Elkhart, Ind.-based component supplier LCI Industries reported consolidated net sales for the fourth quarter of 2018 were $536.6 million, a decline of 2% from 2017 fourth quarter net sales of $547.1 million.
Net income during the period was $20.2 million, or 80 cents per diluted share, compared to net income of $17.5 million, or 68 cents per diluted share, in the fourth quarter of 2017.
The company said the decrease in year-over-year net sales for the fourth quarter reflects lower RV wholesale shipments as dealers normalize their inventory levels, offset by continued growth in the company’s adjacent industries OEM, aftermarket and international markets.
For the full year, Lippert posted record net sales of $2.5 billion, an increase of 15% over the prior year net sales of $2.14 billion. Net income for the full year was $148.6 million, or $5.83 per diluted share, compared to 2017 net income of $132.9 million, or $5.24 per diluted share.
“We delivered another record year with net sales reaching nearly $2.5 billion, a year-over-year increase of 15%. Our strategy to diversify our business through adjacent markets, the aftermarket, and internationally is clearly paying off. We saw strong growth in each of these markets, as well as a substantial increase in content per vehicle in our RV OEM segment supporting our outperformance of the industry,” said LCI CEO Jason Lippert. “While we are confident in our ability to further execute on our strategy going forward, we are cognizant of the challenges that our business and industry have faced over the last twelve months. As such, we have taken a number of actions to enhance our business in a short-term lower volume environment, including price increases to offset tariffs and higher commodity pricing and scaling back capital expenditures to boost return on investment and cash flows. As we look to 2019, we are confident we will continue to deliver solid financial and operating performance as our entire team remains laser-focused on growth, penetrating new markets and driving more value to our customers through unmatched innovation.”
Other fourth quarter highlights included:
— Adjusted diluted EPS for the quarter of $0.82, excluding a one-time non-cash charge related to U.S. tax reform of $612,000 ($0.02 per diluted share)
— Quarterly dividend of $0.60 per share paid totaling $15.1 million
— Stock repurchase program authorized for up to $150 million of common stock.
Highlights for the full year included:
— GAAP diluted EPS of $5.83, including a one-time non-cash charge related to U.S. tax reform.
— Adjusted diluted EPS for the year of $5.86, excluding a one-time non-cash charge related to U.S. tax reform of $612,000 ($0.03 per diluted share).
— Content per travel trailer and fifth-wheel increased $187 year-over-year, or 6%, to $3,450 for the twelve months.
— Content per motorhome increased $272 year-over-year, or 12%, to $2,491 for the 12 months.
— Adjacent industries OEM sales grew to $614.6 million for the year, up 49% year-over-year.
— Aftermarket sales grew to $233.2 million for the year, up 36% year-over-year.
— International sales grew to $104.1 million in 2018, up 125% year-over-year.
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