Form 8-K - Current report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): November 7, 2023

LCI INDUSTRIES

(Exact name of registrant as specified in its charter)

Delaware

001-13646

13-3250533

(State or other jurisdiction of incorporation)

(Commission File Number)

(I.R.S. Employer
Identification No.)

3501 County Road 6 East,

Elkhart,

Indiana

46514

(Address of principal executive offices)

(Zip Code)

Registrant's telephone number, including area code:

(574)

535-1125

N/A

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):


☐			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐			Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $.01 par value	LCII	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition

On November 7, 2023, LCI Industries issued a press release setting forth LCI Industries' third quarter 2023 results. A copy of the press release is attached hereto as Exhibit 99.1.

An investor presentation that LCI Industries will refer to during its conference call to discuss the results is attached hereto as Exhibit 99.2 and will be posted on LCI Industries' investor relations website in advance of the call.

The foregoing information is furnished pursuant to Item 2.02, "Results of Operations and Financial Condition." Such information, including the Exhibits attached hereto, is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits

Exhibit Index:



99.1						Press Release dated November 7, 2023

99.2						Investor Presentation dated November 7, 2023

104						Cover Page Interactive Data File (embedded within the Inline XBRL document).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


LCI INDUSTRIES
(Registrant)

By: /s/ Lillian D. Etzkorn Lillian D. Etzkorn Chief Financial Officer

Dated:			November 7, 2023

Exhibit 99.1


FOR IMMEDIATE RELEASE
Contact: Lillian D. Etzkorn, CFO
Phone: (574) 535-1125
E Mail: LCII@lci1.com

LCI INDUSTRIES REPORTS THIRD QUARTER FINANCIAL RESULTS

Executing on diversification, operational improvements, and innovation

to drive long-term performance with continued strong performance in the Aftermarket Segment

Third Quarter 2023 Highlights

•Net sales of $1.0 billion in the third quarter, down 15% year-over-year

•Net income of $26 million, or $1.02 per diluted share, in the third quarter, down 58% year-over-year

•EBITDA of $79 million, down 34% year-over-year

•Continued execution of diversification strategy with Aftermarket Segment and Adjacent Industries OEM net sales exceeding 56% of total net sales for the twelve months ended September 30, 2023

•Inventory reduction of $238 million year-to-date through September 30, 2023

•Cash flows from operating activities of $389 million year-to-date through September 30, 2023

•Net repayments of indebtedness of $211 million year-to-date through September 30, 2023

•Quarterly dividend of $1.05 per share paid, totaling $27 million in the third quarter and $80 million year-to-date

Elkhart, Indiana - November 7, 2023 - LCI Industries (NYSE: LCII) which, through its wholly-owned subsidiary, Lippert Components, Inc. ("Lippert"), supplies a broad array of highly engineered components for the leading original equipment manufacturers ("OEMs") in the recreation, transportation products, and housing markets, and the related aftermarkets of those industries, today reported third quarter 2023 results.

“Our commitment to diversification and operational discipline continues to support our performance in a volatile macro environment. The strength we are seeing in our diversified businesses, highlighted by substantial margin expansion in Aftermarket, greatly contributes to the long-term growth and profitability prospects of Lippert, helping us weather challenges far better than if we competed solely in the RV OEM space,” commented Jason Lippert, LCI Industries’ President and Chief Executive Officer. “With our diverse set of manufacturing capabilities, continuous new product launches, and broad industry and customer portfolios serving as significant differentiators, we have continued to drive organic content growth even as we have seen selling prices decline. Just in the last four years, we have added sales of $0.9 billion from acquisitions and another $1 billion in organic sales growth. Further, through the investments made in our facilities and teams over the years, we have established strong manufacturing capabilities allowing us to develop deep customer relationships, solidifying Lippert’s position as a leader across the outdoor recreation space. Additionally, new business commitments for 2024 across our businesses total approximately $185 million. We believe these are tremendous organic growth and market share wins for next year.”

“We have an incredibly experienced team that has led our business through downturns like this one in the past and each time we have come out stronger as a result of their great leadership. With our strong balance sheet, reinforced by the substantial inventory reductions we have made throughout the year, we believe we are well-positioned to manage through near-term challenges and capture growth opportunities once conditions improve,” Lippert continued. “I want to thank all of the Lippert team members worldwide for their dedication and hard work this quarter as we navigate challenging conditions and focus on generating sustained value for all our stakeholders.”

