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Duncan Addition Part Of A Long-Term Strategy

August 20, 2014 by · Leave a Comment 

Lippert Components Inc. on Monday, (Aug. 18) announced its purchase of Elkhart, Ind.,-based Duncan Systems Inc., a distributor of replacement windshields, windows and awnings for the recreational vehicle and specialty truck markets, the Elkhart Truth reported in a follow-up story.

The acquisition marks Lippert’s long-term strategy to enter the lucrative RV aftermarket business and gives the company a foothold in the insurance claim market, which is a large part of Duncan’s business, said Lippert president Scott Mereness.

“We also like that they’re headquartered in Elkhart, which makes it easier for us to run and grow the business,“ Mereness said.

Duncan already distributes some Lippert-made windows, along with those made by other companies. Lippert’s control of the company should boost its window sales, Mereness said.

Mereness said the acquisition poses no threat to the livelihoods of Duncan’s roughly 60 workers, contrary to rumors swirling last week as word of the deal moved through the Duncan plant.

For the full story, click here.

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Drew Announces LCI’s Acquisition Of Duncan

August 18, 2014 by · Leave a Comment 

Screen Shot 2014-08-18 at 8.50.44 AMDrew Industries Inc. announced that its wholly owned subsidiary, Lippert Components Inc. (LCI), has acquired certain assets and the business of Duncan Systems Inc. which, like Drew and Lippert, is based in Elkhart, Ind.

Duncan Systems is a distributor of replacement motorhome windshields; RV, heavy truck and specialty vehicle glass and windows; and awnings — primarily to fulfill insurance claims. Sales of the acquired business for the 12 months ended July 2014 were approximately $26 million. LCI estimates the aftermarket for the products it currently sells is in excess of $350 million.

“Consistent with our long-term strategic plan, in the past few years we have increased our sales of aftermarket replacement parts to warehouse distributors and retail RV dealers, as well as through our online store,” said Drew President Scott Mereness. “Acquiring Duncan Systems, in addition to expected synergies, opens up a new aftermarket channel for us, enabling us to fulfill insurance claims for replacement parts. There are an estimated 9 million RVs on the road, creating a significant market opportunity for many of LCI’s products, and we want to be there with solutions for consumers at every stage of RV ownership. Further, we believe the additional relationships that Duncan Systems has in the heavy trucking and specialty vehicle markets, as well as the broadened customer base of existing RV owners, will help accelerate LCI’s aftermarket growth.”

The purchase price was $18 million, which was paid at closing from borrowings under the company’s $75 million line of credit, plus contingent consideration based on future sales. Drew expects the acquisition to be immediately accretive to earnings.

Brent Watson, president of Duncan Systems, entered into an employment agreement with LCI and will continue to manage the business going forward. “It really couldn’t be a better fit,” said Watson. “We are confident Lippert Components will invest in the business for the long term and strategically drive the business forward, as well as provide the opportunity to supply our existing customers with a broader line of replacement parts. For instance, our heavy trucking customers often need replacement mattresses, and joining the LCI team will allow us to offer an impressive range of mattresses, among other time-tested products.”

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RV Segment Lifts Drew to Record 2Q Revenue

August 1, 2014 by · Leave a Comment 

                                                                  Drew Industries Inc., parent to supplier Lippert Components Inc., saw an increase in net income for its second quarter, ended June 30, boosted by record sales including a 15% gain in RV revenue.

The company reported net income of $18.6 million, or 77 cents per diluted share, for the second quarter compared to $15.9 million, or 67 cents per diluted share the year prior. In connection with the sale of the aluminum extrusion-related assets in April 2014, the company recorded an after-tax charge of $1.2 million. Excluding this charge, net income in the second quarter of 2014 would have been $19.8 million, or 82 cents per diluted share.

Second-quarter sales increased to a quarterly record of $322 million, 12% higher than the 2013 second quarter. This sales growth was primarily the result strong performance by Drew’s RV segment, which accounted for 90% of consolidated net sales this quarter. Drew said that recently completed acquisitions added approximately $5 million in net sales during the period.

For the six months, sales totaled $607 million versus $539.8 million the year prior while net income was $34.8 million, or $1.46 per share, compared to $24.2 million, or $1.03 per share.

During the first six months of 2014, the RV industry produced more RVs than the full year of 2009. “The ability for the RV industry to more than double production capacity over the past several years is a testament to the resourcefulness of our customers and the tens of thousands of individuals employed by the industry,” said Jason Lippert, Drew’s CEO. “Staying ahead of the ever-changing demands of our customers is a primary business focus.”

