General IR Questions:

  1. What are the long-term growth drivers for the RV industry? Where does Lippert fit into this?

    • The fundamentals of the RV and boating industries are quite strong, and the RV lifestyle continues to increase in popularity among younger demographics. As Lippert continues to introduce innovative and technologically advanced products to meet the demands of these demographics, we believe there are promising growth opportunities for both Lippert and the broader RV industry.

    • As people cut back on air travel, hotel stays, cruises, and travel to large metro areas, RVs and boats provide a wonderful alternative for people to get outside and vacation safely with their families, providing an opportunity to introduce more people to RVing and boating than ever before.

    • Whether being used for short or long trips, RVs and boats allow families to control the destination, who they are around, and, most importantly, the place where they stay, making this an ideal time to consider purchasing a boat or RV.

    • With a record number of RVs currently on the road in the U.S., and 70% of new buyers historically remaining in the lifestyle and upgrading units in subsequent years, we are very encouraged for the long-term prospects of these trends serving as tailwinds across our businesses.

  2. Can you provide an update on the Furrion integration? When do you expect this to be complete?

    • The Furrion integration has been progressing smoothly, and we expect this business to contribute substantially to our aftermarket sales going forward as we leverage its robust catalog of innovative appliances and electronics to tap into a $1.5 billion addressable market in North America alone.

    • The Lippert teams have worked closely with the Furrion team for several years through our distribution partnership and have longstanding ties with its strong management and R&D teams, making for a smooth transition as we bring their operations into the fold.

  3. What is Lippert’s positioning and growth strategy in the Marine industry? Are you seeing similar demand trends in Marine that we’ve seen in the RV space?

    • We continue to execute on the strategy that proved so successful when we transitioned from a supplier to the manufactured housing industry into a supplier to the recreational vehicle industry, leveraging existing product knowledge and expertise to deliver a wide offering of engineered components.

    • Our strategic acquisitions of prominent brands such as Taylor Made, Lewmar, and Veada have strengthened our presence in Marine, which has become our largest channel in the adjacent market category, and is a continued area of focus for portfolio expansion. In addition, with the acquisitions of SureShade and the PWR-ARM brand of electric biminis, Lippert is now a predominant player in North America and Europe for marine shade solutions.

    • Lippert is also well-established as a leading supplier of marine furniture, which has been a substantial driver in adding content across our marine businesses.

    • Whereas RV inventories are starting to build back, marine inventories remain low, and accordingly, we anticipate a long runway for growth in this business over the next 2 years.

    • We look forward to supporting heightened Marine demand and new boaters driving this trend through our newly rolled out Captains program.

  4. Given the current dynamic environment and multiple recent acquisitions, are you planning on maintaining this pace for 2023?

    • We are currently prioritizing integrating and realizing new synergies from recent acquisitions, paying down debt, and preserving cash.

    • As we integrate recent acquisitions, like Furrion, we expect to see a positive impact to our operating cash flows in the coming quarters.