LCI Industries, through its wholly owned subsidiary Lippert, today reported fourth quarter and full year 2023 results.
“Throughout the year, our consistent execution on diversification priorities and steadfast commitment to operational discipline has supported our performance despite continued softness in the RV and marine markets. Remarkable strength in our Aftermarket business, where we continued to see robust performance, coupled with solid results and leadership in our other diversified businesses, significantly contributed to our profitability as we navigate a challenging industry environment. Our focus on operational improvement and investments in automation leave us well-positioned to drive profitable growth when production starts to normalize in 2024,” said Jason Lippert, LCI Industries’ president and CEO.
“Further, through our world-class R&D capabilities and culture of innovation, we will continue introducing sophisticated new products. 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 motorhomes. 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,” said Lippert. “We are entering the new year with a solid balance sheet, reinforced by recent working capital improvements and a focus on cash generation. We plan to continue to invest strategically and are confident in the mid- to long-term profitable growth of our business.”
“January 2024 sales outpaced January 2023 levels by 13% as we started to see business increase as dealers begin to replenish inventories. February orders are also pacing ahead of prior year, reflecting the positive dealer and consumer sentiment from the RV shows,” said Ryan Smith, LCI Industries’ group president of North America. “I’d like to thank all of our team members for their unwavering commitment to driving our business forward as we work to generate value for our customers and shareholders.”
Fourth Quarter 2023 Results
Consolidated net sales for the fourth quarter of 2023 were $837.5 million, a decrease of 6% from 2022 fourth quarter net sales of $894.3 million. Net loss in the fourth quarter of 2023 was $2.4 million, or $0.09 per diluted share, compared to a net loss of $17.1 million, or $0.68 per diluted share, in the fourth quarter of 2022. EBITDA in the fourth quarter of 2023 was $35.6 million, compared to EBITDA of $10.2 million in the fourth quarter of 2022.
The decrease in year-over-year net sales for the fourth quarter of 2023 was primarily driven by lower North American marine production levels, decreased selling prices which are indexed to select commodities, and decreased North American RV wholesale shipments, partially offset by growth in aftermarket net sales and net sales from recent acquisitions. Net sales from acquisitions completed in the twelve months ended Dec. 31, 2023, contributed approximately $11 million in the fourth quarter of 2023.
Full Year 2023 Results
Consolidated net sales for the full year 2023 were $3.8 billion, a decrease of 27% from full year 2022 net sales of $5.2 billion. Net income for the full year 2023 was $64.2 million, or $2.52 per diluted share, compared to net income of $395.0 million, or $15.48 per diluted share, for the full year 2022. EBITDA for the year ended December 31, 2023 was $255.2 million, compared to EBITDA of $682.2 million for the year ended December 31, 2022. Additional information regarding EBITDA, as well as reconciliations of this non-GAAP financial measure to the most directly comparable GAAP financial measure of net income (loss), is provided in the “Supplementary Information – Reconciliation of Non-GAAP Measures” section below.
The decrease in year-over-year net sales was primarily driven by a nearly 39% decrease in North American RV wholesale shipments, decreased selling prices which are indexed to select commodities, and lower North American marine production levels, partially offset by net sales from recent acquisitions. Net sales from acquisitions completed in 2022 and 2023 contributed approximately $73.6 million in 2023.
January 2024 consolidated net sales were approximately $308 million, up 13% from January 2023, primarily due to an approximate 57% increase in North American RV production, partially offset by an approximate 44% decline in marine sales compared to January 2023.
“We delivered strong aftermarket operating profits for the year as we continued to capture solid demand for repair, replacement and upgrades across our end markets. Aftermarket remains a key growth driver for Lippert and a critical piece of our diversification strategy, providing counter cyclical support in a volatile environment,” said Jamie Schnur, LCI Industries’ group president of aftermarket. “We look forward to leveraging our industry-leading service teams and innovative product offerings to continue this momentum in the new year.”
