LCI INDUSTRIES
For the period ended Mar 31, 2025. Filed May 6, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed May 6, 2025
LCII$97.81-4.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-30; filed 2024-11-07.
0000763744-24-000136
ITEM 2. – MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-05-06.
0000763744-25-000068
ITEM 2. – MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 108 previous paragraphs and 114 current paragraphs.
27 unchanged; 41 reworded; 42 added; 36 removed; 4 previous and 4 current paragraphs rearranged.
Tables are not compared: 10 previous and 7 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (42)
Current report
Our diverse portfolio of innovative and high-quality products includes:
Current report
•Chassis & Suspension Solutions: Steel chassis, axles, anti-lock braking systems ("ABS"), suspension systems, and stabilizer/leveling systems (manual, electric, and hydraulic)
Current report
•Outdoor Living Systems: Awnings, slide-out mechanisms, and accessories
Current report
•Windows, Doors & Steps: Vinyl, aluminum, and frameless windows; entry, luggage, patio, and ramp doors; and electric and manual entry steps
Current report
•Interior & Appliance Solutions: Thermoformed bath and kitchen products, furniture, mattresses, tankless water heaters, air conditioners, appliances, electronic components, televisions, and sound systems
Current report
•Towing & Truck Accessories: Hitches, pin boxes, grill guards, towing electrical, and towing and truck accessories
Current report
We operate in two primary segments: OEM and Aftermarket. Together, these segments leverage our manufacturing competencies, leadership expertise, customer relationships, and market insights to drive efficiencies and innovation that enable us to maintain a leadership position in the RV market while continuing to expand in adjacent industries and aftermarket channels. Intersegment sales are insignificant. See Note 12 of the Notes to Condensed Consolidated Financial Statements for further information regarding our segments.
Current report
OEM Segment: Our OEM Segment services leading OEMs in recreation, transportation, and housing markets. Our strategically located manufacturing and distribution facilities across North America and Europe provide efficient service to OEMs. Key markets served by our OEM Segment include RVs and Adjacent Industries.
Current report
Aftermarket Segment: Our Aftermarket Segment enhances the product lifecycle for the recreation and transportation markets by offering discretionary accessories, replacement parts, and upgrades. This approach drives additional revenue, deepens customer engagement, and leverages our OEM expertise. Products are sold through retail dealers, wholesale distributors, and service centers, as well as direct-to-consumer sales through online platforms.
Current report
Diversification Strategy: Over the past several years, we have diversified our portfolio beyond the RV OEM market into marine, building products, transportation, international, and aftermarket sectors. Leveraging our manufacturing competencies in other industries can accelerate profitable growth and help to mitigate seasonal and cyclical market risk. For example, within our Aftermarket Segment, many of the optional upgrades and non-critical replacement parts for RVs are purchased outside the normal product selling season, thereby causing certain sales within this segment to be counter-seasonal.
Current report
•October - March: Dealers build inventory, leading wholesale shipments to historically outpace retail sales.
Current report
•April - September: Retail sales typically exceed wholesale shipments, driven by spring and summer demand.
Current report
OEM Segment - Adjacent Industries: Our expertise in RV components extends to adjacent industries, including boats, buses, trailers, trucks, trains, manufactured homes, and modular housing. These adjacent industries offer significant growth opportunities, including by helping us leverage our established relationships with OEMs that often operate in multiple sectors. While the potential content per unit we may supply to adjacent industries varies across these markets, and is different than RVs, they represent meaningful diversification opportunities.
Current report
Aftermarket Segment: Our Aftermarket Segment enhances the product lifecycle for the recreation and transportation markets by offering discretionary accessories, replacement parts, and upgrades through various channels, including retail dealers, wholesale distributors, and service centers, as well as direct-to-consumer platforms. These products support recreation and transportation markets, addressing both routine maintenance needs and customer-driven enhancements.
Current report
We also provide comprehensive customer support through multiple customer care centers, offering rapid responses to inquiries related to technical support, product delivery, and critical repair, designed to minimize consumer downtime. Dedicated teams deliver product, technical, and installation training, as well as marketing assistance, to enhance customer engagement and satisfaction.
Current report
Aftermarket offerings span a diverse product portfolio, including:
Current report
•Marine Products: Biminis, covers, buoys, and fenders.
Current report
Aftermarket sales are influenced by seasonal trends, with many non-critical upgrades and replacement parts purchased outside peak selling periods, creating certain counter-seasonal demand.
Current report
The U.S. RV ownership base, which reached a record 8.1 million households in 2025 (Go RVing), drives robust demand for aftermarket products. Owners seek to enhance and maintain their units, replacing components that experience normal wear and tear. This vibrant and growing market represents a key driver of our Aftermarket Segment’s performance.
Current report
•Consolidated net sales in the first quarter of 2025 were $1,045.6 million, an increase of 8.0 percent, from $968.0 million in the same period of 2024. The increase was primarily due to higher North American RV sales driven by higher unit volume and market share gains.
Current report
•We issued $460 million of 3.000% convertible senior notes due 2030 (the "2030 Convertible Notes") and repurchased $368.0 million of our 1.125% convertible senior notes due 2026 (the "2026 Convertible Notes") in the first quarter of 2025.
Current report
•We refinanced our credit agreement with a $600 million revolving credit facility and a $400 million term loan in the first quarter of 2025.
Current report
•In the first quarter of 2025, we returned $57.6 million to shareholders through a quarterly dividend of $1.15 per share, aggregating $29.4 million, and $28.3 million in share repurchases.
Current report
OEM Segment - First Quarter
Current report
Partially offset by:
Current report
Amortization expense on intangible assets for the OEM Segment was $9.1 million in the first quarter of 2025, compared to $10.3 million in the same period of 2024. Depreciation expense on fixed assets for the OEM Segment was $12.3 million in the first quarter of 2025, compared to $14.0 million in the same period of 2024.
