This Management's Discussion and Analysis of Financial Condition and Results ofOperations should be read in conjunction with the Company's CondensedConsolidated Financial Statements and Notes thereto included in Item 1 of Part 1of this Report, as well as the Company's Annual Report on Form 10-K for the yearended December 31, 2019.LCI Industries ("LCII" and collectively with its subsidiaries, the "Company,""we," "us," or "our"), through its wholly-owned subsidiary, Lippert Components,Inc. and its subsidiaries (collectively, "Lippert Components" or "LCI"),supplies, domestically and internationally, a broad array of engineeredcomponents for the leading original equipment manufacturers ("OEMs") in therecreation and transportation product markets, consisting primarily ofrecreational vehicles ("RVs") and adjacent industries, including buses; trailersused to haul boats, livestock, equipment, and other cargo; trucks; boats;trains; manufactured homes; and modular housing. The Company also suppliesengineered components to the related aftermarkets of these industries, primarilyby selling to retail dealers, wholesale distributors, and service centers.The Company has two reportable segments, the OEM Segment and the AftermarketSegment. Intersegment sales are insignificant. At September 30, 2020, theCompany operated over 90 manufacturing and distribution facilities locatedthroughout the United States and in Canada, Ireland, Italy, the Netherlands, andthe United Kingdom. See Note 12 of the Notes to Condensed Consolidated FinancialStatements for further information regarding the Company's segments.The Company's OEM Segment manufactures or distributes a broad array ofengineered components for the leading OEMs of leisure and mobile transportationindustries. Approximately 61 percent of the Company's OEM Segment net sales forthe twelve months ended September 30, 2020 were of components for travel trailerand fifth-wheel RVs, including:? Steel chassis and related components ? Entry, luggage, patio, and ramp doors? Axles and suspension solutions ? Furniture and

mattresses

? Manual, electric, and hydraulic stabilizer and ? Other accessories

leveling systems

The Aftermarket Segment supplies many of these engineered components to therelated aftermarket channels of the recreation and transportation productmarkets, primarily to retail dealers, wholesale distributors, and servicecenters. The Aftermarket Segment also includes biminis, covers, buoys, fendersto the marine industry, towing products, truck accessories, and the sale ofreplacement glass and awnings to fulfill insurance claims.

IMPACT OF COVID-19

Health and Safety

The Company enacted rigorous health and safety protocols as it resumedproduction in early May. For example, the Company implemented health screeningsof team members for potential symptoms, conducts extensive and frequentdisinfecting of workspaces, implemented social distancing restrictions forproduction personnel, provided masks to team members who must be physicallypresent, and set up temporary COVID-19 testing sites for team members withsymptoms or potential exposure. These health and safety protocols remain ineffect currently.

Operations

Customers and Demand

Suppliers

Liquidity

FURRION UPDATE

North American Recreational Vehicle Industry

An RV is a vehicle designed as temporary living quarters for recreational,camping, travel or seasonal use. RVs may be motorized (motorhomes) or towable(travel trailers, fifth-wheel travel trailers, folding camping trailers andtruck campers).

Aftermarket Segment

RESULTS OF OPERATIONS

Consolidated Highlights

OEM Segment - Third Quarter

Net sales of the OEM Segment in the third quarter of 2020 increased $130.5million, compared to the same period of 2019. Net sales of components to OEMswere to the following markets for the three months ended September 30:(In thousands)

According to the RVIA, industry-wide wholesale unit shipments for the threemonths ended September 30 were:

Travel trailer and fifth-wheel RVs 110,100 80,600 37 %Motorhomes

Travel trailer and fifth-wheel RV $ 3,428$ 3,268 5 %Motorhome

According to the RVIA, industry-wide wholesale unit shipments for the ninemonths ended September 30, were:

Travel trailer and fifth-wheel RVs 264,900 266,400 (1) %Motorhomes

Aftermarket Segment - Third Quarter

Total Aftermarket Segment net sales $ 185,675$ 74,671 149 %

Aftermarket Segment - Year to Date

Change

Total Aftermarket Segment net sales $ 470,941$ 210,763 123 %

Income Taxes

Edgar Online, source Glimpses

Here is the original post:
LCI INDUSTRIES : MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (form 10-Q) - marketscreener.com

Related Posts
November 8, 2020 at 7:54 am by Mr HomeBuilder
Category: Manufactured Homes