Lippert Components Industries reported net sales of $660 million in the first quarter of 2020, an increase of 11 percent over the same quarter last year. However, its net income declined 18 percent, to $28.2 million.
“We delivered an 11 percent increase in revenues during the first quarter of 2020, despite the about-face in demand that occurred late in the quarter,” said Jason Lippert, LCI Industries’ president and CEO. “As we began the year, RV retail sales trended positively, largely outperforming industry expectations. In addition, our diversification strategy continued to bear fruit as we saw strong growth across our adjacent markets, aftermarket, and international businesses.
“I am incredibly proud of our team for not only its superior execution during the quarter, but also the quick reaction to adjust to the production halt at most of our OEM customers, as well as many of our facilities across North America and Europe. As the world changed before our eyes, we took the crucial steps to protect the health and safety of our team members and implement cost management initiatives in an effort to help mitigate long-term impacts to the business.”
The increase in year-over-year net sales for the first quarter of 2020 reflects acquisitions and organic growth across the company’s adjacent industries OEM, aftermarket and international markets, partially offset by the impact of customer shutdowns in response to the spread of COVID-19. Net sales from acquisitions completed by the company contributed $99.5 million in the first quarter of 2020.
The company’s content per travel trailer and fifth wheel RV, adjusted to remove Furrion sales from prior periods, for the 12 months ended March 31, increased $89 to $3,354, compared to $3,265 for the twelve months ended March 31, 2019. The content increase in towables was a result of organic growth, including new product introductions, partially offset by price reductions. The company’s content per motorhome RV, adjusted to remove Furrion sales from prior periods, for the 12 months ended March 31, decreased $110 to $2,327, compared to $2,437 for the twelve months ended March 31, 2019. The content decrease in motorhomes was primarily a result of the wholesale mix shifting to smaller units.
“The long-term fundamentals of our business are strong,” Lippert said. “Summer travel plans are being significantly altered for most consumers as air travel, cruise ships, and hotels are likely going to be less popular, at least in the near term. As a result, the outdoor recreational products business is expected to accelerate. RVs and boats provide attractive alternatives to vacation more safely as families are eager to get out of the house. At the same time, RVing and boating offer a great solution to social distancing for families that want to travel the country and experience the great outdoors. In this new normal, our strong competitive position and innovative products have supported better-than-expected results for April as well as OEM orders already received for May.
“In the near-term, we remain focused on navigating the current environment, advancing our diversification strategy, successfully integrating our latest acquisitions, and maintaining our investment in R&D. We feel confident we have the necessary infrastructure, balance sheet, and leadership to navigate this crisis and emerge a stronger company.”
