LCI Industries Shares Additional Business Updates Related to COVID-19

LCI Industries (NYSE: LCII), which, through its wholly-owned subsidiary, Lippert Components, Inc. ("LCI"), supplies, domestically and internationally, a broad array of highly engineered components for the leading original equipment manufacturers ("OEMs") in the recreation and transportation product markets, and the related aftermarkets of those industries, today announced additional actions and support activities in response to the COVID-19 pandemic. In addition, the Company will be establishing an emergency fund for team members in crisis.

“During this unprecedented crisis, the health and safety of our team members remains our top priority. At the same time, we are taking the necessary steps to mitigate the long-term impact of this prolonged macro-economic uncertainty on our business stemming from the COVID-19 pandemic. As a result, we have taken substantial actions in response to this rapidly changing environment, including implementing broad-based reductions in compensation, delaying non-essential capital expenditures, and eliminating discretionary spending. We believe these steps will be critical to maintaining a strong, flexible financial position. Now more than ever, our operational discipline and track record of successfully navigating various economic cycles will prove critical to ensuring we emerge from this crisis a stronger, more nimble company,” said LCI Industries President and CEO Jason Lippert.

“Many of our team members on the front lines are experiencing personal and financial difficulties as our economy has ground to a rapid halt. As a result, we will be establishing a temporary emergency fund to support extreme needs of team members, if needed. In this difficult period, I want to again express my gratitude to all our team members for their extraordinary leadership,” concluded Mr. Lippert.

Business Update

As previously announced, on March 25, 2020, the Company announced the temporary suspension of production at select manufacturing facilities across the U.S. and Europe. In addition, LCI Industries is making the following temporary compensation adjustments:

• President and Chief Executive Officer, Jason Lippert, as well as Ryan Smith, Senior Vice President of Operations, will reduce their base salaries by 25%.
• The executive leadership team, general managers and other executives across the Company will reduce their respective base salaries.
• The LCI Industries Board of Directors will reduce their quarterly retainer by 25%.

The Company will continue to carefully review executive and director compensation, as well as other salaried personnel costs, to identify other potential cost saving opportunities.