LCI Industries Files 2023 Annual Report on Form 10-K

TL;DR

<b>LCI Industries has filed its 2023 annual report (10-K) detailing its financial performance and business operations for the fiscal year ending December 31, 2023.</b>

AI Summary

LCI INDUSTRIES (LCII) filed a Annual Report (10-K) with the SEC on February 23, 2024. LCI Industries filed its 2023 Form 10-K on February 23, 2024. The filing covers the fiscal year ending December 31, 2023. The company's principal business is in the Motor Vehicle Parts & Accessories sector (SIC 3714). LCI Industries was formerly known as Drew Industries Inc. The company is incorporated in Delaware with its principal business address in Elkhart, Indiana.

Why It Matters

For investors and stakeholders tracking LCI INDUSTRIES, this filing contains several important signals. This 10-K filing provides a comprehensive overview of LCI Industries' financial health, operational performance, and strategic positioning within the automotive parts sector for the fiscal year 2023. Investors and analysts can use this report to assess the company's financial stability, growth prospects, and potential risks, which is crucial for making informed investment decisions.

Risk Assessment

Risk Level: medium — LCI INDUSTRIES shows moderate risk based on this filing. The company operates in the Motor Vehicle Parts & Accessories sector, which can be subject to cyclical demand and economic downturns affecting the automotive industry.

Analyst Insight

Review LCI Industries' detailed financial statements and management discussion in the 10-K to understand revenue trends, profitability, and any significant changes in its operational or financial condition for 2023.

Key Numbers

• 2023-12-31 — Fiscal Year End (CONFORMED PERIOD OF REPORT)
• 2024-02-23 — Filing Date (FILED AS OF DATE)
• 3714 — SIC Code (STANDARD INDUSTRIAL CLASSIFICATION)

Key Players & Entities

• LCI INDUSTRIES (company) — FILER
• DREW INDUSTRIES INC (company) — FORMER COMPANY
• Elkhart, Indiana (company) — BUSINESS ADDRESS CITY, STATE

FAQ

Risk Factors

• Market and Economic Conditions [medium — market]: The company's operations are subject to fluctuations in the automotive industry, including demand for recreational vehicles and manufactured housing, which can be impacted by economic conditions.

Industry Context

LCI Industries operates within the Motor Vehicle Parts & Accessories sector, supplying components primarily to the recreational vehicle (RV) and manufactured housing industries.

Regulatory Implications

As a publicly traded company, LCI Industries is subject to SEC regulations and reporting requirements, including the annual filing of Form 10-K.

What Investors Should Do

1. Analyze the Management's Discussion and Analysis of Financial Condition and Results of Operations section for detailed insights into 2023 performance.
2. Examine the Risk Factors section for potential challenges and uncertainties facing the company.
3. Review the Consolidated Financial Statements and accompanying notes for a thorough understanding of the company's financial position.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K filing.
• 2024-02-23: Filing Date — Date the 10-K was officially submitted to the SEC.

Year-Over-Year Comparison

This is the initial 10-K filing for the fiscal year 2023, following previous filings for prior periods.

Key Financial Figures

• $3.8 billion — and reported consolidated net sales of $3.8 billion for the year ended December 31, 2023.
• $3.8 b — r the year ended December 31, 2023 were $3.8 billion, a decrease of 27 percent from th
• $5.2 billion — for the year ended December 31, 2022 of $5.2 billion. The decrease was primarily driven by a
• $73.6 million — 2022 and 2023 contributed approximately $73.6 million in 2023. Net income for 2023 was $64.2
• $64.2 m — llion in 2023. Net income for 2023 was $64.2 million, or $2.52 per diluted share, comp
• $2.52 — t income for 2023 was $64.2 million, or $2.52 per diluted share, compared to net inco
• $395.0 m — iluted share, compared to net income of $395.0 million, or $15.48 per diluted share, in
• $15.48 — red to net income of $395.0 million, or $15.48 per diluted share, in 2022. In Part II
• $25.8 million — ed two acquisitions for an aggregate of $25.8 million of cash purchase consideration. Net sal
• $15 million — n these acquisitions were approximately $15 million for the twelve months preceding the acq
• $1.3 billion — ent industries decreased six percent to $1.3 billion in 2023 from $1.4 billion in 2022 and w
• $1.4 billion — ix percent to $1.3 billion in 2023 from $1.4 billion in 2022 and was 44 percent and 31 perce
• $352.2 million — h American marine OEM net sales totaled $352.2 million in 2023, a decrease of $140.4 million c
• $140.4 million — d $352.2 million in 2023, a decrease of $140.4 million compared to 2022. Our market share fo
• $891.3 million — nt net sales decreased one percent from $891.3 million in 2022 to $881.1 million in 2023. Sale

