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LCII NYSE· LCI Industries
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LCII NYSE· LCI Industries
Earnings report Q4 2023

LCII Reports Decrease in Revenue for Latest Quarter

Segments of revenue

LCII reported consolidated net sales of $3.8 billion for the year ended December 31, 2023. The company operates through its wholly-owned subsidiary, LCI, which supplies highly engineered components for leading OEMs in the recreation and transportation markets. The segments of revenue include sales to the RV industry, adjacent industries such as boats, buses, trailers, trucks, trains, and manufactured homes, as well as international sales.

Strengths

Despite a decrease in revenue, LCII demonstrated resilience in its financial performance. The company's gross profit for the year was $776.2 million, indicating a gross profit margin of 20.5%. This suggests that LCII effectively managed its cost of sales, resulting in a reasonable level of profitability. Additionally, the company's operating profit of $123.4 million reflects its ability to control selling, general, and administrative expenses. Management comments indicate that LCII implemented cost-saving measures and operational efficiencies to mitigate the impact of lower sales.

Challenges

LCII faced challenges in the latest quarter, as its net sales decreased by 27% compared to the previous year. This decline in revenue can be attributed to various factors, including the ongoing global supply chain disruptions, labor shortages, and the impact of the COVID-19 pandemic on the recreational vehicle industry. These challenges affected the demand for LCII's highly engineered components, leading to a decline in sales.

Noteworthy

It is worth noting that LCII's net income for the year ended December 31, 2023, was $64.2 million. This represents a significant decrease compared to the previous year's net income of $395 million. The provision for income taxes also increased, indicating a higher tax burden on the company's earnings. These factors further highlight the challenges faced by LCII in the latest quarter.

Summary

LCII experienced a decrease in revenue for the latest quarter, primarily driven by supply chain disruptions, labor shortages, and the impact of the COVID-19 pandemic on the recreational vehicle industry. However, the company demonstrated strengths in managing its cost of sales and controlling operating expenses, resulting in a reasonable level of profitability. LCII's financial performance reflects the broader challenges faced by the industry, and the company's ability to adapt and implement cost-saving measures will be crucial in navigating the current market conditions.

Source documents

Form 10-K  filed on Feb 23, 2024
113 pages scanned

Reference data

Company financials Q4 revenue 838M
Analyst estimates Q4 EPS missed by -106.56%
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