Third Quarter 2023 Results

Consolidated net sales for the third quarter of 2023 were $1.0 billion, a decrease of 15% from 2022 third quarter net sales of $1.1 billion. Net income in the third quarter of 2023 was $25.9 million, or $1.02 per diluted share, compared to net income of $61.4 million, or $2.40 per diluted share, in the third quarter of 2022. EBITDA in the third quarter of 2023 was $78.9 million, compared to EBITDA of $119.8 million in the third quarter of 2022. Additional information regarding EBITDA, as well as a reconciliation of this non-GAAP financial measure to the most directly comparable GAAP financial measure of net income, is provided in the "Supplementary Information - Reconciliation of Non-GAAP Measures" section below.

The decrease in year-over-year net sales for the third quarter of 2023 was primarily driven by decreased North American RV wholesale shipments, lower North American marine production levels, and decreased selling prices which are indexed to select commodities, partially offset by acquisitions. Net sales from acquisitions completed in the twelve months ended September 30, 2023 contributed approximately $16.9 million in the third quarter of 2023.

October 2023 Results

October 2023 consolidated net sales were approximately $344 million, down 1% from October 2022, primarily due to an approximate 10% decline in North American RV wholesale shipments and an approximate 3% decline due to decreased selling prices which are indexed to select commodities compared to October 2022. October 2023 results were favorably impacted by our diversification efforts, including 15% growth in adjacent markets and 5% growth in the Aftermarket Segment compared to October 2022.

OEM Segment

OEM net sales for the third quarter of 2023 were $728.5 million, down 20% year-over-year, primarily driven by a 21% reduction in North American wholesale shipments, decreased selling prices which are indexed to select commodities, and lower North American marine production levels. Operating profit of the OEM Segment was $11.2 million in the third quarter of 2023, or 1.5% of net sales, compared to $65.2 million, or 7.1%, in the same period in 2022. The operating profit of the OEM Segment for the quarter was driven by decreased selling prices which are indexed to select commodities and the impact of fixed costs on reduced sales.

RV OEM

RV OEM net sales for the third quarter of 2023 were $429.2 million, down 26% compared to the same prior year period, driven by a 21% decline in North American wholesale shipments.

Adjacent Industries OEM

Adjacent Industries OEM net sales for the third quarter of 2023 were $299.2 million, down 11% year-over-year, primarily due to lower sales to North American marine OEMs. North American marine OEM net sales in the third quarter of 2023 were $72.5 million, down 42% year-over-year.

Aftermarket Segment

Aftermarket net sales for the third quarter of 2023 were $230.8 million, up 5% year-over-year, as distribution channel inventories stabilized. Operating profit of the Aftermarket Segment was $34.4 million in the third quarter of 2023, or 14.9% of net sales, compared to $22.4 million, or 10.2%, in the same period in 2022. The operating profit expansion of the Aftermarket Segment for the quarter was driven by decreased commodity costs and leveraging of fixed costs over larger sales and production volume.

Income Taxes

The Company's effective tax rate was 26.6% for the quarter ended September 30, 2023, compared to 23.9% for the quarter ended September 30, 2022. The rate was impacted by a decrease to the life insurance contract assets related to the deferred compensation plan.

Balance Sheet and Other Items

At September 30, 2023, the Company's cash and cash equivalents balance was $31.2 million, compared to $47.5 million at December 31, 2022. The Company used $79.7 million for dividend payments to shareholders, $50.1 million for capital expenditures, and $25.9 million for acquisitions in the nine months ended September 30, 2023. The Company also made $165.7 million in net repayments under its revolving credit facility and $45.8 million in repayments under its term loan and other borrowings in the nine months ended September 30, 2023.

The Company's outstanding long-term indebtedness, including current maturities, was $908.8 million at September 30, 2023, and the Company was in compliance with its debt covenants.

