ELKHART, Ind., Feb. 8,
2018 /PRNewswire/ -- LCI Industries (NYSE: LCII) ("LCI", or the
"Company"), a supplier of components for the leading original
equipment manufacturers ("OEMs") of recreational vehicles ("RVs")
and adjacent industries, and the related aftermarkets of those
industries, today reported fourth quarter and full-year 2017
results.
"We exceeded $2.1 billion in net
sales in 2017, just four years after reaching $1 billion," stated Jason
Lippert, LCI's Chief Executive Officer. "We are achieving
record top and bottom line numbers, and we are doing it at a time
when labor and materials environments are particularly challenging.
Our continuing growth story is a testament to the focus of our more
than 11,000 team members."
"The RV industry growth trend in 2017 remained strong as
wholesale RV shipments were up 19 percent in the fourth quarter,"
continued Jason Lippert. "RV sales
momentum has continued as the industry attracts a new generation of
RV enthusiasts, supported by strong economic growth and the
expected economic tailwind of the recent tax law changes. Orders
appear to be strong going into 2018 as dealer sentiment remains
bullish, as evidenced by the recent Tampa RV show, and OEMs
continue to add capacity to meet demand. We also continue to see
strong growth in our aftermarket and adjacent market sales.
Aftermarket sales reached $171
million in 2017, up 31 percent from 2016. We remain
optimistic, as January 2018
consolidated net sales are approximately $205 million, 35 percent higher than January 2017."
"Strong industry growth and new products drove our 2017 growth,"
said Scott Mereness, LCI's
President. "Our content per travel trailer and fifth-wheel
increased 8 percent year-over-year, the largest annual increase
since 2012, and our content per motorhome increased 10 percent
year-over-year, representing our fourth straight year of
double-digit content growth for motorhomes. Recent acquisitions
contributed $42 million in net sales in 2017, and we
anticipate the recent acquisition of Taylor Made Group will add
revenue of $154 million in 2018."
Fourth Quarter 2017 Results
Consolidated net sales for the fourth quarter of 2017 were
$547 million, a 36 percent increase
over 2016 fourth quarter net sales of $403
million. Net income in the fourth quarter of 2017 was
$17.5 million, or $0.68 per diluted share, compared to net income
of $26.3 million, or $1.05 per diluted share, in the fourth quarter of
2016. Net income in the fourth quarter of 2017 included a one-time
non-cash charge of $13.2 million
($0.52 per diluted share) related to
the estimated impact of the Tax Cuts and Jobs Act (the "TCJA").
Excluding the estimated impact of the TCJA, adjusted net income was
$30.7 million, or $1.20 per diluted share, in the fourth quarter of
2017 compared to $26.3 million, or
$1.05 per diluted share, in the
fourth quarter of 2016, as referenced in the "Supplementary
Information Non-GAAP Measures" section.
The increase in year-over-year net sales reflects industry-wide
growth in wholesale shipments of towable and motorized RVs by OEMs,
which increased 20 percent and 16 percent, respectively, in the
fourth quarter of 2017, enhanced by solid growth in content per
unit and acquisitions. Net sales from acquisitions completed by the
Company over the twelve months ended December 31, 2017
contributed $20 million in the fourth
quarter of 2017. The organic growth rate was 31 percent for the
fourth quarter and acquisitions provided the remainder of the 36
percent increase. Through continued focus on aftermarket channels
for the Company's products, the Company increased net sales to the
aftermarket in the fourth quarter of 2017 by 36 percent to
$41 million.
The health of the RV industry is determined by retail demand,
which is up 11 percent through November, as reported by Statistical
Surveys, Inc, and will likely be revised upwards in future months
as various states report. Based on the retail sales strength
experienced through the first eleven months of 2017, as well as
sales order backlogs reported by RV OEMs at record levels, the
current outlook from several RV OEMs and their dealer networks
remains very positive. The RVIA's current forecast for 2018
estimates a year-over-year increase of three percent to
approximately 521,000 units.
The Company's content per travel trailer and fifth-wheel RV for
the twelve months ended December 31, 2017, increased
$241 to $3,263, compared to the twelve months ended
December 31, 2016, of $3,022.
This is the largest increase in five years for travel trailer and
fifth-wheel RV content. The Company's content per motorhome RV for
the twelve months ended December 31, 2017, increased
$208 to $2,219, compared to the twelve months ended
December 31, 2016, of $2,011.
The content increases are a result of organic growth, including new
product introductions.
