LCI Industries has reported full year and fourth quarter 2019 results, showing net sales of $564 million in the fourth quarter, an increase of 5 percent year-over-year. Aftermarket segment sales in the fourth quarter grew to $68.8 million, an increase of 35 percent year-over-year. Additionally, international sales grew to $45.4 million, an increase of 58 percent year-over-year.
Net sales for the full year, however, were $2.4 billion, a decrease of 4 percent year-over-year.
“In 2019, we significantly advanced LCI’s diversification through seven strategic acquisitions by investing nearly $450 million, including our largest acquisition to date, CURT Group, which effectively doubled the size of our aftermarket business and accelerated our path to becoming a dominant leader in the space,” said CEO Jason Lippert. “In addition, as part of our efforts to broaden our international presence, in January 2020, we closed the acquisition of premier window supplier Polyplastic Group, which will enable us to grow further in key European markets. This expansion, combined with our commitment to innovation and execution on operational initiatives, supported a return to sales growth of 5 percent in the fourth quarter versus industry declines of 8 percent, while at the same time expanding operating margins by 120 basis points, year-over-year.”
Consolidated net sales for the full year 2019 were $2.4 billion, a decline of four percent from full year 2018 net sales of $2.5 billion. Net income for the full year 2019 was $146.5 million, compared to net income of $148.6 million for the full year 2018.
The decrease in year-over-year net sales reflects a continuation of lower RV wholesale shipments seen throughout the year as dealers continued to correct their inventory levels, partially offset by continued growth in the company’s adjacent industries OEM, aftermarket and international markets. Net sales from acquisitions completed by the company contributed $93 million in 2019.
“Heading into 2020, we are maintaining our focus on delivering new, innovative products, leveraging our core competencies in adjacent markets, driving operational efficiencies, and realizing synergies from these recent acquisitions,” said Lippert. “We remain optimistic about the opportunities ahead of us and are confident our team will continue their efforts to build on our momentum to further deliver value for our customers and shareholders.”
The increase in year-over-year net sales for the fourth quarter of 2019 reflects the impact of acquisitions completed during the quarter, in addition to organic growth across the company’s adjacent industries OEM, aftermarket and international markets, partially offset by lower RV wholesale shipments. Net sales from acquisitions completed by the company contributed $35 million in the fourth quarter of 2019.
The company’s content per travel trailer and fifth wheel for the 12 months ended Dec. 31, increased $169 to $3,618, compared to $3,449 for the 12 months ended Dec. 31, 2018. The content increase in towables was a result of organic growth, including new product introductions and price increases, as well as acquisitions.
January 2020 consolidated net sales were approximately $224 million, up 20 percent from January 2019.
