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Dec 31, 2022
LCI Q4 2022 Earnings Report
LCI Industries reported a decrease in net sales and a net loss due to headwinds, primarily production shutdowns by OEMs, though diversification and operational flexibility helped mitigate the impact.
Key Takeaways
LCI Industries reported fourth-quarter net sales of $894.3 million, a decrease of 26% year-over-year, and a net loss of $17.1 million, a 121% decrease year-over-year. The decline was primarily driven by decreased North American RV wholesale shipments. However, full-year net sales reached a record $5.2 billion, up 16% year-over-year, with a net income of $395.0 million.
Net sales decreased by 26% year-over-year to $894.3 million due to a decline in North American RV wholesale shipments.
Net loss was $17.1 million, a significant decrease compared to the previous year's net income of $82.3 million.
Adjacent Industries OEM net sales increased by 3% year-over-year, showcasing diversification efforts.
The company incurred severance-related and inventory reserve costs during the quarter.
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 anticipates production levels will normalize in 2023 and expects strong organic growth within RV, while believing the down cycle will be different than the last as its marine, adjacent, and aftermarket markets continue to support its diversification strategy.
Positive Outlook
- Production levels are anticipated to normalize in 2023.
- Expects strong organic growth within RV.
- Marine, adjacent, and aftermarket markets continue to support diversification strategy.
- Experienced leadership team.
- Flexible cost structure.
Challenges Ahead
- OEMs implemented production shutdowns.
- Incurred severance-related and inventory reserve costs in the fourth quarter.
- Macro-economic headwinds persist.
- January 2023 consolidated net sales were down 48 percent from January 2022.
- North American RV production declined approximately 80 percent compared to January 2022.
Revenue & Expenses
Visualization of income flow from segment revenue to net income