“Towable RVs, and in particular lower-priced entry-level units, led the recovery in RV production so far. Although smaller entry units typically contain fewer of our products, we consider every new RV owner a long-term customer who in the future could purchase larger RVs which contain more of our products, creating a healthier RV industry over the long term. Motorhome RVs also experienced a strong recovery over the last couple years, creating a more significant opportunity for us to gain market share with our motorhome products.”

During July, Drew’s consolidated net sales reached approximately $98 million – 17% higher than July 2013 – as a result of continued growth in the company’s RV Segment. Excluding the impact of acquisitions, the company’s net sales for July 2014 were up approximately 13%.

The company’s operating profit margins in the second quarter of 2014, excluding the loss on sale of the aluminum extrusion-related assets, were 9.7%, compared to 9.2% in the second quarter of 2013, excluding executive succession. “Over the past several years, we have made investments in our business, which are continuing to benefit bottom-line results, and the results we experienced in the 2014 second quarter were consistent with our expectations,” said Drew President Scott Mereness. “We added capacity ahead of projected demand, which enabled us to efficiently fulfill customer orders as demand increased and leverage fixed costs over a larger sales base.

“In anticipation of future growth, we continue to expand and improve production capacity, investing in personnel and facilities in excess of current needs. As noted previously, we have recently entered into two new leases which will add more than 700,000 square feet of production and distribution capacity. While these capacity expansion initiatives have a short-term negative impact on margins, over the long term these investments should allow us to improve our operating results, as well as continue to improve our customer service and operating efficiencies. In addition, we have bolstered our administrative staff over the past several quarters, including the teams that were acquired through acquisitions and new employees hired in preparation for future growth and investment opportunities.”

During the second quarter, Drew completed the acquisition of Actuant Corp., gaining the Power Gear and Kwikee brands, and expanding its product offerings in leveling systems, slideout mechanisms and steps, primarily for motorhome RVs.

For the full report click here.

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Gero Replacing Abrams as Drew’s Chairman

May 29, 2014 by · Leave a Comment 

  Drew Industries Inc. today (May 28) announced that James F. Gero, a member of the company’s board since 1992, was appointed chairman.

He replaces Leigh J. Abrams, who held that position since May 2008. Abrams, a member of Drew’s board since 1984, will continue to serve as a director on Drew’s board, and has been given the honorary title of chairman emeritus.

“In the 22 years Jim has been a director of Drew, he has played a significant role in helping guide Drew from a small company to a market leader for RV and manufactured home components,” said Abrams. “We look forward to Jim’s leadership as we continue our strategic goals for long-term growth of the company.”

Gero noted, “I look forward to serving as chairman of the board and on behalf of my colleagues we want to express our appreciation and gratitude to Leigh for guiding us through a period of growth and navigating the company through a significant management transition. We look forward to his continuing contributions.”

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Drew Posts 13% Gain in 1st Quarter Revenues

May 1, 2014 by · Leave a Comment 

                                                                  Elkhart, Ind.-based Drew Industries Inc., a leading supplier of components for recreational vehicles and manufactured homes, today (May 1) reported that profits nearly doubled in its first quarter, boosted by a 13% increase in sales driven by strong performance in its RV segment.

First-quarter net income totaled $16.2 million, or 67 cents per diluted share, compared to net income of $8.4 million, or 36 cents per diluted share, the previous year. Net income for the 2013 first quarter was net of an after-tax charge of $0.7 million in connection with executive succession. Excluding this charge, net income in the first quarter of 2013 would have been $9.1 million, or 39 cents per diluted share.

Sales in the first quarter, ended March 31, increased to $285 million, 13% higher than the 2013 first quarter. This sales growth was primarily the result of a 16% sales increase by Drew’s RV segment, which accounted for 91% of consolidated net sales this quarter. Drew noted that the increase was in line with a 13% rise in industrywide shipments of travel trailers and fifth-wheels. In addition, sales of recently introduced components for towable and motorhome RVs increased, as did sales to adjacent industries and the aftermarket.

“After a slower than expected start to 2014 due to severe weather conditions, industrywide production of RVs, as well as shipments of our products, have rebounded in recent months,” said Jason Lippert, Drew CEO. “The increase in our net sales in February and March were largely due to the projected increased retail demand, but also included sales to OEM customers who were making up for production delays that occurred in January.”

