Despite a drop in RV production in the second half of the year by manufacturers, RV supplier Lippert, which also serves the marine and aftermarket audience, had net sales for the fourth quarter and for the entire year, the company said Tuesday.
In the fourth quarter, the company reported net sales of $894.3 million, a $319.1 million – or 26% – drop year-over-year. Lippert’s net loss in the quarter was $17.1 million, down $99.5 million, or 121%, year-over-year.
The company said the decrease in year-over-year net sales for the fourth quarter was primarily driven by decreased North American RV wholesale shipments, partially offset by price realization, acquisitions and an increase in net sales to OEMs in adjacent industries.
Net sales to RV manufacturers in Q4 were $433.8 million, down or 40% year-over-year, driven by a nearly 47% decline in North American industry wholesale shipments for the quarter compared to same quarter in 2021.
For the full year, however, it was one for the Lippert record books. The company had record net sales of $5.2 billion, up 16% year-over-year. Its record net income of $395 million was up $107.2 million, or 37%, year-over-year.
During the year the company also completed four strategic acquisitions for a combined purchase price of $108.5 million.
The full year also saw Lippert increase its content-per-unit in North American travel trailers and fifth-wheel RVs: it jumped 45% year-over-year to a record $6,090.
“In fiscal 2022, we achieved record net sales while expanding margins, a testament to our experienced leadership team, enhanced operations, and flexible cost structure,” said Jason Lippert, president and CEO. “Though we faced headwinds, primarily in the fourth quarter as OEMs implemented production shutdowns, the diversification of our businesses and actions to flex staffing helped mitigate the impact on earnings. We expect these efforts will limit margin pressure as we move through 2023, but we did incur severance-related and inventory reserve costs in the fourth quarter. Despite persistent macro-economic headwinds, we remain confident for the future as millions of campers continue to enjoy the outdoor lifestyle.
“Our team’s deep industry knowledge and experience navigating fluctuating production schedules will guide us in 2023, during which we anticipate production levels will normalize. Although we expect strong organic growth within RV, we believe this down cycle will be different than the last as our marine, adjacent and aftermarket markets continue to support our diversification strategy.
“I would like to thank all our Lippert team members for the hard work and dedication they showed throughout the year, driving our business forward. I am excited for the growth opportunities ahead, as we leverage our culture and innovations to deliver value for our customers and shareholders.”
