LCI Industries Reports Fourth Quarter and Full Year Financial Results
LCI Industries (NYSE: LCII) reported fourth quarter and full year 2023 results, highlighting a net sales decrease of 6% in Q4 and 27% for the full year. Despite challenges in the RV and marine markets, the Aftermarket Segment showed growth. The company's focus on diversification and operational discipline contributed to profitability. With a strong balance sheet, LCI Industries aims for long-term growth through innovation and new product launches.
Positive
Strong cash flow of $527 million from operating activities in 2023
Net sales of $838 million in Q4, down 6% year-over-year
Net loss of $2 million in Q4, an improvement of 86% year-over-year
Aftermarket Segment net sales grew 10% year-over-year
Full year net sales of $3.8 billion, down 27% year-over-year
Net income of $64 million for the full year, down 84% year-over-year
EBITDA of $255 million for 2023, down 63% year-over-year
Continued execution of diversification strategy with Aftermarket Segment and Adjacent Industries OEM net sales exceeding 56% of total net sales
Inventory reduction of $261 million
Net repayments of indebtedness of $277 million
Returned $106 million to shareholders through quarterly dividends in 2023
Negative
Decrease in net sales for Q4 and full year 2023
Significant decrease in net income for the full year
EBITDA decline of 63% for 2023
Nearly 39% decrease in North American RV wholesale shipments
Lower North American marine production levels impacting sales
Operating loss in the OEM Segment for Q4
Operating loss in the Aftermarket Segment in 2022
Decrease in effective tax rate for the year and quarter ended December 31, 2023
The reported decrease in net sales and net income for LCI Industries highlights a significant downturn in the RV and marine markets, which are central to the company's operations. The 27% year-over-year drop in net sales and the 84% decrease in net income are substantial and may signal broader industry challenges. However, the 10% growth in the Aftermarket Segment and the increase in EBITDA by 248% in the fourth quarter suggest a strategic pivot towards more stable revenue streams. The company's diversification strategy, with over half of net sales coming from the Aftermarket Segment and Adjacent Industries, indicates a shift that could buffer against cyclical downturns in their core markets.
Investors may find the company's ability to generate $527 million in cash from operating activities and reduce inventory by $261 million as signs of strong operational management, particularly in a challenging fiscal year. The repayment of $277 million in indebtedness and the return of $106 million to shareholders through dividends reflect a commitment to financial stability and shareholder value, despite the downturn in sales and income. These factors, coupled with the introduction of new products and $200 million in net new business commitments for 2024, may suggest potential for recovery and growth in the coming year.
The financial performance of LCI Industries, particularly the sharp decline in net income and EBITDA, could raise concerns among investors regarding the company's profitability and cost management. However, the improvement in the fourth quarter's net loss, from $(0.68) to $(0.09) per diluted share and the increase in EBITDA, indicates a positive trajectory that might ease investor worries about the company's ability to manage costs and improve margins.
The company's strategic focus on diversification and operational discipline, as demonstrated by the Aftermarket Segment's growth and profitability, offers a potential hedge against the volatility of the RV and marine markets. The reduction in effective tax rates from the previous year could also provide a slight boost to net income, albeit the high effective tax rate of 65.2% in the fourth quarter may require further scrutiny.
LCI Industries' balance sheet shows a healthy cash and cash equivalents balance increase, from $47.5 million to $66.2 million year-over-year. This liquidity, along with the company's compliance with debt covenants, may reassure investors of the company's financial resilience. The capital allocation strategy, including dividends, capital expenditures and acquisitions, reflects a balanced approach to growth and shareholder returns.
From a legal and regulatory standpoint, LCI Industries' compliance with debt covenants is a critical aspect of its financial health. The company's management of long-term indebtedness, which stands at $847.4 million and successful net repayments under its revolving credit facility, demonstrate adherence to financial agreements and responsible debt management. These actions are essential for maintaining corporate governance standards and investor confidence.
