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Sep 30, 2022
LCI Q3 2022 Earnings Report
LCI Industries reported a decrease in net sales, but diversification strategy proved effective while delivering record content.
Key Takeaways
LCI Industries reported Q3 2022 financial results, with net sales of $1.1 billion, a decrease of 3% year-over-year. Net income was $61.4 million, a decrease of 3% year-over-year. The company's diversification strategy helped maintain strong performance during a downturn in RV demand, with growth in adjacent markets and a flexible cost structure supporting profitability.
Net sales decreased by 3% year-over-year to $1.1 billion.
Net income decreased by 3% year-over-year to $61.4 million.
EBITDA increased by 2% year-over-year to $119.8 million.
Content per travel trailer and fifth-wheel RV increased 55% year-over-year to a record $5,853.
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
LCI Industries did not provide specific forward guidance for Q4 2022 in the earnings report. However, they did mention positive and negative factors influencing their outlook.
Positive Outlook
- Positive trends as the Company moves into the last quarter of 2022
- Diversification efforts are helping to offset the deceleration experienced in North American RV production
- The company remains confident in the underlying secular trends fueling popularity in the outdoor lifestyle
- Investments in innovation throughout the portfolio to capture demand for technologically sophisticated products
- Strong, cohesive culture guided by our experienced leadership team
Challenges Ahead
- Wholesale RV production is expected to remain tempered in the near-term
- Soften consumer demand
- Macroeconomic uncertainty
- Decline in automotive aftermarket sales
- Challenging economic environment
Revenue & Expenses
Visualization of income flow from segment revenue to net income