Current report
Aftermarket Segment - First Quarter
Current report
•Decreases in automotive aftermarket production volumes due to uncertainty in retail volumes for the remainder of the year reduced utilization of fixed production overhead costs, which negatively impacted operating profit by $0.9 million compared to the same period in 2024.
Current report
•Investments in distribution and logistics technology to support continued growth in the aftermarket segment negatively impacted operating profit by $0.5 million compared to the same period of 2024.
Current report
Loss on Extinguishment of Debt
Current report
In the three months ended March 31, 2025, we recorded an $8.1 million loss on extinguishment of debt, consisting of $6.2 million in connection with the repurchase of a portion of our 2026 Convertible Notes and $1.9 million related to the repayment of our previous term loan.
Current report
Cash flows provided by financing activities of $66.9 million in the first three months of 2025 were primarily comprised of the following:
Current report
•net proceeds from the issuance of our 2030 Convertible Notes of $448.5 million,
Current report
•proceeds from term loan borrowings of $391.0 million,
Current report
•proceeds from the issuance of warrants of $27.6 million, and
Current report
•net proceeds of $1.4 million from the termination of a portion of our 2026 warrants and convertible note hedge transactions,
Current report
Partially offset by:
Current report
•payments of $368.9 million for the repurchase of a portion of our 2026 Convertible Notes,
Current report
•payments of $67.6 million for the purchase of convertible note hedge contracts,
Current report
•payments for the repurchase of common stock of $28.3 million,
Showing the first 40 of 42 passages. Open the source sections for the rest.
Removed paragraphs (36)
Previous report
Our OEM Segment manufactures and distributes a broad array of highly engineered components for the leading OEMs of RVs and adjacent industries, including boats; buses; trailers used to haul boats, livestock, equipment, and other cargo; trucks; trains; manufactured homes; and modular housing. Approximately 52 percent of our OEM Segment net sales for the twelve months ended September 30, 2024 were of components for travel trailer and fifth-wheel RVs, including:
Previous report
We are executing a strategic initiative to diversify the markets we serve outside of the historical concentration within the North American RV OEM industry. Approximately 57 percent of net sales for the nine months ended September 30, 2024 were generated outside of the North American RV OEM market. We believe our diversification strategy has helped offset downswings in the North American RV OEM industry, while maintaining our strong position and ability to ramp up quickly to take advantage of upswings.
Previous report
OEM Segment
Previous report
North American Recreational Vehicle Industry
Previous report
The annual sales cycle for the RV industry generally starts in October after the "Open House" in Elkhart, Indiana where many of the largest RV OEMs display product to RV retail dealers and ends after the conclusion of the summer selling season in September in the following calendar year. Between October and March, industry-wide wholesale shipments of travel trailer and fifth-wheel RVs have historically exceeded retail sales as dealers build inventories to support anticipated sales. Between April and September, the spring and summer selling seasons, retail sales of travel trailer and fifth-wheel RVs have historically exceeded industry-wide wholesale shipments.
Previous report
Adjacent Industries
Previous report
Our portfolio of products used in RVs can also be used in other applications, including boats; buses; trailers used to haul boats, livestock, equipment, and other cargo; trucks; trains; manufactured homes; and modular housing (collectively, "Adjacent Industries"). In many cases, OEM customers of the Adjacent Industries are affiliated with RV OEMs through related subsidiaries. We believe there are significant opportunities in these Adjacent Industries.
Previous report
Aftermarket Segment
Previous report
Many of our OEM Segment products are also sold through various aftermarket channels of the recreation and transportation markets, primarily to retail dealers, wholesale distributors, and service centers, as well as direct to retail customers via the Internet. This includes discretionary accessories and replacement service parts. We have teams dedicated to product, technical, and installation training as well as marketing support for our Aftermarket Segment customers. We also support multiple call centers to provide responses to customers for product, delivery, and technical support. This support is designed for a rapid response to critical repairs, so customer downtime is minimal. The Aftermarket Segment also includes biminis, covers, buoys, fenders to the marine industry, towing products, truck accessories, appliances, air conditioners, televisions, sound systems, tankless water heaters, and the sale of replacement glass and awnings to fulfill insurance claims. Many of the optional upgrades and non-critical replacement parts for RVs are purchased outside the normal product selling season, thereby causing certain Aftermarket Segment sales to be counter-seasonal.
Previous report
According to Go RVing, estimated RV ownership in the United States as of 2021 increased to a record-high 11.2 million households. This vibrant market is a key driver for aftermarket sales, as we anticipate owners will likely upgrade their units as well as replace parts and accessories which have been subjected to normal wear and tear.
Previous report
•Consolidated net sales in the third quarter of 2024 decreased 4.6 percent to $915.5 million, from $959.3 million in the same period of 2023.
Previous report
•In September 2024, we paid a quarterly dividend of $1.05 per share, aggregating to $26.7 million.
Previous report
OEM Segment - Third Quarter
Previous report
According to the RVIA, industry-wide North American wholesale unit shipments for the three months ended September 30 were:
Previous report
•Decreases in material costs, which positively impacted operating profit by $23.1 million compared to the same period in 2023, primarily related to decreased steel prices, lower in-bound freight costs and material sourcing strategies.
Previous report
•A decrease in warranty costs, primarily due to product quality initiatives that resulted in reduced warranty claim payments, which increased operating profit by $8.2 million compared to the same period in 2023.
Previous report
Amortization expense on intangible assets for the OEM Segment was $10.0 million in the third quarter of 2024, compared to $10.6 million in the same period of 2023. Depreciation expense on fixed assets for the OEM Segment was $13.3 million in the third quarter of 2024, compared to $14.8 million in the same period of 2023.