Additionally, the effective tax rate changes year-over-year and the impact of discrete adjustments related to life insurance contract assets on the tax rate suggest complex tax planning and accounting. It's important for the company to ensure transparent and compliant tax practices, as deviations could lead to regulatory scrutiny and impact investor trust.
02/13/2024 - 07:00 AM
Delivered $527 million of cash from operating activities in 2023 with strength in diversified businesses supporting performance in a challenging environment
Fourth Quarter 2023 Highlights
Net sales of $838 million in the fourth quarter, down 6% year-over-year
Net loss of $2 million , or $(0.09) per diluted share, in the fourth quarter, an improvement of 86% year-over-year
Aftermarket Segment net sales grew 10% year-over-year and operating profit improved by $15 million
EBITDA of $36 million in the fourth quarter, up 248% year-over-year
Full Year 2023 Highlights
Net sales of $3.8 billion , down 27% year-over-year
Net income of $64 million , or $2.52 per diluted share, down 84% year-over-year
EBITDA of $255 million , down 63% year-over-year
Continued execution of diversification strategy with Aftermarket Segment and Adjacent Industries OEM net sales exceeding 56% of total net sales for the year ended December 31, 2023
Inventory reduction of $261 million
Cash flows from operating activities of $527 million
Net repayments of indebtedness of $277 million
Returned $106 million to shareholders through quarterly dividends in 2023
ELKHART, Ind. --(BUSINESS WIRE)--
LCI Industries (NYSE: LCII) which, through its wholly-owned subsidiary, Lippert Components, Inc. ("Lippert"), supplies, domestically and internationally, a broad array of highly engineered components for the leading original equipment manufacturers ("OEMs") in the recreation and transportation markets, and the related aftermarkets of those industries, 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," commented Jason Lippert, LCI Industries' President and Chief Executive Officer.
"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 motor homes. 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," continued Mr. 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," commented Ryan Smith, LCI Industries' Group President - 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 December 31, 2023 contributed approximately $11.0 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 Results
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.
OEM Segment - Fourth Quarter Performance
OEM net sales for the fourth quarter of 2023 were $658.1 million , down 10% year-over-year, primarily driven by lower North American marine production levels, decreased selling prices which are indexed to select commodities, and a reduction in North American RV wholesale shipments. RV OEM net sales for the fourth quarter of 2023 were $388.9 million , down 10% compared to the same prior year period, driven by decreased selling prices which are indexed to select commodities and a 3% reduction in North American RV wholesale shipments. Adjacent Industries OEM net sales for the fourth quarter of 2023 were $269.2 million , down 9% year-over-year, primarily due to lower sales to North American marine OEMs. North American marine OEM net sales in the fourth quarter of 2023 were $64.6 million , down 41% year-over-year.
Operating loss of the OEM Segment was $11.7 million in the fourth quarter of 2023, or (1.8)% of net sales, compared to an operating loss of $22.0 million , or (3.0)%, in the same period in 2022. The operating loss of the OEM Segment for the quarter was driven by decreased selling prices which are indexed to select commodities and the impact of fixed costs on reduced sales.
Aftermarket Segment - Fourth Quarter Performance
Aftermarket net sales for the fourth quarter of 2023 were $179.4 million , up 10% year-over-year, as distribution channel inventories stabilized. Operating profit of the Aftermarket Segment was $14.3 million in the fourth quarter of 2023, or 8.0% of net sales, compared to an operating loss of $1.1 million , or (0.6)%, in the same period in 2022. The operating profit expansion of the Aftermarket Segment for the quarter was driven by decreased commodity costs and leveraging of fixed costs over larger sales and production volume.
“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,” Jamie Schnur, LCI Industries' Group President - Aftermarket commented. “We look forward to leveraging our industry-leading service teams and innovative product offerings to continue this momentum in the new year.”
Income Taxes
The Company's effective tax rate was 22.7% and 65.2% for the year and quarter ended December 31, 2023, respectively, compared to 24.8% and 45.2% for the year and quarter ended December 31, 2022, respectively. Due to certain operating losses in the fourth quarters of 2023 and 2022, discrete adjustments related to an increase in the life insurance contract assets had a proportionally larger impact on the tax rate in those periods. Fourth quarter and full year 2023 rates both benefited from a reduction in the effective state tax rate compared to fourth quarter and full year 2022.