Conference Call & Webcast

LCI Industries will host a conference call to discuss its third quarter results on Tuesday, November 7, 2023, at 8:30 a.m. Eastern time, which may be accessed by dialing (833) 470-1428 for participants in the U.S. and (646) 904-5544 for participants outside the U.S. using the required conference ID 356208. Due to the high volume of companies reporting earnings at this time, please be prepared for hold times of up to 15 minutes when dialing in to the call. In addition, an online, real-time webcast, as well as a supplemental earnings presentation, can be accessed on the Company's website, www.investors.lci1.com.

A replay of the conference call will be available for two weeks by dialing (866) 813-9403 for participants in the U.S. and (929) 458-6194 for participants outside the U.S. and referencing access code 105381. A replay of the webcast will be available on the Company’s website immediately following the conclusion of the call.

About LCI Industries

LCI Industries, through its wholly-owned subsidiary, Lippert, supplies, domestically and internationally, a broad array of highly engineered components for the leading OEMs in the recreation, transportation products, and housing markets, consisting primarily of recreational vehicles and adjacent industries, including boats; buses; trailers used to haul boats, livestock, equipment, and other cargo; trucks; trains; manufactured homes; and modular housing. The Company also supplies engineered components to the related aftermarkets of these industries, primarily by selling to retail dealers, wholesale distributors, and service centers, as well as direct to retail customers via the Internet. Lippert's products include steel chassis and related components; axles and suspension solutions; slide-out mechanisms and solutions; thermoformed bath, kitchen, and other products; vinyl, aluminum, and frameless windows; manual, electric, and hydraulic stabilizer and leveling systems; entry, luggage, patio, and ramp doors; furniture and mattresses; electric and manual entry steps; awnings and awning accessories; towing products; truck accessories; electronic components; appliances; air conditioners; televisions and sound systems; tankless water heaters; and other accessories. Additional information about Lippert and its products can be found at www.lippert.com.

Forward-Looking Statements

This press release 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, plans and objectives of management, markets for the Company's common stock, the impact of legal proceedings, and other matters. Statements in this press release that are not historical facts are "forward-looking statements" for the purpose of the safe harbor provided by Section 21E of the

Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended, and involve a number of risks and uncertainties.

Forward-looking statements, including, without limitation, those relating to our future business prospects, net sales, expenses and income (loss), capital expenditures, tax rate, cash flow, financial condition, liquidity, covenant compliance, retail and wholesale demand, integration of acquisitions, R&D investments, commodity prices, and industry trends, whenever they occur in this press release are necessarily estimates reflecting the best judgment of the Company's senior management at the time such statements were made. There are a number of factors, many of which are beyond the Company's control, which could cause actual results and events to differ materially from those described in the forward-looking statements. These factors include, in addition to other matters described in this press release, the impacts of future pandemics, geopolitical tensions, armed conflicts, or natural disaster, on the Company's customers, suppliers, employees, business and cash flows, pricing pressures due to domestic and foreign competition, costs and availability of, and tariffs on, raw materials (particularly steel and aluminum) and other components, seasonality and cyclicality in the industries to which we sell our products, availability of credit for financing the retail and wholesale purchase of products for which we sell our components, inventory levels of retail dealers and manufacturers, availability of transportation for products for which we sell our components, the financial condition of our customers, the financial condition of retail dealers of products for which we sell our components, retention and concentration of significant customers, the costs, pace of and successful integration of acquisitions and other growth initiatives, availability and costs of production facilities and labor, team member benefits, team member retention, realization and impact of expansion plans, efficiency improvements and cost reductions, the disruption of business resulting from natural disasters or other unforeseen events, the successful entry into new markets, the costs of compliance with environmental laws, laws of foreign jurisdictions in which we operate, other operational and financial risks related to conducting business internationally, and increased governmental regulation and oversight, information technology performance and security, the ability to protect intellectual property, warranty and product liability claims or product recalls, interest rates, oil and gasoline prices, and availability, the impact of international, national and regional economic conditions and consumer confidence on the retail sale of products for which we sell our components, and other risks and uncertainties discussed more fully under the caption "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2022, and in the Company's subsequent filings with the Securities and Exchange Commission. Readers of this press release are cautioned not to place undue reliance on these forward-looking statements, since there can be no assurance that these forward-looking statements will prove to be accurate. The Company disclaims any obligation or undertaking to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made, except as required by law.