Previous report
OEM Segment – Year to Date
Previous report
Operating profit of the OEM Segment was $105.2 million in the first nine months of 2024, an increase of $76.1 million compared to the same period of 2023. The operating profit margin of the OEM Segment increased to 4.7 percent in the first nine months of 2024, compared to 1.3 percent for the same period in 2023, and was positively impacted by:
Previous report
•A decrease in warranty costs, primarily due to product quality initiatives that resulted in reduced warranty claim payments, which increased operating profit by $20.6 million compared to the same period in 2023.
Previous report
•Sales mix increase of lower margin products, which negatively impacted operating profit by $15.8 million compared to the same period in 2023.
Previous report
Amortization expense on intangible assets for the OEM Segment was $30.4 million in the first nine months of 2024, compared to $31.2 million in the same period of 2023. Depreciation expense on fixed assets for the OEM Segment was $41.0 million in the first nine months of 2024, compared to $43.8 million in the same period of 2023.
Previous report
Aftermarket Segment - Third Quarter
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•Increased production facility costs resulting from investments to expand capacity in the automotive aftermarket over the past year, which reduced operating profit by $2.5 million.
Previous report
•Decreases in material costs, which positively impacted operating profit by $1.9 million compared to the same period in 2023, primarily related to decreased steel prices, lower in-bound freight costs and material sourcing strategies.
Previous report
•Pricing changes to targeted products, resulting in an increase in operating profit of $1.4 million compared to the same period in 2023.
Previous report
Aftermarket Segment – Year to Date
Previous report
Net sales of the Aftermarket Segment decreased during the first nine months of 2024, primarily driven by lower volumes within the RV and marine aftermarkets, which have been negatively impacted by lower consumer discretionary spending, partially offset by market share gains in the automotive aftermarket.
Previous report
Operating profit of the Aftermarket Segment was $96.9 million in the first nine months of 2024, an increase of $5.2 million compared to the same period of 2023. The operating profit margin of the Aftermarket Segment was 13.9 percent in the first nine months of 2024, compared to 13.1 percent in the same period in 2023, and was positively impacted by:
Previous report
•Decreases in material costs, which positively impacted operating profit by $14.5 million compared to the same period in 2023, primarily related to decreased steel prices, lower in-bound freight costs and material sourcing strategies.
Previous report
•Pricing changes to targeted products, resulting in an increase in operating profit of $5.1 million compared to the same period in 2023.
Previous report
•Increases in production labor costs due to product mix, which negatively impacted operating profit by $7.5 million compared to the same period of 2023.
Previous report
•Increased production facility costs resulting from investments to expand capacity in the automotive aftermarket over the past year, which reduced operating profit by $5.0 million.
Previous report
Amortization expense on intangible assets for the Aftermarket Segment was $11.7 million in the first nine months of 2024, compared to $11.6 million in the same period of 2023. Depreciation expense on fixed assets for the Aftermarket Segment was $12.9 million in the first nine months of 2024, compared to $12.1 million in the same period of 2023.
Previous report
Cash flows used in financing activities of $333.4 million in the first nine months of 2023 were primarily comprised of $165.7 million in net repayments under our revolving credit facility, payments of quarterly dividends of $79.7 million, $45.8 million in repayments under our Term Loan and other borrowings, $31.9 million related to payments of contingent consideration and holdbacks related to acquisitions, and cash outflows of $9.6 million related to vesting of stock-based awards, net of shares tendered for payment of taxes.
Previous report
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, net sales and expenses, and related disclosure of contingent assets and liabilities. On an ongoing basis, we evaluate our estimates, including, but not limited to, those related to product returns, sales and purchase rebates, accounts receivable, inventories, goodwill and other intangible assets, net assets of acquired businesses, income taxes, warranty and product recall obligations, self-insurance obligations, operating lease right-of-use assets and obligations, asset retirement obligations, long-lived assets, pension and post-retirement benefits, stock-based compensation, segment allocations, contingent consideration, environmental liabilities, contingencies and litigation. We base our estimates on historical experience, other available information, and various other assumptions believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities not readily apparent from other resources. Actual results and events could differ significantly from management estimates.
Reworded paragraphs (41)
Previous wording
LCI Industries ("LCII" and collectively with its subsidiaries, the "Company," "we," "us," or "our"), through its wholly-owned subsidiary, Lippert Components, Inc. and its subsidiaries (collectively, "Lippert Components," "LCI," or "Lippert"), supplies, domestically and internationally, a broad array of highly engineered components for the leading original equipment manufacturers ("OEMs") in the recreation and transportation markets, consisting primarily of recreational vehicles ("RVs") and adjacent industries, including boats; buses; trailers used to haul boats, livestock, equipment, and other cargo; trucks; trains; manufactured homes; and modular housing. We also supply 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.
Current wording
LCI Industries ("LCII" and collectively with its subsidiaries, the "Company," the "Registrant," "we," "us," or "our"), through its wholly-owned subsidiary, Lippert Components, Inc. and its subsidiaries (collectively, "Lippert Components," "LCI," or "Lippert"), is a global leader in supplying engineered components to the outdoor recreation, transportation, and building products industries. In addition to serving original equipment manufacturers ("OEMs"), we also cater to aftermarket needs, selling through retail dealers, wholesale distributors, and service centers, as well as directly to consumers online.
Previous wording
We have two reportable segments, the OEM Segment and the Aftermarket Segment. Intersegment sales are insignificant. At September 30, 2024, we operated over 110 manufacturing and distribution facilities located throughout North America and Europe. See Note 12 of the Notes to Condensed Consolidated Financial Statements for further information regarding our segments.
