Drew Industries Inc. has reached two new lines of credit totaling $200 million for its Kinro and Lippert Components holdings.
According to an 8-K filing with the Securities and Exchange Commission:
On Nov. 25, 2008, the company entered into an agreement for a $50 million line of credit with JPMorgan Chase Bank, N.A. and Wells Fargo Bank, N.A. The agreement, which was scheduled to expire on Dec. 1, 2011, was amended and extended on Feb. 24, 2011, and now expires on Jan. 1, 2016.
On Nov. 25, 2008, the company entered into a $125 million “shelf-loan” facility with Prudential Investment Management, Inc. and its affiliates. The facility provides for Prudential to consider purchasing, at the company’s request, in one or a series of transactions, Senior Promissory Notes of the company in the aggregate principal amount of up to $125 million, to mature no more than 12 years after the date of original issue of each Senior Promissory Note. Prudential has no obligation to purchase the Senior Promissory Notes. This facility, which was scheduled to expire on Nov. 25, 2011, was amended and extended on Feb. 24, 2011, and now expires on Feb. 24, 2014. In addition, the “shelf-loan” facility was increased to $150 million.
Click here to read the SEC filing.
Shares of Drew Industries Inc. hit a new 52-week high on Tuesday (Feb. 15) in trading on Wall Street. The stock traded as high as $26.51 during mid-day trading and last traded at $25.70. The stock previously closed at $23.15, American Banking News reported.
Shares of Drew Industries traded up 9.76% during mid-day trading on Tuesday. Drew Industries Inc. has a 52-week low of $17.89 and a 52-week high of $28.10. The stock’s 50-day moving average is $23.08 and its 200-day moving average is $21.43.
Earlier in the day, Drew reported improved sales and earnings for the fourth quarter of 2010.
Drew Industries Inc. today (Feb. 15) reported net income for the fourth quarter ended Dec. 31, 2010, of $3.1 million, or 14 cents per share, compared to net income of $2.9 million, or 13 cents per share in the fourth quarter of 2009, according to a news release.
Net sales in the 2010 fourth quarter exceeded $106 million, up 2% compared to 2009 fourth quarter net sales. Industrywide wholesale shipments of travel trailers and fifth-wheel RVs, Drew’s primary RV market, increased 4% in the quarter, while industrywide production of manufactured homes declined 16%. Drew’s RV segment represented 81% of consolidated net sales.
As reported last year, net income for the 2009 fourth quarter was reduced by $1.5 million due to charges incurred largely as a result of unprecedented conditions in the RV and manufactured housing industries in 2009. Results in the 2010 fourth quarter were impacted by higher raw material costs than in the fourth quarter of 2009.
Drew’s net sales in January 2011 reached approximately $51 million, 16% higher than in January 2010. “This was a great start to the new year and builds on our success in 2010,” said Fred Zinn, Drew president and CEO. “Further, recent reports of increased sales at consumer RV shows over the last month, as well as indications that credit availability has been improving, along with higher consumer confidence readings in four of the last five months, are all encouraging signs for Drew and the RV industry.”
“Drew continuously responds to the needs of our customers for new and innovative products,” said Jason Lippert, CEO of Drew’s subsidiaries, Lippert Components and Kinro. “In 2010, we completed four acquisitions, through which we added a wide array of product offerings for our customers. In addition to driving market share gains for existing products, these acquisitions helped us expand our product line of motorhome components and increase our content per towable RV to $2,171, an increase of $158 in 2010.”
“Further, on Jan. 28, 2011, we acquired Home-Style, the leading manufacturer of RV furniture and mattresses in the growing Northwest RV market,” added Lippert. “We expect the acquisition of Home-Style to be immediately accretive to earnings. The acquisition of Home-Style will allow us to quickly capture the leading market share for RV furniture and mattresses in that region, while capitalizing on our experience and purchasing power in that product line. With our talented operating management team, and strong, debt-free balance sheet, we have the capability to continue the steady growth in RV content we have accomplished throughout the past decade.”
“We are also quite pleased that the improvement in the RV industry, which began over a year ago, continued in the fourth quarter of 2010 and apparently in January 2011, as the economy continued to emerge from the recession,” said Zinn. “Industrywide retail sales of travel trailer and fifth-wheel RVs were consistently higher in 2010, increasing an estimated 13% from 2009, including increases of 9% in October and 12% in November, the last month for which this data is available. In December 2010, RV dealers expressed their confidence by boosting purchases in anticipation of strong retail demand in the upcoming spring selling season. While RV dealer purchases and inventory levels may continue to fluctuate, we believe continued strength in retail sales is the key to an ongoing recovery in the RV industry.”
