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LCI Industries Reports Record Third Quarter Revenue

11/02/2021

Continued execution on operational initiatives drive growth

Third Quarter 2021 Highlights

  • Net sales of $1.2 billion in the third quarter, an increase of 41% year-over-year
  • Net income of $63.4 million, or $2.49 per diluted share, in the third quarter
  • Adjusted EBITDA of $118.1 million in the third quarter
  • North American RV OEM sales grew to $626.5 million in the third quarter, up 43% year-over-year, driven by record wholesale and retail demand for the quarter
  • Adjacent Industries OEM sales grew to $280.6 million in the third quarter, up 55% year-over-year
  • Aftermarket Segment sales grew to $219.0 million in the third quarter, up 18% year-over-year
  • Net sales from acquisitions in 2020 and 2021 contributed a combined $79 million in the third quarter
  • Content per travel trailer and fifth-wheel RV for the twelve months ended September 30, 2021, increased 10% year-over-year to $3,786
  • Completed the acquisition of Furrion with $230 million of projected annual sales
  • Quarterly dividend of $0.90 per share, totaling $22.7 million in the third quarter

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 third quarter 2021 results.

"We posted strong results in the third quarter considering significant cost pressures related to raw materials, freight, and labor. Our teams have continued to do an excellent job in managing the ongoing supply chain challenges to drive organic growth while meeting commitments to our valued customers," commented Jason Lippert, LCI Industries' President and Chief Executive Officer. "We look forward to building on this progress with the addition of Furrion, which will further enhance our product innovation initiatives, while advancing our footprint into new markets, allowing us to become a more dynamic supplier in the recreation space globally."

"Historic levels of new consumers are continuing to take advantage of the outdoor lifestyle, and our Aftermarket business is poised to benefit from the repair, replacement, and upgrade cycles for the record number of RVs currently entering the market. We also remain focused on adding scalable capacity to meet this demand through new automation projects and other operational initiatives. These projects are designed to help us mitigate the impact of heightened material costs and labor constraints to maintain profitability," continued Lippert. "I am exceptionally proud of our performance this quarter and would like to thank the LCI team members for their dedication as we work to deliver value for shareholders."

"The integration of Furrion is well underway, and we are excited about the innovative product suite this acquisition brings. Our goal is to inject more resources into research, development, and innovation to introduce more great products to all of our markets," commented Ryan Smith, Group President - North America.

Third Quarter 2021 Results

Consolidated net sales for the third quarter of 2021 were $1.2 billion, an increase of 41 percent from 2020 third quarter net sales of $827.7 million. Net income in the third quarter of 2021 was $63.4 million, or $2.49 per diluted share, compared to net income of $68.3 million, or $2.70 per diluted share, in the third quarter of 2020. Adjusted EBITDA in the third quarter of 2021 was $118.1 million, compared to adjusted EBITDA of $119.4 million in the third 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 third 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 $79 million in the third quarter of 2021.

The Company's average product content per travel trailer and fifth-wheel RV for the twelve months ended September 30, 2021, increased $358 to $3,786, compared to $3,428 for the twelve months ended September 30, 2020, adjusted to remove Furrion sales from prior periods. The content increase in towables was a result of organic growth, including new product introductions.

October 2021 Results

October 2021 consolidated net sales were approximately $441 million, up 52 percent from October 2020, as production increased significantly to meet elevated RV and marine retail demand.

Balance Sheet and Other Items

At September 30, 2021, the Company's cash and cash equivalents balance was $72.6 million, up from $51.8 million at December 31, 2020. The Company generated net cash flows from operations of $12.3 million and used $154.5 million for acquisitions, $73.9 million for capital expenditures, and $64.4 million for dividend payments to shareholders in the nine months ended September 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.

The Company's outstanding long-term indebtedness, including current maturities, was $1.1 billion at September 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 third quarter results on Tuesday, November 2, 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 7996875. 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 7996875. 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; appliances; air conditioners; televisions and sound systems; and other accessories. Additional information about Lippert and its products can be found at www.lippert.com.

