Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2023 | Jul. 31, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-13646 | |
Entity Registrant Name | LCI INDUSTRIES | |
Entity Central Index Key | 0000763744 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 13-3250533 | |
Entity Address, Address Line One | 3501 County Road 6 East | |
Entity Address, City or Town | Elkhart, | |
Entity Address, State or Province | IN | |
Entity Address, Postal Zip Code | 46514 | |
City Area Code | 574 | |
Local Phone Number | 535-1125 | |
Title of 12(b) Security | Common Stock, $.01 par value | |
Trading Symbol | LCII | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 25,324,433 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Statement [Abstract] | ||||
Net sales | $ 1,014,639 | $ 1,536,150 | $ 1,987,949 | $ 3,180,718 |
Cost of sales | 796,519 | 1,127,065 | 1,583,758 | 2,307,390 |
Gross profit | 218,120 | 409,085 | 404,191 | 873,328 |
Selling, general and administrative expenses | 162,946 | 190,296 | 328,974 | 384,838 |
Operating profit | 55,174 | 218,789 | 75,217 | 488,490 |
Interest expense, net | 10,249 | 6,191 | 20,643 | 12,443 |
Income before income taxes | 44,925 | 212,598 | 54,574 | 476,047 |
Provision for income taxes | 11,499 | 58,068 | 13,889 | 125,336 |
Net income | $ 33,426 | $ 154,530 | $ 40,685 | $ 350,711 |
Net income per common share: | ||||
Basic (in usd per share) | $ 1.32 | $ 6.07 | $ 1.61 | $ 13.82 |
Diluted (in usd per share) | $ 1.31 | $ 6.06 | $ 1.60 | $ 13.76 |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 25,329 | 25,438 | 25,273 | 25,377 |
Diluted (in shares) | 25,437 | 25,518 | 25,359 | 25,483 |
Condensed Consolidated Statem_2
Condensed Consolidated Statement Of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 33,426 | $ 154,530 | $ 40,685 | $ 350,711 |
Other comprehensive (loss) income: | ||||
Net foreign currency translation adjustment | 763 | (13,688) | 2,763 | (16,570) |
Actuarial gain on pension plans | 100 | 13,985 | 100 | 13,985 |
Total comprehensive income | $ 34,289 | $ 154,827 | $ 43,548 | $ 348,126 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 22,094 | $ 47,499 |
Accounts receivable, net of allowances of $7,790 and $5,904 at June 30, 2023 and December 31, 2022, respectively | 299,469 | 214,262 |
Inventories, net | 830,020 | 1,029,705 |
Prepaid expenses and other current assets | 83,662 | 99,310 |
Total current assets | 1,235,245 | 1,390,776 |
Fixed assets, net | 478,885 | 482,185 |
Goodwill | 584,312 | 567,063 |
Other intangible assets, net | 477,307 | 503,320 |
Operating lease right-of-use assets | 241,146 | 247,007 |
Other long-term assets | 59,502 | 56,561 |
Total assets | 3,076,397 | 3,246,912 |
Current liabilities | ||
Current maturities of long-term indebtedness | 27,712 | 23,086 |
Accounts payable, trade | 182,637 | 143,529 |
Current portion of operating lease obligations | 35,004 | 35,447 |
Accrued expenses and other current liabilities | 196,099 | 219,238 |
Total current liabilities | 441,452 | 421,300 |
Long-term indebtedness | 915,756 | 1,095,888 |
Operating lease obligations | 217,979 | 222,478 |
Deferred taxes | 26,900 | 30,580 |
Other long-term liabilities | 103,413 | 95,658 |
Total liabilities | 1,705,500 | 1,865,904 |
Stockholders’ equity | ||
Common stock, par value $.01 per share | 286 | 285 |
Paid-in capital | 235,507 | 234,956 |
Retained earnings | 1,207,753 | 1,221,279 |
Accumulated other comprehensive income | 9,567 | 6,704 |
Stockholders' equity before treasury stock | 1,453,113 | 1,463,224 |
Treasury stock, at cost | (82,216) | (82,216) |
Total stockholders' equity | 1,370,897 | 1,381,008 |
Total liabilities and stockholders' equity | $ 3,076,397 | $ 3,246,912 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowances | $ 7,790 | $ 5,904 |
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Cash flows from operating activities: | |||||||
Net income | $ 33,426 | $ 7,259 | $ 154,530 | $ 196,181 | $ 40,685 | $ 350,711 | |
Adjustments to reconcile net income to cash flows provided by operating activities: | |||||||
Depreciation and amortization | 65,549 | 63,719 | |||||
Stock-based compensation expense | 9,080 | 13,701 | |||||
Deferred taxes | 0 | (2,401) | |||||
Other non-cash items | 2,192 | 2,025 | |||||
Changes in assets and liabilities, net of acquisitions of businesses: | |||||||
Accounts receivable, net | (80,952) | (95,479) | |||||
Inventories, net | 209,346 | (51,811) | |||||
Prepaid expenses and other assets | 11,607 | 25,746 | |||||
Accounts payable, trade | 37,949 | 5,312 | |||||
Accrued expenses and other liabilities | (21,891) | 36,448 | |||||
Net cash flows provided by operating activities | 273,565 | 347,971 | |||||
Cash flows from investing activities: | |||||||
Capital expenditures | (34,082) | (70,837) | |||||
Acquisitions of businesses | (25,851) | (51,789) | |||||
Other investing activities | 4,344 | 2,204 | |||||
Net cash flows used in investing activities | (55,589) | (120,422) | |||||
Cash flows from financing activities: | |||||||
Vesting of stock-based awards, net of shares tendered for payment of taxes | (9,585) | (10,773) | |||||
Proceeds from revolving credit facility | 234,200 | 729,400 | |||||
Repayments under revolving credit facility | (402,726) | (836,500) | |||||
Repayments under shelf loan, term loan, and other borrowings | (10,703) | (60,902) | |||||
Payment of dividends | (53,154) | (49,572) | |||||
Payment of contingent consideration and holdbacks related to acquisitions | (517) | (6,039) | |||||
Other financing activities | (834) | (4) | |||||
Net cash flows used in financing activities | (243,319) | (234,390) | |||||
Effect of exchange rate changes on cash and cash equivalents | (62) | (1,067) | |||||
Net decrease in cash and cash equivalents | (25,405) | (7,908) | |||||
Cash and cash equivalents at beginning of period | $ 47,499 | $ 62,896 | 47,499 | 62,896 | $ 62,896 | ||
Cash and cash equivalents cash at end of period | $ 22,094 | $ 54,988 | 22,094 | 54,988 | $ 47,499 | ||
Supplemental disclosure of cash flow information: | |||||||
Cash paid during the period for interest | 20,804 | 10,558 | |||||
Cash paid during the period for income taxes, net of refunds | 5,724 | 110,871 | |||||
Purchase of property and equipment in accrued expenses | $ 1,704 | $ 3,157 |
Condensed Consolidated Statem_4
Condensed Consolidated Statement Of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock |
Beginning balance at Dec. 31, 2021 | $ 1,092,875 | $ 284 | $ 220,459 | $ 930,795 | $ (501) | $ (58,162) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 196,181 | 196,181 | ||||
Issuance of shares of common stock pursuant to stock-based awards, net of shares tendered for payment of taxes | (10,569) | 1 | (10,570) | |||
Stock-based compensation expense | 6,517 | 6,517 | ||||
Other comprehensive income (loss) | (2,882) | (2,882) | ||||
Cash dividends | (22,870) | (22,870) | ||||
Dividend equivalents on stock-based awards | 0 | 392 | (392) | |||
Ending balance at Mar. 31, 2022 | 1,259,252 | 285 | 216,798 | 1,103,714 | (3,383) | (58,162) |
Beginning balance at Dec. 31, 2021 | 1,092,875 | 284 | 220,459 | 930,795 | (501) | (58,162) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 350,711 | |||||
Ending balance at Jun. 30, 2022 | 1,394,357 | 285 | 224,231 | 1,231,089 | (3,086) | (58,162) |
Beginning balance at Mar. 31, 2022 | 1,259,252 | 285 | 216,798 | 1,103,714 | (3,383) | (58,162) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 154,530 | 154,530 | ||||
Issuance of shares of common stock pursuant to stock-based awards, net of shares tendered for payment of taxes | (204) | 0 | (204) | |||
Stock-based compensation expense | 7,184 | 7,184 | ||||
Other comprehensive income (loss) | 297 | 297 | ||||
Cash dividends | (26,702) | (26,702) | ||||
Dividend equivalents on stock-based awards | 0 | 453 | (453) | |||
Ending balance at Jun. 30, 2022 | 1,394,357 | 285 | 224,231 | 1,231,089 | (3,086) | (58,162) |
Beginning balance at Dec. 31, 2022 | 1,381,008 | 285 | 234,956 | 1,221,279 | 6,704 | (82,216) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 7,259 | 7,259 | ||||
Issuance of shares of common stock pursuant to stock-based awards, net of shares tendered for payment of taxes | (8,888) | 1 | (8,889) | |||
Stock-based compensation expense | 4,695 | 4,695 | ||||
Other comprehensive income (loss) | 2,000 | 2,000 | ||||
Cash dividends | (26,563) | (26,563) | ||||
Dividend equivalents on stock-based awards | 0 | 532 | (532) | |||
Ending balance at Mar. 31, 2023 | 1,359,511 | 286 | 231,294 | 1,201,443 | 8,704 | (82,216) |
Beginning balance at Dec. 31, 2022 | 1,381,008 | 285 | 234,956 | 1,221,279 | 6,704 | (82,216) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 40,685 | |||||
Ending balance at Jun. 30, 2023 | 1,370,897 | 286 | 235,507 | 1,207,753 | 9,567 | (82,216) |
Beginning balance at Mar. 31, 2023 | 1,359,511 | 286 | 231,294 | 1,201,443 | 8,704 | (82,216) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 33,426 | 33,426 | ||||
Issuance of shares of common stock pursuant to stock-based awards, net of shares tendered for payment of taxes | (697) | 0 | (697) | |||
Stock-based compensation expense | 4,385 | 4,385 | ||||
Other comprehensive income (loss) | 863 | 863 | ||||
Cash dividends | (26,591) | (26,591) | ||||
Dividend equivalents on stock-based awards | 0 | 525 | (525) | |||
Ending balance at Jun. 30, 2023 | $ 1,370,897 | $ 286 | $ 235,507 | $ 1,207,753 | $ 9,567 | $ (82,216) |
Condensed Consolidated Statem_5
Condensed Consolidated Statement Of Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||||
Issuance of common stock (in shares) | 26,445 | 119,091 | 18,245 | 138,208 |
