Automobile Components LCI Industries Misses Q4 Expectations, But Bets Big on RV Boom

LCI Industries Inc LCII reported fourth-quarter FY23 revenues of sales decline of 6% Y/Y to $837.5 million, missing the consensus of $838.3 million.

Revenue declined Y/Y due to decreased North American marine production levels, lower selling prices (indexed to select commodities), and reduced North American RV wholesale shipments.

OEM net sales fell 10% Y/Y to $658.1 million, with RV OEM net sales of $388.9 million (-10% Y/Y) and Adjacent Industries OEM net sales of $269.2 million (-9% Y/Y). Also, North American marine OEM net sales tumbled 41% Y/Y to $64.6 million in the quarter.

On the other hand, Aftermarket net sales rose 10% Y/Y to $179.4 million on stabilizing distribution channel inventories.

January 2024 net sales increased 13% Y/Y to $308 million, mainly led by a 57% increase in North American RV production.

The company stated that February orders are also ahead of the prior year’s figure, reflecting the positive dealer and consumer sentiment from the RV shows.

Gross profit rose to $161.1 million from $146.9 million a year ago. Operating profit stood at $2.621 million vs. an operating loss of $(23.0) million the prior year quarter.

EPS loss of $(0.09) missed the consensus of EPS of $0.18.

The company held $66.2 million in cash and cash equivalents as of December 31, 2023. Operating cash flow for the year stood at $527.2 million.

The company returned $106 million to shareholders through quarterly dividends in 2023.

Jason Lippert, President and Chief Executive Officer, said, “Our 2023 product launches introduced some great additions to our portfolio, such as independent suspension axles, anti-lock braking systems, our new 4000 series windows with integrated blinds, as well as our new leveling systems for towables and motor homes.”

“These new products differentiate us from our competition and will add solid organic content growth and market share expansion. Demonstrating this strength, we have nearly $200 million in net new business commitments in 2024,”

Price Action: LCII shares are trading lower by 1.70% at $114.71 on the last check Tuesday.