“In 2010 Drew also continued to grow in other markets, most notably after-market products for both RVs and manufactured homes, net sales of which were up nearly 35%, to $29 million,” said Scott Mereness, president of Lippert Components and Kinro. “Our net sales to other industries, largely modular housing and transit buses, increased as well, reaching $21 million in 2010, 44% above 2009 net sales.”
“Drew’s success in 2010 and prior years is in large part attributable to the motivation provided by our pay-for-performance compensation policies,” said Zinn. “These policies encourage our management team to make business decisions which are likely to yield high short-term and long-term returns, at an acceptable level of risk. As a result of these policies and our improved operating results, performance-based incentive compensation represented more than 50% of the total 2010 compensation of our top executives. Further, 30% of the total 2010 compensation of our top executives was equity-based compensation.”
Because of the seasonality of the RV and manufactured housing industries, historically, the company’s operating results in the first and fourth quarters have been the weakest, while the second and third quarters are traditionally stronger. However, because of fluctuations in RV dealer inventories since the fourth quarter of 2009, seasonal industry trends have been different than in prior years.
2010 Full-Year Results
For the full year, Drew’s net income increased to $28.0 million, or $1.26 per share. For 2009 Drew reported a net loss of $24.1 million, or ($1.10) per diluted share. As reported in 2009, excluding a goodwill impairment charge of $29.4 million, net of taxes, or ($1.34) per diluted share, net income for 2009 was $5.2 million, or 24 cents per diluted share. During 2009, the company also incurred expenses totaling $5.5 million, net of taxes, or 25 cents per diluted share, resulting from plant closings and start-ups, staff reductions and relocations, increased bad debts, and obsolete inventory and tooling, largely due to the unprecedented conditions in the RV and manufactured housing industries.
Net sales for the year ended Dec. 31, 2010, reached $573 million, a 44% increase over net sales of $398 million in 2009, as both of the company’s segments achieved greater growth than the industries they serve. Net sales of the company’s RV segment increased 53%, compared to a 44% increase in industrywide wholesale shipments of travel trailers and fifth-wheel RVs. Net sales of the company’s manufactured housing segment increased 12%, compared to a 1% increase in industrywide production of manufactured homes.
“Raw material costs as a percent of net sales has been volatile between quarters for the past two years,” said Joe Giordano, Drew CFO and treasurer. “Volatility in raw material costs has become the norm, and in recent weeks the cost of steel and aluminum has again increased. Over the years, we have been highly successful in implementing sales price adjustments as the costs of raw materials change. Further, our operating management team has proven to be highly effective in improving operating efficiencies in all facets of our business, and we expect to continue making progress in this area as well.”
“Clearly, 2010 marked an impressive rebound for Drew,” said Zinn. “We reported solid sales and earnings growth in both the RV and Manufactured Housing Segments, and we made investments that should help us continue to grow. After investing nearly $30 million for five acquisitions in the last 13 months, and paying a $1.50 per share special dividend aggregating $33 million, we are still debt-free, and have more than $25 million in cash, as well as substantial available borrowing capacity. While we still face challenges, I believe Drew and the two industries we serve are currently well below their long-term potential. If the U.S. economy continues to recover, as recent forecasts suggest, and credit markets continue to improve, we expect to make progress in 2011 towards realizing the long-term potential of our business.”
Drew Industries Inc. today (Jan. 31) reported that its wholly owned subsidiary, Lippert Component Inc., acquired the assets and business of Nampa, Idaho-based Home-Style Industries, and its affiliated companies. The purchase price of $7.25 million was paid from available cash, and Drew expects the acquisition of Home-Style to be immediately accretive to earnings, according to a news release.
Home-Style manufactures a full line of upholstered furniture and mattresses, primarily for towable recreational vehicles, in the Northwest market. Home-Style’s sales for 2010 were approximately $12 million. Lippert Components currently manufactures RV furniture and mattresses in Indiana through its Seating Technology division, which it acquired in July 2008, but does not serve the Northwest RV market, making Home-Style a strong strategic complement to Seating Technology.