###

LCI INDUSTRIES

OPERATING RESULTS

(unaudited)


	Three Months Ended September 30,				Nine Months Ended September 30,				Last Twelve
	2023		2022		2023		2022		Months
(In thousands, except per share amounts)

Net sales	$	959,315	$	1,132,079	$	2,947,264	$	4,312,797	$	3,841,610
Cost of sales	748,367		879,025		2,332,125		3,186,415		3,079,564
Gross profit	210,948		253,054		615,139		1,126,382		762,046
Selling, general and administrative expenses	165,358		165,479		494,332		550,317		664,276

Operating profit	45,590		87,575		120,807		576,065		97,770
Interest expense, net	10,325		6,910		30,968		19,353		39,188
Income before income taxes	35,265		80,665		89,839		556,712		58,582
Provision for income taxes	9,378		19,273		23,267		144,609		9,139
Net income	$	25,887	$	61,392	$	66,572	$	412,103	$	49,443

Net income per common share:
Basic	$	1.02	$	2.41	$	2.63	$	16.23	$	1.95
Diluted	$	1.02	$	2.40	$	2.62	$	16.15	$	1.94

Weighted average common shares outstanding:
Basic	25,340		25,447		25,293		25,398		25,299
Diluted	25,504		25,600		25,405		25,520		25,434

Depreciation	$	18,857	$	17,989	$	55,974	$	53,953	$	74,860
Amortization	$	14,412	$	14,258	$	42,844	$	42,013	$	57,204
Capital expenditures	$	15,978	$	32,911	$	50,060	$	103,748	$	76,953

LCI INDUSTRIES

SEGMENT RESULTS

(unaudited)


	Three Months Ended September 30,				Nine Months Ended September 30,				Last Twelve
	2023		2022		2023		2022		Months
(In thousands)
Net sales:
OEM Segment:
RV OEMs:
Travel trailers and fifth-wheels	$	363,573	$	493,515	$	1,032,866	$	2,261,250	$	1,389,201
Motorhomes	65,669		82,922		206,404		261,656		283,845
Adjacent Industries OEMs	299,225		335,983		1,006,378		1,062,374		1,303,192
Total OEM Segment net sales	728,467		912,420		2,245,648		3,585,280		2,976,238
Aftermarket Segment:
Total Aftermarket Segment net sales	230,848		219,659		701,616		727,517		865,372
Total net sales	$	959,315	$	1,132,079	$	2,947,264	$	4,312,797	$	3,841,610

Operating profit:
OEM Segment	$	11,165	$	65,186	$	29,086	$	501,137	$	7,099
Aftermarket Segment	34,425		22,389		91,721		74,928		90,671


Total operating profit	$	45,590	$	87,575	$	120,807	$	576,065	$	97,770

Depreciation and amortization:
OEM Segment depreciation	$	14,835	$	14,213	$	43,840	$	43,090	$	58,915
Aftermarket Segment depreciation	4,022		3,776		12,134		10,863		15,945
Total depreciation	$	18,857	$	17,989	$	55,974	$	53,953	$	74,860

OEM Segment amortization	$	10,550	$	10,472	$	31,204	$	30,668	$	41,788
Aftermarket Segment amortization	3,862		3,786		11,640		11,345		15,416
Total amortization	$	14,412	$	14,258	$	42,844	$	42,013	$	57,204

LCI INDUSTRIES

BALANCE SHEET INFORMATION

(unaudited)


	September 30,		December 31,
	2023		2022
(In thousands)

ASSETS
Current assets
Cash and cash equivalents	$	31,242	$	47,499

Accounts receivable, net	338,847		214,262
Inventories, net	791,884		1,029,705
Prepaid expenses and other current assets	68,666		99,310
Total current assets	1,230,639		1,390,776
Fixed assets, net	472,518		482,185
Goodwill	579,912		567,063
Other intangible assets, net	462,412		503,320
Operating lease right-of-use assets	233,740		247,007

Other long-term assets	54,586		56,561
Total assets	$	3,033,807	$	3,246,912

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Current maturities of long-term indebtedness	$	566	$	23,086
Accounts payable, trade	198,914		143,529