Forward-Looking Statements

This press release contains certain "forward-looking statements" with respect to our financial condition, results of operations, 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
September 30,

 

Nine Months Ended
September 30,

 

Last Twelve

 

2021

 

2020

 

2021

 

2020

 

Months

(In thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

$

1,165,309

 

$

827,729

 

$

3,259,287

 

$

2,013,164

 

$

4,042,289

Cost of sales

 

913,728

 

 

606,290

 

 

2,508,318

 

 

1,504,378

 

 

3,094,016

Gross profit

 

251,581

 

 

221,439

 

 

750,969

 

 

508,786

 

 

948,273

 

Selling, general and administrative expenses

 

162,557

 

 

127,006

 

 

466,532

 

 

349,305

 

 

600,383

Operating profit

 

89,024

 

 

94,433

 

 

284,437

 

 

159,481

 

 

347,890

Interest expense, net

 

4,667

 

 

1,948

 

 

10,844

 

 

10,843

 

 

13,454

Income before income taxes

 

84,357

 

 

92,485

 

 

273,593

 

 

148,638

 

 

334,436

Provision for income taxes

 

20,956

 

 

24,138

 

 

68,183

 

 

38,891

 

 

80,333

Net income

$

63,401

 

$

68,347

 

$

205,410

 

$

109,747

 

$

254,103

 

 

 

 

 

 

 

 

 

 

Net income per common share:

 

 

 

 

 

 

 

 

 

Basic

$

2.51

 

$

2.72

 

$

8.14

 

$

4.37

 

$

10.07

Diluted

$

2.49

 

$

2.70

 

$

8.10

 

$

4.35

 

$

10.01

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

Basic

 

25,286

 

 

25,162

 

 

25,247

 

 

25,125

 

 

25,233

Diluted

 

25,417

 

 

25,313

 

 

25,371

 

 

25,220

 

 

25,376

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

$

28,941

 

$

24,567

 

$

80,211

 

$

73,366

 

$

104,825

Capital expenditures

$

31,867

 

$

14,114

 

$

73,872

 

$

28,663

 

$

102,555

LCI INDUSTRIES

SEGMENT RESULTS

(unaudited)

 

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

Last Twelve

 

2021

 

2020

 

2021

 

2020

 

Months

(In thousands)

 

 

 

 

 

 

 

 

 

Net sales:

 

 

 

 

 

 

 

 

 

OEM Segment:

 

 

 

 

 

 

 

 

 

RV OEMs:

 

 

 

 

 

 

 

 

 

Travel trailers and fifth-wheels

$

602,429

 

$

417,050

 

$

1,633,059

 

$

936,676

 

$

2,017,950

Motorhomes

 

63,259

 

 

44,441

 

 

193,105

 

 

107,241

 

 

243,960

Adjacent Industries OEMs

 

280,593

 

 

180,563

 

 

801,021

 

 

498,306

 

 

990,963

Total OEM Segment net sales

 

946,281

 

 

642,054

 

 

2,627,185

 

 

1,542,223

 

 

3,252,873

Aftermarket Segment:

 

 

 

 

 

 

 

 

 

Total Aftermarket Segment net sales

 

219,028

 

 

185,675

 

 

632,102

 

 

470,941

 

 

789,416

Total net sales

$

1,165,309

 

$

827,729

 

$

3,259,287

 

$

2,013,164

 

$

4,042,289

 

 

 

 

 

 

 

 

 

 

Operating profit:

 

 

 

 

 

 

 

 

 

OEM Segment

$

64,136

 

$

65,533

 

$

206,757

 

$

110,485

 

$

252,364

Aftermarket Segment (1)

 

24,888

 

 

28,900

 

 

77,680

 

 

48,996

 

 

95,526

Total operating profit

$

89,024

 

$

94,433

 

$

284,437

 

$

159,481

 

$

347,890

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization:

 

 

 

 

 

 

 

 

 

OEM Segment depreciation

$

12,782

 

$

11,911

 

$

37,054

 

$

35,460

 

$

49,357

Aftermarket Segment depreciation

 

3,669

 

 

2,860

 

 

9,993

 

 

9,442

 

 

12,896

Total depreciation

$

16,451

 

$

14,771

 

$

47,047

 

$

44,902

 

$

62,253

 

 

 

 

 

 

 

 

 

 

OEM Segment amortization

$

8,632

 

$

6,928

 

$

22,877

 

$

19,671

 

$

29,531

Aftermarket Segment amortization

 

3,858

 

 

2,868

 

 

10,287

 

 

8,793

 

 

13,041

Total amortization

$

12,490

 

$

9,796

 

$

33,164

 

$

28,464

 

$

42,572

(1)Results for the 2021 periods include a non-cash charge for inventory fair value step-up of $0.2 million for the third quarter and $0.8 million for the first nine 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 $0.4 million for the third quarter of 2020 and $7.3 million for the first nine months of 2020 related to CURT purchase accounting.