Filing Documents

• lcii-20231231.htm (10-K) — 1754KB
• lcii-12312023xex41xdescrip.htm (EX-4.1) — 23KB
• lcii-12312023xex21xsubsidi.htm (EX-21) — 29KB
• lcii-12312023xex23xconsent.htm (EX-23) — 3KB
• lcii-12312023xex311.htm (EX-31.1) — 10KB
• lcii-12312023xex312.htm (EX-31.2) — 10KB
• lcii-12312023xex321.htm (EX-32.1) — 6KB
• lcii-12312023xex322.htm (EX-32.2) — 6KB
• lcii-12312023xex97xcompens.htm (EX-97) — 30KB
• lcii-20231231_g1.jpg (GRAPHIC) — 234KB
• 0000763744-24-000023.txt (&nbsp;) — 11010KB
• lcii-20231231.xsd (EX-101.SCH) — 59KB
• lcii-20231231_cal.xml (EX-101.CAL) — 105KB
• lcii-20231231_def.xml (EX-101.DEF) — 302KB
• lcii-20231231_lab.xml (EX-101.LAB) — 875KB
• lcii-20231231_pre.xml (EX-101.PRE) — 596KB
• lcii-20231231_htm.xml (XML) — 1821KB

- BUSINESS 3

ITEM 1 - BUSINESS 3

- RISK FACTORS 10

ITEM 1A - RISK FACTORS 10

- UNRESOLVED STAFF COMMENTS 21

ITEM 1B - UNRESOLVED STAFF COMMENTS 21

- CYBERSECURITY

ITEM 1C - CYBERSECURITY 21

- PROPERTIES 22

ITEM 2 - PROPERTIES 22

- LEGAL PROCEEDINGS 22

ITEM 3 - LEGAL PROCEEDINGS 22

- MINE SAFETY DISCLOSURES 22

ITEM 4 - MINE SAFETY DISCLOSURES 22 PART II –

- MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES 23

ITEM 5 - MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES 23

- [RESERVED] 23

ITEM 6 - [RESERVED] 23

- MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 23

ITEM 7 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 23

- QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 33

ITEM 7A - QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 33

- FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 34

ITEM 8 - FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 34

- CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 67

ITEM 9 - CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 67

- CONTROLS AND PROCEDURES 67

ITEM 9A - CONTROLS AND PROCEDURES 67

- OTHER INFORMATION 68

ITEM 9B - OTHER INFORMATION 68

- DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS 68

ITEM 9C - DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS 68 PART III –

- DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE 68

ITEM 10 - DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE 68

- EXECUTIVE COMPENSATION 68

ITEM 11 - EXECUTIVE COMPENSATION 68

- SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS 68

ITEM 12 - SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS 68

- CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE 68

ITEM 13 - CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE 68

- PRINCIPAL ACCOUNTANT FEES AND SERVICES 68

ITEM 14 - PRINCIPAL ACCOUNTANT FEES AND SERVICES 68 PART IV –

- EXHIBITS AND FINANCIAL STATEMENT SCHEDULES 69

ITEM 15 - EXHIBITS AND FINANCIAL STATEMENT SCHEDULES 69

- FORM 10-K SUMMARY 72

ITEM 16 - FORM 10-K SUMMARY 72

SIGNATURES

SIGNATURES 73 2 PART I

BUSINESS

Item 1. BUSINESS. Summary LCI Industries ("LCII" and collectively with its subsidiaries, the "Company," the "Registrant," "we," "us," or "our"), through its wholly-owned subsidiary, Lippert Components, Inc. and its subsidiaries (collectively, "Lippert Components," "LCI" or "Lippert"), supplies, domestically and internationally, a broad array of engineered components for the leading original equipment manufacturers ("OEMs") in the recreation, transportation products, and housing markets, consisting primarily of recreational vehicles ("RVs") and adjacent industries, including boats; buses; trailers used to haul boats, livestock, equipment, and other cargo; trucks; trains; manufactured homes; and modular housing. We also supply 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. Our 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. We have two reportable segments: the original equipment manufacturers segment (the "OEM Segment") and the aftermarket segment (the "Aftermarket Segment"). We are focused on profitable growth in our industries, both organic and through acquisitions. In order to support this growth, over the past several years we have expanded our geographic market and product lines, executed on our diversification strategy with aftermarkets and adjacent industries, and integrated ma