Cash dividend (in usd per share) | $ 1.05 | $ 1.05 | $ 1.05 | $ 0.90 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis Of Presentation | BASIS OF PRESENTATION The Condensed Consolidated Financial Statements include the accounts of LCI Industries and its wholly-owned subsidiaries ("LCII" and collectively with its subsidiaries, the "Company," "we," "us," or "our"). LCII has no unconsolidated subsidiaries. LCII, 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. 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. At June 30, 2023, the Company operated over 120 manufacturing and distribution facilities located throughout North America and Europe. Most industries where the Company sells products or where its products are used historically have been seasonal and are generally at the highest levels when the weather is moderate. Accordingly, the Company's sales and profits have generally been the highest in the second quarter and lowest in the fourth quarter. However, current and future seasonal industry trends have been, and may in the future be, different than in prior years due to various factors, including fluctuations in dealer inventories and the timing of dealer orders, the impact of international, national, and regional economic conditions and consumer confidence on retail sales of RVs and other products for which the Company sells its components, the impact of severe weather conditions on the timing of industry-wide shipments from time to time, as well as the coronavirus ("COVID-19") pandemic and related impacts. Additionally, many of the optional upgrades and non-critical replacement parts for RVs are purchased outside the normal product selling season, thereby causing certain Aftermarket Segment sales to be counter-seasonal, but this has been, and may in the future be, different as a result of the COVID-19 pandemic and related impacts. The Company is not aware of any significant events which occurred subsequent to the balance sheet date but prior to the filing of this report that would have a material impact on the Condensed Consolidated Financial Statements. All significant intercompany balances and transactions have been eliminated. In the opinion of management, the information furnished in this Form 10-Q reflects all adjustments necessary for a fair statement of the financial position and results of operations for the interim periods presented. The Condensed Consolidated Financial Statements have been prepared in accordance with the instructions to Form 10-Q, and therefore do not include some information necessary to conform to annual reporting requirements. Results for interim periods should not be considered indicative of results for the full year. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires the Company to make estimates and judgments that affect the reported amounts of assets, liabilities, net sales and expenses, and related disclosure of contingent assets and liabilities. On an ongoing basis, the Company evaluates its estimates, including, but not limited to, those related to product returns, sales and purchase rebates, accounts receivable, inventories, goodwill and other intangible assets, net assets of acquired businesses, income taxes, warranty and product recall obligations, self-insurance obligations, operating lease right-of-use assets and obligations, asset retirement obligations, long-lived assets, pension and post-retirement benefits, stock-based compensation, segment allocations, contingent consideration, environmental liabilities, contingencies, and litigation. The Company bases its estimates on historical experience, other available information, and various other assumptions believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities not readily apparent from other resources. Actual results and events could differ significantly from management estimates. Risks and Uncertainties Negative conditions in the general economy in the United States or abroad, including conditions resulting from financial and credit market fluctuations, increased inflation and interest rates, changes in economic policy, trade uncertainty, including changes in tariffs, sanctions, international treaties, and other trade restrictions, including heightened tensions between China and Taiwan, the occurrence of a natural disaster or global public health crisis, such as the COVID-19 pandemic, or armed conflicts, such as the conflict between Russia and Ukraine, have negatively impacted, and could continue to negatively impact, the Company’s business, liquidity, financial condition and results of operations. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Condensed Consolidated Financial Statements presented herein have been prepared by the Company in accordance with the accounting policies described in its December 31, 2022 Annual Report on Form 10-K and should be read in conjunction with the Notes to Consolidated Financial Statements which appear in that report. There are no recent accounting pronouncements that have been issued and not yet adopted that are expected to have a material impact on our Condensed Consolidated Financial Statements. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE The following reconciliation details the denominator used in the computation of basic and diluted earnings per share for the periods indicated: Three Months Ended Six Months Ended (In thousands) 2023 2022 2023 2022 Weighted average shares outstanding for basic earnings per share 25,329 25,438 25,273 25,377 Common stock equivalents pertaining to stock-based awards 108 80 86 106 Weighted average shares outstanding for diluted earnings per share 25,437 25,518 25,359 25,483 Equity instruments excluded from diluted net earnings per share calculation as the effect would have been antidilutive 165 112 162 111 For the Company's 1.125 percent convertible senior notes due 2026 (the "Convertible Notes") issued in May 2021, the dilutive effect is calculated using the if-converted method. The Company is required, pursuant to the indenture governing the Convertible Notes, dated May 13, 2021, by and between the Company and U.S. Bank National Association, as trustee (the "Indenture"), to settle the principal amount of the Convertible Notes in cash and may elect to settle the remaining conversion obligation (i.e., the stock price in excess of the conversion price) in cash, shares of the Company's common stock, or a combination thereof. Under the if-converted method, the Company includes the number of shares required to satisfy the conversion obligation, assuming all the Convertible Notes are converted. Because the average closing price of the Company's common stock for each of the three and six months ended June 30, 2023, which is used as the basis for determining the dilutive effect on earnings per share, was less than the conversion price of $165.65, all associated shares were antidilutive. In conjunction with the issuance of the Convertible Notes, the Company, in privately negotiated transactions with certain commercial banks (the "Counterparties"), sold warrants to purchase 2.8 million shares of the Company's common stock (the "Warrants"). The Warrants have a strike price of $259.84 per share, subject to customary anti-dilution adjustments. For calculating the dilutive effect of the Warrants, the Company uses the treasury stock method. With this method, the Company assumes exercise of the Warrants at the beginning of the period, or at time of issuance if later, and issuance of shares of common stock upon exercise. Proceeds from the exercise of the Warrants are assumed to be used to repurchase shares of the Company's common stock at the average market price during the period. The incremental shares, representing the number of shares assumed to be received upon the exercise of the Warrants less the number of shares repurchased, are included in diluted shares. For each of the three and six months ended June 30, 2023, the average share price was below the Warrant strike price of $259.84 per share, and therefore 2.8 million shares were considered antidilutive. |
Acquisitions, Goodwill And Othe
Acquisitions, Goodwill And Other Intangible Assets | 6 Months Ended |
Jun. 30, 2023 | |
Acquisitions, Goodwill And Other Intangible Assets [Abstract] | |
Acquisitions, Goodwill And Other Intangible Assets | ACQUISITIONS, GOODWILL AND OTHER INTANGIBLE ASSETS Acquisitions Completed During the Six Months Ended June 30, 2023 During the six months ended June 30, 2023, the Company completed two acquisitions for an aggregate $25.8 million of cash purchase consideration, plus holdback payments of $0.5 million to be paid over two years. The preliminary purchase price allocations resulted in $18.3 million of goodwill (tax deductible). As these acquisitions are not considered to have a material impact on the Company's financial statements, pro forma results of operations and other disclosures are not presented. Acquisitions with Measurement Period Adjustments During the Six Months Ended June 30, 2023 Way In November 2022, the Company acquired substantially all of the business assets of Way Interglobal Network LLC ("Way"), a distributor of innovative appliances and electronics to OEMs in the RV industry. The purchase price was $54.8 million, which includes a holdback payment of $2.0 million due on the first anniversary of the acquisition in November 2023, and remains subject to adjustment as a result of net working capital true-up procedures. The results of the acquired business have been included in the Condensed Consolidated Statements of Income since the acquisition date, primarily in the Company's OEM Segment. As the operations of this acquisition are not considered to have a material impact on the Company's financial statements, pro forma results of operations and other disclosures are not presented. During the six months ended June 30, 2023, the Company adjusted the preliminary purchase price allocation reported in the Company's December 31, 2022 Annual Report on Form 10-K to account for updates to net working capital balances. These measurement period adjustments would not have resulted in a material impact on the prior period results if the adjustments had been recognized as of the acquisition date. The purchase price allocation is subject to further adjustment for net working capital and the fair value of intangible assets as additional information is obtained within the measurement period (not to exceed 12 months from the acquisition date). Goodwill Changes in the carrying amount of goodwill by reportable segment were as follows: (In thousands) OEM Segment Aftermarket Segment Total Net balance – December 31, 2022 $ 399,736 $ 167,327 $ 567,063 Acquisitions – 2023 18,314 — 18,314 Measurement period adjustments (2,905) (143) (3,048) Foreign currency translation 1,721 262 1,983 Net balance – June 30, 2023 $ 416,866 $ 167,446 $ 584,312 Goodwill represents the excess of the total consideration given in an acquisition of a business over the fair value of the net tangible and identifiable intangible assets acquired. Goodwill is not amortized, but instead is tested at the reporting unit level for impairment annually in November, or more frequently if certain circumstances indicate a possible impairment may exist. Other Intangible Assets Other intangible assets consisted of the following at June 30, 2023: (In thousands) Gross Accumulated Net Estimated Useful Customer relationships $ 517,588 $ 180,257 $ 337,331 6 to 20 Patents 122,373 67,697 54,676 3 to 20 Trade names (finite life) 98,650 24,050 74,600 3 to 20 Trade names (indefinite life) 7,600 — 7,600 Indefinite Non-compete agreements 11,484 8,728 2,756 3 to 6 Other 609 265 344 2 to 12 Other intangible assets $ 758,304 $ 280,997 $ 477,307 Other intangible assets consisted of the following at December 31, 2022: (In thousands) Gross Accumulated Net Estimated Useful Customer relationships $ 520,273 $ 163,562 $ 356,711 6 to 20 Patents 121,167 62,841 58,326 3 to 20 Trade names (finite life) 97,810 21,380 76,430 3 to 20 Trade names (indefinite life) 7,600 — 7,600 Indefinite Non-compete agreements 11,584 7,698 3,886 3 to 6 Other 609 242 367 2 to 12 Other intangible assets $ 759,043 $ 255,723 $ 503,320 |
