Temporary working capital

DISCUSSION AND ANALYSIS BY LCI INDUSTRIES MANAGEMENT OF THE FINANCIAL POSITION AND OPERATING RESULTS (Form 10-Q)

This Management's Discussion and Analysis of Financial Condition and Results of
Operations should be read in conjunction with the Company's Condensed
Consolidated Financial Statements and Notes thereto included in Item 1 of Part 1
of this report, as well as the Company's Annual Report on Form 10-K for the year
ended December 31, 2020.

LCI Industries ("LCII" and collectively with its subsidiaries, the "Company,"
"we," "us," or "our"), through its wholly-owned subsidiary, Lippert Components,
Inc. and its subsidiaries (collectively, "Lippert Components," "LCI," or
"Lippert"), supplies, domestically and internationally, a broad array of
engineered components for the leading original equipment manufacturers ("OEMs")
in the recreation and transportation product markets, consisting primarily of
recreational vehicles ("RVs") and adjacent industries, including buses; trailers
used to haul boats, livestock, equipment, and other cargo; trucks; boats;
trains; manufactured homes; and modular housing. We also supply engineered
components to the related aftermarkets of these industries, primarily by selling
to retail dealers, wholesale distributors, and service centers.

We have two reportable segments, the OEM Segment and the Aftermarket Segment.
Intersegment sales are insignificant. At September 30, 2021, we operated over
100 manufacturing and distribution facilities located throughout the United
States and in Canada, Germany, Ireland, Italy, the Netherlands, and the United
Kingdom. See Note 14 of the Notes to Condensed Consolidated Financial Statements
for further information regarding our segments.

Our OEM Segment manufactures or distributes a broad array of engineered
components for the leading OEMs of leisure and mobile transportation industries.
Approximately 62 percent of our OEM Segment net sales for the twelve months
ended September 30, 2021 were of components for travel trailer and fifth-wheel
RVs, including:
? Steel chassis and related components              ? Electric and manual entry steps
? Axles and suspension solutions                    ? Awnings and awning 

accessories

? Slide-out mechanisms and solutions                ? Electronic components

? Bath, kitchen and other thermoformed products? Appliances ? Vinyl, aluminum and frameless windows

            ? Air conditioners

? Manual, electric and hydraulic stabilizer and? TVs and sound systems

   leveling systems
? Entry, luggage, patio, and ramp doors             ? Other accessories

? Furniture and mattresses


The Aftermarket Segment supplies many of these engineered components to the
related aftermarket channels of the recreation and transportation product
markets, primarily to retail dealers, wholesale distributors, and service
centers. The Aftermarket Segment also includes biminis, covers, buoys, fenders
to the marine industry, towing products, truck accessories, appliances, air
conditioners, sound systems, and the sale of replacement glass and awnings to
fulfill insurance claims.

Most industries where we sell products or where our products are used
historically have been seasonal and are generally at the highest levels when the
weather is moderate. Accordingly, our sales and profits have generally been the
highest in the second quarter and lowest in the fourth quarter. However, because
of fluctuations in dealer inventories, the impact of international, national and
regional economic conditions, consumer confidence on retail sales of RVs and
other products for which we sell our components, the timing of dealer orders,
and the impact of severe weather conditions on the timing of industry-wide
shipments from time to time, current and future seasonal industry trends may be
different than in prior years, particularly as a result of the 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 these Aftermarket Segment sales to be
counter-seasonal, but this may be different in the remainder of 2021 and future
years as a result of the COVID-19 pandemic and related impacts.

COVID-19 UPDATE

The COVID-19 pandemic has caused significant uncertainty and disruption in the global economy and financial markets. The COVID-19 pandemic adversely affected our financial results in the first half of 2020 due to

                                       28
--------------------------------------------------------------------------------
                                 LCI INDUSTRIES
                ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                 FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                                  (Continued)
government-mandated plant shutdowns. We took a variety of actions during 2020 to
help mitigate the adverse impacts, including temporary cost savings measures and
delays and reductions in capital expenditures.