In April 2014, Drew’s consolidated net sales reached approximately $113 million — 13% higher than April 2013 — as a result of continued solid growth in the company’s RV segment. Drew estimates that industrywide wholesale shipments of travel trailer and fifth-wheel RVs increased approximately 11% in April from a year ago.

“Our operating profit margins in the first quarter of 2014 were 9.1% compared to 5.4% in the first quarter of 2013,” said Scott Mereness, Drew president. “The 2014 first quarter operating profit margins were higher than the comparable period of 2013 largely due to efficiency improvements, declines in the costs of implementing facility consolidations and realignments, and the spreading of fixed costs over a larger sales base. In addition, the investments we have made in our business over the past several years are continuing to benefit our bottom-line results. We added capacity ahead of projected demand, which enabled us to efficiently fulfill customer orders as demand has increased.

“While certain capacity expansion plans may have a short-term negative impact on margins, over the long term these investments should allow us to improve our operating results, as well as continue to improve our customer service. Further, we are continuing to implement lean initiatives and automation where practical, and we are increasing our efforts to improve employee retention. We believe these efforts, combined with our continual evaluation of production capacity, will help us meet expected growth in customer demand, as well as improve operating efficiencies.”

Drew reported two acquisitions during the first quarter that did not have a significant impact on first-quarter results. Acquisitions includedInnovative Design Solutions (IDS), designer, developer and manufacturer of electronic systems, and Star Design, a manufacturer of thermoformed sheet plastic products for the RV, bus and specialty vehicle industries.

Mereness added, “In April 2014, we also entered into a six-year aluminum extrusion supply agreement, and concurrently sold certain of our aluminum extrusion assets. As part of our ongoing evaluation of capacity and asset utilization, we concluded that our aluminum extrusion assets were not meeting our internal financial standards. The sale of our extrusion-related assets will free up needed manufacturing space, as well as allow management to focus on other opportunities with higher growth and profit potential. We anticipate recording a pre-tax loss of approximately $2 million in the second quarter of 2014 on the sale of the aluminum extrusion-related assets. The outsourcing of these aluminum extrusion requirements will immediately be accretive to earnings.”

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Drew Industries Will Release 1Q Results May 1

April 18, 2014 by · Leave a Comment 

                                                                  Drew Industries Inc., a manufacturer of components for the recreational vehicle and manufactured housing industries, will release its first-quarter 2014 financial results before the market opens on May 1.

Drew will also host a conference call on May 1 at 11 a.m. EDT to discuss the results and other business matters. Participation in the question-and-answer session of the call will be limited to institutional investors and analysts. Individual investors, retail brokers and the media are invited to listen to a live webcast of the call on the Drew Industries website at www.drewindustries.com .

Participating in the conference call will be: , Chairman Leigh Abrams, CEO Jason Lippert, President Scott Mereness and CFO and Treasurer Joe Giordano.

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Drew Industries Finalizes Buyout of Star Design

March 17, 2014 by · Leave a Comment 

Drew Industries Inc., parent to suppliers Lippert Components Inc. and Kinro Inc., has completed the previously announced acquisition of certain assets and the business of Star Design LLC, an Elkhart, Ind.-based manufacturer of thermoformed sheet plastic products for the RV, bus and specialty vehicle industries.

According to a news release, the purchase price was $12.3 million, which was paid at closing from borrowings under Drew’s $75 million line of credit with JPMorgan Chase and Wells Fargo. After funding the acquisition, the company said it remains “well-positioned to take advantage of investment opportunities to further improve its results.”

“We are very excited about acquiring Star Design and adding their innovative products to our ever-growing product lineup,” said Scott Mereness, Drew’s president. “We expect to leverage our extensive marketing and distribution capabilities to continue to grow this business. Further, we expect this acquisition to be immediately accretive to Drew’s earnings.”

Lippert said it believes the additional product lines and diversified customer base will accelerate its expansion into specialty markets. Star Design has annual sales of approximately $10 million.

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Drew Industries Exceeds $1B in Revenue for ’13

February 13, 2014 by · Leave a Comment 

Drew Industries Inc, parent to RV and manufactured home suppliers Lippert Components Inc. and Kinro Inc., today (Feb. 13) reported a double-digit increase in sales for its fourth quarter – driven by strong performance in its RV segment – while topping $1 billion in revenue for the full year.

Sales in the fourth quarter increased to $225 million, 12% higher than the 2012 fourth quarter. Net income totaled $11.1 million, or 46 cents per diluted share, compared to $4.7 million, or 21 cents per diluted share.