2017 Full-Year Results
Consolidated net sales for the year ended December 31, 2017
increased to a record $2.1 billion,
28 percent higher than the net sales for the year ended
December 31, 2016 of $1.7
billion. Acquisitions completed by the Company in 2017 added
$42 million in net sales in 2017. An 18 percent increase in
industry-wide wholesale shipments of travel trailers and
fifth-wheel RVs, LCI's primary OEM market, as well as increased
content per RV unit, positively impacted net sales growth in 2017.
Further, the Company organically increased sales to adjacent
industries and the aftermarket.
Net income for the full-year 2017 increased to $132.9 million, or $5.24 per diluted share, up from net income
of $129.7 million, or $5.20 per diluted share, in 2016. Net income
in 2017 included a one-time non-cash charge of $13.2 million ($0.52 per diluted share) related to the estimated
impact of the TCJA. Excluding the estimated impact of the TCJA,
adjusted net income was $146.1
million, or $5.76 per diluted
share, in 2017 compared to $129.7
million or $5.20 per diluted
share in 2016, as referenced in the "Supplementary Information
Non-GAAP Measures" section.
Income Taxes
The Company's effective tax rate was 60 percent and 38 percent
for the quarter and year ended December 31,
2017, compared to 35 percent for the quarter and year ended
December 31, 2016. During the quarter
ended December 31, 2017, the Company
recorded a one-time non-cash charge of $13.2
million ($0.52 per diluted
share in the fourth quarter and $0.52
per diluted share in 2017) related to enactment of the TCJA which
resulted in the re-measurement of certain deferred tax assets using
the lower U.S. corporate income tax rate. Excluding the one-time
charge, the Company's effective tax rate was 30 percent and 31
percent for the quarter and year ended December 31, 2017, as referenced in the
"Supplementary Information Non-GAAP Measures" section.
The one-time charge related to the TCJA is a provisional amount
based on the Company's current estimates. The final impact of the
TCJA is subject to adjustment during the measurement period of up
to one year following the December
2017 enactment of the TCJA, as provided by recent SEC
guidance, and may differ materially due to factors such as further
revisions to the Company's calculations, changes in interpretations
and assumptions that the Company has made, additional guidance that
may be issued by the U.S. Government, and actions the Company may
take, among other items.
Balance Sheet and Other Items
At December 31, 2017, the Company's cash balance was
$26 million, a decrease of
$60 million from its cash balance of
$86 million at the beginning of the
year, primarily as a result of $61
million used for acquisitions, $87
million for capital expenditures and $51 million of dividend payments in 2017, offset
by operating cash flows. The Company's outstanding debt was
$50 million at December 31, 2017
and December 31, 2016.
Conference Call & Webcast
LCI will provide an online, real-time webcast of its fourth
quarter 2017 earnings conference call on the Company's website,
www.lci1.com/investors, on Thursday, February 8, 2018, at
11:00 a.m. Eastern time.
Institutional investors can access the call via the
password-protected site, StreetEvents (www.streetevents.com). A
replay of the call will be available for two weeks by dialing (855)
859-2056 and referencing access code 5989615. A replay of the
webcast will also be available on LCI's website until the next
quarterly conference call.
About LCI Industries
From over 60 manufacturing and distribution facilities located
throughout the United States and
in Canada, the United Kingdom, Ireland and Italy, LCI Industries, through its
wholly-owned subsidiary, Lippert Components, Inc., supplies,
domestically and internationally, a broad array of components for
the leading original equipment manufacturers of recreational
vehicles; buses; trailers used to haul boats, livestock, equipment
and other cargo; trucks; pontoon boats; trains; manufactured homes;
and modular housing. The Company also supplies components to the
related aftermarkets of these industries primarily by selling to
retail dealers, wholesale distributors and service centers. LCI's
products include steel chassis and related components; axles and
suspension solutions; slide-out mechanisms and solutions;
thermoformed bath, kitchen and other products; vinyl, aluminum and
frameless windows; manual, electric and hydraulic stabilizer and
leveling systems; furniture and mattresses; entry, luggage, patio
and ramp doors; electric and manual entry steps; awnings and awning
accessories; electronic components; televisions and sound systems;
navigation systems; backup cameras; appliances; and other
accessories. Additional information about LCI and its products can
be found at www.lci1.com.
Forward-Looking Statements
This press release contains certain "forward-looking statements"
with respect to our financial condition, results of operations,
business strategies, operating efficiencies or synergies,
competitive position, growth opportunities, acquisitions, plans and
objectives of management, markets for the Company's Common Stock
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 our future business prospects, net sales, expenses and
income (loss), cash flow, and financial condition, 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, pricing pressures
due to domestic and foreign competition, costs and availability of
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, employee benefits, employee 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, 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, 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, 2016, and in the Company's
subsequent filings with the Securities and Exchange Commission. 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.