Activity in most of the end markets we serve sequentially improved as 2020
progressed, and this trend has continued through the first nine months of 2021,
especially in the RV and marine OEM markets and our Aftermarket Segment. With RV
retail demand at record levels through the first nine months of 2021, the
industry has faced challenges with supply chain constraints, rising material
costs, and a tightened labor market, especially in northern Indiana. To address
these challenges, we have strategically managed working capital, including
intentionally building up levels of certain inventory items to avoid future
shortages. We continue to focus on our culture and leadership development
programs to focus on team member retention and regularly hold hiring events,
with COVID-19 safety measures, to fill open positions. As we build inventory
levels and invest in additional production capacity, we also closely monitor our
liquidity, and may need to seek additional financing, though such additional
financing may not be available on terms favorable to us, or at all. See
"Liquidity and Capital Resources" below for further discussion.

The health and safety of our team members have remained our top priority. We
continue to maintain the rigorous health and safety protocols we established in
2020. We leased a location to provide drive-thru rapid COVID-19 tests for our
team members in northern Indiana. We have encouraged team members to seek
vaccination when eligible and partnered with a local hospital to host private
vaccination days for our eligible northern Indiana team members and their
families.

We continue to closely monitor the impact of COVID-19 on all aspects of our business.

INDUSTRY BACKGROUND

OEM Segment

North American Recreational Vehicle Industry

An RV is a vehicle designed as temporary living quarters for recreational,
camping, travel or seasonal use. RVs may be motorized (motorhomes) or towable
(travel trailers, fifth-wheel travel trailers, folding camping trailers, and
truck campers).
The annual sales cycle for the RV industry generally starts in October after the
"Open House" in Elkhart, Indiana where many of the largest RV OEMs display
product to RV retail dealers and ends after the conclusion of the summer selling
season in September in the following calendar year. Between October and March,
industry-wide wholesale shipments of travel trailer and fifth-wheel RVs have
historically exceeded retail sales as dealers build inventories to support
anticipated sales. Between April and September, the spring and summer selling
seasons, retail sales of travel trailer and fifth-wheel RVs have historically
exceeded industry-wide wholesale shipments. Due to the COVID-19 pandemic, the
2021 and 2020 Open Houses were canceled. The seasonality of the RV industry has
been, and will likely continue to be, impacted by the COVID-19 pandemic, and the
timing of a return to historical seasonality is not possible to predict at this
time.
According to the Recreation Vehicle Industry Association ("RVIA"), industry-wide
wholesale shipments from the United States of travel trailer and fifth-wheel RVs
in the first nine months of 2021, our primary RV market, increased 51 percent to
401,000 units, compared to the first nine months of 2020, primarily due to
increased retail demand and dealers rebuilding inventory levels. Retail demand
for travel trailer and fifth-wheel RVs increased 15 percent in the first nine
months of 2021 compared to the same period in 2020. Retail demand is typically
revised upward in subsequent months, primarily due to delayed RV registrations.
While we measure our OEM Segment RV sales against industry-wide wholesale
shipment statistics, the underlying health of the RV industry is determined by
retail demand. A comparison of the number of units and the year-over-year
percentage change in industry-wide wholesale shipments and retail sales of
travel trailers and fifth-wheel RVs, as reported by Statistical Surveys, Inc.,
as well as the resulting estimated change in dealer inventories, for both the
United States and Canada, is as follows:
                                       29
--------------------------------------------------------------------------------
                                 LCI INDUSTRIES
                ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                 FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                                  (Continued)
                                                                                                                                   Estimated
                                                      Wholesale                                  Retail                          Unit Impact on
                                              Units                Change              Units               Change              Dealer Inventories
Quarter ended September 30, 2021              136,000               24%               126,300              (21)%                     9,700
Quarter ended June 30, 2021                   133,800               100%              180,200               36%                     (46,400)
Quarter ended March 31, 2021                  131,200               49%               114,400               52%                      16,800
Quarter ended December 31, 2020               115,200               38%                89,400               41%                      25,800
Twelve months ended September 30, 2021        516,200               48%               510,300               19%                      5,900

Quarter ended September 30, 2020              110,100               37%               159,100               35%                     (49,000)
Quarter ended June 30, 2020                    66,800              (34)%              132,500               (5)%                    (65,700)
Quarter ended March 31, 2020                   88,000                4%                75,100               (3)%                     12,900
Quarter ended December 31, 2019                83,300               (8)%               63,600               (6)%                     19,700
Twelve months ended September 30, 2020        348,200               (2)%              430,300                7%                     (82,100)


According to the RVIA, industry-wide wholesale shipments of motorhome RVs in the
first nine months of 2021 increased 51 percent to 42,800 units compared to the
first nine months of 2020, primarily due to OEM plant shutdowns in response to
COVID-19 in the 2020 period. Retail demand for motorhome RVs increased 4 percent
year-over-year in the first nine months of 2021, compared to a 2 percent
year-over-year decrease in retail demand in the same period of 2020.

