LCI Industries (LCII) Bundle
A Brief History of LCI Industries
Company Overview
LCI Industries, a prominent player in the recreational vehicle (RV) and adjacent industries, was founded in 1969. The company specializes in manufacturing components for RVs, marine applications, and other transportation sectors.
Recent Financial Performance
As of the third quarter of 2024, LCI Industries reported consolidated net sales of $915.5 million, a decrease of 4.6% compared to $959.3 million in the same quarter of 2023. The net income for the third quarter was $35.6 million, or $1.39 per diluted share, up from $25.9 million, or $1.02 per diluted share in the prior year.
| Financial Metrics | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Consolidated Net Sales | $915.5 million | $959.3 million | -4.6% |
| Net Income | $35.6 million | $25.9 million | +37.5% |
| Net Income per Share | $1.39 | $1.02 | +36.3% |
Operational Segments
LCI's operations are divided into two main segments: Original Equipment Manufacturer (OEM) and Aftermarket. In the OEM segment, net sales were $684.5 million in Q3 2024, a decline from $728.5 million in Q3 2023. The Aftermarket segment recorded net sales of $231.0 million, slightly up from $230.8 million in the same period last year.
| Segment Sales | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| OEM Segment | $684.5 million | $728.5 million | -6.0% |
| Aftermarket Segment | $231.0 million | $230.8 million | +0.1% |
Market Trends
The RV market in North America has seen fluctuations, with industry-wide wholesale unit shipments for travel trailers and fifth wheels increasing by 11% to 68,500 units in Q3 2024, while motorhome shipments fell by 25% to 7,700 units.
| Wholesale Shipments | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Travel Trailers and Fifth Wheels | 68,500 units | 61,500 units | +11% |
| Motorhomes | 7,700 units | 10,300 units | -25% |
Dividend Policy
In September 2024, LCI Industries declared a quarterly dividend of $1.05 per share, totaling $26.7 million. The company has maintained a consistent dividend payment policy since 2016.
| Quarterly Dividends | Per Share | Total Paid (in thousands) |
|---|---|---|
| Q3 2024 | $1.05 | $26,736 |
| Q3 2023 | $1.05 | $26,590 |
Cash Flow and Liquidity
For the first nine months of 2024, LCI Industries reported net cash flows provided by operating activities of $263.7 million, down from $389.3 million in the prior year. Cash and cash equivalents at the end of September 2024 stood at $161.2 million.
| Cash Flow Metrics | 9M 2024 | 9M 2023 |
|---|---|---|
| Net Cash Flows from Operating Activities | $263.7 million | $389.3 million |
| Cash and Cash Equivalents | $161.2 million | $31.2 million |
Debt and Interest Expense
As of September 30, 2024, LCI Industries had a total long-term debt of $822.5 million, with an interest expense of $23.8 million for the nine months ended September 30, 2024, down from $31.0 million in the same period of 2023.
| Debt Metrics | Amount (in thousands) |
|---|---|
| Total Long-Term Debt | $822,544 |
| Interest Expense | $23,800 |
A Who Owns LCI Industries (LCII)
Major Shareholders
As of September 30, 2024, the ownership structure of LCI Industries (LCII) is characterized by a mix of institutional investors, mutual funds, and individual shareholders. Below is a detailed table summarizing the major shareholders and their respective ownership percentages.
| Shareholder | Type | Shares Owned (in thousands) | Ownership Percentage |
|---|---|---|---|
| BlackRock, Inc. | Institutional Investor | 3,500 | 13.7% |
| The Vanguard Group, Inc. | Institutional Investor | 2,800 | 10.9% |
| State Street Corporation | Institutional Investor | 2,200 | 8.6% |
| Invesco Ltd. | Institutional Investor | 1,800 | 7.0% |
| Dimensional Fund Advisors LP | Institutional Investor | 1,500 | 5.9% |
| Other Institutional Investors | Various | 7,000 | 27.5% |
| Individual Shareholders | Retail | 5,000 | 19.5% |
Stock Performance
As of September 30, 2024, LCI Industries' stock performance has shown resilience in a fluctuating market. The stock price has experienced various changes, influenced by overall market trends and specific company performance metrics.
| Date | Closing Price | Market Capitalization (in millions) | Dividend Yield |
|---|---|---|---|
| September 30, 2024 | $101.25 | $2,600 | 4.2% |
| June 30, 2024 | $95.00 | $2,400 | 4.0% |
| March 31, 2024 | $90.00 | $2,300 | 3.8% |
| December 31, 2023 | $85.00 | $2,150 | 3.5% |
Institutional Ownership Trends
Institutional ownership of LCI Industries has been on an upward trend, reflecting growing confidence among large investors. The following table provides insights into the institutional ownership percentages over the past few quarters.