“The acquisition of the assets and business of Home-Style represents another successful step in our long-term strategy of increasing our content per RV,” said Fred Zinn, Drew president and CEO. “Our strong balance sheet allowed us to complete this acquisition without incurring debt. With no debt and still more than $25 million in available cash, we have the resources to continue to pursue expansion opportunities that we believe will yield favorable returns on our investment.”
Randy Raptosh and Tony Doramus, the former owners of Home-Style, have agreed to provide assistance with the transition, and Terry Frisk, Home-Style’s, general operations manager, has entered into an employment contract with Lippert Components. Frisk will continue to be responsible for Home-Style’s day-to-day operations.
“Home-Style has an excellent management team, and a great reputation in the RV market,” said Jason Lippert, CEO of Lippert Components. “The expanding Northwest RV market is particularly attractive to us, and acquiring the Home-Style business will allow us to quickly capture the leading market share for furniture and mattresses in that region. Our management team has done an outstanding job of integrating the operations of Seating Technology, while at the same time gaining market share and improving production efficiencies. Our goal is to achieve the same type of success with Home-Style.”
Drew, through its wholly owned subsidiaries, Kinro and Lippert Components, supplies a broad array of components for RVs and manufactured homes, including windows, doors, chassis, chassis parts, bath and shower units, axles, and upholstered furniture. In addition, Drew manufactures slide-out mechanisms and leveling devices for RVs, and trailers primarily for hauling boats. Currently, from 26 factories located throughout the United States, Drew serves most major national manufacturers of RVs and manufactured homes in an efficient and cost-effective manner. Additional information about Drew and its products can be found at www.drewindustries.com.
Drew Industries Inc. today (Jan. 19) announced its Jan. 11Retail Investor Conferences.com presentation is available for on-demand viewing.
Fred Zinn, Drew president and CEO, and Joseph Giordano III, Drew CFO and treasurer, presented to retail investors through the virtual investor conference platform.
To view the archived presentation, click on www.retailinvestorconferences.com.
Drew’s presentation will be available for 90 days or about mid-April. Investors may download shareholder materials from the “virtual trade booth” for the next three weeks.
BetterInvesting (NAIC), PR Newswire and MUNCmedia have announced the agenda of the Jan. 1 RetailInvestorConferences.com, the monthly online investor conference series, according to a news release.
Drew Industries Inc. representatives will present between 1 p.m. and 1:50 p.m. EST.
There is no fee to log in and attend the presentations. Individual investors, institutional investors and analysts are invited.
RetailInvestorConferences.com is a secure, opt-in event environment: pre-registration is suggested to save time: http://bit.ly/hieYRH
“We’re excited about the response we have already received from individual investors,” said Bradley H. Smith, chief marketing officer at MUNCmedia. “To date, almost 5,000 individuals have come to RetailInvestorConferences.com, all generated from our inaugural event. Being a monthly conference series, we anticipate the number of retail investors to compound month after month. Certainly our new prize center will insert a little fun, too.”
The Jan. 11 event also features a live presentation by renowned investment finance expert Michael A. Berry, During the past six years he has been a guest lecturer at the Federal Reserve twice each year and in 2010 he testified to U.S. Congress on natural resource policy, specifically strategic mineral supply-chain development.
Equities research analysts at Zacks Investment Research upgraded shares of Drew Industries Inc. from an “underperform” rating to a “neutral” rating in a research note to clients and investors on Monday (Jan. 3).
Shares of Drew traded up 1.56% during mid-day trading on Wednesday, hitting $22.80. Drew has a 52-week low of $17.89 and a 52-week high of $28.10. The stock’s 50-day moving average is $22.0 and its 200-day moving average is $20.85. On average, analysts predict that Drew will post 31 cents earnings per share next quarter. The company has a market cap of $501 million and a price-to-earnings ratio of 17.93.
Chris Ganshorn is joining the management team of Lippert Components Inc. and Kinro Inc., both subsidiaries of Drew Industries Inc.,as sales manager, the company announced today (Dec. 15).
Lippert and Kinro are focused on an array of RV industry-related new products, including a variety of electronics. Ganshorn, with a degree in electrical engineering from Purdue University and an MBA and years of practical experience as an automotive engineer, “is expected to play a vital role in the development and introduction of innovative products designed to meet the needs of our customers,” the release stated.