Adjacent industries

Our portfolio of products used in RVs can also be used in other applications,
including buses; trailers used to haul boats, livestock, equipment and other
cargo; trucks; boats; trains; manufactured homes; and modular housing
(collectively, "Adjacent Industries"). In many cases, OEM customers of the
Adjacent Industries are affiliated with RV OEMs through related subsidiaries. We
believe there are significant opportunities in these Adjacent Industries.

Secondary market segment

Many of our OEM Segment products are also sold through various aftermarket
channels, including dealerships, wholesale distributors, and service centers, as
well as direct to retail customers via the Internet. This includes discretionary
accessories and replacement service parts. We have teams dedicated to product
technical and installation training as well as marketing support for our
Aftermarket Segment customers. We also support multiple call centers to provide
responses to customers for both product delivery and technical support. This
support is designed for a rapid response to critical repairs, so customer
downtime is minimized. The Aftermarket Segment also includes biminis, covers,
buoys, fenders to the marine industry, towing products, truck accessories,
appliances, air conditioners, televisions, sound systems, and the sale of
replacement glass and awnings to fulfill insurance claims. Many of the optional
upgrades and non-critical replacements for RVs are purchased outside the normal
product selling seasons, thereby causing certain Aftermarket Segment sales to be
counter-seasonal, but this may be different in the remainder of 2021 and future
years as a result of the COVID-19 pandemic and related impacts.

According to Go RVing, estimated RV ownership in the United States as of 2020
had increased to over 11 million households. This vibrant market is a key driver
for aftermarket sales, as we anticipate owners will likely upgrade their units
as well as replace parts and accessories which have been subjected to normal
wear and tear.

RESULTS OF OPERATIONS

Consolidated Highlights

•Consolidated net sales in the third quarter of 2021 were $1.2 billion, 41
percent higher than consolidated net sales for the same period of 2020 of $827.7
million. The increase was primarily driven by record RV retail demand and strong
Aftermarket Segment sales growth. Net sales from acquisitions completed in 2020
and the first nine months
                                       30
--------------------------------------------------------------------------------
                                 LCI INDUSTRIES
                ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                 FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                                  (Continued)
of 2021, primarily Furrion Holdings Limited ("Furrion"), Veada Industries, Inc.
and Challenger Door, LLC, contributed approximately $78.5 million in the third
quarter of 2021.
•Net income for the third quarter of 2021 was $63.4 million, or $2.49 per
diluted share, compared to net income of $68.3 million, or $2.70 per diluted
share, for the same period of 2020.
•Consolidated operating profit during the third quarter of 2021 was $89.0
million compared to $94.4 million in the same period of 2020. Operating profit
margin was 7.6 percent in the third quarter of 2021 compared to 11.4 percent in
the same period of 2020. The decline is primarily a result of increased raw
material, labor, and freight costs.
•The cost of aluminum and steel used in certain of our manufactured components
increased in the third quarter of 2021 compared to the same period of 2020. Raw
material costs are subject to continued fluctuation and are being offset, in
part, by contractual selling prices that are indexed to select commodities.
•The effective tax rate of 24.9 percent for the nine months ended
September 30, 2021 was lower than the comparable prior year period of 26.2
percent, primarily due to the reduced rate impact of permanent tax differences
with the growth in income before income taxes and an increase in the excess tax
benefit related to the vesting of equity-based compensation awards and
investments in life insurance contracts, as discussed below under "Income
Taxes."
•In March, June, and September 2021, we paid a quarterly dividend of $0.75,
$0.90, and $0.90 per share, aggregating to $18.9 million, $22.7 million, and
$22.7 million respectively.

