View all news

LCI Industries Reports Record Second Quarter Results

08/03/2021

Growth driven by consistent execution to meet record consumer demand 

Second Quarter 2021 Highlights

  • Net sales of $1.1 billion in the second quarter, an increase of 108% year-over-year
  • Net income increased $54.7 million, or 415%, to $67.9 million, or $2.67 per diluted share, in the second quarter
  • Adjusted EBITDA increased $75.7 million, or 166%, to $121.3 million in the second quarter
  • North American RV OEM sales grew to $548.6 million in the second quarter, up 151% year-over-year, driven by record wholesale and retail demand for the quarter
  • North American RV industry record 151,800 shipments in the second quarter and record 300,300 shipments in the first six months of 2021
  • Adjacent Industries OEM sales grew to $269.8 million in the second quarter, up 107% year-over-year
  • Aftermarket Segment sales grew to $229.1 million in the second quarter, up 45% year-over-year
  • Net sales from acquisitions in 2020 and 2021 contributed a combined $54 million in the second quarter
  • Content per travel trailer and fifth-wheel RV, adjusted to remove Furrion sales from prior periods, for the twelve months ended June 30, 2021, increased $250 to $3,621
  • Increased quarterly dividend to $0.90 per share, totaling $22.7 million in the second quarter
  • Issued 1.125% convertible notes due 2026 in a private placement to qualified institutional buyers

ELKHART, Ind.--(BUSINESS WIRE)-- 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 and transportation product markets, and the related aftermarkets of those industries, today reported second quarter 2021 results.

“We delivered another incredible quarter, growing sales in the triple-digits while driving impressive content and market share gains. These strong results are enhanced by the success of our recent acquisitions, including Challenger, Veada, Trazcor, Schaudt, and Ranch Hand, enabling us to continue expanding our presence as a leading supplier in the outdoor recreation space across the globe,” commented Jason Lippert, LCI Industries’ President and Chief Executive Officer.

“There remains no end in sight for the current levels of retail demand as waves of consumers enter the outdoor lifestyle, and each of our businesses are strongly positioned to capture new growth opportunities through surging demand for both new and rental units,” continued Lippert. “Throughout the quarter, our teams have demonstrated remarkable agility in navigating through freight, labor, and supply chain-related headwinds impacting the entire industry, underscoring our commitment to operational excellence across our businesses as we focus on managing significant cost inflation and related pricing adjustments to maintain profitability. I could not be more pleased with our performance and continued growth trajectory and would like to again thank the entire LCI team for their hard work as we keep up this momentum in driving value for our shareholders.”

"I also want to thank our team members for their dedication and tireless effort during this period of record demand. Due to the strength of both our teams and our culture, we have been able to cement our position as an industry leader while ensuring that our customers meet their commitments," commented Ryan Smith, Group President - North America.

Second Quarter 2021 Results

Consolidated net sales for the second quarter of 2021 were $1.1 billion, an increase of 108 percent from 2020 second quarter net sales of $525.8 million. Net income in the second quarter of 2021 was $67.9 million, or $2.67 per diluted share, compared to net income of $13.2 million, or $0.52 per diluted share, in the second quarter of 2020. Adjusted EBITDA in the second quarter of 2021 was $121.3 million, compared to adjusted EBITDA of $45.6 million in the second quarter of 2020. Additional information regarding adjusted EBITDA, as well as a reconciliation of this non-GAAP financial measure to the most directly comparable GAAP financial measure, are provided in the "Supplementary Information - Reconciliation of Non-GAAP Measures" section below.

The increase in year-over-year net sales for the second quarter of 2021 was primarily driven by record RV retail demand and strong Aftermarket sales growth. Net sales from acquisitions completed in 2020 and 2021 contributed approximately $54 million in the second quarter of 2021. Additionally, pandemic-related shutdowns in the second quarter of 2020 had a negative impact on sales in that quarter.

The Company's average product content per travel trailer and fifth-wheel RV, adjusted to remove Furrion sales from prior periods, for the twelve months ended June 30, 2021, increased $250 to $3,621, compared to $3,371 for the twelve months ended June 30, 2020. The content increase in towables was a result of organic growth, including new product introductions.

July 2021 Results

July 2021 consolidated net sales were approximately $355 million, up 25 percent fromJuly 2020, as production increased significantly to meet elevated RV and marine retail demand.

Balance Sheet and Other Items

At June 30, 2021, the Company's cash and cash equivalents balance was $98.0 million, up from $51.8 million at December 31, 2020. The Company generated net cash flows from operations of $23.9 million and used $103.9 million for acquisitions, $41.7 million for dividend payments to shareholders, and $42.0 million for capital expenditures in the six months ended June 30, 2021. Cash flows from operations were partially offset by strategic investments in working capital to support record demand and mitigate future supply chain disruptions.

