LCI Industries reported net sales of $2.1 billion for the full year, ended Dec. 31, capitalizing on strong industry growth coupled with the introduction of new products.
“We exceeded $2.1 billion in net sales in 2017, just four years after reaching $1 billion,” stated CEO Jason Lippert. “We are achieving record top and bottom line numbers, and we are doing it at a time when labor and materials environments are particularly challenging. Our continuing growth story is a testament to the focus of our more than 11,000 team members.”
“The RV industry growth trend in 2017 remained strong as wholesale RV shipments were up 19% in the fourth quarter,” continued Lippert. “RV sales momentum has continued as the industry attracts a new generation of RV enthusiasts, supported by strong economic growth and the expected economic tailwind of the recent tax law changes. Orders appear to be strong going into 2018 as dealer sentiment remains bullish, as evidenced by the recent Tampa RV show, and OEMs continue to add capacity to meet demand. We also continue to see strong growth in our aftermarket and adjacent market sales. Aftermarket sales reached $171 million in 2017, up 31 percent from 2016. We remain optimistic, as January 2018 consolidated net sales are approximately $205 million, 35% higher than January 2017.”
“Strong industry growth and new products drove our 2017 growth,” said Scott Mereness, LCI president. “Our content per travel trailer and fifth-wheel increased 8% year-over-year, the largest annual increase since 2012, and our content per motorhome increased 10% year-over-year, representing our fourth straight year of double-digit content growth for motorhomes. Recent acquisitions contributed $42 million in net sales in 2017, and we anticipate the recent acquisition of Taylor Made Group will add revenue of $154 million in 2018.”
Fourth Quarter 2017 Results
Consolidated net sales for the fourth quarter of 2017 were $547 million, a 36% increase over 2016 fourth quarter net sales of $403 million. Net income in the fourth quarter of 2017 was $17.5 million, or 68 cents per diluted share, compared to net income of $26.3 million, or $1.05 per diluted share, in the fourth quarter of 2016. The company noted that net income in the fourth quarter of 2017 included a one-time non-cash charge of $13.2 million related to the estimated impact of the Tax Cuts and Jobs Act (the “TCJA”).
The company’s content per travel trailer and fifth-wheel RV for the 12 months increased $241 to $3,263, compared to $3,022 last year. This is the largest increase in five years for travel trailer and fifth-wheel RV content. The company’s content per motorhome RV for the 12 months increased $208 to $2,219, compared $2,011 the previous year. The content increases are a result of organic growth, including new product introductions.
2017 Full-Year Results
Consolidated net sales for the full year increased to a record $2.1 billion, 28% higher than the net sales in the previous year of $1.7 billion. Acquisitions completed by the company in 2017 added $42 million in net sales in 2017. An 18% increase in industrywide wholesale shipments of travel trailers and fifth-wheel RVs, LCI’s primary OEM market, as well as increased content per RV unit, positively impacted net sales growth in 2017. Further, the company organically increased sales to adjacent industries and the aftermarket.
Net income for the full year increased to $132.9 million, or $5.24 per diluted share, up from net income of $129.7 million, or $5.20 per diluted share, in 2016. Net income in 2017 included a one-time non-cash charge of $13.2 million related to the estimated impact of the TCJA. Excluding the estimated impact of the TCJA, adjusted net income was $146.1 million, or $5.76 per diluted share, in 2017 compared to $129.7 million or $5.20 per diluted share in 2016, as referenced in the “Supplementary Information Non-GAAP Measures” section.
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