Current portion of operating lease obligations	34,642		35,447
Accrued expenses and other current liabilities	179,894		219,238
Total current liabilities	414,016		421,300
Long-term indebtedness	908,245		1,095,888
Operating lease obligations	211,289		222,478
Deferred taxes	25,281		30,580
Other long-term liabilities	102,836		95,658
Total liabilities	1,661,667		1,865,904







Total stockholders' equity	1,372,140		1,381,008
Total liabilities and stockholders' equity	$	3,033,807	$	3,246,912

LCI INDUSTRIES

SUMMARY OF CASH FLOWS

(unaudited)


	Nine Months Ended September 30,
	2023		2022
(In thousands)
Cash flows from operating activities:
Net income	$	66,572	$	412,103
Adjustments to reconcile net income to cash flows provided by operating activities:
Depreciation and amortization	98,818		95,966
Stock-based compensation expense	14,027		20,564
Deferred taxes	—		(2,401)
Other non-cash items	4,611		1,174
Changes in assets and liabilities, net of acquisitions of businesses:
Accounts receivable, net	(121,914)		(18,128)
Inventories, net	246,155		26,508
Prepaid expenses and other assets	31,237		31,304
Accounts payable, trade	54,817		(82,054)
Accrued expenses and other liabilities	(5,060)		471
Net cash flows provided by operating activities	389,263		485,507
Cash flows from investing activities:
Capital expenditures	(50,060)		(103,748)
Acquisitions of businesses	(25,851)		(55,709)


Other investing activities	4,284		2,137
Net cash flows used in investing activities	(71,627)		(157,320)
Cash flows from financing activities:
Vesting of stock-based awards, net of shares tendered for payment of taxes	(9,591)		(10,805)
Proceeds from revolving credit facility	248,900		844,900
Repayments under revolving credit facility	(414,554)		(1,001,040)

Repayments under shelf loan, term loan, and other borrowings	(45,767)		(65,852)




Payment of dividends	(79,744)		(76,273)
Payment of contingent consideration and holdbacks related to acquisitions	(31,857)		(57,328)

Other financing activities	(834)		1,468
Net cash flows used in financing activities	(333,447)		(364,930)
Effect of exchange rate changes on cash and cash equivalents	(446)		(2,750)
Net decrease in cash and cash equivalents	(16,257)		(39,493)
Cash and cash equivalents at beginning of period	47,499		62,896
Cash and cash equivalents at end of period	$	31,242	$	23,403

LCI INDUSTRIES

SUPPLEMENTARY INFORMATION

(unaudited)


	Three Months Ended			Nine Months Ended
	September 30,			September 30,					Last Twelve
	2023		2022	2023			2022		Months
Industry Data(1) (in thousands of units):
Industry Wholesale Production:
Travel trailer and fifth-wheel RVs	61.5		73.3	195.7			359.6		257.7
Motorhome RVs	10.3		15.3	35.8			46.0		48.2
Industry Retail Sales:
Travel trailer and fifth-wheel RVs	91.1	(2)	106.0	271.4		(2)	330.6		330.5		(2)
Impact on dealer inventories	(29.6)	(2)	(32.7)	(75.7)		(2)	29.0		(72.8)		(2)
Motorhome RVs	11.4	(2)	12.3	36.5		(2)	39.3		45.5		(2)


				Twelve Months Ended
				September 30,
				2023			2022
Lippert Content Per Industry Unit Produced:
Travel trailer and fifth-wheel RV				$	5,192		$	5,862
Motorhome RV				$	3,705		$	3,807


				September 30,					December 31,
				2023			2022		2022
Balance Sheet Data (debt availability in millions):
Remaining availability under the revolving credit facility (3)				$	178.5		$	369.2	$	306.5
Days sales in accounts receivable, based on last twelve months				29.2			28.0		27.5
Inventory turns, based on last twelve months				3.3			3.8		3.5


				2023
Estimated Full Year Data:
Capital expenditures				$55 - $60 million
Depreciation and amortization				$130 - $135 million
Stock-based compensation expense				$18 - $20 million
Annual tax rate				24% - 26%

(1) Industry wholesale production data for travel trailer and fifth-wheel RVs and motorhome RVs provided by the Recreation Vehicle Industry Association. Industry retail sales data provided by Statistical Surveys, Inc.