“Chris is a great fit with the rest of our management teams. He is very creative, and his skills and experience will enable us to design more new products to bring to the RV industry,” said Jason Lippert, CEO of Lippert Components and Kinro. “It has been our long-standing belief that our outstanding management team is the key to our success, and we are confident that Chris will add significant value to our team and to our companies.”
Goshen, Ind.-based Lippert Components Inc. announced today (Dec. 13) the promotions of the following key executives within its Lippert and Kinro operations:
- Jason Falk – vice president of operations – West Coast Group.
- Marc Grimes – vice president of operations – East Coast RV and MH Chassis Group.
- Todd Driver – vice president of operations – RV Products.
- Andy Murray – vice president of sales – RV Group.
- Matt Hazelbaker – vice president of operations – Seating and Mattress Products.
- Jim Chamberlain – vice president of operations – Kinro.
- Conny Holcombe – vice president of sales – MH Group.
“These executives have been vital to the growth and success of our company for the past decade,” Jason Lippert, CEO of Lippert Components and Kinro, said in a news release. “Because of their experience, dedication and focus, we have achieved consistent profitable growth through new product introductions, acquisitions, market share growth and efficiency improvements. Most importantly, they have each been critical in taking care of our most valuable assets — our customers and our employees at all levels in our organization. Each member of our team is motivated to provide the highest level of customer service, while producing quality and innovative products.”
Lippert and Kinro are subsidiaries of Drew Industries Inc, White Plains, N.Y.
Drew Industries Inc. today (Dec. 1) announced that its board of directors approved a special cash dividend of $1.50 per share of common stock.
The dividend is payable on Dec. 28 to stockholders of record at the close of business on Dec. 20, according to a news release.
“This special dividend reflects the board’s confidence in the financial strength of the Company, as well as the company’s positive long-term outlook,” said Fred Zinn, Drew president and CEO. “Our strong cash balance and consistent cash flow provide us the opportunity and resources to take this tangible step in demonstrating our commitment to returning value to our stockholders.”
Even after this cash dividend, aggregating approximately $33 million, Drew will have more than $30 million of available cash, no debt and substantial unused borrowing capacity. “Our strong balance sheet will enable us to continue our long-term strategy of growth through acquisitions, market share gains, and new product introductions,” added Zinn.
Stockholders of record will receive a 2010 Form 1099 with respect to this dividend by Jan. 31.
Management of Drew Industries Inc. held a conference call on Monday (Nov. 1) following release of its third-quarter financial results. Excerpts of that call, concerning a question on the company’s posture toward acquisitions, follow. To read the entire transcript, courtesy of Seeking Alpha click here or visit www.seekingalpha.com.
Questioner: Liam Burke – Janney Montgomery Scott
In terms of acquisitions I know you made some within you two segments earlier in the year. You have always discussed a third leg or a third business. Without getting into specifics is that still what you are considering in terms of the acquisition front?
Response: Fred Zinn, president and CEO
I think its still possible. Right now, we are looking into series related industries. We have talked about it before whether it’s mid-sized buses we developed seating components for mid-sized buses, windows for mid-size buses. We are looking at other products that could be nice product area for us. Some of our customers, as you know, already make mid-size buses, but utility and cargo travelers require many of the same components that we made for towable RVs (inaudible) in some cases doors or ramp doors and windows. So, it’s really a combination of various products as opposed to looking for some new third leg we are looking at related industries that will give us more market demand.
Following are highlights of the Q3 report by Drew Industries Inc. To read the entire press release, click here.
Drew Industries Inc. today (Nov. 1) reported net income for the third quarter ended Sept. 30, 2010, of $8 million, or 36 cents per share compared to $7.2 million, or 33 cents per share, for the 2009 third quarter.
Results for the 2010 third quarter include an after tax non-cash gain of $600,000 related to a required quarterly adjustment to previously estimated future earn-out payments on acquisitions. Excluding this gain, diluted earnings per share was 33 cents, according to a news release.
Net sales in the third quarter of 2010 reached $147 million, 21% higher than the $122 million of net sales in the third quarter of 2009. This sales increase was largely the result of a 17% increase in industrywide wholesale shipments of travel trailers and fifth-wheel RVs, Drew’s primary market. Drew’s RV Segment represented 83% of Drew’s consolidated net sales in the 2010 third quarter.
In addition, primarily as a result of new products, market share gains, and recent acquisitions, the company’s product content for RVs increased 9% for the 12 months ended Sept. 30, 2010, compared to the year-earlier period. Industrywide production of manufactured homes in the third quarter of 2010 are estimated to have been level with last year.