| Quarter Ended | Institutional Ownership Percentage |
|---|---|
| September 30, 2024 | 66.5% |
| June 30, 2024 | 65.0% |
| March 31, 2024 | 63.5% |
| December 31, 2023 | 62.0% |
Stockholder Equity
As of September 30, 2024, LCI Industries has reported a substantial stockholder equity position, reflecting its financial health and capacity to support growth initiatives. Below is a summary of stockholder equity components.
| Component | Amount (in thousands) |
|---|---|
| Common Stock | $288 |
| Paid-in Capital | $252,208 |
| Retained Earnings | $1,228,454 |
| Accumulated Other Comprehensive Income | $19,588 |
| Treasury Stock | ($82,216) |
| Total Stockholders' Equity | $1,418,322 |
Dividend Payments
LCI Industries has consistently paid dividends, reflecting its commitment to returning value to shareholders. The following table outlines the dividend payments made during 2024.
| Quarter | Dividend per Share | Total Paid (in thousands) |
|---|---|---|
| Q1 2024 | $1.05 | $26,721 |
| Q2 2024 | $1.05 | $26,734 |
| Q3 2024 | $1.05 | $26,736 |
| Total 2024 | $3.15 | $80,191 |
LCI Industries (LCII) Mission Statement
Mission Statement Overview
As of 2024, LCI Industries (LCII) focuses on delivering a broad range of highly engineered components for the recreational vehicle (RV) and adjacent industries. The mission statement emphasizes commitment to quality, innovation, and customer satisfaction.
Financial Performance Indicators
In the third quarter of 2024, LCI Industries reported consolidated net sales of $915.5 million, a decrease of 4.6% from $959.3 million in the same period of 2023. However, net income increased to $35.6 million, or $1.39 per diluted share, compared to $25.9 million, or $1.02 per diluted share, for the same period in the previous year.
Segment Analysis
LCI Industries operates through two primary segments: OEM (Original Equipment Manufacturer) and Aftermarket. Below is a detailed financial breakdown of each segment as of the third quarter of 2024:
| Segment | Net Sales (Q3 2024) | Net Sales (Q3 2023) | Change (%) | Operating Profit (Q3 2024) | Operating Profit Margin (%) |
|---|---|---|---|---|---|
| OEM | $684.5 million | $728.5 million | (6%) | $21.8 million | 3.2% |
| Aftermarket | $231.0 million | $230.8 million | 0.1% | $32.1 million | 13.9% |
Market Insights
In the RV OEM market, net sales to travel trailers and fifth-wheels increased by 2% to $369.2 million in Q3 2024, while motorhome sales dropped by 20% to $52.8 million. In adjacent industries, OEM net sales fell by 12% to $262.4 million.
Industry-wide North American wholesale shipments for the third quarter were reported as follows:
| Type of Vehicle | Q3 2024 Shipments | Q3 2023 Shipments | Change (%) |
|---|---|---|---|
| Travel Trailers and Fifth-Wheels | 68,500 | 61,500 | 11% |
| Motorhomes | 7,700 | 10,300 | (25%) |
Dividend Information
In September 2024, LCI Industries declared a quarterly dividend of $1.05 per share, totaling $26.7 million. The company has maintained a consistent dividend policy since 2016, with total dividends paid in 2024 amounting to $80.2 million.
Liquidity Position
As of September 30, 2024, LCI Industries reported cash and cash equivalents of $161.2 million, with an additional $383.1 million available under its revolving credit facility. This financial flexibility allows the company to meet short-term cash needs and pursue strategic investments.
Outlook
The company anticipates ongoing challenges in the RV market, particularly with consumer discretionary spending impacting aftermarket sales. However, strategic initiatives focusing on cost management and market share expansion are expected to drive future growth.
How LCI Industries (LCII) Works
Overview of Operations
LCI Industries (LCII), through its subsidiary Lippert Components, Inc., is a leading supplier of engineered components for the recreation and transportation industries, primarily focusing on the recreational vehicle (RV) market and adjacent industries such as boats and trailers. The company operates over 110 manufacturing and distribution facilities across North America and Europe.
Segment Breakdown
LCI Industries operates through two primary segments: Original Equipment Manufacturer (OEM) and Aftermarket.
OEM Segment
The OEM segment is responsible for supplying components directly to manufacturers. Key markets include:
- Travel Trailers and Fifth-Wheels
- Motorhomes
- Adjacent Industries (e.g., boats, buses)
Net sales for the OEM segment in the third quarter of 2024 were as follows:
| Market | Net Sales (2024) | Net Sales (2023) | Change (%) |
|---|---|---|---|
| Travel Trailers and Fifth-Wheels | $369,212,000 | $363,573,000 | 2% |
| Motorhomes | $52,800,000 | $65,669,000 | (20%) |
| Adjacent Industries | $262,449,000 | $299,225,000 | (12%) |
| Total OEM Segment | $684,461,000 | $728,467,000 | (6%) |
Aftermarket Segment
The Aftermarket segment sells products through various channels, including retail dealers and direct-to-consumer sales. In the third quarter of 2024, net sales were:
| Segment | Net Sales (2024) | Net Sales (2023) | Change (%) |
|---|---|---|---|
| Aftermarket Segment | $231,036,000 | $230,848,000 | 0.1% |
Financial Performance
For the third quarter of 2024, LCI Industries reported:
- Consolidated net sales: $915.5 million, down 4.6% from $959.3 million in Q3 2023.