LCI INDUSTRIES

BALANCE SHEET INFORMATION

(unaudited)

 

 

September 30,

 

December 31,

 

2021

 

2020

(In thousands)

 

 

 

 

 

 

 

ASSETS

 

 

 

Current assets

 

 

 

Cash and cash equivalents

$

72,615

 

$

51,821

Accounts receivable, net of allowances of $7,454 and $5,642 at September 30, 2021 and December 31, 2020, respectively

 

394,766

 

 

268,625

Inventories, net

 

790,651

 

 

493,899

Prepaid expenses and other current assets

 

102,434

 

 

55,456

Total current assets

 

1,360,466

 

 

869,801

Fixed assets, net

 

421,053

 

 

387,218

Goodwill

 

568,885

 

 

454,728

Other intangible assets, net

 

518,300

 

 

420,885

Operating lease right-of-use assets

 

164,142

 

 

104,179

Other assets

 

55,339

 

 

61,220

Total assets

$

3,088,185

 

$

2,298,031

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

Current liabilities

 

 

 

Current maturities of long-term indebtedness

$

74,311

 

$

17,831

Accounts payable, trade

 

297,347

 

 

184,931

Current portion of operating lease obligations

 

28,751

 

 

25,432

Accrued expenses and other current liabilities

 

283,722

 

 

188,200

Total current liabilities

 

684,131

 

 

416,394

Long-term indebtedness

 

1,012,078

 

 

720,418

Operating lease obligations

 

143,839

 

 

82,707

Deferred taxes

 

56,309

 

 

53,833

Other long-term liabilities

 

160,688

 

 

116,353

Total liabilities

 

2,057,045

 

 

1,389,705

Total stockholders’ equity

 

1,031,140

 

 

908,326

Total liabilities and stockholders’ equity

$

3,088,185

 

$

2,298,031

LCI INDUSTRIES

SUMMARY OF CASH FLOWS

(unaudited)

 

 

Nine Months Ended
September 30,

 

2021

 

2020

(In thousands)

 

 

 

Cash flows from operating activities:

 

 

 

Net income

$

205,410

 

 

$

109,747

 

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

 

 

 

Depreciation and amortization

 

80,211

 

 

 

73,366

 

Stock-based compensation expense

 

20,295

 

 

 

13,646

 

Other non-cash items

 

5,418

 

 

 

1,818

 

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

 

 

 

Accounts receivable, net

 

(140,768

)

 

 

(103,209

)

Inventories, net

 

(253,031

)

 

 

24,423

 

Prepaid expenses and other assets

 

(28,274

)

 

 

(29,489

)

Accounts payable, trade

 

97,071

 

 

 

68,379

 

Accrued expenses and other liabilities

 

25,961

 

 

 

53,806

 

Net cash flows provided by operating activities

 

12,293

 

 

 

212,487

 

Cash flows from investing activities:

 

 

 

Capital expenditures

 

(73,872

)

 

 

(28,663

)

Acquisitions of businesses, net of cash acquired

 

(154,544

)

 

 

(94,909

)

Other investing activities

 

11,544

 

 

 

3,972

 

Net cash flows used in investing activities

 

(216,872

)

 

 

(119,600

)

Cash flows from financing activities:

 

 

 

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

 

(8,258

)

 

 

(4,807

)

Proceeds from revolving credit facility

 

832,493

 

 

 

285,827

 

Repayments under revolving credit facility

 

(912,547

)

 

 

(273,130

)

Repayments under term loan and other borrowings

 

(13,375

)

 

 

(15,385

)

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

 

(11,955

)

 

 

 

Payment of dividends

 

(64,425

)

 

 

(51,535

)

Payment of contingent consideration and holdbacks related to acquisitions

 

(8,061

)

 

 

(9

)

Other financing activities

 

1,972

 

 

 

(167

)

Net cash flows provided by (used in) financing activities

 

224,186

 

 

 

(59,206

)

Effect of exchange rate changes on cash and cash equivalents

 

1,187

 

 

 

(853

)

Net increase in cash and cash equivalents

 

20,794

 

 

 

32,828

 

Cash and cash equivalents at beginning of period

 

51,821

 

 

 

35,359

 

Cash and cash equivalents cash at end of period

$

72,615

 

 

$

68,187

 

LCI INDUSTRIES

SUPPLEMENTARY INFORMATION

(unaudited)

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

 

September 30,

 

September 30,

 

Last Twelve

 

 

2021

 

2020

 

2021

 

2020

 

Months

 

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

 

 

 

 

 

 

 

 

 

 

Industry Wholesale Production:

 

 

 

 

 

 

 

 

 

 

Travel trailer and fifth-wheel RVs

136.0

 

