LCI Industries(US:LCII)2022-08-02 14:57Financial Performance - Net sales for the three months ended June 30, 2022, were $1,536,150, a 40.5% increase from $1,093,720 in the same period of 2021[9] - Gross profit for the six months ended June 30, 2022, was $873,328, up 75.1% from $499,388 in the prior year[9] - Net income for the three months ended June 30, 2022, was $154,530, representing a 128.5% increase compared to $67,889 in the same period of 2021[11] - Operating profit for the six months ended June 30, 2022, was $488,490, a significant increase of 149.0% from $195,413 in the same period of 2021[9] - The company reported a total comprehensive income of $348,126 for the six months ended June 30, 2022, compared to $140,860 in the same period of 2021[11] - Net income for the second quarter of 2022 was $154.53 million, compared to $196.18 million in the same period of 2021, reflecting a decrease of approximately 21.3%[21] - The company’s net income for the first half of 2022 was $196.18 million, compared to $74.12 million in the first half of 2021, indicating a substantial increase[21] - The company reported a total operating profit of $218,789,000 for the three months ended June 30, 2022, compared to $93,982,000 in the same period of 2021[92] - Net income for the six months ended June 30, 2022, was $350,711,000, a significant increase from $142,009,000 in the same period of 2021, representing a growth of 147%[16] Assets and Liabilities - Total assets as of June 30, 2022, were $3,482,696, an increase from $3,288,094 as of December 31, 2021[14] - Cash and cash equivalents at the end of the period were $54,988, down from $62,896 at the beginning of the period[16] - Current liabilities decreased slightly to $638.24 million as of June 30, 2022, from $627.22 million at the end of 2021[14] - Long-term indebtedness decreased to $1,101,787,000 as of June 30, 2022, from $1,231,959,000 at December 31, 2021, a reduction of approximately 10.5%[57] - The Company had $286,700,000 available under its revolving credit facility as of June 30, 2022[59] - The company reported an accumulated other comprehensive loss of $3.08 million as of June 30, 2022, compared to a loss of $501,000 as of December 31, 2021[21] Shareholder Information - Total stockholders' equity as of June 30, 2022, was $1.39 billion, an increase from $1.09 billion as of December 31, 2021, representing a growth of about 27.8%[21] - Cash dividends paid in the second quarter of 2022 were $26.70 million, with a dividend rate of $1.05 per share, compared to $22.87 million at $0.90 per share in the same quarter of 2021[21] - The Company declared a total dividend of $1.95 per share for 2022, compared to $3.45 per share for 2021, reflecting a decrease in total dividends paid[78] - The company paid $49,572,000 in dividends during the period, an increase from $41,678,000 in the prior year, reflecting a commitment to returning value to shareholders[16] Acquisitions - The company acquired Girard Systems for a total consideration of approximately $70.0 million, with $50.0 million paid in cash at closing and $20.0 million deferred[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[41] - The Company acquired Girard Systems and Girard Products LLC in March 2022, which specializes in awnings and tankless water heaters for the RV industry[34] - The Company completed another acquisition during the six months ended June 30, 2022, for $1.7 million, resulting in $0.8 million of goodwill[37] Operational Insights - The company operates over 130 manufacturing and distribution facilities across North America and Europe, supporting its supply chain for engineered components[23] - The OEM Segment accounted for 84% of consolidated net sales for the six months ended June 30, 2022, up from 80% in the same period of 2021[89] - Approximately 66% of the OEM Segment's net sales for the six months ended June 30, 2022, were derived from components for travel trailer and fifth-wheel RVs[89] - Retail demand for travel trailer and fifth-wheel RVs decreased by 26% in the first six months of 2022 compared to the same period in 2021[106] - The Aftermarket Segment accounted for 16% of consolidated net sales for the six months ended June 30, 2022, down from 20% in the same period of 2021[90] Market Conditions - The ongoing COVID-19 pandemic and the Russia-Ukraine War have introduced significant uncertainty and disruption in the global economy, impacting the company's operations[28] - The company continues to monitor the impact of economic conditions and consumer confidence on retail sales, particularly in the RV and related markets[24] - The company expects a decrease of 35% to 45% in industry-wide wholesale shipments in the second half of 2022 compared to the first half of 2022[110] - The company anticipates continued reduction in aftermarket volumes in the second half of 2022 due to fully stocked distribution channels and inflation impacts[115] Cost and Expenses - Increased material commodity costs negatively impacted operating profit by $52.0 million, primarily due to rising steel and aluminum prices[133] - The effective tax rate for the six months ended June 30, 2022, was 26.3%, up from 25.0% in the prior year[118] - The company incurred capital expenditures of $70,837 for the six months ended June 30, 2022, compared to $42,005 in the prior year[16] - Total lease costs for the three months ended June 30, 2022, increased to $16.1 million from $13.0 million in the same period of 2021, representing a 23.7% increase[73] Future Outlook - The company believes there are significant opportunities in Adjacent Industries, which include buses, trailers, and manufactured homes[111] - The company plans to fund future capital expenditures and acquisitions primarily through cash generated from operations and periodic borrowings[147] - The company expects working capital to fluctuate by approximately 10 to 15 percent in relation to net sales changes[143]