LCI Industries (LCII) has reported 62.94 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $26.30 million, or $1.05 a share in the quarter, compared with $16.14 million, or $0.65 a share for the same period last year. Revenue during the quarter grew 20.55 percent to $402.90 million from $334.23 million in the previous year period. Gross margin for the quarter expanded 236 basis points over the previous year period to 24.33 percent. Total expenses were 89.92 percent of quarterly revenues, down from 92.94 percent for the same period last year. This has led to an improvement of 301 basis points in operating margin to 10.08 percent.
Operating income for the quarter was $40.60 million, compared with $23.61 million in the previous year period.
“2016 RV industry volume out-paced 2015 each quarter, as 2016 fourth quarter wholesale travel trailers were up nearly 24 percent and fifth-wheels were up over ten percent,” stated Jason Lippert, LCI’s Chief Executive Officer. “Travel trailer sales momentum has continued as the industry attracts a new generation of RV enthusiasts. We are also pleased to see fifth-wheel wholesale units increased approximately 1,900 units in the fourth quarter of 2016 and 5,400 units for the full year.”
Operating cash flow improves significantly
LCI Industries has generated cash of $203.41 million from operating activities during the year, up 114.07 percent or $108.39 million, when compared with the last year. The company has spent $91.71 million cash to meet investing activities during the year as against cash outgo of $66.12 million in the last year. It has incurred net capital expenditure of $43.97 million on net basis during the year, up 64.99 percent or $17.32 million from year ago.
The company has spent $37.84 million cash to carry out financing activities during the year as against cash outgo of $16.60 million in the last year period.
Cash and cash equivalents stood at $86.17 million as on Dec. 31, 2016, up 600.28 percent or $73.87 million from $12.30 million on Dec. 31, 2015.
Working capital increases sharply
LCI Industries has recorded an increase in the working capital over the last year. It stood at $218.04 million as at Dec. 31, 2016, up 28.58 percent or $48.46 million from $169.58 million on Dec. 31, 2015. Current ratio was at 2.46 as on Dec. 31, 2016, down from 2.72 on Dec. 31, 2015.
Debt remains almost stable
Total debt of LCI Industries remained almost stable for the quarter at $49.95 million, when compared with the last year period. Long-term debt of Drew Industries remained almost stable for the quarter at $49.95 million, when compared with the last year period. Total debt was 6.35 percent of total assets as on Dec. 31, 2016, compared with 8.01 percent on Dec. 31, 2015. Debt to equity ratio was at 0.09 as on Dec. 31, 2016, down from 0.11 as on Dec. 31, 2015.
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