 

110.1

 

 

 

401.0

 

 

 

264.8

 

 

 

516.1

 

 

Motorhome RVs

13.3

 

 

11.3

 

 

 

42.4

 

 

 

28.3

 

 

 

54.8

 

 

Industry Retail Sales:

 

 

 

 

 

 

 

 

 

 

Travel trailer and fifth-wheel RVs

126.3

 

(2)

159.1

 

 

 

420.9

 

(2)

 

366.7

 

 

 

510.3

 

(2)

Impact on dealer inventories

9.7

 

(2)

(49.0)

 

 

 

(19.9)

 

(2)

 

(101.9)

 

 

 

5.8

 

(2)

Motorhome RVs

13.1

 

(2)

18.2

 

 

 

42.7

 

(2)

 

41.2

 

 

 

54.6

 

(2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Twelve Months Ended

 

 

 

 

 

 

 

 

September 30,

 

 

 

 

 

 

 

 

2021

 

2020

 

 

 

Lippert Content Per Industry Unit Produced: (3)

 

 

 

 

 

 

 

Travel trailer and fifth-wheel RV

 

 

 

 

$

3,786

 

 

$

3,428

 

 

 

 

Motorhome RV

 

 

 

 

$

2,732

 

 

$

2,399

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30,

 

December 31,

 

 

 

 

 

 

2021

 

2020

 

2020

 

Balance Sheet Data (debt availability in millions):

 

 

 

 

 

 

 

Remaining availability under the debt facilities (4)

 

$

417.2

 

 

$

460.9

 

 

$

352.2

 

 

Days sales in accounts receivable, based on last twelve months

 

 

30.9

 

 

 

30.8

 

 

 

31.6

 

 

Inventory turns, based on last twelve months

 

 

5.7

 

 

 

5.7

 

 

 

5.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2021

 

 

 

Estimated Full Year Data:

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

 

 

 

$130 - $150 million

 

 

 

Depreciation and amortization

 

 

 

 

$110 - $120 million

 

 

 

Stock-based compensation expense

 

 

 

 

$25 - $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) September 2021 retail sales data for RVs has not been published yet, therefore 2021 retail data for RVs includes an estimate for September 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
September 30,

 

Nine Months Ended
September 30,

 

2021

 

2020

 

2021

 

2020

(In thousands, except per share amounts)

 

 

 

 

 

 

 

Net income

$

63,401

 

 

$

68,347

 

 

$

205,410

 

 

$

109,747

 

Non-cash charge for inventory fair value step-up

 

179

 

 

 

388

 

 

 

790

 

 

 

7,286

 

Income tax impact of inventory fair value step-up

 

(44

)

 

 

(94

)

 

 

(194

)

 

 

(1,772

)

Adjusted net income

$

63,536

 

 

$

68,641

 

 

$

206,006

 

 

$

115,261

 

 

 

 

 

 

 

 

 

Diluted net income per common share

$

2.49

 

 

$

2.70

 

 

$

8.10

 

 

$

4.35

 

Non-cash charge for inventory fair value step-up

 

0.01

 

 

 

0.02

 

 

 

0.03

 

 

 

0.29

 

Income tax impact of inventory fair value step-up

 

(0.00

)

 

 

(0.00

)

 

 

(0.01

)

 

 

(0.07

)

Adjusted diluted net income per common share

$

2.50

 

 

$

2.72

 

 

$

8.12

 

 

$

4.57

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

2021

 

2020

 

2021

 

2020

(In thousands)

 

 

 

 

 

 

 

Net income

$

63,401

 

 

$

68,347

 

 

$

205,410

 

 

$

109,747

 

Interest expense, net

 

4,667

 

 

 

1,948

 

 

 

10,844

 

 

 

10,843

 

Provision for income taxes

 

20,956

 

 

 

24,138

 

 

 

68,183

 

 

 

38,891

 

Depreciation expense

 

16,451

 

 

 

14,771

 

 

 

47,047

 

 

 

44,902

 

Amortization expense

 

12,490

 

 

 

9,796

 

 

 

33,164

 

 

 

28,464

 

EBITDA

 

117,965

 

 

 

119,000

 

 

 

364,648

 

 

 

232,847

 

Non-cash charge for inventory fair value step-up

 

179

 

 

 

388

 

 

 

790

 

 

 

7,286

 

Adjusted EBITDA

$

118,144

 

 

$

119,388

 

 

$

365,438

 

 

$

240,133

 

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 nine month periods ended September 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 nine month periods ended September 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 nine month periods ended September 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

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