(2) September 2023 retail sales data for RVs has not been published yet, therefore 2023 retail data for RVs includes an estimate for September 2023 retail units. Retail sales data will likely be revised upwards in future months as various states report.

(3) Remaining availability under the revolving credit facility is subject to covenant restrictions.

LCI INDUSTRIES

SUPPLEMENTARY INFORMATION

RECONCILIATION OF NON-GAAP MEASURES

(unaudited)

The following table reconciles net income to EBITDA.


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
(In thousands)
Net income	$	25,887	$	61,392	$	66,572	$	412,103
Interest expense, net	10,325		6,910		30,968		19,353
Provision for income taxes	9,378		19,273		23,267		144,609
Depreciation expense	18,857		17,989		55,974		53,953
Amortization expense	14,412		14,258		42,844		42,013
EBITDA	$	78,859	$	119,822	$	219,625	$	672,031

In addition to reporting financial results in accordance with U.S. GAAP, the Company has provided the non-GAAP performance measure of EBITDA to illustrate and improve comparability of its results from period to period. EBITDA is defined as net income before interest expense, net, provision for income taxes, depreciation expense, and amortization expense during the three and nine month periods ended September 30, 2023 and 2022. The Company considers this non-GAAP measure in evaluating and managing the Company's operations and believes that discussion of results adjusted for these items is meaningful to investors because it provides a useful analysis of ongoing underlying operating trends. The measure is not in accordance with, nor is it a substitute for, GAAP measures, and it may not be comparable to similarly titled measures used by other companies.

LCI Industries Q3 2023 Earnings Conference Call November 7, 2023 1

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 management, markets for the Company’s common stock, the impact of legal proceedings, and other matters. Statements in this presentation that are not historical facts are “forward-looking statements” for the purpose of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended, and involve a number of risks and uncertainties. Forward-looking statements, including, without limitation, those relating to the Company's future business prospects, net sales, expenses and income (loss), capital expenditures, tax rate, cash flow, financial condition, liquidity, covenant compliance, retail and wholesale demand, integration of acquisitions, R&D investments, commodity prices, and industry trends, whenever they occur in this presentation are necessarily estimates reflecting the best judgment of the Company's senior management at the time such statements were made. There are a number of factors, many of which are beyond the Company’s control, which could cause actual results and events to differ materially from those described in the forward-looking statements. These factors include, in addition to other matters described in this presentation, the impacts of future pandemics, geopolitical tensions, armed conflicts, or natural disaster, on the Company's customers, suppliers, employees, business and cash flows, pricing pressures due to domestic and foreign competition, costs and availability of, and tariffs on, raw materials (particularly steel and aluminum) and other components, seasonality and cyclicality in the industries to which we sell our products, availability of credit for financing the retail and wholesale purchase of products for which we sell our components, inventory levels of retail dealers and manufacturers, availability of transportation for products for which we sell our components, the financial condition of our customers, the financial condition of retail dealers of products for which we sell our components, retention and concentration of significant customers, the costs, pace of and successful integration of acquisitions and other growth initiatives, availability and costs of production facilities and labor, team member benefits, team member retention, realization and impact of expansion plans, efficiency improvements and cost reductions, the disruption of business resulting from natural disasters or other unforeseen events, the successful entry into new markets, the costs of compliance with environmental laws, laws of foreign jurisdictions in which we operate, other operational and financial risks related to conducting business internationally, and increased governmental regulation and oversight, information technology performance and security, the ability to protect intellectual property, warranty and product liability claims or product recalls, interest rates, oil and gasoline prices and availability, the impact of international, national and regional economic conditions and consumer confidence on the retail sale of products for which we sell our components, and other risks and uncertainties discussed more fully under the caption “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, and in the Company’s subsequent filings with the Securities and Exchange Commission, including the Company's Quarterly Reports on the 10-Q. Readers of this presentation are cautioned not to place undue reliance on these forward-looking statements, since there can be no assurance that these forward-looking statements will prove to be accurate. The Company disclaims any obligation or undertaking to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made, except as required by law. This presentation includes certain non-GAAP financial measures, such as EBITDA and net debt to EBITDA leverage. These non-GAAP financial measures should not be considered a substitute for the comparable GAAP financial measures. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measure are included in the presentation. 2

