Following a year of unprecedented demand in the RV and marine markets, Lippert Components reported a record fourth quarter and full-year results.
The OEM component supplier said in a statement that net sales for the fourth quarter of 2020 rose to $783 million, a 39 percent increase compared with the same quarter of 2019. Net income increased nearly 70 percent to $48.7 million.
Lippert said strong demand in the RV market was a driver in the quarter, with OEM sales up 25 percent in the segment to $402.9 million. Adjacent OEM and aftermarket sales also saw growth. OEM sales were up 20 percent to $189.9 million, and aftermarket sales increased 129 percent to $157.3 million.
The company completed the acquisitions of Challenger Door and Veada Industries during the fourth quarter, and each are expected to contribute about $80 million of annual sales.
For the full year, consolidated net sales were $2.8 billion, an increase of 18 percent from 2019. Net income for 2020 was $158.4 million, or $6.27 per diluted share, compared with net income of $146.5 million, or $5.84 per diluted share, for 2019.
At 50.3 percent, the OEM segment contributed more than half of net sales for 2020, up from 42 percent in 2019.
Record RV demand, organic growth in Lippert’s aftermarket segment and the impact of acquisitions — net sales from acquisitions completed in 2019 and 2020 contributed approximately $375 million last year — were key factors in the full-year results, the company said.
“2020 proved to be a historic year for LCI Industries in many respects, starting with our response to the Covid-19 pandemic and related shutdowns and culminating with record annual net sales of $2.8 billion,” president and CEO Jason Lippert (pictured above) said in the statement. “This could not have been possible without the tremendous efforts of our team. They successfully navigated an unprecedented economic environment to capture incredible industry demand, while also working to mitigate supply chain and labor constraints that have impacted the wider RV and marine space.”
Lippert said the company expects demand to remain and that it will continue to diversify through acquisitions.
“We believe that retail tailwinds, which supported our growth in 2020, will remain elevated well into 2021 and beyond,” he said. “Strong demand for recreational products continues, bolstered by expanded accessibility from popular services like peer-to-peer rentals and remote work and school, along with the significant reduction in air travel, all of which draw more consumers into the outdoor lifestyle.”