On May 13, 2021, the Company closed the sale of $460.0 million aggregate principal amount of 1.125% convertible senior notes due 2026 (the "Convertible Notes") in a private placement to qualified institutional buyers, resulting in net proceeds to the Company of approximately $448.2 million after deducting the initial purchasers' discounts and offering expenses payable by the Company. Concurrent with the issuance of the Convertible Notes, the Company entered into convertible note hedge transactions and warrant transactions. The proceeds from the sale of the Convertible Notes were used to enter into the convertible note hedge transactions for $100.1 million (which was partially offset by the proceeds from the warrant transactions of $48.5 million), to repay outstanding borrowings under the Company's revolving credit facility, and for general corporate purposes.

The Company's outstanding long-term indebtedness, including current maturities, was $1.0 billion at June 30, 2021, and the Company remained in compliance with its debt covenants. The Company believes that its current liquidity is adequate to meet operating needs for the foreseeable future.

Conference Call & Webcast

LCI Industries will host a conference call to discuss its second quarter results on Tuesday, August 3, 2021, at 8:30 a.m. Eastern time, which may be accessed by dialing (877) 668-4883 for participants in the U.S./Canada or (825) 312-2360 for participants outside the U.S./Canada using the required conference ID 8367487. 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 (800) 585-8367 for participants in the U.S./Canada or (416) 621-4642 for participants outside the U.S./Canada and referencing access code 8367487. 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 and transportation product markets, consisting primarily of recreational vehicles and adjacent industries, including buses; trailers used to haul boats, livestock, equipment, and other cargo; trucks; boats; 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. 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; and other accessories. Additional information about Lippert and its products can be found at www.lci1.com.

Forward-Looking Statements

This press release 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 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, retail and wholesale demand, integration of acquisitions, R&D investments, 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 COVID-19, or other future pandemics, on the global economy and 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, 2020, 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

June 30,

 

Six Months Ended

June 30,

 

Last Twelve

 

2021

 

2020

 

2021

 

2020

 

Months

(In thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

$

1,093,720

 

 

$

525,765

 

 

$

2,093,978

 

 

$

1,185,435

 

 

$

3,704,709

 

Cost of sales

836,109

 

 

397,023

 

 

1,594,590

 

 

898,088

 

 

2,786,578

 

Gross profit

257,611

 

 

128,742

 

 

499,388

 

 

287,347

 

 

918,131

 

Selling, general and administrative expenses

163,629

 

 

107,960

 

 

303,975

 

 

222,299

 

 

564,832

 

Operating profit

93,982

 

 

20,782

 

 

195,413

 

 

65,048

 

 

353,299

 

Interest expense, net

3,472

 

 

3,698

 

 

6,177

 

 

8,895

 

 

10,735

 

Income before income taxes

90,510

 

 

17,084

 

 

189,236

 

 

56,153

 

 

342,564

 

Provision for income taxes

22,621

 

 

3,898

 

 

47,227

 

 

14,753

 

 

83,515

 

Net income

$

67,889

 

 

$

13,186

 

 

$

142,009

 

 

$

41,400

 

 

$

259,049

 

 

 

 

 

 

 

 

 

 

 

Net income per common share:

 

 

 

 

 

 

 

 

 

Basic

$

2.69

 

 

$

0.52

 

 

$

5.63

 

 

$

1.65

 

 

$

10.28

 

Diluted

$

2.67

 

 

$

0.52

 

 

$

5.60

 

 

$

1.64

 

 

$

10.22

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

Basic

25,275

 

 

25,150

 

 

25,230

 

 

25,108

 

 

25,202

 

Diluted

25,385

 

 

25,219

 

 

25,351

 

 

25,177

 

 

25,350

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

$

26,754

 

 

$

24,185

 

 

$

51,270

 

 

$

48,799

 

 

$

100,451

 

Capital expenditures

$

21,048

 

 

$

6,594

 

 

$

42,005

 

 

$

14,549

 

 

$

84,802

 

LCI INDUSTRIES

SEGMENT RESULTS

(unaudited)

 

Three Months Ended

June 30,

 

Six Months Ended

June 30,

 

Last Twelve

 

2021

 

2020

 

2021

 

2020

 

Months

(In thousands)

 

 

 

 

 

 

 

 

 

Net sales:

 

 

 

 

 

 

 

 

 

OEM Segment:

 

 

 

 

 

 

 

 

 

RV OEMs:

 

 

 

 

 

 