Balance Sheet and Other Items
At December 31, 2023, the Company's cash and cash equivalents balance was $66.2 million , compared to $47.5 million at December 31, 2022. The Company used $106.3 million for dividend payments to shareholders, $62.2 million for capital expenditures, and $25.9 million for acquisitions in the twelve months ended December 31, 2023. The Company also made $215.9 million in net repayments under its revolving credit facility and $61.1 million in repayments under its term loan and other borrowings in the twelve months ended December 31, 2023.
The Company's outstanding long-term indebtedness, including current maturities, was $847.4 million at December 31, 2023, and the Company was in compliance with its debt covenants.
Conference Call & Webcast
LCI Industries will host a conference call to discuss its fourth quarter results on Tuesday, February 13, 2024, at 8:30 a.m. Eastern time, which may be accessed by dialing (833) 470-1428 for participants in the U.S. and (929) 526-1599 for participants outside the U.S. using the required conference ID 216951. Due to the high volume of companies reporting earnings at this time, please be prepared for hold times of up to 15 minutes when dialing in to the call. In addition, an online, real-time webcast, as well as a supplemental earnings presentation, can be accessed on the Company's website, www.investors.lci1.com .
A replay of the conference call will be available for two weeks by dialing (866) 813-9403 for participants in the U.S. and (44) 204-525-0658 for participants outside the U.S. and referencing access code 584031. A replay of the webcast will be available on the Company’s website immediately following the conclusion of the call.
About LCI Industries
LCI Industries, through its wholly-owned subsidiary, Lippert, supplies, domestically and internationally, a broad array of highly engineered components for the leading OEMs in the recreation and transportation markets, consisting primarily of recreational vehicles and adjacent industries, including boats; buses; trailers used to haul boats, livestock, equipment, and other cargo; trucks; trains; manufactured homes; and modular housing. The Company also supplies engineered components to the related aftermarkets of these industries, primarily by selling to retail dealers, wholesale distributors, and service centers, as well as direct to retail customers via the Internet. Lippert's products include steel chassis and related components; axles and suspension solutions; slide-out mechanisms and solutions; thermoformed bath, kitchen, and other products; vinyl, aluminum, and frameless windows; manual, electric, and hydraulic stabilizer and leveling systems; entry, luggage, patio, and ramp doors; furniture and mattresses; electric and manual entry steps; awnings and awning accessories; towing products; truck accessories; electronic components; appliances; air conditioners; televisions and sound systems; tankless water heaters; and other accessories. Additional information about Lippert and its products can be found at www.lippert.com .
Forward-Looking Statements
This press release contains certain "forward-looking statements" with respect to our financial condition, results of operations, profitability, margin growth, business strategies, operating efficiencies or synergies, competitive position, growth opportunities, acquisitions, plans and objectives of management, markets for the Company's common stock, the impact of legal proceedings, and other matters. Statements in this press release that are not historical facts are "forward-looking statements" for the purpose of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended, and involve a number of risks and uncertainties.