Acquisitions, Goodwill And Other Intangible Assets | ACQUISITIONS, GOODWILL AND OTHER INTANGIBLE ASSETS Acquisitions Completed During the Six Months Ended June 30, 2023 During the six months ended June 30, 2023, the Company completed two acquisitions for an aggregate $25.8 million of cash purchase consideration, plus holdback payments of $0.5 million to be paid over two years. The preliminary purchase price allocations resulted in $18.3 million of goodwill (tax deductible). As these acquisitions are not considered to have a material impact on the Company's financial statements, pro forma results of operations and other disclosures are not presented. Acquisitions with Measurement Period Adjustments During the Six Months Ended June 30, 2023 Way In November 2022, the Company acquired substantially all of the business assets of Way Interglobal Network LLC ("Way"), a distributor of innovative appliances and electronics to OEMs in the RV industry. The purchase price was $54.8 million, which includes a holdback payment of $2.0 million due on the first anniversary of the acquisition in November 2023, and remains subject to adjustment as a result of net working capital true-up procedures. The results of the acquired business have been included in the Condensed Consolidated Statements of Income since the acquisition date, primarily in the Company's OEM Segment. As the operations of this acquisition are not considered to have a material impact on the Company's financial statements, pro forma results of operations and other disclosures are not presented. During the six months ended June 30, 2023, the Company adjusted the preliminary purchase price allocation reported in the Company's December 31, 2022 Annual Report on Form 10-K to account for updates to net working capital balances. These measurement period adjustments would not have resulted in a material impact on the prior period results if the adjustments had been recognized as of the acquisition date. The purchase price allocation is subject to further adjustment for net working capital and the fair value of intangible assets as additional information is obtained within the measurement period (not to exceed 12 months from the acquisition date). Goodwill Changes in the carrying amount of goodwill by reportable segment were as follows: (In thousands) OEM Segment Aftermarket Segment Total Net balance – December 31, 2022 $ 399,736 $ 167,327 $ 567,063 Acquisitions – 2023 18,314 — 18,314 Measurement period adjustments (2,905) (143) (3,048) Foreign currency translation 1,721 262 1,983 Net balance – June 30, 2023 $ 416,866 $ 167,446 $ 584,312 Goodwill represents the excess of the total consideration given in an acquisition of a business over the fair value of the net tangible and identifiable intangible assets acquired. Goodwill is not amortized, but instead is tested at the reporting unit level for impairment annually in November, or more frequently if certain circumstances indicate a possible impairment may exist. Other Intangible Assets Other intangible assets consisted of the following at June 30, 2023: (In thousands) Gross Accumulated Net Estimated Useful Customer relationships $ 517,588 $ 180,257 $ 337,331 6 to 20 Patents 122,373 67,697 54,676 3 to 20 Trade names (finite life) 98,650 24,050 74,600 3 to 20 Trade names (indefinite life) 7,600 — 7,600 Indefinite Non-compete agreements 11,484 8,728 2,756 3 to 6 Other 609 265 344 2 to 12 Other intangible assets $ 758,304 $ 280,997 $ 477,307 Other intangible assets consisted of the following at December 31, 2022: (In thousands) Gross Accumulated Net Estimated Useful Customer relationships $ 520,273 $ 163,562 $ 356,711 6 to 20 Patents 121,167 62,841 58,326 3 to 20 Trade names (finite life) 97,810 21,380 76,430 3 to 20 Trade names (indefinite life) 7,600 — 7,600 Indefinite Non-compete agreements 11,584 7,698 3,886 3 to 6 Other 609 242 367 2 to 12 Other intangible assets $ 759,043 $ 255,723 $ 503,320 |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | INVENTORIES Inventories are stated at the lower of cost (first-in, first-out (FIFO) method) or net realizable value. Cost includes material, labor, and overhead. Inventories consisted of the following at: June 30, December 31, (In thousands) 2023 2022 Raw materials $ 503,777 $ 600,601 Work in process 45,379 44,850 Finished goods 280,864 384,254 Inventories, net $ 830,020 $ 1,029,705 At June 30, 2023 and December 31, 2022, the Company had recorded inventory obsolescence reserves of $61.5 million and $55.9 million, respectively. |
Fixed Assets
Fixed Assets | 6 Months Ended |
Jun. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Fixed Assets | FIXED ASSETS Fixed assets consisted of the following at: June 30, December 31, (In thousands) 2023 2022 Fixed assets, at cost $ 976,047 $ 945,255 Less accumulated depreciation and amortization 497,162 463,070 Fixed assets, net $ 478,885 $ 482,185 |
Accrued Expenses And Other Curr
Accrued Expenses And Other Current Liabilities | 6 Months Ended |
Jun. 30, 2023 | |
Payables and Accruals [Abstract] | |
Accrued Expenses And Other Current Liabilities | ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities consisted of the following at: June 30, December 31, (In thousands) 2023 2022 Employee compensation and benefits $ 54,837 $ 77,804 Current portion of accrued warranty 41,988 35,148 Deferred acquisition payments and contingent consideration* 33,692 34,013 Other 65,582 72,273 Accrued expenses and other current liabilities $ 196,099 $ 219,238 * Includes current portion of contingent consideration (Note 10) and deferred acquisition payments (Note 4). Estimated costs related to product warranties are accrued at the time products are sold. In estimating its future warranty obligations, the Company considers various factors, including the Company's historical warranty costs, warranty claim lag, and sales. The following table provides a reconciliation of the activity related to the Company's accrued warranty, including both the current and long-term portions, for the six months ended June 30: (In thousands) 2023 2022 Balance at beginning of period $ 54,528 $ 52,114 Provision for warranty expense 40,128 28,164 Warranty costs paid (31,968) (18,646) Balance at end of period 62,688 61,632 Less long-term portion (20,700) (21,460) Current portion of accrued warranty at end of period $ 41,988 $ 40,172 |
Long-Term Indebtedness
Long-Term Indebtedness | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Long-Term Indebtedness | LONG-TERM INDEBTEDNESS Long-term debt consisted of the following: June 30, December 31, (In thousands) 2023 2022 Convertible Notes $ 460,000 $ 460,000 Term Loan 365,000 375,000 Revolving Credit Loan 122,960 289,067 Other 3,440 3,959 Unamortized deferred financing fees (7,932) (9,052) 943,468 1,118,974 Less current portion (27,712) (23,086) Long-term indebtedness $ 915,756 $ 1,095,888 Credit Agreement The Company and certain of its subsidiaries are party to a credit agreement dated December 14, 2018 with JPMorgan Chase, N.A., as a lender and administrative agent, and other bank lenders (as amended, the "Credit Agreement"). The Credit Agreement provides for a $600.0 million revolving credit facility (of which $50.0 million is available for the issuance of letters of credit (the "LC Facility") and up to $400.0 million is available in approved foreign currencies). The Credit Agreement also provides for term loans (the "Term Loan") to the Company in an aggregate principal amount of $400.0 million. The maturity date of the Credit Agreement is December 7, 2026. The Term Loan is required to be repaid in an amount equal to 1.25 percent of the original principal amount of the Term Loan for the first eight quarterly periods commencing with the quarter ended December 31, 2021, 1.875 percent of the original principal amount of the Term Loan for the next eight quarterly periods, and then 2.50 percent of the original principal amount of the Term Loan of each additional payment until the maturity date. The Credit Agreement also permits the Company to request an increase to the revolving and/or term loan facility by up to an additional $400.0 million in the aggregate upon the approval of the lenders providing any such increase and the satisfaction of certain other conditions. Borrowings under the Credit Agreement in U.S. dollars are designated from time to time by the Company as (i) base rate loans which bear interest at a base rate plus additional interest ranging from 0.0 percent to 0.875 percent (0.625 percent was applicable at June 30, 2023) depending on the Company’s total net leverage ratio or (ii) term benchmark loans which bear interest at term Secured Overnight Financing Rate ("SOFR") plus a credit spread adjustment of 0.1 percent for an interest period selected by the Company plus additional interest ranging from 0.875 percent to 1.875 percent (1.625 percent was applicable at June 30, 2023) depending on the Company’s total net leverage ratio. Foreign currency borrowings have the same additional interest margins applicable to term benchmark loans based on the Company's total net leverage ratio. At June 30, 2023, the Company had $4.6 million in issued, but undrawn, standby letters of