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 .
Fri Aug 4, 2017
ELKHART, Ind. - LCI Industries has reported consolidated net sales in the second quarter of 2017 of $547 million, 24 percent higher than the 2016 second quarter net sales of $441 million. Net income was $40.1 million, or $1.59 per diluted share, for the second quarter ended June 30, compared to net income of $37.6 million, or $1.51 per diluted share, for the second quarter ended June 30, 2016.
The increase in year-over-year net sales reflects industry-wide growth in wholesale shipments of towable and motorized RVs by OEMs, which increased 17 percent and 11 percent, respectively, in the second quarter of 2017, enhanced by acquisitions completed by the company over the 12 months ended June 30, which added $17 million in net sales in the second quarter of 2017. Organic growth accounted for 20 of the 24 percent growth in consolidated net sales for the second quarter and growth from acquisitions provided the remainder. Through continued focus on aftermarket channels for the company's products, the company increased net sales to the aftermarket in the second quarter of 2017 by 32 percent to $45 million.
"The RV industry growth trend in 2017 remains strong as second quarter wholesale RV shipments were up 15 percent," LCI CEO Jason Lippert says. "RV sales momentum has continued as the industry attracts a new generation of RV enthusiasts, and orders appear to be strong going into the third quarter as dealer sentiment remains bullish and OEMs continue to add capacity to meet demand. Additionally, we continue to see strong growth in our Aftermarket sales."
The health of the RV industry is determined by retail demand, which is up 11 percent through May, as reported by Statistical Surveys, Inc, and will likely be revised upwards in future months as various states report. Based on the retail sales strength experienced through 2016 and midway through 2017, as well as sales order backlogs reported by RV OEMs at record levels, the current outlook from several RV OEMs and their dealer networks remains very positive. Additionally, the RVIA's current forecast of wholesale unit shipments of about 472,000 units has been revised upward from its original Fall forecast of 411,000 for the full year 2017. The RVIA's forecast for 2018 is estimated to increase an additional three percent to about 487,000.
The company's content per travel trailer and fifth-wheel RV for the 12 months ended June 30 increased $91 to $3,104, compared to the 12 months ended June 30, 2016, of $3,013. The company's content per motorhome RV for the 12 months ended June 30 increased $152 to $2,072, compared to the 12 months ended June 30, 2016, of $1,920. 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, according to a press release.
In July, LCI's consolidated net sales reached about $150 million, 27 percent higher than July 2016.
"As the industry prepares to meet the anticipated demand of the 2017 summer selling season, I am encouraged by July sales following up on a strong second quarter, and pleased to see Aftermarket sales up over 35 percent in July," Lippert says.
"Our operating profit in the second quarter of 2017 improved to $63 million, compared to $59.4 million in the second quarter of 2016," LCI President Scott Mereness says. "Strong industry growth and accretive acquisitions completed over the last year have contributed to profit growth for the quarter. We continue to focus on cost management and investments in lean initiatives and other operational efficiencies to further improve operating margin while supporting the growth of the business."
Balance Sheet and Other Items
At June 30, the company had a cash balance of $38 million, a decrease of $48 million from a cash balance of $86 million at the beginning of the year, primarily as a result of $68 million used for acquisitions, $43 million for capital expenditures and $25 million of dividend payments in the first six months of 2017.
Return on equity for the 12 months ended June 30 improved to 25 percent, from the 24.1 percent return on equity at June 30, 2016. Return on invested capital for the 12 months ended June 30 improved to 39 percent, from the 34.2 percent return on invested capital at June 30, 2016.
"For the first time in the company's history, we have reached $1 billion in revenue at the half-way point of the year; an extraordinary feat as we only reached $1 billion in total yearly revenue just over three years ago," Lippert says. "Our continuing growth story is a testament to the focus of our 9,000 team members."