LCI
INDUSTRIES
|
OPERATING
RESULTS
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended
|
|
Three Months
Ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
(In thousands,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
2,147,770
|
|
$
1,678,898
|
|
$
547,137
|
|
$
402,899
|
Cost of
sales
|
|
1,654,656
|
|
1,249,995
|
|
430,344
|
|
304,891
|
Gross
profit
|
|
493,114
|
|
428,903
|
|
116,793
|
|
98,008
|
Selling, general and
administrative expenses
|
|
278,833
|
|
228,053
|
|
72,608
|
|
57,412
|
Operating
profit
|
|
214,281
|
|
200,850
|
|
44,185
|
|
40,596
|
Interest expense,
net
|
|
1,437
|
|
1,678
|
|
275
|
|
393
|
Income before income
taxes
|
|
212,844
|
|
199,172
|
|
43,910
|
|
40,203
|
Provision for income
taxes
|
|
79,960
|
|
69,501
|
|
26,446
|
|
13,904
|
Net income
|
|
$
132,884
|
|
$
129,671
|
|
$
17,464
|
|
$
26,299
|
|
|
|
|
|
|
|
|
|
Net income per common
share:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
5.31
|
|
$
5.26
|
|
$
0.70
|
|
$
1.06
|
Diluted
|
|
$
5.24
|
|
$
5.20
|
|
$
0.68
|
|
$
1.05
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
25,020
|
|
24,631
|
|
25,094
|
|
24,805
|
Diluted
|
|
25,375
|
|
24,933
|
|
25,505
|
|
25,137
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
$
54,727
|
|
$
46,167
|
|
$
14,871
|
|
$
12,447
|
Capital
expenditures
|
|
$
87,221
|
|
$
44,671
|
|
$
26,879
|
|
$
22,744
|
LCI
INDUSTRIES
|
SEGMENT
RESULTS
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended
|
|
Three Months
Ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales:
|
|
|
|
|
|
|
|
|
OEM
Segment:
|
|
|
|
|
|
|
|
|
RV
OEMs:
|
|
|
|
|
|
|
|
|
Travel trailers and
fifth-wheels
|
|
$
1,405,983
|
|
$
1,099,882
|
|
$
360,518
|
|
$
263,248
|
Motorhomes
|
|
159,417
|
|
116,191
|
|
44,530
|
|
30,429
|
Adjacent industries
OEMs
|
|
411,223
|
|
332,018
|
|
100,850
|
|
78,930
|
Total OEM Segment net
sales
|
|
1,976,623
|
|
1,548,091
|
|
505,898
|
|
372,607
|
Aftermarket
Segment:
|
|
|
|
|
|
|
|
|
Total Aftermarket
Segment net sales
|
|
171,147
|
|
130,807
|
|
41,239
|
|
30,292
|
Total net
sales
|
|
$
2,147,770
|
|
$
1,678,898
|
|
$
547,137
|
|
$
402,899
|
|
|
|
|
|
|
|
|
|
Operating
Profit:
|
|
|
|
|
|
|
|
|
OEM
Segment
|
|
$
190,276
|
|
$
180,850
|
|
$
38,409
|
|
$
36,748
|
Aftermarket
Segment
|
|
24,005
|
|
20,000
|
|
5,776
|
|
3,848
|
Total operating
profit
|
|
$
214,281
|
|
$
200,850
|
|
$
44,185
|
|
$
40,596
|
LCI
INDUSTRIES
|
BALANCE SHEET
INFORMATION
|
(unaudited)
|
|
|
|
|
|
|
|
December
31,
|
|
|
2017
|
|
2016
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
|
$
26,049
|
|
$
86,170
|
Accounts receivable,
net
|
|
82,157
|
|
57,374
|
Inventories,
net
|
|
274,748
|
|
188,743
|
Prepaid expenses and
other current assets
|
|
34,125
|
|
35,107
|
Total current
assets
|
|
417,079
|
|
367,394
|
Fixed assets,
net
|
|
228,950
|
|
172,748
|
Goodwill
|
|
124,183
|
|
89,198
|
Other intangible
assets, net
|
|
130,132
|
|
112,943
|
Deferred
taxes
|
|
24,156
|
|
31,989
|
Other
assets
|
|
21,358
|
|
12,632
|
Total
assets
|
|
$
945,858
|
|
$
786,904
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Accounts payable,
trade
|
|
$
79,164
|
|
$
50,616
|
Accrued expenses and
other current liabilities
|
|
102,849
|
|
98,735
|
Total current
liabilities
|
|
182,013
|
|
149,351
|
Long-term
indebtedness
|
|
49,924
|
|
49,949
|
Other long-term
liabilities
|
|
61,176
|
|
37,335
|
Total
liabilities
|
|
293,113
|
|
236,635
|
Total stockholders'
equity
|
|
652,745
|
|
550,269
|
Total liabilities and
stockholders' equity
|
|
$
945,858
|
|
$
786,904
|
LCI
INDUSTRIES
|
SUMMARY OF CASH
FLOWS
|
(unaudited)
|
|
|
|
|
|
|
|
Twelve Months
Ended
|
|
|
December
31,
|
|
|
2017
|
|
2016
|
(In
thousands)
|
|
|
|
|
Cash flows from
operating activities:
|
|
|
|
|
Net income
|
|
$
132,884
|
|
$
