LCI Industries (NYSE: LCII) reported Q1 EPS of $1.31, $0.11 worse than the analyst estimate of $1.42. Revenue for the quarter came in at $659.7 million versus the consensus estimate of $658.43 million.

First Quarter 2020 Highlights

• Net sales of $659.7 million in the first quarter, an increase of 11% year-over-year
• Net income declined $6.2 million, or 17.9%, to $28.2 million, or $1.12 per diluted share in the first quarter
• Adjusted net income declined $1.5 million, or 4.4%, to $32.9 million, or $1.31 per diluted share, in the first quarter, excluding a non-cash charge recognized in cost of sales related to the inventory fair value step-up for CURT, net of tax
• Adjusted EBITDA increased $8.9 million, or 13.5%, to $75.1 million in the first quarter
• Content per travel trailer and fifth-wheel RVs, adjusted to remove Furrion sales from prior periods, increased $89 year-over-year, or 3%, to $3,354 for the twelve months ended March 31, 2020
• Content per motorhome, adjusted to remove Furrion sales from prior periods, deceased $110 year-over-year, or 5%, to $2,327 for the twelve months ended March 31, 2020
• Adjacent industries OEM sales grew to $187.2 million, an increase of 10% year-over-year
• Aftermarket Segment sales grew to $127.3 million, an increase of 111% year-over-year
• International sales grew to $60.9 million, an increase of 81% year-over-year
• Completed the acquisition of Polyplastic Group for $95.8 million
• Quarterly dividend of $0.65 per share paid totaling $16.3 million

“We delivered an 11% increase in revenues during the first quarter of 2020, despite the about-face in demand that occurred late in the quarter. As we began the year, RV retail sales trended positively, largely outperforming industry expectations. In addition, our diversification strategy continued to bear fruit as we saw strong growth across our adjacent markets, aftermarket, and international businesses,” commented Jason Lippert, LCI Industries\' President and Chief Executive Officer. “I am incredibly proud of our team for not only its superior execution during the quarter, but also the quick reaction to adjust to the production halt at most of our OEM customers, as well as many of our facilities across North America and Europe. As the world changed before our eyes, we took the crucial steps to protect the health and safety of our team members and implement cost management initiatives in an effort to help mitigate long-term impacts to the business.”

“The long-term fundamentals of our business are strong. Summer travel plans are being significantly altered for most consumers as air travel, cruise ships, and hotels are likely going to be less popular, at least in the near term. As a result, the outdoor recreational products business is expected to accelerate. RVs and boats provide attractive alternatives to vacation more safely as families are eager to get out of the house. At the same time, RVing and boating offer a great solution to social distancing for families that want to travel the country and experience the great outdoors. In this new normal, our strong competitive position and innovative products have supported better-than-expected results for April as well as OEM orders already received for May,” continued Mr. Lippert. “In the near-term, we remain focused on navigating the current environment, advancing our diversification strategy, successfully integrating our latest acquisitions, and maintaining our investment in R&D. We feel confident we have the necessary infrastructure, balance sheet, and leadership to navigate this crisis and emerge a stronger company.”

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