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Business Wire
15-05-2025
- Business
- Business Wire
LCI Industries Declares Quarterly Cash Dividend and Announces Share Repurchase Authorization
ELKHART, Ind.--(BUSINESS WIRE)--LCI Industries (NYSE: LCII), a leading supplier of engineered components to the recreation and transportation markets, today announced that its Board of Directors approved a regular quarterly cash dividend of $1.15 per share of common stock and authorized a new $300 million stock repurchase program over the next three years. 'This stock repurchase program reflects the Board of Directors' and senior management's commitment to strategic capital deployment that enhances shareholder value, underscoring our confidence in LCI Industries' long-term growth strategy. Our strong operating cash flows, balance sheet, and borrowing capacity give us the flexibility to return capital to shareholders while investing in our business to drive growth and innovation, pursue strategic acquisitions, and maintain appropriate debt levels,' said Jason Lippert, LCI Industries' President and Chief Executive Officer. The timing of stock repurchases and the number of shares will depend upon the market conditions and other factors. Share repurchases, if any, will be made in the open market and in privately negotiated transactions in accordance with applicable securities laws. The stock repurchase program may be modified, suspended, or terminated at any time by the Board of Directors. Repurchases under the stock repurchase program will be funded from the Company's existing cash and cash equivalents, future cash flows, and its existing revolving line of credit. About LCI Industries LCI Industries (NYSE: LCII), through its Lippert subsidiary, is a global leader in supplying engineered components to the outdoor recreation and transportation markets. We believe our innovative culture, advanced manufacturing capabilities, and dedication to enhancing the customer experience have established Lippert as a reliable partner for both OEM and aftermarket customers. For more information, visit Forward-Looking Statements This press release contains certain "forward-looking statements" with respect to our financial condition, results of operations, profitability, margin growth, business strategies, operating efficiencies or synergies, competitive position, growth opportunities, acquisitions, plans and objectives of management, markets for the Company's common stock, the impact of legal proceedings, and other matters. Statements in this press release that are not historical facts are "forward-looking statements" for the purpose of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended, and involve a number of risks and uncertainties. Forward-looking statements, including, without limitation, those relating to production levels, future business prospects, net sales, expenses and income (loss), capital expenditures, tax rate, cash flow, financial condition, liquidity, covenant compliance, retail and wholesale demand, integration of acquisitions, R&D investments, commodity prices, addressable markets, and industry trends, whenever they occur in this press release are necessarily estimates reflecting the best judgment of the Company's senior management at the time such statements were made. There are a number of factors, many of which are beyond the Company's control, which could cause actual results and events to differ materially from those described in the forward-looking statements. These factors include, in addition to other matters described in this press release, the impacts of future pandemics, geopolitical tensions, armed conflicts, or natural disasters on the global economy and on the Company's customers, suppliers, employees, business and cash flows, pricing pressures due to domestic and foreign competition, costs and availability of, and tariffs on, raw materials (particularly steel and aluminum) and other components, seasonality and cyclicality in the industries to which we sell our products, availability of credit for financing the retail and wholesale purchase of products for which we sell our components, inventory levels of retail dealers and manufacturers, availability of transportation for products for which we sell our components, the financial condition of our customers, the financial condition of retail dealers of products for which we sell our components, retention and concentration of significant customers, the costs, pace of and successful integration of acquisitions and other growth initiatives, availability and costs of production facilities and labor, team member benefits, team member retention, realization and impact of expansion plans, efficiency improvements and cost reductions, the disruption of business resulting from natural disasters or other unforeseen events, the successful entry into new markets, the costs of compliance with environmental laws, laws of foreign jurisdictions in which we operate, other operational and financial risks related to conducting business internationally, and increased governmental regulation and oversight, information technology performance and security, the ability to protect intellectual property, warranty and product liability claims or product recalls, interest rates, oil and gasoline prices, and availability, the impact of international, national and regional economic conditions and consumer confidence on the retail sale of products for which we sell our components, and other risks and uncertainties discussed more fully under the caption "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2023, and in the Company's subsequent filings with the Securities and Exchange Commission. Readers of this press release are cautioned not to place undue reliance on these forward-looking statements, since there can be no assurance that these forward-looking statements will prove to be accurate. The Company disclaims any obligation or undertaking to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made, except as required by law.