Generating Ample Cash to Strengthen the Balance Sheet ■ Inventory reductions that now total $238 million YTD, improving cash generation ■ Paid down $211 million in debt YTD, including $30 million prepayment of Term Loan principal in 3Q23 Third Quarter 2023 Highlights Financial Performance ■ Net sales of $1.0 billion in the third quarter, down 15% year-over-year ■ Net income of $26 million in the third quarter, down 58% year-over-year ■ EBITDA1 of $79 million in the third quarter, down 34% year-over-year Executing on diversification to enhance results and ensure stability Executing on Diversification ■ Resilience in Aftermarket and international supporting performance amidst declines in RV ■ Aftermarket and adjacent industries currently make up over half of total Company sales ■ In the last 4 years, we have added $0.9 billion of sales from acquisitions Content per Wholesale Unit ■ Travel trailer and fifth-wheel RV content of $5,192 for Q3 2023 ■ Focus on innovation has supported LCI's long-term market share expansion 3 1 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 2 For twelve months ended September 30, 2023

Quarterly Performance • Current 2023 North American forecast of 295 - 305k wholesale units; 73,300 wholesale units shipped in Q3 2023 • Q3 2023 RV OEM sales down 26% YoY primarily due to softened retail demand • Retail continues to outpace wholesale shipments, demonstrating disciplined production from OEMs RV OEM RV Wholesale/Retail/Inventory Change Retail Wholesale Inventory Linear (Inventory) Q41 9 Q12 0 Q22 0 Q32 0 Q42 0 Q12 1 Q22 1 Q32 1 Q42 1 Q12 2 Q22 2 Q32 2 Q42 2 Q12 3 Q22 3 Q32 3 0 50,000 100,000 150,000 200,000 250,000 (80,000) (60,000) (40,000) (20,000) — 20,000 40,000 60,000 80,000 Content per Wholesale Unit • Travel trailer and fifth-wheel RV content of $5,192 for Q3 20231, down 11% over the comparable prior year period • Motorhome content of $3,705 for Q3 2023 (LTM basis), down 3% 4 $576,437 $429,242 Q3 2022 Q3 2023 Net Sales (in thousands) 1 For twelve months ended September 30, 2023

Quarterly Performance • Q3 2023 sales up 5% year over year, as distribution channel inventories stabilized • Meaningful YOY margin expansion in Q3 driven by decreased commodity costs and leveraging of fixed costs over larger sales and production volume • Innovation driving ongoing portfolio expansion through sophisticated products, catering to the new generation of RV enthusiasts • Thousands continue to enter the repair and replacement cycle • Increased spend during trade-up seasons as consumers upgrade RVs, leveraging our recent acquisitions AFTERMARKET 5 $219,659 $230,848 Q3 2022 Q3 2023 Net Sales (in thousands)

Quarterly Performance • Q3 2023 Adjacent Industries sales down 11% YoY • Decrease driven by declines in the Marine market due to inflation and rising interest rates impacting retail consumers • Strength in other adjacent markets such as transit have lessened the impact from lighter NA marine demand ADJACENT MARKETS 6 Net Sales (in thousands)$335,983 $299,225 Q3 2022 Q3 2023

Quarterly Performance • Q3 2023 sales up 7% 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 net sales • Continue to see positive results and demand in international adjacent industries such as our Rail business INTERNATIONAL BUSINESS 7 Net Sales (in thousands) $92,629 $99,285 Q3 2022 Q3 2023

INNOVATION AS A CULTURE Constant innovation continues to drive long-term content expansion Continued focus on innovation has resulted in a record number of product introductions in the last 10 years 8 Independent Suspension Furrion® 18K Chill Cube Air Conditioner Solera® 3000 Off-Grid Series Solar awning Titan Leveling Systems™ Towable & Motorized CURT® Enhanced Pin Box Solutions OneControl® Auto featuring True Course™ ABS (Anti-Lock Braking System) SureShade® Forward Facing Power Bimini New Window Designs and Integrated Shades DoubleCOOL Acrylic Cooling Solutions

