LCI Industries (NASDAQ:LCII) stock rose 2.27% (As on January 23, 11:19:43 AM UTC-4, Source: Google Finance) after Jefferies downgraded the stock to Hold from Buy and lowered its $120 target price to $95, pointing to slowing RV demand. The consensus target is $126.89.
Meanwhile, consolidated net sales for the third quarter of 2022 were $1.1 billion, a decrease of three percent from 2021 third quarter net sales of $1.2 billion. Net income in the third quarter of 2022 was $61.4 million, or $2.40 per diluted share, compared to net income of $63.4 million, or $2.49 per diluted share, in the third quarter of 2021. EBITDA in the third quarter of 2022 was $119.8 million, compared to EBITDA of $118.0 million in the third quarter of 2021. The decrease in year-over-year net sales for the third quarter of 2022 was primarily driven by decreased North American RV wholesale shipments, partially offset by price realization, acquisitions, and an increase in net sales to OEMs in adjacent industries. Net sales from acquisitions completed in the twelve months ended September 30, 2022 contributed approximately $39 million in the third quarter of 2022. October 2022 consolidated net sales were approximately $345 million, down 24 percent from October 2021, demonstrating positive trends as the Company moves into the last quarter of 2022, a testament to diversification efforts which are helping to offset the deceleration experienced in North American RV production.
At September 30, 2022, the Company’s cash and cash equivalents balance was $23.4 million, compared to $62.9 million at December 31, 2021. The Company used $103.7 million for capital expenditures, $76.3 million for dividend payments to shareholders, and $55.7 million for acquisitions in the nine months ended September 30, 2022. The Company also made $156.1 million in net repayments under its revolving credit facility and $65.9 million in repayments under its shelf loan, term loan, and other borrowings in the nine months ended September 30, 2022.
The Company’s outstanding long-term indebtedness, including current maturities, was $1.1 billion at September 30, 2022, and the Company remained in compliance with its debt covenants.
Moreover, the operational improvements we’ve implemented over the last several years have enabled the company to nimbly balance capacity while maintaining the product quality, as wholesale RV production is expected to remain tempered in the near-term.