LCII LCI Industries

Delivered revenue growth and strong margin expansion

Second Quarter 2024 Highlights

• Net sales of $1.1 billion in the second quarter, up 4% year-over-year
• Net income of $61 million, or $2.40 per diluted share, in the second quarter, up from $33 million, or $1.31 per diluted share, in the second quarter of 2023
• EBITDA of $123 million in the second quarter, up 39% year-over-year
• Operating profit margin of 8.6% in the second quarter, up from 5.4% in the second quarter of 2023
• Inventory reduction of $142 million from the second quarter of 2023
• Quarterly dividend of $1.05 per share paid, totaling $27 million in the second quarter
• Cash flows provided by operations of $439 million for the LTM period ended June 30, 2024
• Improved liquidity position with $130 million of cash and cash equivalents and $373 million of availability on revolving credit facility at June 30, 2024, up sequentially from $23 million of cash and cash equivalents and $154 million of availability at March 31, 2024

LCI Industries (NYSE: LCII) which, through its wholly-owned subsidiary, Lippert Components, Inc. ("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, and the related aftermarkets of those industries, today reported second quarter 2024 results.

“We delivered strong second quarter results, with revenue growth in towable RV OEM, Aftermarket, and certain Adjacent OEM businesses while achieving over 300 basis points of operating profit margin expansion compared to the second quarter of 2023,” commented Jason Lippert, LCI Industries’ President and Chief Executive Officer. “Our strategy has been working. Diversification continues to help mitigate market cyclicality and support margins, while innovation is fueling content growth. Continued expansion into new product markets is also broadening our reach, which has opened up over $12 billion in combined addressable opportunities across our business. As a result, we continue to deliver strong results in a challenging backdrop and are well-placed to benefit meaningfully when the RV market rebounds and retail demand improves.”

“We are generating substantial cash flows through disciplined working capital management, having notably reduced inventories by $142 million in the past year, as well as by taking action to optimize and enhance our manufacturing footprint. Efforts to increase efficiencies, driving operational effectiveness through continuous improvements, are also helping to lift profitability. As our results reinforce our financial foundation, we plan to continue paying down debt and investing in growth opportunities for our business,” continued Mr. Lippert. “Heading further into the year, we will keep executing our strategy and drive sustained value creation for our stakeholders.”

“Thanks to the hard work and dedication of our team members, we showed solid performance in the second quarter while navigating a challenging environment. Through a consistent focus on our key strategic pillars, including customer service, safety, quality, culture and leadership, and innovation, we are delivering profitable growth while solidifying our leading position across the recreation space,” commented Ryan Smith, LCI Industries' Group President - North America.

Second Quarter 2024 Results

Consolidated net sales for the second quarter of 2024 were $1.1 billion, an increase of 4% from 2023 second quarter net sales of $1.0 billion. Net income in the second quarter of 2024 was $61.2 million, or $2.40 per diluted share, compared to $33.4 million, or $1.31 per diluted share, in the second quarter of 2023. EBITDA in the second quarter of 2024 was $122.6 million, compared to EBITDA of $88.2 million in the second quarter of 2023. Additional information regarding EBITDA, as well as reconciliations of this non-GAAP financial measure to the most directly comparable GAAP financial measure of net income, is 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 2024 was primarily driven by increased North American RV wholesale shipments of travel trailers and fifth-wheels and market share gains in the automotive aftermarket, partially offset by lower North American marine sales volume.

July 2024 Results

July 2024 consolidated net sales were approximately $311 million, up 6% from July 2023, primarily due to an approximate 15% increase in North American RV production, partially offset by an approximate 16% decline in marine sales compared to July 2023.

OEM Segment - Second Quarter Performance

OEM net sales for the second quarter of 2024 were $796.1 million, an increase of $37.1 million compared to the same period of 2023. RV OEM net sales for the second quarter of 2024 were $490.0 million, up 20% compared to the same prior year period, driven by a 15% increase in North American travel trailer and fifth-wheel wholesale shipments, increased selling prices which are indexed to select commodities, and market share gains. Adjacent Industries OEM net sales for the second quarter of 2024 were $306.2 million, down 12% year-over-year, primarily due to lower sales to North American marine and utility trailers OEMs, driven by current dealer inventory levels, inflation, and rising interest rates impacting retail consumers. North American marine OEM net sales in the second quarter of 2024 were $64.2 million, down 33% year-over-year.