“As in the second quarter of 2010, operating results this quarter were impacted by fluctuations in raw material costs,” said Fred Zinn, Drew president and CEO. “Raw material costs as a percent of sales were low in the third quarter of 2009, and remained low in the 2009 fourth quarter, affecting comparisons of third, and likely, fourth quarter 2010 operating results to year-earlier periods. Volatility in raw material costs has become the norm, and we’ve learned to respond effectively. Further, over the years our operating management has been highly successful at improving operating efficiencies in all facets of our business, and we expect to continue to make progress in this area.”
“Drew’s long-term success has been based on market share gains and new product development, and we have a great line-up of new products,” said Jason Lippert, CEO of Drew’s subsidiaries, Lippert Components and Kinro. “So far this year, we have announced a series of new patent-pending RV products, including an innovative wall slide-out mechanism, new leveling devices, a new power roof lift for tent campers, and an advanced remote locking system for entry doors. We’ve also acquired an operation with the capability to customize standard chassis for motorhomes, transit buses and specialized commercial trucks. Each of these developments presents exciting opportunities to continue increasing our content per RV, and to explore other markets.”
“Retail sales of travel trailer and fifth-wheel RVs in the United States and Canada have shown solid year-over-year increases each month from March through August 2010, the last month for which this retail data is available,” said Zinn. “During this six-month period, retail sales of these types of RVs increased 13% compared to the same period in 2009. In addition, published data indicates that combined U.S. and Canadian retail sales of travel trailer and fifth-wheel RVs exceeded wholesale production by approximately 11,500 units between April and August 2010, alleviating concerns about dealer inventory levels.
“However, recent dealer surveys, as well as the 8% year-over-year decline in industrywide production of travel trailer and fifth-wheel RVs for September, indicate that RV dealers are cautious about their purchases and inventory levels during this seasonally slower period. Therefore, we believe increases in dealer inventories of the magnitude experienced in the fourth quarter of 2009 are unlikely to recur. Most important for the longer-term, retail demand is the key, especially with lower dealer inventories. Therefore, continuation of the positive trend in retail sales, which we experienced this summer, would spur dealer orders and factory production in 2011.”
“Each quarter we are required to re-evaluate the fair value of the liability for estimated earn-out payments related to recent acquisitions, based upon the projected timing and extent of future sales,” said Joseph Giordano, Drew CFO and treasurer. “Our third quarter re-evaluations resulted in a $1 million reduction in the fair value of such estimated liabilities, because the earn-out payments are projected to be made later than originally expected, which reduces the present value of the liability. This resulted in an after–tax gain of $600,000, or 3 cents per share, this quarter.”
Because of the seasonality of the RV and manufactured housing industries, historically, the company’s operating results in the first and fourth quarters have been the weakest, while the second and third quarters are traditionally stronger. However, because of increases in RV dealer inventories during the fourth quarter of 2009 and the first quarter of 2010, seasonal industry trends have been different than in prior years. Due to the uncertain economic environment, seasonal trends over the next few quarters may continue to be different than historical norms.
Drew’s sales in October 2010 were approximately $40 million, a 2% decline from last October’s sales. In 2009, fourth quarter sales were aided by RV dealer inventory restocking.
“Our continuous focus on profitable growth through increases in our content per RV, as well as production efficiencies has enabled us to outperform the RV market,” said Zinn. “While this repetitive message may not make for good headlines, our consistent long-term results do. Our strong balance sheet, with no debt and $57 million in cash and U.S. Treasury Bills, after investing $22 million for four acquisitions during the first nine months of 2010, puts us in an advantageous position to continue this success by investing in growth opportunities, including acquisitions, in our existing business and similar markets, as well as new capacity and productivity improvements. As always, we will be prudent about how and where we invest, but we are ready to use our resources for appropriate opportunities to further improve our operating results and growth potential.”
RV Segment net sales in the third quarter of 2010 increased 26% compared to the 2009 third quarter. Drew’s sales growth exceeded the 17% increase in industry-wide wholesale production of travel trailers and fifth-wheel RVs, largely due to the company’s market share gains and new product introductions. Content per travel trailer and fifth-wheel RV for the 12 months ended September 2010 reached approximately $2,196, compared to $2,023 for the 12 months ended September 2009, an increase of 9%.
