approximately $70.0 million, with $50.0 million paid in cash at closing and $20.0 million due on July 1, 2022[34] - The acquisition of Furrion had a total fair value of consideration of approximately $146.7 million, with $50.5 million paid in cash at closing and fixed payments of $31.3 million due on the first and second anniversaries of the acquisition[41] - The Company acquired Girard, a manufacturer of proprietary awnings and tankless water heaters, in March 2022, expanding its product offerings in the RV market[34] Segment Performance - The OEM Segment accounted for 85% of consolidated net sales for the three months ended March 31, 2022, with net sales of $1.396 billion, up from $816.3 million in the same period of 2021[94][98] - The Aftermarket Segment contributed 15% of consolidated net sales for the same period, totaling $248 million, compared to $184 million in 2021[95][98] - The Company's operating profit for the OEM Segment was $245.4 million, while the Aftermarket Segment reported an operating profit of $24.3 million[98] Inventory and Working Capital - Inventories rose to $1.136 billion as of March 31, 2022, compared to $1.096 billion at December 31, 2021, driven by increases in raw materials and finished goods[52] - The Company is strategically managing working capital and maintaining elevated inventory levels to mitigate supply chain constraints[107] Financial Obligations and Liabilities - Long-term indebtedness stood at $1.265 billion as of March 31, 2022, slightly up from $1.232 billion at December 31, 2021[58] - The company reported a provision for warranty expense of $15.441 million for the three months ended March 31, 2022, compared to $6.977 million in the same period of 2021[56] - The company’s accrued expenses and other current liabilities totaled $345.486 million as of March 31, 2022, compared to $243.438 million at December 31, 2021[55] Market Conditions and Risks - The Company is closely monitoring the impacts of COVID-19 and the Russia-Ukraine War on its liquidity and financial condition, with future impacts remaining uncertain[27] - The ongoing COVID-19 pandemic and the Russia-Ukraine War have created significant uncertainty affecting the Company's financial condition and results of operations[27] Tax and Compliance - The effective tax rate for Q1 2022 was 25.5%, up from 24.9% in Q1 2021, primarily due to a decrease in excess tax benefits[127] - The Company expects to maintain compliance with financial requirements under the Credit Agreement and Shelf-Loan Facility for the next twelve months[72]