Operating profit of the OEM Segment was $50.6 million in the second quarter of 2024, or 6.4% of net sales, compared to $18.6 million, or 2.5% of net sales, in the same period in 2023. The operating profit expansion of the OEM Segment for the quarter was primarily driven by decreased material and freight costs.

Aftermarket Segment - Second Quarter Performance

Aftermarket net sales for the second quarter of 2024 were $258.4 million, up 1% year-over-year, primarily driven by market share gains in the automotive aftermarket, partially offset by lower volumes within marine and RV aftermarkets, which have been negatively impacted by lower consumers' discretionary spending. Operating profit of the Aftermarket Segment was $40.0 million in the second quarter of 2024, or 15.5% of net sales, compared to $36.5 million, or 14.3% of net sales, in the same period in 2023. The operating profit expansion of the Aftermarket Segment for the quarter was primarily driven by decreased material and freight costs, partially offset by increased labor costs and investments to expand capacity within the automotive aftermarket.

“Our Aftermarket business remains healthy, as we delivered another quarter of solid margin expansion, continuing to support overall profitability for Lippert. Strength in the automotive aftermarket was a primary driver during the quarter, along with the structural tailwind from the record number of RVs entering the repair, replacement, and upgrade cycle,” commented Jamie Schnur, LCI Industries’ Group President – Aftermarket. “We look forward to continue delivering long-term, profitable growth as we leverage our core competencies and seek to gain share in premium markets like appliances, transportation, and building products.”

Income Taxes

The Company's effective tax rate was 26.0% for the quarter ended June 30, 2024, compared to 25.6% for the quarter ended June 30, 2023. The increase in the effective tax rate was primarily due to a discrete tax expense related to the surrender of certain company-owned life insurance policies.

Balance Sheet and Other Items

At June 30, 2024, the Company's cash and cash equivalents balance was $130.4 million, compared to $66.2 million at December 31, 2023. The Company used $53.5 million for dividend payments to shareholders, $21.3 million for capital expenditures, and $20.0 million for an acquisition in the six months ended June 30, 2024.

The Company remained focused on inventory reductions to improve cash generation and optimize working capital in the second quarter. As of June 30, 2024, the Company's net inventory balance was $687.9 million, down from $768.4 million at December 31, 2023 and $830.0 million at June 30, 2023.

The Company's outstanding long-term indebtedness, including current maturities, was $829.7 million at June 30, 2024, and the Company was in compliance with its debt covenants. As of June 30, 2024, the Company had $130.4 million of cash and cash equivalents, and the Company had $373.1 million of borrowing availability under the revolving credit facility.

Conference Call & Webcast

LCI Industries will host a conference call to discuss its second quarter results on Tuesday, August 6, 2024, at 8:30 a.m. Eastern time, which may be accessed by dialing (833) 470-1428 for participants in the U.S. and (929) 526-1599 for participants outside the U.S. using the required conference ID 439054. 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 (866) 813-9403 for participants in the U.S. and (44) 204-525-0658 for participants outside the U.S. and referencing access code 716397. 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 markets, consisting primarily of recreational vehicles and adjacent industries, including boats; buses; trailers used to haul boats, livestock, equipment, and other cargo; trucks; 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, as well as direct to retail customers via the Internet. 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; tankless water heaters; 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, profitability, margin growth, 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 production levels, future business prospects, net sales, expenses and income (loss), capital expenditures, tax rate, cash flow, financial condition, liquidity, covenant compliance, retail and wholesale demand, integration of acquisitions, R&D investments, commodity prices, addressable markets, 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 future pandemics, geopolitical tensions, armed conflicts, or natural disasters 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, 2023, 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

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Months

(In thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

$

1,054,544

 

$

1,014,639

 

$

2,022,573

 

$

1,987,949

 

$

3,819,432

Cost of sales

 

788,099

 

 

796,519

 

 

1,532,222

 

 

1,583,758

 

 

2,957,082

Gross profit

 

266,445

 

 

218,120

 

 

490,351

 

 

404,191

 

 

862,350

Selling, general and administrative expenses

 

