Lci Industries · NYSE:LCII
Lci Industries — Q2 2023 Earnings Presentation
13 slides from Lci Industries's earnings presentation, Aug 8, 2023
Slide 1: LCI Industries Q2 2023 Earnings Conference Call
LCI Industries Q2 2023 Earnings Conference Call August 8, 2023 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, business strategies, operating efficiencies or synergies, competitive position, growth opportunities, acquisitions, plans and objectives of manag
Slide 3: Second Quarter 2023 Highlights
Second Quarter 2023 Highlights Executing on discplined cost management and diversification to ensure stability Financial Performance Executing on Diversification ■ Net sales of $1.0 billion in the second ■ Resilience in Aftermarket, International, quarter, down 34% Marine, and other adjacencies ■ Ne
Slide 4: RV OEM
RV OEM Quarterly Performance • Current 2023 North American forecast of 290 - 310k wholesale units; 86,200 wholesale units shipped in Q2 2023 • Q2 2023 RV OEM sales down 55% YoY primarily due to softened retail demand • Destocking rates amongst dealers have begun to decelerate as inventories reach ap
Slide 5: Aftermarket
AFTERMARKET Quarterly Performance • Q2 2023 sales down 2% year over year, driven by inflationary pressures impacting consumer demand • Meaningful YOY margin expansion in Q2 driven by decreased commodity costs and targeted pricing increases • Innovation driving ongoing portfolio expansion through sop
Slide 6: Adjacent Markets
ADJACENT MARKETS Quarterly Performance • Q2 2023 Adjacent Industries sales down 6% YoY • Decrease driven by declines in the Marine market due to softening retail demand and reductions in OEM backlogs as dealer inventories have normalized • Strength in other adjacent markets such as transit have less
Slide 7: International Business
INTERNATIONAL BUSINESS Quarterly Performance • Q2 2023 sales up 6% YoY • Inventories are replenishing as supply chain constraints ease, enabling European OEMs to meet pent-up demand • Maintaining focus on introducing popular European products in North American markets, including window blinds, pop t
Slide 8: Innovation as a Culture
INNOVATION AS A CULTURE Constant innovation continues to drive content expansion Lewmar® Electric ABS (Anti-Lock Braking CURT® Enhanced Pin OneControl® Auto Independent Powered Shallow System) Box Solutions featuring True Course™ Suspension Water Anchor 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 • Lessen the impact from RV down cycles by further proje
Slide 10: Q2 2023 Financial Performance
Q2 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: Liquidity and Cash Flow
LIQUIDITY AND CASH FLOW As of and for the six months ended June 30 2023 2022 Cash and Cash Equivalents $22M $55M Remaining Availability under Revolving Credit $270M $287M Facility(1) Capital Expenditures $34M $71M Dividends $53M $50M Debt / Net Income (TTM) 11.1x 2.3x Net Debt/EBITDA (TTM) 3.4x(2) 1
Slide 12: Appendix: Reconciliation of Non-GAAP Measures
APPENDIX Reconciliation of Non-GAAP Measures EBITDA Three Months Ended June 30, ($ in thousands) 2023 2022 Net Income $ 33,426 $ 154,530 Interest Expense, Net 10,249 6,191 Provision for Income Taxes 11,499 58,068 Depreciation and Amortization 33,050 31,907 EBITDA $ 88,224 $ 250,696 EBITDA is a non-G
Slide 13: Q&A
LCI INDUSTRIES Q&A 13