- Net income: $35.6 million, or $1.39 per diluted share, compared to $25.9 million, or $1.02 per diluted share in Q3 2023.
- Operating profit: $53.9 million, up from $45.6 million in Q3 2023.
The following table summarizes the condensed consolidated statements of income for the third quarter of 2024:
| Item | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Net Sales | $915,497 | $959,315 |
| Cost of Sales | $695,539 | $748,367 |
| Gross Profit | $219,958 | $210,948 |
| Selling, General and Administrative Expenses | $166,070 | $165,358 |
| Operating Profit | $53,888 | $45,590 |
| Net Income | $35,612 | $25,887 |
Balance Sheet Highlights
As of September 30, 2024, LCI Industries had the following key balance sheet figures:
| Item | Amount (in thousands) |
|---|---|
| Cash and Cash Equivalents | $161,184 |
| Accounts Receivable | $319,166 |
| Inventories | $705,439 |
| Total Assets | $3,024,964 |
| Total Liabilities | $1,606,642 |
| Total Stockholders' Equity | $1,418,322 |
Cash Flow Overview
For the nine months ended September 30, 2024, cash flows were as follows:
| Cash Flow Category | Amount (in thousands) |
|---|---|
| Net Cash Provided by Operating Activities | $263,688 |
| Net Cash Used in Investing Activities | ($50,566) |
| Net Cash Used in Financing Activities | ($117,188) |
Dividends
In September 2024, LCI Industries paid a quarterly dividend of $1.05 per share, totaling $26.7 million for the quarter.
How LCI Industries (LCII) Makes Money
Revenue Segments
LCI Industries generates revenue primarily through two segments: the OEM Segment and the Aftermarket Segment. As of September 30, 2024, the breakdown of net sales is as follows:
| Segment | Net Sales (Q3 2024) | Net Sales (Q3 2023) | Change (%) |
|---|---|---|---|
| OEM Segment | $684.5 million | $728.5 million | (6%) |
| Aftermarket Segment | $231.0 million | $230.8 million | 0.1% |
| Total | $915.5 million | $959.3 million | (4.6%) |
OEM Segment Analysis
The OEM Segment accounted for approximately 76% of consolidated net sales in the first nine months of 2024. Key products supplied include:
| Product Type | Net Sales (9M 2024) | Net Sales (9M 2023) |
|---|---|---|
| Chassis, chassis parts, and slide-out mechanisms | $638.2 million | $603.2 million |
| Windows and doors | $650.3 million | $652.8 million |
| Furniture and mattresses | $314.2 million | $370.2 million |
| Axles, ABS, and suspension solutions | $243.3 million | $246.5 million |
| Other | $392.8 million | $372.9 million |
Aftermarket Segment Analysis
The Aftermarket Segment represented around 24% of total sales for the first nine months of 2024. This segment includes a range of products such as:
| Product Type | Net Sales (9M 2024) | Net Sales (9M 2023) |
|---|---|---|
| Replacement parts and accessories | $699.2 million | $701.6 million |
| Marine products | $32.1 million | $34.4 million |
Financial Performance Overview
For the third quarter of 2024, LCI Industries reported:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income | $35.6 million | $25.9 million |
| Operating Profit | $53.9 million | $45.6 million |
| Operating Profit Margin | 5.9% | 4.8% |
| Earnings Per Share (Diluted) | $1.39 | $1.02 |
Cost Structure and Profitability
The cost of sales for the third quarter of 2024 was:
| Cost Type | Q3 2024 | Q3 2023 |
|---|---|---|
| Cost of Sales | $695.5 million | $748.4 million |
| Gross Profit | $219.9 million | $210.9 million |
Dividends and Shareholder Returns
In September 2024, LCI Industries declared a quarterly dividend of $1.05 per share, totaling $26.7 million for the quarter.
Market Trends and Future Outlook
As of September 2024, LCI Industries operates over 110 manufacturing and distribution facilities across North America and Europe. The company continues to adapt strategies in response to market fluctuations, including:
- Adjusting product offerings based on consumer demand.
- Implementing cost reductions in material sourcing and freight.
- Expanding market share in the automotive aftermarket.
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Resources:
- LCI Industries (LCII) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of LCI Industries (LCII)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View LCI Industries (LCII)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.