LCI Industries Shares Additional Business Updates Related to COVID-19 - Seite 2

LCI has implemented further cost saving measures, and is evaluating additional actions, including:

• Rightsizing workforce to match current demand levels.
• Delaying certain capital expenses and reducing or eliminating non-critical business expenses.
• Temporary hiring freezes in all locations and furloughs for non-critical team members.
• Postponing merit increases for salaried employees until the end of the fiscal year.
• Continually engaging with our strategic banking partners regarding appropriate options relative to future financial liquidity.

“Despite incredibly strong headwinds we are facing globally, long-term, we remain encouraged by the secular trends driving a positive outlook for the RV industry, which remains popular among younger demographics who seek innovative, technologically advanced products. Further, given our new normal, which will include significantly less air travel and hotel stays in the intermediate term, combined with the need for social distancing for the foreseeable future, RVs provide a wonderful opportunity for people to continue to enjoy vacation and leisure activities,” continued Mr. Lippert. “While we have paused on some of our inorganic opportunities that will advance our diversification strategy, we are continuing to prudently invest in technology that will allow LCI to further extend its leadership position in the markets we serve.”

Financial Strength and Flexibility

LCI Industries maintains a strong financial position supported by ample liquidity, with a current net debt position of approximately $700 million, net of approximately $100 million of cash available on its balance sheet and borrowing availability of over $190 million at March 31, 2020.

The Company has no significant debt maturities until 2022, and as of the most recent quarter end, the Company was well within its loan covenant which requires a leverage ratio (net debt to proforma TTM EBITDA) under 3.0.

Community Support

LCI Industries is dedicated to participating in overall relief efforts across over 90 facilities. The Company is donating personal protective equipment and other supplies throughout our local communities, in addition to manufacturing roughly 56,000 medical face shields used by doctors and nurses in Italy.

In accordance with LCI’s Social Impact philosophy, the Company will also be establishing a temporary emergency fund to aid those team members who have faced personal and financial difficulties due to the COVID-19 health crisis. LCI will also continue to encourage and support employee-initiated volunteer efforts.