Lci Industries · NYSE:LCII
Lci Industries — Q3 2019 Earnings Presentation
10 slides from Lci Industries's earnings presentation, Nov 5, 2019
Slide 1: LCI Industries Third Quarter 2019 Earnings Conference Call
LCI INDUSTRIES LCI Industries Third Quarter 2019 Earnings Conference Call November 5, 2019 1
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
LCI INDUSTRIES Forward-Looking Statements and Non-GAAP Financial Measures 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 opportuniti
Slide 3: Third Quarter 2019 Highlights
LCI INDUSTRIES Third Quarter 2019 Highlights Year-over-year growth in adjacent, aftermarket and international sales Delivered strong operating margin improvement across the business Generated traction through new product innovations, advancing sales penetration Executed on our diversification strate
Slide 4: RV OEM
LCI INDUSTRIES RV OEM • Volume challenges in RV OEM continues to impact performance ◦ RV OEM Q3 revenues down 9% YoY, due to double-digit wholesale shipment declines ◦ Further diversified net sales mix, with RV OEM now accounting for less than 59% of total net sales(1) • Organic growth drove improve
Slide 5: Expanding Markets
LCI INDUSTRIES Expanding Markets Executing on our diversification strategy to reach goal of 40% RV OEM by 2022 Aftermarket Adjacent Markets International • Seeing consistent and • Integration of Lewmar further increased • Further expanding European significant growth in aftermarket LCI’s market shar
Slide 6: Third Quarter 2019 Innovation Highlights
LCI INDUSTRIES Third Quarter 2019 Innovation Highlights Innovation: a critical part of our strategy • Q3 2019 marked a major milestone for OneControl, which now makes up 25% of the total market for digital RV platforms • Continuing to develop new and innovative products, including electric stabilize
Slide 7: Growth Strategy
LCI INDUSTRIES Growth Strategy Accelerating Track Record with M&A • Announced the acquisition of SureShade and further incorporated Lewmar, Lavet, and Ciesse into the business, expanding our presence internationally • Targeting acquisitions that are immediately accretive, with great leadership teams
Slide 8: Financial Performance
LCI INDUSTRIES Financial Performance Consolidated Net Sales Operating Margin (in thousands) $604,244 $586,221 8.4% 7.5% Third Quarter 2018 Third Quarter 2019 Third Quarter 2018 Third Quarter 2019 Consolidated Net Sales by Market (9%) +3% +16% +32% 8 RV OEM ADJACENT OEM AFTERMARKET INTERNATIONAL SEGM
Slide 9: Cash Flow
LCI INDUSTRIES Cash Flow Nine Months Ended September 30, 2019 Financial 2018 Financial ($ in millions) Performance Performance Capital Expenditures $47.8 $92.5 Dividends $47.5 $44.1 Debt / EBITDA 1.0x(1) 0.9x(2) Cash from Operating Activities $209.5 $107.6 (1) Debt of $262M divided by Earnings Befor
Slide 10: Q&A
LCI INDUSTRIES Q&A