129,671
|
Adjustments to
reconcile net income to cash flows provided by operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
|
54,727
|
|
46,167
|
Stock-based
compensation expense
|
|
20,036
|
|
15,420
|
Deferred
taxes
|
|
6,808
|
|
(2,598)
|
Other non-cash
items
|
|
4,062
|
|
1,540
|
Changes in assets and
liabilities, net of acquisitions of businesses:
|
|
|
|
|
Accounts receivable,
net
|
|
(12,601)
|
|
(13,899)
|
Inventories,
net
|
|
(78,698)
|
|
(7,856)
|
Prepaid expenses and
other assets
|
|
(10,898)
|
|
(15,553)
|
Accounts payable,
trade
|
|
20,727
|
|
18,800
|
Accrued expenses and
other liabilities
|
|
17,726
|
|
31,715
|
Net cash flows
provided by operating activities
|
|
154,773
|
|
203,407
|
Cash flows from
investing activities:
|
|
|
|
|
Capital
expenditures
|
|
(87,221)
|
|
(44,671)
|
Acquisitions of
businesses, net of cash acquired
|
|
(60,588)
|
|
(48,725)
|
Proceeds from note
receivable
|
|
1,500
|
|
2,000
|
Proceeds from sales
of fixed assets
|
|
467
|
|
698
|
Other investing
activities
|
|
(33)
|
|
(1,009)
|
Net cash flows used
for investing activities
|
|
(145,875)
|
|
(91,707)
|
Cash flows from
financing activities:
|
|
|
|
|
Exercise of
stock-based awards, net of shares tendered for payment of
taxes
|
|
(10,531)
|
|
2,574
|
Proceeds from line of
credit borrowings
|
|
28,130
|
|
81,458
|
Repayments under line
of credit borrowings
|
|
(28,130)
|
|
(81,458)
|
Payment of
dividends
|
|
(51,057)
|
|
(34,437)
|
Payment of contingent
consideration related to acquisitions
|
|
(7,372)
|
|
(4,944)
|
Other financing
activities
|
|
(59)
|
|
(1,028)
|
Net cash flows used
for financing activities
|
|
(69,019)
|
|
(37,835)
|
|
|
|
|
|
Net (decrease)
increase in cash and cash equivalents
|
|
(60,121)
|
|
73,865
|
|
|
|
|
|
Cash and cash
equivalents at beginning of period
|
|
86,170
|
|
12,305
|
Cash and cash
equivalents at end of period
|
|
$
26,049
|
|
$
86,170
|
LCI
INDUSTRIES
|
SUPPLEMENTARY
INFORMATION
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended
|
|
Three Months
Ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Industry
Data(1)(in thousands of units):
|
|
|
|
|
|
|
|
|
Industry Wholesale
Production:
|
|
|
|
|
|
|
|
|
Travel trailer and
fifth-wheel RVs
|
|
429.5
|
|
362.7
|
|
108.2
|
|
90.3
|
Motorhome
RVs
|
|
62.6
|
|
54.8
|
|
15.3
|
|
13.2
|
Industry Retail
Sales:
|
|
|
|
|
|
|
|
|
Travel trailer and
fifth-wheel RVs
|
|
396.0
|
(2)
|
352.7
|
|
66.1
|
(2)
|
58.3
|
Impact on dealer
inventories
|
|
33.5
|
(2)
|
10.0
|
|
42.1
|
(2)
|
32.0
|
Motorhome
RVs
|
|
52.4
|
(2)
|
46.8
|
|
9.8
|
(2)
|
9.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended
|
|
|
|
|
|
|
December
31,
|
|
|
|
|
|
|
2017
|
|
2016
|
LCI Content Per
Industry Unit Produced:
|
|
|
|
|
|
|
|
|
Travel trailer and
fifth-wheel RV
|
|
|
|
|
|
$
3,263
|
|
$
3,022
|
Motorhome
RV
|
|
|
|
|
|
$
2,219
|
|
$
2,011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
|
|
|
|
|
2017
|
|
2016
|
Balance Sheet
Data:
|
|
|
|
|
|
|
|
|
Current
ratio
|
|
|
|
|
|
2.3
|
|
2.5
|
Total indebtedness to
stockholders' equity
|
|
|
|
|
|
0.1
|
|
0.1
|
Days sales in
accounts receivable
|
|
|
|
|
|
17.8
|
|
15.8
|
Inventory turns,
based on last twelve months
|
|
|
|
|
|
7.7
|
|
7.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2018
|
Estimated Full Year
Data:
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
|
|
|
|
$ 70 - $ 80
million
|
Depreciation and
amortization
|
|
|
|
|
|
$ 65 - $ 70
million
|
Stock-based
compensation expense
|
|
|
|
|
|
$ 22 - $ 24
million
|
Annual tax
rate(3)
|
|
|
|
|
|
22% - 24%
|
(1)Industry wholesale production data for
travel trailer and fifth-wheel RVs and motorhome RVs provided by
the Recreation Vehicle Industry Association. Industry retail sales
data provided by Statistical Surveys, Inc.