credit under the LC Facility. Availability under the Company’s revolving credit facility, giving effect to certain limitations related to compliance with the maximum net leverage ratio covenant, was $270.0 million at June 30, 2023. A commitment fee ranging from 0.150 percent to 0.275 percent (0.225 percent was applicable at June 30, 2023) depending on the Company's total net leverage ratio accrues on the actual daily amount that the revolving commitment exceeds the revolving credit exposure. Shelf-Loan Facility The Company and certain of its subsidiaries had a $150.0 million shelf-loan facility (the "Shelf-Loan Facility") with PGIM, Inc. (formerly Prudential Investment Management, Inc.) and its affiliates ("Prudential"). On March 29, 2019, the Company issued $50.0 million of Series B Senior Notes (the "Series B Notes") to certain affiliates of Prudential for a term of three years, at a fixed interest rate of 3.80 percent per annum, payable quarterly in arrears. The Series B Notes were paid in full in March 2022, and the Shelf-Loan Facility expired on November 11, 2022. Convertible Notes On May 13, 2021, the Company issued $460.0 million in aggregate principal amount of 1.125 percent Convertible Notes due 2026 in a private placement to certain qualified institutional buyers, resulting in net proceeds to the Company of approximately $447.8 million after deducting the initial purchasers' discounts and offering expenses payable by the Company. The Convertible Notes bear interest at a coupon rate of 1.125 percent per annum, payable semiannually in arrears on May 15 and November 15 of each year, beginning on November 15, 2021. The Convertible Notes will mature on May 15, 2026, unless earlier converted, redeemed, or repurchased, in accordance with their terms. As of June 30, 2023, the conversion rate of the Convertible Notes was 6.1469 shares of the Company's common stock per $1,000 principal amount of the Convertible Notes. The conversion rate of the Convertible Notes is subject to further adjustment upon the occurrence of certain specified events. In addition, upon the occurrence of a make-whole fundamental change (as defined in the Indenture) or upon a notice of redemption, the Company will, in certain circumstances, increase the conversion rate for a holder that elects to convert its Convertible Notes in connection with such make-whole fundamental change or notice of redemption, as the case may be. Prior to the close of business on the business day immediately preceding January 15, 2026, the Convertible Notes are convertible at the option of the holders only under certain circumstances as set forth in the Indenture. On or after January 15, 2026, until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert all or any portion of their Convertible Notes at any time. Upon conversion, the Company will pay cash up to the aggregate principal amount of the Convertible Notes to be converted and pay or deliver, as the case may be, cash, shares of the Company's common stock, or a combination of cash and shares of the Company's common stock, at the Company's election, in respect of the remainder, if any, of the Company's conversion obligation in excess of the aggregate principal amount of the Convertible Notes being converted. The Company may not redeem the Convertible Notes prior to May 20, 2024. On or after May 20, 2024, the Company may redeem for cash all or any portion of the Convertible Notes, at the Company's option, if the last reported sale price of the Company's common stock has been at least 130 percent of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which the Company provides notice of redemption at a redemption price equal to 100 percent of the principal amount of the Convertible Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. Upon the occurrence of a fundamental change (as defined in the Indenture), subject to certain conditions, holders of the Convertible Notes may require the Company to repurchase for cash all or any portion of their Convertible Notes in principal amounts of $1,000 or an integral multiple thereof at a repurchase price equal to 100 percent of the principal amount of the Convertible Notes to be repurchased, plus accrued and unpaid interest on such Convertible Notes to, but not including, the fundamental change repurchase date (as defined in the Indenture). The Convertible Notes are senior unsecured obligations and rank senior in right of payment to all of the Company's indebtedness that is expressly subordinated in right of payment to the Convertible Notes, equal in right of payment with all the Company's liabilities that are not so subordinated, effectively junior to any of the Company's secured indebtedness to the extent of the value of the assets securing such indebtedness, and structurally junior to all indebtedness and other liabilities (including trade payables) of our subsidiaries. The Indenture contains customary terms and covenants, including that upon certain events of default occurring and continuing, either the named trustee or the holders of at least 25 percent of the aggregate principal amount of the outstanding Convertible Notes may declare 100 percent of the principal of, and accrued and unpaid interest, if any, on all the outstanding Convertible Notes to be due and payable. The Convertible Notes are not registered securities nor listed on any securities exchange but may be actively traded by qualified institutional buyers. The fair value of the Convertible Notes of $443.9 million at June 30, 2023 was estimated using Level 1 inputs, as it is based on quoted prices for these instruments in active markets. General At June 30, 2023, the fair value of the Company's long-term debt under the Credit Agreement approximates the carrying value, as estimated using quoted market prices and discounted future cash flows based on similar borrowing arrangements. Pursuant to the Credit Agreement, the Company shall not permit its net leverage ratio to exceed certain limits, shall maintain a minimum debt service coverage ratio, and must meet certain other financial requirements. On May 23, 2023, the Company entered into an amendment to the Credit Agreement that, among other things, provided for adjustments to certain of the financial covenants by increasing the maximum total net leverage ratio and decreasing the minimum debt service coverage ratio, in each case for the two fiscal quarters ending June 30, 2023 and September 30, 2023. At June 30, 2023, the Company was in compliance with all financial covenants. The Credit Agreement includes a maximum net leverage ratio covenant which limits the amount of consolidated outstanding indebtedness that the Company may incur on a trailing twelve-month EBITDA. This limitation reduced the Company's remaining availability under its revolving credit facility at June 30, 2023. The Company believes the availability of $270.0 million under the revolving credit facility under the Credit Agreement, along with its cash flows from operations, are adequate to finance the Company's anticipated cash requirements for the next twelve months. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Leases | LEASES The Company leases certain manufacturing and warehouse facilities, administrative office space, semi-tractors, trailers, forklifts, and other equipment through operating leases with unrelated third parties. The components of lease expense were as follows: Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2023 2022 2023 2022 Operating lease expense $ 15,670 $ 13,236 $ 30,914 $ 26,148 Short-term lease expense 1,307 1,934 2,787 3,774 Variable lease expense 1,200 936 2,200 1,649 Total lease expense $ 18,177 $ 16,106 $ 35,901 $ 31,571 |
Commitments And Contingencies
Commitments And Contingencies | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | COMMITMENTS AND CONTINGENCIES Holdback Payments and Contingent Consideration From time to time, the Company finances a portion of its business combinations with deferred acquisition payments ("holdback payments") and/or contingent earnout provisions. Holdback payments are accrued at their discounted present value. As required, the liability for contingent consideration is measured at fair value quarterly, considering actual sales of the acquired products, updated sales projections, and the updated market participant weighted average cost of capital. Depending upon the weighted average costs of capital and future sales of the products which are subject to contingent consideration, the Company could record adjustments in future periods. See Note 4 - Acquisitions, Goodwill and Other Intangible Assets for information on certain holdback payments. Contingent consideration balances were not material at June 30, 2023. Product Recalls From time to time, the Company cooperates with and assists its customers on their product recalls and inquiries, and occasionally receives inquiries directly from the National Highway Traffic Safety Administration regarding reported incidents involving the Company’s products. As a result, the Company has incurred expenses associated with product recalls from time to time and may incur expenditures for future investigations or product recalls. Environmental The Company's operations are subject to certain Federal, state, and local regulatory requirements relating to the use, storage, discharge, and disposal of hazardous materials used during the manufacturing processes. Although the Company believes its operations have been consistent with prevailing industry standards and are in substantial compliance with applicable environmental laws and regulations, one or more of the Company’s current or former operating sites, or adjacent sites owned by third-parties, have been affected, and may in the future be affected, by releases of hazardous materials. As a result, the Company may incur expenditures for future investigation and remediation of these sites, including in conjunction with voluntary remediation programs or third-party claims. Litigation In the normal course of business, the Company is subject to proceedings, lawsuits, regulatory agency inquiries, and other claims. All such matters are subject to uncertainties and outcomes that are not predictable with assurance. While these matters could materially affect operating results when resolved in future periods, management believes that, after final disposition, including anticipated insurance recoveries in certain cases, any monetary liability or financial impact to the Company beyond that provided in the Condensed Consolidated Balance Sheet as of June 30, 2023, would not be material to the Company's financial position or results of operations. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2023 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | STOCKHOLDERS' EQUITY The following table summarizes information about shares of the Company's common stock at: June 30, December 31, (In thousands) 2023 2022 Common stock authorized 75,000 75,000 Common stock issued 28,665 28,519 Treasury stock 3,341 3,341 Common stock outstanding 25,324 25,178 The table below summarizes the regular quarterly dividends declared and paid during the periods ended June 30, 2023 and December 31, 2022: (In thousands, except per share data) Per Share Record Date Payment Date Total Paid First Quarter 2022 $ 0.90 03/11/22 03/25/22 $ 22,870 Second Quarter 2022 1.05 06/03/22 06/17/22 26,702 Third Quarter 2022 1.05 09/02/22 09/16/22 26,701 Fourth Quarter 2022 1.05 12/02/22 12/16/22 26,453 Total 2022 $ 4.05 $ 102,726 First Quarter 2023 $ 1.05 03/10/23 03/24/23 $ 26,563 Second Quarter 2023 1.05 06/02/23 06/16/23 26,591 Total 2023 $ 2.10 $ 53,154 Deferred and Restricted Stock Units The LCI Industries 2018 Omnibus Incentive Plan (the "2018 Plan") provides for the grant or issuance of stock units, including those that have deferral periods, such as deferred stock units ("DSUs"), and those with time-based vesting provisions, such as restricted stock units ("RSUs"), to directors, employees, and other eligible persons. Recipients of DSUs and RSUs are entitled to receive shares at the end of a specified vesting or deferral period. Holders of DSUs and RSUs receive dividend equivalents based on dividends granted to holders of the common stock, which dividend equivalents are payable in additional DSUs and RSUs, and are subject to the same vesting criteria as the original grant. DSUs vest (i) ratably over the service period, (ii) at a specified future date, or (iii) for certain officers, based on achievement of specified performance conditions. RSUs vest (i) ratably over the service period or (ii) at a specified future date. In addition, DSUs are issued in lieu of certain cash compensation. Transactions in DSUs and RSUs under the 2018 Plan are summarized as follows: Number of Shares Weighted Average Price Outstanding at December 31, 2022 277,774 $ 120.92 Issued 1,630 117.45 Granted 159,640 114.22 Dividend equivalents 5,695 112.11 Forfeited (13,752) 121.41 Vested (129,583) 112.24 Outstanding at June 30, 2023 301,404 $ 118.55 Performance Stock Units The 2018 Plan provides for performance stock units ("PSUs") that vest at a specific future date based on achievement of specified performance conditions. Transactions in PSUs under the 2018 Plan are summarized as follows: Number of Shares Weighted Average Price Outstanding at December 31, 2022 162,381 $ 120.12 Granted 140,953 108.42 Dividend equivalents 3,727 112.19 Forfeited (3,245) 96.55 Vested (100,046) 101.11 Outstanding at June 30, 2023 203,770 $ 122.57 Stock Repurchase Program On May 19, 2022, the Company's Board of Directors authorized a stock repurchase program granting the Company authority to repurchase up to $200.0 million of the Company's common stock over a three-year period, ending on May 19, 2025. The timing of stock repurchases and the number of shares will depend upon the market conditions and other factors. Share repurchases, if any, will be made in the open market and in privately negotiated transactions in accordance with applicable securities laws. The stock repurchase program may be modified, suspended, or terminated at any time by the Board of Directors. In 2022, the Company purchased 253,490 shares at a weighted average price of $94.89 per share, totaling $24.1 million. No purchases were made during the six months ended June 30, 2023. |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment Reporting | SEGMENT REPORTING The Company has two reportable segments, the OEM Segment and the Aftermarket Segment. Intersegment sales are insignificant. The OEM Segment, which accounted for 76 percent and 84 percent of consolidated net sales for the six months ended June 30, 2023 and 2022, respectively, manufactures and distributes a broad array of engineered components for the leading OEMs in the recreation, transportation products, and housing markets, consisting primarily of RVs and adjacent industries, including boats; buses; trailers used to haul boats, livestock, equipment, and other cargo; trucks; trains; manufactured homes; and modular housing. Approximately 44 percent of the Company's OEM Segment net sales for the six months ended June 30, 2023 were of components for travel trailer and fifth-wheel RVs. The Aftermarket Segment, which accounted for 24 percent and 16 percent of consolidated net sales for the six months ended June 30, 2023 and 2022, respectively, supplies engineered components to the related aftermarket channels of the recreation, transportation products, and housing markets, primarily to retail dealers, wholesale distributors, and service centers, as well as direct to retail customers via the Internet. The Aftermarket Segment also includes biminis, covers, buoys, fenders to the marine industry, towing products, truck accessories, appliances, air conditioners, televisions, sound systems, tankless water heaters, and the sale of replacement glass and awnings to fulfill insurance claims. Decisions concerning the allocation of the Company's resources are made by the Company's chief operating decision maker ("CODM"), with oversight by the Board of Directors. The CODM evaluates the performance of each segment based upon segment operating profit or loss, generally defined as income or loss before interest and income taxes. Decisions concerning the allocation of resources are also based on each segment's utilization of assets. Management of debt is a corporate function. The accounting policies of the OEM and Aftermarket Segments are the same as those described in Note 2 of the Notes to Consolidated Financial Statements in the Company's Annual Report on Form 10-K for the year ended December 31, 2022. The following tables present the Company's revenues disaggregated by segment and geography based on the billing address of the Company's customers: Three Months Ended June 30, 2023 Three Months Ended June 30, 2022 (In thousands) U.S. (a) Int’l (b) Total U.S. (a) Int’l (b) Total OEM Segment: RV OEMs: Travel trailers and fifth-wheels $ 326,824 $ 11,915 $ 338,739 $ 800,315 $ 14,194 $ 814,509 Motorhomes 40,689 30,496 71,185 64,008 27,472 91,480 Adjacent Industries OEMs 298,355 50,729 349,084 323,715 46,574 370,289 Total OEM Segment net sales 665,868 93,140 759,008 1,188,038 88,240 1,276,278 Aftermarket Segment: Total Aftermarket Segment net sales 234,901 20,730 255,631 240,246 19,626 259,872 Total net sales $ 900,769 $ 113,870 $ 1,014,639 $ 1,428,284 $ 107,866 $ 1,536,150 Six Months Ended June 30, 2023 Six Months Ended June 30, 2022 (In thousands) U.S. (a) Int’l (b) Total U.S. (a) Int’l (b) Total OEM Segment: RV OEMs: Travel trailers and fifth-wheels $ 641,806 $ 27,486 $ 669,292 $ 1,737,950 $ 29,785 $ 1,767,735 Motorhomes 84,693 56,043 140,736 124,154 54,580 178,734 Adjacent Industries OEMs 607,820 99,332 707,152 635,363 91,028 726,391 Total OEM Segment net sales 1,334,319 182,861 1,517,180 2,497,467 175,393 2,672,860 Aftermarket Segment: Total Aftermarket Segment net sales 435,388 35,381 470,769 470,413 37,445 507,858 Total net sales $ 1,769,707 $ 218,242 $ 1,987,949 $ 2,967,880 $ 212,838 $ 3,180,718 (a) Net sales to customers in the United States of America (b) Net sales to customers in countries domiciled outside of the United States of America The following table presents the Company's operating profit by segment: Three Months Ended Six Months Ended (In thousands) 2023 2022 2023 2022 Operating profit: OEM Segment $ 18,642 $ 190,577 $ 17,921 $ 435,951 Aftermarket Segment 36,532 28,212 57,296 52,539 Total operating profit $ 55,174 $ 218,789 $ 75,217 $ 488,490 The following table presents the Company's revenue disaggregated by product: Three Months Ended Six Months Ended (In thousands) 2023 2022 2023 2022 OEM Segment: Chassis, chassis parts, and slide-out mechanisms $ 202,735 $ 486,591 $ 400,791 $ 1,046,311 Windows and doors 220,094 301,985 438,705 632,343 Furniture and mattresses 125,346 229,520 265,909 471,746 Axles and suspension solutions 88,635 93,378 164,384 190,423 Other 122,198 164,804 247,391 332,037 Total OEM Segment net sales 759,008 1,276,278 1,517,180 2,672,860 Total Aftermarket Segment net sales 255,631 259,872 470,769 507,858 Total net sales $ 1,014,639 $ 1,536,150 $ 1,987,949 $ 3,180,718 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Pay vs Performance Disclosure | ||||||
Net Income (Loss) Attributable to Parent | $ 33,426 | $ 7,259 | $ 154,530 | $ 196,181 | $ 40,685 | $ 350,711 |
Insider Trading Arrangements
Insider Trading Arrangements | 6 Months Ended |
Jun. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires the Company to make estimates and judgments that affect the reported amounts of assets, liabilities, net sales and expenses, and related disclosure of contingent assets and liabilities. On an ongoing basis, the Company evaluates its estimates, including, but not limited to, those related to product returns, sales and purchase rebates, accounts receivable, inventories, goodwill and other intangible assets, net assets of acquired businesses, income taxes, warranty and product recall obligations, self-insurance obligations, operating lease right-of-use assets and obligations, asset retirement obligations, long-lived assets, pension and post-retirement benefits, stock-based compensation, segment allocations, contingent consideration, environmental liabilities, contingencies, and litigation. The Company bases its estimates on historical experience, other available information, and various other assumptions believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities not readily apparent from other resources. Actual results and events could differ significantly from management estimates. |