Current wording
At March 31, 2025, we operated over 110 manufacturing and distribution facilities located throughout North America and Europe, supporting key industries such as recreational vehicles ("RVs"), marine products, utility trailers, transportation, and residential and commercial construction industries. Our core manufacturing competencies include:
Previous wording
An RV is a vehicle designed as temporary living quarters for recreational, camping, travel, or seasonal use. RVs may be motorized (motorhomes) or towable (travel trailers, fifth-wheel travel trailers, folding camping trailers, and truck campers).
Current wording
OEM Segment - North American Recreational Vehicle Industry: RVs are designed as temporary living quarters for recreational, camping, travel, or seasonal use. They can be either motorized, such as motorhomes, or towable, including travel trailers, fifth-wheel trailers, folding camping trailers, and truck campers. The RV industry generally follows a predictable annual sales cycle that starts after the annual fall "Open House" in Elkhart, Indiana:
Previous wording
According to the Recreation Vehicle Industry Association ("RVIA"), industry-wide wholesale shipments from the United States of travel trailer and fifth-wheel RVs, our primary RV market, increased 14 percent to 224,000 units in the first nine months of 2024, compared to the same period in 2023, as retail dealers restocked inventories during the first nine months of 2024 compared to destocking efforts in the same period of 2023. Retail demand for travel trailer and fifth-wheel RVs decreased 9 percent in the first nine months of 2024 compared to the same period in 2023. Retail demand has declined from elevated post-pandemic levels, primarily driven by inflation and elevated interest rates impacting retail consumer discretionary spending. Retail demand is typically revised upward in subsequent months, primarily due to delayed RV registrations.
Current wording
According to the Recreation Vehicle Industry Association ("RVIA"), industry-wide wholesale shipments from the United States of travel trailer and fifth-wheel RVs, our primary RV market, increased 18 percent to 86,400 units in the first three months of 2025, compared to the same period in 2024. Retail demand for travel trailer and fifth-wheel RVs decreased 7 percent in the first three months of 2025 compared to the same period in 2024, as inflation and elevated interest rates continued to pressure consumer discretionary spending, dampening demand. Retail registration data is often revised upward in subsequent months due to reporting delays.
Previous wording
While we measure our OEM Segment RV sales against industry-wide wholesale shipment statistics, the underlying health of the RV industry is determined by retail demand. A comparison of the number of units and the year-over-year percentage change in industry-wide wholesale shipments and retail sales of travel trailers and fifth-wheel RVs, as reported by Statistical Surveys, Inc., as well as the resulting estimated change in dealer inventories, for both the United States and Canada, is as follows:
Current wording
While we track our OEM Segment RV sales against wholesale shipment statistics, the health of the RV industry is ultimately determined by retail demand. The table below highlights trends in wholesale shipments, retail sales, and dealer inventory adjustments for travel trailers and fifth-wheel RVs, as reported by Statistical Surveys, Inc. ("Statistical Surveys").
Previous wording
According to the RVIA, industry-wide wholesale shipments of motorhome RVs in the first nine months of 2024 decreased 25 percent to 26,900 units compared to the first nine months of 2023. Retail demand for motorhome RVs in the first nine months of 2024 decreased 15 percent to 31,800 units compared to the first nine months of 2023. Retail demand has declined from post-pandemic elevated levels, primarily driven by inflation and higher interest rates impacting retail consumer discretionary spending.
Current wording
According to the RVIA, industry-wide wholesale shipments of motorhome RVs in the first three months of 2025 decreased 11 percent to 9,300 units compared to the first three months of 2024. Retail demand for motorhome RVs in the first three months of 2025 decreased 5 percent to 9,300 units compared to the first three months of 2024. Retail demand has declined from post-pandemic elevated levels, primarily driven by inflation and higher interest rates impacting retail consumer discretionary spending.
Previous wording
The Aftermarket Segment supplies many of these engineered components to the related aftermarket channels of the recreation and transportation products, primarily to retail dealers, wholesale distributors, and service centers, as well as direct to retail customers via the Internet. The Aftermarket Segment also includes biminis, covers, buoys, fenders to the marine industry, towing products, truck accessories, appliances, air conditioners, televisions, sound systems, tankless water heaters, and the sale of replacement glass and awnings to fulfill insurance claims.
Current wording
•Recreation and Transportation Accessories: Towing products, truck accessories, replacement glass, and awnings.
Previous wording
•Net income for the third quarter of 2024 was $35.6 million, or $1.39 per diluted share, compared to net income of $25.9 million, or $1.02 per diluted share, for the same period of 2023.
Current wording
•Net income for the first quarter of 2025 was $49.4 million, or $1.94 per diluted share, compared to net income of $36.5 million, or $1.44 per diluted share, for the same period of 2024.
Previous wording
•Consolidated operating profit during the third quarter of 2024 was $53.9 million, compared to $45.6 million in the same period of 2023. Operating profit margin was 5.9 percent in the third quarter of 2024 compared to 4.8 percent in the same period of 2023. The increase was primarily due to decreases in material and freight costs.
Current wording
•Consolidated operating profit during the first quarter of 2025 was $81.3 million, compared to $57.6 million in the same period of 2024. Operating profit margin was 7.8 percent in the first quarter of 2025 compared to 6.0 percent in the same period of 2024. The increase was primarily due to higher North American RV sales volumes and decreases in material costs.
Previous wording
•The cost of steel consumed in certain of our manufactured components decreased in the third quarter of 2024 compared to the same period of 2023. Raw material costs are subject to continued fluctuation and impact certain contractual selling prices which are indexed to select commodities.