(2)December 2017 retail sales data for RVs
has not been published yet, therefore 2017 retail data for RVs
includes an estimate for December 2017 retail units. Retail sales
data will likely be revised upwards in future months as various
states report.
(3)The
estimated annual tax rate for 2018 includes preliminary projections
for the impact of the Tax Cut and Jobs Act. The provisional
adjustment in 2017 and estimated impact on the 2018 annual tax rate
are subject to adjustment during the measurement period of up to
one year following the December 2017 enactment, as provided by SEC
guidance.
|
LCI
INDUSTRIES
|
SUPPLEMENTARY
INFORMATION
|
NON-GAAP
MEASURES
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
December 31, 2017
|
(In thousands,
except per share amounts)
|
|
Income before
income taxes
|
|
Provision for
income taxes
|
|
Net income
|
|
Effective tax
rate
|
|
Diluted
earnings per
share
|
As reported
GAAP
|
|
$
43,910
|
|
$
26,446
|
|
$
17,464
|
|
60%
|
|
$
0.68
|
Impact of
TCJA
|
|
-
|
|
(13,209)
|
|
13,209
|
|
(30)%
|
|
0.52
|
Adjusted non-GAAP
(3)
|
|
$
43,910
|
|
$
13,237
|
|
$
30,673
|
|
30%
|
|
$
1.20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve months ended
December 31, 2017
|
(In thousands,
except per share amounts)
|
|
Income before
income taxes
|
|
Provision for
income taxes
|
|
Net income
|
|
Effective tax
rate
|
|
Diluted
earnings per
share
|
As reported
GAAP
|
|
$
212,844
|
|
$
79,960
|
|
$
132,884
|
|
38%
|
|
$
5.24
|
Impact of
TCJA
|
|
-
|
|
(13,209)
|
|
13,209
|
|
(6)%
|
|
0.52
|
Adjusted non-GAAP
(4)
|
|
$
212,844
|
|
$
66,751
|
|
$
146,093
|
|
31%
|
|
$
5.76
|
Note: No Non-GAAP
adjustments were reported for the quarter and year ended December
31, 2016.
|
|
|
|
(4) During the fourth
quarter of 2017, the Company recorded a non-cash tax charge of
$13.2 million related to the enactment of the Tax Cuts and Jobs Act
(the "TCJA"). The charge resulted from the re-measurement of the
Company's deferred tax assets considering the TCJA's newly enacted
tax rates. This provisional amount is subject to adjustment during
the measurement period of up to one year following the December
2017 enactment of the TCJA, as provided by recent SEC guidance. In
addition to reporting financial results in accordance with U.S.
GAAP, the Company also provides non-GAAP measures that adjust for
the impact of enactment of the TCJA. This item represents a
significant charge that impacted the Company's financial results.
Net income, earnings per diluted share, and the effective tax rate
are all measures for which the Company provides the reported GAAP
measure and an adjusted measure. The adjusted measures are not in
accordance with, nor are they a substitute for, GAAP measures. The
Company considers these non-GAAP measures in evaluating and
managing the Company's operations. The Company believes that
discussion of results adjusted for this item is meaningful to
investors as it provides a useful analysis of ongoing underlying
operating trends. The determination of this item may not be
comparable to similarly titled measures used by other
companies.
|
View original
content:http://www.prnewswire.com/news-releases/lci-industries-reports-2017-fourth-quarter-and-full-year-results-300595475.html
SOURCE LCI Industries