LCI Industries (NYSE:LCII) Q4 2018 Earnings Conference Call Transcript
Feb 07, 2019 • 11:00 am ET
Good day, ladies and gentlemen, and welcome to the LCI Industries Fourth Quarter and Year-end 2018 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will be given at that time.
As a reminder, today's conference is being recorded.
I would now look to turn the call over to Ms. Victoria Sivrais. Ma'am, you may begin.
Thank you, Victor. Good morning, everyone, and welcome to LCI Industries 2018 fourth quarter and year-end conference call.
I am joined on the call today by members of LCI's management team, including Jason Lippert, CEO and Director; and Brian Hall, CFO. Management will be discussing the results in just a moment, but first, I would like to inform you that certain statements made in today's conference call regarding LCI Industries and its operations may be considered forward-looking statements under the securities laws and involve a number of risks and uncertainties.
As a result, the company cautions you that there are a number of factors, many of which are beyond the company's control, which would cause actual results and events to differ materially from those described in the forward-looking statements. These factors are discussed in the company's earnings release, and in its annual report on Form 10-K and its other filings with the SEC. 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.
With that, I would like to turn the call over to Jason Lippert. Jason?
Thank you, and good morning, everyone and welcome to LCI's full year and fourth quarter 2018 earnings call. We are pleased to report a record annual revenues of approximately $2.5 billion, a 15% increase over last year, and fourth quarter's revenues that reached $537 million, which were down slightly from the prior year.
On a segment level, our OEM sales were down 4% to $486 million in the fourth quarter. I would note that while the industry and wholesale was down around 20% for the recent quarter, our sales were only down modestly due to the successful execution of our diversification strategy. Our focus on diversifying our business has been very intentional to first mitigate the cyclicality that we see in our RV business, and second, to leverage our expertise in sales and operations for other markets, where we believe our focus on innovation and broad product line ownership will drive market share gains and success like we've experienced in RV.
We remain confident that in the next four years, our RV segment can be less than 40% of our total business and our results to date are on track with that goal. For 2018, RV represented approximately 63% of our total revenues, down significantly from approximately 90% shortly after the last recession. We expect this growth in our other markets to be organic, as well as large gains through our M&A