Recently adopted accounting pronouncement | There are no recent accounting pronouncements that have been issued and not yet adopted that are expected to have a material impact on our Condensed Consolidated Financial Statements. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Earnings per Share | The following reconciliation details the denominator used in the computation of basic and diluted earnings per share for the periods indicated: Three Months Ended Six Months Ended (In thousands) 2023 2022 2023 2022 Weighted average shares outstanding for basic earnings per share 25,329 25,438 25,273 25,377 Common stock equivalents pertaining to stock-based awards 108 80 86 106 Weighted average shares outstanding for diluted earnings per share 25,437 25,518 25,359 25,483 Equity instruments excluded from diluted net earnings per share calculation as the effect would have been antidilutive 165 112 162 111 |
Acquisitions, Goodwill And Ot_2
Acquisitions, Goodwill And Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Acquisitions, Goodwill And Other Intangible Assets [Abstract] | |
Schedule of Goodwill | Changes in the carrying amount of goodwill by reportable segment were as follows: (In thousands) OEM Segment Aftermarket Segment Total Net balance – December 31, 2022 $ 399,736 $ 167,327 $ 567,063 Acquisitions – 2023 18,314 — 18,314 Measurement period adjustments (2,905) (143) (3,048) Foreign currency translation 1,721 262 1,983 Net balance – June 30, 2023 $ 416,866 $ 167,446 $ 584,312 |
Schedule of Other Intangible Assets | Other intangible assets consisted of the following at June 30, 2023: (In thousands) Gross Accumulated Net Estimated Useful Customer relationships $ 517,588 $ 180,257 $ 337,331 6 to 20 Patents 122,373 67,697 54,676 3 to 20 Trade names (finite life) 98,650 24,050 74,600 3 to 20 Trade names (indefinite life) 7,600 — 7,600 Indefinite Non-compete agreements 11,484 8,728 2,756 3 to 6 Other 609 265 344 2 to 12 Other intangible assets $ 758,304 $ 280,997 $ 477,307 Other intangible assets consisted of the following at December 31, 2022: (In thousands) Gross Accumulated Net Estimated Useful Customer relationships $ 520,273 $ 163,562 $ 356,711 6 to 20 Patents 121,167 62,841 58,326 3 to 20 Trade names (finite life) 97,810 21,380 76,430 3 to 20 Trade names (indefinite life) 7,600 — 7,600 Indefinite Non-compete agreements 11,584 7,698 3,886 3 to 6 Other 609 242 367 2 to 12 Other intangible assets $ 759,043 $ 255,723 $ 503,320 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule Of Inventories | Inventories are stated at the lower of cost (first-in, first-out (FIFO) method) or net realizable value. Cost includes material, labor, and overhead. Inventories consisted of the following at: June 30, December 31, (In thousands) 2023 2022 Raw materials $ 503,777 $ 600,601 Work in process 45,379 44,850 Finished goods 280,864 384,254 Inventories, net $ 830,020 $ 1,029,705 |
Fixed Assets (Tables)
Fixed Assets (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule Of Fixed Assets | Fixed assets consisted of the following at: June 30, December 31, (In thousands) 2023 2022 Fixed assets, at cost $ 976,047 $ 945,255 Less accumulated depreciation and amortization 497,162 463,070 Fixed assets, net $ 478,885 $ 482,185 |
Accrued Expenses And Other Cu_2
Accrued Expenses And Other Current Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Payables and Accruals [Abstract] | |
Schedule Of Accrued Expenses And Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following at: June 30, December 31, (In thousands) 2023 2022 Employee compensation and benefits $ 54,837 $ 77,804 Current portion of accrued warranty 41,988 35,148 Deferred acquisition payments and contingent consideration* 33,692 34,013 Other 65,582 72,273 Accrued expenses and other current liabilities $ 196,099 $ 219,238 * Includes current portion of contingent consideration (Note 10) and deferred acquisition payments (Note 4). |
Schedule Of Reconciliation Of The Activity Related To Accrued Warranty | The following table provides a reconciliation of the activity related to the Company's accrued warranty, including both the current and long-term portions, for the six months ended June 30: (In thousands) 2023 2022 Balance at beginning of period $ 54,528 $ 52,114 Provision for warranty expense 40,128 28,164 Warranty costs paid (31,968) (18,646) Balance at end of period 62,688 61,632 Less long-term portion (20,700) (21,460) Current portion of accrued warranty at end of period $ 41,988 $ 40,172 |
Long-Term Indebtedness (Tables)
Long-Term Indebtedness (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | Long-term debt consisted of the following: June 30, December 31, (In thousands) 2023 2022 Convertible Notes $ 460,000 $ 460,000 Term Loan 365,000 375,000 Revolving Credit Loan 122,960 289,067 Other 3,440 3,959 Unamortized deferred financing fees (7,932) (9,052) 943,468 1,118,974 Less current portion (27,712) (23,086) Long-term indebtedness $ 915,756 $ 1,095,888 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Components of Lease Cost | The components of lease expense were as follows: Three Months Ended June 30, Six Months Ended June 30, (In thousands) 2023 2022 2023 2022 Operating lease expense $ 15,670 $ 13,236 $ 30,914 $ 26,148 Short-term lease expense 1,307 1,934 2,787 3,774 Variable lease expense 1,200 936 2,200 1,649 Total lease expense $ 18,177 $ 16,106 $ 35,901 $ 31,571 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary Of Common Stock Information | The following table summarizes information about shares of the Company's common stock at: June 30, December 31, (In thousands) 2023 2022 Common stock authorized 75,000 75,000 Common stock issued 28,665 28,519 Treasury stock 3,341 3,341 Common stock outstanding 25,324 25,178 |
Schedule of Dividends Declared | The table below summarizes the regular quarterly dividends declared and paid during the periods ended June 30, 2023 and December 31, 2022: (In thousands, except per share data) Per Share Record Date Payment Date Total Paid First Quarter 2022 $ 0.90 03/11/22 03/25/22 $ 22,870 Second Quarter 2022 1.05 06/03/22 06/17/22 26,702 Third Quarter 2022 1.05 09/02/22 09/16/22 26,701 Fourth Quarter 2022 1.05 12/02/22 12/16/22 26,453 Total 2022 $ 4.05 $ 102,726 First Quarter 2023 $ 1.05 03/10/23 03/24/23 $ 26,563 Second Quarter 2023 1.05 06/02/23 06/16/23 26,591 Total 2023 $ 2.10 $ 53,154 |
Deferred And Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock Awards and Units Activity | Transactions in DSUs and RSUs under the 2018 Plan are summarized as follows: Number of Shares Weighted Average Price Outstanding at December 31, 2022 277,774 $ 120.92 Issued 1,630 117.45 Granted 159,640 114.22 Dividend equivalents 5,695 112.11 Forfeited (13,752) 121.41 Vested (129,583) 112.24 Outstanding at June 30, 2023 301,404 $ 118.55 |
Stock Awards and Performance Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock Awards and Units Activity | Transactions in PSUs under the 2018 Plan are summarized as follows: Number of Shares Weighted Average Price Outstanding at December 31, 2022 162,381 $ 120.12 Granted 140,953 108.42 Dividend equivalents 3,727 112.19 Forfeited (3,245) 96.55 Vested (100,046) 101.11 Outstanding at June 30, 2023 203,770 $ 122.57 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Disaggregation of Revenue | The following tables present the Company's revenues disaggregated by segment and geography based on the billing address of the Company's customers: Three Months Ended June 30, 2023 Three Months Ended June 30, 2022 (In thousands) U.S. (a) Int’l (b) Total U.S. (a) Int’l (b) Total OEM Segment: RV OEMs: Travel trailers and fifth-wheels $ 326,824 $ 11,915 $ 338,739 $ 800,315 $ 14,194 $ 814,509 Motorhomes 40,689 30,496 71,185 64,008 27,472 91,480 Adjacent Industries OEMs 298,355 50,729 349,084 323,715 46,574 370,289 Total OEM Segment net sales 665,868 93,140 759,008 1,188,038 88,240 1,276,278 Aftermarket Segment: Total Aftermarket Segment net sales 234,901 20,730 255,631 240,246 19,626 259,872 Total net sales $ 900,769 $ 113,870 $ 1,014,639 $ 1,428,284 $ 107,866 $ 1,536,150 Six Months Ended June 30, 2023 Six Months Ended June 30, 2022 (In thousands) U.S. (a) Int’l (b) Total U.S. (a) Int’l (b) Total OEM Segment: RV OEMs: Travel trailers and fifth-wheels $ 641,806 $ 27,486 $ 669,292 $ 1,737,950 $ 29,785 $ 1,767,735 Motorhomes 84,693 56,043 140,736 124,154 54,580 178,734 Adjacent Industries OEMs 607,820 99,332 707,152 635,363 91,028 726,391 Total OEM Segment net sales 1,334,319 182,861 1,517,180 2,497,467 175,393 2,672,860 Aftermarket Segment: Total Aftermarket Segment net sales 435,388 35,381 470,769 470,413 37,445 507,858 Total net sales $ 1,769,707 $ 218,242 $ 1,987,949 $ 2,967,880 $ 212,838 $ 3,180,718 (a) Net sales to customers in the United States of America (b) Net sales to customers in countries domiciled outside of the United States of America |
Schedule Of Information Relating To Segments | The following table presents the Company's operating profit by segment: Three Months Ended Six Months Ended (In thousands) 2023 2022 2023 2022 Operating profit: OEM Segment $ 18,642 $ 190,577 $ 17,921 $ 435,951 Aftermarket Segment 36,532 28,212 57,296 52,539 Total operating profit $ 55,174 $ 218,789 $ 75,217 $ 488,490 |
Revenue Disaggregated by Product | The following table presents the Company's revenue disaggregated by product: Three Months Ended Six Months Ended (In thousands) 2023 2022 2023 2022 OEM Segment: Chassis, chassis parts, and slide-out mechanisms $ 202,735 $ 486,591 $ 400,791 $ 1,046,311 Windows and doors 220,094 301,985 438,705 632,343 Furniture and mattresses 125,346 229,520 265,909 471,746 Axles and suspension solutions 88,635 93,378 164,384 190,423 Other 122,198 164,804 247,391 332,037 Total OEM Segment net sales 759,008 1,276,278 1,517,180 2,672,860 Total Aftermarket Segment net sales 255,631 259,872 470,769 507,858 Total net sales $ 1,014,639 $ 1,536,150 $ 1,987,949 $ 3,180,718 |
Basis of Presentation (Details)
Basis of Presentation (Details) | Jun. 30, 2023 |
Manufacturing Facility | |
Property, Plant and Equipment | |
Manufacturing Facilities | 120 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Computation of Earnings per Share (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Earnings Per Share [Abstract] | ||||
Weighted average shares outstanding for basic earnings per share | 25,329 | 25,438 | 25,273 | 25,377 |