RV Segment operating profit in the third quarter of 2010 increased $900,000 compared to the same period in 2009. This operating profit increase was 4% of the increase in net sales, significantly less than the company’s expected 20% incremental margin, primarily because raw material costs were unusually low in the 2009 third quarter. Raw material costs as a percent of sales were approximately the same in the third quarter of 2010 as they were in the second quarter of 2010.
Drew Industries Inc., a White Plains, N.Y.-based manufacturer of components for the recreational vehicle and manufactured housing industries, will release its third quarter 2010 financial results before the market opens on Monday (Nov. 1).
Drew Industries also will host a conference call at 11 a.m. EST that same day to discuss its results and other business matters. Participation in the question-and-answer session of the call will be limited to institutional investors and analysts.
Analysts expect Drew to report profits in the range of 35 cents per share for the most recent quarter.
According to a release, participating in the conference call will be Leigh Abrams, chairman; Fred Zinn, president and CEO, Drew Industries; Jason Lippert, CEO and chairman, Lippert Components Inc. and Kinro, Inc.; and Joe Giordano, CFO and treasurer, Drew Industries.
Drew, through its subsidiaries, Kinro and Lippert Components, supplies a broad array of components for RVs and manufactured homes, including windows, doors, chassis, chassis parts, bath and shower units, axles and upholstered furniture.
Lippert Components Inc., a subsidiary of Drew Industries Inc., today (Sept. 14) announced the following promotions at its Seating Technology and Michiana Mattress operations in a news release:
- Joel DeVries – director of operations for Seating Technology and Michiana Mattress.
- Ryan Smith – director of sales for Seating Technology.
- Shannon Angle – director of sales for Michiana Mattress.
- Mark Taylor – general manager for Seating Technology.
- Paul Wagner – director of sourcing for Seating Technology and Michiana Mattress.
“These highly skilled and experienced managers, along with their entire team, have done an outstanding job of leading Seating Technology and Michiana Mattress,” said Jason Lippert, CEO of Lippert Components and Kinro. “Each of them has a tremendous passion for making our business the best it can be, by motivating our employees and understanding the needs of our customers. Under their guidance and direction, our furniture and mattress businesses have substantially increased their market shares and overall performance by providing our customers value through top-notch service and great design. At the same time, we’ve maintained very efficient manufacturing operations.”
“Based on our success in growing these businesses in the Indiana region, we’re now planning to expand into the Northwest,” said Scott Mereness, president of Lippert Components. “We are currently exploring locations in the Northwest from which we can efficiently serve the key RV producers in that market.”
“Seating Technology is also increasing its growth opportunities by expanding into an attractive new industry,” added Matt Hazelbaker, national operations manager for Lippert Components. “Over the past few months, Joel DeVries and the Seating Technology management team have devoted a substantial amount of time and energy to developing, testing and marketing a line of seating products for transit buses. As a result of their efforts, we recently received initial orders for these products. The transit bus market presents an excellent opportunity for us, not only for seating products, but also for windows and other components.”
Lippert Components entered into a license for the exclusive right to manufacture and sell the patent-pending RVLOCK, a remotely operated locking system for towable RV entry doors.
“This sleek new battery-operated system integrates the remote features into the door handle and eliminates the need for multiple parts which are currently necessary, reducing warranty exposure. RVLOCK also eliminates the need for hard-wiring to the vehicle’s electrical system,” Jason Lippert, CEO of Lippert Components, stated in a press release.
“We estimate that during 2010 approximately 270,000 towable RV entry doors will be produced by the industry. Each year, more and more remote locking systems are used on RV entry doors,” Lippert said. “In addition, we plan to market entry doors with the RVLOCK to the equestrian and cargo trailer industries. The easy installation, enhanced security, and contemporary styling of the RVLOCK will allow us to continue as the leading manufacturer of RV entry doors. We believe that RVLOCK is the most advanced locking system available and that it will appeal to both RV manufacturers and retail customers. We look forward to continuing to work with the inventors of RVLOCK, who have agreed to make other innovative related products available to us.”
Fred Zinn, president and CEO of Drew Industries Inc., Lippert Components’ parent company, said “The acquisitions of these new products and services continue our history of successfully increasing our RV content per unit, a critical component of our long-term strategy. The initial cost of these transactions aggregated less than $1 million, which was paid from available cash. Future royalties on the RVLOCK will be based on sales.”