OEM Segment - Third Quarter

Net sales of the OEM segment in the third quarter of 2021 increased $ 304.2 million, compared to the same period of 2020. Net sales of components to the following OEM markets for the quarter ended September 30 were: (in thousands)

                         2021           2020         Change
RV OEMs:
Travel trailers and fifth-wheels    $ 602,429      $ 417,050         44  %
Motorhomes                             63,259         44,441         42  %
Adjacent Industries OEMs              280,593        180,563         55  %
Total OEM Segment net sales         $ 946,281      $ 642,054         47  %


According to RVIA, unit shipments from industry-wide wholesalers for the three months have ended September 30 were:

                                        2021          2020        Change

Trailers and fifth wheel trailers 136 200 110 100 24% Motorhomes

                             13,300        11,300         18  %



In order to improve comparability, our content calculations in the OEM segment discussion that follows have been adjusted to remove sales of the Company’s Furrion products from periods prior to the termination of the distribution and supply agreement of the company with Furrion at the end of 2019.

The trend in our average product content per RV produced is an indicator of our
overall market share of components for new RVs. Our average product content per
type of RV, calculated based upon our net sales of components to domestic RV
OEMs for the different types of RVs produced for the twelve months ended
September 30, divided by the industry-wide wholesale shipments of the different
product mix of RVs for the same period, was:
Content per:                          2021         2020        Change

Travel trailer and fifth wheel RV $ 3,786 $ 3,428 10% Motorhome

                           $ 2,732      $ 2,399         14  %



Our average product content per type of RV excludes international sales and
sales to the Aftermarket Segment and Adjacent Industries. Content per RV is
impacted by market share gains, acquisitions, new product introductions, and
changes in selling prices for our products, as well as changes in the types of
RVs produced industry-wide.

                                       31
--------------------------------------------------------------------------------
                                 LCI INDUSTRIES
                ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                 FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                                  (Continued)
Our increase in net sales to RV OEMs of travel trailers, fifth-wheel, and
motorhome components during the third quarter of 2021 was primarily driven by a
recovery in RV retail demand beginning later in the second quarter of 2020 and
continuing through the third quarter of 2021. The net sales increase further
benefited from content gains and price increases during the third quarter of
2021.

Our increase in net sales to OEMs in Adjacent Industries during the third
quarter of 2021 was driven by acquisitions and a recovery in retail demand for
the marine industry and other adjacent markets beginning later in the second
quarter of 2020 and continuing through the third quarter of 2021.

Operating profit of the OEM Segment was $64.1 million in the third quarter of
2021, a decrease of $1.4 million compared to the same period of 2020. The
operating profit margin of the OEM Segment in the third quarter of 2021
decreased to 6.8 percent compared to 10.2 percent for the same period of 2020
and the operating profit margin was negatively impacted by:
•Increases in material commodity pricing and production supplies, which
negatively impacted operating profit by $98.3 million, primarily related to
increased steel and aluminum costs.
•Increases in production labor costs due to higher production volumes and a
tight labor market, which reduced operating profit by $15.7 million.
•Increases in transportation costs, primarily for third party freight, which
reduced operating profit by $5.7 million.
Partially offset by:
•Selling prices contractually tied to indexes of select commodities increased,
resulting in an increase in operating profit of $52.5 million compared to the
same period of 2020.
•Pricing changes to targeted products, resulting in an increase in operating
profit of $31.4 million compared to the same period of 2020.
•Leveraging of fixed costs over a larger sales base, which increased operating
profit by $11.5 million related to fixed selling, general, and administrative
costs and $5.4 million related to fixed overhead costs.
Amortization expense on intangible assets for the OEM Segment was $8.6 million
in the third quarter of 2021, compared to $6.9 million in the same period in
2020. Depreciation expense on fixed assets for the OEM Segment was $12.8 million
in the third quarter of 2021, compared to $11.9 million in the same period of
2020.

OEM Segment - Year to Date

Net sales of the OEM Segment in the first nine months of 2021 increased 70
percent, or $1.1 billion, compared to the first nine months of 2020. Net sales
of components to OEMs were to the following markets for the nine months ended
September 30:
(In thousands)                          2021             2020          Change
RV OEMs:
Travel trailers and fifth-wheels    $ 1,633,059      $   936,676         74  %
Motorhomes                              193,105          107,241         80  %
Adjacent Industries OEMs                801,021          498,306         61  %
Total OEM Segment net sales         $ 2,627,185      $ 1,542,223         70  %


According to RVIA, unit shipments from industry-wide wholesalers for the nine months have ended September 30, were:

                                        2021          2020        Change

Trailers and fifth wheel 401,000 264,800 51% Motorhomes

                             42,400        28,300         50  %



Our increase in net sales to RV OEMs of travel trailers, fifth-wheel, and
motorhome components during the first nine months of 2021 was primarily driven
by a recovery in RV retail demand beginning later in the first nine months of
2020 and
                                       32
--------------------------------------------------------------------------------
                                 LCI INDUSTRIES
                ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                 FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                                  (Continued)

continuing into the first nine months of 2021. The increase in net sales also benefited from content gains in the first nine months of 2021.

