LCI Industries(LCII)2024-08-06 15:07Financial Performance - Net income for the three months ended June 30, 2024, was 33,426,000 in the same period of 2023[8] - Total comprehensive income for the six months ended June 30, 2024, was 43,548,000 for the same period in 2023, reflecting a 112% increase[8] - Net income for the six months ended June 30, 2024, was 40.7 million in the same period of 2023, representing a growth of approximately 140%[8] - Consolidated net sales for Q2 2024 increased by 3.9% to 1.0 billion in the same period of 2023[90] - Net income for Q2 2024 was 2.40 per diluted share, compared to 1.31 per diluted share, for the same period of 2023[90] Cash and Liquidity - Cash and cash equivalents increased to 66,157,000 at the end of 2023, representing a 97% increase[10] - The Company has a 373.1 million available as of June 30, 2024[45] - Cash flows used in financing activities for the first six months of 2024 were 243.3 million in the same period of 2023, indicating a significant decrease[116] - As of June 30, 2024, the company had 373.1 million available under its revolving credit facility[109] Assets and Liabilities - Total assets reached 2,959,319,000 at the end of 2023, marking a 1.8% increase[10] - Total liabilities increased slightly to 1,604,283,000, a 0.8% rise[10] - Long-term indebtedness decreased to 846,834,000 at December 31, 2023, a reduction of 2.1%[10] Stockholder Equity and Dividends - Total stockholders' equity increased to 1,355,036,000, a rise of 2.9%[10] - The Company declared total dividends of 1.05[62] - Cash dividends paid were 1.05 per share[18] Segment Performance - The OEM Segment accounted for 77% of consolidated net sales for the six months ended June 30, 2024, with net sales of 1,517.2 million in the same period of 2023[67][71] - The Aftermarket Segment contributed 23% to consolidated net sales, generating 470.8 million in 2023[68][71] - Operating profit for the OEM Segment was 17.9 million in the same period of 2023, indicating significant growth[72] - The Aftermarket Segment's operating profit increased to 57.3 million in 2023[72] Inventory and Capital Expenditures - Total inventories decreased to 768.407 million at the end of 2023, indicating a reduction of approximately 10.5%[37] - Capital expenditures in the first six months of 2024 were 40.7 million[114] Operational Insights - The company operates over 110 manufacturing and distribution facilities across North America and Europe as of June 30, 2024[20] - Approximately 57% of net sales for the three months ended June 30, 2024, were generated outside the North American RV OEM market, indicating a diversification strategy[79] - The company continues to supply a broad array of engineered components for the recreation and transportation markets, including RVs, boats, and trailers[77] Market Conditions and Risks - Retail demand for travel trailers and fifth-wheel RVs decreased by 11% in the first six months of 2024 compared to the same period in 2023, primarily due to inflation and elevated interest rates[84] - Forward-looking statements indicate potential risks including commodity price fluctuations and market demand, which could impact future financial performance[126] Compliance and Governance - The Company maintained compliance with all financial covenants as of June 30, 2024, ensuring adherence to its credit agreement[117] - The company is evaluating the impact of new accounting standards effective after December 15, 2023, which may affect segment reporting and income tax disclosures[27][28]