Revenue for the year increased by $114 million to a record $1.02 billion from the year prior while net income rose to $50.1 million, or $2.11 per diluted share, from net income of $37.3 million, or $1.64 per diluted share.

Fourth-quarter sales growth was primarily the result of a 16% increase by Drew’s RV segment, which accounted for 88% of consolidated net sales this quarter. In addition, sales of recently introduced components for towable and motorhome RVs increased, as did sales to adjacent industries and the aftermarket.

“The retail demand for RVs in 2013 was the largest the industry has experienced since 2007,” said Jason Lippert, CEO for Elkhart, Ind.-based Drew. “The RV lifestyle continues to grow in popularity each year. Although the RV industry is sensitive to economic conditions, we are optimistic about the potential for continued long-term growth in retail demand for RVs. The strong industry fundamentals combined with our sales gains are positive signs for the future. We strive to maintain our position as a leading supplier to the industries we serve by staying ahead of the market through innovation and investing in customer support resources.”

For the year, Drew’s RV segment sales increased 14% compared to the 10% increase in industrywide wholesale shipments of travel trailers and fifth-wheel RVs. Sales growth in new markets and new products continued to be key factors in enabling Drew’s sales to exceed RV industry growth rates.

In addition, Drew continued to grow outside its core RV and manufactured housing markets, with aggregate net sales of components for adjacent industries increasing 20% to $121 million, and aftermarket net sales increasing 21% to $39 million. Together, these markets now account for 16% of consolidated net sales, an increase from 10%of consolidated net sales in 2010.

“Achieving our $1 billion sales milestone was a significant accomplishment for the company,” said Lippert. “As we look towards future sales growth, we continue to identify the areas where investments are needed for long-term profitable growth. A key area of focus for the past year was our employees, and in 2013 we made solid progress at reducing employee turnover. This year we are increasing our efforts to improve employee retention, which should further improve operating efficiencies. In addition, we continually evaluate our production capacity and while certain capacity expansion plans may have a short-term negative impact on margins, over the long term these investments should allow us to improve our operating results, as well as our industry-leading customer service.”

Drew noted that in January 2014, as a result of the negative impact of the severe winter weather conditions during the month on industrywide production of RVs and manufactured homes, as well as on shipments of the company’s products, Drew’s consolidated net sales were approximately $82 million, a decline of 3% from January 2013.

“As a result of the road and facility closures caused by the extreme weather conditions, industry-wide production schedules for January 2014 were delayed,” said Jason Lippert. “However, retail RV shows for the first part of 2014 have been strong, with reports of higher traffic and increased sales activity, and backlogs at our customers have increased from the prior year. As a result, we are optimistic that the production delays from January 2014 will be made up over the coming months. Further, based on open orders and scheduled shipments for February 2014, our net sales for the year to date February 2014 are projected to be ahead of the comparable period of 2013.”

For the full report click here.

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Drew Industries to Release 4Q Earnings Feb. 13

February 4, 2014 by · Leave a Comment 

Drew Industries Inc., parent to RV and MH suppliers Lippert Components Inc. and Kinro Inc., will release its fourth-quarter and year-end 2013 financial results before the market opens on Feb. 13.

The company will also host a conference call on Feb. 13 at 11 a.m. EDT to discuss the results and other business matters. Participation in the question-and-answer session of the call will be limited to institutional investors and analysts. Individual investors, retail brokers and the media are invited to listen to a live webcast of the call on the Drew Industries website at www.drewindustries.com .

Participating in the conference call will be: Chairman Leigh Abrams, CEO Jason Lippert, President Scott Mereness, and CFO/Treasurer Joe Giordano.

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Drew’s Board Approves Special Cash Dividend

November 25, 2013 by · Leave a Comment 

Drew Industries Inc., a announced that its board has approved a special cash dividend of $2 per share of common stock.

The dividend is payable on Jan. 6, 2014, to stockholders of record at the close of business on Dec. 20, 2013.

“We are pleased to demonstrate our continued commitment to shareholder value through this special dividend,” said Drew CEO Jason Lippert. “It reflects the board’s confidence in the Company’s consistent financial performance and in its long-term strategic goals.”

Joe Giordano, Drew’s CFO and treasurer, added, “Our strong balance sheet and consistent cash flow positions us to continue to successfully execute on our strategy to grow sales through acquisitions, greater market share, and innovative new products.”

 

 

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