Lci Industries · NYSE:LCII
Lci Industries — FY 2023 Earnings Presentation
14 slides from Lci Industries's earnings presentation, Feb 13, 2024
Slide 1: LCI Industries FY 2023 Earnings Conference Call
LCI Industries FY 2023 Earnings Conference Call February 13, 2024 1
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation contains certain “forward-looking statements” with respect to our financial condition, results of operations, profitability, margin growth, business strategies, operating efficiencies or synergies, competitive position, growth opportunities, acquisitions,
Slide 3: Fourth Quarter and Full Year 2023 Highlights
Fourth Quarter and Full Year 2023 Highlights Diversification and ample cash generation supporting stability Financial Performance Executing on Diversification ■ Full year net sales of $3.8 billion, down ■ Resilience in Aftermarket and international 27% year-over-year supporting performance amidst de
Slide 4: RV OEM - Net Sales
RV OEM - NET SALES Performance and Trends • 75,100 wholesale units shipped in Q4 2023, up sequentially over 73,300 in Q3 2023 • Q4 2023 RV OEM sales down 10% YoY • Current 2024 North American forecast of 325 - 350k wholesale units • January 2024 net sales up 13% over January 2023, reflecting positiv
Slide 5: Adjacent Industries OEM - Net Sales
ADJACENT INDUSTRIES OEM - NET SALES Performance and Trends • Q4 2023 Adjacent Industries sales down 9% YoY • Decrease primarily driven by declines in the Marine market due to inflation and elevated interest rates impacting retail consumers • Leveraging innovation to further expand Marine content thr
Slide 6: Aftermarket Segment
AFTERMARKET SEGMENT Performance and Trends • Q4 2023 sales up 10% year over year, as distribution channel inventories stabilized • Meaningful YOY margin expansion driven by decreased commodity costs and leveraging of fixed costs over larger sales and production volume • Sold 910K hitches in 2023, up
Slide 7: International Business - Net Sales
INTERNATIONAL BUSINESS - NET SALES Performance and Trends • Q4 2023 sales up 4% YoY • Maintaining focus on introducing popular European products in North American markets, including window blinds, pop top, and B-vans • International results include RV OEM, Adjacent Industries OEM, and Aftermarket ne
Slide 8: Innovation as a Culture
INNOVATION AS A CULTURE Constant innovation continues to drive long-term content expansion DoubleCOOL Acrylic ABS (Anti-Lock Braking CURT® Enhanced Pin OneControl® Auto Independent Cooling Solutions System) Box Solutions featuring True Course Suspension Furrion® 18K Chill Cube Solera® 3000 Off-Grid
Slide 9: Growth Strategy
GROWTH STRATEGY Prioritizing ample liquidity and investments back into the company Balanced Capital Allocation Strategy Continue Execution of our • Reduce leverage Diversification Strategy • Investment in the business, with focus on automation • Expanding market share in our Non-RV OEM projects chan
Slide 10: Q4 2023 Financial Performance
Q4 2023 FINANCIAL PERFORMANCE * Additional information regarding EBITDA, as well as reconciliation of this non-GAAP financial measure to the most directly comparable GAAP financial measure, is provided in the Appendix. 10
Slide 11: FY 2023 Financial Performance
FY 2023 FINANCIAL PERFORMANCE * Additional information regarding EBITDA, as well as reconciliation of this non-GAAP financial measure to the most directly comparable GAAP financial measure, is provided in the Appendix. 11
Slide 12: Liquidity and Cash Flow
LIQUIDITY AND CASH FLOW As of and for the twelve months ended December 31 2023 2022 Cash and Cash Equivalents $66M $47M Remaining Availability under Revolving Credit $245M $307M Facility(1) Capital Expenditures $62M $131M Dividends $106M $103M Debt / Net Income (TTM) 13.3x 2.8x Net Debt/EBITDA (TTM)
Slide 13: Appendix: Reconciliation of Non-GAAP Measures
APPENDIX Reconciliation of Non-GAAP Measures Three Months Ended Twelve Months Ended EBITDA December 31, December 31, ($ in thousands) 2023 2022 2023 2022 Net (loss) income $ (2,377) $ (17,129) $ 64,195 $ 394,974 Interest expense, net 9,456 8,220 40,424 27,573 (Benefit) provision for income taxes (4,
Slide 14: Q&A
LCI INDUSTRIES Q&A 14