NYSE$LCII

LCI Industries · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

LCI Industries reported a decrease in net sales and a net loss due to headwinds, primarily production shutdowns by OEMs, though diversification and operational flexibility helped mitigate the impact.

LCI Industries reported fourth-quarter net sales of $894.3 million, a decrease of 26% year-over-year, and a net loss of $17.1 million, a 121% decrease year-over-year. The decline was primarily driven by decreased North American RV wholesale shipments. However, full-year net sales reached a record $5.2 billion, up 16% year-over-year, with a net income of $395.0 million.

  • Net sales decreased by 26% year-over-year to $894.3 million due to a decline in North American RV wholesale shipments.
  • Net loss was $17.1 million, a significant decrease compared to the previous year's net income of $82.3 million.
  • Adjacent Industries OEM net sales increased by 3% year-over-year, showcasing diversification efforts.
  • The company incurred severance-related and inventory reserve costs during the quarter.

Headline financials

Total Revenue

$894M

Previous: $1.21B-26.3%
EPS (adj)

-$0.68

Previous: $3.22-121.1%
Capital Expenditures

$26.9M

Previous: $24.7M+9.0%
Free Cash Flow

$90.1M

Previous: -$149M+160.7%
Net Income

-$17.1M

Previous: $82.3M-120.8%
Operating Income

-$23M

Previous: $114M-120.2%
Gross Profit

$147M

Previous: $292M-49.7%
Cash & Equivalents

$47.5M

Previous: $62.9M-24.5%
Total Assets

$3.25B

Previous: $3.29B-1.3%
Stock-Based Comp

$3.13M

Previous: $6.87M-54.4%

Revenue & EPS history

LCI · Revenue · Quarterly

$894M

Q4 2022-26.3%vs Q4 2021
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

LCI · $894M total across 4 segments · Q4 2022

  • Travel Trailers and Fifth-Wheels
    $356M-46.2%
  • Adjacent Industries OEMs
    $297M+3.1%
  • Aftermarket Segment
    $164M-16.9%
  • Motorhomes
    $77.4M+17.5%

Forward guidance

LCI Industries anticipates production levels will normalize in 2023 and expects strong organic growth within RV, while believing the down cycle will be different than the last as its marine, adjacent, and aftermarket markets continue to support its diversification strategy.

Tailwinds

  • Production levels are anticipated to normalize in 2023.
  • Expects strong organic growth within RV.
  • Marine, adjacent, and aftermarket markets continue to support diversification strategy.
  • Experienced leadership team.
  • Flexible cost structure.

Headwinds

  • OEMs implemented production shutdowns.
  • Incurred severance-related and inventory reserve costs in the fourth quarter.
  • Macro-economic headwinds persist.
  • January 2023 consolidated net sales were down 48 percent from January 2022.
  • North American RV production declined approximately 80 percent compared to January 2022.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2022

Historical avgQ4 2022

+1.4%

Avg return

Earnings day

+1.4%

Avg return

5 days after

-0.4%

Avg return

30 days after

54%

35 / 65 earnings

Positive

+14.4%

Q2 2018

Best reaction

-13.7%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+4.9%+11.4%-10.1%
Q4 2025-0.9%-7.9%-23.8%
Q3 2025+5.7%+18.2%+25.7%
Q1 2025+6.0%+8.6%+12.4%
Q4 2024+5.7%+8.4%-14.2%
Q3 2024-3.1%-5.0%-1.5%
Q2 2024+6.8%+7.0%+9.0%
Q1 2024+8.4%+10.1%-0.7%
Q4 2023+4.5%-3.1%+6.8%
Q3 2023-2.9%-3.4%+1.9%
Q2 2023-7.1%-5.6%-12.8%
Q1 2023-5.9%-8.7%+4.8%
Q4 2022+1.2%+1.1%-7.2%
Q3 2022-13.7%-13.2%-6.6%
Q2 2022+2.7%+0.8%-10.6%
Q1 2022+0.5%+9.1%+8.1%
Q4 2021-2.2%+3.1%-8.4%
Q3 2021+5.3%+6.1%+10.9%
Q2 2021-1.2%+1.2%-3.5%
Q1 2021-2.2%-1.5%+0.6%
Q4 2020-5.6%-3.1%-4.1%
Q3 2020+3.3%+10.4%+18.2%
Q2 2020+3.9%-2.2%-9.7%
Q1 2020-7.7%-5.6%+14.1%
Q4 2019-1.6%-2.8%-34.3%
Q3 2019+2.7%+2.4%+0.1%
Q2 2019+7.3%+8.7%+1.7%
Q1 2019+3.7%+1.0%-4.1%
Q4 2018-1.3%+4.6%+0.9%
Q3 2018+13.7%+12.4%+11.6%
Q2 2018+14.4%+11.8%+5.8%
Q1 2018-1.7%-8.2%-13.1%
Q4 2017+3.3%+4.5%+0.3%
Q3 2017-3.7%-5.9%+5.8%
Q2 2017-4.1%-8.7%-4.8%
Q1 2017-6.2%-8.1%-8.9%
Q4 2016-1.9%-1.8%-7.8%
Q3 2016-1.5%+1.6%+17.9%
Q2 2016+4.2%+7.3%+14.3%
Q1 2016+10.9%
Q4 2015+5.2%
Q3 2015+0.7%
Q2 2015-4.0%
Q1 2015-2.9%
Q4 2014+11.5%
Q3 2014-1.9%
Q2 2014-5.0%
Q1 2014-0.2%
Q4 2013+6.5%
Q3 2013+3.2%
Q2 2013+5.1%
Q1 2013+1.7%
Q4 2012-7.4%
Q3 2012+0.8%
Q2 2012+11.9%
Q1 2011-1.8%
Q1 2012+3.0%
Q4 2009-0.8%
Q4 2011-0.8%
Q3 2011-3.4%
Q3 2010-3.4%
Q2 2010+4.2%
Q2 2011+4.2%
Q4 2010+4.2%
Q1 2010+14.1%

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