lcii-20240930

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


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

For the quarterly period ended: September 30, 2024


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

For the transition period from _________________ to _________________

Commission File Number: 001-13646

LCI INDUSTRIES

(Exact name of registrant as specified in its charter)


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

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

(574) 535-1125

(Registrant’s telephone number, including area code)

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

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $.01 par value	LCII	New York Stock Exchange

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

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

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

Large accelerated filer ☒ Accelerated filer ☐

Non-accelerated filer ☐ Smaller reporting company ☐

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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

The number of shares outstanding of the registrant’s common stock, as of the latest practicable date (October 31, 2024) was 25,462,361 shares of common stock.

LCI INDUSTRIES

TABLE OF CONTENTS


		Page
PART I –	FINANCIAL INFORMATION

	ITEM 1 – FINANCIAL STATEMENTS

	CONDENSED CONSOLIDATED STATEMENTS OF INCOME	4

	CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME	5

	CONDENSED CONSOLIDATED BALANCE SHEETS	6

	CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS	7

	CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY	8

	NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS	10

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

	ITEM 3 – QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	32

	ITEM 4 – CONTROLS AND PROCEDURES	32

PART II –	OTHER INFORMATION

	ITEM 1 – LEGAL PROCEEDINGS	33

	ITEM 1A – RISK FACTORS	33

	ITEM 5 – OTHER INFORMATION	33

	ITEM 6 – EXHIBITS	33

SIGNATURES		34

EXHIBIT 31.1 - SECTION 302 CEO CERTIFICATION

EXHIBIT 31.2 - SECTION 302 CFO CERTIFICATION

EXHIBIT 32.1 - SECTION 906 CEO CERTIFICATION

EXHIBIT 32.2 - SECTION 906 CFO CERTIFICATION

PART I – FINANCIAL INFORMATION

ITEM 1 – FINANCIAL STATEMENTS

LCI INDUSTRIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
(In thousands, except per share amounts)

Net sales	$	915,497	$	959,315	$	2,938,070	$	2,947,264
Cost of sales	695,539		748,367		2,227,761		2,332,125
Gross profit	219,958		210,948		710,309		615,139
Selling, general and administrative expenses	166,070		165,358		508,206		494,332
Operating profit	53,888		45,590		202,103		120,807
Interest expense, net	6,516		10,325		23,799		30,968
Income before income taxes	47,372		35,265		178,304		89,839
Provision for income taxes	11,760		9,378		44,984		23,267
Net income	$	35,612	$	25,887	$	133,320	$	66,572

Net income per common share:
Basic	$	1.40	$	1.02	$	5.24	$	2.63
Diluted	$	1.39	$	1.02	$	5.23	$	2.62

Weighted average common shares outstanding:
Basic	25,480		25,340		25,436		25,293
Diluted	25,558		25,504		25,477		25,405

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

LCI INDUSTRIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
(In thousands)

Net income	$	35,612	$	25,887	$	133,320	$	66,572
Other comprehensive income (loss):
Net foreign currency translation adjustment	10,382		(2,995)		5,661		(232)
Actuarial (loss) gain on pension plans	—		—		(345)		100

Total comprehensive income	$	45,994	$	22,892	$	138,636	$	66,440

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

LCI INDUSTRIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)


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

ASSETS
Current assets
Cash and cash equivalents	$	161,184		$	66,157

Accounts receivable, net of allowances of $6,262 and $5,701 at September 30, 2024 and December 31, 2023, respectively	319,166			214,707
Inventories, net	705,439			768,407

Prepaid expenses and other current assets	59,084			67,599
Total current assets	1,244,873			1,116,870
Fixed assets, net	443,349			465,781
Goodwill	593,882			589,550
Other intangible assets, net	412,818			448,759
Operating lease right-of-use assets	233,225			245,388

Other long-term assets	96,817			92,971
Total assets	$	3,024,964		$	2,959,319

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Current maturities of long-term indebtedness	$	222		$	589
Accounts payable, trade	193,636			183,697

Current portion of operating lease obligations	39,035			36,269
Accrued expenses and other current liabilities	199,081			174,437
Total current liabilities	431,974			394,992
Long-term indebtedness	822,322			846,834
Operating lease obligations	207,937			222,680
Deferred taxes	28,631			32,345
Other long-term liabilities	115,778			107,432
Total liabilities	1,606,642			1,604,283
Stockholders' equity
Common stock, par value $.01 per share	288			287
Paid-in capital	252,208			245,659
Retained earnings	1,228,454			1,177,034
Accumulated other comprehensive income	19,588			14,272
Stockholders' equity before treasury stock	1,500,538			1,437,252
Treasury stock, at cost	(82,216)			(82,216)
Total stockholders' equity	1,418,322			1,355,036
Total liabilities and stockholders' equity	$	3,024,964		$	2,959,319

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

LCI INDUSTRIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)


	Nine Months Ended September 30,
(In thousands)	2024		2023

Cash flows from operating activities:
Net income	$	133,320	$	66,572
Adjustments to reconcile net income to cash flows provided by operating activities:
Depreciation and amortization	96,000		98,818
Stock-based compensation expense	13,961		14,027

Other non-cash items	4,927		4,611
Changes in assets and liabilities, net of acquisitions of businesses:
Accounts receivable, net	(102,127)		(121,914)
Inventories, net	81,166		246,155
Prepaid expenses and other assets	(1,491)		31,237
Accounts payable, trade	8,333		54,817
Accrued expenses and other liabilities	29,599		(5,060)
Net cash flows provided by operating activities	263,688		389,263
Cash flows from investing activities:
Capital expenditures	(31,390)		(50,060)
Acquisitions of businesses	(19,957)		(25,851)


Other investing activities	781		4,284
Net cash flows used in investing activities	(50,566)		(71,627)
Cash flows from financing activities:
Vesting of stock-based awards, net of shares tendered for payment of taxes	(9,120)		(9,591)
Proceeds from revolving credit facility	86,248		248,900
Repayments under revolving credit facility	(87,766)		(414,554)
Repayments under term loan and other borrowings	(26,357)		(45,767)




Payment of dividends	(80,191)		(79,744)
Payment of contingent consideration and holdbacks related to acquisitions	(2)		(31,857)
Other financing activities	—		(834)
Net cash flows used in financing activities	(117,188)		(333,447)
Effect of exchange rate changes on cash and cash equivalents	(907)		(446)
Net increase (decrease) in cash and cash equivalents	95,027		(16,257)
Cash and cash equivalents at beginning of period	66,157		47,499
Cash and cash equivalents at end of period	$	161,184	$	31,242

Supplemental disclosure of cash flow information:
Cash paid during the period for:
Interest	$	24,535	$	29,459
Income taxes, net of refunds	$	38,685	$	7,531
Non-cash investing and financing activities:
Purchase of property and equipment in accrued expenses	$	106	$	451

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

LCI INDUSTRIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(Unaudited)


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

SEC Form 10-Q filed by LCI Industries