LCI Industries reported consolidated net sales for its first quarter, ended March 31, were $592.2 million, a decline of 9% from 2018 first-quarter net sales of $650.5 million.
Net income in the first quarter totaled $34.4 million, or $1.38 per diluted share, compared to net income of $47.3 million, or $1.86 per diluted share, in the first quarter of 2018.
The decrease in year-over-year net sales for the first quarter reflects lower RV wholesale shipments as dealers normalize their inventory levels, offset by continued growth in the company’s adjacent industries, aftermarket and international markets.
Net sales from acquisitions completed by LCI over the 12 months ended March 31, contributed $31.2 million in the first quarter of 2019.
Other highlights include:
• Operating profit margin improved 260 bps from the fourth quarter of 2018 to 8.1%.
• Content per travel trailer and fifth-wheel increased $187 year-over-year, or 6%, to $3,504 for the 12 months.
• Content per motorhome increased $172 year-over-year, or 7%, to $2,500 for the 12 months.
• Adjacent industries OEM sales grew to $169.9 million for the quarter, up 19% year-over-year.
• Aftermarket sales grew to $60.4 million for the quarter, up 20% year-over-year.
• International sales grew to $33.6 million for the quarter, up 49% year-over-year.
•Quarterly dividend of $0.60 per share paid totaling $15 million.
“We continue to execute on our diversification strategy, which delivered high double-digit growth in our adjacent markets, aftermarket, and international sales together which now make up 39% of our last 12 months sales,” said LCI Industries Chief Executive Officer Jason Lippert “This strategy has proven critical in the current decreased volume operating environment in our recreational vehicle OEM segment, as it offset wholesale shipments that were down roughly 30 percent during the quarter as dealers continue to normalize inventory levels. We also remain steadfast in our efforts that are bearing fruit to enhance overall operational efficiencies to mitigate higher material costs, as operating margins, while lower year-over-year, outpaced our expectations during the first quarter.
“As we enter the prime retail selling season, we believe that channel inventories will move towards more appropriate levels by the end of the second quarter. In the meantime, we continue to pursue opportunities for content growth, acquisitions, and market share gains, and are confident our strong leadership position in RVs, as well as in our emerging businesses, will drive long-term shareholder value.”
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