Forward-looking statements, including, without limitation, those relating to production levels, including normalization and timing, new business commitments and orders, as well as other factors, in 2024, future business prospects, growth, net sales, expenses and income (loss), capital expenditures, tax rate, cash flow, financial condition, liquidity, covenant compliance, retail and wholesale demand, integration of acquisitions, R&D investments, commodity prices, and industry trends, whenever they occur in this press release are necessarily estimates reflecting the best judgment of the Company's senior management at the time such statements were made. There are a number of factors, many of which are beyond the Company's control, which could cause actual results and events to differ materially from those described in the forward-looking statements. These factors include, in addition to other matters described in this press release, the impacts of future pandemics, geopolitical tensions, armed conflicts, or natural disasters on the global economy and on the Company's customers, suppliers, employees, business and cash flows, pricing pressures due to domestic and foreign competition, costs and availability of, and tariffs on, raw materials (particularly steel and aluminum) and other components, seasonality and cyclicality in the industries to which we sell our products, availability of credit for financing the retail and wholesale purchase of products for which we sell our components, inventory levels of retail dealers and manufacturers, availability of transportation for products for which we sell our components, the financial condition of our customers, the financial condition of retail dealers of products for which we sell our components, retention and concentration of significant customers, the costs, pace of and successful integration of acquisitions and other growth initiatives, availability and costs of production facilities and labor, team member benefits, team member retention, realization and impact of expansion plans, efficiency improvements and cost reductions, the disruption of business resulting from natural disasters or other unforeseen events, the successful entry into new markets, the costs of compliance with environmental laws, laws of foreign jurisdictions in which we operate, other operational and financial risks related to conducting business internationally, and increased governmental regulation and oversight, information technology performance and security, the ability to protect intellectual property, warranty and product liability claims or product recalls, interest rates, oil and gasoline prices, and availability, the impact of international, national and regional economic conditions and consumer confidence on the retail sale of products for which we sell our components, and other risks and uncertainties discussed more fully under the caption "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2022, and in the Company's subsequent filings with the Securities and Exchange Commission. Readers of this press release are cautioned not to place undue reliance on these forward-looking statements, since there can be no assurance that these forward-looking statements will prove to be accurate. The Company disclaims any obligation or undertaking to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made, except as required by law.
LCI INDUSTRIES
OPERATING RESULTS
(unaudited)
Three Months Ended
December 31,
Twelve Months Ended
December 31,
2023
2022
2023
2022
(In thousands, except per share amounts)
Net sales
$
837,544
$
894,346
$
3,784,808
$
5,207,143
Cost of sales
676,493
747,439
3,008,618
3,933,854
Gross profit
161,051
146,907
776,190
1,273,289
Selling, general and administrative expenses
158,430
169,944
652,762
720,261
Operating profit (loss)
2,621
(23,037
)
123,428
553,028
Interest expense, net
9,456
8,220
40,424
27,573
(Loss) income before income taxes
(6,835
)
(31,257
)
83,004
525,455
(Benefit) provision for income taxes
(4,458
)
(14,128
)
18,809
130,481
Net (loss) income
$
(2,377
)
$
(17,129
)
$
64,195
$
394,974
Net (loss) income per common share:
Basic
$
(0.09
)
$
(0.68
)
$
2.54
$
15.57
Diluted
$
(0.09
)
$
(0.68
)
$
2.52
$
15.48
Weighted average common shares outstanding:
