LCI Industries, which, through its wholly owned subsidiary Lippert Components, today reported first quarter 2024 results.
“We delivered solid results in the first quarter, starting the year with healthy EBITDA generation and margin expansion supported by our strong operational focus and improved material costs. As we continue to diversify our business, strength in some of our growing markets like automotive aftermarket, housing and our transportation businesses has consistently lifted profitability while adding a layer of durable, countercyclical revenue streams. We believe that our diversified markets will remain important drivers of Lippert’s profitable growth into the future,” commented Jason Lippert, LCI Industries’ president and CEO. “We are seeing signs of recovery in North American RV and expect a gradual improvement in production heading further into the year, led by towables where we typically provide the majority of our innovative RV content. Further, introductions of advanced products like our transformational ABS system are embedding us even deeper with key OEMs across our markets, creating opportunities for long-term content growth and serving as the catalyst for approximately $200 million in new business commitments for 2024.”
“We are committed to making continued operational improvements across our footprint, with a focus on creating flexible capacity while reducing costs. We continue to reduce inventory and focus on cash generation as we progress through the year. With our fortified balance sheet, we will continue investing in R&D and innovation while pursuing strategic growth opportunities and returning capital to shareholders,” said Lippert. “Looking ahead, we are well-positioned to capture market share gains and advance our competitive position throughout 2024.”
“I would like to thank all of the Lippert teams for their incredible dedication to serving our customers and improving our business as we work through lingering headwinds,” said Ryan Smith, LCI Industries’ group president – North America. “Through our operational expertise, steeped in a culture of product quality and innovation, we will continue to facilitate sustainable growth for Lippert well into the future.”
First quarter 2024 results:
Consolidated net sales for the first quarter of 2024 were $968 million, a decrease of 1% from 2023 first quarter net sales of $973.3 million. Net income in the first quarter of 2024 was $36.5 million, or $1.44 per diluted share, compared to $7.3 million, or $0.29 per diluted share, in the first quarter of 2023. EBITDA in the first quarter of 2024 was $90.3 million, compared to EBITDA of $52.5 million in the first quarter of 2023.
The decrease in year-over-year net sales for the first quarter of 2024 was primarily driven by lower North American marine production levels and decreased selling prices which are indexed to select commodities, mostly offset by increased North American RV wholesale shipments.
OEM net sales for the first quarter of 2024 were $758.3 million, an increase of $0.1 million compared to the same period of 2023. RV OEM net sales for the first quarter of 2024 were $459.6 million, up 15% compared to the same prior year period, driven by a 9% increase in North American RV wholesale shipments, partially offset by decreased selling prices which are indexed to select commodities. North American marine OEM net sales in the first quarter of 2024 were $65.4 million, down 45% year-over-year.
Operating profit of the OEM Segment was $32.8 million in the first quarter of 2024, or 4.3% of net sales, compared to an operating loss of $0.7 million, or 0.1%, in the same period in 2023. The operating profit of the OEM Segment for the quarter was primarily driven by decreased material commodity and freight costs.
Aftermarket net sales for the first quarter of 2024 were $209.7 million, down 3% year-over-year, primarily driven by lower volumes within marine markets and the impacts of inflation and elevated interest rates on consumers’ discretionary spending, partially offset by growth in the automotive aftermarket driven by market share gains. Operating profit of the Aftermarket Segment was $24.8 million in the first quarter of 2024, or 11.8% of net sales, compared to an operating profit of $20.8 million, or 9.7%, in the same period in 2023. The operating profit expansion of the aftermarket segment for the quarter was primarily driven by decreased commodity and freight costs as well as pricing changes to targeted products.
“We achieved another quarter of strong profitability in Aftermarket, expanding operating margins by over 200 basis points. Robust demand from the automotive aftermarket, in addition to the growing need for repair, replacement and upgrades in RV and other adjacencies we serve, are providing a strong tailwind for the business,” Jamie Schnur, LCI Industries’ group president – Aftermarket said. “As Jason mentioned, Aftermarket is consistently supporting Lippert’s overall profitability in a challenging environment. We are excited to continue this progress, providing our customers with best-in-class service and innovative new products, as we head further into 2024.”
April 2024 results:
April 2024 consolidated net sales were approximately $378 million, up 12% from April 2023, primarily due to an approximate 17% increase in North American RV production, partially offset by an approximate 33% decline in marine sales compared to April 2023.