GROWTH STRATEGY Prioritizing ample liquidity and investments back into the company Balanced Capital Allocation Strategy • Reduce leverage • Investment in the business, with focus on automation projects • Execute strategic acquisitions and divestitures • Return capital to shareholders Continue Execution of our Diversification Strategy • Lessen the impact from RV down cycles by further expanding market share in our Non-RV OEM channel to increase stability • Continue to expand offerings in our various markets through innovations and acquisitions Leveraging Strengths to Win Market Share • Continue to innovate, bringing new and useful offerings to the space • Focusing on long term content per unit growth in all groups • Unlocking cross-selling opportunities through new acquisitions 9

Operating Margin 7.7% 4.8% Third Quarter 2022 Third Quarter 2023 (in th ou sa nd s) Consolidated Net Income $61,392 $25,887 Third Quarter 2022 Third Quarter 2023 (in th ou sa nd s) EBITDA* $119,822 $78,859 Third Quarter 2022 Third Quarter 2023 Q3 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. (in th ou sa nd s) Consolidated Net Sales $1,132,079 $959,315 Third Quarter 2022 Third Quarter 2023 10

As of and for the nine months ended September 30 LIQUIDITY AND CASH FLOW 2023 2022 Cash and Cash Equivalents $31M $23M Remaining Availability under Revolving Credit Facility(1) $179M $369M Capital Expenditures $50M $104M Dividends $80M $76M Debt / Net Income (TTM) 18.6x 2.1x Net Debt/EBITDA (TTM) 3.8x(2) 1.3x(3) Cash from Operating Activities $389M $486M (1) Remaining availability under the revolving credit facility is subject to covenant restrictions. (2) Net Debt/EBITDA ratio is a non-GAAP financial measure and is calculated as follows: Debt of $909M, less Cash of $31M, resulted in Net Debt of $878M at September 30, 2023, divided by Earnings Before Interest, Taxes, Depreciation, and Amortization, "EBITDA" (Net Income of $49M adding back Interest of $39M, Taxes of $9M, and Depreciation and Amortization of $132M), resulting in $229M EBITDA for the twelve months ended September 30, 2023. The GAAP debt / Net income ratio was $909M / $49M or 18.6x. (3) Net Debt/EBITDA ratio is a non-GAAP financial measure and is calculated as follows: Debt of $1,062M, less Cash of $23M, resulted in Net Debt of $1,039M at September 30, 2022, divided by EBITDA (Net Income of $494M, adding back Interest of $25M, Taxes of $171M, and Depreciation and Amortization of $128M), resulting in $818M EBITDA for the twelve months ended September 30, 2022. The GAAP debt / Net income ratio was $1,062M / $494M or 2.1x. 11

EBITDA Reconciliation of Non-GAAP Measures APPENDIX EBITDA is a non-GAAP performance measure included to illustrate and improve comparability of its results from period to period. EBITDA is defined as net income (loss) before interest expense, provision for income taxes, depreciation and amortization expense. The Company considers this non-GAAP measure in evaluating and managing the Company's operations and believes that discussion of results adjusted for these items is meaningful to investors because it provides a useful analysis of ongoing underlying operating trends. The adjusted measures are not in accordance with, nor are they a substitute for, GAAP measures, and they may not be comparable to similarly titled measures used by other companies. Three Months Ended September 30, ($ in thousands) 2023 2022 Net Income $ 25,887 $ 61,392 Interest Expense, Net 10,325 6,910 Provision for Income Taxes 9,378 19,273 Depreciation and Amortization 33,269 32,247 EBITDA $ 78,859 $ 119,822 12

Cover	Nov. 07, 2023
Cover [Abstract]
Document Type	8-K
Document Period End Date	Nov. 07, 2023
Entity Registrant Name	LCI INDUSTRIES
Entity Incorporation, State or Country Code	DE
Entity File Number	001-13646
Entity Tax Identification Number	13-3250533
Entity Address, Address Line One	3501 County Road 6 East,
Entity Address, City or Town	Elkhart,
Entity Address, State or Province	IN
Entity Address, Postal Zip Code	46514
City Area Code	(574)
Local Phone Number	535-1125
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false
Title of 12(b) Security	Common Stock, $.01 par value
Trading Symbol	LCII
Security Exchange Name	NYSE
Entity Central Index Key	0000763744
Amendment Flag	false