Our increase in net sales to OEMs in Adjacent Industries during the first nine
months of 2021 was driven by acquisitions and a recovery in retail demand for
the marine industry and other adjacent markets beginning later in the first nine
months of 2020 and continuing through the first nine months of 2021. We continue
to believe there are significant opportunities in Adjacent Industries.

Operating profit of the OEM Segment was $206.8 million in the first nine months
of 2021, an increase of $96.3 million compared to the same period of 2020. The
operating profit margin of the OEM Segment in the first nine months of 2021
increased to 7.9 percent compared to 7.2 percent for the same period of 2020 and
the operating profit margin was positively impacted by:
•Leveraging of fixed costs over a larger sales base, partially related to
COVID-19 shutdowns in 2020, which increased operating profit by $72.2 million
related to fixed selling, general, and administrative costs and $36.0 million
related to fixed overhead costs.
•Selling prices contractually tied to indexes of select commodities increased,
resulting in an increase in operating profit of $69.9 million compared to the
same period of 2020.
•Pricing changes to targeted products, resulting in an increase in operating
profit of $51.3 million compared to the same period of 2020.
Partially offset by:
•Increases in material commodity pricing, which negatively impacted operating
profit by $165.8 million, primarily related to increased steel and aluminum
costs.
•Increases in direct labor costs due to higher production volumes and a tight
labor market, which reduced operating profit by $28.6 million.
•Increases in transportation costs, primarily for third party freight, which
reduced operating profit by $12.7 million.

Secondary Market Segment – Third Quarter

Net sales of the Aftermarket Segment in the third quarter of 2021 increased 18
percent, or $33.4 million, compared to the same period of 2020. Net sales of
components in the Aftermarket Segment were as follows for the three months ended
September 30:
(In thousands)                            2021           2020         

Switch

Total net sales of the Aftermarket segment $ 219,028 $ 185,675 18%



Our net sales to the Aftermarket Segment increased during the third quarter of
2021, primarily due to increased consumer demand in the outdoor recreational and
transportation market and our distributor customers rebuilding their inventory
levels.

Operating profit of the Aftermarket Segment was $24.9 million in the third
quarter of 2021, a decrease of $4.0 million compared to the same period of 2020.
The operating profit margin of the Aftermarket Segment was 11.4 percent in the
third quarter of 2021, compared to 15.6 percent in the same period in 2020, and
the operating profit margin was negatively impacted by:
•Increases in material commodity pricing and production supplies, which
negatively impacted operating profit by $9.9 million, primarily related to
increased steel and aluminum costs.
•Increases in transportation costs, primarily for third party freight, which
reduced operating profit by $3.9 million.
•Increases in direct labor costs due to higher production volumes and a tight
labor market, which reduced operating profit by $1.8 million.
•Additional amortization related to long-lived assets from recent acquisitions,
which reduced operating profit by $1.0 million.
                                       33
--------------------------------------------------------------------------------
                                 LCI INDUSTRIES
                ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                 FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                                  (Continued)
Partially offset by:
•Pricing changes to targeted products, resulting in an increase in operating
profit of $9.8 million compared to the same period of 2020.
Amortization expense on intangible assets for the Aftermarket Segment was $3.9
million in the third quarter of 2021, compared to $2.9 million in the same
period of 2020. Depreciation expense on fixed assets for the Aftermarket Segment
was $3.7 million in the third quarter of 2021, compared to $2.9 million in the
same period of 2020.