Basic
25,342
25,327
25,305
25,372
Diluted
25,342
25,327
25,436
25,514
Depreciation
$
18,719
$
18,886
$
74,693
$
72,839
Amortization
$
14,231
$
14,360
$
57,075
$
56,373
Capital expenditures
$
12,149
$
26,893
$
62,209
$
130,641
LCI INDUSTRIES
SEGMENT RESULTS
(unaudited)
Three Months Ended
December 31,
Twelve Months Ended
December 31,
2023
2022
2023
2022
(In thousands)
Net sales:
OEM Segment:
RV OEMs:
Travel trailers and fifth-wheels
$
325,987
$
356,335
$
1,358,853
$
2,617,585
Motorhomes
62,952
77,441
269,356
339,097
Adjacent Industries OEMs
269,156
296,814
1,275,533
1,359,188
Total OEM Segment net sales
658,095
730,590
2,903,742
4,315,870
Aftermarket Segment:
Total Aftermarket Segment net sales
179,449
163,756
881,066
891,273
Total net sales
$
837,544
$
894,346
$
3,784,808
$
5,207,143
Operating (loss) profit:
OEM Segment
$
(11,725
)
$
(21,987
)
$
17,361
$
479,150
Aftermarket Segment
14,346
(1,050
)
106,067
73,878
Total operating profit (loss)
$
2,621
$
(23,037
)
$
123,428
$
553,028
Depreciation and amortization:
OEM Segment depreciation
$
14,557
$
15,075
$
58,397
$
58,166
Aftermarket Segment depreciation
4,162
3,811
16,296
14,673
Total depreciation
$
18,719
$
18,886
$
74,693
$
72,839
OEM Segment amortization
$
10,375
$
10,585
$
41,579
$
41,253
Aftermarket Segment amortization
3,856
3,775
15,496
15,120
Total amortization
$
14,231
$
14,360
$
57,075
$
56,373
LCI INDUSTRIES
BALANCE SHEET INFORMATION
(unaudited)
December 31,
2023
2022
(In thousands)
ASSETS
Current assets
Cash and cash equivalents
$
66,157
$
47,499
Accounts receivable, net
214,707
214,262
Inventories, net
768,407
1,029,705
Prepaid expenses and other current assets
67,599
99,310
Total current assets
1,116,870
1,390,776
Fixed assets, net
465,781
482,185
Goodwill
589,550
567,063
Other intangible assets, net
448,759
503,320
Operating lease right-of-use assets
245,388
247,007
Other long-term assets
92,971
56,561
Total assets
$
2,959,319
$
3,246,912
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Current maturities of long-term indebtedness
$
589
$
23,086
Accounts payable, trade
183,697
143,529
Current portion of operating lease obligations
36,269
35,447
Accrued expenses and other current liabilities
174,437
219,238
Total current liabilities
394,992
421,300
Long-term indebtedness
846,834
1,095,888
Operating lease obligations
222,680
222,478
Deferred taxes
32,345
30,580
Other long-term liabilities
107,432
95,658
Total liabilities
1,604,283
1,865,904
Total stockholders' equity
1,355,036
1,381,008
Total liabilities and stockholders' equity
$
2,959,319
$
3,246,912
LCI INDUSTRIES
SUMMARY OF CASH FLOWS
(unaudited)
Twelve Months Ended
December 31,
2023
2022
(In thousands)
Cash flows from operating activities:
Net income
$
64,195
$
394,974
Adjustments to reconcile net income to cash flows provided by operating activities:
Depreciation and amortization
131,768
129,212
Stock-based compensation expense
18,229
23,695
Deferred taxes
2,067
(9,277
)
Other non-cash items
7,716
3,496
Changes in assets and liabilities, net of acquisitions of businesses:
Accounts receivable, net
1,594
115,706
Inventories, net
235,347
117,419
Prepaid expenses and other assets
25,954
14,990
Accounts payable, trade
38,737
(161,121
)
Accrued expenses and other liabilities
1,622
(26,580
)
Net cash flows provided by operating activities
527,229
602,514
Cash flows from investing activities:
Capital expenditures
(62,209
)
(130,641
)
Acquisitions of businesses
(25,851
)
(108,470
)
Other investing activities
4,312
(2,679
)
Net cash flows used in investing activities
(83,748
)
(241,790
)
Cash flows from financing activities:
Vesting of stock-based awards, net of shares tendered for payment of taxes
(9,628
)
(10,961
)
Proceeds from revolving credit facility
248,900
1,128,400
Repayments under revolving credit facility
(464,822
)
(1,233,740
)
Repayments under shelf loan, term loan, and other borrowings
(61,099
)
(73,031
)
Payment of dividends
(106,336
)
(102,726
)
Payment of contingent consideration and holdbacks related to acquisitions
(31,857
)
(60,228
)
Repurchases of common stock
—
(24,054
)
Other financing activities
(1,342
)
1,469
Net cash flows used in financing activities
(426,184
)
(374,871
)
Effect of exchange rate changes on cash and cash equivalents
1,361
(1,250
)