175,841

 

 

162,946

 

 

342,136

 

 

328,974

 

 

665,924

Operating profit

 

90,604

 

 

55,174

 

 

148,215

 

 

75,217

 

 

196,426

Interest expense, net

 

7,962

 

 

10,249

 

 

17,283

 

 

20,643

 

 

37,064

Income before income taxes

 

82,642

 

 

44,925

 

 

130,932

 

 

54,574

 

 

159,362

Provision for income taxes

 

21,479

 

 

11,499

 

 

33,224

 

 

13,889

 

 

38,144

Net income

$

61,163

 

$

33,426

 

$

97,708

 

$

40,685

 

$

121,218

 

 

 

 

 

 

 

 

 

 

Net income per common share:

 

 

 

 

 

 

 

 

 

Basic

$

2.40

 

$

1.32

 

$

3.86

 

$

1.61

 

$

4.78

Diluted

$

2.40

 

$

1.31

 

$

3.85

 

$

1.60

 

$

4.76

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

Basic

 

25,473

 

 

25,329

 

 

25,344

 

 

25,273

 

 

25,386

Diluted

 

25,504

 

 

25,437

 

 

25,367

 

 

25,359

 

 

25,485

 

 

 

 

 

 

 

 

 

 

Depreciation

$

17,936

 

$

18,867

 

$

36,521

 

$

37,117

 

$

74,096

Amortization

$

14,103

 

$

14,183

 

$

28,207

 

$

28,432

 

$

56,851

Capital expenditures

$

12,720

 

$

16,923

 

$

21,328

 

$

34,082

 

$

49,455

LCI INDUSTRIES

SEGMENT RESULTS

(unaudited)

 

 

Three Months Ended

June 30,

 

Six Months Ended

June 30,

 

Last Twelve

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Months

(In thousands)

 

 

 

 

 

 

 

 

 

Net sales:

 

 

 

 

 

 

 

 

 

OEM Segment:

 

 

 

 

 

 

 

 

 

RV OEMs:

 

 

 

 

 

 

 

 

 

Travel trailers and fifth-wheels

$

426,349

 

$

338,739

 

$

817,112

 

$

669,292

 

$

1,506,673

Motorhomes

 

63,620

 

 

71,185

 

 

132,458

 

 

140,736

 

 

261,079

Adjacent Industries OEMs

 

306,155

 

 

349,084

 

 

604,866

 

 

707,152

 

 

1,173,245

Total OEM Segment net sales

 

796,124

 

 

759,008

 

 

1,554,436

 

 

1,517,180

 

 

2,940,997

Aftermarket Segment:

 

 

 

 

 

 

 

 

 

Total Aftermarket Segment net sales

 

258,420

 

 

255,631

 

 

468,137

 

 

470,769

 

 

878,435

Total net sales

$

1,054,544

 

$

1,014,639

 

$

2,022,573

 

$

1,987,949

 

$

3,819,432

 

 

 

 

 

 

 

 

 

 

Operating profit:

 

 

 

 

 

 

 

 

 

OEM Segment

$

50,562

 

$

18,642

 

$

83,398

 

$

17,921

 

$

82,838

Aftermarket Segment

 

40,042

 

 

36,532

 

 

64,817

 

 

57,296

 

 

113,588

Total operating profit

$

90,604

 

$

55,174

 

$

148,215

 

$

75,217

 

$

196,426

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization:

 

 

 

 

 

 

 

 

 

OEM Segment depreciation

$

13,733

 

$

14,655

 

$

27,768

 

$

29,004

 

$

57,160

Aftermarket Segment depreciation

 

4,203

 

 

4,212

 

 

8,753

 

 

8,113

 

 

16,936

Total depreciation

$

17,936

 

$

18,867

 

$

36,521

 

$

37,117

 

$

74,096

 

 

 

 

 

 

 

 

 

 

OEM Segment amortization

$

10,150

 

$

10,204

 

$

20,430

 

$

20,654

 

$

41,356

Aftermarket Segment amortization

 

3,953

 

 

3,979

 

 

7,777

 

 

7,778

 

 

15,495

Total amortization

$

14,103

 

$

14,183

 

$

28,207

 

$

28,432

 