Current wording
•The cost of steel consumed in certain of our manufactured components decreased in the first quarter of 2025 compared to the same period of 2024. Raw material costs are subject to continued fluctuation and impact certain contractual selling prices which are indexed to select commodities.
Previous wording
Net sales of the OEM Segment in the third quarter of 2024 decreased by $44.0 million, compared to the same period of 2023. Net sales of components to OEMs were to the following markets for the three months ended September 30:
Current wording
Net sales of the OEM Segment in the first quarter of 2025 increased by $65.2 million, compared to the same period of 2024. Net sales of components to OEMs were to the following markets for the three months ended March 31:
Previous wording
According to the RVIA, industry-wide wholesale unit shipments for the nine months ended September 30 were:
Current wording
According to the RVIA, industry-wide wholesale unit shipments for the three months ended March 31 were:
Previous wording
Our average product content per type of RV excludes international sales and sales to the Aftermarket Segment and Adjacent Industries. Content per RV is impacted by changes in selling prices for our products, market share gains, acquisitions, changes in unit mix and timing differences between wholesale production and shipments. For the twelve months ended September 30, 2024, travel trailer and fifth-wheel RV content declined year-over-year primarily due to an increasing shift in unit mix towards lower content single axle travel trailers and pricing decreases indexed to commodity and freight indices, partially offset by market share gains and alignment in wholesale unit production and shipments compared to wholesale unit shipments outpacing production as a result of inventory destocking efforts for the twelve months ended September 30, 2023.
Current wording
Our average product content per type of RV excludes international sales and sales to the Aftermarket Segment and Adjacent Industries. Content per RV is impacted by changes in selling prices for our products, market share gains, and acquisitions. For the twelve months ended March 31, 2025, travel trailer and fifth-wheel RV content increased year-over year due primarily to market share gains, partially offset by a shift in RV unit mix toward lower content single axle travel trailers.
Previous wording
Our decrease in net sales to RV OEMs during the third quarter of 2024 was primarily driven by a 25 percent decrease in motorhome wholesale shipments and a shift in unit mix towards lower content single axle travel trailers, partially offset by a 11 percent increase in North American travel trailer and fifth-wheel wholesale shipments and market share gains. The increase in North American travel trailer and fifth-wheel wholesale shipments was primarily due to retail dealers restocking inventories during the 2024 period compared to destocking efforts in the same period of 2023.
Current wording
Our increase in net sales to RV OEMs during the first quarter of 2025 was primarily driven by an 18 percent increase in North American travel trailer and fifth-wheel wholesale shipments and market share gains, partially offset by a 11 percent decrease in motorhome wholesale shipments. The increase in North American travel trailer and fifth-wheel wholesale shipments was primarily due to retail dealers restocking inventories for the 2025 selling season compared to inventory reduction efforts during 2024.
Previous wording
Our decrease in net sales to OEMs in Adjacent Industries during the third quarter of 2024 was primarily due to lower sales to North American marine and utility trailer OEMs, driven by current dealer inventory levels, inflation, and elevated interest rates impacting retail consumers.
Current wording
Our decrease in net sales to OEMs in Adjacent Industries during the first quarter of 2025 was primarily due to lower sales to North American marine and powersports OEMs, partially offset by higher sales to utility trailer OEMs. The decrease in sales to North American marine and powersports OEMs was driven by current dealer inventory levels, inflation, and elevated interest rates impacting retail consumer demand.
Previous wording
Operating profit of the OEM Segment was $21.8 million in the third quarter of 2024, an increase of $10.7 million compared to the same period of 2023. The operating profit margin of the OEM Segment increased to 3.2 percent in the third quarter of 2024, compared to 1.5 percent for the same period of 2023, and was positively impacted by:
Current wording
Operating profit of the OEM Segment was $62.0 million in the first quarter of 2025, an increase of $29.1 million compared to the same period of 2024. The operating profit margin of the OEM Segment increased to 7.5 percent in the first quarter of 2025, compared to 4.3 percent for the same period of 2024, and was positively impacted by:
Previous wording
•The impact of fixed costs spread over decreased sales, which decreased operating profit by $4.9 million related to fixed production overhead costs and $4.7 million related to fixed selling, general, and administrative costs.
Current wording
•The impact of fixed costs spread over increased sales, which increased operating profit by $8.6 million related to fixed production overhead costs and $7.8 million related to fixed selling, general, and administrative costs.
Previous wording
•Decreases in material costs, which positively impacted operating profit by $80.4 million compared to the same period in 2023, primarily related to lower in-bound freight costs, decreased steel prices and material sourcing strategies.
Current wording
•Lower material costs, which positively impacted operating profit by $9.1 million compared to the same period in 2024, primarily related to steel prices and material sourcing strategies.
Previous wording
•Increases in production labor costs due to product mix, which negatively impacted operating profit by $3.0 million compared to the same period of 2023.
Current wording
•Increases in production labor efficiencies, which positively impacted operating profit by $2.7 million compared to the same period in 2024.
Previous wording
•Decreases in selling prices, which negatively impacted operating profit by $3.0 million related to targeted products and by $1.8 million related to prices contractually tied to indices of select commodities
Current wording
•Decreases in selling prices, which negatively impacted operating profit by $1.7 million related to prices contractually tied to indices of select commodities and by $1.1 million related to decreases for targeted products compared to the same period in 2024.
Previous wording
Net sales of the Aftermarket Segment in the third quarter of 2024 increased by $0.2 million, compared to the same period of 2023. Net sales of components in the Aftermarket Segment were as follows for the three months ended September 30:
Current wording
Net sales of the Aftermarket Segment in the first quarter of 2025 increased by $12.3 million, compared to the same period of 2024. Net sales of components in the Aftermarket Segment were as follows for the three months ended March 31:
Previous wording
Net sales of the Aftermarket Segment for the third quarter of 2024 were slightly higher than for the same period in 2023, primarily driven by market share gains in the automotive aftermarket, partially offset by lower volumes within the RV aftermarket, which has been negatively impacted by lower consumer discretionary spending.