Secondary Market Segment – Year to Date

Net sales of the Aftermarket Segment in the first nine months of 2021 increased
34 percent, or $161.2 million, compared to the same period of 2020. Net sales of
components in the Aftermarket Segment were as follows for the nine months ended
September 30:
(In thousands)                            2021           2020         

Switch

Total net sales of the Aftermarket segment $ 632,102 $ 470,941 34%



Our net sales to the Aftermarket Segment increased during the first nine months
of 2021 primarily due to organic growth of $135.8 million and sales from
acquisitions of $25.4 million.
Operating profit of the Aftermarket Segment was $77.7 million in the first nine
months of 2021, an increase of $28.7 million compared to the same period of
2020, primarily due to sales from organic growth, and the impact of COVID-19 in
2020. The operating profit margin of the Aftermarket Segment was 12.3 percent in
the first nine months of 2021, compared to 10.4 percent in the same period in
2020, and the operating profit margin was positively impacted by:
•Leveraging of fixed costs over a larger sales base, partially related to
COVID-19 shutdowns in 2020, which increased operating profit by $16.8 million
related to fixed selling, general, and administrative costs and $10.0 million
related to fixed overhead costs.
•Pricing changes to targeted products, resulting in an increase in operating
profit of $17.5 million compared to the same period of 2020.
•The recognition of higher cost of sales during the first nine months of 2020
due to the inventory fair value step-up for CURT of $7.3 million.
Partially offset by:
•Increases in material commodity pricing and production supplies, which
negatively impacted operating profit by $21.4 million, primarily related to
increased steel and aluminum costs.
•Increases in transportation costs, primarily for third party freight, which
reduced operating profit by $13.7 million.
•Increases in direct labor costs due to higher production volumes and a tight
labor market, which reduced operating profit by $4.4 million.

Income taxes

The effective tax rates for the nine months ended September 30, 2021 and 2020
were 24.9 percent and 26.2 percent, respectively. The effective tax rate for the
nine months ended September 30, 2021 differed from the Federal statutory rate
primarily due to state taxes, foreign taxes, and non-deductible expenses,
partially offset by the recognition of excess tax benefits as a component of the
provision for income taxes, and Federal and Indiana research and development
credits. The decrease in the effective tax rate for the nine months ended
September 30, 2021 as compared to the same period in 2020 was primarily due to
the decreased rate impact of permanent tax differences with the growth in income
before income taxes and an increase in the excess tax benefit related to the
vesting of equity-based compensation awards and investments in life insurance
contracts.

LIQUIDITY AND CAPITAL RESOURCES

Cash flow

As of September 30, 2021, we had $72.6 million in cash and cash equivalents, and
$267.2 million of availability under our revolving credit facility under the
Amended Credit Agreement (as defined in Note 9 of the Notes to Condensed
                                       34
--------------------------------------------------------------------------------
                                 LCI INDUSTRIES
                ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                 FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                                  (Continued)
Consolidated Financial Statements). Additionally, we have the ability to request
up to $150.0 million in additional Senior Promissory Notes be purchased by
Prudential under our Shelf-Loan Facility (each as defined in Note 9 of the Notes
to Condensed Consolidated Financial Statements), subject to Prudential's
approval. See Note 9 of the Notes to Condensed Consolidated Financial Statements
for a description of our credit facilities.

We maintain a level of liquidity sufficient to allow us to meet our cash needs
in the short term. Over the long term, we manage our cash and capital structure
to maximize shareholder return, maintain our financial condition, and maintain
flexibility for our future strategic investments. We continuously assess our
capital requirements, working capital needs, debt and leverage levels, debt and
lease maturity schedules, capital expenditure requirements, dividends, future
investments or acquisitions, and potential share repurchases. As discussed above
under "COVID-19 Update," with RV retail demand at record levels through the
first nine months of 2021, the industry has faced challenges with supply chain
constraints, rising material costs, and a tightened labor market, especially in
northern Indiana. To address these challenges, we have strategically managed
working capital, including intentionally building up levels of certain inventory
items to avoid future shortages, and have expanded our production capacity. As
we build inventory levels and invest in additional production capacity, we also
closely monitor our liquidity. In the event additional needs for cash arise, or
if we refinance our existing debt, we may raise additional funds from a
combination of sources, including the potential issuance of debt or equity
securities. Additional financing might not be available on terms favorable to
us, or at all.
We believe the availability under the revolving credit facility under the
Amended Credit Agreement, along with our cash flows from operations, are
adequate to finance our anticipated cash requirements for the next twelve
months.

The condensed consolidated statements of cash flows reflect the following items for the nine months ended September 30:

© Edgar online, source Previews


Source link

Comment here

placeholder="Your Comment">