$

56,851

LCI INDUSTRIES

BALANCE SHEET INFORMATION

(unaudited)

 

 

June 30,

 

December 31,

 

2024

 

2023

(In thousands)

 

 

 

 

 

 

 

ASSETS

 

 

 

Current assets

 

 

 

Cash and cash equivalents

$

130,418

 

$

66,157

Accounts receivable, net

 

333,059

 

 

214,707

Inventories, net

 

687,870

 

 

768,407

Prepaid expenses and other current assets

 

67,637

 

 

67,599

Total current assets

 

1,218,984

 

 

1,116,870

Fixed assets, net

 

448,025

 

 

465,781

Goodwill

 

588,523

 

 

589,550

Other intangible assets, net

 

421,713

 

 

448,759

Operating lease right-of-use assets

 

239,810

 

 

245,388

Other long-term assets

 

94,924

 

 

92,971

Total assets

$

3,011,979

 

$

2,959,319

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

Current liabilities

 

 

 

Current maturities of long-term indebtedness

$

558

 

$

589

Accounts payable, trade

 

202,622

 

 

183,697

Current portion of operating lease obligations

 

38,656

 

 

36,269

Accrued expenses and other current liabilities

 

190,657

 

 

174,437

Total current liabilities

 

432,493

 

 

394,992

Long-term indebtedness

 

829,188

 

 

846,834

Operating lease obligations

 

214,434

 

 

222,680

Deferred taxes

 

29,350

 

 

32,345

Other long-term liabilities

 

112,101

 

 

107,432

Total liabilities

 

1,617,566

 

 

1,604,283

Total stockholders' equity

 

1,394,413

 

 

1,355,036

Total liabilities and stockholders' equity

$

3,011,979

 

$

2,959,319

LCI INDUSTRIES

SUMMARY OF CASH FLOWS

(unaudited)

 

 

Six Months Ended

June 30,

 

 

2024

 

 

 

2023

 

(In thousands)

 

 

 

Cash flows from operating activities:

 

 

 

Net income

$

97,708

 

 

$

40,685

 

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

 

 

 

Depreciation and amortization

 

64,728

 

 

 

65,549

 

Stock-based compensation expense

 

9,301

 

 

 

9,080

 

Other non-cash items

 

2,238

 

 

 

2,192

 

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

 

 

 

Accounts receivable, net

 

(118,962

)

 

 

(80,952

)

Inventories, net

 

96,351

 

 

 

209,346

 

Prepaid expenses and other assets

 

(2,746

)

 

 

11,607

 

Accounts payable, trade

 

18,977

 

 

 

37,949

 

Accrued expenses and other liabilities

 

17,687

 

 

 

(21,891

)

Net cash flows provided by operating activities

 

185,282

 

 

 

273,565

 

Cash flows from investing activities:

 

 

 

Capital expenditures

 

(21,328

)

 

 

(34,082

)

Acquisitions of businesses

 

(19,957

)

 

 

(25,851

)

Other investing activities

 

552

 

 

 

4,344

 

Net cash flows used in investing activities

 

(40,733

)

 

 

(55,589

)

Cash flows from financing activities:

 

 

 

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

 

(9,111

)

 

 

(9,585

)

Proceeds from revolving credit facility

 

86,248

 

 

 

234,200

 

Repayments under revolving credit facility

 

(87,766

)

 

 

(402,726

)

Repayments under term loan and other borrowings

 

(15,007

)

 

 

(10,703

)

Payment of dividends

 

(53,455

)

 

 

(53,154

)

Payment of contingent consideration and holdbacks related to acquisitions

 

—

 

 

 

(517

)

Other financing activities

 

(2

)

 

 

(834

)

Net cash flows used in financing activities

 

(79,093

)

 

 

(243,319

)

Effect of exchange rate changes on cash and cash equivalents

 

(1,195

)

 

 

(62

)

Net increase (decrease) in cash and cash equivalents

 

64,261

 

 

 

(25,405

)

Cash and cash equivalents at beginning of period

 

66,157

 

 

 

47,499

 

Cash and cash equivalents at end of period

$

130,418

 

 

$

22,094

 

LCI INDUSTRIES

SUPPLEMENTARY INFORMATION

(unaudited)

 

 

Three Months Ended

 

Six Months Ended

 