 

 

 

Travel trailers and fifth-wheels

$

527,614

 

 

$

212,518

 

 

$

1,030,630

 

 

$

519,626

 

 

$

1,832,571

 

Motorhomes

67,253

 

 

24,713

 

 

129,846

 

 

62,800

 

 

225,142

 

Adjacent Industries OEMs

269,787

 

 

130,581

 

 

520,428

 

 

317,743

 

 

890,933

 

Total OEM Segment net sales

864,654

 

 

367,812

 

 

1,680,904

 

 

900,169

 

 

2,948,646

 

Aftermarket Segment:

 

 

 

 

 

 

 

 

 

Total Aftermarket Segment net sales

229,066

 

 

157,953

 

 

413,074

 

 

285,266

 

 

756,063

 

Total net sales

$

1,093,720

 

 

$

525,765

 

 

$

2,093,978

 

 

$

1,185,435

 

 

$

3,704,709

 

 

 

 

 

 

 

 

 

 

 

Operating profit:

 

 

 

 

 

 

 

 

 

OEM Segment

$

63,334

 

 

$

1,763

 

 

$

142,621

 

 

$

44,952

 

 

$

253,681

 

Aftermarket Segment (1)

30,648

 

 

19,019

 

 

52,792

 

 

20,096

 

 

99,618

 

Total operating profit

$

93,982

 

 

$

20,782

 

 

$

195,413

 

 

$

65,048

 

 

$

353,299

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization:

 

 

 

 

 

 

 

 

 

OEM Segment depreciation

$

12,081

 

 

$

11,489

 

 

$

24,768

 

 

$

23,549

 

 

$

48,483

 

Aftermarket Segment depreciation

3,331

 

 

3,442

 

 

5,829

 

 

6,582

 

 

12,089

 

Total depreciation

$

15,412

 

 

$

14,931

 

 

$

30,597

 

 

$

30,131

 

 

$

60,572

 

 

 

 

 

 

 

 

 

 

 

OEM Segment amortization

$

7,806

 

 

$

6,320

 

 

$

14,258

 

 

$

12,743

 

 

$

27,840

 

Aftermarket Segment amortization

3,536

 

 

2,934

 

 

6,415

 

 

5,925

 

 

12,039

 

Total amortization

$

11,342

 

 

$

9,254

 

 

$

20,673

 

 

$

18,668

 

 

$

39,879

 

(1)Results for the 2021 periods include a non-cash charge for inventory fair value step-up of $0.6 million for each of the second quarter and the first six months of 2021 related to Ranch Hand purchase accounting. Results for the 2020 periods include a non-cash charge for inventory fair value step-up of $0.7 million for the second quarter of 2020 and $6.9 million for the first six months of 2020 related to CURT purchase accounting.

LCI INDUSTRIES

BALANCE SHEET INFORMATION

(unaudited)

 

June 30,

 

December 31,

 

2021

 

2020

(In thousands)

 

 

 

 

 

 

 

ASSETS

 

 

 

Current assets

 

 

 

Cash and cash equivalents

$

97,961

 

 

$

51,821

 

Accounts receivable, net of allowances of $6,471 and $5,642 at June 30, 2021 and December 31, 2020, respectively

418,014

 

 

268,625

 

Inventories, net

620,183

 

 

493,899

 

Prepaid expenses and other current assets

79,817

 

 

55,456

 

Total current assets

1,215,975

 

 

869,801

 

Fixed assets, net

408,693

 

 

387,218

 

Goodwill

496,422

 

 

454,728

 

Other intangible assets, net

437,398

 

 

420,885

 

Operating lease right-of-use assets

161,250

 

 

104,179

 

Other assets

56,440

 

 

61,220

 

Total assets

$

2,776,178

 

 

$

2,298,031

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

Current liabilities

 

 

 

Current maturities of long-term indebtedness

$

65,880

 

 

$

17,831

 

Accounts payable, trade

257,162

 

 

184,931

 

Current portion of operating lease obligations

27,160

 

 

25,432

 

Accrued expenses and other current liabilities

200,388

 

 

188,200

 

Total current liabilities

550,590

 

 

416,394

 

Long-term indebtedness

941,824

 

 

720,418

 

Operating lease obligations

141,364

 

 

82,707

 

Deferred taxes

34,348

 

 

53,833

 

Other long-term liabilities

121,876

 

 

116,353

 

Total liabilities

1,790,002

 

 

1,389,705

 

Total stockholders’ equity

986,176

 

 

908,326

 

Total liabilities and stockholders’ equity

$

2,776,178

 

 

$

2,298,031

 

