LCI Industries (NYSE:LCII) Q3 2023 Results Conference Call November 7, 2023 8:30 AM ET

Company Participants

Lillian Etzkorn - CFO

Jason Lippert - President and CEO

Kip Emenhiser - VP of Finance and Treasurer

Conference Call Participants

Kathryn Thompson - Thompson Research Group

Scott Stember - ROTH MKM

Mike Swartz - Truist Securities

Fred Wightman - Wolf Research

Daniel Moore - CJS Securities

Bret Jordan - Jefferies

Brandon Rolle - D.A. Davidson

Operator

Hello, and welcome to the LCI Industries Q3 2023 Earnings Call. My name is Lauren, and I will be coordinating your call today. There will be an opportunity for questions at the end of the presentation [Operator Instructions].

I will now hand you over to host, Lillian Etzkorn, to begin. Please go ahead.

Lillian Etzkorn

Good morning, everyone. And welcome to the LCI Industries' third quarter 2023 conference call. I am joined on the call today by Jason Lippert, President and CEO; and Kip Emenhiser, VP of Finance and Treasurer. We will discuss the results for the quarter in just a minute.

But first, I would like to inform you that certain statements made in today's conference call regarding LCI Industries and its operations may be considered forward-looking statements under the securities laws and involve a number of risks and uncertainties. As a result, the company cautions you that there are a number of factors, many of which are beyond the company's control, which could cause actual results and events to differ materially from those described in the forward-looking statements. These factors are discussed in our earnings release and in our Form 10-K and other filings with the SEC. The company disclaims any obligation or undertaking to update forward-looking statements to reflect circumstances or events that occur after the date that the forward-looking statements are made, except as required by law.

With that, I would like to turn the call over to Jason.

Jason Lippert

Thanks, Lillian and good morning, everyone. And welcome to our third quarter 2023 earnings call. Over the last 20 years, this team has worked very hard to transform Lippert from a manufactured [housing] chassis and roofing supplier to a diversified innovative global supplier for some of the most core and highly engineered RVs, Marine and aftermarket products offered to OEMs and their consumers. By 2008, our business had transitioned from a 100% manufactured housing to almost 90% RV. We then leveraged our talented team and created a strategy that would take us into Europe, building products, transportation, aftermarket, and marine over the next decade. Our successful diversification strategy is what has enabled us to experience results this year that would not have been possible had we stayed only in our traditional markets. It is this successful execution of our diversification strategy that has transformed us into a dynamic Fortune 1000 company. With respect to Q3, we continue to encounter a challenging operating environment that while pressuring the top line exhibited the durability of our diversified businesses. Our aftermarket segment and adjacent industries OEM revenues are outpacing RV OEMs, exceeding 55% of revenues for the quarter, a trend we expect to continue as we extend our capabilities into growing our markets outside of RV. Not only did these revenues outpaced our RV OEM business, we saw a strong results in these businesses for the quarter.