Net increase (decrease) in cash and cash equivalents
18,658
(15,397
)
Cash and cash equivalents at beginning of period
47,499
62,896
Cash and cash equivalents at end of period
$
66,157
$
47,499
LCI INDUSTRIES
SUPPLEMENTARY INFORMATION
(unaudited)
Three Months Ended
Twelve Months Ended
December 31,
December 31,
2023
2022
2023
2022
Industry Data(1) (in thousands of units):
Industry Wholesale Production:
Travel trailer and fifth-wheel RVs
63.4
62.1
259.1
421.7
Motorhome RVs
10.1
12.4
45.9
58.4
Industry Retail Sales:
Travel trailer and fifth-wheel RVs
53.0
59.1
324.8
389.7
Impact on dealer inventories
10.4
3.0
(65.7
)
32.0
Motorhome RVs
7.7
9.0
44.3
48.3
Twelve Months Ended
December 31,
2023
2022
Lippert Content Per Industry Unit Produced:
Travel trailer and fifth-wheel RV
$
5,058
$
6,090
Motorhome RV
$
3,506
$
4,099
December 31,
2023
2022
Balance Sheet Data (debt availability in millions):
Remaining availability under the revolving credit facility (2)
$
245.3
$
306.5
Days sales in accounts receivable, based on last twelve months
30.1
27.5
Inventory turns, based on last twelve months
3.5
3.5
2024
Estimated Full Year Data:
Capital expenditures
$55 - $75 million
Depreciation and amortization
$130 - $140 million
Stock-based compensation expense
$20 - $25 million
Annual tax rate
24% - 26%
(1)
Industry wholesale production data for travel trailer and fifth-wheel RVs and motorhome RVs provided by the Recreation Vehicle Industry Association. Industry retail sales data provided by Statistical Surveys, Inc.
(2)
Remaining availability under the revolving credit facility is subject to covenant restrictions.
LCI INDUSTRIES
SUPPLEMENTARY INFORMATION
RECONCILIATION OF NON-GAAP MEASURES
(unaudited)
The following table reconciles net (loss) income to EBITDA.
Three Months Ended
December 31,
Twelve Months Ended
December 31,
2023
2022
2023
2022
(In thousands)
Net (loss) income
$
(2,377
)
$
(17,129
)
$
64,195
$
394,974
Interest expense, net
9,456
8,220
40,424
27,573
Provision for income taxes
(4,458
)
(14,128
)
18,809
130,481
Depreciation expense
18,719
18,886
74,693
72,839
Amortization expense
14,231
14,360
57,075
56,373
EBITDA
$
35,571
$
10,209
$
255,196
$
682,240
In addition to reporting financial results in accordance with U.S. GAAP, the Company has provided the non-GAAP performance measure of EBITDA to illustrate and improve comparability of its results from period to period. EBITDA is defined as net (loss) income before interest expense, net, provision for income taxes, depreciation expense, and amortization expense during the three and twelve month periods ended December 31, 2023 and 2022. The Company considers this non-GAAP measure in evaluating and managing the Company's operations and believes that discussion of results adjusted for these items is meaningful to investors because it provides a useful analysis of ongoing underlying operating trends. The measure is not in accordance with, nor is it a substitute for, GAAP measures, and it may not be comparable to similarly titled measures used by other companies.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240213522707/en/
Lillian D. Etzkorn, CFO
Phone: (574) 535-1125
E Mail: LCII@lci1.com
Source: LCI Industries
What were LCI Industries' net sales in the fourth quarter of 2023?
LCI Industries reported net sales of $838 million in the fourth quarter of 2023, showing a 6% decrease year-over-year.
What was the net loss in the fourth quarter of 2023?
The net loss in the fourth quarter of 2023 was $2 million, an improvement of 86% year-over-year.
How did the Aftermarket Segment perform in the fourth quarter of 2023?
The Aftermarket Segment net sales grew 10% year-over-year, and operating profit improved by $15 million.
What was LCI Industries' full year net income for 2023?
LCI Industries reported a net income of $64 million for the full year 2023, showing a decrease of 84% year-over-year.
What was the EBITDA for LCI Industries in the fourth quarter of 2023?
LCI Industries reported an EBITDA of $36 million in the fourth quarter of 2023, showing an increase of 248% year-over-year.
How did the North American RV wholesale shipments impact LCI Industries?
LCI Industries experienced a nearly 39% decrease in North American RV wholesale shipments, affecting sales performance.