LCI INDUSTRIES

SUMMARY OF CASH FLOWS

(unaudited)

 

Six Months Ended

June 30,

 

2021

 

2020

(In thousands)

 

 

 

Cash flows from operating activities:

 

 

 

Net income

$

142,009

 

 

$

41,400

 

Adjustments to reconcile net income to cash flows provided by operating activities:

 

 

 

Depreciation and amortization

51,270

 

 

48,799

 

Stock-based compensation expense

13,859

 

 

7,404

 

Other non-cash items

4,305

 

 

546

 

Changes in assets and liabilities, net of acquisitions of businesses:

 

 

 

Accounts receivable, net

(142,489)

 

 

(62,611)

 

Inventories, net

(115,314)

 

 

63,404

 

Prepaid expenses and other assets

(16,401)

 

 

(27,679)

 

Accounts payable, trade

71,144

 

 

20,917

 

Accrued expenses and other liabilities

15,476

 

 

9,921

 

Net cash flows provided by operating activities

23,859

 

 

102,101

 

Cash flows from investing activities:

 

 

 

Capital expenditures

(42,005)

 

 

(14,549)

 

Acquisitions of businesses, net of cash acquired

(103,858)

 

 

(94,713)

 

Other investing activities

(566)

 

 

4,096

 

Net cash flows used in investing activities

(146,429)

 

 

(105,166)

 

Cash flows from financing activities:

 

 

 

Vesting of stock-based awards, net of shares tendered for payment of taxes

(7,925)

 

 

(4,616)

 

Proceeds from revolving credit facility

554,693

 

 

276,542

 

Repayments under revolving credit facility

(719,747)

 

 

(197,330)

 

Repayments under term loan and other borrowings

(8,652)

 

 

(9,554)

 

Proceeds from issuance of convertible notes

460,000

 

 

 

Purchases of convertible note hedge contracts

(100,142)

 

 

 

Proceeds from issuance of warrants concurrent with note hedge contracts

48,484

 

 

 

Payment of debt issuance costs

(11,844)

 

 

 

Payment of dividends

(41,678)

 

 

(32,670)

 

Payment of contingent consideration and holdbacks related to acquisitions

(4,387)

 

 

 

Other financing activities

 

 

(279)

 

Net cash flows provided by financing activities

168,802

 

 

32,093

 

Effect of exchange rate changes on cash and cash equivalents

(92)

 

 

(2,115)

 

Net increase in cash and cash equivalents

46,140

 

 

26,913

 

Cash and cash equivalents at beginning of period

51,821

 

 

35,359

 

Cash and cash equivalents cash at end of period

$

97,961

 

 

$

62,272

 

LCI INDUSTRIES

SUPPLEMENTARY INFORMATION

(unaudited)

 

Three Months Ended

 

Six Months Ended

 

 

 

 

June 30,

 

June 30,

 

Last Twelve

 

 

2021

 

2020

 

2021

 

2020

 

Months

 

Industry Data(1)(in thousands of units):

 

 

 

 

 

 

 

 

 

 

Industry Wholesale Production:

 

 

 

 

 

 

 

 

 

 

Travel trailer and fifth-wheel RVs

133.8

 

 

66.8

 

 

265.0

 

 

154.7

 

 

490.2

 

 

Motorhome RVs

14.8

 

 

6.9

 

 

29.1

 

 

17.0

 

 

52.8

 

 

Industry Retail Sales:

 

 

 

 

 

 

 

 

 

 

Travel trailer and fifth-wheel RVs

179.4

 

(2)

131.7

 

 

293.2

 

(2)

206.5

 

 

540.3

 

(2)

Impact on dealer inventories

(45.6)

 

(2)

(64.9)

 

 

(28.2)

 

(2)

(51.8)

 

 

(50.1)

 

(2)

Motorhome RVs

13.2

 

(2)

10.8

 

 

23.7

 

(2)

19.7

 

 

48.4

 

(2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Twelve Months Ended

 

 

 

 

 

 

 

 

June 30,

 

 

 

 

 

 

 

 

2021

 

2020

 

 

 

Lippert Content Per Industry Unit Produced: (3)

 

 

 

 

 

 

 

Travel trailer and fifth-wheel RV

 

 

 

 

$

3,621

 

 

$

3,371

 

 

 

 

Motorhome RV

 

 

 

 

$

2,644

 

 

$

2,308

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30,

 

December 31,

 

 

 

 

 

 

2021

 

2020

 

2020

 

Balance Sheet Data (debt availability in millions):

 

 

 

 

 

 

 

Remaining availability under the debt facilities (4)

 

$

522.6

 

 

$

401.2

 

 

$

352.2

 

 

Days sales in accounts receivable, based on last twelve months

 

31.3

 

 

30.0

 

 

31.6

 

 

Inventory turns, based on last twelve months

 

6.1

 

 

5.3

 

 

5.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2021

 

 

 

Estimated Full Year Data:

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

 

 

 

$130 - $150 million

 

 

 

Depreciation and amortization

 

 

 

 

$100 - $110 million

 

 

 

Stock-based compensation expense

 

 

 

 

$20 - $30 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) June 2021 retail sales data for RVs has not been published yet, therefore 2021 retail data for RVs includes an estimate for June 2021 retail units. Retail sales data will likely be revised upwards in future months as various states report.

