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Mar 31, 2023
LCI Q1 2023 Earnings Report
LCI Industries reported first quarter financial results, with diversification strategy and operational execution supporting profitability.
Key Takeaways
LCI Industries reported a decrease in net sales by 41% year-over-year to $973.3 million. Net income also decreased to $7.3 million, a 96% drop compared to the previous year. Despite these declines, the company highlighted robust content growth and margin expansion, driven by their diversification strategy and operational improvements.
Net sales decreased by 41% year-over-year to $973.3 million.
Net income decreased by 96% year-over-year to $7.3 million, or $0.29 per diluted share.
EBITDA decreased by 83% year-over-year to $52.5 million.
North American RV OEM net sales were less than 48% of total net sales for the twelve months ended March 31, 2023, showcasing continued diversification.
LCI
LCI
LCI Revenue by Segment
Revenue by Segment
Travel Trailers & Fifth-Wheels Revenue
CapyFin.comMotorhomes Revenue
CapyFin.comAdjacent Industries OEMs Revenue
CapyFin.comAftermarket Segment Revenue
CapyFin.com Forward Guidance
The company did not provide specific forward guidance for revenue or earnings. However, they anticipate continued progress on their diversification strategy and inventory reduction plan.
Positive Outlook
- Strong R&D capabilities to expand market share through product innovations.
- Confident in the underlying strength of the outdoor lifestyle.
- Seeing continued retail demand coming out of spring shows.
- Continuing to fortify financial profile and reduce inventories by $300 million this year.
- Poised to continue trajectory of strong performance and deliver substantial margin growth when RV OEM production recovers.
Challenges Ahead
- Challenging wholesale and OEM environments.
- Recent overproduction within the industry.
- Decline in automotive aftermarket sales.
- Decrease in North American marine OEM net sales by 6% year-over-year.
- Impact of lower RV OEM shipments.
Revenue & Expenses
Visualization of income flow from segment revenue to net income