Current wording
Our net sales of the Aftermarket Segment for the first quarter of 2025 increased compared to the same period in 2024, primarily driven by higher volumes within the RV and marine aftermarkets and market share gains in the automotive aftermarket.
Previous wording
Operating profit of the Aftermarket Segment was $32.1 million in the third quarter of 2024, a decrease of $2.4 million compared to the same period of 2023. The operating profit margin of the Aftermarket Segment was 13.9 percent in the third quarter of 2024, compared to 14.9 percent in the same period in 2023, and was negatively impacted by:
Current wording
Operating profit of the Aftermarket Segment was $19.3 million in the first quarter of 2025, a decrease of $5.4 million compared to the same period of 2024. The operating profit margin of the Aftermarket Segment was 8.7 percent in the first quarter of 2025, compared to 11.8 percent in the same period in 2024, and was negatively impacted by:
Previous wording
•Sales mix increase of lower margin products, which negatively impacted operating profit by $1.4 million compared to the same period in 2023.
Current wording
•Increases in sales mix toward lower margin products, which negatively impacted operating profit by $5.2 million compared to the same period in 2024.
Previous wording
Amortization expense on intangible assets for the Aftermarket Segment was $3.9 million in the third quarter of 2024, consistent with the same period of 2023. Depreciation expense on fixed assets for the Aftermarket Segment was $4.1 million in the third quarter of 2024, compared to $4.0 million in the same period of 2023.
Current wording
Amortization expense on intangible assets for the Aftermarket Segment was $3.8 million in the first quarter of 2025, consistent with the same period of 2024. Depreciation expense on fixed assets for the Aftermarket Segment was $4.3 million in the first quarter of 2025, compared to $4.6 million in the same period of 2024.
Previous wording
Interest expense, net was $23.8 million for the nine months ended September 30, 2024, compared to $31.0 million in the same period of 2023. The decrease in net interest expense was primarily due to net repayments of $47.4 million on the revolving credit facility in the second half of 2023 and $1.5 million in the nine months ended September 30, 2024, principal prepayments on our Term Loan (as defined in Note 8 of the Notes to Condensed Consolidated Financial Statements) of $37.5 million in the second half of 2023 and $25.0 million in the nine months ended September 30, 2024, and interest income of $2.8 million for the nine months ended September 30, 2024, partially offset by higher global interest rates on our adjustable rate debt including the Term Loan and revolving credit facility. See Note 8 of the Notes to Condensed Consolidated Financial Statements for a description of our credit facilities.
Current wording
Interest expense, net was $6.0 million for the three months ended March 31, 2025, compared to $9.3 million in the same period of 2024. The decrease in net interest expense was primarily due to net repayments on the revolving credit facility of $52.5 million in 2024 and repayments of $19.3 million in the three months ended March 31, 2025, principal prepayments on our previous term loan in 2024, and interest income of $1.3 million earned on investments in money market mutual funds for the three months ended March 31, 2025, partially offset by interest on the 2030 Convertible Notes and higher interest rates on our adjustable rate debt including the term loans and revolving credit facility. See Note 8 of the Notes to Condensed Consolidated Financial Statements for a description of our credit facilities.
Previous wording
The effective tax rate for the nine months ended September 30, 2024 and 2023 was 25.2 percent and 25.9 percent, respectively. The effective tax rate for the nine months ended September 30, 2024 differed from the Federal statutory rate primarily due to state taxes, foreign taxes, and non-deductible expenses, partially offset by the recognition of excess tax benefits on stock-based compensation as a component of the provision for income taxes, and Federal and Indiana research and development credits. The decrease in the effective tax rate for the nine months ended September 30, 2024 as compared to the same period in 2023 was primarily due to a reduction in effective state tax rates.
Current wording
The effective tax rate for the three months ended March 31, 2025 and 2024 was 26.5 percent and 24.3 percent, respectively. The effective tax rate for the three months ended March 31, 2025 differed from the Federal statutory rate primarily due to state taxes, foreign taxes, and non-deductible expenses, partially offset by Federal and Indiana research and development credits. The increase in the effective tax rate for the three months ended March 31, 2025 as compared to the same period in 2024 was primarily due to discrete tax expense related to tax deficiencies on stock-based compensation and a decrease in cash surrender value of company owned life insurance policies.
Previous wording
We maintain a level of liquidity sufficient to allow us to meet our cash needs in the short term. Over the long term, we manage our cash and capital structure to maximize shareholder return, maintain our financial condition, and maintain flexibility for our future strategic investments. We continuously assess our capital requirements, working capital needs, debt and leverage levels, debt and lease maturity schedules, capital expenditure requirements, dividends, future investments or acquisitions, and potential share repurchases. We believe our operating cash flows, credit facilities, as well as any potential future borrowings, will be sufficient to fund our future payments and long-term initiatives.
Current wording
We maintain a level of cash and liquidity sufficient to allow us to meet our cash needs in the short term. Over the long term, we manage our cash and capital structure to maximize shareholder return, maintain our financial condition, and maintain flexibility for our future strategic investments. We continuously assess our capital requirements, working capital needs, debt and leverage levels, debt and lease maturity schedules, capital expenditure requirements, dividends, future investments or acquisitions, and potential share repurchases. We believe our operating cash flows, credit facilities, as well as any potential future borrowings, will be sufficient to fund our future payments and long-term initiatives.