(3) The content figures presented were adjusted to remove Furrion sales from prior periods, as the Furrion distribution and supply agreement was terminated effective December 31, 2019.

(4) Remaining availability under the debt facilities is subject to covenant restrictions and, in the case of $150 million of such availability, the lender's discretion.

LCI INDUSTRIES

SUPPLEMENTARY INFORMATION

RECONCILIATION OF NON-GAAP MEASURES

(unaudited)

The following table reconciles net income to adjusted net income and diluted net income per common share to adjusted diluted net income per common share.

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2021

 

2020

 

2021

 

2020

(In thousands, except per share amounts)

 

 

 

 

 

 

 

Net income

$

67,889

 

 

$

13,186

 

 

$

142,009

 

 

$

41,400

 

Non-cash charge for inventory fair value step-up

611

 

 

654

 

 

611

 

 

6,898

 

Income tax impact of inventory fair value step-up

(150)

 

 

(159)

 

 

(150)

 

 

(1,677)

 

Adjusted net income

$

68,350

 

 

$

13,681

 

 

$

142,470

 

 

$

46,621

 

 

 

 

 

 

 

 

 

Diluted net income per common share

$

2.67

 

 

$

0.52

 

 

$

5.60

 

 

$

1.64

 

Non-cash charge for inventory fair value step-up

0.02

 

 

0.03

 

 

0.02

 

 

0.27

 

Income tax impact of inventory fair value step-up

(0.01)

 

 

(0.01)

 

 

(0.01)

 

 

(0.07)

 

Adjusted diluted net income per common share

$

2.68

 

 

$

0.54

 

 

$

5.61

 

 

$

1.84

 

 

 

 

 

 

 

 

 

The following table reconciles net income to EBITDA and Adjusted EBITDA.

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2021

 

2020

 

2021

 

2020

(In thousands)

 

 

 

 

 

 

 

Net income

$

67,889

 

 

$

13,186

 

 

$

142,009

 

 

$

41,400

 

Interest expense, net

3,472

 

 

3,698

 

 

6,177

 

 

8,895

 

Provision for income taxes

22,621

 

 

3,898

 

 

47,227

 

 

14,753

 

Depreciation expense

15,412

 

 

14,931

 

 

30,597

 

 

30,131

 

Amortization expense

11,342

 

 

9,254

 

 

20,673

 

 

18,668

 

EBITDA

120,736

 

 

44,967

 

 

246,683

 

 

113,847

 

Non-cash charge for inventory fair value step-up

611

 

 

654

 

 

611

 

 

6,898

 

Adjusted EBITDA

$

121,347

 

 

$

45,621

 

 

$

247,294

 

 

$

120,745

 

In addition to reporting financial results in accordance with U.S. GAAP, the Company has provided the non-GAAP performance measures of adjusted net income, adjusted diluted net income per common share, and adjusted EBITDA to illustrate and improve comparability of its results from period to period. Adjusted net income is defined as net income adjusted for items that impact the comparability of the Company's results from period to period, which consisted of the inventory fair value step-up from the acquisitions of Ranch Hand and CURT and related tax impacts during the three and six month periods ended June 30, 2021 and 2020, respectively. Adjusted diluted net income per common share is defined as net income per common share adjusted for items that impact the comparability of the Company's results from period to period, which consisted of the inventory fair value step-up from the acquisitions of Ranch Hand and CURT and related tax impacts during the three and six month periods ended June 30, 2021 and 2020, respectively. Adjusted EBITDA is defined as net income before interest expense, net, provision for income taxes, depreciation and amortization expense, and other adjustments made in order to present comparable results from period to period, which consisted of the inventory fair value step-up from the acquisitions of Ranch Hand and CURT during the three and six month periods ended June 30, 2021 and 2020, respectively. The Company considers these non-GAAP measures 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.

Brian Hall, CFO
Phone: (574) 535-1125
E Mail: LCII@lci1.com

Source: LCI Industries

Multimedia Files:

View all news