Yahoo
12-02-2025
- Automotive
- Yahoo
LCI Industries Inc (LCII) Q4 2024 Earnings Call Highlights: Navigating Challenges with ...
Full Year Revenue: $3.7 billion, down 1% year-over-year. Fourth Quarter Revenue: $803 million, a decrease of 4% from Q4 2023. OEM Net Sales (Q4 2024): $621.6 million, down 6% from Q4 2023. RV OEM Net Sales (Q4 2024): $376 million, down 3% year-over-year. Aftermarket Net Sales (Q4 2024): $181.6 million, up 1% year-over-year. Adjacent Industries OEM Net Sales (Q4 2024): $245.5 million, down 9% year-over-year. Gross Margin (Q4 2024): 21.1%, up from 19.2% in Q4 2023. Operating Profit Margin (Q4 2024): 2%, a 170 basis point improvement from Q4 2023. GAAP Net Income (Q4 2024): $10 million or $0.37 per diluted share. EBITDA (Q4 2024): $46 million, a 29% increase year-over-year. Cash Flow from Operations (2024): $370 million. Net Debt (End of 2024): $591 million, 1.7 times pro forma EBITDA. January 2025 Sales: Up 6% year-over-year, with RV sales up 17%. Dividend Increase: 10% to $1.15 per share. Warning! GuruFocus has detected 6 Warning Signs with LCII. Release Date: February 11, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. LCI Industries Inc (NYSE:LCII) achieved a full-year revenue of $3.7 billion in 2024, demonstrating resilience despite a challenging RV and marine market. The company expanded its market leadership across top product categories, with a 7% organic growth in the automotive aftermarket. LCI Industries Inc (NYSE:LCII) increased EBITDA by $89 million through cost savings and operational improvements. The company successfully reduced net debt below 2 times EBITDA, generating $370 million in cash flow from operations. LCI Industries Inc (NYSE:LCII) reported a 17% increase in January RV sales, indicating a positive start to 2025. Consolidated net sales for the fourth quarter decreased by 4% compared to the same period in 2023. OEM net sales for the fourth quarter of 2024 were down 6% year-over-year. The marine market experienced a 15% decline in sales due to inflation and high interest rates impacting retail demand. The company faces a potential 50 basis point headwind from tariffs, which they are working to mitigate. There was a shift in unit mix towards lower content single axle travel trailers, impacting revenue negatively. Q: Can you provide an update on how tariffs, particularly on steel and aluminum, are impacting your outlook for the year? A: Jason Lippert, CEO: We haven't included any tariff impacts in our plan as it's still fluid. Our largest product, chassis, uses almost 99% domestic steel, so tariffs have minimal impact there. Overall, we estimate about a 50 basis point impact, which we believe we can mitigate through pricing and supplier cooperation. Q: How do you expect the mix of single axle trailers to trend this year, and what does that mean for content per unit? A: Jason Lippert, CEO: Single axle trailer production increased last year, but we expect it to normalize by Q2. Dealers are aware of the mix situation, and we anticipate a return to more typical production levels, which should stabilize content per unit. Q: Can you discuss the penetration and acceptance rates for your recent innovations like suspension systems and glass entry doors? A: Jason Lippert, CEO: Products like the Chill Cube and ABS are gaining traction, with ABS seeing double-digit growth in product placement. While more expensive products take longer to penetrate, we are seeing positive reception and expect continued growth. Q: What is your outlook for operating margins in 2025, considering potential tariff impacts and other factors? A: Lillian Etzkorn, CFO: We are not providing a specific margin target but expect incremental margins of about 25%. We are focused on cost reductions and expect reasonable margin improvements, despite the tariff overhang. Q: Can you provide more detail on your M&A pipeline and opportunities in the market? A: Jason Lippert, CEO: We have a robust M&A pipeline and are in discussions across our diversified businesses, including RV and marine. We are hopeful to execute some acquisitions this year as we have been conserving cash to maintain leverage targets. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