Previous wording
As of September 30, 2024, we had $161.2 million in cash and cash equivalents, and $383.1 million of availability under our revolving credit facility under the Credit Agreement (as defined in Note 8 of the Notes to Condensed Consolidated Financial Statements). We also have the ability to request an increase to the revolving and/or incremental term loan facilities by up to an additional $400.0 million in the aggregate upon approval of the lenders providing any such increase and the satisfaction of certain other conditions. See Note 8 of the Notes to Condensed Consolidated Financial Statements for a description of our credit facilities.
Current wording
As of March 31, 2025, we had $231.2 million in cash and cash equivalents, and $595.3 million of availability under our revolving credit facility under the Credit Agreement (as defined in Note 8 of the Notes to Condensed Consolidated Financial Statements). We also have the ability to request an increase to the revolving and/or incremental term loan facilities by up to an additional $370.0 million in the aggregate upon approval of the lenders providing any such increase and the satisfaction of certain other conditions. See Note 8 of the Notes to Condensed Consolidated Financial Statements for a description of our credit facilities.
Previous wording
The Condensed Consolidated Statements of Cash Flows reflect the following for the nine months ended September 30:
Current wording
The Condensed Consolidated Statements of Cash Flows reflect the following for the three months ended March 31:
Previous wording
Net cash flows provided by operating activities were $263.7 million in the first nine months of 2024, compared to $389.3 million in the first nine months of 2023. The decrease in net cash flows provided by operating activities was primarily due to the net change in assets and liabilities, net of acquired businesses, as it used $189.8 million more cash in the first nine months of 2024 compared to the same period in 2023. The net change in assets and liabilities was partially offset by an increase in net income of $66.7 million. The primary use of cash in net assets was the increase of $102.1 million in accounts receivable due to seasonally higher sales in the first nine months of 2024. While we continued to reduce inventory in the first nine months of 2024, the larger decrease in inventory in the first nine months of 2023 was due to initiatives to reduce inventory as RV production demand slowed from record levels seen during the first half of 2022 and decreasing commodity and freight costs.
Current wording
Net cash flows provided by operating activities were $42.7 million in the first three months of 2025, compared to $7.7 million used in the first three months of 2024. The increase in net cash flows provided by operating activities was primarily due to the net change in assets and liabilities, net of acquired businesses, as it used $30.9 million less cash in the first three months of 2025 compared to the same period in 2024, and an increase in net income of $12.9 million. The primary use of cash in net assets was the increase of $149.6 million in accounts receivable due to seasonally higher sales in the first three months of 2025.
Previous wording
Depreciation and amortization was $96.0 million in the first nine months of 2024, and is expected to be approximately $125 to $135 million for the full year 2024. Non-cash stock-based compensation expense in the first nine months of 2024 was $14.0 million. Non-cash stock-based compensation expense is expected to be approximately $17 to $22 million for the full year 2024.
Current wording
Depreciation and amortization was $29.5 million in the first three months of 2025, and is expected to be approximately $115 to $125 million for the full year 2025. Non-cash stock-based compensation expense in the first three months of 2025 was $4.9 million. Non-cash stock-based compensation expense is expected to be approximately $18 to $23 million for the full year 2025.
Previous wording
Cash flows used in investing activities of $50.6 million in the first nine months of 2024 were primarily comprised of $31.4 million for capital expenditures and $20.0 million for the acquisition of a business. Cash flows used in investing activities of $71.6 million in the first nine months of 2023 were primarily comprised of $50.1 million for capital expenditures and $25.9 million for the acquisitions of businesses.
Current wording
Cash flows used in investing activities of $42.0 million in the first three months of 2025 were primarily comprised of $29.6 million for the acquisition of a business and $9.0 million for capital expenditures. Cash flows used in investing activities of $8.4 million in the first three months of 2024 were primarily comprised of $8.6 million for capital expenditures.
Previous wording
Our capital expenditures are primarily for replacement and growth. Over the long term, based on our historical capital expenditures, the replacement portion has averaged approximately one to two percent of net sales, while the growth portion has averaged approximately two to three percent of net sales. However, there are many factors that can impact the actual spending compared to these historical averages. We estimate full year 2024 capital expenditures of $35 to $45 million, including investments in automation and lean projects.
Current wording
Our capital expenditures are primarily for replacement and growth. Over the long term, based on our historical capital expenditures, the replacement portion has averaged approximately one to two percent of net sales, while the growth portion has averaged approximately two to three percent of net sales. However, there are many factors that can impact the actual spending compared to these historical averages. We estimate full year 2025 capital expenditures of $50 to $70 million, including investments in automation and lean projects, which we expect to fund with cash flows from operations or periodic borrowings under the revolving credit facility.
Previous wording
Capital expenditures and acquisitions of businesses in the first nine months of 2024 were funded by cash on hand and borrowings under our Credit Agreement. Capital expenditures and any acquisitions in the remainder of fiscal year 2024 are expected to be funded primarily from cash generated from operations, as well as periodic borrowings under our revolving credit facility.
Current wording
Capital expenditures and acquisitions of businesses in the first three months of 2025 were funded by cash on hand and borrowings under our Credit Agreement. Capital expenditures and any acquisitions in the remainder of fiscal year 2025 are expected to be funded primarily from cash generated from operations, as well as periodic borrowings under our revolving credit facility.
Previous wording
Cash flows used in financing activities of $117.2 million in the first nine months of 2024 were primarily comprised of payments of quarterly dividends of $80.2 million, net debt repayments of $27.9 million under our revolving credit facility, Term Loan, and other borrowings, and cash outflows of $9.1 million related to vesting of stock-based awards, net of shares tendered for payment of taxes.