Common stock equivalents pertaining to stock options and deferred stock units (in shares) | 108 | 80 | 86 | 106 |
Weighted average shares outstanding for diluted earnings per share | 25,437 | 25,518 | 25,359 | 25,483 |
Equity instruments excluded from diluted net earnings per share calculation as the effect would have been antidilutive (in shares) | 165 | 112 | 162 | 111 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
May 31, 2021 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | May 13, 2021 | |
Debt Instrument [Line Items] | ||||||
Number of shares called by warrant | 2,800 | |||||
Warrant, strike price (in dollars per share) | $ 259.84 | |||||
Equity instruments excluded from diluted net earnings per share calculation as the effect would have been antidilutive (in shares) | 165 | 112 | 162 | 111 | ||
Purchases of convertible note hedge contracts | $ 100.1 | |||||
Warrants | ||||||
Debt Instrument [Line Items] | ||||||
Equity instruments excluded from diluted net earnings per share calculation as the effect would have been antidilutive (in shares) | 2,800 | 2,800 | ||||
Convertible Debt Securities | ||||||
Debt Instrument [Line Items] | ||||||
Equity instruments excluded from diluted net earnings per share calculation as the effect would have been antidilutive (in shares) | 2,800 | |||||
Convertible Notes | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate | 1.125% | |||||
Conversion price | $ 165.65 | $ 165.65 |
Acquisitions, Goodwill And Ot_3
Acquisitions, Goodwill And Other Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | ||
Nov. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Business Acquisition [Line Items] | ||||
Cash consideration, net of cash acquired | $ 25,851 | $ 51,789 | ||
Goodwill | 584,312 | $ 567,063 | ||
Acquisitions Completed During The Three Months Ended March 31, 2023 | ||||
Business Acquisition [Line Items] | ||||
Cash consideration, net of cash acquired | 25,800 | |||
Consideration, holdback payment liability | 500 | |||
Goodwill | $ 18,300 | |||
Way Interglobal Network LLC | ||||
Business Acquisition [Line Items] | ||||
Cash consideration, net of cash acquired | $ 54,800 | |||
Consideration, holdback payment liability | $ 2,000 |
Acquisitions, Goodwill And Ot_4
Acquisitions, Goodwill And Other Intangible Assets (Schedule Of Goodwill By Reportable Segment) (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Segment Reporting Information | |
Net balance – beginning of period | $ 567,063 |
Acquisitions | 18,314 |
Measurement period adjustments | (3,048) |
Foreign currency translation | 1,983 |
Net balance – end of period | 584,312 |
OEM Segment | |
Segment Reporting Information | |
Net balance – beginning of period | 399,736 |
Acquisitions | 18,314 |
Measurement period adjustments | (2,905) |
Foreign currency translation | 1,721 |
Net balance – end of period | 416,866 |
Aftermarket Segment | |
Segment Reporting Information | |
Net balance – beginning of period | 167,327 |
Acquisitions | 0 |
Measurement period adjustments | (143) |
Foreign currency translation | 262 |
Net balance – end of period | $ 167,446 |
Acquisitions, Goodwill And Ot_5
Acquisitions, Goodwill And Other Intangible Assets (Schedule Of Other Intangible Assets) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Acquired Intangible Assets | |||
Accumulated Amortization | $ 280,997 | $ 255,723 | |
Intangible Assets, Gross (Excluding Goodwill) | 758,304 | 759,043 | |
Intangible Assets, Net (Excluding Goodwill) | 477,307 | 503,320 | |
Tradenames | |||
Acquired Intangible Assets | |||
Indefinite-Lived Intangible Assets | 7,600 | 7,600 | |
Customer Relationships | |||
Acquired Intangible Assets | |||
Finite-Lived Intangible Assets, Gross | 517,588 | 520,273 | |
Accumulated Amortization | 180,257 | 163,562 | |
Net Balance | $ 337,331 | 356,711 | |
Customer Relationships | Minimum | |||
Acquired Intangible Assets | |||
Estimated Useful Life in Years | 6 years | 6 years | |
Customer Relationships | Maximum | |||
Acquired Intangible Assets | |||
Estimated Useful Life in Years | 20 years | 20 years | |
Patents | |||
Acquired Intangible Assets | |||
Finite-Lived Intangible Assets, Gross | $ 122,373 | 121,167 | |
Accumulated Amortization | 67,697 | 62,841 | |
Net Balance | $ 54,676 | 58,326 | |
Patents | Minimum | |||
Acquired Intangible Assets | |||
Estimated Useful Life in Years | 3 years | 3 years | |
Patents | Maximum | |||
Acquired Intangible Assets | |||
Estimated Useful Life in Years | 20 years | 20 years | |
Tradenames | |||
Acquired Intangible Assets | |||
Finite-Lived Intangible Assets, Gross | $ 98,650 | 97,810 | |
Accumulated Amortization | 24,050 | 21,380 | |
Net Balance | $ 74,600 | 76,430 | |
Tradenames | Minimum | |||
Acquired Intangible Assets | |||
Estimated Useful Life in Years | 3 years | 3 years | |
Tradenames | Maximum | |||
Acquired Intangible Assets | |||
Estimated Useful Life in Years | 20 years | 20 years | |
Non-compete Agreements | |||
Acquired Intangible Assets | |||
Finite-Lived Intangible Assets, Gross | $ 11,484 | 11,584 | |
Accumulated Amortization | 8,728 | 7,698 | |
Net Balance | $ 2,756 | 3,886 | |
Non-compete Agreements | Minimum | |||
Acquired Intangible Assets | |||
Estimated Useful Life in Years | 3 years | 3 years | |
Non-compete Agreements | Maximum | |||
Acquired Intangible Assets | |||
Estimated Useful Life in Years | 6 years | 6 years | |
Other | |||
Acquired Intangible Assets | |||
Finite-Lived Intangible Assets, Gross | $ 609 | 609 | |
Accumulated Amortization | 265 | 242 | |
Net Balance | $ 344 | $ 367 | |
Other | Minimum | |||
Acquired Intangible Assets | |||
Estimated Useful Life in Years | 2 years | 2 years | |
Other | Maximum | |||
Acquired Intangible Assets | |||
Estimated Useful Life in Years | 12 years | 12 years |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 503,777 | $ 600,601 |
Work in process | 45,379 | 44,850 |
Finished goods | 280,864 | 384,254 |
Inventories, net | 830,020 | 1,029,705 |
Inventory obsolescence reserves | $ 61,500 | $ 55,900 |
Fixed Assets (Schedule Of Fixed
Fixed Assets (Schedule Of Fixed Assets) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Abstract] | ||
Fixed assets, at cost | $ 976,047 | $ 945,255 |
Less accumulated depreciation and amortization | 497,162 | 463,070 |
Fixed assets, net | $ 478,885 | $ 482,185 |
Accrued Expenses And Other Cu_3
Accrued Expenses And Other Current Liabilities (Schedule Of Accrued Expenses And Other Current Liabilities) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 |
Payables and Accruals [Abstract] | |||
Employee compensation and benefits | $ 54,837 | $ 77,804 | |
Deferred acquisition payments and contingent consideration | 33,692 | 34,013 | |
Current portion of accrued warranty | 41,988 | 35,148 | $ 40,172 |
Other | 65,582 | 72,273 | |
Accrued expenses and other current liabilities | $ 196,099 | $ 219,238 |
Accrued Expenses And Other Cu_4
Accrued Expenses And Other Current Liabilities (Schedule Of Reconciliation Of The Activity Related To Accrued Warranty) (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward] | |||
Balance at beginning of period | $ 54,528 | $ 52,114 | |
Provision for warranty expense | 40,128 | 28,164 | |
Warranty costs paid | 31,968 | 18,646 | |
Balance at end of period | 62,688 | 61,632 | |
Less long-term portion | (20,700) | (21,460) | |
Current portion of accrued warranty | $ 41,988 | $ 40,172 | $ 35,148 |
Long-Term Indebtedness (Schedul
Long-Term Indebtedness (Schedule of Long-term Debt) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Unamortized deferred financing fees | $ (7,932) | $ (9,052) |
Long-term debt | 943,468 | 1,118,974 |
Less current portion | (27,712) | (23,086) |
Long-term debt, excluding current maturities | 915,756 | 1,095,888 |
Convertible Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 460,000 | 460,000 |
Line of Credit | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 122,960 | 289,067 |
Term Loan | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 365,000 | 375,000 |
Other | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 3,440 | $ 3,959 |
Long-Term Indebtedness (Narrati
Long-Term Indebtedness (Narrative) (Details) | 6 Months Ended | |||||||||
Jun. 30, 2023 USD ($) | Dec. 07, 2021 USD ($) | May 13, 2021 USD ($) tradingDay | Dec. 19, 2019 | Mar. 29, 2019 USD ($) | Dec. 14, 2018 USD ($) | Apr. 27, 2016 USD ($) | Jun. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | Feb. 24, 2014 USD ($) | |
Line of Credit Facility | ||||||||||
Long-term indebtedness | $ 915,756,000 | $ 915,756,000 | $ 1,095,888,000 | |||||||
Level 1 | ||||||||||
Line of Credit Facility | ||||||||||
Convertible debt, fair value | $ 443,900,000 | 443,900,000 | ||||||||
Term Loan | ||||||||||
Line of Credit Facility | ||||||||||
Debt, face amount | $ 400,000,000 | |||||||||
Term Loan | Period one | ||||||||||
Line of Credit Facility | ||||||||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 1.25% | |||||||||
Debt term | 2 years | |||||||||
Term Loan | Period two | ||||||||||
Line of Credit Facility | ||||||||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 1.875% | |||||||||
Term Loan | Period three | ||||||||||
Line of Credit Facility | ||||||||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 2.50% | |||||||||
Convertible Notes | ||||||||||
Line of Credit Facility | ||||||||||
Debt, face amount | $ 460,000,000 | |||||||||
Stated interest rate | 1.125% | |||||||||
Proceeds from issuance of convertible notes | $ 447,800,000 | |||||||||
Debt, conversion ratio | 0.0061469 | |||||||||
Redemption price, percentage | 100% | |||||||||
Amount of principal held | 25% | |||||||||
Convertible Notes | Period one | ||||||||||
Line of Credit Facility | ||||||||||
Threshold trading days | tradingDay | 20 | |||||||||
Threshold consecutive trading days | tradingDay | 30 | |||||||||
Threshold percentage of stock price trigger | 130% | |||||||||
JPMorgan Chase Bank And Wells Fargo Bank | Line of Credit | ||||||||||
Line of Credit Facility | ||||||||||
Letter of credit | $ 4,600,000 | $ 4,600,000 | ||||||||
Commitment fee percentage | 0.225% | |||||||||
JPMorgan Chase Bank And Wells Fargo Bank | Line of Credit | Minimum | ||||||||||
Line of Credit Facility | ||||||||||
Commitment fee percentage | 0.15% | |||||||||
JPMorgan Chase Bank And Wells Fargo Bank | Line of Credit | Maximum | ||||||||||
Line of Credit Facility | ||||||||||
