LCI Industries (NYSE:LCII) Q2 2020 Earnings Conference Call - Final Transcript
Aug 04, 2020 • 08:30 am ET
Ladies and gentlemen, thank you for standing by, and welcome to the Q2 2020 LCI Industries Earnings Conference Call. [Operator Instructions] And after the speakers' presentation there will be a question-and-answer session. [Operator Instructions]
I'd now like to hand the conference over to Victoria Sivrais. Please go ahead.
Good morning, everyone, and welcome to LCI Industries Second Quarter 2020 Conference Call. I'm joined on the call today by members of LCI's management team, including Jason Lippert, President, CEO and Director; and Brian Hall, Executive Vice President and CFO.
Management will be discussing their results in just a moment. 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 would cause actual results and events to differ materially from those described in the forward-looking statements. These factors are discussed in the company's earnings release and in its Form 10-Q and its 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 the forward-looking statements are made, except as required by law.
With that, I would like to turn the call over to Jason Lippert. Jason?
Jason D. Lippert
Good morning, everyone, and welcome to LCI's Second Quarter 2020 Earnings Call. We delivered better-than-expected results in the second quarter, despite suspended production at the majority of our facilities across the US and Europe due to COVID-19 for the first five weeks of the quarter.
As we resume production in early May, retail demand recovered rapidly, driven by increased demand for RVs and outdoor recreational products as consumers sought safe alternatives to traditional vacations and getaways. This rebound in retail demand allowed us to deliver strong results in the second quarter, including record-high revenue in the months of June and July, as well as a profitable and cash flow-positive quarter.
Revenues for the quarter were down 16% to $526 million, compared to the prior period, driven largely by production shutdowns in the beginning of the quarter. That said, the strong recovery in retail demand in RV in adjacent markets in the latter half of the quarter combined with the exceptional growth in our Aftermarket and international businesses helped to offset this decline. There's a little doubt that RVs and boats have become the 2020 summer go-to vehicles of choice. The long-term fundamentals of the RV and boating industries remain strong and the need for consumers to find safe alternative outdoor activities and vacation options that also allow for social distancing is likely not going away anytime soon.
While a recent report from AAA said 97% of American vacations will consist of a road trip this year, many people are hesitant to staff off at restrooms, hotels and even restaurants