Lci Industries · NYSE:LCII
Lci Industries — Q1 2023 Earnings Presentation
13 slides from Lci Industries's earnings presentation, May 9, 2023
Slide 1: LCI Industries Q1 2023 Earnings Conference Call
LCI Industries Q1 2023 Earnings Conference Call May 9, 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: First Quarter 2023 Highlights
First Quarter 2023 Highlights Diversification providing stability as innovation continues to fuel content growth Financial Performance Executing on Diversification ■ Net sales of $973.3 million in the first ■ Resilience in Aftermarket, Marine, quarter, down 41% and other adjacencies supporting ■ Net
Slide 4: RV OEM
RV OEM Quarterly Performance • Current 2023 North American forecast of 310 - 330k wholesale units; 77,200 wholesale units shipped in Q1 2023 • Q1 2023 RV OEM sales down 62% YoY due to softened retail demand Content per Wholesale Unit • Travel trailer and fifth-wheel RV content of $5,881 for Q1 2023
Slide 5: Aftermarket
AFTERMARKET Quarterly Performance • Q1 2023 sales down 13% year over year, due to lower automotive aftermarket sales • Innovation driving ongoing portfolio expansion through technologically sophisticated products, catering to the new generation of RV enthusiasts • Increased spend during trade-up sea
Slide 6: Adjacent Markets
ADJACENT MARKETS Quarterly Performance • Q1 2023 Adjacent Industries sales up 1% YoY • Marine market’s historically stable production schedules will lead to less volatility amidst near-term declines Content per Power Boat • 3% decline in content per power boat (LTM basis), primarily due to pricing a
Slide 7: International Business
INTERNATIONAL BUSINESS Quarterly Performance • Q1 2023 sales down 1% YoY • Inventories are replenishing as supply chain constraints ease, enabling European customers to begin meeting pent-up demand • Maintaining focus on introducing popular European products in North American markets, including pop
Slide 8: Innovation as a Culture
INNOVATION AS A CULTURE Constant innovation continues to drive content expansion Independent Suspension ABS (Anti-Lock Braking System) The Fort Rockerball Cushion Hitch Quick Drop Stabilizer 5th Wheel Sliders OneControl Gooseneck Ball Continuously developing new product innovations to meet increasin
Slide 9: Growth Strategy
GROWTH STRATEGY Prioritizing ample liquidity and investments back into the company Allocating Capital to Areas with the Continue Execution of our Highest Growth Return Diversification Strategy • Reduce leverage • Lessen the impact from RV down cycles by further expanding market share in our Non-RV O
Slide 10: Q1 2023 Financial Performance
Q1 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 three months ended March 31 2023 2022 Cash and Cash Equivalents $23M $55M Remaining Availability under Revolving Credit $318M $130M Facility(1) Capital Expenditures $17M $42M Dividends $27M $23M Debt / Net Income (TTM) 5.2x 3.1x Net Debt/EBITDA (TTM) 2.4x(2)
Slide 12: Appendix: Reconciliation of Non-GAAP Measures
APPENDIX Reconciliation of Non-GAAP Measures EBITDA Three Months Ended March 31, ($ in thousands) 2023 2022 Net Income $ 7,259 $ 196,181 Interest Expense, Net 10,394 6,252 Provision for Income Taxes 2,390 67,268 Depreciation and Amortization 32,499 31,812 EBITDA $ 52,542 $ 301,513 EBITDA is a non-GA
Slide 13: Q&A
LCI INDUSTRIES Q&A 13