Current wording
Cash flows used in financing activities of $26.4 million in the first three months of 2024 were primarily comprised of payments of quarterly dividends of $26.7 million and cash outflows of $9.0 million related to vesting of stock-based awards, net of shares tendered for payment of taxes, partially offset by $9.3 million in net borrowings under our revolving credit facility.
Previous wording
We have paid regular quarterly dividends since 2016. Future dividend policy with respect to our common stock will be determined by our Board of Directors considering our prevailing financial needs, earnings, and other relevant factors, including any limitations in our debt agreements, such as maintenance of certain financial ratios.
Current wording
We have paid regular quarterly dividends since 2016. Future dividend policy with respect to our common stock will be determined by our Board of Directors in light of our prevailing financial needs, earnings, and other relevant factors, including any limitations in our debt agreements, such as maintenance of certain financial ratios.
Previous wording
In May 2022, our Board of Directors authorized a stock repurchase program for the purchase of up to $200.0 million of our common stock over a three-year period ending on May 19, 2025. No shares were repurchased during the nine months ended September 30, 2024 and 2023. As of September 30, 2024, there was $175.9 million remaining under the stock repurchase program.
Current wording
In May 2022, our Board of Directors authorized a stock repurchase program for the purchase of up to $200.0 million of our common stock over a three-year period ending on May 19, 2025. Under this stock repurchase program, we purchased 308,898 shares at a weighted average price of $91.47 per share during the three months ended March 31, 2025, using approximately $28.3 million of the net proceeds from the offering of the 2030 Convertible Notes. No shares were repurchased during the three months ended March 31, 2024. As of March 31, 2025, there was $147.6 million remaining under the stock repurchase program.
Previous wording
We are in compliance with the corporate governance requirements of the Securities and Exchange Commission (the “SEC”) and the New York Stock Exchange. Our governance documents and committee charters and key practices have been posted to the “Investors” section of our website (www.lci1.com) and are updated periodically. The website also contains, or provides direct links to, all SEC filings, press releases and investor presentations. We have also established a Whistleblower Policy, which includes a toll-free hotline (800-461-9330) to report complaints about our accounting, internal controls, auditing matters or other concerns. The Whistleblower Policy and procedure for complaints can be found on our website (www.lci1.com).
Current wording
We are in compliance with the corporate governance requirements of the Securities and Exchange Commission (the “SEC”) and the New York Stock Exchange. Our governance documents, committee charters, and key practices have been posted to the “Investors” section of our website (www.lci1.com) and are updated periodically. The website also contains, or provides direct links to, all SEC filings, press releases and investor presentations. We have also established a Whistleblower Policy, which includes a toll-free hotline (800-461-9330) to report complaints about our accounting, internal controls, auditing matters or other concerns. The Whistleblower Policy and procedure for complaints can be found on our website (www.lci1.com).
Previous wording
The prices of key raw materials, consisting primarily of steel and aluminum, and components used by us which are made from these raw materials, are influenced by demand and other factors specific to these commodities, as well as by inflationary pressures. We experienced reduced prices of these commodities in the first nine months of 2024, but prices of these commodities have historically been volatile. As a result, while we currently expect commodity prices for the remainder of the year to remain generally consistent with the third quarter of 2024, there can be no assurance that raw material costs will not increase. Please see "Results of Operations" above for additional information regarding the impact of raw material costs on our results of operations for the first nine months of 2024.
Current wording
The prices of key raw materials, consisting primarily of steel and aluminum, and components used by us which are made from these raw materials, are influenced by demand and other factors specific to these commodities, including tariffs for materials sourced internationally. While the prices of steel and aluminum consumed in certain of our manufactured components in the first three months of 2025 were favorable as compared to the first three months of 2024, commodity prices for steel and aluminum generally have been increasing, including during the first three months of 2025, and are expected remain elevated through the remainder of 2025. However, prices of these commodities have historically been volatile and there can be no assurances of future prices. Please see "Results of Operations" above for additional information regarding the impact of raw material costs on our results of operations for the first three months of 2025.
Showing the first 40 of 41 pairs. Open the source sections for the rest.
Rearranged current paragraphs (4)
Current report — wording carried from elsewhere
•Core Systems: Appliances, air conditioners, televisions, sound systems, and tankless water heaters.
Current report — wording carried from elsewhere
•debt repayments of $299.4 million under our revolving credit facility, term loan, and other borrowings,
Current report — wording carried from elsewhere
•payments of quarterly dividends of $29.4 million,
Current report — wording carried from elsewhere
•cash outflows of $4.8 million related to vesting of stock-based awards, net of shares tendered for payment of taxes, and
Rearranged previous paragraphs (4)
Previous report — wording carried elsewhere
Net sales of the OEM Segment in the first nine months of 2024 decreased by $6.8 million, compared to the same period of 2023. Net sales of components to OEMs were to the following markets for the nine months ended September 30:
Previous report — wording carried elsewhere
Our increase in net sales to RV OEMs during the first nine months of 2024 was primarily driven by a 14 percent increase in North American travel trailer and fifth-wheel wholesale shipments during the first nine months of 2024, partially offset by a shift in unit mix towards lower content single axle travel trailers. The increase in North American travel trailer and fifth-wheel wholesale shipments was primarily due to retail dealers restocking inventories during the 2024 period compared to destocking efforts in the same period of 2023.
Previous report — wording carried elsewhere
Our decrease in net sales to OEMs in Adjacent Industries during the first nine months of 2024 was primarily due to lower sales to North American marine and utility trailer OEMs, driven by current dealer inventory levels, inflation, and elevated interest rates impacting retail consumers.
Previous report — wording carried elsewhere
Net sales of the Aftermarket Segment in the first nine months of 2024 decreased by $2.4 million, compared to the same period of 2023. Net sales of components in the Aftermarket Segment were as follows for the nine months ended September 30: