lcii-20240630

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended: June 30, 2024


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _________________ to _________________

Commission File Number: 001-13646

LCI INDUSTRIES

(Exact name of registrant as specified in its charter)


Delaware		13-3250533
(State or other jurisdiction of		(I.R.S. Employer
incorporation or organization)		Identification Number)

3501 County Road 6 East		46514
Elkhart,	Indiana	(Zip Code)
(Address of principal executive offices)

(574) 535-1125

(Registrant’s telephone number, including area code)

(Former name, former address and former fiscal year, if changed since last report) N/A

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 (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☒ Accelerated filer ☐

Non-accelerated filer ☐ Smaller reporting company ☐

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. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The number of shares outstanding of the registrant’s common stock, as of the latest practicable date (July 31, 2024) was 25,462,195 shares of common stock.

LCI INDUSTRIES

TABLE OF CONTENTS


		Page
PART I –	FINANCIAL INFORMATION

	ITEM 1 – FINANCIAL STATEMENTS

	CONDENSED CONSOLIDATED STATEMENTS OF INCOME	4

	CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME	5

	CONDENSED CONSOLIDATED BALANCE SHEETS	6

	CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS	7

	CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY	8

	NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS	10

	ITEM 2 – MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	22

	ITEM 3 – QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	32

	ITEM 4 – CONTROLS AND PROCEDURES	32

PART II –	OTHER INFORMATION

	ITEM 1 – LEGAL PROCEEDINGS	33

	ITEM 1A – RISK FACTORS	33

	ITEM 5 – OTHER INFORMATION	33

	ITEM 6 – EXHIBITS	33

SIGNATURES		34

EXHIBIT 31.1 - SECTION 302 CEO CERTIFICATION

EXHIBIT 31.2 - SECTION 302 CFO CERTIFICATION

EXHIBIT 32.1 - SECTION 906 CEO CERTIFICATION

EXHIBIT 32.2 - SECTION 906 CFO CERTIFICATION

PART I – FINANCIAL INFORMATION

ITEM 1 – FINANCIAL STATEMENTS

LCI INDUSTRIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
(In thousands, except per share amounts)

Net sales	$	1,054,544	$	1,014,639	$	2,022,573	$	1,987,949
Cost of sales	788,099		796,519		1,532,222		1,583,758
Gross profit	266,445		218,120		490,351		404,191
Selling, general and administrative expenses	175,841		162,946		342,136		328,974
Operating profit	90,604		55,174		148,215		75,217
Interest expense, net	7,962		10,249		17,283		20,643
Income before income taxes	82,642		44,925		130,932		54,574
Provision for income taxes	21,479		11,499		33,224		13,889
Net income	$	61,163	$	33,426	$	97,708	$	40,685

Net income per common share:
Basic	$	2.40	$	1.32	$	3.86	$	1.61
Diluted	$	2.40	$	1.31	$	3.85	$	1.60

Weighted average common shares outstanding:
Basic	25,473		25,329		25,344		25,273
Diluted	25,504		25,437		25,367		25,359

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

LCI INDUSTRIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
(In thousands)

Net income	$	61,163	$	33,426	$	97,708	$	40,685
Other comprehensive (loss) income:
Net foreign currency translation adjustment	(1,458)		763		(4,721)		2,763
Actuarial (loss) gain on pension plans	(345)		100		(345)		100

Total comprehensive income	$	59,360	$	34,289	$	92,642	$	43,548

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

LCI INDUSTRIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)


	June 30,		December 31,
	2024			2023
(In thousands, except per share amount)

ASSETS
Current assets
Cash and cash equivalents	$	130,418		$	66,157

Accounts receivable, net of allowances of $6,320 and $5,701 at June 30, 2024 and December 31, 2023, respectively	333,059			214,707
Inventories, net	687,870			768,407

Prepaid expenses and other current assets	67,637			67,599
Total current assets	1,218,984			1,116,870
Fixed assets, net	448,025			465,781
Goodwill	588,523			589,550
Other intangible assets, net	421,713			448,759
Operating lease right-of-use assets	239,810			245,388

Other long-term assets	94,924			92,971
Total assets	$	3,011,979		$	2,959,319

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Current maturities of long-term indebtedness	$	558		$	589
Accounts payable, trade	202,622			183,697

Current portion of operating lease obligations	38,656			36,269
Accrued expenses and other current liabilities	190,657			174,437
Total current liabilities	432,493			394,992
Long-term indebtedness	829,188			846,834
Operating lease obligations	214,434			222,680
Deferred taxes	29,350			32,345
Other long-term liabilities	112,101			107,432
Total liabilities	1,617,566			1,604,283
Stockholders' equity
Common stock, par value $.01 per share	288			287
Paid-in capital	246,984			245,659
Retained earnings	1,220,151			1,177,034
Accumulated other comprehensive income	9,206			14,272
Stockholders' equity before treasury stock	1,476,629			1,437,252
Treasury stock, at cost	(82,216)			(82,216)
Total stockholders' equity	1,394,413			1,355,036
Total liabilities and stockholders' equity	$	3,011,979		$	2,959,319

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

LCI INDUSTRIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)


	Six Months Ended June 30,
(In thousands)	2024		2023

Cash flows from operating activities:
Net income	$	97,708	$	40,685
Adjustments to reconcile net income to cash flows provided by operating activities:
Depreciation and amortization	64,728		65,549
Stock-based compensation expense	9,301		9,080

Other non-cash items	2,238		2,192
Changes in assets and liabilities, net of acquisitions of businesses:
Accounts receivable, net	(118,962)		(80,952)
Inventories, net	96,351		209,346
Prepaid expenses and other assets	(2,746)		11,607
Accounts payable, trade	18,977		37,949
Accrued expenses and other liabilities	17,687		(21,891)
Net cash flows provided by operating activities	185,282		273,565
Cash flows from investing activities:
Capital expenditures	(21,328)		(34,082)
Acquisitions of businesses	(19,957)		(25,851)


Other investing activities	552		4,344
Net cash flows used in investing activities	(40,733)		(55,589)
Cash flows from financing activities:
Vesting of stock-based awards, net of shares tendered for payment of taxes	(9,111)		(9,585)
Proceeds from revolving credit facility	86,248		234,200
Repayments under revolving credit facility	(87,766)		(402,726)
Repayments under term loan and other borrowings	(15,007)		(10,703)




Payment of dividends	(53,455)		(53,154)
Payment of contingent consideration and holdbacks related to acquisitions	—		(517)
Other financing activities	(2)		(834)
Net cash flows used in financing activities	(79,093)		(243,319)
Effect of exchange rate changes on cash and cash equivalents	(1,195)		(62)
Net increase (decrease) in cash and cash equivalents	64,261		(25,405)
Cash and cash equivalents at beginning of period	66,157		47,499
Cash and cash equivalents at end of period	$	130,418	$	22,094

Supplemental disclosure of cash flow information:
Cash paid during the period for:
Interest	$	17,364	$	20,804
Income taxes, net of refunds	$	16,561	$	5,724
Non-cash investing and financing activities:
Purchase of property and equipment in accrued expenses	$	429	$	1,704

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

LCI INDUSTRIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(Unaudited)


(In thousands, except shares and per share amounts)	Common Stock		Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Income		Treasury Stock		Total Stockholders’ Equity
Balance - December 31, 2022	$	285	$	234,956	$	1,221,279	$	6,704	$	(82,216)	$	1,381,008
Net income	—		—		7,259		—		—		7,259
Issuance of 119,091 shares of common stock pursuant to stock-based awards, net of shares tendered for payment of taxes	1		(8,889)		—		—		—		(8,888)
Stock-based compensation expense	—		4,695		—		—		—		4,695
Other comprehensive income	—		—		—		2,000		—		2,000
Cash dividends ($1.05 per share)	—		—		(26,563)		—		—		(26,563)
Dividend equivalents on stock-based awards	—		532		(532)		—		—		—
Balance - March 31, 2023	$	286	$	231,294	$	1,201,443	$	8,704	$	(82,216)	$	1,359,511
Net income	—		—		33,426		—		—		33,426
Issuance of 26,445 shares of common stock pursuant to stock-based awards, net of shares tendered for payment of taxes	—		(697)		—		—		—		(697)
Stock-based compensation expense	—		4,385		—		—		—		4,385


Other comprehensive income	—		—		—		863		—		863
Cash dividends ($1.05 per share)	—		—		(26,591)		—		—		(26,591)
Dividend equivalents on stock-based awards	—		525		(525)		—		—		—
Balance - June 30, 2023	$	286	$	235,507	$	1,207,753	$	9,567	$	(82,216)	$	1,370,897

The accompanying notes are an integral part of these Condensed Consolidated Financial Statements.

LCI INDUSTRIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(Unaudited)


(In thousands, except shares and per share amounts)	Common Stock		Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Income		Treasury Stock		Total Stockholders’ Equity
Balance - December 31, 2023	$	287	$	245,659	$	1,177,034	$	14,272	$	(82,216)	$	1,355,036
Net income	—		—		36,545		—		—		36,545
Issuance of 122,023 shares of common stock pursuant to stock-based awards, net of shares tendered for payment of taxes	1		(9,041)		—		—		—		(9,040)
Stock-based compensation expense	—		4,327		—		—		—		4,327
Other comprehensive loss	—		—		—		(3,263)		—		(3,263)
Cash dividends ($1.05 per share)	—		—		(26,721)		—		—		(26,721)
Dividend equivalents on stock-based awards	—		569		(569)		—		—		—
Balance - March 31, 2024	$	288	$	241,514	$	1,186,289	$	11,009	$	(82,216)	$	1,356,884
Net income	—		—		61,163		—		—		61,163
Issuance of 14,059 shares of common stock pursuant to stock-based awards, net of shares tendered for payment of taxes	—		(71)		—		—

SEC Form 10-Q filed by LCI Industries