 

 

 

June 30,

 

June 30,

 

Last Twelve

 

 

2024

 

 

2023

 

 

 

2024

 

 

 

2023

 

 

Months

 

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

 

 

 

 

 

 

 

 

 

 

Industry Wholesale Production:

 

 

 

 

 

 

 

 

 

 

Travel trailer and fifth-wheel RVs

82.0

 

 

71.6

 

 

 

155.5

 

 

 

134.3

 

 

 

280.4

 

 

Motorhome RVs

8.8

 

 

12.1

 

 

 

19.2

 

 

 

25.5

 

 

 

39.8

 

 

Industry Retail Sales:

 

 

 

 

 

 

 

 

 

 

Travel trailer and fifth-wheel RVs

96.4

 

(2)

109.1

 

 

 

161.8

 

(2)

 

180.9

 

 

 

307.5

 

(2)

Impact on dealer inventories

(14.4

)

(2)

(37.5

)

 

 

(6.3

)

(2)

 

(46.6

)

 

 

(27.7

)

(2)

Motorhome RVs

11.5

 

(2)

14.6

 

 

 

21.3

 

(2)

 

25.6

 

 

 

40.9

 

(2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Twelve Months Ended

 

 

 

 

 

 

 

 

June 30,

 

 

 

 

 

 

 

 

 

2024

 

 

 

2023

 

 

 

 

Lippert Content Per Industry Unit Produced:

 

 

 

 

 

 

 

Travel trailer and fifth-wheel RV

 

 

 

 

$

5,237

 

 

$

5,459

 

 

 

 

Motorhome RV

 

 

 

 

$

3,766

 

 

$

3,760

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30,

 

December 31,

 

 

 

 

 

 

 

2024

 

 

 

2023

 

 

 

2023

 

 

Balance Sheet Data (debt availability in millions):

 

 

 

 

 

 

 

Remaining availability under the revolving credit facility (3)

 

$

373.1

 

 

$

270.0

 

 

$

245.3

 

 

Days sales in accounts receivable, based on last twelve months

 

 

30.5

 

 

 

28.4

 

 

 

30.1

 

 

Inventory turns, based on last twelve months

 

 

3.9

 

 

 

3.2

 

 

 

3.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2024

 

 

 

Estimated Full Year Data:

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

 

 

 

$40 - $60 million

 

 

 

Depreciation and amortization

 

 

 

 

$125 - $135 million

 

 

 

Stock-based compensation expense

 

 

 

 

$17 - $22 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 2024 retail sales data for RVs has not been published yet, therefore 2024 retail data for RVs includes an estimate for June 2024 retail units. Retail sales data have historically been revised upwards in future months as various states report.

(3)

 

Remaining availability under the revolving credit facility is subject to covenant restrictions.

 

LCI INDUSTRIES

SUPPLEMENTARY INFORMATION

RECONCILIATION OF NON-GAAP MEASURES

(unaudited)

 

The following table reconciles net income to EBITDA.

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2024

 

 

2023

 

 

2024

 

 

2023

(In thousands)

 

 

 

 

 

 

 

Net income

$

61,163

 

$

33,426

 

$

97,708

 

$

40,685

Interest expense, net

 

7,962

 

 

10,249

 

 

17,283

 

 

20,643

Provision for income taxes

 

21,479

 

 

11,499

 

 

33,224

 

 

13,889

Depreciation expense

 

17,936

 

 

18,867

 

 

36,521

 

 

37,117

Amortization expense

 

14,103

 

 

14,183

 

 

28,207

 

 

28,432

EBITDA

$

122,643

 

$

88,224

 

$

212,943

 

$

140,766

In addition to reporting financial results in accordance with U.S. GAAP, the Company has provided the non-GAAP performance measure of EBITDA to illustrate and improve comparability of its results from period to period. EBITDA is defined as net income before interest expense, net, provision for income taxes, depreciation expense, and amortization expense during the three and six month periods ended June 30, 2024 and 2023. The Company considers this non-GAAP measure 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 measure is not in accordance with, nor is it a substitute for, GAAP measures, and it may not be comparable to similarly titled measures used by other companies.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240806159985/en/

Lillian D. Etzkorn, CFO (574) 535-1125 LCII@lci1.com