The Recreation Vehicle Industry Association commissioned an Economic Impact Study on the RV industry, released on June 7, 2016. The study found that the RV industry contributes about $49.7 billion in economic output or 0.28 percent of the Gross Domestic Product. Through its production and distribution linkages, the industry impacts firms in 426 of the 440 sectors of the United States economy.
Nationwide, the industry is responsible for 216,170 jobs, both directly and inderectly, creating an economic impact of $37.5 billion. The full study results, along with each individual state and congressional district's economic impact is available on the website by clicking here .
Thu Feb 9, 2017
ELKHART, Indiana - LCI Industries has reported consolidated net sales in the fourth quarter of 2016 of $403 million, 21 percent higher than the 2015 fourth quarter net sales of $334 million.
Net income was $26.3 million, or $1.05 per diluted share, for the fourth quarter ended Dec. 31, 2016, compared to net income of $16.1 million, or $0.65 per diluted share, for the fourth quarter ended Dec. 31, 2015.
The increase in year-over-year net sales reflects industry-wide growth in wholesale shipments of towable and motorized RVs by OEMs, which increased 20 percent and 16 percent, respectively, in the fourth quarter of 2016, enhanced by acquisitions completed by the company in 2016, which added $17 million in net sales in the fourth quarter of 2016. Through continued focus on aftermarket channels for the company's products, the company increased net sales to the aftermarket in the fourth quarter of 2016 by more than 16 percent to $30 million.
"2016 RV industry volume out-paced 2015 each quarter, as 2016 fourth quarter wholesale travel trailers were up nearly 24 percent and fifth-wheels were up over ten percent," LCI CEO Jason Lippert says. "Travel trailer sales momentum has continued as the industry attracts a new generation of RV enthusiasts. We are also pleased to see fifth-wheel wholesale units increased approximately 1,900 units in the fourth quarter of 2016 and 5,400 units for the full year."
Lippert's content per travel trailer and fifth-wheel RV for the 12 months ended Dec. 31, 2016, increased $35 to $3,022, compared to the 12 months ended Dec. 31, 2015, of $2,987. The company's content per motorhome RV for the 12 months ended Dec. 31, 2016, increased $201, to $2,011, compared to the 12 months ended Decc 31, 2015, of $1,810. The content increases are a combined result of organic growth, including new product introductions, as well as acquisitions and changes in the types of RVs produced industry-wide.
Based on the retail sales strength experienced through 2016 and the current outlook from several RV OEMs and their dealer networks, RV OEMs have reported sale order backlogs at record levels.
In January 2017, LCI's consolidated net sales reached approximately $149 million, 18 percent higher than January 2016.
"As the industry prepares to meet the anticipated demand of the 2017 spring and summer selling seasons, I am encouraged by January sales following up on a strong fourth quarter," Lippert says.
"Our operating profit in the fourth quarter of 2016 improved to $40.6 million, compared to $23.6 million in the fourth quarter of 2015," LCI President Scott Mereness says. "Strong industry growth, lower costs for certain key commodities, accretive acquisitions completed over 2016 and a focus on cost management, lean initiatives and other operational efficiencies, all contributed to profit improvement for the quarter."
The effective tax rate for fiscal 2016 was slightly lower than in the comparable prior year periods, primarily as a result of higher tax credits.
Return on equity for the 12 months ended Dec. 31, 2016 improved to 26 percent, from 18.4 percent in the year-earlier period.
"We have built an organization with the best people and created a culture with core values that focus on meeting the challenge of providing value to our customers every day," Lippert says. "We will continue our efforts to develop, engineer and build great products, as well as improving our service to all customer channels, so that each day we are the supplier of choice for the industries we serve. Additionally, we will continue to seek expansion with new and innovative products, new customers, new markets and new geographies."
LCI will provide an online, real-time webcast of its fourth quarter 2016 earnings conference call on the company's website, www.lci1.com/investors, on Thursday, Feb. 9, 2017, at 11:00 a.m. Eastern time.
Institutional investors can access the call via the password-protected site, StreetEvents (www.streetevents.com). A replay of the call will be available for two weeks by dialing 888-525-0270 and referencing access code 63057473. A replay of the webcast will also be available on LCI's website until the next quarterly conference call.