Thu Feb 8, 2018
Citing overall growth in the RV industry, as well as the number of components in each RV unit sold, LCI Industries today reported a 36 percent year-over-year increase in fourth quarter sales and a record $2.1 billion in net sales for 2017.
"We exceeded $2.1 billion in net sales in 2017, just four years after reaching $1 billion," says Jason Lippert, LCI's chief executive officer. "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 company notes the record sales reflect industry-wide growth in wholesale shipments of towable and motorized RVs by manufacturers, which increased 20 percent and 16 percent, respectively, in the fourth quarter. The company's components per travel trailer and fifth-wheel for the year increased $241 to $3,263. The company's components per motorhome increased $208 to $2,219. The company cited organic growth, as well as new product introduction, in those increases.
"The RV industry growth trend in 2017 remained strong as wholesale RV shipments were up 19 percent in the fourth quarter," Lippert says. "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 percent higher than January 2017."
Retail demand in the RV industry is up 11 percent through November, as reported by Statistical Surveys, Inc, and will likely be revised upward in future months as various states report, the company notes. The Recreational Vehicle Industry Association’s current forecast for 2018 estimates a year-over-year increase of 3 percent to approximately 521,000 units.
"Strong industry growth and new products drove our 2017 growth," says LCI President Scott Mereness. "Our content per travel trailer and fifth-wheel increased 8 percent year-over-year, the largest annual increase since 2012, and our content per motorhome increased 10 percent 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."
Consolidated net sales for fourth quarter 2017 were $547 million, a 36 percent increase over 2016 fourth quarter net sales of $403 million. Net income in fourth quarter 2017 was $17.5 million, or $0.68 per diluted share, compared to net income of $26.3 million, or $1.05 per diluted share, in fourth quarter 2016. Net income in fourth quarter 2017 included a one-time non-cash charge of $13.2 million ($0.52 per diluted share) related to the estimated impact of the Tax Cuts and Jobs Act (the "TCJA"). Excluding the estimated impact of the TCJA, adjusted net income was $30.7 million, or $1.20 per diluted share, in the fourth quarter of 2017 compared to $26.3 million, or $1.05 per diluted share, in the fourth quarter of 2016, as referenced in the "Supplementary Information Non-GAAP Measures" section, the company states.