LCI Industries Inc (LCII) Reports 15% Decrease in Net Sales and 58% Drop in Net Income for Q3 2023
LCI Industries Inc (NYSE:LCII) reported a 15% year-over-year decrease in net sales, amounting to $1.0 billion in Q3 2023.
Net income for the quarter was $26 million, marking a 58% drop compared to the same period last year.
EBITDA for Q3 2023 was $79 million, down 34% year-over-year.
The company's Aftermarket Segment and Adjacent Industries OEM net sales exceeded 56% of total net sales for the twelve months ended September 30, 2023.
LCI Industries Inc (NYSE:LCII) released its Q3 2023 earnings on November 7, 2023. The company reported a 15% year-over-year decrease in net sales, amounting to $1.0 billion. Net income for the quarter was $26 million, or $1.02 per diluted share, marking a 58% drop compared to the same period last year. EBITDA for Q3 2023 was $79 million, down 34% year-over-year.
Financial Highlights
The company's Aftermarket Segment and Adjacent Industries OEM net sales exceeded 56% of total net sales for the twelve months ended September 30, 2023. LCI Industries also reported a significant inventory reduction of $238 million year-to-date through September 30, 2023. Cash flows from operating activities amounted to $389 million year-to-date, and the company made net repayments of indebtedness of $211 million year-to-date. The company paid a quarterly dividend of $1.05 per share, totaling $27 million in the third quarter and $80 million year-to-date.
Company's Performance and Strategy
Despite the decrease in net sales and net income, the company's commitment to diversification and operational discipline continues to support its performance in a volatile macro environment. Jason Lippert, LCI Industries President and Chief Executive Officer, commented,
The strength we are seeing in our diversified businesses, highlighted by substantial margin expansion in Aftermarket, greatly contributes to the long-term growth and profitability prospects of Lippert, helping us weather challenges far better than if we competed solely in the RV OEM space."
Future Outlook
LCI Industries remains optimistic about its future performance. The company believes that its strong balance sheet, reinforced by the substantial inventory reductions made throughout the year, positions it well to manage through near-term challenges and capture growth opportunities once conditions improve.
Explore the complete 8-K earnings release (here) from LCI Industries Inc for further details.
This article first appeared on GuruFocus.
