LCI Industries(LCII) - 2021 Q1 - Quarterly Report

Financial Performance - Net sales for the three months ended March 31, 2021, were $1,000,258, a 51.8% increase from $659,670 in the same period of 2020[9] - Gross profit for the same period was $241,777, representing a gross margin of 24.2%, compared to $158,605 and a gross margin of 24.0% in 2020[9] - Net income increased to $74,120, up 162.5% from $28,214 in the prior year, resulting in a diluted earnings per share of $2.93[9] - Operating profit for the three months ended March 31, 2021, was $101,431, a significant increase from $44,266 in the same period of 2020[9] - The Company reported a total comprehensive income of $70,531 for the three months ended March 31, 2021, compared to $24,674 in 2020[12] - Consolidated net sales for the first quarter of 2021 were $1.0 billion, a 52% increase compared to $659.7 million in the same period of 2020, driven by record RV retail demand and strong Aftermarket Segment sales growth[103] - Net income for the first quarter of 2021 was $74.1 million, or $2.93 per diluted share, compared to $28.2 million, or $1.12 per diluted share, for the same period in 2020[103] Assets and Liabilities - Total assets as of March 31, 2021, were $2,500,473, an increase of 8.8% from $2,298,031 at the end of 2020[14] - Cash and cash equivalents at the end of the period were $63,319, up from $51,821 at the beginning of the period[17] - The Company reported total inventories of $535.1 million as of March 31, 2021, an increase of 8.3% from $493.9 million at December 31, 2020[39] - Accrued expenses and other current liabilities increased to $210,559 thousand as of March 31, 2021, from $188,200 thousand at December 31, 2020, representing an increase of approximately 11.5%[41] - Long-term indebtedness stood at $726,608 thousand as of March 31, 2021, slightly up from $720,418 thousand at December 31, 2020, showing a marginal increase of about 0.3%[44] - The Company’s total other intangible assets amounted to $407.6 million as of March 31, 2021, reflecting a slight decrease from $420.9 million at December 31, 2020[38] Cash Flow and Capital Expenditures - Cash flows provided by operating activities were $4,847, a decrease from $44,759 in the same period of 2020[17] - The company incurred capital expenditures of $20,957 during the three months ended March 31, 2021, compared to $7,955 in the prior year[17] - The company expects full-year 2021 capital expenditures to be between $130 million and $150 million, including capacity expansions to meet elevated demand[122] Acquisitions and Investments - The Company acquired Schaudt GmbH for approximately $30.0 million, enhancing its offerings in electronic controls for the European caravan industry[30] - The acquisition of Ranch Hand Equipment, LLC was completed for about $57.4 million, with potential contingent consideration of up to $3.0 million, expanding the Company's aftermarket segment[31] - The company acquired Wolfpack Chassis in Kendallville, Indiana, during the quarter to expand capacity outside of Elkhart County, Indiana[87] - The acquisition of Veada Industries, Inc. was completed for $69.0 million, with holdback payments of $12.2 million to be paid over the next two years, contributing to the OEM segment[33] Market and Operational Insights - The Company experienced sequential improvement in end markets, particularly in the RV and marine OEM markets, continuing into the first quarter of 2021[27] - The Company’s sales and profits are typically highest in the second quarter, influenced by seasonal trends and economic conditions[22] - The company strategically managed working capital by building up inventory levels to avoid future shortages amid supply chain constraints and rising material costs[87] - Industry-wide wholesale shipments of travel trailer and fifth-wheel RVs increased by 49% to 131,200 units in the first three months of 2021 compared to the same period in 2020[94] Shareholder Information - The company paid dividends of $0.75 per share, totaling $18,939 for the period[19] - The weighted average shares outstanding for diluted earnings per share increased to 25,325,000 in Q1 2021 from 25,143,000 in Q1 2020[64] - The outstanding shares of common stock increased to 28,340,000 as of March 31, 2021, from 28,243,000 at the end of 2020[64] Risk Factors - The impact of COVID-19 on the Company’s operations remains uncertain, with management closely monitoring its effects on liquidity and financial condition[27] - The company is exposed to market risks related to fluctuations in raw material prices, particularly steel and aluminum, and has utilized derivative instruments to manage these risks[143]