Commitment fee percentage | 0.275% | |||||||||
JPMorgan Chase Bank And Wells Fargo Bank | Letter of Credit | ||||||||||
Line of Credit Facility | ||||||||||
Maximum borrowings under line of credit | $ 50,000,000 | |||||||||
Prudential Investment Management Inc | Line of Credit | ||||||||||
Line of Credit Facility | ||||||||||
Long-term indebtedness | $ 50,000,000 | $ 400,000,000 | ||||||||
Remaining availability under the facilities | $ 150,000,000 | |||||||||
Debt term | 3 years | |||||||||
Interest rate during period | 3.80% | |||||||||
Prudential Investment Management Inc | Line of Credit | New Term Loan, Amendment No. 4 | ||||||||||
Line of Credit Facility | ||||||||||
Long-term indebtedness | $ 400,000,000 | |||||||||
JPMorgan Chase Bank, N.A., Wells Fargo Bank, N.A., Bank of America, N.A., and 1st Source Bank | Line of Credit | ||||||||||
Line of Credit Facility | ||||||||||
Maximum borrowings under line of credit | $ 600,000,000 | |||||||||
Remaining availability under the facilities | $ 270,000,000 | $ 270,000,000 | ||||||||
Option One | JPMorgan Chase Bank, N.A., Wells Fargo Bank, N.A., Bank of America, N.A., and 1st Source Bank | Line of Credit | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||||||||||
Line of Credit Facility | ||||||||||
Debt instrument, additional margin interest rate | 0.625% | |||||||||
Option One | JPMorgan Chase Bank, N.A., Wells Fargo Bank, N.A., Bank of America, N.A., and 1st Source Bank | Line of Credit | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Minimum | ||||||||||
Line of Credit Facility | ||||||||||
Debt instrument, additional margin interest rate | 0% | |||||||||
Option One | JPMorgan Chase Bank, N.A., Wells Fargo Bank, N.A., Bank of America, N.A., and 1st Source Bank | Line of Credit | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Maximum | ||||||||||
Line of Credit Facility | ||||||||||
Debt instrument, additional margin interest rate | 0.875% | |||||||||
Option Two | JPMorgan Chase Bank, N.A., Wells Fargo Bank, N.A., Bank of America, N.A., and 1st Source Bank | Line of Credit | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||||||||||
Line of Credit Facility | ||||||||||
Basis spread on variable rate | 1.625% | |||||||||
Option Two | JPMorgan Chase Bank, N.A., Wells Fargo Bank, N.A., Bank of America, N.A., and 1st Source Bank | Line of Credit | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Minimum | ||||||||||
Line of Credit Facility | ||||||||||
Basis spread on variable rate | 0.875% | |||||||||
Option Two | JPMorgan Chase Bank, N.A., Wells Fargo Bank, N.A., Bank of America, N.A., and 1st Source Bank | Line of Credit | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Maximum | ||||||||||
Line of Credit Facility | ||||||||||
Debt instrument, additional margin interest rate | 1.875% |
Leases (Components of Lease Cos
Leases (Components of Lease Cost) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Leases [Abstract] | ||||
Operating lease expense | $ 15,670 | $ 13,236 | $ 30,914 | $ 26,148 |
Short-term lease expense | 1,307 | 1,934 | 2,787 | 3,774 |
Variable lease expense | 1,200 | 936 | 2,200 | 1,649 |
Total lease expense | $ 18,177 | $ 16,106 | $ 35,901 | $ 31,571 |
Stockholders' Equity (Summary O
Stockholders' Equity (Summary Of Common Stock Information) (Details) - shares shares in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Stockholders' Equity Note [Abstract] | ||
Common stock authorized (in shares) | 75,000 | 75,000 |
Common stock issued (in shares) | 28,665 | 28,519 |
Treasury stock, common, shares (in shares) | 3,341 | 3,341 |
Common stock outstanding (in shares) | 25,324 | 25,178 |
Stockholders' Equity (Summary_2
Stockholders' Equity (Summary of Regular Quarterly Dividend) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Cash dividend (in usd per share) | $ 1.05 | $ 1.05 | $ 1.05 | $ 1.05 | $ 1.05 | $ 0.90 | $ 2.10 | $ 4.05 | |
Payment of dividends | $ 53,154 | $ 49,572 | |||||||
Common Stock | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Payment of dividends | $ 26,591 | $ 26,563 | $ 26,453 | $ 26,701 | $ 26,702 | $ 22,870 | $ 53,154 | $ 102,726 |
Stockholders' Equity (Stock Awa
Stockholders' Equity (Stock Awards and Units Activity) (Details) | 6 Months Ended |
Jun. 30, 2023 $ / shares shares | |
Deferred And Restricted Stock Units | |
Number of Shares | |
Outstanding at beginning of period (in shares) | shares | 277,774 |
Issued (in shares) | shares | 1,630 |
Granted (in shares) | shares | 159,640 |
Dividend equivalents (in shares) | shares | 5,695 |
Forfeited (in shares) | shares | (13,752) |
Vested (in shares) | shares | (129,583) |
Outstanding at end of period (in shares) | shares | 301,404 |
Weighted Average Price | |
Outstanding at beginning of period (in usd per share) | $ / shares | $ 120.92 |
Issued (in usd per share) | $ / shares | 117.45 |
Granted (in usd per share) | $ / shares | 114.22 |
Dividend equivalents (in usd per share) | $ / shares | 112.11 |
Forfeited (in usd per share) | $ / shares | 121.41 |
Vested (in usd per share) | $ / shares | 112.24 |
Outstanding at end of period (in usd per share) | $ / shares | $ 118.55 |
Stock Awards and Performance Stock Units | |
Number of Shares | |
Outstanding at beginning of period (in shares) | shares | 162,381 |
Granted (in shares) | shares | 140,953 |
Dividend equivalents (in shares) | shares | 3,727 |
Forfeited (in shares) | shares | (3,245) |
Vested (in shares) | shares | (100,046) |
Outstanding at end of period (in shares) | shares | 203,770 |
Weighted Average Price | |
Outstanding at beginning of period (in usd per share) | $ / shares | $ 120.12 |
Granted (in usd per share) | $ / shares | 108.42 |
Dividend equivalents (in usd per share) | $ / shares | 112.19 |
Forfeited (in usd per share) | $ / shares | 96.55 |
Vested (in usd per share) | $ / shares | 101.11 |
Outstanding at end of period (in usd per share) | $ / shares | $ 122.57 |
Stockholders' Equity (Stock Rep
Stockholders' Equity (Stock Repurchase Program) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | |
May 19, 2022 | Mar. 31, 2023 | Jun. 30, 2023 | |
Equity [Abstract] | |||
Number of shares authorized to be repurchased | 200,000,000 | ||
Stock repurchase program, period in force | 3 years | ||
Stock repurchased during period (in shares) | 253,490 | 0 | |
Stock repurchased (in usd per share) | $ 94.89 | ||
Stock repurchase price | $ 24.1 |
Segment Reporting (Narrative) (
Segment Reporting (Narrative) (Details) - segment | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Segment Reporting Information | ||
Number of reportable segments | 2 | |
Product Concentration Risk | Net sales | OEM Segment | ||
Segment Reporting Information | ||
Concentration risk, percentage | 76% | 84% |
Product Concentration Risk | Net sales | Travel trailers and fifth-wheels | ||
Segment Reporting Information | ||
Concentration risk, percentage | 44% | |
Product Concentration Risk | Net sales | Aftermarket Segment | ||
Segment Reporting Information | ||
Concentration risk, percentage | 24% | 16% |
Segment Reporting (Disaggregati
Segment Reporting (Disaggregation of Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 1,014,639 | $ 1,536,150 | $ 1,987,949 | $ 3,180,718 |
OEM Segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 759,008 | 1,276,278 | 1,517,180 | 2,672,860 |
Travel trailers and fifth-wheels | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 338,739 | 814,509 | 669,292 | 1,767,735 |
Motorhomes | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 71,185 | 91,480 | 140,736 | 178,734 |
Adjacent industries OEMs | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 349,084 | 370,289 | 707,152 | 726,391 |
Aftermarket Segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 255,631 | 259,872 | 470,769 | 507,858 |
Chassis, chassis parts and slide-out mechanisms | OEM Segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 202,735 | 486,591 | 400,791 | 1,046,311 |
Windows and doors | OEM Segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 220,094 | 301,985 | 438,705 | 632,343 |
Furniture and mattresses | OEM Segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 125,346 | 229,520 | 265,909 | 471,746 |
Axles and suspension solutions | OEM Segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 88,635 | 93,378 | 164,384 | 190,423 |
Other | OEM Segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 122,198 | 164,804 | 247,391 | 332,037 |
U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 900,769 | 1,428,284 | 1,769,707 | 2,967,880 |
U.S. | OEM Segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 665,868 | 1,188,038 | 1,334,319 | 2,497,467 |
U.S. | Travel trailers and fifth-wheels | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 326,824 | 800,315 | 641,806 | 1,737,950 |
U.S. | Motorhomes | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 40,689 | 64,008 | 84,693 | 124,154 |
U.S. | Adjacent industries OEMs | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 298,355 | 323,715 | 607,820 | 635,363 |
U.S. | Aftermarket Segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 234,901 | 240,246 | 435,388 | 470,413 |
International | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 113,870 | 107,866 | 218,242 | 212,838 |
International | OEM Segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 93,140 | 88,240 | 182,861 | 175,393 |
International | Travel trailers and fifth-wheels | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 11,915 | 14,194 | 27,486 | 29,785 |
International | Motorhomes | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 30,496 | 27,472 | 56,043 | 54,580 |
International | Adjacent industries OEMs | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 50,729 | 46,574 | 99,332 | 91,028 |
International | Aftermarket Segment | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 20,730 | $ 19,626 | $ 35,381 | $ 37,445 |
Segment Reporting (Schedule of
Segment Reporting (Schedule of Operating Profit by Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Segment Reporting Information | ||||
Operating profit | $ 55,174 | $ 218,789 | $ 75,217 | $ 488,490 |
Operating Segments | OEM Segment | ||||
Segment Reporting Information | ||||
Operating profit | 18,642 | 190,577 | 17,921 | 435,951 |
Operating Segments | Aftermarket Segment | ||||
Segment Reporting Information | ||||
Operating profit | $ 36,532 | $ 28,212 | $ 57,296 | $ 52,539 |